Bangladesh marks 50 years of its independence.
The independence was earned through
a hard-fought bloody war against Pakistan in 1971. The golden jubilee of independence
is the biggest milestone for the nation to celebrate. The country and its people have
repeatedly overcome hurdles after hurdles to become a South Asian powerhouse.
Today, the country’s economic performance is often defined as the “Bangladesh
Surprise.” The United Nations’ announcement of graduating Bangladesh to a
“developing country” from a “least-developed country” has added a time-befitting
dimension to the milestone celebration. Kudos to the people of Bangladesh!
Bangladesh’s journey in the post-independence period was tough. The task of
rehabilitation and reconstruction after independence was overwhelming. The rebuilding
process took-off under the stewardship of its founding father Bangabandhu Sheikh
Mujibur Rahman. Bangladesh’s development journey was derailed because of turmoil
in the form of assassinations, coups, counter-coups and military rule. The major
derailment happened when military dictators grabbed state power and ruled for around
15 years, after the assassination of Bangabandhu Sheikh Mujibur Rahman on August
15, 1975.
Since 2009, the country witnessed an economic turnaround guided by prudent macro-
economic and fiscal management. The growth has been inclusive accompanying major
socio-economic and human indices. Fifty years into the journey, Bangladesh now is
considered as a role-model for other developing countries.
Transforming into a tiger
Bangladesh inherited a war-hit poor economy in 1971. The country started its journey
with an empty coffer. Due to two decades of Pakistani colonial exploitation, the
economy was stuck in the vicious cycle of poverty. Despite limited resources,
Bangladesh has made spectacular economic progress over the last five decades. The
GDP growth rate has reached an impressive record level in the latest decade. Per capita
income has risen steadily. Its poverty slashing performance is among the best in the
world. The country has achieved near self-sufficiency in food production for its 170
million population. The country now even shoulders the burden of the world’s largest
refugee population of over 1 million Rohingya fleeing persecution in neighboring
Myanmar. It has become an exemplary export powerhouse.
Gross Domestic Product (GDP) growth rate
Bangladesh’s GDP growth rate was -5.48% in 1971 and 8.15% in 2019. As the covid-19
pandemic hit the economy like the rest of the world, the GDP stood at 5.2% in 2020.
Per Capita Income
Since independence in 1971, Bangladesh has been consistently improving its economic
growth trajectory and significant economic indicators. Bangladesh’s per capita income
was $134 when it became independent and in 2020 it reached to $2064.
Diminishing poverty
Economic development achieved over the time, has impacted the social lives of the
population positively on many fronts. Share of population below the poverty line had
declined from more than 80% in the early 1970s. Inclusive growth policies, firm fiscal
management, domestic and overseas employment generation, and broad-arching social
security program have resulted in reduction in both moderate and extreme
poverty. The poverty rate in 2019 was 20%, extreme poverty was nearing single digit, to
10%. The country will halve its poverty rate by 2030.
Export earning
Bangladesh became notable in South Asia for its successful export-led development
model. Export earnings have heavily contributed to Bangladesh’s economy since the
1980s. Bangladesh’s exports have risen by around 80% in the past decade, driven by the
booming garments industry. The total export earnings for FY2018-19 stood at $40.5
billion. Currently, Bangladesh is the second largest global apparel producer. The
economy is diversifying. Pharmaceuticals, basic steel, cement, ceramic and various
other industries have potential to flourish.
Foreign currencies reserve
Bangladesh’s foreign exchange reserves reached a new record of over $43 billion at the
end of the year 2020. To put it in context, the amount is sufficient to pay import bills for
over 10 months. Remittance inflow plays a vital role in boosting the foreign exchange
reserves. The central bank and the government have also relaxed the process of sending
money from abroad and given incentives to the remittance senders. Surplus in the
overall balance also helped to maintain the foreign exchange reserve up.
