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Bangladesh - Belgium

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Citizens’ Voice and Accountability Evaluation – <strong>Bangladesh</strong> Country Case Study<br />

Indicator 2006<br />

percentile<br />

rank<br />

Cf 2006<br />

percentile<br />

rank<br />

India<br />

Cf 2006<br />

percentile<br />

rank<br />

Pakistan<br />

Comment (by authors)<br />

Political stability<br />

and absence of<br />

violence<br />

Government<br />

effectiveness<br />

Regulatory<br />

quality<br />

8.7 22.1 4.8 Deteriorating-but this last measure made in<br />

2006, which was particularly tumultuous<br />

23.7 54 34.1 Worsening<br />

20.0 48.3 38.5 Slight improvement since 2002<br />

Rule of law 22.9 57.1 24.3 Worsening<br />

Control of 4.9 52.9 18 Poor and worsening<br />

corruption<br />

Data from http://www.developmentdata.org/governance.htm<br />

Corruption<br />

A United Nations Development Programme (UNDP) report noted that corruption is taking a heavy<br />

toll on the <strong>Bangladesh</strong> economy, causing hundreds of millions of dollars' worth of loss in terms of<br />

unrealized investment and income (Mustafa, 1997). The report pointed out: "If <strong>Bangladesh</strong> were to<br />

improve the integrity and efficiency of its bureaucracy, its investment would rise by more than five<br />

percentage points and its yearly GDP rate would rise by over half a percentage point" (Mustafa,<br />

1997).<br />

Transparency International placed <strong>Bangladesh</strong> at the bottom of the corruption table (Corruption<br />

Perception Index) for four years running from 2002 -5.<br />

Economic structures and institutions<br />

The economy of <strong>Bangladesh</strong> is one of the most vulnerable economies in the world characterized<br />

by an extremely high population density, low resource base, high incidence of natural disasters,<br />

and persistent socio-political instability, especially during the initial years following Independence. 46<br />

Through the 1980s and beyond, observers, infused with “economic pessimism” characterised<br />

<strong>Bangladesh</strong> as a country unable to make the transition to modernity.<br />

In recent years this pessimism has given way to a recognition that <strong>Bangladesh</strong> is now a lead<br />

performer amongst LDCs, graduating into the league of “medium human development” according<br />

to the UNDP. Per capita GDP has been growing at an extremely healthy rate of 6-7% (compared<br />

to 1.6% in the 1980s and 3% in the 1990s) and recent figures show a significant drop in poverty<br />

incidence.<br />

This performance has been aided by a shift to a more “market responsive” economy, built on<br />

macroeconomic stability, democratic governance, a growing emphasis on private sector growth as<br />

the engine of the economy, liberalisation and outward orientation.<br />

46 Sen B, M K Mujeri, and Q Shahabuddin (2004). “Operationalising Pro Poor Growth: A Case Study on <strong>Bangladesh</strong>”,<br />

unpublished, October. Available at http://www.dfid.gov.uk/pubs/files/oppgbangladesh.pdf.<br />

66

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