bangladesh towards development 2015-2050

MacroeconomicsBangladesh - Towards Development 2015-2050Submitted To:

Md. Kamrul Hasan, Assistant Professor

Submitted By:

Samiur Rahman Sajal ID: UG01-34-13-044

Introduction

Bangladesh, a country with immense opportunities in multiple sectors, has a population of 164 million which includes a large number of skilled & semi skilled workforce. Bangladesh has survived the recent economic recession & was successful to hold a sustainable inflation rate during that period. This country has a better GDP growth rate than the other developing nations too.

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Bangladesh Strengths

Exellent geographic location. Relative stability of the country's

economic fundamentals.Higher mitigation capacity in responding to

natural disaster.Fairly good and expanding stock of both

physical and human capital. Constant supply and growth of

remittances from overseas worker.May 1, 2023 3

Bangladesh Weaknesses

Health and education indicators are low.High corruption.Economic and administrative cost of

security business is high.Income poverty is falling slowly even

though economic growth has picked up.Rapidly rising inequality in income and

wealth.

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Bangladesh Opportunities

Better remittances inflow opportunity.Attractive investment destination.Potential of turning into a major.Great opportunity in pharmaceuticals and

Tourism industry. Outsourcing nation prospect of diversified

agro-business sector.

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Bangladesh Threats

Terrorism and Sharp increase in commodity price.

Oil price hike. Cutback from globalization. Susceptibility to climate change Improper management of development

can accentuate poverty.

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Major growth assumptions

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Price of products and service to increase:

• Revolver and pistol• Motorcycle• Electronic battery-run motor vehicle• LED and LCD television• Car tires • Razor and Blade• Auto rickshaw/three-wheeler • imitation jewellery• SIM card etc

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Prices of products and service to decrease

• Onion, medicine, matchbox, • glucose, cocoa-coated chocolate, white

chocolate (cocoa-coated), • chocolate bar, sweet biscuit, wafer, toast,

jam, jelly, grease, • overcoat, car coat, cape, suit, jacket • blazer, artificial flowers, trouser, gents shirt

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Macroeconomic Perspectives in Budget

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The Government of Bangladesh has formulated the Perspective Plan (2010-2021) with the goal of elevating Bangladesh to a knowledge based and technology driven middle-income country by 2021. This is the first long term plan in the history of Bangladesh with elaborate programmers for development.

Bangladesh Budget 2015-2016 Circle

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Annual Development Programmed (ADP)

Bangladesh’s Annual Development Program (ADP) had been moving ahead slowly due to lack of coordination and proper policy guidelines. But from last few fiscal years ADP policies and implementation strategies are proving productive.

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Development Budget 2015-2016

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Vision 2050

• Light Engineering• Ship Building• Textiles and Clothing• Pharmaceuticals• Leather and Leather Products

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2050 focus

• One of the top 25th largest economies in the world

• Upper Middle Income Country (UMIC) with per capita GNI of around $4000

• One of the Economic Tigers in Asia• Accounting for around 1% of the world’s GDP

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Opportunities

• Agriculture sector is the single largest contributor to GDP.

• Crop production system is highly labour intensive and there is an abundance of labour supply in the country.

• Agriculture is the largest source of employment for skilled and unskilled labour.

• Favorable natural environment generally exists throughout the year for crop production.

• Wide range of bio-diversity exists for different crops.

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ROSTOW’s Model

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The Five Stages of Development• Traditional Society• Transitional Stage• Takeoff• Drive to maturity• High Mass Consumption

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Other’s Development Sector

• Ceramics• Frozen food• Electronics• ICT and Business Services• Life Sciences • Light Engineering

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Discuss the main constraints to the growth of SME finance in Bangladesh? • Lack of capital support• Absence of policy for transfer of modern

technology• Lack of marketing opportunities• Lack of exposure to international markets• Lack of adequate investments• High rate of interest on bank loans• Fierce competition:• Lack of skilled technicians and workers

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“THE END”

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