The Economy of Bangladesh, Booming?
What are the Greek words for economics?
The English word “economics” is derived from the Greek word oikonomia, which means “household management”. The word is composed of two Greek words: oikos, meaning “household”, and nomos, meaning “management” or “law”.
The term “economics” was first used by the ancient Greek philosopher Aristotle, who wrote a treatise on the subject called Oeconomica. In his treatise, Aristotle discussed the principles of household management, including how goods and services are produced, distributed, and consumed.
The modern definition of economics is much broader than Aristotle’s. However, the original meaning of oikonomia is still relevant to economics, as it emphasizes the importance of efficient resource consumption, how goods and services are produced, and how wealth is distributed.
The change in the GDP of Bangladesh
Economic development is one of the most important parts of a country’s growth, with the quantity of development defined by per capita income and GDP. Until the fiscal year 2019, Bangladesh’s economy performed well. From July 2018 to June 2019, the GDP rose by 6.9 percent on average from FY2011 to FY2019. In the fiscal years 2018–19, Bangladesh’s GDP expanded the fastest in the Asia–Pacific region. Poverty decreased from 48.9% in FY 2001 to 20.5 percent in FY 2019, while severe poverty decreased from 34.3 percent to 10.5 percent during the same period. The inflation rate has been reduced to 5.5 percent. Fiscal discipline has been maintained by maintaining the budget deficit at under 5% of GDP. The country earned a lower-middle-income classification in 2015 and satisfied all criteria for the first time.
The economic growth of Bangladesh
Bangladesh has been among the world’s fastest-growing economies in recent years, thanks to garment exports (RMG), remittances, and stable macroeconomic circumstances. As a result, even after the COVID-19 epidemic, Bangladesh saw a rapid economic recovery. All of these changes necessitate a shift in decision-making. Economic expansion in Bangladesh has provided job possibilities through a competitive corporate climate, improved human capital and a skilled labor force, efficient infrastructure, and a regulatory environment that has attracted private investment over the years. Diversifying exports outside the RMG sector, developing the financial industry, making urbanization more sustainable, and improving public institutions were other development targets. The aim is to reduce the disparity in opportunities between various regions and cities by bridging the infrastructural gaps, which also promotes accelerated growth.
Infrastructure development and expansion in Bangladesh
The overall infrastructure plays a critical role in Bangladesh’s economic growth. The design of a district-by-district Infrastructure Development Index (IDI) and the ranking of districts on the IDI imply that districts near the capital city have higher IDIs than districts further away. Bangladesh continues with the plan of being a developed country by 2041. This includes the mega-projects on its border, such as the Padma Multipurpose Bridge, Purbachal Residential Model Town, Legacy Tower, Sheikh Hasina International Cricket Stadium, Dhaka Elevated Expressway, and so on.
In the near future, addressing Bangladesh’s susceptibility to climate change and natural disasters would help Bangladesh continue to build resilience to potential shocks. A shift toward green growth would help ensure the long-term viability of development results for future generations.
In Bangladesh, unemployment became a strength.
As we have a vast population, it is hard for everyone to get a decent job, even though they dream about it. The uneducated are adding to the unemployment rate as time passes. In 2009, the unemployment rate was about 13%, but we understood that it could be used as a strength as our infrastructure grew. Many people start getting not only a decent job but a minimal source of income. So eventually, the unemployment rate will come down to 5.40% in 2022.
Can we continue the economic growth of Bangladesh?
The issue now is whether Bangladesh will maintain its excellent economic performance. As things stand, the country’s prospects are bright, but there are hazards that officials must consider. Bangladesh recently asked the International Monetary Fund (IMF) to start negotiations for a loan, becoming the latest South Asian nation to knock on the doors of the international agency, Reuters reported, citing a local newspaper. But our finance minister confirmed that there is nothing to worry about. The economy was “in no way in trouble,” as we do not know where this will lead us and our economy. Is our economy taking off, or is this just a simple loan?
A call for economic reform
Looking at the current situation, we cannot say that growth is visible because many changes have occurred in the last few months. Among them are the rise in fuel prices, the VAT imposed on electronic machinery, and many more. All these will also cause problems for the middle and lower middle classes. And in this process, the myth becomes true again: rich people become more prosperous, and poor people suffer more and more. This is not where we picture our country, and this is not expected from us, and if this keeps going on for an extended period, we will face the fall, the fall no one wants, the fall that we did overcome many years ago, and we will go back to the same spot again, and no one wants that.
