ECONOMY OF BAGLADESH

ANNAND KUMAR
SYED AHMED SHAH
DHANESH SONWANI
M.YONUS KAMDI

INTRODUCTION
Official name: People's Republic of
Bangladesh
Population: 168 Million people
Total area: 147,570 square Kilometer
(9th largest)
Area occupied by water: 6.4%

Historical Background
Bangladesh became Bangladesh in 1971
Before 1947, it was the part of British India
Many civilizations, Fossils and tools discovered in
Bangladesh

COLONY/COLONIAL POWER
The battle of Plassy ( 23rd june 1757 )

AGRARIAN/INDUSTRIAL

POLITICAL STRUCTURE AND

INTEREST GROUP

ETHNIC AND RELIGIOUS

COMPOSITION

Religious Distribution:

Status at International Level

Agricultural sector

INDUSTRIAL SECTO

Foreign
Fiscal Year Total Export Total Import Remittance
Earnings
20072008 $14.11b

$25.205b

$8.9b

20082009 $15.56b

$22.00b+

$9.68b

20092010 $16.7b

$24b

$10.87b

20102011 $22.93b

$32b

$11.65b

20112012 $24.30b

$35.92b

$12.85b

20132014 $30.10b

$29.37b

$14.00b

SERVICE SECTOR

IMPORTS

EXPORTS

FIVE EXPORT COUNTRIES

ITEMS BY BANGLADESH

E/UNMPLOYMENT TREND IN
BANGLADESH

LINKAGE BETWEEN ECONOMIC GROWTH,

EMPLOYMENT AND POVERTY REDUCTION

Social indicators

Population growth rate

(average annual %)

2010-2015

GDP per capita

(current US$)

2005 , 2010, 2014

Urban population
growth rate (average
annual %)
Urban population (%)
Life expectancy at birth
(females and males,
years)
Population aged 60+
years (females and
males, % of total)

1.2
%

2010-2015

2014
2010-2015

2014

512 $ , 617$ ,
750

3.6 %
33.5
71.3/69.8

6.8/7.2

IMPLEMENTATION OF
GROWTH MODELS
ROSTOWS STAGES OF GROWTH MODEL: Rostow's
argue that economic development can be describe in terms of a
series of steps through which all countries must proceed:
The traditional society.
The pre-condition for take off.
The take-off.
The drive to maturity.
The age of high mass consumption.

ROSTOWS STAGES OF
GROWTH MODEL
Bangladesh lies on 2 stage of Rostows i.e.
nd

Precondition to take off

.why Bangladesh lies on 2nd stage ?
.its Industrial Sector is flourishing as well as many
advancements have been made in services sector.
. increase in capital use in agriculture.
.Growth in saving .

Classical model of growth

Classical model does not apply in Bangladesh,
because it is based on unrealistic assumptions,
and its assumptions are not fulfilled by the
economy of Bangladesh following are the main
reasons .
there is no faire economy
There is no perfect competition in all markets
Price, wages and interest rate are not flexible
No over production in the economy
There is no full employment

HD GROWTH MODEL
H-D model wants to know that rate of growth of
income, which could maintain equilibrium without
inflation and deflation .
The model suggests that the economys rate of growth
depends on the level of savings & the productivity of
investment
H-D model also applies on the economy of the
Bangladesh, the reasons are
Savings are increasing
Technology is being increasing
Investments are also increasing

LEWIS MODEL
According to our point of view, Lewis model is
applicable for the economy of Bangladesh .At its initial
days, they focused on agriculture sector. In order to
cope up with the economy, they started focusing on
educational sector in order to have skilled labor. They
want to utilize their skilled labors in industrial sector
rather than technological factor. Because of revolution
of technological changes they have focused on
industries to increase as well as improve their living
standards.
As a result of this model, the surplus labor, skilled
labors that have improve all the sectors simultaneously

H-D Growth Model

H-D model wants to know that rate of growth of
income, which could maintain equilibrium
without inflation and deflation .
The model suggests that the economys rate of
growth depends on the level of savings & the
productivity of investment
H-D model also applies on the economy of the
Bangladesh, the reasons are
Savings are increasing
Technology is being increasing
Investments are also increasing

SOLOW
GROWTH
MODEL
Solow model is implemented in Bangladesh because
the saving rate in Bangladesh is high and the
population rate is comparatively low.
Advancement in technology

False paradigm model

Not applicable because Bangladesh is
under developed country

CONCLUSION &
RECOMANDATIONS