Economic summary:GDP/PPP (2005 est.): $301.4 billion; per capita $2,100. Real growth rate: 5.4%. Inflation: 6.7%. Unemployment: 2.5% (includes underemployment). Arable land: 55.39%. Agriculture: rice, jute, tea, wheat, sugarcane, potatoes, tobacco, pulses, oilseeds, spices, fruit; beef, milk, poultry. Labor force: 66.6 million; note: extensive export of labor to Saudi Arabia, Kuwait, UAE, Oman, Qatar, and Malaysia; agriculture 63%, industry 11%, services 26% (FY95/96). Industries: cotton textiles, jute, garments, tea processing, paper newsprint, cement, chemical fertilizer, light engineering, sugar. Natural resources: natural gas, arable land, timber, coal. Exports: $9.372 billion (2005 est.): garments, jute and jute goods, leather, frozen fish and seafood (2001). Imports: $12.97 billion (2005 est.): machinery and equipment, chemicals, iron and steel, textiles, foodstuffs, petroleum products, cement (2000). Major trading partners: U.S., Germany, UK, France, Italy, India, China, Singapore, Kuwait, Japan, Hong Kong (2004).
Communications: Telephones: main lines in use: 831,000 (2004); mobile cellular: 2,781,600 (2004). Radio broadcast stations: AM 15, FM 13, shortwave 2 (2006) Television broadcast stations: 15 (1999). Internet hosts: 266 (2005). Internet users: 300,000 (2005).
Transportation: Railways: total: 2,706 km (2004). Highways: total: 239,226 km; paved: 22,726 km; unpaved: 216,500 km (2003). Waterways: 8,372 km; note: includes 2,635 km main cargo routes (2005). Ports and harbors: Chittagong, Mongla Port. Airports: 16 (2005).
Bangladesh News
HISTORY OF BANGLADESH
The 13th and 15th Century
From the 13th century A.D. the Buddhists and Hindus were swamped by the flood of Muslim conquerors and the tide of Islam up to 18th century. Sometimes there were independent rulers like the Hussain Shahi and Ilyas Shahi dynasties, while at other times they ruled on behalf of the Imperial seat of Delhi.
From the 15th century, the Europeans, namely Portuguese, Dutch, French and British traders exerted an economic influence over the region. British political rule over the region began in 1757 A.D., when the last Muslim ruler of Bengal was defeated at Palassey. In 1947 the subcontinent was partitioned into India and Pakistan. Present Bangladesh became the Eastern Wing of the then Pakistan. But the movement for autonomy of East Pakistan started within a couple of years because of language and cultural differences and economic disparity between the two wings.
The Language Movement The Language Movement of 1952 to recognize Bangla as a state language may be termed as the first step towards independence.
Political and economic deprivation of the Bengalees prompted Bangabandhu Sheikh Mujibur Rahman, the Father of the Nation, to put forward in 1966 his historic six points, the "Magna Carta" which in effect structured the foundation for East Pakistan's future independence.
The War of Liberation
In the 1970 elections, even though the Awami League emerged as the largest party in Pakistan Parliament, it was not allowed to form the government by the ruling military junta. In the backdrop of a non-cooperation movement launched against the military regime by Awami League.
Bangabandhu declared at a historic public meeting held at Ramna Race Course (renamed Suhrawardy Uddyan) on 7 March, 1971, attended by around 2 million people, "The struggle this tune is the struggle for freedom, the struggle this tune is the struggle for independence." It was a defacto declaration of independence.
Thus in a preplanned manner on 25th March 1971. The Pakistan army embarked on what may be termed as history's worst genocide. A military crackdown was ordered, and Bangabandhu Sheikh Mujib was arrested and taken away to West Pakistan. But just before he was arrested he sent out a call for the liberation war to begin. Known as the Declaration of (lie War of Independence, this hurriedly written historic document read as follows:
"Pak Army suddenly attacked EPR Base at Pilkhana, Rajarbagh Police Line and killing citizens. Street battles are going on in every street of Dacca. Chittagong. I appeal to the nations of the world for help. Our freedom fighters are gallantly fighting with the enemies to free the motherland. I appeal and order you all in the name of Almighty Allah to fight to the last drop of blood to liberate the country. Ask Police, EPR, Bengal Regiment and Ansar to stand by you and to fight. No compromise. Victory is ours. Drive out the enemies from the holy soil of motherland. Convey this message to all Awami League leaders, workers and other patriots and lovers of freedom. May Allah bless you. Joy Bangla".
Independence
After nine months of war, the Pakistani occupation forces surrendered in Dhaka on 16th December. 1971 after killing an estimated three million people. Due to the heroic resistance and supreme sacrifices of the valiant freedom fighters Bangladesh finally became an independent sovereign state.
