Assignment

On
Bangladesh on path to be recognized as a developing country

Course Title: Business Communication

Course code: EMBA-501

Submitted To
Prof. Feroz Ahmed
Business Administration Discipline
Management & Business Administration School
Khulna University.

Submitted By
Zaheer Khan
ID: EMBA-180311
Evening MBA Program
Business Administration Discipline
Management & Business Administration School
Khulna University.

Submission Date: 3rd July, 2018

 Executive Summary
Bangladesh, for the first time in history, has fulfilled the eligibility criteria set forth by
the United Nations (UN) to be recognized as a developing country.Bangladesh will
now be able to apply to the UN for recognition as a developing country, while the
formal transition will occur on 2024.

The UN classifies all countries across the world under three criteria, Least Developed
Countries (LDC), Developing and Developed. Bangladesh had remained in the list of
LDC since 1975.But, the Bangladesh profile in the UN web portal currently shows
that the country has achieved the eligibility criteria for transitioning into the list of
developing countries.

To transition from LDC, a country must fulfill three essential criteria- per capita
Gross National Income (GNI), Human Resources Index and Economic Vulnerability
Index (EVI).Per capita income of $1,230 is the minimum requirement for
transitioning into a developing nation, and Bangladesh’s income per capita currently
stands at $1,274.

Bangladesh holds 72 points in the Human Resources Index, while the minimum
requirement is 64 points.For the UN recognition, Economic Vulnerability Index (EVI)
must be below 32 points, and Bangladesh’s current score is 25.5 points.

In July, 2015, Bangladesh transitioned from a low income to a lower-middle income

country. This distinction, based on the per capita income of a country, is used by the
World Bank.Meanwhile, Prime Minister Sheikh Hasina made the announcement of
Bangladesh’s eligibility to be recognized as a developing nation, on the 99th birthday
of Bangabandhu Sheikh Mujibur Rahman.

The announcement came at a program held in Tungipara of Gopalganj on Saturday

(March 17).Addressing the program, Sheikh Hasina said: “UN has recognized
Bangladesh’s eligibility as a developing country, and I want to share this good news
with the nation on the birth anniversary of Bangabandhu.”
 Table of Contents
Description page
Executive Summary
Introduction
1.1 Origin of the report
1.2 Purpose of the report
1.3 Scope of the report
1.4 Statement of Problem
1.5 Methodology

2.1 Developing Bangladesh: A new identity

2.2 Moving Out of LDC Category
2.3 Attaining LDC graduation criteria
2.4 Challenges and Opportunities in Moving to Upper Middle
Income Status
2.4.1 Boosting exports
2.4.2 Not just jobs, better jobs
2.4.3 Beyond the garment industry
2.4.4 Role of remittances

Conclusions
Appendix
Introduction
1.1 Origin of the report:

Our honorable course teacher Mr. Feroz Ahmed gave me the opportunity to prepare
this report. He assigned me to prepare a report on Bangladesh on path to be
recognized as a developing country . The last date of submission is July 6, 2018.

1.2 Purpose of the report:

The purpose of the report was to teach us the way to write a report and to make us
understand the importance of writing good report in business. The idea is to make us
understand how we can collect and analyze information and make a conclusive result
or comments from those findings.

1.3 Scope of the report:

To make this report I mainly surfed in the internet .I must say I tried my best to fulfill
this report.

1.4 Statement of problem:

I was preparing a report of this type for first time. So inexperience was my main
problem. I didn’t know how to collect proper information and extract the main theme
from that information. Moreover, a little information is available on internet about
that specific hospital. Most of statistical aspects are unavailable. So this was another
problem I faced during the preparation of the report.
1.5 Methodology

This is the outline of my report preparation, from the assignment of the report to the
final preparation of the report. The steps followed are:

 Assignment of the report

 Planning the way to prepare the report
 Collection of related information
 Extract the main theme from the collected information
 Preparing the report.
2.1 Developing Bangladesh: A new identity
Bangladesh is finally going to be recognized as a developing country – economically
and socially – in March, 2018, crossing over from the list of least developing
countries (LDCs).
Bangladesh has achieved all the three conditions that were needed to be a developing
country.However, the announcement will be effective in 2024 – after being assessed
by the United Nations Economic and Social Council.
The council will make the announcement by considering three aspects of the country
– economic risk, human development, and per capita income. In the meantime,
Bangladesh has to maintain its progress.

2.2 Moving Out of LDC Category

In a major leap forward, Bangladesh has become eligible to graduate to a developing
country from a least developed one as it has met all the three criteria for the first time
for getting out of the LDC bloc.

2.3 Attaining LDC graduation criteria

Bangladesh has termed it a historic day as it attained all three criteria for graduation
from the least-developed country (LDC) group to developing one.
The UN Committee for Development Policy (CDP) determines the graduation of a
least developed country from the LDC category on the basis of its meeting at least
two of the three criteria which are Per Capita GNI, Human Asset Index (HAI) and
Economic Vulnerability Index (EVI). Bangladesh could meet all the three criteria in
this year's review by the CDP.

The United Nations Committee for Development Policy, on completion of its review
of the LDC category, announced that Bangladesh has met the graduation criteria for
the first time.Mentioning that from the war-ravaged country to today's graduation has
been a bumpy ride, Ambassador Masud said it has been possible due to the visionary
leadership of Prime Minister Sheikh Hasina.

"Under her leadership, Bangladesh adopted bold and forward-looking development

strategies which yielded rapid but inclusive economic growth, structural
transformation and remarkable social progress".The permanent representative stated,
"Graduation of half of the LDCs by 2020 is one of the major objectives of the Istanbul
Programme of Action for LDCs and it is also imperative for the realisation of the
2030 Agenda as well as for long lasting peace and prosperity".

