Bangladesh

introduction
Bangladesh, country of South Asia, located in the delta of the Padma (Ganges [Ganga]) and Jamuna
(Brahmaputra) rivers in the northeastern part of the Indian subcontinent.
The riverine country of Bangladesh (“Land of the Bengals”) is one of the most densely populated
countries in the world, and its people are predominantly Muslim. As the eastern portion of the historical
region of Bengal, the area once formed, along with what is now the Indian state of West Bengal, the
province of Bengal in British India. With the partition of India in 1947, it became the Pakistani province
of East Bengal (later renamed East Pakistan), one of five provinces of Pakistan, separated from the
other four by 1,100 miles (1,800 km) of Indian territory. In 1971 it became the independent country of
Bangladesh, with its capital at Dhaka.
Foreign relations of Bangladesh
The foreign relations share the Bangladeshi government's policies in its external relations with the
international community. The country pursues a moderate foreign policy that places heavy reliance on
multinational diplomacy, especially at the United Nations and World Trade Organization (WTO). Since
independence in 1971, the country has stressed its principle of "Friendship towards all, malice towards
none" in dictating its diplomacy. As a member of the Non-Aligned Movement, Bangladesh has tended
to not take sides with major powers. Since the end of the Cold War, the country has pursued better
relations with regional neighbours.
The Bangladesh government has begun to implement a foreign policy that pursues regional economic
integration in South Asia and aims to establish Bangladesh as a regional hub of transit trade in Asia.
Afghanistan–Bangladesh relations
Afghanistan–Bangladesh relations refer to the bilateral relations
between Bangladesh and Afghanistan. Both countries are members of the South Asian Association for
Regional Cooperation and the Organization of Islamic Cooperation. Bangladesh has been actively
participating in the rebuilding process of Afghanistan, which was also praised by the Afghan
President Hamid Karzai.[16] Bangladesh has also offered to train Afghan civil servants, police personnel
and diplomats and to create a skilled workforce. Bangladesh is also interested in providing technical and
vocational training in the fields of banking, disaster management, primary and mass education, health
care, agricultural etc.[17] There are about 170 Bangladeshi non-profits working in Afghanistan.[18]
Several Bangladesh-based NGOs are working for the socio-economic development of Afghanistan.
Bangladesh based BRAC has been operating in Afghanistan since 2002. As of 2012, it had 173 offices
across the country, serving 29.8 million people.[19]
On 5th July 2022, The Government of the People's Republic of Bangladesh sent humanitarian aid in the
wake of the 2022 Afganistan earthquake
Afghanistan has sought Bangladesh's assistance on enhancing its education system.[20] In 2009, a 12-
member delegation from Afghan universities visited Dhaka to gain experience on higher education
system.[21] As of 2011, 35 Afghan students, were studying in Bangladeshi universities.
[22]
 Afghanistan has an embassy in Dhaka while Bangladesh does not have an embassy in Kabul.[23]
Bangladesh–India relations
Bangladesh–India relations, (Bengali: বাংলাদেশ-ভারত সম্পর্ক ; Hindi: बांग्लादेश-भारत संबंध) also referred to
as Bangladeshi-Indian relations or Indo-Bangladeshi relations, are the bilateral relations between
the People’s Republic of Bangladesh and the Republic of India, both of which are South
Asian neighbours. Diplomatic relations between the two countries formally began in 1971 with India's
recognition of an independent Bangladesh (which was formerly known as East Pakistan). In September
2011, the two countries signed a major accord on border demarcation to end the 4-decade old disputes
over boundaries. This came to be known as the Tin Bigha corridor. India also granted 24-hour access to
Bangladeshi citizens in the Tin Bigha Corridor. The agreement included exchange of adversely held
enclaves, involving 51,000 people spread over 111 Indian enclaves in Bangladesh and 51 Bangladeshi
enclaves in India.
