A country that started with $8bn GDP and touched the $324bn figure; which registered its per capita income around about $134 during the time of its inception has stretched the amount to nearly $1969, a country which, though, reached out to the bailouts of the International Monetary Fund and other lenders has managed the debts rather has transformed them into benefits; a country which has registered per se the second largest exporter of garment in the world and a country which seems to be an epitome of a progressive economy in south Asia and 41st largest in the world with a handsome position at the HDI, GPI and GGG, is not other than the erstwhile east wing of the land of the pure. Bangladesh has liberated itself twice.
Since its inception, it has been struggling with political upheaval like that of the ongoing one in Pakistan, but Dhaka has not pulled itself out of the socioeconomic trajectory which has ensured its rapid growth. Bangladesh by virtue of its long-term economic policies, exports-oriented manufacturing regime, disciplined fiscal policy and enhancing social security net has outpaced not only Pakistan but also India to a considerable extent.
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Understanding the matter better
A majoritarian view agrees to macroeconomic stability is a key to economic growth and development. Bangladesh has long maintained its fiscal policy in a disciplinary way to a have balanced fiscal regime if not a surplus one. Bangladesh has also maintained its current account in balance largely by adopting an export-oriented growth policy as seen in the case of the North East Asian countries through different land reforms as lucidly enunciated by Studwell in his work, How Asia Works: Success and Failure in the most Dynamic Region of the World.
Bangladesh’s garment and textile industries have properly maintained the balance of payment regime. Though some recent reports are revolving around unmasking Bangladesh’s plea for being bailed out, the man in the financial authority of Bangladesh has made it clear that the possible financial support is intended to be spent on backing and enhancing the resistance of the Bangladeshi economy.
Thus, the possible bailout should not be mistaken for supporting the imbalanced economy. It means that everything is okay in Bangladesh’s economy. Its export resistance has also been proved by the rise in Bangladesh’s economic growth by almost 3.3% in 2020, during the same time when India recorded a nearly 7% decrease in its economic growth. Srilanka defaulted just because of a widening current account deficit and rapidly depleting forex immensely triggered by the mounting trade deficit. Pakistan is facing the same dilemma even though India is also struggling with its trade deficit.
The most important sector in which Bangladesh has outpaced both India and Pakistan is the social sector. Bangladesh’s performance on all key social indicators has remarkably been well. Dhaka has secured 71st rank in Global Gender Gap 2022 prepared by WEF on the basis of four key indicators: Education attainment, health status, Political empowerment and economic participation. Pakistan stood at the second worst among all at 145 out 146 countries while India fell far away from Bangladesh ranked 134th.
Such an exalted position in Bangladesh has not been effortless but rather backed by a long-term revolutionary policy adopted by the government. Bangladesh has extended education to girls which have proved to be of immense importance. Educating women has brought down the accelerating population growth, early marriages and infant mortality rate among others. Women’s workforce participation in Bangladesh has left India with 30.4% in 2021 while India saw a nearly 6% decline from 26% to 20% during the last decade.
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The way forward
The growing women’s participation in the labor market has largely dragged them to the garment industry which has provided two-pronged benefits: improving women’s living standards and contributing to the mounting textile and garment exports thereby balancing the current account regime. Similarly, Bangladesh has recorded the highest life expectancy rate of 72 years in the sub-continent outpacing India with 68.6 years and Pakistan with 66.6 years.
The known secret behind such a remarkable performance of Bangladesh is its revolutionary reforms. Bangladesh has never let its political instability mess with its economic growth. Rather it made sure to keep itself on the long trajectory to progress and prosperity which is why its economy has increased nearly 250 folds in its fifty-year life. Bangladesh has outnumbered India in per capita income which has been recorded $1969 against India’s $1935 and Pakistan’s $1538.
Taking the discussion to its end, it is unequivocally made clear that the different performance measuring indicators starting from GDP to per capita income growth to social performance, Bangladesh has sat at the top of progress pushing India and Pakistan behind. This is so because Bangladesh has adopted a tightrope for fiscal discipline, preferred exports oriented manufacturing, enhanced agriculture and industrial growth and adopted key social reforms like women’s employment. Put more simply, Bangladesh has shielded its economy against macroeconomic challenges and has ensured social reforms. All this has made it able to outpace India as well as Pakistan and secure a glorious and progressed future for itself.
The writer is an English Literature and Linguistics graduate from NUML Islamabad. He is a Research Scholar and can be reached at abdulsamadkhanbannu22@gmail.com. The views expressed in the article are the author’s own and do not necessarily reflect the editorial policy of Global Village Space