BASIC ECONOMIC PROBLEMS to Bangladesh Economy

MUNMUN SHABNAM
BIPASHA
Department of Business
Administration
Daffodil International
University
 Basic economic problems of Bangladesh
Undeveloped • 75% people of this country are dependent on agriculture
• due to traditional system of cultivation, lack of facilities for irrigation, manures, seeds,
Agriculture agricultural loans and natural hazards etc.

Undeveloped • The pace of industrial development of this country is very slow due to lack of capital, developed technical
knowledge, skilled labor, improved infrastructure, proper planning etc
Industry • The contribution of industry to the national income is only 29.93%.

• In the United states are per capita income is 47094 dollar, in Japan 34692 dollar, in Germany
Less Per Capita 35308 dollar,
Income • in Bangladesh it is only 1587 (UNDP-2011) dollar

• 50% people of Bangladesh live below the poverty line due to low income.
Low Standard of • More than half of people of this country at present suffering from hunger, malnutrition have become
Living seek and have lost strength for work.

Inadequacy of • Savings in Bangladesh are less because of low income. As a result, the rate of capital formation is low.
• Due to lack of adequate capital investment and production in agriculture and industry are very low.
Capital
 Basic economic problems of Bangladesh
Rapid Population • The present rate of population growth in Bangladesh is 1.40%.
• This rate of population increase is much higher compared to many other countries of the world.
Growth
Unemployment • Unemployment problem exists in Bangladesh due to rapid population growth and lack of employment
opportunities.
Problem • About 30 percent of productive labors of the country are unemployed.

• At present our annual food deficit is about 40 lacks of tons.

Food Deficit • Because of undeveloped method of cultivation, lack of improved seed, fertilizer and pesticides, absence of
sufficient irrigation facilities, natural calamities, and rapid population of is less than the requirement.

• At present in Bangladesh about 55% of population is illiterate.

Lack of Education • Because of this wide spread illiteracy, social environment of our country is not favorable for economic
development.

Deficit in Foreign • Since production in agriculture an industrial sector in Bangladesh is low, the volume of export is also less
• To meet the diversity of demand of our ever increasing population and also for developmental needs imports are
Trade far greater than export.
 Basic economic problems of Bangladesh
Over Dependence on • As the per capita income of the people of Bangladesh is low their savings are also low.
• As a result sufficient fund that is required for economic development cannot be met from
Foreign Aid international resources.

Underdeveloped Socio- • Our economic Infrastructure is not developed so as the social infrastructures
• For poor infrastructure the economic and social development of this country hampered.
economic Infrastructure
• In Bangladesh there is absence of proper pragmatic planning for economic development.
Lack of Proper Planning • As a result, desired development cannot be achieved in agriculture, industry, education,
health etc. sectors.

Undeveloped Social • The influence of social environment in Bangladesh is not developed due to lack of
education, bad education, superstitions, religious fanaticism, unreasonable religious
Environment decrees etc.

• Political stability and discipline and peace are the preconditions of development.
Political Instability • But in Bangladesh, production in mills and factories and other development oriented
programmes are hampered due to prevailing political instability.
 Solution of economic problems of Bangladesh
Full Utilization
Agricultural Rapid Population
Capital Increase of Natural
Development Industrialization Control
Resources
At present it is not There are fertile
Agricultural possible on the part An increase in capital agricultural land, It is not possible to
development shall investment in the water resources, achieve economic
of any country of sector of agriculture,
have to be attained natural gas and other development in the
the world to attain industry, trade and mineral resources in
through adoption of economic progress commerce etc. will present rate of
Bangladesh.
modern agricultural without industrial lead to increase increase of
method. development production and population cannot
income. Bright prospect for be controlled.
Use of improved Industrial discovery of some
seeds and manures, development in our For this purpose, more mineral
increased irrigation country shall have to savings of the people resources is also there For this, the
facilities, adequate be achieved side by are to be increased for production, income tendency of
agricultural loan, side with agriculture increasing capital. and employment population increase
flood control, for increasing national Proper social opportunities will should be
cooperative farming environment has to be increase if these
etc. is necessary for
income and
natural resources are
controlled through
employment maintained for family planning.
the purpose. opportunities. profitable investment. properly utilized.
 Solution of economic problems of Bangladesh
Improvement Solution of Development Proper
Spread of
of Technical Unemployment of Economic Utilization of
Education
Knowledge Problem Infrastructure Foreign Aid
Technical
knowledge of Unemployment shall Developed economic Bangladesh receives
The illiteracy of the
workers shall have have to be removed infrastructure is every year a huge
people shall have
to be improved for for the purpose of indispensable for amount of foreign
to be removed
the purpose of increasing per capita improvement of loans and aid form
through extensive World Bank other
increasing income of the people agriculture, industry
spread of organizations and
production in mills and improving their and trade and
education. different countries
and factories. standard of living. commerce.

As a result, For this purpose, it For this purpose, labor Rapid development of
efficiency of labor is necessary to intensive small basic infrastructure in our Proper utilization of
will increase and industrial factories and country like roads and high this foreign
establish more ways, rail and water ways,
development technical schools, professions instead of telecommunication, water
assistance will
oriented attitude of colleges and capital intensive irrigation, electric supply, increase the pace of
the people will be training centers in industries shall have to ports, embankments, etc our development.
created. the country. be built up. shall have to be made.
 Solution of economic problems of Bangladesh
Poverty
Sound Planning Alleviation
Programmes
Innumerable helpless
and poor men and
Sound planning is women of Bangladesh
most essential for should be given loans
solution of and aid through various
economic problems government and non-
government
and rapid
development. organizations for self
employment.
Besides, Through this assistance
formulation of they will be able to keep
rural based themselves engaged in self-
employed occupations such
planning and as dairy poultry farming,
implementation are
live-stock rearing,
essential for cultivation of flowers and
development of our vegetables, establishment
rural economy. of handicrafts, small shops
etc.
Equitable
Improvement Sound
Distribution of
of Social Administrative
National
Environment Arrangements
Income
Our social
At present wealth is being Our administrative
concentrated in the hands
environment shall
system shall have to
have to be improved
of a few people of be made sound and
through expansion of
Bangladesh. As a result, efficient for solving
education and culture,
the number of poor people
social movement and
economic problems
and their level of poverty and to help economic
formulation of
are increasing. development.
appropriate laws.
The path of
Arrangement shall
development will be Proper understanding
have to be made for
equitable distribution
smooth with the and cooperation
removal of among different
of income and wealth
superstitions, administrative
through adoption of
religious fanaticism, divisions are to be
appropriate principles
adverse social rules increased.
of development.
and regulations etc.