Professional Documents
Culture Documents
Bangladesh Economics
Bangladesh Economics
Contents
Particular Page no.
9. Foreign Aid………………………………………………………………………………………………………………………………………………………………………………………….…83
CHAPTER-ONE:
INTRODUCTION
2. Dependence on agriculture:
Bangladesh largely depends upon the agriculture and 61% people here live, directly or indirectly, on
the agriculture.
3. Lack of industrialization:
Bangladesh is not enriched well with natural resources but she has a large number of populations
which can be used to produce more goods with a cheaper investment.
4. Lack of capital:
Every Bangladeshi has a credit from birth so it is clear that Bangladesh has not enough capital to
invest into some sectors.
5. Lack of Education:
The literacy rate is the education rate and the educated people in Bangladesh are rare actually. So
the huge lack of education facilities, school, college and universities education does not expanded into
its own shape.
To sum up, it may be said that the country has some vital characteristics of its own economy.
These features of the country prevails the country as a developing country.
---------------------------------------------------------------------------------------------
3. Backwardness in industry:
The main reason behind the backwardness of the country is the country is in the backward position in
connection with industry. Without huge industrialisation there is no possibility of be industrially
developed. Lack of raw materials, capital deficiency, lack of technological knowledge and the
defective industrial establishment building system are the major obstacles behind the backwardness
of industry.
5. Unemployment problem:
Bangladesh has huge population of about 14.42 crore (2009) but most of them about 4.95 crore are
employed. They have no educational qualification, technological knowledge and working experience.
So the country has the large portion of people who are unemployed.
6. Money inflation:
Inflation is an on-going crisis for the country. There are some reasons behind the problem that are the
improper planning, defective budgeting system, lower mentality of businessman, hoarding of goods,
federation of businessman and the like. These barriers hamper the economic development of
Bangladesh.
To sum up, it may be said that the country has limited resources but it has huge population if the
population can be improved a labour market and taking initiatives for sustainable improvement.
---------------------------------------------------------------------------------------------
Chapter-TWO:
Economic Development
“Economic development refers to the process whereby the people of a country or a region
come to utilize the resources available to bring about sustained increase in per capita production of
goods and services.”
– Williams and Batrick
“Economic development is a process whereby an economy’s real national income increases
over a long period of time.” –Meier and Baldwin
So, economic development is a long term process whereby it is assumed that economic
development refers to that sustained increase in per capita national income, standard of living, high
rate of education, better average income opportunity and so on.
---------------------------------------------------------------------------------------------
“Economic growth means more output, while economic development implies both more output and
changes in the technical and institutional arrangements by which it is produced and distributed.
– Kindleberger
In fine, we can say that economic growth is an upward movement of an economy for short period of
time, say one or two years, whereby it is assumed that the economy is growing and sometimes there
may have an interval which is not seen in the economic development.
---------------------------------------------------------------------------------------------
Question-3: Define under developed country
Answer:
Basically there is no single internationally recognized definition of underdeveloped
country/economy and the level of underdevelopment may vary widely within underdeveloped
countries with some underdeveloped countries.
“Underdeveloped countries are those which, compared with the developed countries, are
under-equipped with capital in relation to their population and natural resources.”
- R. Nurkse
Developed country is that one which has sustainable improvement in the form of standard of living,
education rate and all its citizens get to enjoy a free and healthy life in a safe environment.
The term developed country is used to describe countries that have a high level of development
according to some criteria.
In fine it may be said that a developed country is that one which serve the population a standard of
living which has a standard education rate, and which country’s population has a high rate of per
capita national income.
--------------------------------------------------------------------------------------------
6. Adequate employment:
Unemployment problem is not acute in a developed country than that of in an underdeveloped or
developing country as well. The rate of unemployment is less acute in a developed country. Here, there
is employment opportunity for the unemployed person. Unemployment rate in Japan, Iceland,
Canada, Greece, Italy, Brunei, France, Germany other developed countries is really less.
7. Rapid industrialization:
Industrial development means transformation of pre-industrial society into an industrial society of
large-scale energy and metallurgy production. It is an extensive organization of an economy for the
purpose of manufacturing. Industrialization is one of the important characteristics. If a country is rich
with industry, it must be a developed country. In the country, a large income comes from the industrial
sector of the country.
8. Available capital:
Developed countries have a perfect use of total capital, that is, a developed country use income in a
year. There is no insufficiency of capital formation in a developed country. In a developed county,
national income and per capita national income is high and savings is generally high and therefore
investment is also high. So, this process of capital formation helps develop a country.
9. Wide-spread education:
In a developed country, high rate of education is a basic feature. More than 90% people here are
educated,
a result, the skilled manpower produces more production within the limited time and energy as well as
efforts.
Answer:
There is no country which is static in its developing process. All countries try to enhance their own
position so all are developing country the term underdeveloped country is obscure here. By analysing
the economic structure of different underdeveloped and developing countries, we get some features of
developing and underdeveloped countries. These are given below:
2. Dependence on agriculture:
Underdeveloped and developing countries are largely dependent on agriculture. This is the major
feature of the underdeveloped countries. More than 70% or 90% people depend upon the
agriculture.
7. Lack of industrialization:
Rapid industrialization is another major feature of an underdeveloped or developing country. Lack of
capital, lack of education, lack of technological knowledge, and lack of skilled entrepreneur are the
major problems behind the rapid industrialization.
8. Lack of capital:
Lack of capital is the feature of the underdeveloped and developing countries. In a developed country
20% or more of total capital or GNI is used to invest but on the other hand in an underdeveloped or
developing country 5% to 10% of total capital or GNI is used to invest.
9. Lack of Education:
Underdeveloped or developing countries’ another characteristic is that these countries are poor in
educational sector. The majority of the population are here uneducated than that of the developed
countries.
absent in the underdeveloped and developing countries. So lack of skilled manpower in these
countries is another feature.
In brief, we can say that the above features are of an underdeveloped or developing country. If
these features are present in any country the country may be called as underdeveloped or developing
country.
---------------------------------------------------------------------------------------------
CHAPTER-THREE:
INDUSTRIALIZATION IN BANGLADESH
Industrialization is essential for the rapid economic development of Bangladesh. Mainly Bangladesh
is an agricultural based country. But it is not possible to develop the economy only by agriculture. So,
industrialization is essential for the rapid economic development of Bangladesh.
is always uncertain. But to produce the industrial goods these type of uncertainty is not there. So, to
solve the economy of Bangladesh from the uncertainty and instability industrialization is mostly
needed.
08. Reducing dependency on agriculture: At present the economy of Bangladesh is basically
depending on agriculture (32 present of national production). So reducing more dependency on
agriculture it is possible to develop the industrialization.
09. Earning Foreign Currency: It is possible to export more goods in foreign country by
industrialization. So rapid industrialization is essential to acquire the stability of foreign trade and
more foreign currency.
11. Development of Transportation and Communication: It is also possible to develop the transportation
and communication system by rapid industrialization.
13. Reducing the Pressure of Population on Agriculture: When more industry will set up in our
country then the people will get the employee there. As a result the population pressure depending on
agriculture will be reduced.
14. Reducing Dependency of Foreign Country: By industrialization we can increase our production.
Through this way we can fulfil our local demand and also can export. As a result the dependency on
foreign country will be reduced.
