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NORTH SOUTH UNIVERSITY

SCHOOL OF BUSINESS & ECONOMICS


Course Title: Economic Conditions Analysis
Course Code: BUS530
Section: 02
Submission Date: 17.12.2019
Assignment Title: Sustainability is an important issue globally. Explain how
Bangladesh is reaching towards fulfilling sustainable development goals (SDGs)
with its fiscal and monetary policies?
Prepared for:
Dr. Tamgid Ahmed Chowdhury (TMR)
Associate Professor
Director, E/MBA Programs
North South University.

Prepared by:
Md. Minhajul Alam 1825178660
Meher Afrose 1925080660
Sumaiya Habib Tajre 1915261660
Md. Siddiqur Rahman 1915244660
Abu Saleh Mohammad Nasim 1835123060
Sustainable Development Goals of Bangladesh
The Sustainable Development Goals are a collection of 17 global goals designed to be a
"blueprint to achieve a better and more sustainable future for all". Bangladesh has also the 17
goals to achieve the sustainability. The 17 goals are as following manner:

 GOAL 1: No Poverty
 GOAL 2: Zero Hunger
 GOAL 3: Good Health and Well-being
 GOAL 4: Quality Education
 GOAL 5: Gender Equality
 GOAL 6: Clean Water and Sanitation
 GOAL 7: Affordable and Clean Energy
 GOAL 8: Decent Work and Economic Growth
 GOAL 9: Industry, Innovation and Infrastructure
 GOAL 10: Reduced Inequality
 GOAL 11: Sustainable Cities and Communities
 GOAL 12: Responsible Consumption and Production
 GOAL 13: Climate Action
 GOAL 14: Life Below Water
 GOAL 15: Life on Land
 GOAL 16: Peace and Justice Strong Institutions
 GOAL 17: Partnerships to achieve the Goal

Among the 17 goals, the 10 goals has been explained with the help of fiscal and monetary policy
of Bangladesh.

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Goal 1: No poverty

Goal 1 target

1. By 2030, eradicate extreme poverty for all people everywhere, currently measured as people
living on less than $1.25 a day

2. By 2030, reduce at least by half the proportion of men, women and children of all ages living
in poverty in all its dimensions according to national definitions

3. Implement nationally appropriate social protection systems and measures for all, including
floors, and by 2030 achieve substantial coverage of the poor and the vulnerable

4. By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal
rights to economic resources, as well as access to basic services, ownership and control over land
and other forms of property, inheritance, natural resources, appropriate new technology and
financial services, including microfinance

5. By 2030, build the resilience of the poor and those in vulnerable situations and reduce their
exposure and vulnerability to climate-related extreme events and other economic, social and
environmental shocks and disasters

 Ensure significant mobilization of resources from a variety of sources, including through


enhanced development cooperation, in order to provide adequate and predictable means
for developing countries, in particular least developed countries, to implement
programmes and policies to end poverty in all its dimensions
 Create sound policy frameworks at the national, regional and international levels, based
on pro-poor and gender-sensitive development strategies, to support accelerated
investment in poverty eradication actions

The present Situation

The Gross Domestic Product per capita in Bangladesh was last recorded at 1203.20 US dollars in
2018. The GDP per Capita in Bangladesh is equivalent to 10 percent of the world's average.
GDP per capita in Bangladesh averaged 522.13 USD from 1960 until 2018, reaching an all-time
high of 1203.20 USD in 2018 and a record low of 322.30 USD in 1972.

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Bangladesh’s poverty rate came down at 21.8% while the poverty rate, as per the lower poverty
line or people living in extreme poverty, came down to 11.3% in 2018, according to the latest
data of the Bangladesh Bureau of Statistics (BBS).That means in 2030 we can able to fulfill
Sustainable development first agenda

Goal 2: Zero Hunger


Goal Agenda

• By 2030, end hunger and ensure access by all people, in particular the poor and people in
vulnerable situations, including infants, to safe, nutritious and sufficient food all year round.

• By 2030, end all forms of malnutrition, including achieving, by 2025, the internationally agreed
targets on stunting and wasting in children under 5 years of age, and address the nutritional needs
of adolescent girls, pregnant and lactating women and older persons.

• By 2030, double the agricultural productivity and incomes of small-scale food producers, in
particular women, indigenous peoples, family farmers, pastoralists and fishers, including through
secure and equal access to land, other productive resources and inputs, knowledge, financial
services, markets and opportunities for value addition and non-farm employment.

• By 2030, ensure sustainable food production systems and implement resilient agricultural
practices that increase productivity and production, that help maintain ecosystems, that
strengthen capacity for adaptation to climate change, extreme weather, drought, flooding and
other disasters and that progressively improve land and soil quality.

