Bangladesh

Bangladesh
Bangladesh has an agrarian economy with 32% of GDP coming from the Agriculture Sector. In recent years, the country is doing much better in some sectors, but the proper balance is required for achieving positive goals. Bangladesh has recently achieved significant growth of GDP. But, the problem also remains that the growth rate of GDP is dominated by agriculture while manufacturing is weak. Lack of democratic practice and corruption works as obstacles to achieving government targets. If the government is not successful in creating a favorable investment climate and investment does not match the savings rate, then the ability to achieve the targeted level of GDP growth will remain in doubt. To attract investment, the government should readjust the rate of interest and should create a political atmosphere that will be favorable for domestic as well as foreign investment. Policies that promote remittances would also be helpful to stabilize economy. With high population growth continuing to expand the economically active population and the simultaneous employment cuts in privatized industries, the labour market situation in Bangladesh is fragile. Relatively high rates of inflation combined with high levels of unemployment may lower real wages. To overcome these problems, the government should create job opportunities and should take initiatives to run industries. Within the policy of privatization, the government may take measures towards creating jobs and managing industries. Since the world economy is volatile, Bangladesh faces both risks and opportunities. Unless we can devise far-sighted strategies, we risk remaining marginalized in the increasing global flow of commodities, capital, information and technology.

To read a detailed labor market analysis for Bangladesh, download one of the following:
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Source:
BILS—
Bangladesh Institute of Labour Studies
House #02, Road#13, Dhanmondi R/A, Dhaka-1209
Tel:+88-02-8123869-70
Fax: +88-02-8123868
E-mail: bils@cgscomm.net
Web: http://www.bils-bd.org/

Data updated: December 19, 2003.

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