Bangladesh is marching forward. This statement is heard often, both at home and abroad. In fact, it is a very important statement. The reality that this simple statement makes us proud and that Bangladesh's advancement is internationally recognized and acclaimed. In fact, Bangladesh has now reached an unprecedented height in terms of socio-economic progress. Also, the country's development-related circumstances are, by and large, solid and conducive to further progress.
In the early years of independence since 1971, a human-centric, justice-assuring development pathway was being initiated under the leadership of Bangabandhu Sheikh Mujibur Rahman. But all of that changed after August 1975, following the heinous act of killing Bangabandhu by the anti-liberation national and international forces. A long military rule followed, at times in the guise of a sort of democracy.
In this period, the writ of the market economy was facilitated to gradually penetrate more and more. Towards the end of the 1980s, the country entered into the age of neo-liberalism by contracting a loan under the World Bank-IMF led structural adjustment program. However, its implementation became vigorous with effect from 1991, after the re-establishment of democracy. Since then, neo-liberalism has continued to be the ruling paradigm in the country. Basically, this paradigm consists of the private sector leading the economic process under unfettered free market conditions. This paradigm gradually gathered strength in Bangladesh.
However, during 1996-2001, the then Awami League Government started providing a substantial subsidy to agriculture, ignoring the pressure of the World Bank, other international funding agencies, and bilateral development partners against the policy. As a result, agricultural production, the production of food grains, in particular, increased significantly and food self-sufficiency at the national level was more or less achieved by 2000.
The average annual gross domestic product (GDP) growth rate was 5.6 percent during 2001-02 to 2008-09 fiscal years. But, after that, it accelerated and was above 6 percent every year from 2009-10 to 2016-17, and above 7 percent in the last two years. Per capita income rose to $1,602 in 2016-17, while it was merely $475 in 2005-06 and $378 in 2001-02. In the meantime, Bangladesh has earned the status of a low middle-income country. But the country is still in the category of least developed countries (LDCs).
Generally, three conditions have to be fulfilled to graduate from the LDC status. The United Nations Development Committee meets once in three years to decide as to which LDCs have fulfilled the conditions to enter into the process of moving out of the LDC status or are ready to move out. If an LDC fulfills the conditions twice in succession, then it can get out of the status in another three to four years.
Bangladesh has got the nod in the March review meeting of UNCPD fulfilling all three conditions (human development index, fragility index and per capita income). Therefore, Bangladesh has entered the process for the graduation of the economy from LDC to developing nation status. If the result is the same in the next review in 2021, the country can graduate from the LDC status around 2024. But, if Bangladesh wants, it can on its own shake off the tag in 2021. I strongly suggest that Bangladesh takes the latter step.
A basic reason behind the significant increase in the GDP growth rate and enviable achievements in social and other respects since 2009 is essentially the conducive policy regime and other facilities created by the government on the one hand and the efforts, within that framework, of the farmers, farm workers, industrial workers, entrepreneurs, managers and all others concerned, on the other.
On the basis of available data, Bangladesh has achieved self-sufficiency in food production at the national level. The country is now, respectively, the third and fifth largest producer of fish and vegetables in the world. Significant improvement has been achieved in the rural economy outside of agriculture as well. Rural industries and other enterprises are coming up all around rural Bangladesh.
Progress is also taking place in the industrial sector. The industry now accounts for 32.48 percent of the GDP. Readymade garment (RMG) is the leading sector. With a view to accelerating and decentralizing industrialization and expanding employment, special economic zones are now being established in different parts of the country, under both public and private sectors.
The foreign currency reserve has continued to increase, breaking records every year. It was $32.5 billion on April 19, 2017. Remittance has declined somewhat on an annual basis recently. Yet, it was $12.8 billion in 2016-17.
There is a strong sign of recovery as there has been a 12 percent increase in the first six months of 2017-18 compared to the same period of last year. Export earnings have been increasing every year and the total annual figure was $34.3 billion in 2015-16. Inflation has been more or less under control during the past several years. In 2016-17, the average inflation rate was 5.44 percent (preliminary estimate), which is okay for a fast-developing country like Bangladesh.
A very significant increase has been achieved in electricity generation. The highest electricity generation was 3,003 megawatts in 2000-01 and 3,812 megawatts in 2005-06. But, given the Government's special attention, electricity generation has grown fast since 2010 and in 2016-17 reached 14,000 megawatts.
