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Bangladesh: The next Singapore or the next Sri Lanka?
Which of these two sides are we going to uphold as our real identity?
Shamnoon Muheb Chowdhury
Published: April 28, 2023 4:30 AM | Last updated: April 28, 2023 4:31 AM
There is significant focus on the current economic conditions of Bangladesh, where our struggling foreign reserve, our share of Chinese debt, and trade deficit have been highlighted repeatedly by parties both inside and outside the country, to the point where it has induced significant panic within the general population that Bangladesh is headed towards a similar fate as Sri Lanka, our neighbor in the south.
An article stated: “It's impossible for Bangladesh to bullet-proof itself from the current global economic slowdown, because it's so entwined with the rest of the world.” Another report by China Daily said that famine tensions were high in Bangladesh for the start of 2023.
A significant portion of the commentary contends that the government neglected to address a number of challenges that the Bangladesh economy was developing, and that the combination of shocks to the global economy and these underlying deficiencies led to the current economic climate.
There is no doubt that the Bangladesh economy is facing significant challenges, particularly due to the pressure of the global economy of the post pandemic era. It is certainly true that there are issues that need the government's immediate attention.
The rising cost of food and everyday items have become a serious problem, especially for the working class. The increasing trade deficit, fuel crisis, and devaluation of the taka against the dollar as a result of a falling foreign currency reserve are some of the growing concerns that need to be addressed as soon as possible -- and the government needs to be very vigilant while working towards a solution.
The biggest threat to our economy, however, is corruption. Every time we celebrate a milestone achievement, the media focus falls on a new scam. It is important to acknowledge the detrimental impact of internal financial scandals on Bangladesh's position in the global market and it is high time that we work to enforce stricter measures against corruption, especially in the financial sector.
Although there is no denying the fact that we are indeed in a challenging situation in terms of our economy, that is true for most developing countries at the moment. And even though we are not out of danger yet, we can be cautiously optimistic as Bangladesh has made great strides in improving its economy through a variety of developmental projects worth almost $40 Billion.
These include the expansion of physical infrastructure, such as roads, railways, and ports including the Padma Multipurpose Bridge, The Dhaka Mass Rapid Transit Line-6, the third Terminal in Shahjalal International Airport, Karnaphuli Tunnel, Payra Deep Sea Port, and so on.
Also, the introduction of Special Economic Zones all over the country; the development of agricultural technology and irrigation systems; the expansion of job opportunities and workforce training; the promotion of financial inclusion; and the implementation of health, education, and social protection programs. The Bangladesh government has also made significant investments in energy infrastructure, including the Rooppur Nuclear Power Plant and Matarbari Power Plant.
This is helping the country to increase access to electricity and reduce its dependence on imported energy sources. Additionally, Bangladesh has made progress in developing its digital infrastructure and services, which has enabled it to become a hub for digital innovation and entrepreneurship.
Foreign Direct Investments (FDI) is still a challenge, but still, almost $1.2bn was invested in Bangladesh in 2022, which speaks for the untapped potential of the Bangladesh market. The government is also heavily investing in enhancing the skills and technological literacy of our sizable human resources, particularly in the IT and tech sectors, reminiscent of Singapore's success story in the 1980s and 1990s.
Now, on one hand we are struggling with corruption, and a harsh economic climate, and on the other hand, we are developing multi-billion dollar infrastructure that will help build a robust economy and propel Bangladesh to a middle income country within a very short time if utilized properly.
The question is, which of these two sides are we going to uphold as our real identity?
It has been proven that we are capable of initiating and completing these mega projects, and it has also been proven that along the process we let corruption run rampant, ultimately driving up the cost of basically any endeavour that is attempted.
Prime minister Sheikh Hasina recently asked public servants of all levels to steer clear of the “red tape” culture and work towards the benefit of the country and its people. There are some parties inside Bangladesh who are clearly trying to tarnish Bangladesh's image for their self gain, and it is important to identify these negative parties and take appropriate measures and work towards fighting corruption and increase the ease of business, both locally and on a global scale.
The math here is straightforward -- in order to establish itself as a regional economic powerhouse, Bangladesh needs more foreign investment. In order to attract more foreign investment, we need to establish Bangladesh as a safe hub for foreign investment. We need a strong long-term strategy on how to build up our brand as an investor-friendly country with a fast growing and stable economy.
Bangladesh is on the cusp of becoming a major player in the global economy, and it is high time for the country to brand itself as a strong economic zone for investments. We should not be focusing on the debate of whether we are becoming the next Sri Lanka, or the next Singapore.
Rather, we should establish our own global brand and lead by example. With the right policies and incentives in place and a strong stance against corruption, Bangladesh can become a key destination for foreign investments, allowing the country to reap the rewards of rapid economic growth and development.
Shamnoon Muheb Chowdhury is the director of Go BD Go Ltd.
Bangladesh: The next Singapore or the next Sri Lanka?
Which of these two sides are we going to uphold as our real identity?
