Basic Issues of Economic

Development of Bangladesh
Poverty
 The shortage of common things such
as food, clothing, shelter and safe
drinking water, all of which determine
the quality of life.

 It may also include the lack of access

to opportunities such as education and
employment which aid the escape from
poverty

 It could be lack of choice: “Beggars

cannot be choosers.”
Poverty
 Bangladesh has made good progress in
reducing poverty over the past decade despite
the series of external shocks which have
routinely affected the country.

 According to the World Bank, Bangladesh's

poverty rate fell from 82% in 1972, to 18.5%
in 2010, to 13.8% in 2016, and below 9% in
2018.

 Based on the current rate of poverty

reduction, Bangladesh is projected to
eliminate extreme poverty by 2021, first
nation in South Asia to do so.
Poverty among the Key Asian Nations
Causes of rural and urban poverty

 Remnants of colonialism
 Corruption
 geographical and demographic characteristics
 limited employment opportunities
 degraded environment
 bad housing and sanitation
 political instability
 Discrimination and social inequality
 Relationship of Death
Health & Poverty
Sickness

Spread of disease-causing
microbes

Weak resistance

Homelessness/ Unsanitary
Inadequate housing surrounding

Malnutrition

Illiteracy/Ignorance

Poverty

Unsustainable
Lack of investment Economic inequality
Family size
Dr. Ruby K. Payne distinguishes between

 Situational poverty, which can generally be traced to a specific

incident within the lifetimes of the person or family members
in poverty;

 Generational poverty, which is a cycle that passes from

generation to generation, and goes on to argue that
generational poverty has its own distinct culture and belief
patterns.
Situational
Poverty

 Stage-in-the-Family-Life-Cycle—poverty for those starting from

scratch or those who are in their sunset years have become
unemployed
 Lifetime poverty—poor from cradle to grave but their children
might manage to be better off
 Acquired poverty—those who became poor because accident,
illness, abuse, abandonment, gambling, alcoholism, etc.

Intergenerational poverty
passing on poverty to the next generation
Bangladesh Economic Outlook
The economy got off to a good start in the 2019 fiscal year, which began in
July. Remittance inflows increased at a healthy annual pace in July–October,
which helped to reduce external imbalances as reflected by a significant
year-on-year narrowing of the current account deficit in July–September. On
the political front, the Bangladesh National Party, the main opposition to the
ruling Awami League Party, announced in early November that it will
participate in the general elections scheduled for 30 December. They
boycotted the previous elections in 2014, which proved violent and were
criticized as unfair by many. Meanwhile, the U.S. government will send
observers to monitor the elections and make funding available for other
domestic observers, too.
Bangladesh Economic Growth

Economic growth is likely to slow this fiscal year, although should remain
robust due to strong private consumption and investment. However,
political uncertainty, long-standing risks of natural disasters, a shaky
global trade environment and a struggling domestic banking system all
cloud prospects. The expected GDP to expand 7.3% in FY 2019, which
is unchanged from last month’s forecast, and 7.2% in FY 2020.
NGO Sector in Bangladesh
 The social development scene in
Bangladesh is characterized by a
strong presence of non-governmental
organizations (NGOs).

 With assistance from foreign donor

agencies, they expanded their activities
to deliver a variety of services
including microcredit, essential
healthcare, informal education, women
empowerment and rights advocacy.
Principal Activities of NGOs

 Access to Credit for Poor and People in Distant Areas

 NGO Role in Social Intermediation and Empowerment of
Women
 NGOs as Entrepreneurs in Delivery of Social Services
 NGOs as Entrepreneurs in Commercial Activites
 NGO Foundation
 The Government of the Peoples’ Republic of Bangladesh has
established Bangladesh NGO Foundation to support the NGOs,
with a view to associate the Non-Governmental Organizations
in the process of achieving Millennium Development Goal.

 he Foundation was established through a Resolution of the

Government on 02 December 2004 that was published in the
Bangladesh Gazette on 11 December 2004.
 NGO Foundation
 The FOUNDATION was then registered a non-profit
association within the meaning of Section 28 of the
Companies Act, 1994 and is established for financing Non-
Governmental Organization (NGOs) and other voluntary
organizations including Community Based Organizations
(CBOs) duly registered under the relevant laws of Bangladesh
and working in the country for providing basic social services
such as education, nutrition and health, sanitation support,
safe drinking water, environmental protection and any other
services needed by the poor, the ultra poor, women and
children and the ethnic minorities.
 Microcredit Program
 Microcredit is the extension of very small loans
(microloans) to impoverished borrowers who
typically lack collateral, steady employment, or a
verifiable credit history.

