Economic Development Key

Table of Content:

INTRODUCTION 4

PROBLEMS AND PROSPECTS 6

MACRO-ECONOMY (GROWTH, SAVINGS AND INVESTMENT) 8

Growth 8

Sectoral Contribution to Incremental Growth 9

Savings 9

Investment 11

CHALLENGES 14

Corruption 15

How corruption effects the economy 16

Latest development in the fight against corruption in Bangladesh 17

Food security and inflation are pressing concerns 18

Make economic growth more inclusive 19

Private sector driven economic development is the key 20

Regional integration 20

The bureaucracy needs transformation 21

Convert huge population as assets 21

Environment and climate change pose a serious development challenge 22

Developing agriculture system 23

Conclusion 25

A BRIEF HISTORY BANGLADESH MACROECONOMIC

Bangladesh is an agricultural country. With some three-fifths of the population engaged in farming. Jute and tea are principal sources of foreign exchange. Major impediments to growth include frequent cyclones and floods, inefficient state-owned enterprises, inadequate port facilities, a rapidly growing labor force that cannot be absorbed by agriculture, delays in exploiting energy resources (natural gas), insufficient power supplies, and slow implementation of economic reforms. Economic reform is stalled in many instances by political infighting and corruption at all levels of government. Progress also has been blocked by opposition from the bureaucracy, public sector unions, and other vested interest groups.

For higher GDP growth, investments in both public and private sectors will need to be accelerated. The prevailing political and economic stability has greatly encouraged investment in the private sector. The trend of foreign direct investment is very encouraging.

The government is committed to market economy and has been pursuing policies for supporting and encouraging private investment and eliminating unproductive expenditures in the public sector. A number of measures have been taken to...