During a seminar organised by the South Asian Network on Economic Modelling (SANEM) and the World Bank, experts highlighted the optimistic growth outlook for South Asia compared to other emerging markets and developing economies.
However, they pointed out significant hurdles in job creation, attributing these challenges to a lack of necessary policy reforms.
The seminar, titled "Is South Asia Experiencing Jobless Development?" took place at Dhakas BRAC Centre Inn Auditorium on Thursday, coinciding with the release of the World Banks April 2024 report on "South Asia Development Update."
Dr. Franziska Ohnsorge, the World Banks Chief Economist for South Asia, emphasised the urgent need for policy reforms to dismantle barriers to job creation in her presentation of the "Report Focusing on Job Resilience in South Asia in April 2024."
According to Dr. Ohnsorge, the lag in private investment and its minimal contribution to GDP, compared to other developing regions, is a critical concern for South Asias job market.
Trade openness and institutional quality were identified as pivotal factors to invigorate job opportunities in the region. Dr. Ohnsorge highlighted the low trade-to-GDP ratio in South Asia and pointed out specific areas of growth such as the Bangladeshi readymade garment (RMG) sector and the Indian IT industry. She criticised Bangladesh for imposing high barriers to trade, which she believes are stifling growth and employment opportunities. —UNB
