INTERNATIONAL BUSINESS ENVIRONMENT – Assignment

GROUP 2: Amit Semwal, Harshit Gupta, Pritam Mondal, and Vikash Kumar.
ASSIGNMENT: PESTLE Analysis of Bangladesh.

NAME OF THE COUNTRY: Bangladesh

POLITICAL

Bangladesh being a very populated country always wanted to have a representative

government since its partition in 1947 from India and separation from Pakistan in 1971. It
helped in creating a democratic political system. The constitution was publicised in 1972.
Later, the hero of 1971 war Sheikh Mujibur Rahman changed the constitution and took over
the power as a dictator. The successors of him all were expressing military interests. But still
the fight for equality was active in the country as in the 1980’s.

There started the evolution of different political parties but each with a different view and all
of them wanting to rule the country. The socialist, the communist, the centrist and various
traditional Islamic parties were few of them. There was lot of political instability in the country
during 1982 when parties refused to take part in parliamentary politics when Hussain
Muhammad Ershadi was the president. It resulted in the military to continue its autocratic
rule. Ershadi held power and bought in a change by introducing the structure of local elections
in the country which showed some democratic ideals. This resulted in bringing up new
political leaders and groups for representative race throughout the country.

Timeline in the history of Bangladesh:

British colonial rule over India ends. A largely Muslim state comprising East and
1947 West Pakistan is established, either side of India. The two provinces are
separated from each other by more than 1,500 km of Indian territory.
Independence after a nine-month war, with India backing the Bengali
1971
nationalists against Pakistan.
1973 First parliamentary elections give the Awami League a landslide victory.
A military coup sees founding president Sheikh Mujibur Rahman (war hero of
1975
1971) and most of his family members killed, putting an end to civilian rule.
Second parliamentary elections brought former army chief Ziaur Rahman's
1979
Bangladesh Nationalist Party to power.
1981 President Ziaur Rahman assassinated during abortive military coup.
General Hussain Muhammad Ershad assumes power in coup. He suspends the
1982
constitution and political parties.
1991 The country returns to a parliamentary system of government.
2006-08 Political crisis sees leaders of both major parties briefly detained.
Bangladesh faces a campaign of violence by Islamists against bloggers, atheists
and secular intellectuals. Sheikh Hasina started a third term as prime minister
2014-17
in January 2014, after her Awami League won elections boycotted by the
opposition amid an ongoing political crisis.
Politics has long been dominated by bitter rivalry between two women: Sheikh Hasina, and
Khaleda Zia of the Bangladesh Nationalist Party.

Second Revolution was a political hypothesis presented by the founding father of Bangladesh,
Sheikh Mujibur Rahman. The hypothesis included a series of reforms in the three pillars of a
state: administrative, judiciary and legislative systems. The reforms were enacted through the
fourth amendment of the constitution of Bangladesh. BAKSAL was formed as the decision-
making council to carry out the revolution.
The 'revolution', as it was called by the Awami League leadership, ended with the
assassination of Sheikh Mujibur Rahman during the 15 August 1975 Bangladesh coup d'état.

MAIN OFFICE HOLDERS

OFFICE NAME PARTY SINCE
President Abdul Hamid Awami League 24 March, 2013
Prime Minister Sheikh Hasina Wazed Awami League 6 January, 2009
Parliament Speaker Shirin Sharmin Chaudhary Awami League 30 April, 2013
Chief Justice Syed Mahmud Hossain Nonpartisan 17 January, 2015

Executive Power: The Head of State, the President of the Republic, is elected for a 5-year
term by the Parliament. The President of Bangladesh has a representative role as the Prime
Minister holds most executive powers. The latter is appointed by the President and must be
a member of the majority party in the parliament. The government is composed of ministers
selected by the Prime Minister.
Legislative Power: Legislative power is vested in a unicameral parliament called the House of
Nations or Jatiya Sangsad. Its 350 members are elected by direct universal suffrage for a five-
year term.

