Bangladesh has got it's independence from Pakistan in 1971 through a nine month long bloody war. Bangladesh was ruled by the unconstitutional power till 1990 and then came back into a democratic country with some interruptions. Up to 1990, the GDP growth of Bangladesh was well below potential. But in the mid 90s, the economy slowly emerged and there has been observed a shift form the agriculture-led development to manufacturing and services sector let growth Bangladesh has recently celebrated 50 years of its independence in 2021. The country crafted vision-2021 in order to mark the celebration which is mainly focused to achieve the middle Income country (MIC) status by the timeline. With a view to reaching the cherished and desire vision, the country formulated long term perspective plan 2021-2041.
The world bank classifies economic status of countries as: low income, lower middle income, upper middle income and high income countries. According to the method of measuring the status of middle income country by the world bank, a middle income country will have a per capital income between $1045 and $4125. based on the per capital gross national income in a country. Bangladesh achieved the middle income status in 2021. The present Government of Bangladesh is hopeful that the economic target of reaching Middle Income Country (MIC) status in 2026 by ensuring an annual 8% GDP growth.
Bangladesh has some challenges to fulfil the demands of achieving Middle Income country status. Because the political scene during the last few decades has been full of bitterness, animosity and violence. The is little energy left for fiving constructive views on the national issues in the parliament. For ensuring a booming economy, the government must have to create a stable political situation.
The full fledged industrialization is not possible without infrastructural development. Uninterrupted power supply globally inter-linked sophisticated financial market, skilled local labour force, smooth transportation, internationally recognized chain hotels, availability of specialized technical personnel and compliance, developed IT sector etc.
Providing governmental supports and other facilities, Bangladesh should make the country a manufacturing hub. Since it has a cheapest labour what is the basic criteria for establishing manufacturing company. Bangladesh should be considered as the destination of the multinational manufacturing companies. With the availability of low cost labour, government has to provide tax waiver for the initial production, less tax over the imported raw materials, equipment's even over their profits.
Inflow of foreign investment in any country is a prerequisite for the rapid development. From the employment generation to infrastructural development, increased efficiency of local labour force, uses of modern technology to increase inflow of foreign currency. The foreign investment plays a vital role in achieving the tag of a country of developed economy. By using favorable FI policy, Bangladesh can draw attraction to the foreign investors.
Exports and remittance are the two most important sectors for Bangladesh to be a middle income country, so it has to include more products in export baskets. Diversification in the product list may find the new market in the international business to increase the foreign earnings.
A majority of Bangladesh working in abroad are unskilled workforce. If we compare Bangladesh with India in the care of migrant labour, Indians particularly South Indians are more skilled than that of Bangladeshis in abroad and their earnings are also better. So government has to take a policy that with unskilled employees, skilled labour also be exported abroad that plays to increase remittance.
The domestic economy is the life-blood of any country. If the domestic market doesn't perform properly, the smooth development of a country won't be possible. This, government should give various tax benefits for the startup business and has to provide loan facilities to the local business firms with easy repayment system. Specially the small and medium entrepreneurs can contribute effectively in the national development. Their easy and innovative ideas create scope of employment in the rural and urban economy.
Revenue is one of the main incomes of a country from where it can spend money for its development works. As a citizen of a country, one is bound to pay the tax to the government. By giving better services the local government has to widen the range of taxation. Under utilization of fund for annual development programme is get another problems of Bangladesh. Institutional incapability, lack of policy, lack of transparency, corruption and lack of co-ordination between the government and organizations etc. are attributed as the reasons.
With the status of lower middle income country, Bangladesh is now economically more sustainable and stronger that ever before. If our government is able to overcome all obstacles of development, Bangladesh will reach the target of vision 2041.
BY
SK Saif Al Islam
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