Economy

Bangladesh lies between latitudes 20° and 27°N, and longitudes 88° and 93°E.
Bangladesh is in the low-lying GangesBrahmaputra River Delta or Ganges Delta. This delta is formed by the confluence of the Ganges (local name Padma or Pôdda), Brahmaputra (Jamuna or Jomuna also known as "Yamuna"), and Meghna rivers and their respective tributaries. The Ganges unites with the Jamuna (main channel of the Brahmaputra) and later joins the Meghna to eventually empty into the Bay of Bengal.
The alluvial soil deposited by these rivers has created some of the most fertile plains in the world. Bangladesh has 57 trans-boundary rivers, making water issues politically complicated to resolve – in most cases as the lower riparian state to India.[47] Most parts of Bangladesh are less than 12 m (39.4 ft) above the sea level, and it is believed that about 10% of the land would be flooded if the sea level were to rise by 1 m (3.28 ft).[48]
In south east Bangladesh experiments have been done since the sixties to 'build with nature'. By implementing cross dams, the natural accretion of silt has created new land. With Dutch funding, the Bangladeshi government began to help develop this new land in the late 1970s. The effort has since become a multiagency operation building roads, culverts, embankments, cyclone shelters, toilets and ponds, as well as distributing land to settlers. By fall 2010, the program will have allotted some 27,000 acres (10,927 ha) to 21,000 families.[49]
The highest point in Bangladesh is in Mowdok range at 1,052 m (3,451 ft) in the Chittagong Hill Tracts to the southeast of the country.[50] Cox's Bazar, south of the city of Chittagong, has a beach that stretches uninterrupted over 120 kilometres (75 mi).
Straddling the Tropic of Cancer, Bangladeshi climate is tropical with a mild winter from October to March, a hot, humid summer from March to June. A warm and humid monsoon season lasts from June to October and supplies most of the country's rainfall. Natural calamities, such as floods, tropical cyclones, tornadoes, and tidal bores occur almost every year,[51] combined with the effects of deforestation, soil degradation and erosion. The cyclones of 1970 and 1991 were particularly devastating. A cyclone that struck Bangladesh in 1991 killed some 140,000 people.[52]
In September 1998, Bangladesh saw the most severe flooding in modern world history. As the Brahmaputra, the Ganges and Meghna spilt over and swallowed 300,000 houses, 9,700 kilometres (6,027 mi) of road and 2,700 kilometres (1,678 mi) of embankment 1,000 people were killed and 30 million more were made homeless with 135,000 cattle killed, 50 square kilometres (19.3 sq mi) of land destroyed and 11,000 kilometres (6,835 mi) of roads damaged or destroyed. Two-thirds of the country was underwater. There were several reasons for the severity of the flooding. Firstly, there were unusually high monsoon rains. Secondly, the Himalayas shed off an equally unusually high amount of melt water that year. Thirdly, trees that usually would have intercept rain water had been cut down for firewood or to make space for animals.[53]
Bangladesh is now widely recognized to be one of the countries most vulnerable to climate change. Natural hazards that come from increased rainfall, rising sea levels, and tropical cyclones are expected to increase as climate change, each seriously affecting agriculture, water & food security, human health and shelter.[54] It is believed that in the coming decades the rising sea level alone will create more than 20 million[55] climate refugees.[56] Bangladeshi water is contaminated with arsenic frequently because of the high arsenic contents in the soil. Up to 77 million people are exposed to toxic arsenic from drinking water.[57][58] Bangladesh is among the countries most prone to natural floods, tornados and cyclones.[59][60]

A major part of the coastline comprises a marshy jungle, the Sundarbans, the largest mangrove forest in the world and home to diverse flora and fauna, including the Royal Bengal Tiger. In 1997, this region was declared endangered.[61] The Magpie Robin is the National Bird of Bangladesh and it is common and known as the Doyel or Doel (Bengali: দোয়েল). It is a widely used symbol in Bangladesh, appearing on currency notes and a landmark in the city of Dhaka is named as the Doyel Chatwar (meaning: Doyel Square).The national flower of the country is water lily, which is known as Shapla. The national fruit is jackfruit (Artocarpus heterophyllus), which in Bengali is known as Kathal. In late 2010, the Bangladeshi government selected the Mango tree as the national tree.[62]