Main Political Parties

• Awami League (AL): governing party, center to center-left;

• Workers Party of Bangladesh: left-wing to far-left, communism, Marxism-Leninism;
• Jatiya Party: center-right to right-wing;
• Bangladesh Nationalist Party (BNP): right-wing, national and social conservatism,
economic liberalism
• Awami League (AL): governing party, center to center-left;
• Workers Party of Bangladesh: left-wing to far-left, communism, Marxism-Leninism;
• Jatiya Party: center-right to right-wing;
• Bangladesh Nationalist Party (BNP): right-wing, national and social conservatism, economic
liberalism.
Bangladesh: Political stability index (-2.5 weak; 2.5 strong)

Changes in the GDP over time provide a measure of stability. The GDP measures the total
output of a nation's economy in inflation-adjusted monetary terms. Other measures of
economic stability include consumer prices and the national unemployment rate.

For that indicator, we researched data for Bangladesh from 1996 to 2019. The average value
for Bangladesh during that period was -1.21 points with a minimum of -1.86 points in 2005
and a maximum of - 0.37 points in 1998. The latest value from 2019 is -0.92 points. For
comparison, the world average in 2019 based on 195 countries is - 0.05 points.

"Digital Bangladesh by 2021" – a seed planted way back by the father of the nation, Sheikh
Mujibur Rahman, a dream & vision by the current PM, Miss Hasina emerged as part of
"Charter for Change"—the election manifesto of Bangladesh Awami League for the 9th
Parliamentary Election. The declaration was made in December 12, 2008 for the election held
in December 29, 2008.Vision 2021 is the articulation of the country´s guiding vision, involving
a dual focus on eradication of poverty by 2021 and transformation of the country by
leveraging ICT as a key growth driver for economic and socioeconomic transformation of the
country.

International Relations

The country pursues a moderate foreign policy that places heavy reliance on multinational
diplomacy, especially at the United Nations and World Trade Organization (WTO). Since
independence in 1971, the country has stressed its principle of "Friendship towards all, malice
towards none" in dictating its diplomacy. As a member of the Non-Aligned Movement,
Bangladesh has tended to not take sides with major powers. Since the end of the Cold War,
the country has pursued better relations with regional neighbours.

• Bilateral trade between India and Bangladesh has grown steadily over the last decade. In the five
years, total trade between the two countries has grown by more than 17%. India’s exports to
Bangladesh in the period July 2016 – March 2017 stood at US$ 4489.30 million and imports from
Bangladesh during FY 2016-17 stood at US$ 672.40 million. India has provided duty free quota
free access to Bangladesh on all tariff lines except tobacco and alcohol under South Asian Free Trade
Area (SAFTA) since 2011.
• Bangladesh puts deep emphasis on relations with China and the United States as China is the largest
military supplier to Bangladesh while United States is one of the largest export markets for
Bangladeshi products. In recent years, the relations with Russia also became influential because of
the Russian loan and technical assistance on military modernisation and the first ever nuclear power
plant project of Bangladesh. The bilateral relations of Bangladesh are mainly based on trade
activities. However, with certain countries, the relations expand to other areas such as military co-
operation, cultural exchange etc.
• At the 15th SAARC Summit, Maldives and Bangladesh met at the side lines to discuss the possibility
of sending more semi-skilled and skilled workers.
• Nepal has good bilateral relations with Bangladesh as they view the latter nation as a great access
point to the sea giving them the opportunity to develop potential transit and trade facilities and be
less dependent on India and China
• Bangladesh signed trade agreement on 4 August 2006 with Cambodia in Phnom Penh. The trade
agreement will help in further expanding and strengthening trade relations between the two
countries. Bangladesh's major export items to Cambodia are ready-made garments, footwear and
leather goods, pharmaceuticals, seafood and marine products, tea, potato, jute and jute goods, light
engineering products, spices, cosmetics, ceramic, melamine products and toiletries. Major import
items from Cambodia are—cotton, edible oil, fertiliser, clinker, staple fibre, yarn and capital
machinery.

ECONOMIC

Bangladesh Economy was heavily reliant on the agriculture sector, and due to this, population
faced the seasonal unemployment in the rural areas. To counteract this imbalance, a policy
of industrialization was adopted in the mid-20th century. During the period of Pakistani
administration (1947–71), priority was given to industries based on indigenous raw materials
such as jute, cotton, hides, and skins. The principle of free enterprise in the private sector was
accepted, subject to certain conditions, including the national ownership of public utilities.
The industrial policy also aimed to develop the production of consumer goods as quickly as
possible in order to avoid dependence on imports.