During Sheikh Hasina's four-day visit to New Delhi in April 2017, Bangladesh and India signed two
defence agreements, the first such agreements between India and any of its neighbors. Under the
agreements, the militaries of the two countries will conduct joint exercises and training. India will help
Bangladesh set up manufacturing and service centres for defence platforms that both countries possess
with the aim of achieving self-sufficiency in defence manufacturing in Bangladesh, and will also provide
the Bangladesh military with expert training, and technical and logistic support. India also extended its
first ever defense-related line of credit to a neighboring country, by providing Bangladesh with $500
million to purchase defense equipment.[46
Bangladesh–Pakistan relations
Pakistan and Bangladesh are both South Asian Muslim-majority countries.[1][2] Following the end of the
British Empire, the two countries formed a single state for 24 years.[3] The Bangladesh Liberation
War in 1971 resulted in the secession of East Pakistan as the People's Republic of Bangladesh. Pakistan
(formerly West Pakistan) recognized Bangladesh in 1974 after pressure from across the world.[4]
The two countries are both founding members of SAARC, as well as members of the Developing 8
Countries, the OIC and the Commonwealth of Nations. Both are classified as Next Eleven emerging
economies. Bangladesh has a High Commission in Islamabad and Deputy High Commission in
Karachi. Pakistan has a High Commission in Dhaka.
Bilateral trade between the two countries has been growing slowly over the past years. During the
eleven-year period between 2000–01 and 2010–11, Pakistan export to Bangladesh grew at an average
annual rate of 27.6 percent and imports from Bangladesh grew at the rate of 9.2 percent. The total value
of trade (export plus import) between the two countries in 2010-11 was about $983 million. To give a
boost to bilateral trade between Pakistan and Bangladesh both countries have decided to finalize a
bilateral Free Trade Agreement. FTA will pave the way for opening trade opportunity and will help
expansion of trade between the two countries.[41]
Major Pakistani exports to Bangladesh include cotton, machinery, oil, plastics and mechanical
appliances.[42][43] Major Bangladeshi exports to Pakistan include textiles, agricultural products, leather
footwear and other leather products.[42]
Bangladesh–China relations
Bangladesh–China relations are the bilateral relations of Bangladesh and China. Bangladesh has an
embassy in Beijing and consulates in Hong Kong and Kunming. China has an embassy in Dhaka. Both
countries are members of the BCIM Forum (Bangladesh-China-India-Myanmar Forum for Regional
Cooperation). According to Chinese government designations, Bangladesh and China are in a "strategic
partnership of cooperation".[1]
In May 2022, China helped Bangladesh become the first country in South Asia to achieve 100%
electricity coverage with the opening of a mega power plant at Para in Patuakhali.[22] Prime
Minister Sheikh Hasina expressed gratitude to the Chinese president and prime minister for their
assistance in the construction of the Para power plant.[23]
As a part of a strengthened bilateral trade and investment relationship, China has given Duty-Free (DF)
access to 97 percent of Bangladeshi products which came into force from 1 July 2020. According to the
notice of the Tariff Commission of the State Council of China on 16 June 2020, zero-tariff has been
applied to 8,256 products originating from Bangladesh among the total 8,549 products recognized in the
Chinese tariff-line.[24] Utilizing this Duty Free (DF) facility, Bangladesh can seize greater market share as
this DF Facility covers Bangladesh-originating 132 knitwear items and 117 woven items at HS Code- 8
Digit Level, at which segment of items, Bangladesh is already highly competitive exporting to China.
[25]
 Bangladesh-China bilateral trade is highly tilted in favor of Beijing,[26][27][28] and Bangladesh's bilateral
trade deficit with China has increased 1600% in last 20 years (c. 2019).[26] 25% of Bangladesh's total
imports are from China, in 2018-19 China's export to Bangladesh was US$13.6 billion whereas
Bangladesh's export to China was only $0.56 billion.[26] China has given several loans to Bangladesh,
which compared to India [with which Bangladesh shares land border on 3 sides] are on less favorable
terms, and could lead Bangladesh into debt-trap.[29] China has also offered to construct nuclear power
plants in Bangladesh to help meet the country's growing energy needs, while also seeking to aid the
development of Bangladesh's natural gas resources.[30] [31] China's mainly imports raw materials from
Bangladesh like leather, cotton textiles, fish, etc. China's major exports to Bangladesh include textiles,
machinery and electronic products, cement, fertilizer, tire, raw silk, maize, etc.[32]
Bangladesh–Japan relations
Bangladesh–Japan relations , Japanese:  were established on 10 February 1972. By 2015, the bilateral
annual trade of these two countries was US$2.3 billion.
