Economic Information & data
- Size: 56,000 miles squared
- Population: 156.6 million
- Population density: 2,400 (12th highest)
- Gdp: $150 Billion (USD)
- $957 (USD) per capita
- Unemployment rate: 4.3%
- Inflation rate: 5.6%
- Main export: Textiles (90%)
- HDI: 0.57, Medium human develop (142nd)
- Average income: 1,300
- Gini coefficient: 32.1 (Better than Canada's)
- Literacy rate: 61.5%
- Infant mortality: 3.3%
- HIV infection rate: 0.7%
Life expectancy is a good indicator of how developed a country is. LEDCs will tend to have low life expectancies because of the lack of access to healthcare and the fewer infrastructures built to stop and cure diseases. On the other hand, MEDCs will have a higher life expectancy due to more developed healthcare. This is shown by looking at the graph. Bangladesh's life expectancy is a lot lower than Italy's at 66 years in 2006 compared to 82 for Italy. However, the life expectancy in Bangladesh is rising at a faster rate than in Italy. In the 25 year that the graph shows. Bangladesh improved its life expectancy by approximately 20 years. Italy's however only improved by 9 years. With the same amount of money invested in both countries healthcare, the life expectancy in Bangladesh will likely be much more affected than in Italy. This can be explained by the fact that as healthcare in a country improves, the simpler diseases (malaria) are cured more easily. However, the more complex diseases (Cancer, HIV) are harder to treat.
Literacy rate is reflective of the standard of education within a country. MEDCs will have a much higher education rate than Bangladesh. Especially with a country like Italy which provides free education all the way from pre-school through to post grad. The increase in education in Bangladesh however is incredibly steep.
The child mortality is usually reflective of the improvement in the health system in a country. Once again. Bangladesh shows an absolutely tremendous improvement in child mortality going from about 200 children death per thousand down to 60. Italy's child mortality also improves but only by around 10 children death per thousand.
Domestic factors and economic development
Bangladesh has enormously invested in and subsidised education since its independence. The rise in primary education for both women and men has tremendously increased. The NGOs played a major role in this progress process. Without the state’s schools, clinics and cash-transfer schemes, other interventions would not work. It is the things which NGOs do, though, that make Bangladesh’s way of fighting poverty unique. The current government budget for education is of 2.1 billion which is approximately 1.4 of the country's gdp. This is much higher than most countries in the surrounding area and explains the outstanding increase in literacy rate. Surprisingly, Bangladesh has also managed to increase the rate of woman who receive education in a country that has a very large muslim population. Bangladesh has created two types of employment within its undergraduate educational system. Bangladesh's students can therefore either choose to attend the Technical Education System or the Madrasah Education System. In the Madrasah Education System there are two systems. One, called the "Quomi" Madrasah system is privately owned and funded and is run according to the Deobandi system of Islamic education, which rejects the rational sciences. The other, called the “Alia” madrasah system, is privately owned but subsidized by the government (the government spends 11.5% of its education budget on alia madrasahs, paying 80% of teacher and administrator solaries). In the Technical Education System, after obtaining a Diploma-in-Engineering degree (four year curriculum) from the institutes listed below, students can further pursue their educational career by obtaining a bachelor's degree from Engineering & Technology Universities. This system therefore allows for better economic development as students can specialise in course offering a high degree of education such as engineering programs. These courses therefore allow
Part of Bangladesh's success in developing so rapidly is due to the use of microcredit. A microcredit is the lending of a small amount of money at a low or no interest to countries in the developing world. What might seem like a small amount of money to a person in the developed world can be months of salary for people in LEDCs. This credit therefore allows the borrowers to invest in capital and entrepreneurs can create businesses where they see incentive. Developing countries with poor populations have a lot more incentive for new businesses since there is a lot less structure than in MEDCs. Micro credits helped Bangladesh develop, the Grameen bank is considered to be one the first bank to have given micro credits in the world. The bank of america also agreed to lend 3..7 million in non profit loans. Since these credits are usually small amounts of money, thousands of people could get affected by a loan which will seem like nothing to bank of america.
Women empowerment in Bangladesh has greatly improved within the last few decades. Considering that Bangladesh is a muslim country that is considered to be quite underdeveloped, the women empowerment situation is quite encouraging.However there are still many issues. Around Bangladesh, it is women and girls who are disproportionately affected by poverty and discrimination. Half of the population (women) cannot contribute to their family's and community's economic development. A great resource goes untapped. But women are an important part of the solutions needed to truly overcome poverty. They play a key role in navigating their family and their community to a better life.
Bangladesh's exports mainly consists of textiles. According to the Observatory of Economic Complexity, 90% of Bangladesh's exports only come from textile related goods. This represents 30.1B out of the 33.5B worth of goods exported by the country. We know that the clothing industry is huge in Bangladesh, there are many sweatshop issues within the country. A large proportion of Bangladesh imports consist cotton. This cotton is used to create the many textile goods that are then exported.
We can therefore assume that Bangladesh would be highly dependant on the price of textiles because it makes up such a high proportion of their imports. Textile prices over the last few years have fluctuated quite a bit, cotton prices especially rose in 2011 with a peak at 200 cents a pound. However, this rise in cotton prices did not influence the gdp. The graph below shows the average price of cotton over the last ten years compared to Bangladesh's gdp growth rate.
Bangladesh is one of the fastest developing countries in the world. Its very fertile agricultural land have provided it with the ability to be one of the countries in the world with the highest population density in the world. This has however also caused the country to be quite poor with an average gdp of only $950 usd per capita. Bangladesh was the first country to use microcredit in the world and it was tremendously beneficial. Micro credit allowed the country to develop economically and socially at a faster rate than any other countries in the world over the last 40 years. Education and Woman empowerment have also been a priority for the country. The fact that micro credits were only given to woman allowed woman empowerment to increase by a lot in a country that is muslim. Bangladesh has however been a victim of MEDCs abusing their cheap labour through sweatshops and textile production. 90% of Bangladesh's exports are textiles which has lead Bangladesh to be quite dependant on cotton prices and India, the biggest cotton exporter to Bangladesh.