The Pakistani administration established new types of autonomous corporations to deal with
industrial development, electricity, water and sewerage management, the development of
forest industries, and road transportation. In 1972, however, the government of the new,
independent Bangladesh implemented socialist policies, nationalizing these corporations and
establishing several new corporations to manage the nationalized enterprises. Hasty change,
coupled with the inexperience of those placed in charge of the corporations, produced
widespread disruptions, and industrial production nearly came to a halt. In 1973 the
government launched a five-year development plan (the first of a series of such plans that
have guided the country’s economy into the 21st century). The policy of nationalization was
gradually revised and was replaced by a 19-point program (19-point program is an election
manifesto in the Bangladesh) announced in 1979 that emphasized greater productivity
and efficiency. In an effort to encourage private investment, the government also returned
many state-owned enterprises to the private sector.

The analysis presented in the world bank report highlights a country in the midst of massive
economic transformation, which is delivering large-scale job creation. This transformation,
particularly the growth of urban manufacturing jobs in large firms (mainly in the Ready-Made
Garments sector), is delivering more formal wage work and changing the lives of many
workers—particularly urban females and youth. It has also been strongly associated with
spatial transformation, marked by large rural-urban migration and increasing concentration
of jobs in Dhaka.

At the same time, many challenges remain, in particular regarding job quality. Despite much
progress, the labour market is still dominated by agriculture and low-productivity services,
with informality, unpaid work, low earnings, and lack of worker protection prevalent. Gaps in
access to quality jobs persist by region (urban and rural), sex, education, and age groups,
among others. Female Labour-Force Participation remains low, and has declined in recent
years in urban areas.

While urbanization has been central to Bangladesh’s industrial transformation, rising

congestion costs in Dhaka represent critical constraints to productivity and firm
competitiveness, as well as to the quality of jobs (i.e., earnings increasingly insufficient to
keep up with the costs of housing and transport). And while megacities’ capacity for industrial
investment becomes saturated, secondary cities lack the industrial and social infrastructure
to emerge as new locations for investment.

The report highlights the critical role of temporary international migration as a mechanism to
relieve pressure on the domestic labour market and as an employment strategy for workers.
These large labour migration outflows can also be interpreted as symptoms of poor job quality
available in the domestic market. Leveraging international migration to deliver sustainable,
inclusive, and higher-quality jobs for Bangladeshis will require addressing a number of
challenges including high costs of migration, lack of information and predeparture services,
high concentration of destination markets, low skills of Bangladeshi outmigrants, and limited
attention to reintegration of returning migrants.

Bangladesh recorded one of the fastest growth rates in the world in the past few years with
a stable economic performance that has helped to reduce poverty and social inequalities.
GDP growth was estimated to have reached 7.9% in 2019 and is forecast to fall to 2% in
2020 due to the outbreak of the COVID-19 and pick up to 9.5% in 2021, according to the
updated IMF forecasts from 14th April 2020. The post-pandemic global economic recovery
and the private consumption boosted by strong remittance flows from the Bangladeshi
diaspora around the world are expected to be the key drivers of growth in 2021.
Some Key Economic Indicators in 2019.

GDP $347.99B
GDP PER CAPITA $2000
GROSS GOVT. DEBT 34.60% of GDP
PUBLIC DEBT 35%
INFLATION 5.50%
CURRENT ACCOUNT DEFICIT 2.80% of GDP
UNEMPLOYMENT RATE 10% of GDP
Primary Sector of Bangladesh

In 2016, 70.63% and 59.6% of the total land was agricultural and arable respectively,
indicating that around 10% of the land was unsuitable for growing crops. Before the inception
of the country, agriculture has been a critical sector to overall productivity, accounting for
more than 50% of GDP during 1960-1979. In 1991, the sector employed 69.61% of the
employed which has whittled down today to 36%(appx.) in 2020, i.e. around every 2 of 5
employed work in agriculture. Bangladesh has come forward a long way from the past, with
the RMG sector taking over as a major contributor to GDP. However, agriculture continues to
play a critical role in the country and the world.

