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Jashore University of Science and Technology

Department of Accounting And Information Systems

Course Title: Bangladesh Studies

Course Code: 1107

A term paper on

Historical insights of Bangladesh for the prospective lead to the South

Asian economy

Submitted by Submitted to

Nandinee Datta Fazlur Rahman

ID:211839 Lecturer
1st Year,1st Semester Department of Accounting And Information
Department of Accounting And Information Systems
Systems Jashore University of Science and
Jashore University of Science and
Technology Technology

Submission Date: 15 July2023

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Table of Contents

Abstract………………………………………………………………………4

Chapter-01 Formation of Bangladesh……………………………………...5

1.1. Partition of Bengal……………………………………………………………….5

1.2. Language Movement and Independence……………………………………….6

Chapter-02 Post-Independence Challenges ………………………………7

2.1 Rehabilitation and Reconstruction……………………………………………...7

2.2 Financial instability………………………………………………………………7
2.3 Natural Disasters…………………………………………………………………7
2.4 Infrastructure Development……………………………………………………..7
2.5 Political Uncertainty……………………………………………………………..7
2.6 Administration and Corruption…………………………………………………7

Chapter-03 Growth in various Economic Sector…………………………8

3.1 Agricultural Development…………………………………………8

3.1.1 Green Revolution…………………………………………………………8
3.1.2 Production of Rice………………………………………………………..8
3.1.3 Crop diversification……………………………………………………8

3.2 Garment Industry and Export Oriented Growth………………8

3.2.1 Ready-Made Garment (RMG) sector………………………………...8

3.2.2 Export Diversification…………………………………………………9

3.2.3 Supportive Policies and Incentives……………………………………9

3.3 Information technology…………………………………………...9

3.3.1 Early Stages…………………………………………………………….9

3.3.2 IT export and outsourcing…………………………………………….9

3.3.3Software development and IT parks………………………………….9

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3.4 Infrastructure development:…………………………………….10

3.4.1 Metro rail……………………………………………………………….10

3.4.2 Padma bridge……………………………………………………….….10

Chapter-04 Becoming the leading country in South Asian Economy…12

4.1 Consistent and Robust Economic Growth…………………………………12

4.2 Ready-Made Garment (RMG) sector……………………………………….12

4.3 Export Diversification………………………………………………………..12

4.4 Geographic Advantage ………………………………………………………13

4.5 Business and Investment Environment……………………………………..13

4.6 Human Capital Development………………………………………………..13

4.7 Social Development Initiatives ……………………………………………...13

4.8 Public Private Partnership (PPP) …………………………………………..14

4.9 Regional and International Cooperation…………………………………...14

Results and Discussion ……………………………………………...……15

References………………………………………………………………….16
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Abstract

Bangladesh has developed during the past ten years, with annual growth averaging over 7%,

into one of Asia's most stunning and surprising success stories. The majority of Bangladesh's

development has come from exports of clothing, much like Hong Kong, Singapore, South

Korea, and Taiwan during the industrialization of their economies. About two-thirds of

China's low-end manufacturing market share in Europe has been taken over in recent years

by Bangladesh.A World Bank study titled "The Bangladesh Development Update April

2018" states that Bangladesh is maintaining its excellent development trajectory. Exports,

local demand, and rising foreign investor interest will all contribute to sustained economic

development. Gross domestic product (GDP) growth is anticipated to remain strong from

2018 to 2020, averaging between 6.5 and 7 percent despite macroeconomic difficulties.

Bangladesh is also effective in fostering neighborhood-level efforts for economic inclusion.

Social reforms, beginning with the emancipation of women, had a significant role in

Bangladesh's economic transition. In the list of rising economies compiled by the World

Economic Forum's Inclusive Development Index (IDI), Bangladesh came in at number 34,

surpassing other South Asian nations including India, Pakistan, and Sri Lanka. In the IDI

report from 2018, Sri Lanka is rated 40th, Pakistan is ranked 52nd, and India is ranked 62nd.

