According to the newest findings from the Bangladesh Bureau of Statistics (BBS), the average monthly income in the nation has increased from Tk3,940 in 2016 to Tk7,614 in 2022 -- nearly doubling in the span of six years. While this is certainly good news, we need to bear in mind that growth, unless experienced equitably across the whole nation and all socioeconomic groups, does not count towards much when discussing economic progress.
Indeed, according to the same BBS findings, a notable shift in wealth concentration among the affluent was observed which contributes greatly to increased income inequality as the top 10% earners in Bangladesh command about 41% of the country's total income. In fact, income inequality has risen to 499 decimal points in 2022 from around 482 decimal points back in 2016.
While the average income has seen an increase in the past few years it is worth noting that the effects of the current inflation, especially right after the twin blows of the Covid-19 pandemic and world events such as Russia’s invasion of Ukraine, has most likely put a damper on that growth. As things stand, the only guaranteed way for Bangladesh to ensure equitable growth relies on factors such as widening our tax net, the generation of employment, and the gradual decentralization of our economy away from the capital city Dhaka.
The first two factors are obvious enough, but the latter will need genuinely forward-thinking policies which start taking each and every corner of the nation into account. The government, along with our policy-makers need to ensure that other parts of the country are also established as prominent centres for economic activity -- as this would reduce the immense pressure that Dhaka is still prone to -- and reduce the myriad issues that arise from an overtly centralized infrastructure and economy.
Bangladesh stands at a critical juncture in its economic trajectory, a juncture where we can still ensure that any and all growth is equitable and fair.