The Bangladesh Economy: Navigating the Turning Point

Abstract

a period of trial, made worse by a devastating famine in 1974, which began in Rangpur district and then swept through the rest of the country (Sobhan 1979). Matters got worse when the Nixon administration, still smarting from Bangladesh having gained independence, which the US government had resisted, suddenly cut off food aid on the grounds that Bangladesh was earning money by exporting jute bags to Cuba. Today, as Bangladesh celebrates 50 years of independence, it is worth recalling that, while the nation was born out of the grand idea of building a just, humanitarian, and inclusive society, at the time of its birth it was one of Asia’s—and in fact the world’s—poorest nations.1. Many observers were reconciled to Bangladesh remaining a basket case that would have to be supported with food aid and propped up with money from international organizations.2. When the Bangladesh economy grew rapidly in the mid-1990s, it was viewed as a freak interlude. It is a remarkable turnaround that, in defiance of all expectations, Bangladesh today is a middleincome country with a per-capita income significantly higher than that of Pakistan and neck and neck with India’s. This is especially true since the COVID-19 pandemic hit the Indian economy harder than many other nations. On a personal note, there are few countries for which I have had the privilege of a view as close as I have had for THE BANGLADESH ECONOMY: NAVIGATING THE TURNING POINT