Originally posted in The Business Standard on 26 October 2024
BIPSS: Bangladesh may become a key player in regional economy with right reforms
Bangladesh Institute of Peace and Security Studies (BIPSS) President Major General (Retd) ANM Muniruzzaman has expressed optimism that Bangladesh could achieve sustainable development and establish itself as a key player in the regional economy with the right reforms.
He urged the stakeholders across sectors to contribute towards a shared vision of “Bangladesh 2.0” that could meet the aspirations of its citizens and the demands of a global economy.
The expert made the remarks at a “Policy Café” titled “Bangladesh 2.0: Reimagining our Economic Future,” held in Dhaka organised by the BIPSS recently.
The event gathered distinguished personalities, economic experts, representatives from different organisations, journalists and business pioneers who examined the opportunities and challenges facing Bangladesh as it moves towards a new economic vision.
The discussion moderated by Muniruzzaman featured insights from the keynote speakers- Dr Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD), and Fahim Mashroor, founder and CEO of Bdjobs.com.
In the opening remarks, Shafqat Munir, senior research fellow and head of BCTR at BIPSS, described that Bangladesh has emerged as a significant player in the global economy, demonstrating remarkable resilience and growth.
Its thriving ready-made garment industry has propelled exports and created numerous jobs. However, challenges persist. Dependence on this single sector exposes the economy to global market fluctuations, he said.
“Addressing infrastructure bottlenecks, improving education, and promoting sustainable development are crucial to ensuring long-term economic prosperity. While Bangladesh faces obstacles, its potential is immense. By capitalizing on its young workforce, strategic investments, and a favorable business environment, it can secure a brighter economic future,” Munir said.
BIPSS President Muniruzzaman highlighted that Bangladesh is at an economic crossroads, facing complex challenges from inflation and trade imbalances to the sustainability of foreign reserves and remittance flows.
He emphasised the importance of strategic policy direction to safeguard and develop Bangladesh’s economic future, especially considering the need to address a widening income gap, a fragile banking sector, and looming issues in energy and food security
Dr Fahmida Khatun provided an in-depth overview of macroeconomic indicators, addressing issues such as the tax-to-GDP ratio, banking sector inefficiencies, and inadequate governance in key sectors.
She urged for an economic shift beyond reliance on GDP growth statistics to address employment, investment, and productivity metrics more substantively.
“In achieving a transformative shift to ‘Bangladesh 2.0,’ we must look at reforming not only our domestic economic policies but also better aligning with global economic trends,” she said.
Dr Fahmida highlighted the need to improve foreign direct investment (FDI) inflows and prepare human capital to align with global economic demands, particularly in technology and services.
She also underscored the importance of STEM education and digital upskilling as essential for Bangladesh to remain competitive as it transitions from an LDC to a developing economy in 2026.
She stressed that reliance on traditional sectors like garment manufacturing is no longer sufficient and called for policy incentives to stimulate investment in emerging industries such as information technology and services.
Fahim Mashroor discussed the pressing issue of youth unemployment. With Bangladesh’s youth demographic at a historic high, Mashroor emphasized the urgent need for structural reforms to create viable employment opportunities.
He noted that despite over two million graduates entering the job market each year, a significant percentage remain unemployed, indicating a critical gap between educational output and market demand.
“Our demographic dividend could turn into a demographic challenge if we fail to address youth unemployment effectively,” he cautioned.
Mashroor suggested strengthening small and medium enterprises (SMEs) as key players in job creation and proposed policy measures that would provide easier access to credit and business development services for these enterprises.
During an engaging interactive session, the audience raised questions on critical areas such as foreign investment, energy security, and economic resilience in the face of global supply chain disruptions.
Participants from academia, the business community, and policy-making circles shared insights on strengthening food security by diversifying import sources and enhancing domestic agricultural productivity.
Dr Fahmida echoed these views, stating, “Bangladesh’s economy must diversify its export base and reduce reliance on a few primary sectors to ensure long-term resilience.”
Additionally, the panelists discussed the need to address corruption, improve banking regulations, and introduce a more robust financial ecosystem that could facilitate growth in underdeveloped rural areas.
Press Reports: The Business Standard | UNB | New Age