Bangladesh is an agricultural country, with some three-fifths of the population engaged in

farming. Jute and tea are principal sources of foreign exchange. Other important agricultural
products are wheat, pulses (leguminous plants, such as peas, beans, and lentils), sweet
potatoes, oilseeds of various kinds, sugarcane, tobacco, and fruits such as bananas,
mangoes, and pineapples.

Agriculture has in the past been wholly dependent upon the vagaries of the monsoon. A poor
monsoon has always meant poor harvests and the threat of famine. Among the remedial
measures adopted has been the construction of a number of irrigation projects designed to
control floods and to conserve rainwater for use in the dry months. The most important are
the Karnaphuli Multipurpose Project in the southeast, the Tista Barrage Project in the north,
and the Ganges-Kabadak Project, to serve the southwestern part of the country. Economic
planning has encouraged double and triple cropping, intercropping, and the increased use of
fertilizers.

Economy of Bangladesh at a glance

GDP: purchasing power parity—$175.5 billion (1998 est.)

GDP—real growth rate: 4% (1998 est.)

GDP—per capita: purchasing power parity—$1,380 (1998 est.)

GDP—composition by sector:
agriculture: 30%
industry: 17%
services: 53% (1997)

Population below poverty line: 35.6% (1995-96 est.)

Household income or consumption by percentage share:

lowest 10%: 4.1%
highest 10%: 23.7% (1992)

Inflation rate (consumer prices): 7% (1998)

Labor force—by occupation: agriculture 65%, services 25%, industry and mining 10%
(1996)

Unemployment rate: 35.2% (1996)

Industries: jute manufacturing, cotton textiles, food processing, steel, fertilizer

Industrial production growth rate: 3.6% (1997)

Electricity—production: 11.5 billion kWh (1997)

Agriculture—products: rice, jute, tea, wheat, sugarcane, potatoes; beef, milk, poultry

Exports—commodities: garments, jute and jute goods, leather, frozen fish and seafood

Imports—commodities: capital goods, textiles, food, petroleum products

 Debt—external: $16.7 billion (1997)

Economic aid—recipient: $1.475 billion (FY96/97)

Currency: 1 taka (Tk) = 100 poisha

Exchange rates: taka (Tk) per US$1—48.500 (January 1999), 46.906 (1998), 43.892
(1997), 41.794 (1996), 40.278 (1995), 40.212 (1994)

Fiscal year: 1 July—30 June

Economy of Bangladesh
From Wikipedia, the free encyclopedia

The economy of Bangladesh is a rapidly developing market-based economy.[3] Its per capita income in 2010 was est. US$1,700 (adjusted

bypurchasing power parity). According to the International Monetary Fund, Bangladesh ranked as the 43rd largest economy in the world in 2010 in

PPP terms and 57th largest in nominal terms, among the Next Eleven or N-11 of Goldman Sachs and D-8 economies, with a gross domestic product

of US$269.3 billion in PPP terms and US$104.9 billion in nominal terms. The economy has grown at the rate of 6-7% p.a. over the past few years.

More than half of the GDP belongs to the service sector, a major number of nearly half of Bangladeshis are employed in the agriculture sector, with

RMG, textiles, leather, jute, fish, vegetables, leather and leather goods, ceramics, fruits as other important produce.

Remittances from Bangladeshis working overseas, mainly in the Middle East is the major source of foreign exchange earnings; exports of garments

and textiles are the other main sources of foreign exchange earning. Ship building and cane cultivation have become a major force of growth. GDP's

rapid growth due to sound financial control and regulations have also contributed to its growth. However, foreign direct investmentis yet to rise

significantly. Bangladesh has made major strides in its human development index.[4]

The land is devoted mainly to rice and jute cultivation as well as fruits and produce, although wheat production has increased in recent years; the

country is largely self-sufficient in rice production. [4][4] Bangladesh's growth of its agro industries is due to its rich deltaic fertile land that depend on its

six seasons and multiple harvests.[4]

Improving at a very fast rate, infrastructure to support transportation, communications, power supply and water distribution are rapidly developing.

[4]
Bangladesh is limited in its reserves of oil, but recently there was huge development in gas and coal mining. The service sector has expanded

rapidly during last two decades, the country's industrial base remains very positive. [4] The country's main endowments include its vast human resource

base, rich agricultural land, relatively abundant water, and substantial reserves of natural gas, with the blessing of possessing the worlds only natural

sea ports in Mongla and Chittagong, in addition to being the only central port linking two large burgeoning economic hub groups SAARC and ASEAN.

[4]

[edit]Agriculture

Map showing the growing areas of major agricultural products.

