Bangladesh Economic Summary

BANGLADESH

Economic Freedom Score

25 50 75 100 free

Most Least free

World Rank:

130

Regional Rank:

28

53.2 This economy is not graded Freedom Trend

0

freedom is 53.2, B angladesh’s economicthan in thescorereflectingmaking its economy the 130th freest 2012 Index. Its overall score is 0.2 point better last year, improvements in business freedom and labor freedom that counterbalance a significant drop in trade freedom. Bangladesh is ranked 28th out of 41 countries in the Asia–Pacific region. Bangladesh continues the five-year move toward greater economic freedom that has brought it out of the status of “repressed.” The advancement in freedom has been accompanied by notable economic growth averaging 6 percent per year over the same period. Nonetheless, progress in reform overall has been uneven and deficient. The foundations of economic freedom remain fragile. Corruption and an inefficient judicial system undermine the rule of law. Weak governance and structural problems continue to constrain development. The inefficient regulatory regime is often heavily politicized, and policies needed to liberalize or sustain open markets have been undercut by considerable government interference in the economy. The underdeveloped financial sector impedes investment and the growth of a more dynamic private sector. BaCkGroUnD: Islamist extremist groups threaten Bangladesh’s democracy and pluralist traditions, but the current government, led by Prime Minister Sheikh Hasina Wajed, has taken steps to curb their activities. The opposition Bangladesh National Party fueled political and economic uncertainty in 2010 with street protests against a constitutional amendment to reverse the 15-year practice of holding national elections under a neutral caretaker administration. Bangladesh is one of the world’s poorest nations, and the majority of its people work in agriculture, though service industries now account for over half of GDP. Weak institutions, poverty, and too...