Our newspaper on Wednesday reported that the country stands at a critical juncture in its development journey, grappling with the complexities of being trapped in the middle-income category.
Quoting Dr Debapriya Bhattacharya, a distinguished fellow at the Centre for Policy Dialogue, it said that some multifaceted issues hinder the nation’s progress and underscore the urgent need for comprehensive reforms.
One of the most pressing concerns is the low productivity of the labour force across various sectors, particularly in manufacturing, agriculture, and services.
The over-reliance on the garment industry has stifled diversification, leaving other potential sectors like jute, leather, and IT underexploited. To break free from this dependency, the government must create incentives that encourage innovation and investment in these areas.
Equally alarming is the state of education in Bangladesh. With less than 2 per cent of GDP allocated to this critical sector, the country lags behind its peers.
We agree with Dr. Bhattacharya as he rightly points out that a significant portion of the education budget is consumed by non-productive expenditures, such as salaries, leaving little for actual development.
The focus should shift from merely establishing universities to enhancing the quality of primary education, which is foundational for a skilled workforce.
Moreover, the high cost of migration for Bangladeshi workers, exacerbated by corruption and exploitation, poses another significant barrier.
The current system drains the earnings of migrant workers, depriving them of the benefits they deserve. Addressing these systemic issues is essential for improving the livelihoods of countless families.
Unplanned urbanisation and industrialisation further complicate the landscape, leading to challenges in traffic management, law enforcement, and the provision of quality public services.
These factors collectively hinder Bangladesh’s aspirations to escape the middle-income trap.
As Dr. Bhattacharya embarks on another term with the UN Committee for Development Policy, his expertise will be invaluable in navigating these challenges.
The path forward requires a concerted effort from all stakeholders — government, private sector, and civil society — to foster an environment conducive to sustainable growth and development.
Bangladesh’s aspirations to rise above its current economic status hinge on addressing these critical issues. Therefore, we must say that without meaningful reforms and a commitment to quality education and diversified economic growth, the dream of becoming a high-income nation may remain elusive.