At April 2010, USA - based ratings agency Standard & Poor's (S&P) awarded Bangladesh a BB- for a long term in credit rating which is below India and well over Pakistan and Sri Lanka in South Asia.[63] And, despite continuous domestic and international efforts to improve economic and demographic prospects, Bangladesh remains a developing nation.[64] However, Bangladesh gradually decreased its dependency on foreign grant and loan from 85% (In 1988)[65] to 2% (In 2010) [66] for its annual development budget. Its per capita income in 2010 was US$641 compared to the world average of $8,985.[67] But, if purchasing power parity (PPP) is taken into account, Bangladesh's economy is the 44th largest in the world at US$257 billion according to the IMF.
Jute was once the economic engine of the country. Its share of the world export market peaked in the Second World War and the late 1940s at 80%[68] and even in the early 1970s accounted for 70% of its export earnings. However, polypropylene products began to substitute for jute products worldwide and the jute industry started to decline. Bangladesh grows very significant quantities of rice, tea, potato, mango, onion and mustard. According to FAOSTAT, Bangladesh is one of world's largest producers of:[69] Rice (4th), Potato (11th), Mango (9th), Pineapple (16th), Fruit, Tropical (5th), Onion (16th), Banana (17th), Jute (2nd), Tea (11th).
Although two-thirds of Bangladeshis are farmers, more than three quarters of Bangladesh’s export earnings come from the garment industry,[70] which began attracting foreign investors in the 1980s due to cheap labour and low conversion cost. In 2009-10 fiscal year the industry exported US$ 12.6 billion[71] worth of products where in 2002 the exported amount was US$ 5 billion. Recently Bangladesh has been ranked as the 4th[72] largest clothing exporter by the WTO (The World Trade Organization) .[73] The industry now employs more than 3 million workers, 90% of whom are women.[74] A large part of foreign currency earnings also comes from the remittances sent by expatriates living in other countries.

Jamuna Bridge: one of the longest bridges in South Asia
Obstacles to growth include frequent cyclones and floods, inefficient state-owned enterprises, mismanaged port facilities, a growth in the labour force that has outpaced jobs, inefficient use of energy resources (such as natural gas), insufficient power supplies, slow implementation of economic reforms, political infighting and corruption. According to the World Bank, "among Bangladesh’s most significant obstacles to growth are poor governance and weak public institutions."[75] Despite these hurdles, the country has achieved an average annual growth rate of 5% since 1990, according to the World Bank.
Bangladesh has seen expansion of its middle class (world's Fifty Forth largest, just below of Singapore & Vietnam), and its consumer industry has also grown. In December 2005, four years after its report on the emerging "BRIC" economies (Brazil, Russia, India, and China), Goldman Sachs named Bangladesh one of the "Next Eleven",[76] along with Egypt, Indonesia, Vietnam and seven other countries.
Bangladesh has seen a dramatic increase in foreign direct investment. A number of multinational corporations and local big business houses such as Beximco, Square, Akij Group, Ispahani, Navana Group, Transcom Group, Habib Group, KDS Group, Dragon Group and multinationals such as Unocal Corporation and Chevron, have made major investments, with the natural gas sector being a priority. In December 2005, the Central Bank of Bangladesh projected GDP growth around 6.5%.[77] In order to enhance economic growth, the government set up several export processing zones to attract foreign investment. These are managed by the Bangladesh Export Processing Zone Authority.
One significant contributor to the development of the economy has been the widespread propagation of microcredit by Muhammad Yunus (awarded the Nobel peace prize in 2006) through the Grameen Bank. By the late 1990s, Grameen Bank had 2.3 million members, along with 2.5 million members of other similar organisations.[78]

Leave a Reply