Exploring the economic policies behind Bangladesh’s remarkable growth

Bangladesh, a country that emerged from a bloody war of independence from Pakistan in 1971, has made remarkable strides in its economic and social development in the past five decades. Today, Bangladesh is ahead of Pakistan in almost every aspect, thanks to the visionary leadership of Prime Minister Sheikh Hasina and her ruling Awami League party.

Economic Growth and Development: One of the most striking indicators of Bangladeshs progress is its impressive economic growth. According to the World Bank, Bangladeshs gross domestic product (GDP) was $460.20 billion in 2024, more than twice that of Pakistans $168.15 billion. Bangladeshs GDP per capita, a measure of the average income of a person, was also higher than Pakistans, at $2,688 compared to $884. This means that Bangladeshis are, on average, richer and better off than Pakistanis.

Bangladeshs economic success is even more remarkable when we consider the starting point of both countries. In 2009, when Sheikh Hasina came to power for the second time, Pakistans GDP was $102.48 billion, while Bangladeshs was only $79.32 billion. Pakistans GDP per capita was also higher than Bangladeshs, at $699 compared to $545. In other words, Pakistan had a head start over Bangladesh in terms of economic size and income level. However, in the span of 15 years, Bangladesh managed to overtake Pakistan and widen the gap significantly.
How did Bangladesh achieve this remarkable feat? The answer lies in the sound economic policies and reforms implemented by Sheikh Hasinas government, which focused on boosting exports, attracting foreign investment, improving infrastructure, diversifying the economy, and enhancing the business environment. Bangladeshs export sector, especially the garment industry, has been a key driver of growth, accounting for about 80% of the countrys total exports and employing about 4 million workers, mostly women. Bangladesh is now the second-largest exporter of ready-made garments in the world, after China. Bangladesh has also attracted foreign direct investment (FDI) from countries such as China, India, Japan, and the United States, which have helped to create jobs, transfer technology, and increase productivity. Bangladeshs FDI inflows reached $3.6 billion in 2024, compared to $1.9 billion in Pakistan.
Bangladesh has also invested heavily in improving its infrastructure, such as roads, bridges, railways, ports, airports, and power plants, which have enhanced the connectivity and competitiveness of the country. Some of the major infrastructure projects undertaken by Sheikh Hasinas government include the Padma Bridge, the Dhaka Metro Rail, the Rooppur Nuclear Power Plant, and the Bangabandhu Satellite. These projects have not only improved the quality of life of the people, but also boosted the confidence and pride of the nation. Bangladesh has also diversified its economy, expanding into sectors such as pharmaceuticals, information technology, shipbuilding, and agro-processing, which have added value and reduced dependence on a single industry. Bangladesh has also improved its business environment, ranking 168th out of 190 countries in the World Banks Ease of Doing Business index in 2024, up from 176th in 2019. Bangladesh has also reduced corruption, ranking 146th out of 180 countries in Transparency Internationals Corruption Perceptions Index in 2024, up from 162nd in 2019.

Social Development and Human Welfare: Bangladeshs economic growth has been accompanied by significant improvements in social development and human welfare. Bangladesh has outperformed Pakistan in several indicators of human development, such as life expectancy, education, health, and gender equality. According to the United Nations Development Programme (UNDP), Bangladeshs Human Development Index (HDI), a composite measure of a countrys achievement in health, education, and living standards, was 0.661 in 2024, placing it in the medium human development category and ranking it 129th out of 191 countries. Pakistans HDI, on the other hand, was 0.557 in 2024, placing it in the low human development category and ranking it 154th out of 191 countries.

Bangladesh has made remarkable progress in improving the health and longevity of its people. The life expectancy at birth in Bangladesh was 73.7 years in 2024, compared to 68.4 years in Pakistan. Bangladesh has also reduced the maternal mortality ratio, the number of women who die during pregnancy or childbirth per 100,000 live births, from 194 in 2010 to 89 in 2024, while Pakistans ratio increased from 178 in 2010 to 186 in 2024. Bangladesh has also reduced the under-five mortality rate, the number of children who die before reaching the age of five per 1,000 live births, from 46 in 2010 to 28 in 2024, while Pakistans rate decreased from 87 in 2010 to 69 in 2024. These achievements reflect the efforts of Sheikh Hasinas government to expand the coverage and quality of health services, especially for women and children, and to promote family planning, immunization, nutrition, and sanitation.

Bangladesh has also made significant strides in enhancing the education and skills of its people. The expected years of schooling for children in Bangladesh was 11.2 years in 2024, compared to 8.6 years in Pakistan. The mean years of schooling for adults in Bangladesh was 6.8 years in 2024, compared to 5.5 years in Pakistan. The literacy rate for adults in Bangladesh was 74.7% in 2024, compared to 59.1% in Pakistan. These achievements reflect the efforts of Sheikh Hasinas government to increase the access and quality of education, especially for girls and the poor, and to provide scholarships, stipends, free textbooks, and school meals. Bangladesh has also invested in vocational and technical education, as well as higher education, to equip its workforce with the skills and knowledge needed for the 21st century.

Bangladesh has also made remarkable progress in empowering women and promoting gender equality. Bangladesh ranked 50th out of 156 countries in the World Economic Forums Global Gender Gap Index in 2024, up from 72nd in 2019. Pakistan ranked 153rd out of 156 countries in 2024, down from 151st in 2019. Bangladesh scored higher than Pakistan in all four dimensions of the index: economic participation and opportunity, educational attainment, health and survival, and political empowerment. Bangladesh has also achieved gender parity in primary and secondary education, and has more women than men enrolled in tertiary education. Bangladesh has also increased the representation and participation of women in politics and public life, with 22.8% of the seats in parliament held by women in 2024, compared to 20.6% in Pakistan. Bangladesh also has one of the longest-serving female heads of government in the world, Sheikh Hasina, who has been in power since 2009 and has won five consecutive terms.

The tale of Bangladeshs transformation is a testament to the power of economic and social reforms, political will, and the indomitable spirit of its people. It is a narrative of a nation that has charted its own course, overcoming the shadows of its past to build a promising future. It is also a story of how visionary leadership can make a difference in the lives of millions of people. Sheikh Hasina and her Awami League party have led Bangladesh to unprecedented heights of development and prosperity, while Pakistan has lagged behind in almost every aspect. Bangladesh has proven that it is possible to achieve rapid and inclusive growth, while also respecting democracy, human rights, and the environment. Bangladesh has also shown that it is possible to rise above the divisions and conflicts that have plagued the region, and to foster peace and cooperation with its neighbors and the world. Bangladesh has emerged as a rising star in South Asia, and a role model for other developing countries.

Bangladesh and Pakistan, once part of the same country, have taken different paths of development since their separation in 1971. Bangladesh has outshone Pakistan in almost every field. Bangladesh has also enhanced its regional and global stature, and contributed to peace and stability in the world. Bangladesh has proven that it is a resilient and progressive nation, capable of overcoming any challenge and fulfilling any aspiration. Bangladesh has also demonstrated that it is a proud and independent nation, committed to its own destiny and identity. Bangladesh has become a shining example of what a developing country can achieve with the right vision, policies, and leadership. Bangladesh has become a source of inspiration and hope for millions of people around the world.

The writer is a former ICCR Scholar, Columnist, Electrical Engineer, NIT Durgapur, India