The economic progress of Bangladesh under the leadership of Prime Minister Sheikh Hasina is widely lauded by many international institutions and scholars. As we all know, once a part of Bangladesh, the then-West Pakistan’s rulers and scholars were critical to the Bengali leadership and the capacity of then-East Pakistan’s people. But very evidently, they have made their turn in appreciating the growth rate, and the development of the human resource quality largely.
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Pakistani scholars are showing their strong voice to count the recent economic pace of our country. They put optics to highlight Bangladesh’s economic stability with a note that per capita income has now surpassed that of India and Pakistan. The progress in Bangladesh is becoming increasingly evident, raising the possibility of it becoming a developed country in the region in the coming decades. This recognition underscores the diligent efforts of the Bangladesh government to enhance the socio-economic conditions of its people.
As the January 7, 2024, general election in Bangladesh approaches, scholars from Pakistan have offered optimistic views on Bangladesh’s development stability. According to a report by ‘The News International,’ a renowned national English daily in Pakistan, a seminar titled ‘The East Pakistan Tragedy Revisited: Contemporary Concerns’ was held on December 16. The seminar delved into the historical failure of Pakistani politicians, military, and bureaucracy in promoting diversity in what was then East Pakistan (now Bangladesh).
The speakers included Quaid-i-Azam University School of Politics and International Relations Director Dr Farhan Hanif Siddiqui, Institute of Business Administration Karachi Executive Director Dr S Akbar Zaidi, former dean of the University of Karachi Faculty of Social Science Dr. Moonis Ahmar and The Pakistan Institute of International Affairs (PIIA) member Zafar Shafique. Pak Scholars argued that the enforced hegemony for nation-building in East Pakistan failed due to the denial of ethnic diversity. The separation of East Pakistan in 1971 was a result of years-old oppression, forcing Bengalis to resist. West Pakistan continued colonialism in its eastern wing, forcing it to become Bangladesh.
The trajectory of Bangladesh’s growth is indeed intriguing. Surpassing both India and Pakistan, Bangladesh now boasts a higher average income for its citizens. This economic ascent, ongoing for several years, marks a notable transformation from its position lagging behind its South Asian counterparts two decades ago.
In the realm of GDP per capita, Bangladesh has not only caught up with but outpaced both India and Pakistan, two of the largest countries in South Asia, within just 50 years of gaining independence. After 53 years, the realization of the dreams that fueled the sacrifices of the country’s freedom fighters is evident. This success is attributed to the sincere efforts of the Bangladesh government in driving socio-economic development.
The Bangladeshi path to modernization, centered around its people, plays a pivotal role in safeguarding and enhancing human rights. Bangladesh’s commitment to human rights is reflected in its overarching goal of ensuring comprehensive development. Recognized as the world’s fastest-growing brand nation, Bangladesh stands as an unprecedented model of economic development and a source of inspiration for successful poverty eradication.
Over the past fifteen years, the government has prioritized agriculture, resulting in Bangladesh achieving self-sufficiency in food grains. Despite challenges such as reduced arable land, rice production has nearly doubled in the last 53 years. The growth extends beyond grains to encompass fish, meat, eggs, milk, and fruit. This success is attributed to the government’s agricultural policies, including substantial contributions to mechanization, machinery subsidies, and research.
Bangladesh’s socio-economic progress is also propelled by the inherent entrepreneurial spirit of its people and their adaptability to environmental changes, marking a significant stride towards a prosperous future.
Bangladesh’s Transformation into a Developing Country
The past ten years mark what can be aptly termed as Bangladesh’s ‘golden age’ of progress, characterized by the successful attainment of the majority of Millennium Development Goals. This remarkable achievement garnered Bangladesh nearly a dozen major international awards. Notably, the nation transitioned from the status of a Least Developed Country to a Lower-Middle Income Country, meeting the criteria twice, in 2018 and 2021, to officially become a Developing Country.
Critical to this transition were the macroeconomic measures implemented by the government, contributing to a steady economy that attracted increased investment. In fact, Bangladesh, with the highest average Gross Domestic Product (GDP) over the last decade, closely trails behind China.
Simultaneously, the government has spearheaded significant infrastructure-based megaprojects aimed at improving the business climate. With widespread access to power and roads across almost every upazila, markets, and growth hubs are interconnected, fostering more vibrant economic activity.
Reflecting on Bangladesh’s journey since its independence in 1971, when it was referred to as a ‘bottomless basket,’ the nation has overcome a history of exploitation and misery. Over the last two decades, Bangladesh has consistently outperformed Pakistan and India across various economic and social indicators, including life expectancy, literacy rates, and women’s empowerment.
According to estimates from the International Monetary Fund (IMF), Bangladesh has surpassed India in per capita income for four consecutive years and has outperformed Pakistan for eight consecutive years. Presently, Bangladesh boasts a GDP per capita of $2,621, surpassing Pakistan’s $1,471 and India’s $2,612.
Bangladesh Surpasses India in GDP per Capita for the First Time
The year 2020 marked a significant milestone for Bangladesh as it surpassed India in terms of GDP per capita, with Bangladesh recording $1,888 per person compared to India’s $1,877. India’s economy faced contraction due to various factors, including the strict COVID lockdown and a business downturn, while Bangladesh’s economy demonstrated resilience by maintaining its GDP despite the pandemic.
Over the last two decades, both Bangladesh and India experienced relatively slow economic growth. However, in 2017, their paths diverged, with Bangladesh’s economy continuing to expand while India struggled to keep pace. In the fiscal year 2018–19, Bangladesh achieved an impressive GDP growth of almost 8%.
In the demographic realm, Bangladesh’s population grew by 18% in the last 15 years, compared to India’s 21% growth. This population dynamic has influenced per capita income, which has seen notable shifts. In 2007, Bangladesh’s GDP per capita was only half of India’s, and by 2016, Bangladesh surpassed Pakistan in GDP per capita, reaching $1,659 compared to Pakistan’s $1,468.
The concept of Purchasing Power Parity (PPP) is crucial in understanding a nation’s wealth, and Bangladesh ranks ahead of Pakistan but behind India in this regard. Despite its economic achievements, Bangladesh stands out in global development with a higher index than its neighbors, India and Pakistan. Positioned as a rising economy, Bangladesh now holds the 35th rank globally. The future outlook is optimistic, with hopes that Bangladesh will continue to advance confidently with its unique strengths.
