Assignment on
Topic: Economic System of Bangladesh
Submitted To:
Jakowan
Assistant Professor,
School of Business & Economics.
Submitted by:
Shamsil Arefin
1112310155
Name of course: Introduction to Business
Course Code: BUS 1102
Section: D
Date of Submission: 2 March, 2023
Introduction
A society's organization and management of its resources to produce, distribute,
and consume commodities and services is referred to as its economic system. It
involves a complicated web of institutions, businesses, and a people working
together to produce and distribute resources within a particular society.
Economic systems can differ significantly between nations and regions andcan be
influenced by a variety of elements, including politics, geography,
history, culture, and technology.
Market economies, command economies, and mixed economies are the three
primary categories of economic systems.
In a market economy, supply and demand on a free market are the main factors
influencing the production and distribution of goods and services.
The production and distribution of products and services are under the supervisin
of the government under a command economy.
Economic system of Bangladesh
Like many other nations, Bangladesh has a varied economy with a significant role
for both the public and private sectors.
Which economic structure, however, is the most appropriate for the nation is still
up for discussion.
Capitalism: A capitalist economic system is one in which the means of production
are privately owned and products are produced a view to a profit.
In this system, the pricing and distribution of goods and services are determined
by the market.
Even if capitalism has been successful in encouraging development and innovatio
n in industrialized nations, Bangladesh may not be the best place for it.
A fully capitalist system can result in a concentration of wealth in the hands of a
select few, depriving many people of access to basic goods and services since the
country has a huge population and scarce resources.
Socialism Economy: Socialism is an economic system that places a strong
emphasis on government ownership of the equipment used in production, trade
and distribution of products and services.
Socialismthis system, the government has a big say in how the economy is run
and how
resources are allocated fairly. Socialism is an economic system that places a
strong emphasis on government ownership of the equipment used in production,
trade and distribution of products and services.
Socialism has been blamed for impeding innovation and growth as well as
creating economic inefficiencies, despite the fact that it may seem enticing.
Bangladesh's government has a history of corruption and bureaucracy,
which could make it more difficult to adopt a socialist system.
Mixed Economy: A mixed economy combines capitalism and socialism and allows
the private sector to function freely in some sectors while the government
governs others.
This system balances the advantages of capitalism and socialism while
simultaneously addressing their respective drawbacks.
The government of Bangladesh has established a mixed economy with a focus on
the pharmaceutical, textile, and agricultural sectors.
While the government offers support and regulations to ensure a fair
allocation of resources, the private sector is encouraged to invest in these
industries.
Examples in Practice
1. Bangladesh's textile sector is a shining example of the nation's diverse
economy. In addition to regulating working conditions and guaranteeing workers
receive fair wages, the government offers incentives to encourage private
investment in the sector.
2. Bangladesh's agricultural industry is another illustration of a mixed economy.
The government encourages private investment in larger farming enterprises
while simultaneously supporting small farmers by offering subsidies and credit.
3. Another illustration of Bangladesh's diversified economy is the pharmaceutical
sector. In addition to allowing private businesses to exist and compete in the
market, the government has put in place measures to promote the manufacturing
of necessary medications.
Conclusion
It seems obvious that a mixed economy is the ideal one for Bangladesh after
looking at the various economic systems and real-world examples. This approach
addresses the drawbacks of both capitalism and socialism while allowing for their
advantages. In addition to encouraging private investment and market
competition, the government also regulates the economy and ensures the
equitable allocation of resources.