Comparing Bangladesh to its bigger neighbours like India and Pakistan, the country does

better in several areas of human development.

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Chapter-01
Formation of Bangladesh

A notable historical event that took place in 1947 during the division of British India was the

creation and partition of Indian subcontinent. India and Pakistan are the two new nations as a

result of the division. Bengal, a place with a rich cultural and historical past, was split along

religious lines as well. Bengal was a province ruled by the British before partition, with

Calcutta (now Kolkata) serving as its capital. Bengal's population was made up of a mixture

of Hindus, who made up the majority, and Muslims, who made up a sizeable minority.

British India had been seeing an increase in Muslim desire for a separate country, which

ultimately resulted in the creation of Pakistan. Bengal was split into West Pakistan and East

Pakistan during the partition. East Bengal, which has a Muslim majority, joined Pakistan,

whereas West Bengal, which has a Hindu majority, joined India. The separation was caused

by religious demography rather than linguistic or ethnic differences. Geographically, East

Pakistan was distinct from West Pakistan since they were separated by more than a thousand

miles of Indian land. Due to their physical separation, East Bengal (later known as East

Pakistan) and West Pakistan have different linguistic, cultural, and socioeconomic

characteristics. There were several difficulties and effects following the division of Indian

subcontinent. As a result, a huge number of Hindus from East Bengal moved to West Bengal.

As a result, there were significant migrations as Muslims went from West Bengal to East

Bengal while Hindus from East Bengal relocated to West Bengal. Violence and racial

tensions were present during the migration process, which resulted in deaths and forced

relocation of individuals. The divide also had an impact on Bengal's governmental and

political system. Due to the disruption caused by the partition, attempts were undertaken in

West Bengal and East Bengal to create new province administrations and administrative
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frameworks. The equitable representation and autonomy of the territory were issues in East

Bengal, which later became East Pakistan. Growing unrest was experienced in East Pakistan

as a result of economic imbalances, linguistic and cultural barriers between East and West

Pakistan. This geographical separation contributed to a distinct socio-cultural identity for the

people of East Pakistan (Bangladesh).

1.2 Language Movement and Independence:

The imposition of Urdu as the only state language by the Pakistani central government led to

the Language Movement in East Pakistan (now Bangladesh) in 1952. The movement worked

to defend the linguistic rights of the Bengali-speaking community and pushed for Bengali to

be recognised as an official language alongside Urdu. Students and activists gathered at

Dhaka University on February 21, 1952, to protest the language policy and call for Bengali to

be recognised. Rafiq Uddin Ahmed and Abdul Jabbar were among the students killed when

police opened fire on the protesters during a peaceful demonstration. The Language

Movement was well-liked and helped the people of East Pakistan develop a feeling of

political and cultural identity. As a result of the movement's success, Pakistan officially

recognised Bengali as one of its official languages in 1956 by passing the Language

Movement Resolution. However, the Language Movement also served as a springboard for a

larger East Pakistani independence and autonomy movement. Awami League was founded as

a result of rising political, economic, and cultural tensions between East and West Pakistan.

The Awami League promoted more autonomy for East Pakistan. The campaign for total

independence from Pakistan developed out of the Awami League's desire for regional

autonomy. Bangladesh's declaration of independence from Pakistan on March 26, 1971,

sparked a nine-month battle for independence. The Pakistani army was forced to surrender on

December 16, 1971, bringing the bloody conflict to a conclusion. Bangladesh became a self-

governing country and received prominence on a global scale.

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Chapter-02
Post-Independence Challenges

Bangladesh encountered several obstacles on the road to nation-building and socioeconomic

growth after gaining independence in 1971. Following independence, major problems
include:

2.1 Rehabilitation and Reconstruction: Significant destruction had been brought about by
the liberation conflict, including harm to the infrastructure, fatalities, and population
relocation. To restore the nation and meet the needs of the war-affected populace,
reconstruction and rehabilitation initiatives were required.

