Exploring methods to maintain financial growth in Bangladesh

27 Oct 2020 11:01 AM
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Bangladesh's economy has been going right through an interval of rapid growth in the last decade. Bangladesh may be the 40th largest economy on the globe and 2nd most significant among the South Parts of Asia. The Center for Economics and Organization Exploration forecasted that Bangladesh is definitely the 24th largest economy within the next decade. The Bangladesh market possesses been witnessing an average economic growth of 7.39% for the last 5 years. Regrettably, the world economy is seriously damaged by the outbreak of coronavirus worldwide. It hampers usual economic activities that have a significant influence on people’s money and expenditure as well as on overall countrywide GDP.

As the World Bank projected, the developing output of South Asia will shrink by 2.7%. In addition, it projected that South Asia will call a GDP development of 2.7% where Bangladesh’s GDP growth will be just 1.6% in this season. But the good news is definitely that the ADB projected a 7.5% expansion rate in the fiscal year 2020-21 which started on July 1.

Bangladesh has some positive aspects which really helps it has the overall economy to grow faster. Bangladesh includes a population of over 163 million. A written report from the World Bank in 2019 projected a labour force of a total of 7,00,09,461. It helps Bangladesh to create products at an extremely low cost. An instant upsurge in foreign remittance as well helps Bangladesh economy. Relating to a Bangladesh Bank survey, the remittances in Bangladesh averaged $1255.91 million for go on 8 years and reached an all-time most of $1832.63 million in June 2020. The Ready-Made Garment (RMG) export earned over 10% of Bangladesh’s GDP and offered 84% of the country’s forex earnings in the 2018-19 fiscal years. The Bangladesh government aimed 8.2% growth level for the fiscal year 2010-21. Bangladesh must be more creative and mindful to attain the target.

Methods to maintain Bangladesh’s great economic growth

Development of human being capital: Population is an asset when it is skilled and educated. On the contrary, this is a burden when most of them happen to be unskilled and uneducated. Bangladesh includes a huge population but majorities have no nominal skill or education, which is necessary for any type of task. Bangladesh receives a huge amount of remittances each year, but the quantity will be much bigger if they have enough expertise and education. Bangladeshi personnel, who move outside, are usually paid less and frequently discriminated against for their insufficient expertise. Developing an education program made up of both conventional topics with technical know-how is essential to develop a skilled labor-power.

Incorporating youth into labor force: Relating to the US, Bangladesh has practically 20% of the population age ranges among 15-24 years. Normally, youths are more vigorous and imaginative which are essential for the prosperity of a country’s market. The federal government of Bangladesh needs to take proper guidelines to nurture the youths and make them for the future.

Infrastructural and technical development: Infrastructure and technology are several major factors for economic growth. Insufficient right infrastructure hurts the Bangladesh market. Bangladesh has simply three seaports, which are not more than enough for Bangladesh. Bangladesh in addition has very few airfields. Many elements of Bangladesh still not really linked to the capital plus some parts possess no supply of energy. These are not necessarily helping the economy.

Exploring the new sector of creation and reviving the older an individual: the RMG sector of Bangladesh contribute over fifty percent to Bangladesh’s foreign exchange. Bangladesh must explore innovative sectors and nourish the target to be an important contributor in foreign exchange as well as in domestic intake. Electronics and raw food are two potential sectors that can provide fortune for Bangladesh. Bangladesh once was very much well-known for its jute referred to as “golden fiber”. But over enough time, it gets unpopular and incompetent as a result of the federal government carelessness. The Bangladesh authorities must reinvest in this sector to regenerate this.

Solving the refugee crisis: Bangladesh is hosting practically 1.1 million Rohingya refugees since 2017. Bangladesh nearly spends $300 million every month for them. Although Bangladesh gets support from different countries and international businesses, this is simply not enough. It also hurts the local job industry as many refugees turn out illegally from camp and consider the work at an extremely low salary. The refugees likewise involved in several crimes that create public tension. Unless an effective solution comes out, it'll continue to hurt the local overall economy as well as national growth.

Protection against herbal calamities: According to Asian Creation Bank, Bangladesh annual suffers an average lack of about $3.2 billion for normal calamities like cyclone, flood, river erosion. The Bangladesh federal government needs to take measurements to protect the market against such calamities.

Reducing the dependency on single foreign markets: Bangladesh’s biggest trade companions are China and the USA. The current stalemate in the relations between China and the US very seriously hurts global market and also Bangladesh. Bangladesh needs to explore new markets, create joint ventures, encourage foreign investments, generate trade facilitating agreements to lessen the dependency, and create stability of trade. Bangladesh can employ the South Asian Association for Regional Cooperation (SAARC) for regional monetary communication, nonetheless, it needs great efforts to do that.

Ensuring the way to obtain energy: In today's world, energy is important to perform all the machines. So as to guarantee continuity in development, the federal government must ensure plenty of supply of energy. Bangladesh already found out many potential resources of energy solutions underneath, but insufficient technology and knowledge are affecting Bangladesh from extracting it.

Proper utilization of the Digital Bangladesh: So as to facilitate the growth, Bangladesh must use the online system to start its local industry to the foreign clients. It will help to produce a demand of Bangladeshi items outside.

Bangladesh has full probable to be always a major economic push on earth. But in order for doing that it needs to consider creating latest opportunities and deal with the upcoming problems to survive in this competitive environment marketplace and hold its positive economic growth.