The readymade garment (RMG) industry and remittances from the expatriates are the two key sectors that lead the drivers of growth for the country, opined participants at an event on Monday.
The observation came from the “Plenary Session” on Innovation in Monetary Policy, Economic Development, and Five Year Plan on the Celebration of Birth Centenary of the Father of Nation Bangabandhu Sheikh Mujibur Rahman.
The event was organised by the Bangladesh Institute of Bank Management (BIBM), on its premises, according to a press statement.
Dr Hossain Zillur Rahman, former caretaker government adviser and chairperson of BRAC, was present in the programme as chief guest, while the event was also attended by Dr Atiur Rahman, former governor of Bangladesh Bank; Mustafa K Mujeri, executive director, Institute for Inclusive Finance and Development (InM); Professor Barkat-e-Khuda; MA Sattar Mandal, former vice-chancellor of Bangladesh Agricultural University, among others.
Dr Md Akhtaruzzaman, Director General of BIBM, chaired the programme.
In his speech, Dr Hossain Zillur Rahman said that the RMG and remittances are the two sectors leading the country as growth drivers.
“Agriculture is also playing a key role in the country’s growth driver, while many sectors have lagged behind due to Covid-19 pandemic.”
He also said there have been drastic changes in the rural areas but we have not sufficient information about those locations.
Dr Atiur Rahman said policy support given by a developmental central bank to most of the borrowers of small loans from the microfinance institutions (MFIs) have by now transformed into Micro, Small, and Medium Enterprises (MSMEs).
“So the growth story of Bangladesh looks so robust and thriving, of course until very recently,” he added.
He continued, “However it is encouraging to note that the Bangladesh government, with the refinancing support of the central bank, has come out with a number of stimulus packages focusing on agriculture, Small and Medium Enterprises (SMEs) and informal unorganised sector to keep these small and medium entrepreneurs on the move.”
Dr Mustafa K Mujeri said Bangladesh has made remarkable progress in raising economic growth and reducing poverty since its independence in 1971.
“After the independence, Bangladesh was one of the poorest countries in the world with a war-ravaged economy. Its economic prospects were regarded so unpromising that it was considered as a ‘test case for development,” he said.
Dr Barkat-e-Khuda said that high growth is being achieved due to the inclusive activities of the banking sector.
“Bangladesh has shown special success in alleviating poverty, which is now the role model in the world,” he added.
Dr MA Sattar Mandal said that formal introduction to the planned economy in Bangladesh began with the launching of the First Five Year Plan (FFYP), 1973-78 from July 1973.
“It was actually a broad road map toward economic development following a socialistic path in line with the fundamental principles laid down in the constitution of the newly independent country,” said Dr Mandal.
He went on saying, “The need for a planned economy was underscored by Father of the Nation Bangabandhu Sheikh Mujibur Rahman in his pronouncements for the emancipation of people from poverty, hunger and injustices. He had mobilised a group of dedicated professional economists of high international repute to form the first Planning Commission immediately after he took over as the Prime Minister of the country, and the FFYP was prepared in an unusually short period of one and a half years time.”
Dr Md Akhtaruzzaman said, Bangabandhu and Bangladesh are essentially the same – one could not have existed without the other.
“Bangladesh is rapidly progressing towards becoming a middle-income country by 2021 and a developed country by 2041. Bangladesh is now considered as an emerging tiger and often mentioned as a role model for development,” said Dr Zaman.
In contrast to the then despair of the ‘bottomless basket,’ Bangabandhu considered the financial sector as a catalyst for economic development, he said, adding, “As such, BIBM was established in 1974 to cater to the training, education, research, and consultancy needs of the financial sector of the country.”
Dr Prashanta Kumar Banerjee, of the BIBM, said that immediately after the glorious victory in the Liberation War, Bangabandhu inherited a war-ravaged economy and a shattered banking sector due to the exodus of massive bank deposits, capital transfers and outmigration of the then Pakistani bank owners during the War of Liberation.
“To revive the economy, the father of nation declared the then State Bank of Pakistan in the East wing as the Bangladesh Bank with all statutory authority and functions of a traditional central bank,” he said.
He continued, “All private banks, owned by erstwhile Pakistani entrepreneurs except foreign banks at that time, had to be subsequently nationalised by Bangabandhu without any waste of time. These prudent steps were timely and in the right direction to restore economic vitality in the newly independent Bangladesh.”
The BIBM has published a special issue of the quarterly journal “Bank Parikrama,” a flagship publication of BIBM to celebrate the birth centenary of Bangabandhu, where 10 articles of eminent economists, academics, bankers and researchers of the country have been published.
The celebration of Bangabandhu’s birth centenary started on March 17 in 2020 and will continue until December 16 this year.
Dr. Muzaffer Ahmad, chair professor of BIBM moderated the programme, while Ashraf Al Mamun, associate professor and director (Research, Development & Consultancy) of BIBM gave the vote of thanks.
A good number of participants including economists, senior bank executives, academicians, media representatives, faculty members of BIBM also participated in the event.