The relation between Bangladesh and Japan which was in trouble during the British period and Partition
of Bengal 1947 got regular in mid-1950 when the Consular Mission of Japan (CMJ) in Dhaka started to
make contact with people-to-people.[5]
Bangladesh and Japan have historically been strong bonded nations. The relationship
between Bengali and Japanese people is centuries old.
Bangladeshi-Japanese relations were established in February 1972.] Japan is Bangladesh's 11th-largest
export market; imports from Bangladesh make up 26% of all Japanese imports from the least developed
countries, second only to those from Cambodia. Common imports from Bangladesh to Japan include
leather goods, ready-made garments, and seafood. By 2004, Japan had become Bangladesh's fourth-
largest source of foreign direct investment, behind the United States, United Kingdom, and Malaysia.
Japan's political goals in its relationship with Bangladesh include gaining support for their bid to
join the United Nations Security Council, and securing markets for their finished goods. Japan is a
significant source of development aid to Bangladesh.
objective of foreign policy of Bangladesh
As like other countries, Bangladesh Foreign policy also has some major objectives. Aims and objectives
of the Bangladesh foreign policy are to foster public interest, to protect national security, to make sure
development, to confirm national dignity and to keep countries ideology alive. 
To ensure the public interest is the basic reason for a foreign policy. Ensuring public interest one of the
major objectives of Bangladesh foreign policy. Policymakers made to serve the purpose of the state and
that is the highest priority. 

Bangladesh foreign policy is made to ensure national security both internally and externally. Internal
dimension can be understood from political and economic stability of the environment. It denotes
stability of the domestic sphere of Bangladesh. On the contrary, external security means preservation of
freedom from the external opponent 

One of the major agenda of Bangladesh foreign policy is to ensure national development. To encourage
foreign direct investment and effective use of the Bangladeshi Diaspora can be an example. Besides
collection of grant and aid for national development get priority in foreign policy. 

Another aim of foreign policy of Bangladesh is to dignify the country in the international arena by
participating in many international events like UN peacekeeping mission. 
Bangladesh's diplomatic relationship is used in different area likely to facilitate RMG sector, to support
Bangladeshi worker in foreign countries, to promote trade and commerce, to develop close
relationships with neighboring countries and to combat terrorism.
Bangladesh foreign policy behavior
Self-preservation:
self-preservation is the most vital interest of Bangladesh. A state self-preservation refers to the maintain
of its sovereignty political independence and territorial integrity. It is inexorably linked with the
protection of national security.
Bangladesh foreign policy dimension
Bangladesh was selected to provide the next chairman of NAM at the summit scheduled
for Dhaka 2001, however it was later decided to host the summit at an alternative venue. As a member
of the Non-aligned Movement Bangladesh never took any position in line with big powers. However it
parted from its principle by voting against North Korea at the United Nations in December 2008, under
pressure from Japan.
Bangladesh have established official diplomatic relations with most of the members of United Nations as
well as some non-UN members like Palestine. Relations with these nations are largely cordial except for
some bilateral disputes with Pakistan and Burma. Issue with India stem from Teesta and other river
water sharing and border killings.[10] Bangladesh puts deep emphasis on relations with China and the
United States as China is the largest military supplier to Bangladesh while United States is one of the
largest export markets for Bangladeshi products. In recent years, the relations with Russia also became
influential because of the Russian loan and technical assistance on military modernization and the first
ever nuclear power plant project of Bangladesh. The bilateral relations of Bangladesh are mainly based
on trade activities. However, with certain countries, the relations expand to other areas such as military
co-operation, cultural exchange etc.
