Reduce inequality while maintaining pace of growth

Bangladesh has witnessed constant economic growth in the last ten years. However, the growth is entangled with problems like marginalisation and inequality. Thus, to reduce inequality while maintaining this pace of growth the focus should be on qualitative changes in the upcoming decade to ensure inclusive development.

CPD shared this evidence based analysis of Bangladesh’s development in the last decade in a press briefing where a study titled “State of Bangladesh Economy and Upcoming National Elections: Priorities for Electoral Debates” was presented by Professor Mustafizur Rahman, Distinguished Fellow, CPD. The event was organized on Sunday 9 December 2018 at BRAC Centre Inn Auditorium, Dhaka.

The main objective of this study is to aware people so that an effective electoral debate can take place which would be helpful to ensure the exercise of accountability.  At the same time, it will motivate people to evaluate actions of newly elected government.

The study found a robust economy during the first half of the past decade. On the contrary, the second half is entrapped with mismanagement in banking sector and capital market as well as in public expenditure. Nonetheless, this period is observed to have inequality in income, consumption and asset possession by different group of people of the society. Moreover, increased number of youth unemployment is quite evident. Significant discrimination towards marginalised people and institutional ineffectiveness are also seen in this period. The second half also coincided with the period characterised by lack of political competition.

The analysis has put emphasis on a number of issues among which quality education and quality health service for all, creating entrepreneurs to reduce rate of unemployment, providing incentives for agricultural sector and establishing agri-based industry, developing labour-intensive  small and medium scale industry and ensuring social protection for all group of people are highlighted ones. Besides, the research has found expanding direct tax collection quite important as a source of revenue to use in productive sectors.

While answering questions by journalists, Dr Debapriya Bhattacharya said political parties must mention in their manifesto about their work plan along with the process and financing source.

The study was prepared under CPD’s flagship programme Independent Review of Bangladesh’s Development (IRBD) and Dr Debapriya Bhattacharya and Professor Mustafizur Rahman, Distinguished Fellows, were in overall charge of the study. Dr Fahmida Khatun, Executive Director; Dr Khondaker Golam Moazzem, Research Director; and Mr Towfiqul Islam Khan, Senior Research Fellow, were among lead contributors of the study. Mr Towfiqul Islam Khan was the Coordinator of the CPD IRBD 2018 Team.