Main article: Agriculture of Bangladesh

Most Bangladeshis earn their living from agriculture.[4] Although rice and jute are the primary crops, maize and vegetables are assuming greater

importance.[4]Due to the expansion of irrigation networks, some wheat producers have switched to cultivation of maize which is used mostly as poultry

feed.[4] Tea is grown in the northeast.[4] Because of Bangladesh's fertile soil and normally ample water supply, rice can be grown and harvested three

times a year in many areas.[4] Due to a number of factors, Bangladesh's labor-intensive agriculture has achieved steady increases in food grain

production despite the often unfavorable weather conditions.[4] These include better flood control and irrigation, a generally more efficient use of

fertilizers, and the establishment of better distribution and rural credit networks.[4] With 28.8 million metric tons produced in 2005-2006 (July–June),

rice is Bangladesh's principal crop.[4] By comparison, wheat output in 2005-2006 was 9 million metric tons.[4] Population pressure continues to place a

severe burden on productive capacity, creating a food deficit, especially of wheat.[4]Foreign assistance and commercial imports fill the gap,[4] but

seasonal hunger ("monga") remains a problem.[7] Underemployment remains a serious problem, and a growing concern for Bangladesh's agricultural

sector will be its ability to absorb additional manpower.[4] Finding alternative sources of employment will continue to be a daunting problem for future

governments, particularly with the increasing numbers of landless peasants who already account for about half the rural labor force. [4] Due to farmers'

vulnerability to various risks, Bangladesh's poorest face numerous potential limitations on their ability to enhance agriculture production and their

livelihoods. These include an actual and perceived risk to investing in new agricultural technologies and activities (despite their potential to increase

income), a vulnerability to shocks and stresses and a limited ability to mitigate or cope with these and limited access to market information. [7]

[edit]Manufacturing & Industry

Many new jobs - mostly for women - have been created by the country's dynamic private ready-made garment industry, which grew at double-digit

rates through most of the 1990s.[4] By the late 1990s, about 1.5 million people, mostly women, were employed in the garments sector as well as

Leather products specially Footwear (Shoe manufacturing unit). During 2001-2002, export earnings from ready-made garments reached $3,125

million, representing 52% of Bangladesh's total exports. Bangladesh has overtaken India in apparel exports in 2009, its exports stood at 2.66 billion

US dollar, ahead of India's 2.27 billion US dollar.[8]

Eastern Bengal was known for its fine muslin and silk fabric before the British period. The dyes, yarn, and cloth were the envy of much of the

premodern world. Bengali muslin, silk, and brocade were worn by the aristocracy of Asia and Europe. The introduction of machine-made textiles from

England in the late eighteenth century spelled doom for the costly and time-consuming hand loom process. Cotton growing died out in East Bengal,

and the textile industry became dependent on imported yarn. Those who had earned their living in the textile industry were forced to rely more

completely on farming. Only the smallest vestiges of a once-thriving cottage industry survived.

Other industries which have shown very strong growth include the chemical industry, steel industry, mining industry and the paper and pulp industry.

[edit]Textile sector

Bangladesh's textile industry, which includes knitwear and ready-made garments along with specialized textile products, is the nation's number one

export earner, accounting for 80% of Bangladesh's exports of $15.56 billion in 2009. [9] Bangladesh is 2nd in world textile exports, and China which

exported $120.1 billion worth of textiles in 2009. The industry employs nearly 3.5 million workers. Current exports have doubled since 2004. Wages in

Bangladesh's textile industry were the lowest in the world as of 2010. The country was considered the most formidable rival to China where wages

were rapidly rising and currency was appreciating. [10][11]

After massive labor unrest in 2006[12] the government formed a Minimum Wage Board including business and worker representatives which in 2006

set a minimum wage equivalent to 1,662.50 taka, $24 a month, up from Tk950. In 2010, following widespread labor protests involving 100,000

workers in June, 2010,[9][13] a controversial proposal was being considered by the Board which would raise the monthly minimum to the equivalent of

$50 a month, still far below worker demands of 5,000 taka, $72, for entry level wages, but unacceptably high according to textile manufacturers who

are asking for a wage below $30.[11][14] On July 28, 2010 it was announced that the minimum entry level wage would be increased to 3,000 taka, about

$43.[15]

The government also seems to believe some change is necessary. On September 21, 2006 then ex-Prime Minister Khaleda Zia called on textile firms

to ensure the safety of workers by complying with international labor law at a speech inaugurating the Bangladesh Apparel & Textile Exposition

(BATEXPO).

Investment
[edit]

The stock market capitalization of the Dhaka Stock Exchange in Bangladesh crossed $10 billion in November 2007 and the $30 billion dollar mark in

2009, and USD 50 billion in August 2010. Bangladesh had one of the best performing stock markets in the world during the recent global recession,

due to relatively low correlations with developed country stock markets.

Major investment in real estate by domestic and foreign-resident Bangladeshis has led to a massive building boom in Dhaka and Chittagong.

