Group Assignment

Poverty along with comparison with another SAARC

Country
Macroeconomics MBA-510 SEC
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Submission Date
Population: benefit or curse a case study on Bangladesh Economic Development
Introduction

Bangladesh is 2nd fastest growing country in the world in 2016 with 7.1% GDP growth. This
study undertakes an econometric analysis to examine the relationship between population
growth and economic development. This result indicates population growth adversely related
to per capita GDP growth, which means rapid population growth, is a real problem for the
development of Bangladesh. population increases so rapidly and outstrip the food supply due
to the operation of law of diminishing return, which is proven wrong because of technological
improvement and agricultural advancement program, human capital development and export
skilled labor, promotes labor intensive industries, encourage foreign investors, institution
settings and political stability in Bangladesh. Bangladesh has reduced its population growth
about 67% between 1979 and 2017 using different preventive checks suggested by Malthus and
Mill. Bangladesh has been suffering from environmental degradation, loss of arable land, loos of
agricultural land biodiversity loss and deforestation. Bangladesh Economy is growing with
improving living standard at the cost of environmental degradation.

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i)How has this possible? What are the factors contributing to this kind of
achievement?
In the year 1972 Bangladesh was recorded to be one of the most impoverished countries of the
world with a population Of about 75million. Rice (the most important staple) production stc»d
at about12 million metric tons, Since 1972 we have lost nearly one quarter of cultivable land
owing to urbanization. Industrialization and infrastructure building.Yet,today with a population
of 170 million 2.25 times of 1972) Bangladesh produces nearly 38million food grains.
Production of many other essential items also has increased many foods.
Bangladesh is a lower-middle income country located in South Asia with over 159 million inhabitants on
a landmass of 147 570 square kilometres. It is among the most densely populated countries in the
world. Because of industrialization in manufacturing sectors and also in agricultural sector,
cultivation is not bounded in rural sector; it’s now a part of mass production with the help of 3
major factors of production. Large amount of population, better use of land and organization.

 Technology improvement
 New methods of farming
 Better education
 More workforces
 Increased productivity
 Agriculture sector has capacity to absorb labor force to generate income.
 Export potentials exist for high value crops cultivation
 Adoption of advanced technology in agriculture
 Expanding hybrid technology
 Increase in population and strong income growth amplified for food grains.
 MNC Players brought in better technology to the cultivation market
 Rise in institution credit for agriculture
Agricultural infrastructure is necessarily underdeveloped. There are inadequate roads, bridges,
irrigating networks, and flood control systems. This is a major constraint on agricultural
production, particularly given the ecology of Bangladesh. It is not possible for individual farmers
to deal with flooding or the absence of roads or other communication networks to their village,
without government funds being available for this infrastructural investment. In the long run,
agricultural growth is most seriously constrained by the low levels of investment in agricultural
infrastructure.

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ii) What role the relatively large size of population has played?

Bangladesh is a large size of populated country where higher growth rate of population makes it
possible to cultivate lands and produce more basically in agriculture sector where man power is in
highest need.

iii) What are the principal drivers of ("limited") economic development that has
taken place in Bangladesh?

Bangladesh is a densely populated country where the principle driver of Limited economic
development has been took place. Bangladesh’s rural economies, and specifically agriculture,
have been powerful drivers of poverty reduction in Bangladesh since 2000.  Indeed, agriculture
accounted for 90 percent of the reduction in poverty between 2005 and 2010.More than 70
percent of Bangladesh’s population and 77 percent of its workforce lives in rural areas. Nearly
half of all of Bangladesh’s workers and two-thirds in rural areas are directly employed by

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agriculture, and about 87 percent of rural households rely on agriculture for at least part of
their income.

Bangladesh is predominantly an agricultural country where agriculture sector plays a vital role

in accelerating the economic growth. It is therefore important to have a profitable, sustainable
and environment-friendly agricultural system in order to ensure long-term food security for
people.

In Bangladesh economic development taken by moving from higher dependency on agriculture

to industrialization in late 1980s, Bangladesh able to achieve higher productivity and growth
rate in GDP which is the major reason of higher income and investment in almost every sector
of development. Although RMG sector makes it possible to moving from underdeveloped to
developing country with medium income level but huge labor force makes it possible to gain
economic development in Bangladesh. Bangladesh is over populated hence labor input increase
, this is one factor that lead to economic development
Agricultural sector plays a strategic role in the process of economic development of a country.
Increase in agricultural production and the rise in the per-capita income of
the rural community, together with the industrialization and urbanization, lead to an increased
demand in industrial production. Agriculture indirectly contributes to economic growth via its
provision of better caloric nutrient intake by the poor, food availability, food price stability, and
poverty reduction. In many developing countries, the agricultural sector was subject to heavy
taxation.