15. Development Defence Power: Every independent country should have strong defence power to
save their sovereignty. So they need a lot of ammunition that can be produced in an industry. So, to
develop the defence power of our country industrialization is mostly needed.
So finally from the above discussion it has been cleared to us that industrialization is very much
essential for a country especially for the developing country like Bangladesh that can play a
significant role to increase the economic growth of Bangladesh.
---------------------------------------------------------------------------------------------
source of raw materials and the market of manufactured goods. This colonial principal of British
government is definitely responsible for this backwardness.
02. Pakistani Exploitation: One of the most causes of industrial backwardness of Bangladesh is the
negligence and exploitation principle of the former government of Pakistan. The governing body of
that time exploited this area like the British. They industrialized the former West Pakistan, which
money came from East Pakistan. As a result Bangladesh remains undeveloped in industry,
03. Lack of Capital: A lot of investment is essential for the industrialization. But in Bangladesh the
rate of investment is low for the poverty of the population. The total country’s investment is only 7.5 of
GDP in internal country investment. The entrepreneurs cannot collect necessary capital of industry for
the shortage of underdevelopment of Bangladesh industry.
04. Inadequate Mineral Wealth: Mineral wealth is very necessary for industrialization. But
Bangladesh is not fulfilled with mineral wealth. The development of industrialization of Bangladesh is
disturbed for the shortage of iron, coal, petroleum and other various valuable mineral wealth.
05. Insufficient Power Wealth: The power wealth is very necessary for directing factory, industry etc.
But there are many shortage of power wealth in Bangladesh. It is not sufficient for our need which we
found only from iron and oil in Bangladesh. But there is a probability of producing power from water,
but for the bureaucracy it is not been possible
.
06. Lack of Experienced Labour: Most of the labour of Bangladesh is illiterate, superstitious and their
productivity is also low. The industrialization of Bangladesh is disturbing for the shortage of educated
and experienced labour.
07. Lack of Technical Knowledge: It is necessary to have technological knowledge for the
industrialization of the country. But there is so much shortage of technological knowledge in our
country. There is not such opportunity of mechanical knowledge and training in our education system.
Shortage of mechanical knowledge of the labourers cannot maintain machineries properly.
08. Lack of skilled entrepreneur: There was predominance of the Hindu businessmen in area at the
time of British period. The Bengalis are deprived from the opportunity to set up factories in the British
ruled period. For this, there are shortages of experienced entrepreneurs to take risk to set up factories
in Bangladesh at present.
09. Shortage of Capital Goods: For industrialization mechanical and chemical instrument is essential.
But in Bangladesh this products are not produced sufficiently. So industrialization is not rapid in
Bangladesh.
10. Weak Socio-economic Infrastructure: The reason of weak Bangladesh economic structure is socio-
economic infrastructure. Transportation and communication system, making dam etc. are called Socio-
economic infrastructure. For long time colonial ruling these developments is not done properly. For
this, industrialization is done in a rapid way in Bangladesh.
11. Shortage of Foreign Currency: A lot of foreign money is needed to import machineries, tools, raw
materials of industries from foreign country. But in Bangladesh there is so shortage of foreign money.
The industrialization of Bangladesh is obstructed for the shortage of foreign money.
12. Tendency to Export Raw Materials: One of the important causes of industrial backwardness of
Bangladesh is to export a lot of raw materials. There is a lot of demand in foreign country which grows
in Bangladesh such as jute, leather etc. For this reason the businessmen of our country export these raw
materials in foreign country expecting a lot of profit.
13. Inefficient Management: The industrial development of any country mostly depends on proper
management and great direction. But there are various limitations of management to handle in our
country.
14. Inadequate Transportation and Communication System: For industrialization in our country great
transportation and communication is necessary. But in Bangladesh the transportation and
communication system is very inadequate. For the lack of development of this system it is obstructed to
collected raw materials, to transfer produced product to other location.
15. Lack of Proper Planning: For quick industrialization in any country proper planning is necessary.
In Pakistan period there is not existed any good planning of industrialization for Bangladesh industry.
16. Narrowness of Market: The industrial sector of our country mainly produced for local market. The
market of industrial product is small and for low income earner of the country. Since two decades the
increasing rate of GDP was 4% only. And increasing rate of agriculture was 2.7%. Narrowness of
market is one of the main problems for the backwardness of industrialization in Bangladesh.
17. Corruption: In Bangladesh corruption is the most severe problem for the development of industrial
sector. For corruption, industrialization is terribly obstructed.
18. Lack of political stability: In Bangladesh there is bad political practices is remaining. For this,
industrialization of Bangladesh is terribly obstructed.
The obstacles of industrialization of Bangladesh are described above. So a quick overcome is
expected from these problems by taking exact initiatives.
---------------------------------------------------------------------------------------------
02. Encouragement of the Private Sector: By researching about industrial sector of Bangladesh and
East Asian countries it is found that, only private sector is efficient and dynamic. Where public sector
losses day by day, private sector acquires strong place under international competition market in the
field of garments industry and others. The reason of the success of private sector is that, they invest a lot
in line with the competition and their management system is very efficient. For the development of
industrialization maximum support should be provided to the private sector.
03. Capital Formation: For rapid industrialization a lot of capital has to be formed. To form capital it is
needed to encourage the public. By accumulating capital by developing many financial institution
capital may be formed.
04. Sufficient Credit Supply: Sufficient capital has to supply for rapid industrialization. Sufficient
credit has to supply to industries in minimum interest by establishing more commercial bank and
industrial bank.
05. Increase of Power Supply: We have to invent the power resources such as coal, petroleum, natural
gas etc. by surveying hugely in the country. It has to be ensured the development of power supply for
rapid industrialization. Coal, iron, and petroleum these precious mineral resources are very much
essential for power. For these reason we have to research and survey geographically to invent these
resources. If power supply is ensured properly, the industrialization will be increased.
06. Development of Mineral Resources: For the rapid industrial development, it is important to
develop the mineral resources. For industrialization coal, petroleum etc. is needed. For this, survey
should be done in a proper way.
07. Supply of Skilled Labour: We have to increase the labour’s skill for industrialization. The
illiteracy and ignorance of the worker has to remove by establishing school, college, university and
training centre etc.
08. Increase of Technical Knowledge: For developing industrial sector, it is important to expand
technical knowledge. For the objective of increasing technical knowledge, more technical schools,
agriculture colleges, polytechnic institutes have to establish.
09. Import Capital Goods: For rapid development of industrial sector, priority has to give in
importing capital goods.
11. Increase Acquiring of Foreign Currency: Effective effort has to give to increase acquiring foreign
currency. By increasing export, acquiring foreign currency, it is necessary to import raw materials and
machinery. As a result development of industry will be accelerated.
12. Creating Foreign Market: We have to do huge publicity in abroad to create foreign market of
Bangladeshi industrial goods.
13. Making Effective Industrial Policy: Sound and specific industrial policy has to make for
industrialization. In the past industrialization was interrupted by the lacking of proper industrial
policy. The mobility of industrialization will be fast if we ensure the sound industrial policy such as
mutual role of govt. and non govt. sector, determine priority for setting various industry, giving
advantage of home and foreign investor sector etc.
