Global Financial Crisis And
Lessons For Bangladesh
1 2
STRENGTHENING
RMG SECTOR
Bangladesh had a low export growth from RMG sector
during the GFC years. There is a necessity of bringing
down the supply side constraints to ensure competitive
advantage.
3
IMPORTANCE OF
FINANCIAL SECTOR
REGULATION
The GFC demonstrated the importance of strong
regulation in the financial sector to prevent systemic
risks and ensure the stability of the financial system.
Bangladesh should consider strengthening its regulatory
framework to better oversee the banking sector and
prevent similar crises from occurring in the future.
5 6
THE DANGERS OF
HIGH LEVELS OF DEBT
The GFC highlighted the risks associated with high
levels of debt, particularly in the financial sector.
Bangladesh should be cautious about excessive
borrowing and encourage greater fiscal discipline to
reduce its debt burden and ensure financial stability.
DIVERSIFYING
EXPORT BASKET
The export basket of Bangladesh had been
consisted mostly of woven and knit RMG back
then. But it was seen that exports such as leather,
shrimp and fishing and food processes were
positively affected by the crisis. So, a necessity is
there to diversify the export basket.
4
FINANCIAL SECTOR
DIVERSITY
The crisis showed the dangers of excessive
reliance on a single sector of the economy,
such as the housing market in the US.
Bangladesh should aim to promote a more
diverse and resilient financial sector that can
better withstand external shocks.
MACROECONOMIC
STABILITY
The crisis demonstrated the importance of
macroeconomic stability, including low inflation
and sustainable fiscal and monetary policies, for
sustained economic growth and development.
Bangladesh should continue to focus on
maintaining macroeconomic stability.
Hasin Jawad Ali, ID:200061107