Investment
For Bangladesh, both public and private investments have been instrumental to
stimulate economic growth. Investment to GDP ratio was 31.6% in FY 2018-19, out of
which 23.4% came from the private sector and only 8.13% from the public sector. From
1980s, government of Bangladesh shifted its policy-strategy and open up different
sectors for private as well as foreign investment. In recent years, the private sector
investment contributed almost 75% of the total investment. In order to increase
domestic and foreign investment, the government of Bangladesh has formulated
investment friendly policies, acts and laws. It is also focusing on enhancing Public
Private Partnership (PPP) programs and building 100 large industrial parks which are
being popularized as “Economic Zones.” Other functional areas of investment have
been power sector, communication infrastructure and digitization.
Foreign Direct Investment
In 1971, Bangladesh started receiving foreign direct investment (FDI). In 1972
Bangladesh received $90,000 FDI, and in 2019 Bangladesh received a record $3.61
billion FDI.
Agriculture and food security
Due to internal displacement during the War of Liberation in 1971, Bangladesh’s
agricultural sector severely suffered and food production and supply chain faced
complete breakdown. In 1972, Bangladesh prioritized agriculture sector and rural
economy to ensure food security for its people. In 2021, the country achieved self-
sufficiency in food. The agricultural sector recorded gigantic growth in terms of food-
grain, fish, poultry, and meat production. In 1972, total food-grain production was 9.9
million metric ton and in 2020 total food-grain production reached 45.4 million metric
ton. Bangladesh is the fourth largest rice and third largest freshwater fish producing
country in the world.
Industry
During 1972–1980, Bangladesh pursued an import-substituting industrialization
strategy aiming to safeguard the country’s infant industries. Over recent years, the
share of the manufacturing sector in GDP increased from 4% in 1972 to 18% in 2019,
and the share of the non-manufacturing industry increased from 2% to 11% during the
same period of time. The industrial sector reform in 80s and 90s helped Bangladesh
achieve the current level of progress in manufacturing sector. To accelerate the
industrial boom, Bangladesh government took an initiative to set up 100 Economic
Zones.
Service
The Bangladesh economy is dominated by the services sectors. Over the years, share of
the service sectors increased to 56%. During last 50 years, Bangladesh economy
experienced a significant decline in agriculture sector employment and rapid increase in
industry and service sectors employment growth. Between 1980 and 2010, the service
sector recorded steady growth of 3.6% to 6.7%.
Infrastructure
In 1971, the Pakistani forces crippled Bangladesh’s infrastructure by strategically
destroying its all communication, socially-valuable and industrial infrastructures.
According to an estimate of World Bank, 4.3 million houses were destroyed only in the
rural areas. Over the fifty years, Bangladesh has consistently invested in infrastructure
development from housing to communication infrastructure to industrial infrastructure
to water supply, solid waste management, electricity. Bangladesh’s high growth
trajectory is the result of heavy public spending on mega infrastructure development
project such as Padma Multipurpose Bridge, Bangabandhu Tunnel, and Rooppur
Nuclear Power Plant are notable.
Access to electricity
Bangladesh has witnessed a strong headway in terms of access to electricity in fifty
years. In 1991, the access to electricity was 14% and in 2021 it reached 99%.
Education
Bangladesh has made spectacular progress in human development front over the last
five decades. The country has been implementing well-devised plans and channeling
resources to enhance access of education. One major success has been the achievement
of the goal of universal enrolment at the primary level. A significant decrease in school
dropout rate of 18% currently is another milestone. Gender parity was achieved at
primary and secondary education ahead of the Millennium Development Goal (MDG)
Targets. The country’s literacy rate has risen to 74.7% in 2019 from 26.8% in 1974.
Health
Bangladesh health sector has witnessed a silent revolution in the last five decades.
Substantiated with policy interventions, Bangladesh has successfully halved infant
mortality and cut maternal mortality rate by 75%. Moreover, the total fertility rate has
brought down to 2.04 in 2020 from about 7 in the 1970s. Bangladesh has been
applauded as an example of ‘good health at low cost’ in 2011. Vibrant presence of both
public and private healthcare interventions, along with NGO interventions, catalyzed
the transformation.
Life expectancy
In the founding year of Bangladesh, the life expectancy was 46.6 years. In 2020, the life
expectancy is 72.6 years.