14. Establishing Heavy Industry: We have to give more concern establishing heavy industry than
establishing consumer goods production industry. For this we have to set up more still industry,
electronics industry etc.
15. Development of Direction System: Direction system has to develop for industrialization. We have
to employment efficient and honest people in lieu of inefficient and dishonest people in the industries.
Then the production will be increased of these industries.
16. Making Sound Plan: Sound plan has to make for rapid industrialization in the country. We have to
create proper environment by making sound investment policy and its demonstration for
industrialization. If the above systems are taken, industrialization will be rapid in Bangladesh and
contribution to GDP of industry sector will be increased.
---------------------------------------------------------------------------------------------
01. Termination of Exploitation: In former Pakistani age the capitalists were exploited our people
over the 20 years as the name of industrialization. To terminate this exploitation nationalization
decision was taken.
02. Proper Distribution of Wealth: To distribute the wealth properly among the overall people this
decision was taken.
03. Sound Management: By nationalization of industry govt. will become the owner of these
industries. So for it will be very easy to make proper policy and sound management on behalf of govt.
As a result the production will be increased.
04. Termination of Industrial Dispute: By the result of nationalization of industry worker’s torture will
be banned. The bad relation between worker and owner will be improving.
05. Rapid Economic Development: By the result of nationalization production will not be run for
increasing personal profit. Govt. will maintain the production management properly. As a result the
economic development of the country will be rapid.
07. Introducing Socialistic Economy: Industrialization is essential for fee exploitation society. To rapid
economic development of the country by the limited resources and to ensure the proper distribution of
wealth it is essential to introduce socialism economy. Nationalization of industry is the primary step for
introducing socialism economy.
So the decision of nationalization of industries was taken to demonstrate the above issue and to
ensure the financial freedom of each people of the country.
---------------------------------------------------------------------------------------------
02. Lack of Experience and Honesty of Administrator: Which types of administrator are employed
there to maintain the nationalized industry they are not so experienced in this way. Besides people
have a lot of suspicious about their duties and honesty.
03. Lack of Deliberate Policy: There is also lack of deliberate policy to nationalization of industry in
Bangladesh. The nationalization policy should be done when the production condition come back
general condition.
04. Conflict Management Infrastructure: After the nationalization a management infrastructure was
set up to maintain the industries that take the problem deeper have nationalized industries.
05. Lack of Mutual Believe: Another main problem of nationalized industries are lack of mutual
believe at the various level of employed employee in an industry.
06. Corruption and Nepotism: After the nationalization of industry there increased corruption and
nepotism. Beyond the current rules and regulation there has given various advantage like
employment, promotion etc. In many case the tendency of embezzlement of govt. fund also increased.
As a result the success of nationalized industries was hampered.
07. Labour Dissatisfaction: When the labour’s portion was not ensuring in nationalized industry than
the labour dissatisfaction was seen among the labour. As a result the relation between labour and
management become weak and production also decreased.
08. Lack of Co-ordination: Another main problem is the lack of co-ordination among the various
departments of nationalized industry. For this reason the production become decreased.
09. Lack of Specific Target: Another problem of nationalized industries is the lack of specific target.
After becoming independent various industries was nationalized but no specific target was decided
for these industry. As regard the production was hampered in these industries.
10. Increasing Production Cost: Production cost increased recklessly in nationalized industry for lack
of necessary tools and materials. The power of industries and firms is not used fully. Moreover
production cost has been increased for not following the principle of reduced cost in directing
industrial organization. As a result majority of nationalized industry has been turned as a non-
profitable organization.
11. Lack of Socialistic Outlook: In Bangladesh, the main problem of state based industry is lack of
socialistic outlook. To direct an organization socialistic outlook is very important. But various workers
and labours who are working in these organization, has not got the socialistic mentality. For lacking of
socialistic outlook they became corrupted and dishonest. For these reasons lots of chaos is seen here
after independence. As a result production is decreased in this sector.
12. Lack of Sincere Effort: At last, there not such sincere effort was seen to maintain the nationalized
industries as commercially with skill govt. announced the nationalization decision to demonstrate this
work properly which type of sincere and discipline is need that was not seen in the governance body.
For these problems after the nationalization nationalized industries faced the gradual loss and fail to
contribute to the national economy properly after the nationalization.
---------------------------------------------------------------------------------------------
To solve the problem and to develop the profit level of nationalized industries the measures should be
taken are given below at a glance:
1. Management development
2. Removing Administrative Conflict
3. Making Rapid Decision
4. Removing Corruption and Nepotism
5. Increasing Training Facilities
6. Ensuring Partnership and Representation of labors
7. Proper Implementation of Principles
8. Increase of Supply of Raw Materials and Machinery
9. Determine of Specific Goal
10. Co-ordination
11. Reducing Production Cost
12. Sincerity
02. Removing Administrative Conflict: We have to change the managerial body in such a way so that
the present conflict to decision making is removed in case of production. For this we have to build-up
two-level management in lieu of existing three-level management.
03. Making Rapid Decision: To solve the problems of nationalized industries we have to take rapid
decision and to remove the procrastination of various unit levels in case of demonstration.
04. Removing Corruption and Nepotism: We have to remove the corruption and nepotism to
maintain the nationalized industries. If we remove the corruption, nepotism and embezzlement of fund
the nationalized industries success will be ensured.
05. Increasing Training Facilities: We also have to increase the training facilities of nationalized
industry’s labour. If we do that the skill and productivity will increase.
06. Ensuring Partnership and Representation of labours: Employment of labours has to ensure and for
the encouragement of labours, sometimes award has to give to the labours for the performance they
have done. Without that, for making decision in the unit stage every worker and labor has to be
included opportunity given by governance.
07. Proper Implementation of Principles: For various matters like appointment of labors, transfer,
promotion, leave etc. Proper implementation of principles has to be ensured.
08. Increase of Supply of Raw Materials and Machinery: Full goods use of the power of production
has to ensure by ensuring the regular supply of important machinery and raw materials of state based
industries.
09. Determine of Specific Goal: We have to take the effective system to determine the sound
investment policy and specific goal for nationalized industries and to achieve these.
10. Co-ordination: Co-ordination has to done in all work at various levels of nationalized industries. It
has to create the mutual trust and believe among the existence labour and employee of nationalized
industries and has to give adjusted effort for policymaking and realization.
11. Reducing Production Cost: As far as possible cost minimization policy has to take to maintain the
industries and factories these should be directed as commercially.
12. Sincerity: At last, we have to create the honest and patriotic ‘Management Cadre’ to direct the
nationalized industries. They have responsible to survive these organizations from any situation by any
cost.
If we demonstrate the above condition very carefully and sincerely, the problems of nationalized
industries will remove and these industries will play a vital role to the development of our economy.
---------------------------------------------------------------------------------------------
Question-8: Discuss the role of small and cottage industries in the economy of Bangladesh.
Answer:
Small and cottage industries are the small-scale industry. But in Bangladesh small and cottage
industries have a glorious part. It is a part and parcel of our tradition. Though the value on price of
small and cottage industries are few it can create more employment opportunity. Handloom industry,
bamboo and cane industry, leather industry, birhi industry, silk industry and hand spring industry and
these types of industry. The role of small & cottage industries are given below at a glance:
01. Helpful Profession of Farmer: In our country small and cottage industry is a helpful profession of
farmer. This type of industry is very easy to handle by the uneducated farmer. So they get extra income
from this profession and its source of income is very help to increase their standard of living.
