Bangladesh has been identified as “an oasis of growth” and “a country of immense opportunities” by one of Asia’s leading bankers. Political Editor Nick Powell looks at how the country keeps moving forward despite all the international economic challenges.
Bangladesh has stood out for its resilient economy, which grew by more than 17% in three years despite a global pandemic and the economic shocks which have gripped so much of the world. International banker Benjamin Hung, who’s chief executive of Standard Chartered for Asia, was in the capital Dhaka recently to take a closer look at what’s being achieved in what he called “an oasis of growth”.
Mr Hung identified continued investment in infrastructure as a crucial factor, giving the example of the recent completion of the Padma River Bridge, a domestically-financed project that has transformed transportation for much of the country and its neighbours. The Future of Trade report from his London-based bank has described Bangladesh as a hyper-growth market, rapidly progressing towards becoming a major global trade partner.
From 2010 to 2020, Bangladesh achieved the world’s highest cumulative GDP growth. In a decade and a half, it lifted more than 25 million people out of poverty. Last year, the UN confirmed that Bangladesh would graduate from the least developed country category by 2026. It’s a rare achievement and all the more remarkable for what was the second poorest country in the world at independence in 1971.
It’s a story that’s set to continue, with the Asian Development Bank forecasting GDP growth of 6.9% in 2022 and 7.1% in 2023. That involves growing new sectors of the economy to match the success of what’s been achieved in established industries, such as garment manufacturing. The Prime Minister, Sheikh Hasina, has spoken of laying the groundwork for a dynamic technological sector.
“We are establishing universities in every district of Bangladesh and technical and vocational institutions in every county”, she said. “We are encouraging our young people to innovate rather than imitate. We want our young people to be entrepreneurs and give a high priority to start-ups”.
The high proportion of young educated people is one of Bangladesh’s advantages. The median age is 28, compared to 38 in both China and the USA -and 44 in the European Union. The country is also leading the way in dealing with climate change, both at home and abroad, calling on all the countries of the world to meet their responsibilities.
Sheikh Hasina says her government has mainstreamed climate change in its national development policies. “A large chunk of our development budget is channelled into addressing climate change”, she said. “Had it not been impacted by climate change, our GDP could have grown at the rate of 10% plus for decades, fulfilling the development aspirations of 165 million people. Bangladesh is not responsible for climate change, so it is our right to seek preferential and unconditional access to green climate technologies”.
One area where Bangladesh has lagged until now has been in foreign direct investment. But another London-based international bank, Lloyds, has argued that its strategic geographic position, natural resources, strong domestic consumption, private sector-led growth, strong foreign currency reserves and recently simplified laws for foreign investors make Bangladesh a compelling candidate for investment.
Global awareness of Bangladesh’s economic prowess is too often still confined to the garment sector. It is the second largest in the world and continues to see 25% growth but other exports are expanding. The pharmaceutical industry now exports to 42 countries and other forms of manufacturing are on the rise. It’s a success story that the world needs to notice.
Bangladesh has stood out for its resilient economy, which grew by more than 17% in three years despite a global pandemic and the economic shocks which have gripped so much of the world. International banker Benjamin Hung, who’s chief executive of Standard Chartered for Asia, was in the capital Dhaka recently to take a closer look at what’s being achieved in what he called “an oasis of growth”.
Mr Hung identified continued investment in infrastructure as a crucial factor, giving the example of the recent completion of the Padma River Bridge, a domestically-financed project that has transformed transportation for much of the country and its neighbours. The Future of Trade report from his London-based bank has described Bangladesh as a hyper-growth market, rapidly progressing towards becoming a major global trade partner.
From 2010 to 2020, Bangladesh achieved the world’s highest cumulative GDP growth. In a decade and a half, it lifted more than 25 million people out of poverty. Last year, the UN confirmed that Bangladesh would graduate from the least developed country category by 2026. It’s a rare achievement and all the more remarkable for what was the second poorest country in the world at independence in 1971.
It’s a story that’s set to continue, with the Asian Development Bank forecasting GDP growth of 6.9% in 2022 and 7.1% in 2023. That involves growing new sectors of the economy to match the success of what’s been achieved in established industries, such as garment manufacturing. The Prime Minister, Sheikh Hasina, has spoken of laying the groundwork for a dynamic technological sector.
“We are establishing universities in every district of Bangladesh and technical and vocational institutions in every county”, she said. “We are encouraging our young people to innovate rather than imitate. We want our young people to be entrepreneurs and give a high priority to start-ups”.
The high proportion of young educated people is one of Bangladesh’s advantages. The median age is 28, compared to 38 in both China and the USA -and 44 in the European Union. The country is also leading the way in dealing with climate change, both at home and abroad, calling on all the countries of the world to meet their responsibilities.
Sheikh Hasina says her government has mainstreamed climate change in its national development policies. “A large chunk of our development budget is channelled into addressing climate change”, she said. “Had it not been impacted by climate change, our GDP could have grown at the rate of 10% plus for decades, fulfilling the development aspirations of 165 million people. Bangladesh is not responsible for climate change, so it is our right to seek preferential and unconditional access to green climate technologies”.
One area where Bangladesh has lagged until now has been in foreign direct investment. But another London-based international bank, Lloyds, has argued that its strategic geographic position, natural resources, strong domestic consumption, private sector-led growth, strong foreign currency reserves and recently simplified laws for foreign investors make Bangladesh a compelling candidate for investment.
Global awareness of Bangladesh’s economic prowess is too often still confined to the garment sector. It is the second largest in the world and continues to see 25% growth but other exports are expanding. The pharmaceutical industry now exports to 42 countries and other forms of manufacturing are on the rise. It’s a success story that the world needs to notice.