In keeping with the current government's "Vision 2021," to establish a digital Bangladesh, a significant progress in this regard has already been achieved. In fact, well-functioning digital information centers have been set up at the union (the lowest administrative unit) level around the country.
In relation to various social indicators concerning education, health services, poverty reduction, child and maternal mortality etc., enviable improvements have been achieved. In several respects, Bangladesh has done better than all other South Asian countries and also compared to most of the world's other developing countries. Poverty ratio was almost 50 percent in 2000 and 40 percent in 2005. By 2016, that went down to 24.3 percent. The extreme poverty ratio was down to 12.9 percent in 2016 from 25.1 percent in 2005 and 34.5 percent in 2000. As of 2015, life expectancy at birth was 71 years, which was 64 years in 2000 and 56 years in 1990-91.
Significant progress has also been achieved in education, both for males and females and dropout has been significantly reduced. The contributing factors to the progress in female education include stipends provided on a large scale by the government and scholarships provided from the Prime Minister's Education Assistance Trust to girl students. Again, at the beginning of each academic year on Jan. 1, the government has been distributing textbooks to all students up to the 10th grade. In 2017, a total of 360 million books were distributed. There has also been a notable expansion in vocational education and training.
The present government is trying to ensure primary healthcare services for all citizens. There are public hospitals and community clinics at sub-district and union levels throughout the country. But, there is a shortage in the number of doctors and health professionals in rural areas.
The Global Gender Gap Report 2016 of the World Economic Forum has shown that Bangladesh is the most successful country in South Asia in promoting gender equality. Globally, Bangladeshi's position is 64th among the 145 countries included in the Report.
The decision to construct a 6.15 kilometer-bridge on one of its major rivers, the Padma at a cost of about $3 billion, with own resources has been courageous and national dignity-enhancing. A significant progress has been achieved in the implementation of the project.
There are a few more high-profile achievements of the current Bangladeshi government, led by Sheikh Hasina. The long outstanding land boundary issue between Bangladesh and India was resolved with the Land Boundary Agreement in June 2015. Also, the maritime boundary demarcation issue between Myanmar and Bangladesh and between India and Bangladesh, outstanding for a long time, was resolved through the international legal process, with significant favorable outcomes for Bangladesh.
Since Aug. 25, 2017, Bangladesh has taken in some 700,000 Myanmar citizens, the majority of who are Rohingya Muslims, as they fled persecution in their own country. They were allowed to enter Bangladesh at the initiative of Prime Minister Sheikh Hasina. This act reflects compassion and humanitarianism of high order and has rightly been acclaimed by the global community. Another 300,000 Rohingya had already been living in Bangladesh. There are, therefore, a total of about 1 million Rohingya refugees in Bangladesh now.
In order to help them return to their own country, an agreement has been signed between the Bangladesh and Myanmar. For an effective implementation of the agreement and to ensure that the Rohingya live peacefully and with dignity when they return, and that their minimum basic needs are met during the period they will need to stay in Bangladesh, effective involvement of the U.N. and influential countries of the world, including Turkey, is necessary for the Rohingya issue.
A Gallup Poll taken in September 2015 finds the people of Bangladesh to be the most hopeful about future, among the countries surveyed. In my judgment, Bangladesh's economy has now reached a level of development that it can take off to a higher development trajectory and march ahead along that pathway at a faster pace on a sustainable basis.
In any country or economy that is moving forward, there may be some problems persisting from the past and other problems may newly arise from time to time. Again, there are other issues concerning the implementation of sustainable development. These must be identified and appropriately addressed to ensure an accelerated and sustainable march forward.Bangladesh needs necessary skill development to consolidate and accelerate socio-economic progress. More focused and effective steps are also required to develop adequately sector-wise needed skills.
The country has so far been immensely successful in controlling terrorism and violence. However, such anti-social elements may lie low now, looking for opportunities to increase their capability to strike whenever opportunities arise. These threats must be identified and rooted out. The government is aware and active regarding what is needed to be done in relation to banking sector reforms, infrastructure development, concerted efforts in combating global climate change and particularly its adverse impacts on Bangladesh, resolving water issues and timely implementation of the national budget. There is no room for complacency, although significant socio-economic progress has been achieved. Complacency leads to negligence and dereliction of duties. Also, the identification of problems and their resolution suffer. Therefore, complacency and negligence must be consciously avoided.
* Bangladeshi economist, development thinker and practitioner