2.2 Financial instability: Bangladesh was given over with a shaky economy and few
resources. It experienced significant economic difficulties, including as high inflation, a weak
industrial production, and insufficient foreign exchange reserves. The loss of earnings from
the jute trade, which was a significant source of wealth during the time before independence,
was another issue for the nation.

2.3 Natural Disasters: Natural catastrophes including cyclones, floods, and droughts are
common in Bangladesh. These catastrophes frequently resulted in severe losses to human life,
agriculture, and infrastructure, necessitating large-scale relief and reconstruction operations.

2.4 Infrastructure Development: The nation's transportation, electrical, and communication

networks all lacked appropriate infrastructure. These restrictions hampered access to rural
locations and economic development.

2.5 Political Uncertainty: Periods of political unrest, including military takeovers and
frequent governing transitions, occurred in Bangladesh. Long-term growth plans were
hampered by this uncertainty, which also made things risky for investors.

2.6 Administration and Corruption: Bangladesh experienced issues with bad governance,
corruption, and ineffective bureaucracy. The delivery of public services, the business
environment, and the efficiency of governmental institutions were all impacted by these
problems.

Despite these challenges, Bangladesh has made remarkable progress in various areas over
the years, including poverty reduction, healthcare, education, and economic growth. The
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government, along with international support and efforts from civil society, has been working
towards addressing these challenges and driving sustainable development in the country.

Chapter-03
Growth in various Economic Sector
3.1 Agricultural Development:

3.1.1 Green Revolution: Bangladesh went through the Green Revolution in the 1960s and

1970s, which brought high-yield crop types, contemporary agricultural methods, and

enhanced irrigation and fertilisation practises. This improved agricultural output and was

essential in guaranteeing food security.

3.1.2 Production of Rice: Rice is Bangladesh's main agricultural export. Through the

introduction of high-yield cultivars and better agricultural techniques, efforts were made to

increase rice output. The System of Rice Intensification (SRI), among other technological

innovations, has assisted in increasing yields and reducing dependency on imported rice.

3.1.3 Crop diversification: Bangladesh has encouraged crop diversification to lessen

reliance on a single crop. Jute, tea, and tobacco have all traditionally been important cash

crops. In order to enhance agricultural diversification and farmer earnings, the nation has also

concentrated on developing vegetables, fruits, spices, and non-traditional export-oriented

products.

3.2 Garment Industry and Export Oriented Growth:

3.2.1 Ready-Made Garment (RMG) sector: Bangladesh's export-focused expansion has

been significantly fueled by the garment sector. By utilising its competitive advantage of

cheap labour costs and a sizable workforce, the nation has grown to be one of the major
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exporters of clothing in the world. The creation of jobs, foreign exchange revenues, and the

eradication of poverty have all been considerably aided by the RMG industry.

3.2.1 Export Diversification: Bangladesh has been aggressively attempting to diversify its

export base, notwithstanding the continued importance of the RMG industry. Sectors include

medicines, jute and jute products, information technology, leather goods, and agro-processing

have all been targeted for promotion. This diversity improves economic resilience by

reducing reliance on a single industry.

3.2.3 Supportive Policies and Incentives: To encourage investment and support export-

oriented sectors, the government has put policies into place and offered incentives. These

include tax breaks, the ability to import machinery duty-free, export subsidies, and the

creation of special economic zones to support the expansion of industry.

3.3 Information technology:

3.3.1 Early Stages: Bangladesh's IT industry was in an early stage of post-independence

development. During this time, its expansion was hampered by inadequate infrastructure, a

lack of knowledge, and technological constraints. With the development of internet

connection and the liberalisation of the telecommunications industry, the late 1990s saw a

crucial turning point. The Bangladesh Association of Software and Information Services

(BASIS) was established in 1997 as part of the government's policy changes to advance the

IT sector.

3.3.2 IT export and outsourcing: Beginning in the early 2000s, Bangladesh gained

popularity as a location for the outsourcing of business process outsourcing (BPO), IT-
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enabled services, and software development. The nation started selling IT services abroad,

mostly to customers in North America, Europe, and Australia.