Bangladesh foreign policy behavior
The foreign relations of Bangladesh are the Bangladeshi government's policies in its relations with
other countries. Since independence in 1971, Bangladesh has officially followed a principle of being
friendly with all nations and not being enemies with any. As a member of the Non-Aligned Movement,
Bangladesh has tended to not take sides with major powers. Since the end of the Cold War, the country
has pursued better relations with its neighbours. It has strong relations with other Muslim countries. It
does not recognize Israel.

National interest of Bangladesh

A NUMBER of challenges lie ahead of Bangladesh amid the intensifying rivalry of India, the United States
and Japan with China, which appears to be rolling on to a new cold war. The major challenge that
Bangladesh is faced with is that the country appears to be at risk of becoming a party to the new cold
war as the conflicting countries, for their national and strategic interests, approach Bangladesh, for its
strategic location on the bridge between South Asia and Southeast Asia. But becoming a party to any of
the conflicting campaigns, as foreign policy and defense strategists say, might be detrimental to the
country’s national interests and, therefore, it must maintain neutrality and balance prioritizing national
and strategic interests. India’s plan, as expressed recently by its minister of external affairs, to engage
Japan in taking joint projects, as the two countries have done on a limited scale in Sri Lanka, in
Bangladesh and Myanmar appears to assume ramified significance against the backdrop of the efforts
by several countries — India, Australia, Japan and the United States, called the Quadrilateral Security
Dialogue  or the Quad — to forge new partnerships with countries on the rims of the Indian and Pacific
oceans styled as Indo-Pacific Strategy in the face of China’s growing activities, mostly economic though,
in the area.
Bangladesh, which already has bilateral and other agreements on different development programmed
with China, India and Japan and which is also a participant of the China-led global infrastructure
development strategy, known as the Belt and Road Initiative, should, therefore, choose its path based
on national interests and should pursue an equidistant policy to both the parties of the ‘new cold war’.
Having already been in an apparent fix trying to deal with the present Rohingya crisis where Bangladesh
appears to have largely been left alone, the government should critically assess and evaluate the Indo-
Pacific Strategy to see whether it is a benign development and economic programmed or it is being
floated to counter the growing influence of China in the area. Regionally speaking, India, Japan and
China are competing to fill in the void in world leadership and in that pursuit these countries are
intensely trying to influence other countries, especially the neighboring ones, through investment, trade
and development partnership in order to safeguard their security and strategic interest. All these
countries, along with the United States, want a gateway to, and control over, the Indian Ocean as it is
vital for any potential world power to dominate the region and Bangladesh’s, as well as Myanmar’s,
strategic location is what makes it a sought-after participant in the Indo-Pacific Strategy. Keeping in mind
the growing Sino-India tensions, the apparently emerging ‘new cold war’ and the national and strategic
interests, Bangladesh should determine its engagement in, or disengagement from, global and regional
platforms.
Participation in multilateral organizations
Commonwealth of Nations
Bangladesh, which was part of British India until 1947, joined the Commonwealth of Nations in 1972
after its establishment as an independent nation in 1971. It has actively participated in the Heads of
Government conferences that take place bi-annually.
United Nations
Bangladesh was admitted to the United Nations in 1974[2] and was elected to a Security Council term in
1978–1980] and again for a 2000–02 term. Foreign Minister Mr. Humayun Rasheed Choudhury served as
president of the 41st UN General Assembly in 1986.