 Modern microcredit is generally considered to

have originated with the Grameen Bank founded
in Bangladesh in 1983.
 Microcredit Program
 Loanamounts up to BDT 50,000 are generally
considered as microcredit; loans above this
amount are considered as microenterprise loans.
 Microcredit Program
microcredit is widely used in
developing countries
tool for poverty alleviation.
reduce feminization of poverty
 Dark side
Criticsargue that microcredit has not had a
positive impact on
gender relationships,
does not alleviate poverty,
led many borrowers into a debt trap
and constitutes a "privatization of welfare"
 Microcredit Regulatory
Authority
The Microcredit Regulatory Authority (MRA) has been
established by the Government of the People’s Republic
of Bangladesh under the "Microcredit Regulatory
Authority Act 2006” to promote and foster sustainable
development of microfinance sector through creating an
enabling environment for NGO-MFIs in Bangladesh.
MRA is the central body to monitor and supervise
microfinance operations of NGO-MFIs. License from
the Authority is mandatory to operate microfinance
operations in Bangladesh as an NGO.
Microcredit Regulatory Authority
 Responsibility of MRA
According to the Act, the MRA will be responsible for
the three primary functions that will need to be carried
out, namely:
 Licensing of MFIs with explicit legal powers;
 Supervisionof MFIs to ensure that they continue to
comply with the licensing requirements; and
 Enforcement of sanctions in the event of any MFI failing
to meet the licensing and ongoing supervisory
requirements.
 OCEAN/BLUE ECONOMY
FOR BANGLADESH
 Oceans cover 72% of the surface of our blue
planet and constitute more than 95% of the
biosphere.
 Oceans provide a substantial portion of the
global population with food and livelihoods and
are the means of transport for 80% of global
trade.
 Healthy oceans are essential for global food
security, livelihoods and economic growth.
 OCEAN/BLUE ECONOMY
FOR BANGLADESH
 Framework for Sustainable Development
 The Blue Economy conceptualizes oceans and
seas as “Development Spaces”
integratesconservation, sustainable use of living
resources, oil and mineral wealth extraction, bio-
prospecting, sustainable energy production and
marine transport.
 OCEAN/BLUE ECONOMY
FOR BANGLADESH

 Balancing Growth and Conservation

 Governments, policy makers and international
institutions keen to boost food security and
eradicate poverty face a careful balancing act
between conservation and growth.
 OCEAN/BLUE ECONOMY
FOR BANGLADESH
 Balancing private sector growth and equitable
benefits for communities
Globally, fish provide about 3 billion people
with almost 20 percent of their average per
capita intake of animal protein.
Over 90% of small-scale fisheries come
primarily from developing countries.
In some countries, fish accounts for more than
50 percent of the animal protein intake.
 The Blue Economy –
Opportunities
Shipping and Port Facilities
80 percent of global trade by volume, and over
70 per cent by value, is carried by sea and
handled by ports worldwide.
Coastal countries need to position themselves in
terms of facilities and capacities to cater for this
growing trade and optimize their benefits.
 The Blue Economy –
Opportunities
Fisheries
Fish accounts for 15.7% of the animal
protein consumed globally. The value of
fish traded by developing countries is
estimated at US$ 25 billion making it
their largest single trade item.
 The Blue Economy –
Opportunities
 Tourism
Trends in aging populations,
rising incomes and relatively low transport costs
will make coastal and ocean locations ever more
attractive.
Cruise tourism is the fastest growing sector in the
leisure travel industry;
 The Blue Economy –
Opportunities
 Energy
In2009 offshore fields accounted for 32% of
worldwide crude oil production and this is
projected to rise to 34% in 2025
Ocean offers enormous potential for the
generation of renewable energy –wind, wave,
tidal, biomass, thermal conversion and salinity
gradients
 The Blue Economy –
Opportunities
 Biotechnology
 Marine biotech has the potential to address a suite of
global challenges such as sustainable food supplies,
human health, energy security and environmental
remediation.
 Marine bacteria are a rich source of potential drugs.
 The sector is expected to emerge as a niche market
focused on high-value products for the health, cosmetic
and industrial biomaterials sectors.
 By 2020, it could grow as a medium-sized market,
 The Blue Economy –
Opportunities
Submarine mining,
elements, such as yttrium, dysprosium and
terbium, important in new ICT hardware and
renewable energy technologies.
Global annual turnover of marine mineral mining
can be expected to grow from virtually nothing
to €5 billion in the next 10 years and up to €10
billion by 2030
 The Blue Economy –
Opportunities
Submarine mining,
elements, such as yttrium, dysprosium and
terbium, important in new ICT hardware and
renewable energy technologies.
Global annual turnover of marine mineral mining
can be expected to grow from virtually nothing
to €5 billion in the next 10 years and up to €10
billion by 2030