Rice is the predominant agricultural product, but jute and tea, both of which are key sources
of foreign exchange, also are important. Indeed, the country is one of the world’s leading
suppliers of raw jute. Other major agricultural products include wheat; pulses, such as peas,
beans, and lentils; sweet potatoes; oilseeds and spices of various kinds; sugarcane; tobacco;
and fruits, such as bananas, mangoes, and pineapples. The country also is a leading producer
of goat milk and goat meat.

Bangladesh is one of the leading fish producing countries in the world, producing appx.4.3mn
MT in FY19 (a surplus against demand) contributing to a daily consumption averaging appx.
70gm fish/person (around 60% of animal protein intake). The industry made up 3.5%
contribution to GDP in FY 19. It has also seen an average growth of 5.42% over the last decade
to achieve the government’s production target of 4.55mn MT by 2020-21. The industry
currently employs around 11% of the total population on a full-time and part-time basis. The
country exported around 68.31 thousand MT of fish to more than 50 countries in 2019,
increasing 5 times in size over the last three decades.

Resources and power

A major obstacle to the economic development of Bangladesh has been a general lack of
mineral resources. The country’s first oil well, near Sylhet, was established in 1986, but
petroleum in marketable quantities has not been struck anywhere in Bangladesh. Natural gas
is used mainly in the manufacture of fertilizer and for thermal power. More than half the
proven gas reserves are in the Comilla area, and nearly all the rest are in Sylhet.

Some deposits of coal have been found in north-western Bangladesh in the Rajshahi area.
The thickest seams are located at relatively inaccessible depths of 3,000 to 3,500 feet (900 to
1,000 metres). Smaller deposits of coal exist in north-western Sylhet. The Chittagong Hill
Tracts contain some brown coal and lignite. Peat deposits exist in several places, but some of
the beds remain underwater for half the year, making extraction difficult. Limestone is found
in the Sylhet and Chittagong areas. Radioactive minerals have been detected in sand deposits
along the beaches south of Cox’s Bazar.

Bangladesh’s electricity is produced by thermal and hydroelectric processes. The main source
of hydroelectricity is the Kaptai Dam in the Chittagong Hill Tracts.
 Although Bangladesh is a small country, it has a number of
mineral resources such as natural gas, oil, coal, hard rock,
limestone, white clay, glass sand and mineral sand but in
small quantities. At present, natural gas is the only mineral
commodity significantly contributing to the national
economy. More than 90% of the country’s energy needs
are met by gas, total reserves of which are 21.35 trillion
cubic feet (TCF) and 12.43 TCF, respectively. Huge reserves
of hard rock (granodiorite, quartz diorite, gneiss) and coal
in northwest Bangladesh will help, in the near future, to
meet the growing demand for construction materials and
energy for the ever-growing population. Total coal
reserves are 1753 million tons (MT), the market value of
which is more than US$110 billion. Hard rock reserves are
115 million tons, valued at over US$3 billion. Fully fledged
extraction of these resources would help to alleviate the
country’s poverty through industrialization. It is expected that coal will soon be extracted on
a commercial basis, of which 70 to 80% will be used in power generation. The mineral
resources so far found in Bangladesh are meagre in comparison to its high population. To
meet the growing demand of the population, more mineral resources need to be discovered
and developed, otherwise sustainable development cannot be achieved. However, it is
difficult for developing countries like Bangladesh to carry out the necessary activities for
exploration and exploitation of hidden mineral resources without foreign assistance. This is a
major drawback for Bangladesh. To progress towards an endurable sustainable society, a
nation such as Bangladesh must give priority to the development of its existing mineral
resources, which can play a major role in helping to reshape the country’s socio-economic
infrastructure.