• By 2020, maintain the genetic diversity of seeds, cultivated plants and farmed and domesticated
animals and their related wild species, including through soundly managed and diversified seed
and plant banks at the national, regional and international levels, and promote access to and fair
and equitable sharing of benefits arising from the utilization of genetic resources and associated
traditional knowledge, as internationally agreed.

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• Increase investment, including through enhanced international cooperation, in rural
infrastructure, agricultural research and extension services, technology development and plant
and livestock gene banks in order to enhance agricultural productive capacity in rural areas,

• Adopt measures to ensure the proper functioning of food commodity markets and their
derivatives and facilitate timely access to market information, including on food reserves, in
order to help limit extreme food price volatility.

Present Situation of No hunger in Bangladesh

Currently, Bangladesh has got 24.4 million undernourished people, or in other words 15.1
percent of its population is not having enough to meet their minimum daily diets. This is an
increase of 0.7 million over the past decade as the number of undernourished people was 23.7
million back in 2006.

Goal 4: Quality Education

Education is one of the most powerful and proven vehicles for sustainable development. This
goal ensures that all girls and boys complete free primary and secondary schooling by 2030. It
also aims to provide equal access to affordable vocational training, to eliminate gender and
wealth disparities, and achieve universal access to a quality higher education.

However, in light of SDG 4, the government of Bangladesh has set out to achieve the following
targets:

• By 2030, ensure that all girls and boys complete free, equitable and quality primary and
secondary education.
• By 2030, ensure that all girls and boys have access to quality early childhood development,
care and pre-primary education so that they are ready for primary education.
• By 2030, ensure equal access for all women and men to affordable and quality technical,
vocational and tertiary education, including university.
• By 2030, substantially increase the number of youth and adults who have relevant skills,
including technical and vocational skills, for employment, decent jobs and entrepreneurship.

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• By 2030, build and upgrade education facilities that are child, disability and gender sensitive
and provide safe, non-violent, inclusive and effective learning environments for all.
• By 2030, substantially increase the supply of qualified teachers through international
cooperation for teacher training at all levels of education.

There are conflicting narratives about resources and budgets for education even from officials.
Under two percent of GDP and 10-to-12 percent of national budget for education, and per
student school-level annual public spending of around USD 100, are all extremely low even
compared to other developing countries. But a senior official said that funding is not a problem,
because Tk 1,200 corers for primary education remained unspent in 2017.

Now it’s time to focus on ensuring quality education at all levels and promoting skill-based
education to face the 21st century’s challenges and meet the demands/needs of the competitive
job market. And to achieve the goal (SDG 4), the government needs to establish good
governance at educational institutions. The government also should take into consideration the
following recommendations:

 The government should increase the annual budget up to 6 percent of GDP for education.
 The government should be seriously working on implementing the “National Education
Policy 2010” in a faster pace.
 The government should upgrade primary education (from class- Five) to class- Eight
according to Education Policy 2010 immediately.
 The government should force the school authorities to provide the students with transport
facilities to ensure road safety.

Goal 5: Gender Equality

Bangladeshi women have been struggling to establish their rights in family, society and in the
state. But In reality, women are still facing discrimination and injustice and have a negligible
influence in decision-making processes in a male-dominated society of Bangladesh. The rapid
growth of the garment industry has provided numerous job sectors for women, who comprise

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over 90 per cent of its labor force. Bangladesh’s annual GDP growth rate increased by 5 percent
over the past decade due to the contribution of women in the labor force. Girls are often
considered a burden in poor households and faced the risk of marriage at an early age.

• According to Gender Index 2019, Bangladesh is placed at 129 with a score of 49.2. Any
score below 60 means that the condition of gender equality in that country is very poor. It
is one of the bottom 20 countries in the world and the second last country in the list from
Asia and the Pacific, just before Pakistan.

• Participation of female is also concentrated in lower-level jobs and wages that are about
half of the male wage rate.

• Women are usually the last to eat at mealtimes and 30 per cent of adult women are
malnourished. Malnourished women are unable to contribute to any kind of activities also
they are at the risk of giving birth to underweight babies or babies with stunted growth.

• The score of 60.4 in the issue of ‘prevalence of anemia amongst non-pregnant women
(15-49 years) show that Bangladesh has a long way to go to ensure proper nutrition
among all women

• Though gender parity has been achieved in primary and secondary education, drop-out
rates are higher for girls than boys

A woman can be empowered by assuring her quality transport facilities where she will not worry
about being harassed; during disasters, a proper mitigation management should make available
for her and her family. Providing women and girls with equal access to education, health care,
decent work, and representation in political and economic decision-making processes will lead to
sustainable economies and benefit societies and humanity at large.

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Goal 6- Clean Water and Sanitation

There are a number of challenges for Bangladesh to achieve Goal 6

• Bangladesh failed to meet the Millennium Development Goal (MDG) of halving the
proportion of population without access to improved sanitation by the deadline of 2015.
In geographical areas that are hard to reach are still using poor sanitation.

