The Commonwealth Trade and Investment Forum, held in Dhaka earlier this month, highlights the growing global interest in Bangladesh and its fast-growing economy. Hundreds of international businesspeople, from as far away as Africa and the South Pacific, flocked to the nation’s capital in order to seize on the opportunities presented by modern Bangladesh. Increasingly, international businesses and investors count Bangladesh amongst the most promising nations in the world today.
Look at the figures, and it’s easy to see why. In 2022, the country saw top-line economic growth of 7.1%, with projected growth of 5.5% in 2023, and 6.5% in 2024. Foreign direct investment is up, at $2.9 billion, while the country remains the second largest exporter of apparel in the world.
Set to become the ninth largest consumer market globally by 2030, Dhaka has seen considerable infrastructure investment in recent years, including the new Dhaka Metro and a new third terminal at Dhaka Airport. At the same time, the city maintains some of the lowest electricity and water costs in the region, with as much as 55% savings on electricity costs compared to cities such as Karachi and Beijing.
However, these strong economic fundamentals alone are not enough to power Bangladesh’s development. In order to make the most of its economic potential, Bangladesh must improve its global cultural profile, leveraging soft power into hard cash. The success stories of the late 20th and early 21st centuries -- India, Dubai, Singapore -- have all coupled improvements to their regulatory environments with an attempt to craft a compelling narrative for investors and tourists alike.
Crude as it may seem, businesses and investors are far more likely to invest in a country that feels familiar. It isn’t just Dubai’s low taxes that attract international businesses -- people identify closely with the city’s global image as a playground for the uber-wealthy, one of the world’s great beacons of modernity and modernization.
By contrast, many of the world’s potentially profitable markets are saddled with poor global perceptions and are overlooked as a result of international ignorance.
There are lessons to be learned here from Modi’s India, which has successfully used its G20 Presidency to revise the country’s global image. By emphasizing India’s Vedic heritage, and drawing on authentic expressions of Indian culture, Modi has helped India to shed its old reputation as a country of crowded streets, acute poverty, and the Taj Mahal. The world now understands that Modern India is an entirely new nation, which blends ancient history with striking modernity. That compelling narrative, coupled with strong economic fundamentals, will see billions of dollars of investment flow into the country over the coming decades.
Bangladesh must do the same, leaving behind its reputation as a country beset with poverty and natural disasters. Instead of famines and floods, global perceptions of Bangladesh should focus on the region’s rich history and heritage. It is a great shame that for many Westerners, enduring memories of Bangladesh focus on the harrowing events of 1971, and the severe flooding that the country has endured over the past few decades.
Instead, Bangladesh’s international investment strategy should be bolder about celebrating the country’s history and heritage. For one, too little is made of the country’s textiles pedigree -- the global preponderance of Bengali textiles is by no means a new phenomenon. As long ago as the 4th century BC, the Greek geographer Megasthenes described Bengali muslins; the Romans were so inspired by the quality of Bengali fabrics that they described them as “woven air.”
Under the suzerainty of the Mughal Empire, Bengal was the wealthiest province in the empire, with an economy which exceeded many of Europe’s empires; in the 18th century, Dhaka alone was said to have contained over a million people. More recently, eminent writers such as Rabindranath Tagore and Kazi Nazrul Islam highlight the rich and complex spiritual life of the Bengali people.
With this pedigree firmly established, more should also be done to expand global knowledge about modern Bangladesh. Perceptions on the busy streets of Dhaka -- too few people know about the treasure-trove of wildlife that is the Sundarbans, or the ruined terracotta temples which dot the countryside.
Bangladesh should also make much more of its Commonwealth ties as part of this initiative. That vast, global network of fifty-six member states is bound together by innumerable personal, cultural, commercial, and historical ties, inextricably linking Bangladesh’s story to that of countries in every corner of the earth. Emphasizing that Commonwealth pedigree could help Bangladesh to leverage investment from traditional partners like the UK, Canada, and Australia, while also allowing it to draw on the vast capital reserves of Singapore and opening up access to markets in fast-growing Africa.
What should be immediately clear is that Bangladesh has an abundance of resources at its disposal in the pursuit of a heightened global profile. Its rich history and welcoming culture provide it with all the right tools for a renovation of its international image. Get it right, and investors will come flocking to the country, drawn in by a healthy mixture of economic opportunity, and the irresistible allure of ilish curry.
Sam Bidwell is Director of the Centre for Commonwealth Affairs.