02. Create Employment of Women: There are mostly fifty percent women in our country. Among
them most women does not get enough opportunity to engage any job sector. But small and cottage
industry creates enough employment of women in our country.
03. Reduction Population Pressure on Agriculture: Our country is densely populated country. Over
population is the problem in our country. Agriculture is the main profession of population. So,
population mainly depends on agriculture. In the field of agriculture small and cottage industry
reduce the pressure of population.
04. Solve Unemployment Problem: Unemployment problem is a big problem in our country now- a-
days. Small and cottage industry plays an important role to solve unemployment problem mostly.
05. Utilization of Countries Raw materials: We have a lot of raw materials and natural resources that
is suitable to use in cottage industry in Bangladesh. It is very easy to set up a cottage industry with
these raw materials. By this way we can use our raw materials and natural resources properly.
06. Proper Development: The role of small and cottage industries are very important to proper
economic development. Basically the large-scale industries are established in the major areas and
special places so that we cannot achieve the proper development. But the small and cottage industries
can establish in all area so that proper development can achieve easily from it.
07. Proper Distribution of Wealth: Small and cottage industries has played a vital role to proper
distribution of national assets. Asset is centralized to the minority capitalist’s hand by the causes of
large-scale industries. As a result wealth discrimination is seen in our society. On the other hand,
another name of cottage industry is village industry because the general people of village involve to
this profession. So for the wealth is distributed properly.
08. Savings of Foreign Currency: There is a lack of foreign currency in Bangladesh. To establish the
large-scale industries we have to import a lot of machinery from aboard. For this we have to expand a
lot of foreign currency. But it is not needed to import machinery to establish small and cottage
industry. As a result we can save a huge amount of foreign currency.
09. To Safe from Unhygienic Environment of Large Scale Industries: Generally the large-scale
industries are established in the special area so for the many people come here to do job there. As a
result that area is become like a slum. Besides, these industries also use various chemicals so that their
environment is become unhygienic. But this type of disadvantage is not in small industries. So to save
the environment it is essential to set up small industries.
10. Proper Utilization of Generated Products of Large Scale Industries: In many times by products are
used in small industries of large-scale industries. A lot of raw materials are become unused in case of
large production of large industries. Under this circumstance only small industries can use this by
products properly.
11. Cottage Industries are not Easily Destroyed: Cottage industries are not centralized in a special
area. It is spread sporadically in all over the country. So by the causes of any natural disaster it is not
easy to destroy the whole cottage industry.
12. Production According to Personal Test and Demand: Small and cottage industries can produce
their product according to consumer test and demand. But in large-scale industries it is not possible. So
cottage industries are essential to produce the product according to consumer information.
13. Preservation of National Tradition and Fine Arts: Cottage industry helps us to preserve our
national tradition and fine arts. There is our national tradition. So to preserve our national tradition
and fine arts small and cottage industries are essential.
For the above reasons the importance of small and cottage industries are essential. Small and
cottage industries can play a great role to develop and mobilize our economy specially the rural
economy.
---------------------------------------------------------------------------------------------
01. The Ancient Method of Production: Still small and cottage industry follows the ancient method of
production. As a result more production cannot be increased easily. So it is one of the most important
problem of small and cottage industry.
02. Lack of Capital: Capital is the blood of setting up any industry. But small and cottage industry
needs more capital to set up it widely.
03. Lack of Loan: Small and cottage industry is called poverty line industry. In this industry general
people are involved to set up it. But lack of enough loan it cannot be set up easily.
04. Lack of Education: Education is an important key of headway. But lack of education small and
cottage industry do not run rapidly.
05. Lack of Raw materials: To set up small and cottage industries and continue its production raw
material is needed. But lack of raw material it does not possible to increase production of this industry.
06. Lack of Power Resources: Though there are many sources of power resources in our country but it
does not utilize effectively. In this case small and cottage industry needs more power resources such as
gas, electricity, water etc. But lack of these resources small and cottage industry is hampered mostly.
07. Limited market: The produced goods of small and cottage industry do not get actual market. The
market of this produced products are limited. For this reason small and cottage industry continue their
production.
08. Inequality competition of big industry: It is one of the major problems of small and cottage
industry. Because the big industries influence on the small and cottage industries widely. As a result
small industries cannot survive in the inequality competition.
09. Low standard of product: Sometimes small and cottage industry produces low standard of
product. As a result these products rejected by the actual market customer.
10. Lock of Grading and standardization: It is another problem of small and cottage industry. To
increase selling of products grading and standardization is essential. But lack of attractive grading
and standardization small and cottage industry is disturbed day by day.
12. Lack of government support: The lack of government support is another problem of small and
cottage industry. The government does not help for the improvement of small and cottage industry.
But no industry can be set up without help of government.
In fine, we can say that small and cottage industry is a symbol of our custom. But the problems
related to it should be removed for betterment of it.
--------------------------------------------------------------------------------------------
02. Increase Capital Supply: By increasing capital supply in small and cottage industry, lack of
capital problem can be solved.
03. Development of Education System: Education is the backbone of a nation. So to solve the problem
of small and cottage industry development of education must be needed.
04. Grading and Standardization: To solve the product selling problem of small and cottage industry
grading and standardization must be needed. Because grading and standardization increases the
attraction of products.
05. Increment of Government Support: The enhancement of setting up small and cottage industry
mainly depend on government support. So to solve the problem of small and cottage industry, the
increment of government help must be needed.
06. Widespread Advertisement: The produced products of small and collage industry can possible to
introduce to other country by widespread advertisement. So to solve products selling problem more
advertisement is essential.
08. Ensure Raw-material Supply: For the increment of production raw material is needed. To solve
the production problem, the raw material must be ensured to increase supply.
09. Development of Selling System: For the solving of selling system of produced products of small
and cottage industry, selling system of this industry should be developed rapidly.
10. Ensure of Skilled and Trained Labor: For the increment of production skilled and trained labor of
small and cottage industry should be ensured properly.
11. Increase Loan: To set up small and cottage industry enough loan should be ensured properly.
In fine we can say that small and cottage industry is our symbol of national custom.
---------------------------------------------------------------------------------------------
CHAPTER-FOUR:
AGRICULTURAL IN BANGLADESH
02. Low Productivity: Low productivity is another feature of agriculture of Bangladesh. Each acre
production amount of rice in Japan is 58 pound, in USA 47 pound. But in Bangladesh only 15 pound
rice is produced in each acre. In spite of being an agriculture dependent country, production of
agriculture is very low in Bangladesh.
03. Sub-division & Fragmentation of Holding: For inheritance law and pressure of population, land
of Bangladesh is divided into different areas. As a result, cultivation of these lands is not possible in a
scientific way.
04. Dependency on Nature: The agriculture of Bangladesh mostly depends on nature because of
insufficient irrigation system. If it is not rained in monsoon period, people can’t produce crops
properly. Besides, every year agriculture is hampered by over rainfall, floods, storms etc.
05. Subsistence of Farming: Most of the farmers in Bangladesh produces agricultural product for
family needs. But other countries do agricultural task for business purpose. In Bangladesh, after
fulfilling family needs, the farmer sales the additional products. But this is very low in amount.