In recent years, Bangladesh has played a significant role in international peacekeeping activities. Nearly
10,000 Bangladeshi military personnel are deployed overseas on peacekeeping operations, making it a
large contributor to the UN peacekeeping forces. Under UN auspices, Bangladeshi troops have served or
are serving in Somalia, Rwanda, Mozambique, Kuwait, Bosnia and Herzegovina, and Haiti, and units
are currently serving in Kuwait and East Timor. Bangladesh responded quickly to US President Bill
Clinton's 1994 request for troops and police for the multinational force for Haiti and provided the
largest non-US contingent. As of December 2021, Bangladesh is the largest provider of UN peacekeeping
troops with 6608 personnel followed by Rwanda with 6335 personnel.[4]
Non-Aligned Movement[edit]
Main article:  Non-Aligned Movement
Bangladesh was selected to provide the next chairman of NAM at the summit scheduled
for Dhaka 2001, however it was later decided to host the summit at an alternative venue. As a member
of the Non-aligned Movement Bangladesh never took any position in line with big powers. However it
parted from its principle by voting against North Korea at the United Nations in December 2008, under
pressure from Japan.
Organization of Islamic Cooperation
Main article:  OIC
See also OIC role in Pakistan-Bangladesh relationship
In 1974, then Prime minister Bangabandhu Sheikh Mujibur Rahman, led a Bangladeshi delegation team
consisting Kamal Hossain, Enayat Karim, Attar Rahman Khan, Taher Uddin Thakur, Tufail
Ahmed and Shah Aziza Rahman[5] to the international meeting of the Organization of the Islamic
Conference (OIC, now the Organization of Islamic Cooperation) held in Lahore. Following this
participation Bangladesh was admitted as a member of OIC. In 1977, President Ziaul Rahman amended
the Constitution of Bangladesh, including a clause stating that " the state shall endeavor to consolidate,
preserve and strengthen fraternal relations among Muslim countries based on Islamic solidarity ".
[6]
 Since then, an explicit goal of Bangladeshi foreign policy has been to seek close relations with other
Islamic states. In 1980, President Ziaul Rahman was included in a 3-member "Al-Quds" summit
committee to attend the summit at Morocco.[7] In 1983, Bangladesh hosted in capital Dhaka the foreign
ministers meeting of the OIC. At the OIC headquarters at Jeddah, Bangladesh is represented in the
capacity of one of the Director Generals.
South Asian Association for Regional Cooperation
The government also pursued the expansion of co-operation among the nations of South Asia, bringing
the process—an initiative of former President Ziaul Rahman—through its earliest, most tentative stages
to the formal inauguration of the South Asian Association for Regional Cooperation (SAARC) at a
summit gathering of South Asian leaders in Dhaka in December 1985. Bangladesh has served in the
chairmanship of SAARC and has participated in a wide range of ongoing SAARC regional activities
Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation[edit]
Main article:  BIMSTEC
An international organization which includes South Asian and Southeast Asian nations. The member
nations of this group are: Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal. The
organization focuses on regional economy, regional development and trade & investment.
Developing 8 Countries[edit]
Main article:  Developing 8 Countries
Bangladesh is among the 8 member countries of this organization. But no plans for expansion have been
made by Bangladesh. The Developing 8 is an economic development alliance consisting of Muslim
majority states which focuses in multiple areas which are rural development, science and technology,
banking, agriculture, humanitarian development, energy, environment, health and finance. On 14 May
2006 in Bali, Indonesia, Bangladesh was the only nation not to sign a preferential trade agreement.
Asia Pacific Trade Agreement[edit]
The Asia-Pacific Trade Agreement (APTA), formerly known as the Bangkok Agreement, was signed in
1975 under one of the major initiatives taken by United Nations Economic and Social Commission for
Asia and the Pacific (UNESCAP). Six Participating States- Bangladesh, China, India, Lao PDR, South Korea,
and Sri Lanka are the parties to the APTA. In 2005, Bangladesh signed the APTA agreement which would
enable it to reduce trade gaps between itself and other nations such as China, South Korea and its
neighbor India. The APTA pact does occupy market for 2921.2 million people and the size of this big
market accounts US$14615.86 billion in terms of Gross Domestic Product (GDP) in the Fiscal Year (FY)
2015–2016.[8] APTA's key objective is to hasten economic development among the six participating
states opting trade and investment liberalization measures that will contribute to intra-regional trade
and economic strengthening through the coverage of merchandise goods and services, synchronized
investment regime and free flow of technology transfer making all the Participating States to be in
equally winsome situation (Lafite, E. H., 2016). Another aspect of the agreement is to be given duty-free
access to its products.[9]
World Trade Organization[edit]
Bangladesh is an active member of the World Trade Organization (WTO). Bangladesh has a permanent
mission in Geneva to look after matters relating to multilateral trading system under the WTO regime
since the mid-1990s.