RPG in Bangladesh

Bangladesh’s affiliation with cloth has a long history. From being renowned throughout the
world and even conquered by the British for its high-quality muslin, silk, and pure cotton, to
becoming the second-largest ready-made garments producer in the world, the country has
long depended on the textile industry for its growth. The production of RMG dominates in
contribution to Bangladesh’s GDP, exports, and conversations of development. In 2017 the
industry exported goods worth $30 bn, which made up 83% of exports and 12% of the GDP,
higher than any other industry. It is also the industry that has seen the most scrutiny from
global markets due to past incidents like the Rana Plaza collapse, which created waves
throughout the world and pushed reforms for providing safer work environments and wages
for its employees. Bangladesh’s main export destinations are the EU, with whom
Bangladesh has duty-free trade, and North America.
Tertiary Sector in Bangladesh

Service Sector is the highest contributor to the Bangladesh GDP. Last year (2019) contribution
of Service Sector to Bangladesh GDP was 52.85%. Not only in 2019, it is a steadily growing
sector of Bangladesh economy since the independence of the country. Contribution of
industry to the GDP is rising too, but in a sloth and ups and down manner. While contribution
of Service sector raised without any major downturn. It is net service import country with $5
billion in export and $11 billion in import.
Service sector is combination of different sub-sector as follows:

• Overseas Employment and Migration

• Banks and Financial Institutions
• Insurance
• Hospitals and Clinics
• Educational and Skill Development Service, etc

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is a national

trade association whose duties include monitoring the safety of factories, lobbying with the
government on behalf of the industry, and conducting research to improve production
techniques.

SOCIAL
Culture refers to the cumulative deposit of knowledge, experience, beliefs, values, attitudes,
hierarchies, religion, notions of time, roles, spatial relations, concepts of the universe and
material objects and possessions acquired by a group of people in the course of generations
through individual and group striving

Cultural aspects measured are perceptions of a country’s heritage, its contemporary cultural
“vibes” from music, films, art and literature, as well as the country’s excellence in sports.

Culture influences many aspects of our life, private and public, from foreign affairs to love
affairs. It certainly influences various factors that on various levels and through separate
mechanisms contribute to create a phenomenon known as nation branding.

Educational System of the Bangladesh

Their Education system is impressive. They are also too much concentred-on education
system. At all levels of education, students can decide to take liberation of their education in
English or Bangla. Private schools are tending to make use of English-based study
intermediate at the same time as government-sponsored schools use Bangla.

Culture of Bangladesh

Bangladesh has a rich, diverse culture. Its deeply rooted heritage is thoroughly reflected in
its architecture, dance, literature, music, painting and clothing. The three primary religions
of Bangladesh (Islam, Hinduism, and Buddhism) have a great influence on its culture and
history.

Bangladesh is the most densely populated non island nation in the world. With
approximately 125 million inhabitants living in an area of 55,813 square miles, there are
about 2,240 persons per square mile. The majority of the population (98 percent) is Bengali,
with 2 percent belonging to tribal or other non-Bengali groups. Approximately 83 percent of
the population is Muslim, 16 percent is Hindu, and 1 percent is Buddhist, Christian, or other.
Annual population growth rate is at about 2 percent.

One of the world's most densely populated nations, Bangladesh in the 1980s was caught in
the vicious cycle of population expansion and poverty. Although the rate of growth had
declined marginally in recent years, the rapid expansion of the population continued to be a
tremendous burden on the nation. With 82 percent of its people living in the countryside,
Bangladesh was also one of the most rural nations in the Third World. The pace of
urbanization in the late 1980s was slow, and urban areas lacked adequate amenities and
services to absorb even those migrants who trekked from rural areas to the urban centres
for food and employment. Frequent natural disasters, such as coastal cyclones and floods,
killed thousands, and widespread malnutrition and poor sanitation resulted in high mortality
rates from a variety of diseases. Historically known as rural-agrarian country, Bangladesh
today is experiencing rapid transformation towards an urban society

Corporate Culture in Bangladesh

Bangladesh’s corporate culture is also interesting to know. Mainly MNCs has a marvellous
attention of creation of it as of this marketplace. Bangladesh is good enough in the
Business world. For the Business and for the export and import Bangladesh has much kind
of the rules and regulation. Bangladesh got support from the U.S.A. government.