06. Landless Farmers: Most of the farmers in Bangladesh are landless. They cultivate others land. The
numbers of landless farmers are increasing day by day. Now 60% farmers are landless of total
numbers of farmers.
07. Uncultivable Land: Most of the lands in Bangladesh are uncultivable because of improper water
system. Now, many acres are uncultivable land in Bangladesh.
08. Unskilled Farmer: In Bangladesh, most farmers are uneducated as well as unskilled. There is no
progressive system for training of farmers. As a result they are remaining unskilled. And unskilled
farmers can’t produce product properly.
09. Water Logging & Salinity: Water logging & salinity is another characteristic of agriculture in
Bangladesh. There are many lands Bangladesh which are combined with water logging as well as
salinity. These lands are uncultivable which cause low productivity.
10. Uneducated Farmer: A large number of farmers in Bangladesh are underdeveloped. The
uneducated farmers do not know the proper usage of fertilizer, insecticides, proper seeds etc. For this,
the production is very low.
11. Lack of Capital: Bangladesh is a poor country and most people live under poverty line. As a result,
farmers can’t invest huge amount of capital for the development of production and agriculture. They
also cannot use modern technology for want of capital.
12. Insufficient Agricultural Credit: Though Bangladesh is an agricultural country, the farmers can’t
take loan easily from bank because of poverty. If they take loan, they have to pay high interest rate. As
a result, they are uninspired to do agricultural task.
13. Insecticides & Diseases: Huge amount of crops are being damaged for the attacks of insects and
diseases. According to specialists, 10% of crops are being damaged for insects and disease.
14. Soil Erosion: Soil erosion is one of the characteristics of agriculture of Bangladesh. Soil erosion is
caused due to cutting of excess trees as well as, natural calamities which cause low productivity.
15. Low Productivity: Bangladesh is an developing country. The people can’t invest in a large amount.
So for the small amount of production the productivity is very low.
At last we can say that, these are the characteristics of agriculture in the economy of Bangladesh.
---------------------------------------------------------------------------------------------
02. Main Occupation of People: The main occupation of Bangladeshi people is agriculture. In
Bangladesh 51.69% of total people are engaged in agriculture. Agriculture creates more
employment opportunities. So agriculture is very important.
03. Supply of Food: Food is essential for living. Agriculture provides most of these foods such as rice,
wheat, pulse, potato, maize, vegetables, fruits etc. So agriculture is very important.
04. Supply of Raw Materials: Most of the industries are dependent on agriculture for their raw
materials. Agriculture is the main source of raw materials of our jute, tea, sugar, cloth, tobacco, match,
paper etc. industries.
05. Supply of Cloth: Most of the raw materials of cloth are collected from agriculture. The raw
materials of cotton, ressom, possum, beyond etc. are come from agriculture.
06. Supply of Building Materials & Fuels: Agriculture supplies us various building materials and
fuels such as bamboo, wood, straw, cane, leaves of small tree etc. Thus agriculture fulfils our fuel
demand.
07. Earning of Foreign Capital: Foreign trade of Bangladesh is largely dependent agriculture. Jute,
tea, tobacco, shrimp, leather etc. are the main exporting product of Bangladesh by which foreign
currency is earned.
08. Creation of Market for Industrial Product: With the development of agriculture, the income and
Purchasing power of farmers will increase. As their income increase, their demand for industrial goods
will also increase. As a result, the market of industrial products is expanded.
09. Expansion of Trade & Commerce: Agriculture plays a vital role to expand trade and commerce. If
the production capacity of a country increases, the internal trade and commerce will expand. So
agriculture helps to expand trade and commerce.
10. Increase of Govt. Revenue or Income: The large source of Govt. income is agriculture. Rent of land,
revenue from transporting goods by rail or post etc. are sources of Govt. income.
11. Industrialization: Industries of Bangladesh are agriculture based. Maximum raw materials of
industries come from agriculture. So, agriculture of Bangladesh has a great importance for
industrialization.
Finally, we can say that, these are the main importance of agriculture in the economy of
Bangladesh.
---------------------------------------------------------------------------------------------
02. Low Productivity: Low productivity is another problem of agriculture of Bangladesh. Each acre
production amount of rice in Japan 58 pound, in USA 47 pound. But in Bangladesh only 15 pound
rice is produced in each acre. In spite of being an agriculture dependent country, production n of
agriculture is very low in Bangladesh.
03. Sub-division & Fragmentation of Holding: For inheritance law and pressure of population, land
of Bangladesh is divided into different areas. As a result, cultivation of these lands is not possible in a
scientific way.
Sub-division of land
04. Uncultivable Land: Most of the lands in Bangladesh are uncultivable because of improper water
system. Now, many acres are uncultivable land in Bangladesh.
05. Illiterate & Poor Cultivator: Most of the farmers are poor and illiterate. As a result, they can’t use
modern technology, fertilizer, machinery etc. For this, the overall production is low.
06. Lack of Capital: Bangladesh is a poor country and most people live under poverty line. As a
result, farmers can’t invest huge amount of capital for the development of production and agriculture.
They also cannot use modern technology for want of capital.
07. Landless Farmers: Most of the farmers in Bangladesh are landless. They cultivate others land. The
numbers of landless farmers are increasing day by day. Now 60% farmers are landless of total
numbers of farmers.
08. Subsistence of Firming: Most of the farmer in Bangladesh produces agricultural product for family
needs. But other countries do agricultural task for business purpose. In Bangladesh, after fulfilling
family needs, the farmer sales the additional products. But this is very low in amount.
09. Disguised Unemployment: Disguised unemployment is another problem of Bangladesh
agriculture. The pressure of population in agriculture sector is so much because of less opportunity in
other sectors. As a result, there exists disguised unemployment in Bangladesh
10. Dependency on Nature: The agriculture of Bangladesh mostly depends on nature because of
insufficient irrigation system. If it is not rained in monsoon period, people can’t produce crops
properly. Besides, every year agriculture is hampered by over rainfall, floods, storms etc.
11. Insufficient Agricultural Credit: Though Bangladesh is an agricultural country, the farmers can’t
take loan easily from bank because of poverty. If they take loan, they have to pay high interest rate. As
a result, they are uninspired to do agricultural task.
12. Soil Erosion: Soil erosion is one of the characteristics of agriculture of Bangladesh. Soil erosion is
caused due to cutting of excess trees as well as, natural calamities which cause low productivity.
13. Water Logging & Salinity: Water logging & salinity is another characteristic of agriculture in
Bangladesh. There are many lands Bangladesh which are combined with water logging as well as
salinity. These lands are uncultivable which cause low productivity.
14. Unskilled Farmer: In Bangladesh, most farmers are uneducated as well as unskilled. There is no
progressive system for training of farmers. As a result they are remaining unskilled. And unskilled
farmers can’t produce product properly.
15. Pest & Diseases: Huge amount of crops are being damaged for the attacks of insects and diseases.
According to specialists, 10% of crops are being damaged for insects and disease.
16. Lack of Govt. Facility: Being a poor country, the Govt. of Bangladesh cannot give much facility in
agriculture. As a result, farmers are uninspired for production.
Finally, we can say that these are the problems of agriculture in Bangladesh
---------------------------------------------------------------------------------------------
03. Development of Irrigation System: We have to reduce the dependency on nature. As a measure,
we can dig deep cannel water pumps etc.
