Bangladesh: An emerging economy

In addition to the Millennium Development Goals (MDGs), Bangladesh has been doing very well in economic and social developments relative to its neighbours and context group.  It has a vibrant economy that achieved over 6.3 per cent GDP (gross domestic production) growth rate over the last six years.  It is the second largest readymade garments exporter in the world after China. Its exports increased, in monetary terms, from $10.5b in 2006 to $32b in 2014 and foreign remittance, from $5.4b in 2006 to $14.9b; foreign exchange reserves increased 7.6-fold from $3.4b in 2006 to $26b.  It also achieved a miracle in food production. Bangladesh, a chronic food-deficit country that spent billions each year just to import food from abroad, has now achieved self-sufficiency in food. Not only that, this year it exported food grains abroad. It is the 4th largest rice and fish producing country in the world. In fact, there has been a silent grassroots revolution in the agriculture sector and it increased its food production by 3.5 times in spite of the fact that its total cultivable land area has reduced.   Gone are the days of 'monga'--- starvation and famine each year, especially in North Bengal.  It has also increased its per capita income more than double to $1,314. In fact, its achievements in social and economic areas have been remarkable and no wonder, the World Bank recently upgraded its status to a 'low middle-income country'.  It is now looking forward to achieve its goal of a 'middle-income country' by 2021 and a prosperous country by 2041. However, if it becomes a middle-income country, it may face increasing competition, higher interest rate and rivalries as well.  Nevertheless, good news is Bangladesh has achieved rapid development with a 'humane face'--- income inequality is still within a limited range. Comparative to its neighbours and context groups, it is in a much better position.  No wonder, Wall Street Journal (WSJ) termed it as a 'standard-bearer of the South Asia'.

As per MDG-8, the development partners agreed to finance developing countries in achieving their MDG goals. They repeatedly promised that they would give 0.7 per cent of their GNI (gross national income) to the developing countries.  Unfortunately, they could come up only with around 0.29 per cent of their GNI that amounts to $135b only annually.  Out of this, 48 LDCs get between $38 and $42 billion a year.  As per UN Inter-governmental Task Force, to achieve SDGs (Sustainable Development Goals), it would require $5.0 to $11 trillion a year.  Only to eradicate poverty, it would require $66b a year, and to have healthcare and quality education for all, it would require $37b  and $42b respectively a year.  According to the ADB (Asian Development Bank), only to have adequate infrastructure, the Asian countries would require $8.0 trillion.  

From where will we get so much resource?   This will be a daunting task for the global leadership.  However, good news is, South-South countries are coming up with innovative ways of financing.  For Example, the $40b Asian Infrastructure Investment Bank (AIIB) and the $100b New Development Bank (NDB) of BRICS (Brazil, Russia, India, China and South Africa) states are likely to come forward.  In addition, allowing DFQF (duty-free, quota-free) market access, reduction of remittance transfer, reduction of cost of migration, return of illicit money transfer and increasing domestic resource mobilisation and technology transfer can go a long way in mobilising the much needed resource.  Besides, reallocation of resource away from defence expenditure to SDGs could also help.  According to the Stockholm International Peace Research Institute (SIPRI), in 2013 alone, the global community spent $1,747b on defence expenditure that did neither enhance nor guarantee human security and safety.  According to the Dag Hammarskjold Institute of Sweden, the number of violence has been increasing in spite of increasing UN Security Council resolutions, and threat of war and terrorism has not diminished either.  

Although development partners find it no difficult to put forward excuses for not enhancing their contributions to help developing countries or to meet their historical responsibility, the scenario is not all that dismal. It is believed that the global savings in private banks is around $23 trillion a year and if 20 per cent of it could be invested for SDGs, we could get around $5.0 trillion a year.  In addition, it is reported that nearly $400 trillion is floating in the business sector and therefore, the UN and global leadership are trying hard to entice business leaders to get involved in achieving SDG goals.  According to Amnesty International, only 85 persons in the world have wealth more than half of global population and if such wealth could be correctly redistributed, the transformative and robust goals of SDGs are not impossible to achieve.  Therefore, let us be hopeful.

REALISING DREAMS: Bangladesh economy was unstable and passed critical times in the past. Feeding the people and providing them with basic essentials of life used to be uncertain and challenging.  Good news is, those days of acute shortage of food or clothes are over.  Now the economy of the country is at a self-sustaining stage and if it progresses in the same fashion and is not obstructed by serious internal and external forces, Bangladesh is sure to achieve Bangabandhu's dream of 'Sonar Bangla' or 'golden Bengal', a prosperous, non-communal,  democratic, non-discriminatory, peaceful and just society where no one is left behind.  There is one lesson to learn from the countries those have achieved commendable success in Asia, such as Singapore, Malaysia, South Korea, and the People's Republic of China --- each of them is/was ruled by a stable government and the same political party for years.  Political stability has helped them in achieving their dream of economic and social prosperity.  Bangladesh is no exception.  Current political leadership and its stability have helped the country in achieving not only most of the MDG goals but also in turning it into a vibrant economy of growth and prosperity with a 'humane face'.  Like her father, Bangabandhu Sheikh Mujibur Rahman, the Father of the Nation, his daughter Prime Minister Sheikh Hasina has also a dream and vision.  She would like to turn Bangladesh into a 'middle-income country by 2021', the silver jubilee year of its independence. She won't stop there. She would like to turn it into a 'Prosperous Bangladesh by 2041'.  Her dreams are not only mere dreams. Bangladesh has already achieved the 'lower middle-income country status. The Prime Minister has infused all Bangladeshi nationals with her dreams.  Her bold decision to construct Padma Bridge mega-project with its own resources uplifted the confidence and spirit of Bangladeshi nationhood.  However, two things are indeed needed and these are: (1) good infrastructure (roads, railway, ports, airports, energy, Internet, computers, etc.), including knowledge-based technology (conducive rules, procedures and regulations, etc.) and secondly (2) quality manpower.  Concerted efforts are indeed needed to help improve them.  

Lee Kuan Yew of Singapore and Dr. Mahathir Muhamad of Malaysia had dreams and they achieved those.  Like them, Sheikh Hasina has dreams and she has challenged all Bangladeshis to achieve her dreams and this has created opportunities as well as challenges for all of us.  She is a 'doer' and is destined to achieve them.  Let us work together in collaboration and in partnership irrespective of party affiliations to help achieve her dreams that are also our dreams for a better and prosperous Bangladesh.   

Dr. A. K. Abdul Momen, Professor Emeritus, is a former Ambassador and Permanent Representative of Bangladesh to the UN.  

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