Ethical & Political Issues in Bangladesh

Bangladesh makes good ethical and policy culture country. However, many of the ups and
downs came in the climate and in the economic and many storms came on the country
although they are growing successfully. Bangladesh culture is most interesting things.
However, Bangladesh has lots of the colourful culture and religions also. Their education
systems and their policies for the Business and for maintain the relationship with the foreign
also somehow impressive.

LITERACY RATE 73.91%

LIFE EXPECTANCY 72.43 Years
GLOBAL HUNGER INDEX 75 out of 107 Countries
POVERTY 20.50%
GINI COEFFICIENT (GINI INDEX) 32.00%

TECHNOLOGICAL

A National Science and Technology rule has been formulated and adopted by the
Government. It has laid down the directions for S and T activities and learning, institutional
and manpower development. Dissemination and certification services. The National Council
for art and skill (NCST) determines S and T policies, reviews the activities of Dissimilar
institutions and provides direction towards S and T study and actions. Bangladesh has a
comparatively long understanding in the use of computers - the first second generation
computer was introduced in 1964 at Dhaka & very soon some of the large banks &
manufacturing concern started using PC mainly for bookkeeping & payroll applications. The
utility companies (e.g. gas, electricity) also started using the agency services of these
installations for their client billing. Unfortunately, the financial crisis that the nation faced
instantly after its independence in 1971 did not permit the sustenance of this early lead &
lack of protection forced the closure of most of this installation. Today information
technology (IT) is a topic of major attention in Bangladesh. Present Government already
considered Information Technology as a major concern sector and for that it is providing all
required supports to the private and public sectors so that they can expand in the market to
provide data processing and other software services. Considerate the bright future in
information technology and great number of students, businessmen and young professionals
are showing their interest in getting information on computers and its applications.

Bangladesh is emerging out as a new IT hub in South Asia, though Bangladesh’s IT companies
are overshadowed by Indian peers but with rapid improvement in infrastructure, Bangladesh
is becoming a major software exporter. Bangladesh ranks 21st in IT outsourcing, business
process outsourcing and software development. The country also has the second-largest
number of freelancers worldwide, according to the Oxford Internet Institute, and more than
40,000 people work in the outsourcing industry, earning more than $300 million (267 million
euros) every year, according to the Bangladesh Association of Call Centre and Outsourcing
(BACCO).

The Smartphone and Data Revolution

Mobile phones now foster our social connections, communications, entertainment, and
finances through different social media apps, enhanced connectivity features and other
software features.

• There were 163.0 million mobile connections in Bangladesh in January 2020.

• The number of mobile connections in Bangladesh in January 2020 was equivalent to 99%
of the total population.
• There were 103 million internet users in Bangladesh in June 2020.
• The number of internet users are increasing at 10% annually.
• Internet penetration in Bangladesh stands at 63%.
The ICT-led push has been termed as “Digital Bangladesh”, and involves four pillars:

• Human resource development: Leverage technologies to build world-class skills in all areas
of study especially mathematics, science, and English language. The pillar also involves
focus on e-Education providing vocational and “lifelong education” opportunities to youth
(vocational training) and adults (continuous learning).

• Connecting the citizens: Ensure last mile connectivity and equitable Internet access in an
affordable and sustainable manner.

• Digital Government for pro-poor services: Facilitate provision of civil services and leverage
technology for e-government, down to the smallest unit of government and administrative
distribution. The two key sub-components of this component are e-Citizen Services (for
citizens to access services) and e-Administration to delivery e-Citizen Services (for public
sector authorities to manage requests). Also ensuring pension process is carried out
digitally.

• ICT in business: Focus on three broad dimensions i) access to market, ii) promotion of ICT
business to support Digital Bangladesh and iii) ICT as an export-oriented sector. An updated
National ICT Policy is due to be gazetted in 2019. An update of the ICT Policy 2015 has been
drafted and was validated in November 2018. The strategy update considers the
forecasted impact of 5G and the Fourth Industrial Revolution among other developments
that will affect Bangladesh’s ICT sector.
LEGAL

The parliamentary process and the political dialogue at the national level are presently not
conducive to broad socioeconomic development. The democracy is young and fragile and
state institutions are weak.

