Course Title: Engineering Economics

Course Code: ECO 201

Submitted to: Mahmud Wahid

Designation: Assistant prof. and coordinator

Department: BBA

Submitted by : Mustavi Mahtab Mahin

ID: 193003051

Department: Textile

Engineering Economics
Bangladesh’s Economic Development in the
recent years and secret of success.

o The economy of Bangladesh is a developing market economy. It's the 35th

largest in the world in nominal terms, and 30th largest by purchasing
power parity; it is classified among the Next Eleven emerging market
middle income economies and a frontier market. In the first quarter of
2019, Bangladesh's was the world's seventh fastest growing economy with
a rate of 8.3% real GDP annual growth. Dhaka and Chittagong are the
principal financial centers of the country, being home to the Dhaka Stock
Exchange and the Chittagong Stock Exchange. The financial sector of
Bangladesh is the third largest in the Indian subcontinent. Bangladesh is
one of the world's fastest growing economies.
In the decade since 2004, Bangladesh averaged a GDP growth of 4.5%, that
has been largely driven by its exports of ready made garments, remittances
and the domestic agricultural sector. The country has pursued export-
oriented industrialisation, with its key export sectors include textiles,
shipbuilding, fish and seafood, jute and leather goods. It has also developed
self-sufficient industries in pharmaceuticals, steel and food processing.
Bangladesh's telecommunication industry has witnessed rapid growth over
the years, receiving high investment from foreign companies. Bangladesh
also has substantial reserves of natural gas and is Asia's seventh largest gas
producer. Offshore exploration activities are increasing in its maritime
territory in the Bay of Bengal. It also has large deposits of limestone. The
government promotes the Digital Bangladesh scheme as part of its efforts to
develop the country's growing information technology sector.

o As of 2020, Bangladesh's GDP per capita income is estimated as per IMF

data at US$5739 (PPP) and US$2064 (nominal). Bangladesh is a member of
the D-8 Organization for Economic Cooperation, the South Asian
Association for Regional Cooperation, the International Monetary Fund,
the World Bank, the World Trade Organization and the Asian
Infrastructure Investment Bank. The economy faces challenges of
infrastructure bottlenecks, bureaucratic corruption, and youth
unemployment.
 o Secret of success:

Ten years ago, if somebody had told me that Bangladesh would progress this
far, I wouldn’t have believed it. Now, however, I am in a position to explain
the phenomenon. While trying to decipher Bangladesh’s economic success,
pundits cite several crucial factors, including fulfilling electricity demands,
infrastructural development, political stability and food self-sufficiency. But
none of these achievements has been easy. When Sheikh Hasina’s
government tried to introduce and implement its policies, it often faced
enormous political risks and implications.

Take the electricity crisis for example. When the Awami League re-assumed
power a decade ago, the country was grappling with suffocating power
outages. These days, however, we produce more electricity than we need at
night and are close to eradicating any forms of power shortages once and for
all.

When she returned to power in 2009, Sheikh Hasina knew that the energy
shortage first needed to be mitigated to a tolerable extent, before embarking
on long-term plans. As a temporary measure, she decided to allow private
companies to build small-range power plants, known as quick-rental power
plants. The decision received a barrage of criticism from many quarters —
from opposition parties and economists to the press and think tanks —
intimidating many in the bureaucracy.

But Sheikh Hasina refused to back down from what she thought was the right
step forward. She defended her decision forcefully, making necessary
amendments to clear any legal ambiguity, and focused on its implementation.
Nearly 10 years on, no one doubts that the decision was instrumental in
solving the persistent energy crisis.
o Indeed, the single most decisive factor behind Bangladesh’s startling
success is that Sheikh Hasina has infused a sense of confidence in our
national psyche. Oftentimes, she has done so while defying great odds.
The Padma Bridge, which the government decided to self-fund after the
World Bank’s withdrawal is, perhaps, a perfect example of this.

The success of the IT industry is controlled through the digital

transformation and ongoing economic growth of Bangladesh.

It exports nearly $1 billion of technology product every year. A figure

that the government expects to increase to $5 billion by 2021 the
country also has 6 million IT freelancers.

Bangladesh has seen wide improvements in health education infant

mortality and life expectancy, according to Daniel gay of the United
nation Department of economic and social affairs.

o References :
- Wikipedia
- Bdnes24.com
- https://www.weforum.org/agenda/2019/11/bangladesh-gdp-
economy-asia/
- https://www.dw.com/en/bangladesh-economy-50-years-on/a-
57015896
- https://www.weforum.org/agenda/2019/10/the-secret-to-
bangladesh-s-economic-success-the-sheikh-hasina-factor/