04. Education & Training of Farmers: Most of the farmers in Bangladesh are uneducated and they
don’t know how to cultivate the land by modern method. We should give proper training and
implement agricultural education among farmers.
05. Increase of Loan Facility: To remove capital deficit of farmer, the financial institutions should
provide loan to farmers at easy terms. Besides, by establishing krishi bank, cooperative bank, the Govt.
can give the farmers loan at easy terms.
06. Supply of seeds & fertilizer: To solve the agricultural problems, our Govt. should supply hybrid
seeds and fertilizer at cheap price to the farmers. The farmers can develop more by knowing more
about seeds and fertilizer.
07. Supply of Insecticides: In our country about 10% crops are damaged by insects. So the farmers
should protect crops from insects. For this, insecticides should be supplied among farmers at cheap
price.
08. Flood Control: To solve the flood problem, our Govt. should take steps. The Govt. should dressier
the river and build protective dam to protect crops from cyclone.
09. Remove of Salinity & Water Logging: The water logged land may be cultivated by extracting
water. We should make dam for which salinity water cannot come in the cultivable area.
10. Land Reform: To solve agricultural problems, land should be reformed. We have to give surety
that the actual farmer can get the owner’s land from the land lords.
11. Cooperative Firming: The farmers should cultivate their lands through cooperative firming. By this
way, it is possible to implement scientific method of firming.
12. Development of Marketing System: The markets of agricultural product should be developed so
that the farmers get the fair price from their commodity. For this, cooperative sales market may be
formed.
13. Fair of Agricultural Product: For the help of agriculture, sometimes exhibition system may be
arranged. By this way the farmers are inspired.
At last it is said that these are the solution of agricultural problems in Bangladesh.
---------------------------------------------------------------------------------------------
Answer
There exists some causes of sub-divisions and fragmentation of holding in Bangladesh. The reasons
which are responsible for sub-division and fragmentation of holding are given below at a glance:
02. Pressure of Population: Another cause of sub-division and fragmentation is increasing pressure of
population. People of Bangladesh are increasing rapidly. But lands are constant. The increasing
people depend on agriculture. As a result, the land are sub-divided and fragmented for the pressure of
population.
03. Spirit of Individualism: Spirit of individualism is another cause of sub-division and
fragmentation of holding. In future, people live in extended family. But now people come to live single
family. As a result, lands are divided into small parts.
04. Poverty: Most of the people of our country are poor. So at the time of their financial crisis they sell
their lands. As a result, lands are sub-divided and fragmented of holding.
Finally we can say that these are the cause of sub-division and fragmentation of holding.
---------------------------------------------------------------------------------------------
1. Modernization of Land
2. Wastage of Land For Boundary
3. Wastage of Time
4. Problems of Proper Cultivation
5. Problems of Irrigation
6. Problems of Supervision
7. Creation of social problems
02. Wastage of Land for Boundary: Large parts of land are wasted for subdivision and fragmentation
of holding.
03. Wastage of Time: Much time are wasted for sub-division and fragmentation of holding. Because
lands are not in same place. For this, farmers have to go one land to another land. As a result much time
are wasted.
04. Problems of Proper Cultivation: For sub-division and fragmentation of holding, it is not possible to
cultivate the land properly. As a result, the production is very low.
05. Problems of Irrigation: For sub-division and fragmentation of holding, lands are cultivated
different places. So it is not possible to accomplish proper irrigation. As a result, productivity of lands
is going down.
06. Problems of Supervision: It is hard to supervise lands due to sub-division and fragmentation; lands
are divided into different places. Much time is also needed to supervise these lands.
07. Creation of Social Problems: Sub-division and fragmentation of holding create social problems
such as quarrelling between two farmers for the boundary of land. As a result, money and time are
wasted.
At last we can say that, if the sub-division and fragmentation is controlled, much land will be
saved. And will be very useful in the future for the agricultural of Bangladesh.
---------------------------------------------------------------------------------------------
01. Voluntary Exchange of Land: The farmers can accumulate their land willingly through mutual
exchange. If the farmer exchanges land, farmers of our country are not interested to exchange their
land with others. For this the success of this type of effort is very less.
02. Accumulation of Land: Sub-division and fragmentation of land can be reduced by accumulating
land through law. If the farmers do not agree to accumulate their own land, the govt. should compel
them to accumulate land by making law. The law was made in 1950 to accumulate land.
03. Modification of Law of Inheritance: The inheritance law is mostly responsible for sub-division and
fragmentation of holding. The inheritance law is to be corrected for remedy of sub-division and
fragmentation of land. So the inheritance law should be corrected in such way so that person who is not
farmer, cannot be the owner of land.
04. Co-operative Farming: The problem of sub-division and fragmentation of land can be solved by
introducing co-operative farm method. Small farm can be accumulated through formation of co-
operative farm among farmers. It is needed to take initiative all over the country for creation of co-
operative farm. For this the govt. of Bangladesh is giving special emphasis towards co-operative farm.
05. Population Control: If population can be controlled in proper way then it is possible to prevent the
sub-division and fragmentation of holding. Because if population growth rate becomes slower then it
will be possible to prevent sub-division and fragmentation of holding. But it is a lengthy process. But
population control is an effective way to control it.
06. Industrialization: Industrialization is one of the solution for sub-division and fragmentation of
holding. Because if the employment is created in industrial sector then pressure will overcome from
the agriculture sector.
At last we can say that if following steps are done properly then it is possible to remove the
problem of sub-division and fragmentation of holding.
---------------------------------------------------------------------------------------------
02. Nature of Land: Nature of land is the main obstacle on the modernization and mechanization of
agriculture of our country. The land of our country is very soft and muddy. So it is not possible to use
tractor, power tiller and other larger machinery in the land. For this reason nature of land is mainly
liable for barrier to modernization and mechanization of agriculture.
03. Small Size of Land: The inevitable problem of modernization and mechanization of agriculture of
our country is small size of agricultural land. The size of agricultural land should be wig for cultivation
by the help of modern machinery like tractor or bulldozer. But the use of modern machinery is possible
for small agriculture land.
04. Poverty of Farmers: Sufficient capital is needed for mechanization of agriculture. But most of the
farmers of our country are very poor. They cannot supply this huge capital. As result it is not possible to
purchase agricultural machinery like tractor, power tiller, pumping machine and so on.
05. Lack of Capital and Foreign Currency: Capital is the key of development. Nothing is possible
without necessary capital. Huge capital is required for modernization of agriculture. But the poor
farmers cannot purchase the necessary agricultural machinery on account of lack of capital. Lack of
capital is mainly liable for problem of mechanization and modernization of agriculture.
06. Lack of Alternative Employment: One of the principal problems of modernization and
mechanization of agriculture of our country is lack of alternative employment. Many people are
engaged in agriculture. If machine cultivation method is applied, many people will be unemployed.
So lack of a alternative employment is chiefly responsible for barrier to mechanization and
modernization of agriculture.
07. Lack of Technological Knowledge: Most farmers of our country are uneducated and ignorant.
Technological knowledge is needed for handling agricultural machinery. But there is lack of
technological knowledge of farmers of our country. Mechanization and modernization of agriculture is
hampering because of want of technological knowledge.