Maternal and child mortality ratio
Maternal mortality ratio (MMR) in Bangladesh has declined by 75% over the five
decades. The maternal mortality ratio was 600 per 100,000 live births in 1975 and 574 in
1990. In 2017, the MMR for Bangladesh was 173 per 100,000 live births. Bangladesh
has been successful in terms of bringing down infant mortality ratio drastically. In 1973,
the infant mortality ratio was 167 per 1000 live birth and in 2020, the ratio brought
down to 21 per thousand live birth.
Immunization
Immunization is a very significant health sector indicator for any country in the world
and Bangladesh is a global success story and leader in this indicator. Bangladesh has
officially initiated Expanded Program on Immunization (EPI), a global immunization
effort in 1979. In the year 1985, the vaccination coverage was 2%. As of September
2019, Bangladesh has immunized 38 million children since 2003. Bangladesh is a polio
free country since 2006 and has eliminated the neonatal tetanus threat.
Gender parity
Gender parity in Bangladesh has improved across all sectors due to greater
participation of women in socio-economic and political activities. Bangladesh has
secured the first position in gender equality among South Asian countries for the second
consecutive year at the Gender Gap Index. Bangladesh has closed 73% of its overall
gender gap, according to the Global Gender Gap Index 2020. During the period of
1996-2017, the national rate of female labor force increased from 15.8 to 36.3%, which
is higher than the South Asian average of 35%.
Disaster resilience
Bangladesh has the world’s largest river delta system which is vulnerable to climate
change. Bangladesh has experienced six major floods and five cyclones since 1970. In
the past fifty years, Bangladesh has demonstrated a high level of adaptability in
adopting existing technologies to reach out to people. Bangladesh utilized satellite
imagery to learn the severity of the storm in 2007. The country has also developed new
types of unique cyclone shelters where people can take shelter.
Digitization
Bangladesh has made immense strides in technology in a number of sectors such as
telecommunication, internet connectivity and speed, digitization, and media. The
government’s promise of Digital Bangladesh, since 2009, has translated into huge ICT
progress.
Satellite launching
On May 12, 2018, Bangladesh entered the space era with the successful launching of its
first satellite ‘Bangabandhu-1’. With this technological feat, Bangladesh became the
57th nation to have its own satellite in outer space.
Milestone recognitions
LDC graduation
Bangladesh received the recommendation on graduation from the least developed
country (LDC) status by the UN’s Committee for Development. In February 2021,
Bangladesh fulfilled all three criteria to graduate from a LDC to a developing country,
for the second time since 2018. The UN would recommend Bangladesh’s graduation by
2026. Bangladesh has been on the list of LDC countries since 1975 when the country’s
economy was still recovering from the devastating Liberation War of 1971.
Middle-income bracket
In 2015, Bangladesh became a lower-middle income (LMC) country from being a low-
income country, according to the World Bank’s classification of countries. Rising per
capita income pushed the country out of the LMC bracket for the first time since its
independence in 1971. Bangladesh is aiming for the higher middle-income status by the
year 2021.
MDG achievement
Bangladesh has been recognized as one of the role-model for emulation for other
developing nations in implementing the Millennium Development Goals (MDGs).
Bangladesh’s achievements were remarkable in the area of poverty alleviation, food
security, primary education, mortality ratio, immunization coverage, and tackling
communicable diseases.
SDG headway
Bangladesh was an active participant in formulating the 2030 Global Development
Agenda (SDGs). Since the declaration of SDGs, Bangladesh has embraced the SDGs
through inclusion of the 17 Global Goals into its National Development Plan. The SDGs
have been included in the national plans – such as the 8th Five Year Plan (8FYP), the
Delta Plan 2100 and the Perspective Plan 2041.
Concluding remarks
Fifty-years into its independence, Bangladesh has many milestones to celebrate. The
country is now well placed to strive for a poverty free and advanced economy by 2041.
The challenges are steep but not insurmountable. Bangladesh already has a strong track
record that shows how strong leadership, sound policymaking and determined efforts
can take the country forward. The ethos of equity and justice, the underlying principles
of the Liberation War, ought to be the guiding principles for crossing the milestones of
its upcoming journey.
