FE REPORT
The ambition to elevate Bangladesh into a trillion-dollar economy by 2034 fundamentally demands sweeping institutional reforms, as structural overhauls and good governance are indispensable for sustainable qualitative development, said eminent economist Biru Paksha Paul.
"Without ensuring the proper character of institutions, governance, and infrastructure, dreaming of rapid, China-like expansion is not justified," said Mr Paul.
"Becoming a trillion-dollar economy may be a necessary condition, but it is not a sufficient condition unless it ensures qualitative improvements in the standard of living," he added.
He made the remarks at a public lecture organised by the Reading Club Trust at Bangla Academy.
According to the economist, expanding the economy from half a trillion to a trillion dollars in merely eight years mathematically necessitates an uninterrupted average annual growth rate of 9.05 per cent.
However, he cautioned that the nation recently slipped into a sluggish trajectory, recording a growth rate of roughly 4.0 per cent amidst ongoing macroeconomic headwinds.
"An economy cannot abruptly accelerate to 9.0 per cent from this baseline without an extended period of gradual growth acceleration," he said adding that historical data shows that only China has sustained double-digit growth for 33 years following its entry into free market economy in 1978.
Drawing historical parallels, he noted that the introduction of a market economy in the early 1990s fostered healthy competition and technological revolutions, such as widespread mobile phone adoption, which significantly boosted national productivity.
Dr. Paul also recommended prioritizing qualitative improvements in living standards and per capita income over merely chasing numerical milestones like a trillion dollar target.
Furthermore, he strongly advocated controlling population growth while implementing sustainable social security measures, including the establishment of independent pension funds, to ensure genuine development.
Chairman of Reading Club Trust Arif Khan presided over the event.
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