Some LDC delegates and colleagues from different UN Agencies also attended the
event. The Consul General of Bangladesh in New York and the Bangladeshis working
at the UN Headquarters were also present.The event started with the screening of a
short documentary on Bangladesh's development trajectory.

The permanent representative informed the audience that Bangladesh has set a goal to
establish itself as a middle-income country by 2021 and a developed and prosperous
country by 2041.All the dignitaries congratulated Bangladesh on its meeting the
graduation criteria from the LDC category and spoke very high of its remarkable
strides in accelerating inclusive social and economic development.

2.4 Challenges and Opportunities in Moving to Upper Middle

Income Status

Bangladesh has been extraordinarily successful in growing its economy and spreading
the benefits of that growth across society. Since the 1980s, the country has averaged
5%–6% annual gross domestic product growth.
This growth was accompanied by a significant decline in poverty, an increase in
employment, greater access to health and education, and improved basic
infrastructure. As a result, the once poor country is now considered middle income.

The next goal is to reach upper-middle-income country status by 2021. This ambitious
initiative will require annual GDP growth of 7.5%–8% and will entail overcoming
significant obstacles and seizing on new opportunities brought about by changing
global circumstances.

Boosting exports

To reach the next level, Bangladesh needs to improve the country’s reliable energy
supply, revise business policies that stunt the development of non-garment exports,
and improve property and land rights registry systems to protect investments,
according to the recent publication, Bangladesh: Consolidating Export-led Growth.

To overcome these obstacles, strategies should be developed to decrease the

economy’s reliance on low-cost exports, such as garments. This includes focusing on
higher education and technical and vocational skills training, the publication noted.
Bangladesh also needs to more fully embrace technology, including increasing access
to the internet, cell phone banking, digital property registries, and other innovations.

Not just jobs, better jobs

Another challenge faced by the country is the problem of underemployment. The

proportion of workers employed in the informal sector—where high
underemployment, low earnings, and poor working conditions are common—rose to
87% in 2013. Women continue to get paid less for the same work and have fewer
labor opportunities.
Beyond the garment industry

Bangladesh needs to move more rapidly toward industrialization and shift workers
into formal jobs, with more social protections, that are created as a result, according to
the publication Bangladesh: Looking Beyond Garments.

As the country grows and diversifies its manufacturing sector, it can looks to the
garment industry for some lessons, according to the report, Employment and the
Labor Market in Bangladesh: Overview of Trends and Challenges. For example,
instituting a minimum wage and enforcing improved safety regulations have not had a
negative impact on employment opportunities in the garment industry.

Role of remittances

While the country’s economy is strong, and employment opportunities are increasing,
the pull to work overseas remains strong in Bangladesh, according to the publication
Overseas Employment of Bangladeshi Workers: Trends, Prospects, and Challenges.

Remittances flowing into Bangladesh from overseas employment rose to over $15
billion in 2015 or about 8% of gross domestic product, up from less than $2 billion in
2000. This has become a major driver of the economy, comparable to the importance
of the dominant garment industry. About half a million people in Bangladesh find
jobs abroad each year.

But the economic impact of working overseas is not being spread evenly. High costs
of migration due to recruitment fees and charges by intermediaries make opportunities
highly skewed in favor of people in higher-income groups. Continued government
oversight of the overseas recruitment process is needed, according to the publication.
 Conclusion

The new status will help in branding Bangladesh. Investors will be interested to invest
in the country given its strength in certain areas such as the size of its Gross Domestic
Product (GDP), exports and population compared to other LDCs. These will help
Bangladesh's credit worthiness which is reflected through better credit rating.
Bangladesh will have more opportunities for taking commercial loans from the
international market at a competitive interest rate. Such branding will help it to
mobilise resources from the global market through sovereign bond. The private sector
will also have the opportunity to generate capital from the global financial market.

The other impact will be reflected through the cost of development finance and higher
debt servicing liabilities due to the cessation of access to concessional finance for
LDCs. Over the years, Bangladesh has transformed itself from an aid-dependent
country into a trade-dependent one. However, for poverty alleviation, social sector
activities and infrastructural development, the role of official development assistance
cannot be undermined. As a lower-middle-income country, Bangladesh is no more
eligible for low interest loans. After graduation, Bangladesh has to go for blended
finance that includes loans from the development institutions and other sources with a
high interest rate and shorter repayment period. However, Bangladesh should also
explore more resources from institutions such as the Asian Infrastructure Investment
Bank (AIIB), New Development Bank (NDB) and other commercial sources.
 Reference

1. The Daily Star

LDC GRADUATION: What it means for Bangladesh

https://www.thedailystar.net/opinion/macro-mirror/ldc-graduation-what-it-means-
bangladesh-1550542

Attaining LDC graduation criteria: Bangladesh terms it a historic day

https://www.thedailystar.net/business/economy/attaining-ldc-graduation-criteria-
bangladesh-terms-it-a-historic-day-1549525

Moving Out of LDC Category: Bangladesh well on track

https://www.thedailystar.net/frontpage/moving-out-ldc-category-bangladesh-well-
track-1549405

2. Asian Development Bank

Challenges and Opportunities in Moving to Upper Middle Income Status

https://www.adb.org/news/features/bangladesh-challenges-and-opportunities-moving-
upper-middle-income-status

3. Dhaka Tribune

Developing Bangladesh: A new identity

https://www.dhakatribune.com/bangladesh/development/2018/03/10/developing-
bangladesh-new-identity/