DOT Desk: Bangladesh should focus on resource development as well as ensuring good governance at the institutional level for its graduation to a developed country, economists said, reports The Daily Sun.
They also stressed the need for political stability and increase taxation to reduce the income of gap and foster an inclusive economy. United Kingdom-based Centre for Economics and Business Research (CREB) recently projected that Bangladesh will become the world’s 24th largest economy within the next fifteen years. Bangladesh is now the second largest economy in South Asia after India. Talking to the daily sun, former Bangladesh Bank Governor Dr Atiur Rahman stressed the need for resource development to increase domestic revenue. Prof Atiur also suggested focusing on three fronts – policy continuation, investment acceleration and proper implementation of existing projects – to accelerating the country’s growth rate further. According to the UK agency, Bangladesh has benefited from garments exports, a strong increase in remittances, duty-free access to the Indian market, a rise in domestic consumption expenditure and public spending to promote growth. “Bangladesh has achieved tremendous growth in the last one decade due to its expanded footprint in the regional economy.
Stronger bilateral relation with neighbours, especially India is one of the catalysts for the development of the political economy,” Prof Atiur Rahman told the daily sun.
Prof Atiur also suggested increasing allocation in education for developing skilled-based resources to lead the growth momentum.
He said Bangladesh has made tremendous progress in last one decade which driven by the Digital Bangladesh vision of Prime Minister Sheikh Hasina.
Zaid Bakht, former research director of Bangladesh Institute of Development Studies (BIDS), said the country will achieve its goal if the economy maintains the current growth trend.
“The economy is in momentum now. However, the authorities should formulate policy to reduce income inequality in the society,” economist Zaid said.
Centre for Policy Dialogue (CPD) Distinguish Fellow Prof Mustafizur Rahman emphasized strengthening institutional capacity to benefits the mass from the growing trend of the economy.
“The economy became larger, that’s obviously good news for us. The growth reflects the expansion of the local market economy which will also attract an increased amount of foreign direct investment. However, we should be focusing more on the gap between high-income earners and low-income earners,” Prof Mustafizur Rahman said.
Prof Mustafiz also mentioned that the government should support the momentum in economic trend through policy support to the businesses.