3.3.3Software development and IT parks: The government has made steps to create

software technology parks and IT hubs to support the expansion of the information

technology sector. These parks, including the Janata Tower Software Technology Park in

Dhaka and the Bangabandhu Hi-Tech City in Gazipur, provide IT businesses infrastructure,

technological facilities, and a welcoming atmosphere. (OpenAI, 2023)

3.4 Infrastructure development:

3.4.1 Metro rail: This year Bangladesh inaugurated it 's first metro rail system, MRT-6, in

Dhaka, and examines its potential impact on the economy and the lives of city dwellers. It

highlights the need for an efficient communication system to alleviate traffic congestion and

improve transportation in Dhaka. The economic viability of the project is examined, with

considerations given to project costs, revenue generation, and the importance of sustainable

management. It also can reduce traffic congestion, travel time, and costs for commuters,

potentially resulting in annual savings that can be invested in the economy. Again it created

the employment opportunities and the focus on women empowerment through equal job

opportunities. Environmental benefits are addressed, including the reduction of air pollution

and the use of renewable energy sources. Overall, the metro rail project is seen as a

significant step towards a better Dhaka and a catalyst for economic development. Report

(2022)

3.4.2 Padma bridge:

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The Padma Bridge has a big influence on the entire nation and helps the south-western

region's socioeconomic and industrial growth. The country's connection between these

regions and the capital has improved. The bridge is particularly noteworthy since it was

constructed over a particularly intricate river system that served as a barrier between

Bangladesh's most significant economic centres and its south-western area. The Padma

Bridge altered the lives of about 30 million residents of the country's south-western area,

encouraged contemporary and commercial activity, and increased access to economic and

employment prospects. The GDP growth of the southern area would increase annually by

2.3% and that of the entire country by 1.23% as a result of the improvement in regional and

international communication links. Additionally, once the rail connectivity is operational,

there will be further GDP development. Many visitors will travel to Kuakata, Sundarban, and

the neighbouring areas now that the bridge has enhanced communication between Dhaka and

Kuakata. The Padma Bridge is anticipated to reduce the amount of time it takes to travel

between Dhaka Division and the south-west by almost two hours for automobiles, buses, and

trucks, and by five to ten hours for trucks. (“How Padma Bridge Helps Us Fulfill the SDGs

and Vision 2041,” 2022)

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Chapter-04
Becoming the leading country in South Asian Economy

In order to become a major player in the South Asian economy, Bangladesh has been

progressing significantly. Here are some important elements advancing it:

4.1 Consistent and Robust Economic Growth: Over the last 10 years, Bangladesh's

economy has grown at an average yearly pace of about 7%. Construction, remittances,

telecommunications, the garment and textile industry, and services have all contributed to this

rise. (Bangladesh - Strategy for Sustained Growth : Summary Report, n.d.)

4.2 Ready-Made Garment (RMG) sector: Bangladesh's economic expansion has been

significantly fueled by the RMG sector. By utilising its competitive advantage of cheap

labour costs and a sizable workforce, the nation has grown to be one of the major exporters of

clothing in the world. The sector has made a substantial contribution to reducing poverty,

generating foreign exchange, and creating jobs. (Improving Working Conditions in the

Ready-Made Garment Sector Programme in Bangladesh (2017-2023), 2013)

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4.3 Export Diversification: Bangladesh has been aggressively attempting to diversify its

export base, despite the RMG sector's continued importance. Sectors include medicines, jute

and jute products, information technology and IT-enabled services, leather goods, and agro-

processing have all received promotion. This diversity improves economic resilience by

reducing reliance on a single industry. (Moazzem et al., 2023)

4.4 Geographic Advantage: Bangladesh's geographical position offers it connectivity and

trade possibilities. With India and Myanmar as neighbours, it has access to substantial

markets. In order to enable regional and global commerce, the nation has also developed its

transport infrastructure, including ports and road networks.