Father of the Nation Bangahandhu Sheikh Mujibur Rahman was the founder- president of Bangladesh. He was subsequently assassinated on 15th August, 1975 by a group of conspirators. After 21 years of military and authoritarian rule, Bangabandhu's party-Bangladesh Awami League led by his illustrious daughter Sheikh Hasina, swept hack to power through a very free and fair parliamentary election held under a Caretaker Government in June. 1996.
Bangladesh Economy
Although one of the world's poorest and most densely populated countries, Bangladesh has made major strides to meet the food needs of its increasing population, through increased domestic production augmented by imports. The land is devoted mainly to rice and jute cultivation, although wheat production has increased in recent years; the country is largely self-sufficient in rice production. Nonetheless, an estimated 10% to 15% of the population faces serious nutritional risk. Bangladesh's predominantly agricultural economy depends heavily on an erratic monsoonal cycle, with periodic flooding and drought. Although improving, infrastructure to support transportation, communications, and power supply is poorly developed. Bangladesh is limited in its reserves of coal and oil, and its industrial base is weak. The country's main endowments include its vast human resource base, rich agricultural land, relatively abundant water, and substantial reserves of natural gas.
Since independence in 1971, Bangladesh has received more than $30 billion in grant aid and loan commitments from foreign donors, about $15 billion of which has been disbursed. Major donors include the World Bank, the Asian Development Bank, the UN Development Program, the United States, Japan, Saudi Arabia, and west European countries. Bangladesh historically has run a large trade deficit, financed largely through aid receipts and remittances from workers overseas. Foreign reserves dropped markedly in 2001 but stabilized in the $3 to $4 billion range (or about 3 months' import cover). In January 2007, reserves stood at $3.74 billion, and they increased to $5.39 billion by January 2008, according to the Bank of Bangladesh, the central bank.
Moves Toward a Market Economy
Following the violent events of 1971 during the fight for independence, Bangladesh--with the help of large infusions of donor relief and development aid--slowly began to turn its attention to developing new industrial capacity and rehabilitating its economy. The static economic model adopted by its early leadership, however--including the nationalization of much of the industrial sector--resulted in inefficiency and economic stagnation. Beginning in late 1975, the government gradually gave greater scope to private sector participation in the economy, a pattern that has continued. A few state-owned enterprises have been privatized, but many, including major portions of the banking and jute sectors, remain under government control. Population growth, inefficiency in the public sector, resistance to developing the country's richest natural resources, and limited capital have all continued to restrict economic growth.
In the mid-1980s, there were encouraging, if halting, signs of progress. Economic policies aimed at encouraging private enterprise and investment, denationalizing public industries, reinstating budgetary discipline, and liberalizing the import regime were accelerated. From 1991 to 1993, the government successfully followed an enhanced structural adjustment facility (ESAF) with the International Monetary Fund (IMF) but failed to follow through on reforms in large part because of preoccupation with the government's domestic political troubles. In the late 1990s the government's economic policies became more entrenched, and some of the early gains were lost, which was highlighted by a precipitous drop in foreign direct investment in 2000 and 2001. In June 2003 the IMF approved 3-year, $490-million plan as part of the Poverty Reduction and Growth Facility (PRGF) for Bangladesh that aimed to support the government's economic reform program up to 2006. Seventy million dollars was made available immediately. In the same vein the World Bank approved $536 million in interest-free loans.
Efforts to achieve Bangladesh's macroeconomic goals have been problematic. The privatization of public sector industries has proceeded at a slow pace--due in part to worker unrest in affected industries--although on June 30, 2002, the government took a bold step as it closed down the Adamjee Jute Mill, the country's largest and most costly state-owned enterprise. The government also has proven unable to resist demands for wage hikes in government-owned industries. Access to capital is impeded. State-owned banks, which control about three-fourths of deposits and loans, carry classified loan burdens of about 50%.
The IMF and World Bank predict GDP growth over the next 5 years will be about 6.0%, well short of the 8%-9% needed to lift Bangladesh out of its severe poverty. The initial impact of the end of quotas under the Multi-Fiber Arrangement has been positive for Bangladesh, with continuing investment in the ready-made garment sector, which has experienced annual export growth of around 20%. Downward price pressure means Bangladesh must continue to cut final delivered costs if it is to remain competitive in the world market. Foreign investors in a broad range of sectors are increasingly frustrated with the politics of confrontation, the level of corruption, and the slow pace of reform. While investors view favorably recent steps by the interim government to address corruption, governance, and infrastructure issues, most believe it is too early to assess the long-term impact of these developments.
Sources:
CIA World Factbook (September 2008)
U.S. Dept. of State Country Background Notes (August 2008)
