The Rise and Fall of Bangladesh’s Economy and the Lessons In It

The Rise and Fall of Bangladesh’s Economy and the Lessons In It. Bangladesh, once considered an economic underdog, has transformed into a powerhouse in the global ready-made garments (RMG) industry, surpassing even India in exports. However, the country’s economic miracle is now facing significant challenges, signaling the end of an era that once inspired neighboring nations like India.

In the past, Bangladesh was often referred to as a “basket case,” a term used to describe a nation with seemingly insurmountable economic problems. Yet, through strategic development and an industrious workforce, the country managed to build a world-class RMG industry.

This sector became the backbone of Bangladesh’s economy, driving exports and creating millions of jobs. For years, Bangladesh’s economic growth was lauded as a model for other developing nations, particularly India. The country’s ability to create jobs, empower women, and improve social indicators attracted global attention.

Despite these achievements, recent developments have cast a shadow over Bangladesh’s economic success. The political landscape, dominated by Sheikh Hasina’s government, has become increasingly dictatorial, stoking popular discontent.

This growing unrest culminated in Hasina’s removal from office, a turning point that marked the beginning of Bangladesh’s economic decline. The immediate catalyst for her ousting was the introduction of job quotas for the grandchildren of 1971 freedom fighters.

In a country where millions of educated youth are struggling to secure limited government jobs, this move sparked widespread anger and disillusionment. The quotas were seen as unfair and out of touch with the needs of the broader population, further fueling the already simmering frustrations.

Interestingly, Bangladesh’s social indicators have outperformed those of India in several key areas. The country boasts a lower fertility rate, higher life expectancy, and a significantly higher rate of female workforce participation.

These factors have contributed to stronger female empowerment, which in turn has supported Bangladesh’s economic rise. However, these same social advancements may now be contributing to the country’s challenges.

As more women enter the workforce, the competition for jobs has intensified, particularly in a market already saturated with educated but unemployed individuals. This has led to increased dissatisfaction among the population, particularly among the youth, who feel that their prospects for a better future are slipping away.

The rise and fall of Bangladesh’s economy offer important lessons for other developing nations.

Economic growth driven by a single industry, like the RMG sector, can be both a blessing and a curse. While it can lead to rapid development and job creation, it can also create vulnerabilities if the industry faces challenges or if the benefits of growth are not evenly distributed across the population.

Moreover, the experience of Bangladesh underscores the importance of inclusive governance. Policies that favor a select few, such as the job quotas for freedom fighters’ descendants, can quickly erode public trust and lead to widespread unrest.

To sustain long-term growth, it is essential for governments to address the needs of the entire population, particularly the youth, who represent the future of the nation.

Bangladesh journey from a struggling economy to a global RMG leader is a remarkable story of transformation. However, the recent downturn serves as a stark reminder that economic miracles can be fleeting if not supported by inclusive policies and strong governance. As Bangladesh grapples with these challenges, the world will be watching closely, eager to learn from both its successes and its setbacks.