Attaining sustained GDP growth of 7.5pc within our reach: Mirza Aziz
Friday, 27 July 2007
FE Report
Bangladesh has the potential to join the ranks of middle-income countries (MICs) with the per capita gross national income (GNI) of US$875 by 2016, a World Bank (WB) report revealed Thursday.
But to reach that level, the country needs to attain sustained gross domestic product (GDP) growth rate of 7.5 per cent, the WB report titled "Bangladesh: strategy for sustained growth," noted.
The country's per-capita GNI was recorded at $520 in fiscal 2006-07.
Speaking at the report launching ceremony at a city hotel as the chief guest, Finance and Planning Adviser AB Mirza Md Azizul Islam said: "I do believe that attaining of a sustained GDP growth rate of 7.5 per cent is very much within the reach of the country."
"We have already initiated many of the second generation reforms, including domestic resources mobilisation, economic governance and trade reforms to accelerate the growth rate," he said.
Islam also termed the WB report as timely.
"It will help the government prepare for vision 2021 that has been initiated to ensure planned and sustained growth," he said.
Echoing the WB recommendations on trade liberalisation for materialising the MIC aspiration, the finance and planning adviser said: "I generally believe in trade liberalisation."
"But it is not synonymous with anti-export bias," he said categorically.
WB country director Xian Zhu in his welcome remark stressed that a rapid transition to the MIC status would demand a consistent political commitment.
"If average growth falls to three per cent rate seen in the 1980s, the MIC aspiration will have to wait for another five decades," he cautioned.
Senior WB economist Sandeep Mahajan presented the WB report during the function.
Bangladesh has necessary assets to achieve the rapid transition to the MIC status in the form of much improved economic fundamentals, success in implementing many first-generation reforms, a young rapidly growing labour force and an established entrepreneurial culture, the report revealed.
Despite the widely acknowledged and critical weaknesses in governance, Bangladesh has an impressive record of achievement, especially in harnessing sound economic and social policies to pioneering social entrepreneurship, the report said.
It also mentioned the successful management of three transitions - from agriculture to labour-intensive manufacturing, rural to growing urbanisation and closed economy to global integration. These will be the key to achievement of Bangladesh's MIC aspirations, it said.
Commenting on the WB report former Finance and Planning Adviser Akbar Ali Khan said: "This is the first time when the WB has acknowledged the country's achievement."
It, however, did not focus duly on the country's unemployment problem, he said. Rather, it has noted that the country's unemployment rate is only 4.3 per cent of the total labour force, which is far away from the reality, Khan added.
Dhaka University teacher MA Taslim also spoke at the WB report launching ceremony, which was moderated by WB Sector Director Sadiq Ahmed.
Bangladesh has the potential to join the ranks of middle-income countries (MICs) with the per capita gross national income (GNI) of US$875 by 2016, a World Bank (WB) report revealed Thursday.
But to reach that level, the country needs to attain sustained gross domestic product (GDP) growth rate of 7.5 per cent, the WB report titled "Bangladesh: strategy for sustained growth," noted.
The country's per-capita GNI was recorded at $520 in fiscal 2006-07.
Speaking at the report launching ceremony at a city hotel as the chief guest, Finance and Planning Adviser AB Mirza Md Azizul Islam said: "I do believe that attaining of a sustained GDP growth rate of 7.5 per cent is very much within the reach of the country."
"We have already initiated many of the second generation reforms, including domestic resources mobilisation, economic governance and trade reforms to accelerate the growth rate," he said.
Islam also termed the WB report as timely.
"It will help the government prepare for vision 2021 that has been initiated to ensure planned and sustained growth," he said.
Echoing the WB recommendations on trade liberalisation for materialising the MIC aspiration, the finance and planning adviser said: "I generally believe in trade liberalisation."
"But it is not synonymous with anti-export bias," he said categorically.
WB country director Xian Zhu in his welcome remark stressed that a rapid transition to the MIC status would demand a consistent political commitment.
"If average growth falls to three per cent rate seen in the 1980s, the MIC aspiration will have to wait for another five decades," he cautioned.
Senior WB economist Sandeep Mahajan presented the WB report during the function.
Bangladesh has necessary assets to achieve the rapid transition to the MIC status in the form of much improved economic fundamentals, success in implementing many first-generation reforms, a young rapidly growing labour force and an established entrepreneurial culture, the report revealed.
Despite the widely acknowledged and critical weaknesses in governance, Bangladesh has an impressive record of achievement, especially in harnessing sound economic and social policies to pioneering social entrepreneurship, the report said.
It also mentioned the successful management of three transitions - from agriculture to labour-intensive manufacturing, rural to growing urbanisation and closed economy to global integration. These will be the key to achievement of Bangladesh's MIC aspirations, it said.
Commenting on the WB report former Finance and Planning Adviser Akbar Ali Khan said: "This is the first time when the WB has acknowledged the country's achievement."
It, however, did not focus duly on the country's unemployment problem, he said. Rather, it has noted that the country's unemployment rate is only 4.3 per cent of the total labour force, which is far away from the reality, Khan added.
Dhaka University teacher MA Taslim also spoke at the WB report launching ceremony, which was moderated by WB Sector Director Sadiq Ahmed.