Bangladesh’s middle income aspirations have largely been kept from being fulfilled by two pressing factors which continue to define its economy: A stagnant business climate coupled with little to no meaningful progress in overcoming unemployment.
For Bangladesh to achieve its economic goals, and indeed overcome its current relevant hurdles, it will have to focus on these two factors - - which is a sentiment shared by the chief economist at the World Bank who has urged the country to foster a more entrepreneurship-friendly business climate while expanding use of technology alongside it.
Speaking at a conference organized by Bangladesh Institute of Development Studies, Indermit S Gill has expressed that Bangladesh should be a much more open economy if it wishes to escape the middle-income trap. Higher levels of investment and a focus on creating more jobs are two of the best ways that Bangladesh can bypass that trap.
When it comes to fostering more investment, Bangladesh will need to end two issues which have historically plagued our institutions: Corruption and unchecked bureaucracy. Our business climate has suffered incredibly due to rampant corruption, all but requiring entrepreneurs and established business entities alike to consistently grease the wheels for regular operations to continue -- while needless bureaucratic red-tape only further hinders Bangladesh from seeing more in the way of investment, regardless of whether it is foreign or local.
The country recently witnessed a revolutionary change in government by way of students who have gone consistently unheard and misinterpreted at the same time when it comes to grievances about jobs. The fact of the matter is that, whatever growth Bangladesh has achieved in the past decade has been largely jobless -- which disproportionately affects our youth population.
For Bangladesh to rise above its recent economic turbulence and indeed chart a path towards its economic ambitions, the government will need to meaningfully tackle investment and job-creation. There is no other way.