Recent (2011) trends for investing in Bangladesh as Saudi Arabia trying to secure public and private investment in oil and gas, power and

transportation projects, United Arab Emirates (UAE) is keen to invest in growing shipbuilding industry in Bangladesh encouraged by comparative cost

advantage, Tata, an India-based leading industrial multinational to invest Taka 1500 crore to set up an automobile industry in Bangladesh, World Bank

to invest in rural roads improving quality of live, the Rwandan entrepreneurs are keen to invest in Bangladesh's pharmaceuticals sector considering its

potentiality in international market, Samsung sought to lease 500 industrial plots from the export zones authority to set up an electronics hub in

Bangladesh with an investment of US$1.25 billion, National Board of Revenue (NBR) is set to withdraw tax rebate facilities on investment in the

capital market by individual taxpayers from the fiscal 2011-12.

[edit]2010-11 market crash

Main article: 2011 Bangladesh share market scam

The bullish capital market turned bearish during 2010, with the exchange losing 1,800 points between December 2010 and January 2011. [16] Millions of

investors have been rendered bankrupt as a result of the market crash. The crash is believed to be caused artificially to benefit a handful of players at

the expense of the big players.[16]

[

The term Global Economy refers to an integrated world economy with unrestricted and free movement of goods, services and labour

transnationally. It projects the picture of an increasingly inter-connected world with free movement of capital across countries, also. The

concept of a global economy cannot be understood in isolation. For this, globalization nees to be defined first. Globalisation may be

defined as the integration of production and consumption in all markets across the world.

It is a widely accepted view that globalization would not only benefit all countries across the world but would also work towards the betterment

of the economy as a whole. Country specific economic and political decisions are being taken on a global scale in today’s world with global

considerations becoming more important than narrow provincial ideals

A global economy is characterized as a world economy with an unified market for all goods produced across the world. It thus gives domestic

producers an opportunity to expand and raise capacity according to global demands Likewise, it also provides an opportunity to domestic

consumers to choose from a vast array of imported goods. A global economy aims to rationalise prices of all products globally. A computer or

a cup of coffee would cost the same amount of money in both the USA and India in real terms if identical units of both the goods are

purchased. With the reduction in the level of tariffs and quotas under new WTO (World Trade Organization) restrictions, free flow of goods

between the developed and the developing countries has become a distinct possibility. The emergence of Trans National Companies or Multi

National Companies has been due to the direct impact of globalization. Globalisation has boosted productivity and capacity of these

companies to astronomical highs because of the stiff competition at the international level. Improvement in technology in the developed

countries such as USA and Japan has permeated to those of the less developed economies of Asia, Africa and Latin America. This has enabled

the people of the developing countries acquire requisite technical skills and knowledge for operating sophisticated equipments. These skills

percolate throughout the economy and improves the general productivity of the labor in these countries thereby raising the income

levelsWhile a global economy or globalization has the distinct advantage of raising world productivity and incomes and bringing

about an improvement in the standards of living for all people at a global level, it has the dangerous side effect of growth with

inequality. This has been evidenced in the less developed economies of India, China and Brazil where the benefits of globalization

have not percolated to the lowest levels. This has brought about a wide divide between the have-nots and the have-lots.

A Global Economy also leads to a shifting of jobs from the developed countries to the Third World Countries as wage rates are

much lower here. This allows companies of the advanced nation to grow exponentially. For example, we might find computer chips

produced in China be exported to USA for designing which may be subsequently used in Japanese computers supplied across the

world. This process is called “outsourcing” and leads to exploitation of workers in Third World economies where income inequalities

already exist.

Nonetheless, a global economy may be beneficial for the world at large. This may result in the economies of the world fighting
issues such as global warming, climate change and environmental degradation collectively and effectively. n order to gain a
deeper understanding of the global economic issues leading to the current global recession we have to look at the
history, the things that work, and the things that have harmed the world’s economy as a whole.

Because of the downfalls of a global economy based on capitalism, there are entire activist movements working hard to
stem the tide of third world countries being consumed by this global economy. Keep reading and I’ll explain some of the
basics.

History

A global economy is not actually a new idea. People have been traveling by sea to trade goods for thousands of years. In
the Middle Ages, traders would travel along the Silk Road connecting China and Europe.

During the Industrial Revolution of the late 18th century, steam engines led to faster production machinery as well as
steam powered boats enabling people to produce, deliver and trade goods much faster than ever before.
After the 1980s, however, globalization really picked up speed. Events like the NAFTA (North American Free Trade
Agreement) and the formation of the WTO (World Trade Organization) opened up the markets dramatically. These and
other factors allowed the entire global economy to be held under one system for the first time in history.

Pros and Cons

Globalization allows nations to produce what they do best. If a country can purchase cheap coffee from another country,
they can focus their agricultural efforts on a crop that is better suited to their climate. The increase of the overall market
size can benefit consumers by providing cheaper and more readily available goods.

Now, for the down side(s). Industrialized countries experience significant unemployment when corporations outsource or
relocate to areas of cheap labor. However the biggest and perhaps most upsetting downside is globalization, as we have
approached it over the past thirty years, directly leads to the poorest countries growing poorer. These countries get
gobbled up by corporations quickly often times having their most vital resources, including clean water, being taken from
the citizens for privatized production and use.