• Sanitation crisis are found in villages, small towns and big cities due to huge volumes of
untreated faecal sludge that releases to the environment.

• In Dhaka city less than 50 toilets serve a population of 5.5 million on the streets.

• Protecting water sources and introducing sustainable management of groundwater will be


a challenge and a priority will be given Bangladesh’s extreme reliance on limited
groundwater sources.

The action plan proposed by the Government of Bangladesh considering clean water and
sanitation are given below:

• Bangladesh would ensure 90% hygienic sanitation coverage, with special attention to
physically challenged and socially excluded population, by 2030.

• Bangladesh would ensure access to safe, adequate and equitable water supply for all with
a target of improving water supply coverage to 100% both (in urban and rural area) by
2020

• Need to take appropriate actions for Ensuring safe yield from ground water sources of
water and their preservation and conservation by 2020 through (The Water Act is already
in place) and continuous monitoring up to 2030

• There is an action plan regarding using a hand washing facility among percentage of
population with water and soap, disaggregated by location (home, school, health center).

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Goal 8: Decent Work and Economic Growth

Major findings regarding Sustained, Inclusive and Sustainable Economic Growth and Decent
Work in Bangladesh are as following:

 Upward shift in the average annual growth rate to more than 7 per cent in the recent years
(FY2015-FY2018) from the above 6 per cent rate over the last decade.
 The average annual growth rate of GDP per employed person has already reached the
2020 target in FY2017.
 The estimated unemployment rate in Bangladesh has been closer to 4 per cent for a long
time and it can be reasonably expected to remain closer to this long run level in the near
future.
 There is no official data on child labor after 2013. It may be expected that with stronger
growth, and elimination of extreme poverty as well as greater access to education the
child labor situation will improve in the future.
 There has been gradual improvement in financial inclusion variables in recent years
indicating increased access of households and businesses to financial services.
 About 29 per cent of youth was not in education, not in employment (NEET) in the base
year which increased to about 30 per cent in the following year. While the proportion of
youth male NEET is closer to 10 per cent the proportion of youth female is closer to 50
per cent in 2016/17. Both rates are higher than their levels in the preceding year which
puts them off-track.
 Achieving SDG targets face some key challenges such as increasing informality in job
market, high youth unemployment rate, skills demand and supply mismatch, low female
labor force participation, low inflow of foreign resources particularly FDI, workplace
injuries, child labor and problems involving migration of workers.
 The Government’s growth enhancing and job creating policies and programs would be
revamped by other policies and programs such as increasing growth through
diversification of the economy, better integration of education system and labor market,
enhancing women employment opportunities, lifelong education and attracting external
resources.

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Goal 9-Industry, innovation & infrastructure

Major findings regarding Industry, innovation & infrastructure in Bangladesh are as following:

 At present around 2.3 million people employed in renewable energy sectors


 Technological progress is also a key factors for ensuring economic and environmental
efficiency
 Develop quality and reliable infrastructure, including regional and trans boarder
infrastructure, to support economic development and human well-being,
 Mass Transport & renewable energy are becoming more important
 By 2030 we need to ensure-
 Development of Domestic Technology
 Facilitate sustainable and resilient infrastructure development
 Increase the access of small-scale industrial and other enterprises
 Enhance scientific research, upgrade the technological capabilities of industrial
sectors
 Significantly increase access to ICT and strive to provide universal and affordable
access to internet
 Upgrade infrastructure and retrofit industries to make them sustainable

Goal 10: Reduced Inequalities

“Reduce inequality within and among countries” is the main intent of Goal 10. It has 2
objectives: (a) to reduce inequality within countries; and (b) to reduce inequality among
countries. The major focus of this discourse is the first objective: to reduce inequality within
Bangladesh, and has to be done by the people of Bangladesh.

As per United Nations, inequality still persists in a higher degree in many countries all over the
world and large disparities remain in access to health, education, sanitation, employment and
other services and resources. Unfortunately, Bangladesh is one such country.

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 In case of Bangladesh, as the CRI Index 2018 says, it has been ranked in the 148th
position among 157 countries which are doing very little to reduce the gap between the
rich and the poor.
 Inequality is a major concern for civil society in Bangladesh. The report by the Equity
and Justice Working Group Bangladesh (Equity.BD) quantifies rising inequalities. The
Palma ratio (between the income of the richest 10% and that of the poorest 40%) grew
from 1.68 in 1964 to 2.93 in 2016.

The latest Household Income and Expenditure Survey released by Bangladesh Bureau of
Statistics in 2016 found that the income share of the poorest 10 per cent of the household
population received 1.01 per cent of the total national income in 2016 which was 2 per cent in
2010. In comparison, the richest 10 per cent of the population owned 38.16 per cent of the
national income in 2016 which was 35.84 per cent in 2010. This means the rich are growing
richer in income and wealth day by day.