4.5 Business and Investment Environment: Bangladesh has taken steps to enhance its

business environment and draw foreign direct investment (FDI). To draw in both domestic

and foreign investors, reforms have been put in place to improve infrastructure, streamline

corporate processes, and create special economic zones. Additionally, the government has

provided a number of incentives to encourage investment in key industries.

4.6 Human Capital Development: Bangladesh has made major financial commitments to

the development of its human resources. The nation has made outstanding strides towards

gender parity in elementary and secondary education, rising literacy rates, and strengthening

the workforce's capabilities. A trained and educated workforce fosters productivity and

creativity, which fuels economic growth.

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4.7 Social Development Initiatives: Bangladesh has carried out a number of social

development efforts, such as social safety nets, microfinance, and schemes to reduce poverty.

These programmes seek to raise the standard of life for the populace, lessen income disparity,

and enhance social indices including access to essential services, healthcare, and nutrition.

4.8 Public Private Partnership (PPP): Bangladesh has extensively sought public-private

partnerships (PPPs) to mobilise funds and skills for infrastructure development projects.

Infrastructure development has been accelerated through partnerships between the public and

private sectors in industries including telecommunications, transportation, and power

generation.

4.9 Regional and International Cooperation: Bangladesh has actively participated in

regional and international cooperation, including membership in groups like the Bay of

Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) and

the South Asian Association for Regional Cooperation (SAARC). These platforms bring up

opportunities for economic growth by facilitating regional connection, trade facilitation, and

economic integration.

Although Bangladesh still confronts issues such as lack of infrastructure, ineffective

government, and income disparity, the nation's consistent economic development, sector

diversification, and pro-business policies have given it a leadership place in the South Asian

economy. (OpenAI, 2023)

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Results and Discussion

In summary, Bangladesh emerged as a separate country through the partition of Bengal in

1947. After gaining independence in 1971, the country faced challenges such as infrastructure

destruction, financial instability, natural disasters, political uncertainty, and corruption.

However, Bangladesh made progress in various economic sectors. The agricultural sector

saw improvements through the Green Revolution and crop diversification. The garment

industry, particularly the RMG sector, became a major contributor to the economy. The

information technology sector experienced growth, and infrastructure development projects

like metro rail systems and the Padma Bridge enhanced connectivity. Bangladesh has become

a prominent player in the South Asian economy through consistent economic growth, export

diversification, geographic advantage, business-friendly policies, human capital development,

and regional and international cooperation.

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References

OpenAI. (2023). ChatGPT (Feb 13 version) [Large language model]. https://chat.openai.com

Moazzem, K. G., Ahmed, N., Manzur, S. N., & Chowdhury, M. I. (2023). FRAMEWORK

FOR THE PROPOSED COMPREHENSIVE TRADE POLICY FOR BANGLADESH*

[Website]. Centre for Policy Dialogue (CPD).

https://cpd.org.bd/pub_attach/WP99.pdf

Improving Working Conditions in the Ready-Made Garment Sector Programme In

Bangladesh (2017-2023). (2013, October 21).

https://www.ilo.org/dhaka/Whatwedo/Projects/safer-garment-industry-in-

bangladesh/WCMS_226530/lang--en/index.htm

Bangladesh - Strategy for sustained growth : Summary report. (n.d.). World Bank.

https://documents.worldbank.org/en/publication/documents-reports/documentdetail/

175351468201541840/summary-report

Report, T. (2022, December 29). Bangladesh in the era of metrorail: Beyond just a

communication infrastructure. The Business Standard.

https://www.tbsnews.net/features/panorama/bangladesh-era-metrorail-beyond-just-

communication-infrastructure-559578

How Padma Bridge helps us fulfill the SDGs and Vision 2041. (2022, August 12). Dhaka

Tribune. Retrieved July 13, 2023, from

https://www.dhakatribune.com/op-ed/2022/08/13/how-padma-bridge-helps-us-fulfill-

the-sdgs-and-vision-2041#:~:text=Since%20the%20bridge%20has%20improved,to

%2010%20hours%20for%20trucks.