08. Illiteracy and Conservativeness Attitudes of Farmers: One of the outstanding problems of
modernization of agriculture of our country is illiteracy and conservativeness of farmers. Most of the
farmers of our country are generally uneducated. They mostly cultivated the land in the traditional
method. Besides they are not interested to use modern machinery of agriculture.
09. Problems of Maintenance of Machineries: The regular repair and preservation are required for
cultivation by the help of agricultural machinery. But accurate measures are not taken for repairing
and preserving agricultural machinery in our country. As a result modernization of agriculture is
hampering on account of problem of repairing agricultural machinery.
10. Lack of Exact Technology: The main problem of mechanization and modernization of agriculture
of our country is the lack of exact technology. Bangladesh is not developed in science and technology.
Every imported machinery from foreign country is not usable in our country. Again, for the lack of
proper technology, exact technological machinery what is suitable for Bangladesh has not been
invented. For that reason expected mechanization is not done.
11. Small Size of Economic Holding: One of the main problems of our country is the small size of
economic holding. For cultivating with tractor and bulldozer a big economic holding is needed. But for
being small size of economic holding it is not possible to use modern machineries.
At last we can say that, for the above mentioned problems rapid modernization and
mechanization of agriculture of our country is hampered.
---------------------------------------------------------------------------------------------
02. Cultivation in Dry Season: In dry season in our country it is very easy to use the agricultural
machineries. Because, by this time the soil remains soft and dry.
03. Cultivation of Marsh and Swamp Area: There are a lot of marsh and swamp area which are
remain unproductive all the year. With the help of power tiller these lands can be used easily.
04. Production of IRRI and Borro Paddy: For the cultivation of IRRI and Borro paddy it is necessary to
give irrigation. And for this purpose power tiller is needed, by using this it would be very easy to
cultivate.
05. Large Scale Co-operative Farm: At present most of the farmers of our country are eager to
introduce large scale co-operative farm forgetting release from the problem of small agricultural land.
Co-operative agricultural farm system has inaugurated in various regions of our country. So mechanic
agricultural method must be applied for creating large scale co-operative farm.
After the above discussion we may come to the conclusion that there are bright prospect of
mechanization of agriculture of our country. If the above mentioned means are followed exactly, it will
be possible to do modernization of agriculture for our country.
---------------------------------------------------------------------------------------------
CHAPTER-FIVE:
FOREIGN TRADE IN BANGLADESH
Answer:
Bangladesh is a developing country economy totally based on agricultural. Generally, foreign trade
means, trade relation between two or more countries. Actually foreign trade is related with export and
import.
Foreign trade of Bangladesh means export and import trade of Bangladesh. The foreign trade
of Bangladesh is not self-sufficient because here import in more than export. Every financial year
Bangladesh imports a lot of goods but exports a few goods.
a) Export of Bangladesh goods to other countries. As like readymade garments leather etc.
b) Import of the other countries goods/goods to Bangladesh such as-Raw materials of the industrial
machinery etc.
---------------------------------------------------------------------------------------------
Answer:
Bangladesh is a developing country. Though our economy is based on agriculture but foreign
trade a significant role for the development of our country. Given below important of foreign trade.
At last, we can say that, foreign trade is very important for our developing country. By foreign
trade we can learn about our country of the word. So, it is very important.
---------------------------------------------------------------------------------------------
Answer
Bangladesh is a developing country. Though our economy in based on agriculture but foreign
trade play a significant role for the development of our economy. Given below importance of foreign
trade:-
k) Export of manpower:
Answer:
Like any other country, Bangladesh is a undeveloped country. Bangladesh has many mainly
import goods. Bangladesh has done goods of export. The features of export trade are discussed in the
below:
h) Export of manpower:
Export of manpower is another feature of Bangladesh export trade. Bangladesh earns many
foreign currency. B exporting efficient and non-efficient ma power to many countries every year.
At least we can say, all of the above points are important feature of export trade of Bangladesh.
Export trade is increasing day by day in compare to past.
---------------------------------------------------------------------------------------------
Like any other underdeveloped countries Bangladesh faces many problems in export trade. The
problems of export trade of Bangladesh are given below:
g) Trade syndicate:
The trade syndicate among the westerns develop countries in the problem of export trade of
Bangladesh. They demand or high tax on our export goods. So, Bangladesh faces a great problems.
At least we can say that, we cannot develop our export trade. So, we have to find out our
problems and take necessary measures to solve those problems.
---------------------------------------------------------------------------------------------
To increase our exports we have to take following measures. They are discussed below:
a) More production:
At first we have to increase our production to increase or export. By the side of jute, tea, lather,
paper, agricultural goods, use have to increase our industrial goods to export. By increasing more
production we can increase our export.
g) Standardization of product:
Standardization of product is an important measure for increasing export. If we classified our
export product and maintain standard of product then the value of those product will be increased in
market.
At last we can say from the above discussion by taking those measures we can increase the
export of Bangladesh and can earn many foreign currency.
---------------------------------------------------------------------------------------------
Answer:
The main problem of foreign trade of Bangladesh is unfavourable balance of payment.
Bangladesh has to import many products than import product every year. For this, unfavourable
balance of payment in created. The causes of unfavourable balance of payment of Bangladesh are
given below:
Bangladesh has to pay loan with high interest to the another countries every year. So, it is one
of the causes of unfavourable balance of payment.
From the above discussion we can say, those are the cause of unfavourable balance of
payment. Our government has to those causes.
---------------------------------------------------------------------------------------------
Answer:
To remove unfavourable balance of payment, the distance between the export cost and
import is reduced. To remove unfavourable balance of payment the following measures shall be taken.
They are discussed below:
a) Increase of production:
At first we have to increase our production to remove unfavourable balance of payment.
Production of the exportable goods will be increased.
b) Increase of export:
Increase of production and decrease of internal demand we can export our many product in
abroad. So, increase of export is another measure to remove the unfavourable balance of payment.
e) Reduction of import:
It is another important measure to remove this problem. It can reduce import than we can
overcome this unfavourable balance of payment.
At last from the above discussion, we can say that, if we take this measure then we can reduce
the unfavourable balance of payment.
---------------------------------------------------------------------------------------------
Answer:
When one country takes help or loan for the economic development from abroad in called
foreign aid. Developing countries take loan or help from the developed countries for economic
development. This help is called the foreign aid.
For the development of developing countries external resources must be collected. These
resources are two types
a) private capital flows
b) official development assistance (ODA)
In private capital flows, private debt flows means the debt bond and another private bond,
which are given by commercial bank, private non-debt flows a means foreign direct investment and
the portfolio investment of have debenture. There is no charitable element in private capital flows; ti is
not called foreign aid.
Foreign aid means grants and loans, which in given by foreign govt. or agency to a developing
country for development and welfare with charitable condition so, for the foreign aid and official
development assistance. There must be two characteristics. Such as
a) The main purpose of the transaction in the development and welfare of receiving country.
b) Being charitable characteristics, it must be minimum 25% govt. granted elements.