World Customs Organization[edit]
Bangladesh is an active member of the World Customs Organization (WCO). Bangladesh has a
permanent representative to WCO which has its headquarters in Brussels.
Like Minded Group[edit]
Main article:  Like Minded Group
Bangladesh has formed an alliance with nineteen other developing countries to vote as a bloc in
organizations such as the WTO and the United Nations.
Other[edit]
Bangladesh is currently chairman of the Developing 8 Countries. The government has participated in
numerous international conferences, especially those dealing with population, food, development, and
women's issues. In 1982–83, Bangladesh played a constructive role as chairman of the "Group of 77", an
informal association encompassing most of the world's developing nations. It has taken a leading role
in the "Group of 48" developing countries. Bangladesh also participates in these international
organizations: ARF, As DB, BIMSTEC, CP, FAO, IAEA, IBRD, ICAO, ICC, Act (signatory), ICRM, IDA, IDB,
IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO, ITU, ITUC, MIGA, MINURSO, MONUC,
SACEP, UNCTAD, UNESCO, UNHCR, UNIDO, UNMEE, UNMIL, UNMIS, UNOCI, UNOMIG, UNWTO, UPU,
WCL, WCO, WFTU, WHO, WIPO, WMO, WTO, OPCW.

Globalization- Prospects and Challenges?

It is amply clear that Bangladesh has vulnerabilities in practically all areas: territorial, economic,
environmental, and socio-Political. Bangladesh appears to be constrained as far dealing with its
immediate neighbors are concerned, which means that it will need to cooperate with them despite the
fact that its internal security and stability could be adversely affected by them. However, this is not to
deny the value of military power, which can always act as a deterrent. No matter how remote the
possibility of aggression from the outside, Bangladesh should formulate a sound defense policy. While
there are both external and internal sources of threats, on balance the latter are perceived to be posing
more serious challenges for the security, stability and prosperity of the country. The main objectives of
Bangladesh’s foreign policy, viz., upholding its sovereignty, cultural identity, ideology is challenged by
the forces of globalization. At the same time, while these factors do pose threats, it is difficult to
determine exactly when and how they will evolve into threats to national security.
The most pressing task before Bangladesh is to achieve political stability; otherwise, it will not be
possible for its diplomats to project a positive image of the country. Foreign policy is, after all, is an
extension of its domestic policy; therefore, as long as Bangladesh is domestically not in order, it would
not be realistic to expect it to have a credible and effective foreign policy.
Despite the challenges confronting the security and foreign policy of Bangladesh, it is yet possible to
hope for a prosperous future. The tragedy would be that, if it cannot compete and negotiate with the
outside world from a position of strength, if cannot take advantage of the positive aspects of
globalization, and if it fails to peacefully resolve its own domestic social and political problems, the
process of development would be retard- taking perhaps several more costly decades, instead of one.
Bangladesh needs to deal with challenges like transnational economic and financial forces, cross-border
terrorism, arms and drug trafficking, climate change and environmental degradation through
cooperation and coordinated efforts at both regional and international levels. The main purpose of
Bangladesh’s foreign policy in the present era should be minimizing the degree of vulnerabilities and
reducing threats to its security, as well as possessing the ability to shape its security environment
through an effective and realistic assessment of its national interests, and the production thereof
through pragmatic and active diplomacy.
