Bangladesh - Belgium

Citizens’ Voice and Accountability Evaluation – Bangladesh Country Case Study
Private sector growth in Bangladesh has had a transforming effect on economic opportunities,
particularly for women. While remaining primarily an agrarian economy, relying on large-scale
subsistence farming, Bangladesh’s non-tradeable (construction, services and small scale industry)
and tradeable sectors (manufacturing and fisheries) have grown rapidly in recent years. The rapid
growth in tradeable manufactures has dramatically transformed the labour market by bringing huge
numbers of women into the non-traditional garment sector. Observers note the beginnings of a
social transformation taking place, with social and gendered hierarchies under the traditional rural
economy beginning to break down as economic modernisation and diversification take hold.
Bangladesh faces a number of serious challenges, however, as a result of rapid economic growth,
population growth and urbanisation. 47 It is estimated that the population may be 200 million by
2035, and 240 million by 2050, in a country the size of UK. In 2005 it was estimated that 35 million
people (25% of the population) lived in urban areas. This could rise to 80 million by 2030. Dhaka
will be among the world’s largest mega cities, with major implications for social and economic
infrastructure needs as well as urban governance.
Certainly, Bangladesh has sustained good growth rates, and seen poverty reduced significantly,
over the past decade or so. However, growth has not benefited all equally: income growth of the
poorest Bangladeshis is significantly lower than that of the richest, and these differences are
particularly stark in urban areas. Some 40% of the population lives on less than $1 a day; and 83%
on less than $2 a day. Almost 20 million (over 7%) are extreme poor, living on less than $0.3 a
day.
Table C.2.
Selected Economic Indicators
Indicator/year ‘96 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06
GDP growth % 4.62 5.27 4.42 5,62 6.27 5.96 6.71
Manufacturing 6.41 6.68 5.48 6.75 7.10 8.19 10.45
growth %
Industrial growth % 6.98 7.44 6,53 7.26 7,60 8.28 9.56
Agricultural growth 3.10 3.14 0.01 3,08 4.09 2.21 4.49
%
Foreign Direct
Investments (FDI)
inflow US $mill
14 79 53 268 460 800 -
There is a general consensus among the major political parties that Bangladesh should be a
market-based democracy.
C.2. Mapping and key features of main actors
Political parties
There are approximately 40 registered political parties in Bangladesh but the most influential are
the Bangladesh National Party (BNP), the Awami league (AL), Jatiya Party (JP) and the Jamaat-e-
Islami Party. The Communist Party (Jatiyo Samjtranick Dal) has a relatively small following but is
forceful.
47 DFID (2007). “Country Fact Sheet”, Dhaka, DFID Bangladesh, December. Available at
http://www.dfid.gov.uk/pubs/files/bangladesh_factsheet.pdf.
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