Question

Economic development in Bangladesh

Explain how the liberalization program in the 1990s enabled Bangladesh to start climbing the ladder of economic progress. What are the main lessons here that can be applied to economic development in other nations?

Answer 1

After the liberation in 1971 ,Bangladesh had to struggle to solve its internal affairs ,political problem as well as poverty.In mid 1980,s with the help and inspiration of global economic people  ,Bangladesh started structural reform program which led to globalisation in Bangladesh.So globalisation started in 1980 and continued throughout 1990,s.In 1990 the effect of globalization on the economy and the lives of the people was much which led to socio economic progress.So in 1990's there was faster growth and reduction in poverty.GDP grew at 4.8 % in 1990.But there was inequality of income.Growth accelerated and poverty declined.Within 1990, the readymade garment sector became the leading industry in Bangladesh which exported garments in the world.The development of the readymade sector increased the demand for  the services in other sectors.The agricultural sector , production of rice increased significantly and that led to economic growth.Trade liberalization was an important policy followed by Bangladesh.Employment increased in the garment sector.The first impact of trade liberalization fell on prices of goods and services produced and consumed by the poor.Due to the rapid liberalization program the economy grew at a faster pace and fall in incidence of poverty is highly commendable.

Other nations can follow trade liberalization like  Bangladesh which has been one of the major policy reforms in Bangladesh.The first impact of trade liberalization fell on prices of goods and services produced and consumed by the poor.Poverty alleviation programs can also be followed to reduce poverty.Globalization changed the economic world of Bangladesh. Much importance should be given to the development of agriculture and industrial sector like Bangladesh.