In Bangladesh Economic growth is increase in the country’s GDP growth .Bangladesh's was the
world's seventh fastest growing economy with a rate of 7.3% real GDP annual growth. the main
driver are -
Natural Resources- 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. At
present, natural gas is the only mineral commodity significantly contributing to the national
economy .The discovery of more natural resources like oil, or mineral deposits may boost
economic growth as this shifts or increases the country's Production Possibility Curve.
Physical Capital or Infrastructure :Bangladesh is spending an increasing amount on physical
infrastructure through undertaking several mega projects, more investment is required, since
the current spending on physical infrastructure standing at 2.8 per cent of the GDP which falls
below the target level of infrastructure spending of 5 per cent of ...
Population or Labor Bangladesh labor force participation rate for 2019 was 41.91%, a 0.09%
decline from 2018. Bangladesh labor force participation rate for 2018 was 42.00%, a 0.05%

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increase from 2017. Bangladesh labor force participation rate for 2017 was 41.95%, a 2.44%
increase from 2016.
Human Capital-Bangladesh’s agricultural sector has benefited from a sound and consistent
policy framework backed up by substantial public investments in technology, rural
infrastructure and human capital.
Technology-Bangladesh is predominantly an agricultural country where agriculture sector plays
a vital role in accelerating the economic growth. It is therefore important to have a profitable,
sustainable and environment-friendly agricultural system in order to ensure long-term food
security for people.
Agriculture sector in Bangladesh is presently suffering with acute decent work ... Existing
labor law of the country recently permitted the  There is always a need for an integrated
organizing initiative and policy advocacy actions for having special policy measures and legal
framework of protecting workplace rights and minimum social protection measures for workers
at agriculture sector of Bangladesh which is more labour input- since we have a large
population, we can obtain cheap labor. The cost production in Bangladesh is less as compared
to many countries, for which we can export goods abroad at cheap rates such as garments etc.
This brings in much needed foreign currency. More over we export labor outside, which brings
in remittances. This increases GDP Introduction of technology new machinery increases
productivity. More productivity means greater output and Research and development.

iv) Can Bangladesh be characterized as "overpopulated" Why or whv not?

In present time, it is discussed that Bangladesh is an overpopulated country due to large
amount of population considering the amount living place and also available land for
agricultural production. Productive lands are scrutinized for larger need of living space and
factories which will cause reduction in agricultural land and have direct effect in food grain
production. Considering all those things, it can be said that Bangladesh is a overpopulated
country or in recent future it will be.
Bangladesh can be characterized as “overpopulated”. The population of a country is one of its
most invaluable assets. When the population exceeds the optimum level, the invaluable assets

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become a liability for the country. Bangladesh is a small country with an area of 147,570 square
kilometers. It has a population of 161 million. The country has the highest density of population
in the present world (that means more people live in a small area than anywhere else). In 1971,
when Bangladesh achieved independence, its population was about 75 million and this has
increased by more than double within the past 42 years. Population grows every year by 1.75
per cent a year. Considering an annual average growth rate of 1.75 percent, a year,
Bangladesh's population will be 350 million by 2055.
Bangladesh is the most isolated country in the world and it is a agricultural country. So poverty
was the main issues in this land along with any kind of health services .there was no sanitation,
no birth control system before independence. All they have implemented after independence
but all most overpopulated. Literacy is a factor so that the literacy rate was very minimum and
was also religious myth about birth. That's why it is overpopulated, but now day after day
Bangladesh establish their all social facilities and now it's birth rate is under control .we will see
this output may ten to twenty years after. But now there is a big and serious issue is Rohingya
refugees, their birth rate is huge. Bangladesh population growth rate is high. Bangladesh is
fertile land where food is easy to get. Bangladesh has a gender balance population where large
number of Men and Women are sexually active and fertile. It is a tropical country and social
norms are favorable for starting families. People are more social and family oriented. Most of
the cases sex is a vital part of day to day activity. There are various social norms: Boy baby, high
child mortality rate and child marriage. All these factors helps Bangladesh become
overpopulated.
Bangladesh is overpopulated country due to some causes-

 Illiteracy and ignorance

 Climatic conditions.
 Poverty
 Unemployment
 early marriage (meaning that girls often don’t go to school to learn)
 polygamy (mean can marry more than one woman)
 Lack of family planning knowledge.
Experts and geologists believe that the effects of climate change will affect Bangladesh's
population. The country is losing 8,000 hectares of cultivable land every year from its original
13 million hectares due to industry, towns and cities expanding due to increasing population.

In the future, Bangladesh will struggle to cope with its growing population. The main challenges
the country will face include:

 feeding the population

 deforestation in the Himalayas leading to increased flooding
 overcrowding and pollution in the capital, Dhaka

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  the increasing likelihood of stronger, more devastating tropical storms
 The cost of repairs from flooding and tropical storms means less money is
invested in public services.

Bangladesh is a dense country with population reaching high levels in many areas. This can put
an imbalance to any sector of the country. Here are the 9 best ways to reduce population in
Bangladesh effectively.

1. Campaigns to spread the message- Government can start designing campaigns

customized to the target groups. Once the message is ready, the distribution also needs
to be planned efficiency. Based on these factors the campaigns can be fine-tuned.
2. Schemes to motivate people to use birth control options.
3. Creating option for child adoption
4. Reducing infant mortality.
5. Creating rules to penalize couple with more than the suggested limit of children.
6. Controlling movement of population
7. Improve awareness about problems related to high population growth.
8. Empowering women
9. Improving mental health.
 Highly controversial but these radical solutions are among the only few ways Bangladesh can
be free of the burden of being the most densely populated country in the world.
Conclusion  
Bangladesh is a agricultural development is a must for the economic development of a country.
Even developed countries lay emphasis on agricultural development. According to Muir,
“Agricultural progress is essential to provide food for growing non-agricultural labor force, raw
materials for industrial production and saving and tax revenue to support development of the
rest of the economy, to earn foreign exchange and to provide a growing market for domestic
manufactures.”

Bibliography