Conclusion
It can therefore be argued that despite globalization, the real sources of Bangladesh’s insecurity would
continue to remain mainly domestic (which could be exacerbated and exploited by external sources),
that demand attention from within the state. The basic challenge facing Bangladesh is to comprehend
the nature of changes taking place in the international economy and to deal with them through creating
conditions and institutions necessary for coping with a dynamic environment. Only the constructive
efforts of a dynamic and modern state could achieve success in eliminating the main sources of
insecurity. Otherwise, chances are that, widespread and endemic social and political conflict would
reduce it to the status of a “failed state,” with people becoming more concerned with personal security
than with national security.
Economy of Bangladesh
The Economy of Bangladesh is characterized as a developing market economy.[40] It is the 41st
largest in the world in nominal terms or at current prices, and 30th largest by purchasing power parity;
international dollars at current prices. It is classified among the Next Eleven emerging market middle
income economies and a frontier market. In the first quarter of 2019, Bangladesh's was the world's
seventh fastest-growing economy with a real GDP or GDP at constant prices annual growth rate of 8.3%.
[41]
 Dhaka and Chattogram are the principal financial centers of the country, being home to the Dhaka
Stock Exchange and the Chattogram Stock Exchange. The financial sector of Bangladesh is the third
largest in the Indian subcontinent. Bangladesh is one of the fastest growing economies in the world
and South Asia.
In the decade following 2004, Bangladesh averaged a GDP growth of 4.5%. This growth had been largely
driven by its exports of ready made garments, remittances and the domestic agricultural sector. The
country has pursued export-oriented industrialisation, with its key export sectors
include textiles, shipbuilding, fish and seafood, jute and leather goods. It has also developed self-
sufficient industries in pharmaceuticals, steel and food processing. Bangladesh's telecommunication
industry has witnessed rapid growth over the years, receiving high investment from foreign companies.
Bangladesh also has substantial reserves of natural gas and is Asia's seventh largest gas producer.
Offshore exploration activities are increasing in its maritime territory in the Bay of Bengal. It also has
large deposits of limestone.[42] The government promotes the Digital Bangladesh scheme as part of its
efforts to develop the country's growing information technology sector.
Bangladesh is strategically important for the economies of Nepal and Bhutan, as Bangladeshi seaports
provide maritime access for these landlocked regions and countries.[43][44][45] China also views
Bangladesh as a potential gateway for its landlocked southwest, including Tibet, Sichuan and Yunnan.
Bangladesh is a member of the D-8 Organization for Economic Cooperation, the South Asian
Association for Regional Cooperation, the International Monetary Fund, the World Bank, the World
Trade Organization and the Asian Infrastructure Investment Bank. The economy faces challenges of
infrastructure bottlenecks, bureaucratic corruption, and youth unemployment.
Challenges of BANGLADESH economy
Inflation
Higher price of products in international market happens from previous two or three years. The
following are the explanations for higher price of products as well as decreasing the purchasing power of
general people. Destructive activities of dishonest syndicates of the period of union (BNP-Jamat)
government. Other than that, the investors are not financing in the country and showing signal that
production will decrease in near future. For this reason, businessmen are not selling their products,
storing products and creating scarcity of products to earn more money. For example, Production of rice
is not as much as their expectation. Furthermore, Businessmen are not interested to import rice from
abroad by investing a huge amount of money for the luck of confidence on caretaker government.
Foundations are following the primitive institutional structure because care taker government has not
taken any positive initiative to restructure institutional structures. Price of products has enlarged for the
hindrance of supply. So, people are facing the problem of inflation.
Currency and Price Stability
The government has endeavored to control inflation. Since the 1990s the average inflation rate has been
about 5.6%, remarkably low related to the second half of the 1980s, when the rate was about 8%.
Inflation averaged 7.2% in fiscal year 2007, primarily due to rises in both food and nonfood prices.
Among the main sources were domestic demand pressures, fed by higher incomes and strong monetary
and credit evolution. However, after June of the same year, escalating international commodity prices,
especially for food, were dominant, driving inflation to 11.4% (year on year) in January 2008. Near the
end of fiscal year 2008 food prices diluted, thus allowing point-to-point inflation to drop to 7.5% percent
in May.