The incidence of violence, even murdering of political figures and journalists, seems to have
increased during recent years. The law and order situation are not upheld in society and the
risk for further deterioration is apparent. Human rights violations continue, especially linked
with political activities. At the local level there has been some positive progress, but the
democratic process is shaky and dependent on the local power structure. Consequently, the
majority of the population is unable to have a voice in the political process and lacks access
to decision-making, both locally and nationally. Therefore, there is challenge for the country
to create a real participatory democracy, built on the rule of law for all its citizens.

The centralised, corrupt and inefficient state structure is a hindrance to development. There
is limited accountability and transparency, which has created a breeding ground for
corruption and a growing mistrust from the public. The public administration also lacks
financial and adequate human resources to perform its duties. Management of public
institutions needs to be strengthened at all levels and remains one of the obstacles for
change. As a consequence, there are negative effects on the general public, as it cannot
receive the public services it requests, and not least the private sector, as the red tape and
corruption create inefficiencies in industry and commerce and reduce the potential for
Bangladesh to compete in the world market. It is also a negative factor for foreign investors
as they analyse potential markets. It is therefore a major urgent national challenge to reform
the public administration and reduce corruption for the benefit of the whole economy.

The polarization & hostility between AL & BNP continue & the opposition frequently uses
traditional ―Hartals‖ (civil disobedience general strikes) as political arms. Political
demonstrations often end in violent clashes between different groups & politically induced
murders occur regularly. The political, administrative & economic power is concentrated
within a small elite with inherited vested interests. The elite with its family &kinship bonds,
is well connected within all spheres of society & patronage is used to retain profits. Hence,
the Political procedure at the national level is driven more by personal & power rivalry than
ideology or social & economic concerns. Society therefore is highly politicized & the main
parties make frequent use of their close connections with student unions; trade unions &
local ―Mastaans (petty criminals).

The state structure is highly centralized, inefficient & oversized in relation to the economic
status of the country & the current low level of state income generated which called
income most state institutions perform poorly & they are even considered in some
instances to be liabilities not as assets in terms of their contribution to socioeconomic
development29. There is limited accountability & transparency for those in authority on
the use of public capitals.
ENVIRONMENTAL

Bangladesh has shown tremendous efforts in the sustainable growth in the recent years. With
nearly 150 million citizens on a landmass of 147,570 square kilometres, Bangladesh is among
the most thickly populated countries in the world. It’s Sustained growth in recent years has
created higher demand for electricity, transport, and cable services, and contribute to
widening communications deficit. Becoming a middle-income country will require substantial
efforts on many aspects. These covers maintaining strengthening revenue recruitment;
macroeconomic constancy; deepen financial-sector and external trade reform; improving
labour skills, tackle energy and communications deficit; economic supremacy, and urban
management; and adapt to climate change. Bangladesh can be an export source of power,
with its labour-intensive manufactured and service exports rising at double digit on a
sustained basis, if it boosts up government decision-making.

• Climate Change
• Global Warming
• Geophysical Setting
• Demographic Pressure
• Unplanned Urbanization & Industrialization
• Natural Calamities

Bangladesh saw around 234,000 deaths, including 80,000 in urban areas, due to
environmental pollution and related health risks in 2015, making it one of the worst affected
countries in the world, reveals a World Bank report.

Air Pollution, 2%
Miscellaneous Noise Pollution, 1%
Pollution, 10%
Filling Water Bodies,
1%

Hill Cutting, 3%

Water Pollution, 83%

DOE REPORT - NATURE OF POLUTION

The economic cost of the deaths and disability in terms of labour output has been estimated
at $1.4 billion in all urban areas of Bangladesh and at 310 million in Dhaka city alone,
equivalent to 0.6 percent and 0.1 percent of the country's GDP in 2015.

Given the growing environmental challenges that Bangladeshi cities face, the WB analyses
the impacts and causes of pollution levels and degradation of natural resources in Dhaka and
other rapidly growing cities.

Over the past three decades, Bangladesh has experienced dramatic increase in pollution
linked to urbanisation. Rapid growth of readymade garment industry and increase in urban
population from less than 40 million in 2006 to more than 55 million in 2015 had been key
factors in exposing the growing urban population to environmental hazards.