Introduction
Bangladesh had many reasons for economic stagnation after the war of independence. The general destruction after the hostilities, the lack of developed infrastructure, and natural resources, political instability, and corruption. Such example had a significant impact on the development of the newly emerging state, slowing it down (Bair et al., 2020). The lack of infrastructure had negative consequences since it would not be possible to establish any important and profitable enterprises without it.
Discussion
Thus, the country could not start sustainable development without this important element. Natural resources are another factor that has led to poor economic conditions. Without the ability to engage in the extraction of important minerals or advanced agricultural business, the country could not produce its goods. In addition, the situation with food was also in critical condition since there were practically no fields for sowing and farms (Quisumbing et al., 2021). Since the country’s population was growing rapidly, it was difficult to feed all the people, and famine began. This further worsened the economic situation and hindered its development.
Liberalization in Bangladesh in the 1990s began with a protest movement since the population was dissatisfied with the current government policies. The result of confrontation was the resignation of the President of the country. This period was a turning point in the country’s history as the people began to feel the benefits of democracy. The next government also did not succeed in solving the problems of the country, and they had to hold early elections. Such facts can be sound example that led to the liberalization of society since the authorities understood that the people were of paramount importance in expressing political interests (Bair et al., 2020). Due to this liberalization policy, Bangladesh achieved economic growth as the government began to listen to the population’s wishes. This led to the new government’s focus on favorable conditions for the country. New power established foreign relations with neighboring countries, including trade (Bair et al., 2020). In addition, India provided a large loan to Bangladesh, which allowed the country to invest in the development of the country. The government agreed with India on the possibility of transiting goods through Bangladesh (Quisumbing et al., 2021). In addition, trade relations with the United States were established, which significantly accelerated the economy’s growth through the turnover and exchange of various goods. A large role in the liberalization and development of the country’s economy was played by currency conversion, which contributed to the floating exchange rate.
Agriculture and textiles of the country are of great importance for the country’s economy. The export of these goods is the country’s main type of economic interaction. At the same time, this business area is the most profitable for the country since the authorities have abolished most taxes and duties on importing materials for textile products. Thus, its production costs local factories cheaper than most in other countries. The country’s agriculture is ensured because its geographical location successfully coincides with the channels of two rivers, which means that the soil quality is good for planting (Quisumbing et al., 2021). The export of textiles is not a limitation since the country has a strong infrastructure and production facilities. Thus, the emergence of new competitors for the country in this area is impossible since this requires large investments.
Conclusion
In conclusion, the construction of significant industries takes much time and is not profitable for other countries. Therefore, Bangladesh is firmly fixed in this industry, and there are no prerequisites for weakening these positions. With agriculture, the situation is different since the development of this area is much easier. Therefore there is a high probability that new competitors may appear in the export market of this product. Thus, the main risks in both industries may be running conditions such as frequent storms and natural disasters. This can significantly worsen the condition of these areas, as they can significantly damage crops and plants. In the case of the agricultural sector, the emergence of new competitors may also be a risk. Bangladesh can diversify its industrial and commercial base by building a robust banking sector. In this way, greater security of funds can be achieved.
References
Bair, J., Anner, M., & Blasi, J. (2020). The political economy of private and public regulation in post-Rana Plaza Bangladesh. ILR Review, 73(4), 969-994. Web.
Quisumbing, A., Ahmed, A., Hoddinott, J., Pereira, A., & Roy, S. (2021). Designing for empowerment impact in agricultural development projects: Experimental evidence from the Agriculture, Nutrition, and Gender Linkages (ANGeL) project in Bangladesh. World Development, 146, 105622. Web.