So, one country take or loan for economic development from abroad in called the foreign aid.
a) Project Aid:
Generally developed countries give prefect aid to developing countries are able to realize
their special project. As a result, developed machines, part of machine, materials etc are given to
developing country for prefect development.
c) Technical assistance:
Sometimes developed countries give technical assistance to developed countries. Developed
countries provide skilled machine, essential machines and tools for increasing technical knowledge
and research. This kinds of aid are known as technical assistance.
c) Commodity aid:
An outstanding part of foreign aid in given by product for fulfilling the demand of essential
commodities of aid taken country, crops, materials of industry, machine etc are given, This kinds of aid
are known as commodity aid.
d) Taka aid:
USA, Canda, Japan etc countries sometimes give foreign aid. Developing countries sell this
food in their own country and spent this money in various project work. This kind of aid in known as
taka aid.
Above the discursion, they are the kinds of foreign aid. Foreign aids are essential for
developing country. So Bangladesh needs foreign aid also.
---------------------------------------------------------------------------------------------
Answer:
b) Development of Industry:
Adequate machine raw materials and other expensive things are very required in rapid
industrialization of Bangladesh. Most of this products are imported from foreign. For this we need
sufficient foreign currency. But, we have a great lack of capital. So, we have to take foreign aid for
collecting essential machines and raw materials.
c) Development in agriculture:
The economy of Bangladesh in mainly dependent on agriculture. For modernization of
agricultural system and development, purchase of agricultural tools, well seeds, purchase of fertilizers,
pump etc. are very essential. It in possible to collect required elements of agriculture through foreign
aid.
Above the discussion, we can say that, foreign aid are essential for developing country. So,
Bangladesh needs foreign aid also. Bangladesh cannot improve without foreign aid.
---------------------------------------------------------------------------------------------
Answer:
For economic development foreign aid is very much essential. But it has many disadvantages.
The disadvantages of foreign aid are given below:
g) Dependence on others:
Foreign aid helps on country to depend on others for that, one country cannot be self-
sufficient. It is one of the disadvantages of foreign aid.
h) Bad effects of political activities:
Sometimes the political activities of a country are hampered by foreign aid. The donor country
activities her interest. So, the political activities of a doner country are hampered. So, bad effects of
political activities is another disadvantages of foreign aid.
Finally we can say; “Trade not aid” should establish in our mind. Foreign trade had many
disadvantages. We should always conscious about foreign aid.
---------------------------------------------------------------------------------------------
Answer:
For the development of our country the importance of foreign aid can not be described in
word. But too much measures to reduce dependence on foreign aid. The measure to reduce
dependence on foreign aid are given below:
d)Expansion of export:
By increasing export we can earn foreign currency and then the dependence on foreign aid
can be reduced. So, increasing export is a last way to reduced dependence on foreign aid.
Form the above discussion we can say that all of them are essential for reduce dependence on
foreign aid.
---------------------------------------------------------------------------------------------
CHAPTER-SIX:
BANKING SYSTEM IN BANGLADESH
The members are the man selected by the government amongst the government, deputy
governor and the directors. The main office of Bangladesh bank is located in Dhaka Motizil and there
is a branch office in Khulna, Rajshahi, Bagura Shylet, Rangpur, and Barisal. For the smooth
functioning of the bank there are severed section of the bank such as banking sector, accounting
sector, control of banking sector, established sector, experiment sector, communication and publication
ssector etc.
---------------------------------------------------------------------------------------------
Answer:
Bangladesh bank is the central bank of Bangladesh. It has several important functions which
are giver below:-
a)Issuing Note:
The main function of Bangladesh bank is issuing note in the country. Bangladesh bank follows
the minimum reserve system for issuing note policy. It issues the note in the market according to proper
demand.
d) Credit control:
One of the main function of Bangladesh bank is credit control. By giving more credit create
money defilation. So, Bangladesh bank control the credit through bank tare policy, open market
policy. Reserve rate variation etc.
h) Other functions:
In spite of the above function, Bangladesh bank has some other function such as economic
research work, collection and supply of data, preparation data and report and publication, training of
the bankers and creation of economic planning etc.
Above the discussion, we can say that, there are the activities or functions of the Bangladesh
bank.
---------------------------------------------------------------------------------------------
As a developing country like Bangladesh, Bangladesh play a vital role. In spite of its general
works Bangladesh bank do some extra activities. Development of banking system, planning and
exciting, agricultural and industrial development are described below:-
b) Issue loan:
The main barrier of economic development of Bangladesh is lack of capital. The loan system is
not sufficient in commercial bank and other loan issuing organization Bangladesh bank provides
capital to the commercial bank and other loan issuing organization.
d) Employment
Through the order of establish new banks and branch offices of existing band, Bangladesh
Bank creates employment opportunity.
f)Development Planning:
Bangladesh Bank helps the government and other planners to develop the country by
technical, physical, mental, practiced, training Bangladesh Bank play very important role in the
sector.
Above the discussion, we can say that, the role of Bangladesh Bank in economic development
in very important. Bangladesh Bank play’s vital role for economic development.
---------------------------------------------------------------------------------------------
Answer:
Commercial Bank of Bangladesh was under non-govt owned before of independence. It the
time of Pakistan, maximum owner of commercial bank was Pakistan. Two commercial bank was under
the owner of Banglai names estern mercantile bank and eastern Banking Corporation. 15 commercial
bank was in Bangladesh before independence. The total Branches of commercial bank was 1094.
Among the bank, 10 west Pakistani bank with 929 branches and 3 foreign bank with 14 branches was
active Bangladesh. The Head office was in Dhaka of due 2 Bank. The total branches was 151 of that
two bank and their total capital was 70 core taka.
The govt. of Bangladesh nationalized the post commercial bank for making socialistic country
after independence. The govt. established six stated commercial bank 1977 on 26 march. The mane of
the bank established renewed. The name of the bank are Sonali bank, Janota bank, Agrani bank,
Rupali bank and uttora bank. Now, 4 bank are under the govt. owned names, sonali bank, jonota
bank, Rupali and Agrani bank. Besides the two bank are under the non-govt owned name- pubali
bank and uttora bank. Besides this bank, many non-govt owned bank has established names National
bank, the city bank, the IFIC bank, Islamic bank, Estern bank, Dhaka bank etc.
---------------------------------------------------------------------------------------------
Answer:
The main functions of the commercial bank are described in the below:-
a) Talking deposit:
The main function of the commercial bank is to take extra money of people as a deposit. There
are three types of taking deposit. Such as-
1) Current deposit
2) Saving deposit
3) Permanently deposit
c) Giving credit:
The commercial bank gives loan for trade, industry etc. This bank gives loan as accurate
capital for short time not the long time.
e) To help in Business:
The another main function of commercial bank is to help in business by giving information as
well as by issuing bank draft, travel cheque, hundi etc.
g)Another function:
There are some another functions of the commercial bank. They are-
1) Deposit valuable things.
2) Selling and buying of share in favour of owner.
3) Giving insurance premium.
4) Collect hundi infavour of owner etc.
Above the discussion, we can say that the commercial bank perform.
The above important activity.
---------------------------------------------------------------------------------------------
Answer:
Commercial bank play a vital role in economic development of Bangladesh. The role of
commercial bank is described in the below:-
a) Capital formation:
Capital is the essential element for economic development. Commercial bank takes deposit
through giving interest on this loan. As a result, commercial bank plays a vital role in capital
formations.
Above the discussion in this way, Commercial bank plays an important role for economic
development.
---------------------------------------------------------------------------------------------