Bangladesh - Independent Evaluation Group - World Bank

2. Bangladesh Country Context
2.1 Bangladesh is one of the world’s poorest and most densely populated countries with
an annual per capita income of $652 (Atlas method), and 160 million inhabitants living in a
landmass area of 147,570 square kilometers. The geography of Bangladesh is especially
relevant to its political and socioeconomic background. The topography of the country
consists of five major river systems that drain over 700 rivers, mostly into the Bay of Bengal.
This includes three major rivers: the Ganges, Brahmaputra, and Meghna. Bangladesh forms
only a small part of a large regional hydrologic system—less than 10 percent of the river
basin falls within the national territory. The land consists of alluvial plain. Given the
country’s geographic location it is subject to annual cyclones and flooding. Bangladesh
consists of primarily one ethnic group, Bengalis, who comprise 98 percent of the population,
and a small minority tribal population comprising approximately 2 percent of the population.
2.2 Bangladesh, formerly known as East Pakistan and before that as the East Bengal
region of British India, gained its independence from Pakistan following a civil war in
December 1971. The country has experienced a variety of forms of government since
independence. The current system is the outcome of a parliamentary system that was reintroduced
in 1991. Democratic elections in 1991, 1996, and 2001 followed two decades of
authoritarian rule. A Caretaker Government was instituted for 90 days in late 2006 to oversee
an election. Due to civil unrest, it stayed in office through the end of 2008, backed by the
military, with the aim of restoring peace and democracy. Elections were held in 2008 and
were deemed free and fair by international observers. The election outcomes resulted in a
peaceful transfer of power to an Awami League government led by Prime Minister Sheikh
Hasina Wajed. The Awami League won 230 out of a possible 300 seats in the Parliament,
granting it an absolute majority.
2.3 Although Bangladesh has a multi-party parliamentary system, the government
alternates between the two major parties—the Bangladesh Awami League and the
Bangladesh Nationalist Party (BNP)—with smaller parties joining coalitions to support them.
The political system is characterized by divisive party politics. Rivalrous political discourse
between the parties creates a fragile and contentious political environment. When in
opposition, both parties have sought to regain political control through parliamentary
boycotts, political demonstrations, hartals (labor strikes), and transport blockades. These
activities have often succeeded in disrupting economic activities and immobilizing the
government.
2.4 At first glance Bangladesh is a paradox, with strong economic growth (real gross
domestic product (GDP) growth about 6 percent since 2003, up from an average 4.2 percent
from 1986-96), good performance on health and education, poverty reduction (from 60
percent in 1990 to 40 percent in 2005), and a reduction in official development assistance to
less than 2 percent of GDP— alongside weak governance and pervasive corruption. The
reasons include strong macroeconomic policy, pro-poor spending, credible elections, export
growth and remittances, improved capacity for managing natural disasters, and a stronger
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