Goal 13: Climate Action

 Number of deaths, missing persons and directly affected persons attributed to disasters
per 100,000 populations (Indicator 13.1.1) have fallen over the years. Now it stands at
12,881 with a target of 6,500 by 2020 and 1,500 by 2030. Given the track record of
Bangladesh in disaster management, this target will not be difficult to achieve.
 MoDMR has prepared Disaster Risk Reduction Strategies of Bangladesh (2016-2020) in
line with the Sendai Framework which will be helpful in this regard.
 In facing the climate change scenarios, Bangladesh is well prepared with a number of
climate change related strategies, plans and actions.
 Through BCCTF, it has spent around 2,700 crore of taka over last 8 years in climate
change adaptation. Bangladesh Delta Plan 2100 has been formulated primarily to address
climate change adverse impacts and ensuring availability of water for safe multi-uses.

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Goal 15: Life on Land

 Plant life provides 80 percent of our human diet, and we rely on agriculture as an
important economic resource and means of development in our country
 Land degradation and loss of arable land are major problems in our country
 Drought and desertification is also on the rise each year
 Political power is an important factor in these sector
 Forest coverage has come down to only 9 percent
 Massive tree plantation in each village to face the climate change impacts
 The SDGs aim to conserve and restore the use of terrestrial ecosystem such as forests,
wetland, dry lands and mountains by 2030.

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Recommendations using Fiscal and Monetary Policy

We can see from graph that when Govt. expenditure increases the IS curve shift to the right and
the equilibrium point also shift from E to E”. This way the national income also increases (when
more people are employed that means the national income automatically increase). However the
interest rate also rises from r1 to r2. Which might be discourage to the new investors. On that
situation monetary policy will be help. When interest rate rises it might be create difficult
scenario of Bangladesh. Because for high interest rate lack of people would like to invest. This
negative impacts shows on our economy. In this case, Bangladesh Bank should take the
expansionary monetary policy by increasing a bit of the money supply in the economy keeping
the inflation into the consideration. So, LM curve will shift to the right at LM`. The national
income will rise at y3 and the new equilibrium point will be E``. At E``, the interest rate will be
reduced at r1 again. So, it will be a favorable scenario for Bangladesh.

 For the solution of Zero Hunger goal, if Bangladesh Govt. would like to fulfill No hunger
target goal the Govt. must need to change their fiscal policy by expanding their
expenditure. When Govt. expand their expenditure that means they are more capable to
invest more money on infrastructure as a result more people able to get job. The
unemployment rate decrease. Which also impact on no hunger, because when a country’s

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unemployment rate decrease that means that countries poverty line also decreases. If it
continues we can easily achieve 2030 zero hunger goal.
 Govt. should increase the annual budget up to 6% of GDP for education. That means,
govt. invest more money in the economy. That means the planned expenditure line will
shift up. So the IS curve will shift to the right at IS` and the equilibrium point will shift
from E to E`. National income or GDP also raise Y1 to Y2 which is 6%. However, the
interest rate will rise from r1 to r2. That will be an inconvenience situation. In such note,
monetary policy might help. When interest rate will rise, Bangladesh Bank should take
the expansionary monetary policy by increasing a bit of the money supply in the
economy keeping the inflation into the consideration.
 Achieving gender equality, clean water and sanitation target, government should go for
expansionary fiscal policy and more specifically government expenditure on providing
women and girls with equal access to education, health care, decent work, and
representation in political and economic decision-making processes. Also to provide
clean water, hygienic and sanitation coverage. And Bangladesh Bank should take the
expansionary monetary policy by increasing a bit of the money supply in the economy
keeping the inflation into the consideration.
 For achieving decent work and economic growth target, government should go for
expansionary fiscal policy and Bangladesh Bank should take the expansionary monetary
policy to decrease youth unemployment rate, improvement on skills demand and supply
mismatch, increase female labor force participation, high inflow of foreign resources
particularly FDI, reduce workplace injuries etc.
 To attract public and private investors, to reduce inequality and unemployment problem
and to restore the use of terrestrial ecosystem, government should go for expansionary
fiscal policy and Bangladesh Bank should take the expansionary monetary policy

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 Bangladesh has taken proper initiative to protect the climate. If the process continues like
the way it is, Bangladesh will be able to achieve this sustainable development measure
within the time frame 2030.
 In every year the poverty rate getting decrease. That means Bangladesh is now in a right
track. If Bangladesh continuously decrease poverty rate they will easily achieve SDG
goal by 2030.

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Reference:
Sustainable Development Goals. (n.d.). Retrieved from
https://www.bd.undp.org/content/bangladesh/en/home/sustainable-development-goals.html.

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