Policy watch: What factors helped Bangladesh overtake India in per capita income?

[Bilal9]

No doubt fdi is pouring into your it sector that employs some millions. My question was whats happening with the rest?

Oh so you are saying you never wrote this :

"The day infestation of India by Bangladeshis is reversed will be a sure-shot answer BD has become "richer" than India."

Its ok, maybe you had a short term memory loss.
You may have missed your daily dose of miracle medicine Panchagavya. It happens, let it go...


For our dear readers, Panchagavya or panchakavyam is a mixture used in traditional Hindu rituals that is prepared by mixing five ingredients. The three direct constituents are cow dung, urine, and milk; the two derived products are curd and ghee. These are mixed in proper ratio and then allowed to ferment.

Thanks - I will give it a pass.....

 

[mmr]

FDI investments in Indian IT sector will also attract larger amounts than other sectors (especially in India which is a much larger country than Bangladesh), so that is another point of discussion. They were doing this even before the 90's.

IT investments are cyclical and wane and ebb with demand. However people don't stop needing basic clothes and medicine, demand is more or less constant and exists even during recessionary times.

The fact is - top down development like in India (as @BananaRepublicUK bhai mentioned above) does nothing for the poor in India and that is the spot India is in today (GINI coefficient is off the charts, ironically which Modi and BJP actually want).

Bottom up development is what helps third world countries and which historically helped the Asian tigers in ASEAN. @Homo Sapiens bhai is the expert on this, he can kindly elaborate. This is the next best thing to having communism, along with some basic social safety net (healthcare, income protection, universal pensions) which Bangladesh is already planning. @jamahir bhai your comments.

I am proud of the fact that Bangladesh has made it this far on steady local industrial and commercial investments where we ourselves are not dependent on the vagaries

You need FDI. every country from china to thailand was able to devlop because of FDI and transfer of knowledge. BD failed on both and still focus on one sector. few thousands garments owners dictate the trade policy in bd.

No doubt fdi is pouring into your it sector that employs some millions. My question was whats happening with the rest?

Oh so you are saying you never wrote this :

"The day infestation of India by Bangladeshis is reversed will be a sure-shot answer BD has become "richer" than India."

Its ok, maybe you had a short term memory loss.
You may have missed your daily dose of miracle medicine Panchagavya. It happens, let it go...


For our dear readers, Panchagavya or panchakavyam is a mixture used in traditional Hindu rituals that is prepared by mixing five ingredients. The three direct constituents are cow dung, urine, and milk; the two derived products are curd and ghee. These are mixed in proper ratio and then allowed to ferment.

IT sector is not just one sector. Its massive. The eco system indians created in last few decades will bring lot more prosperity than selling cheap garments in dirt cheap discounts to western brands. and who told you its just IT sector. The investment firm i work for announced they will invest 50 billion USD in next 5 years in indian in-fracture, real estate and green tech.


even in garmens bd is at low tier. most high end garments dominated by vietnam and china. you find most made in bd products in walmart or h and m. companies known for low quality low value cloths.

its good to feel proud but its dumb not to realize what BS bd govt whining day and night. We should ask why the **** no global hedge funds, equity managers and MNCs not pouring billions in so called "development model" country. 2 billion FDI for a country of 170 million ppl and that also mostly in power sector is a joke.

 

[Wood]

I think the Indian economic growth slowed because of demonetization and initial inefficiencies in GST implementation from policy and administration perspective. Then COVID year had a big economic contraction for India. These factors would have helped Bangladesh close the gap in nominal terms. I do not know what policies from Bangladesh perspective contributed to their accelerating growth. It is perhaps likely that stable government has helped Bangladesh during this time.

For India, I think the effects of the above cited factors will eventually wane and economic growth will be back on track. I don't see structural issues because of 'em.

 

[Rushd Alam]

You need FDI. every country from china to thailand was able to devlop because of FDI and transfer of knowledge. BD failed on both and still focus on one sector. few thousands garments owners dictate the trade policy in bd.



IT sector is not just one sector. Its massive. The eco system indians created in last few decades will bring lot more prosperity than selling cheap garments in dirt cheap discounts to western brands. and who told you its just IT sector. The investment firm i work for announced they will invest 50 billion USD in next 5 years in indian in-fracture, real estate and green tech.


even in garmens bd is at low tier. most high end garments dominated by vietnam and china. you find most made in bd products in walmart or h and m. companies known for low quality low value cloths.

its good to feel proud but its dumb not to realize what BS bd govt whining day and night. We should ask why the **** no global hedge funds, equity managers and MNCs not pouring billions in so called "development model" country. 2 billion FDI for a country of 170 million ppl and that also mostly in power sector is a joke.

Yes you are right about we attract less FDI, but you speak about FDIas it has no negetive impact on the longrun. Bangladesh is seeing enourmous growth in its export and gdp without the aid of fdi and government is working on to see if they can facilitate foreign investors more to increase the FDI, but it is not a major concern as we are not relient on foreign fdi for the growth we have now.

All foreign investors look to invest to get return on their investment, yes it creates immidiate job and some infrastructure but reaping out the full benefit of fdi where a country can be in net positive is a matter of calculation.

We never dream of fdi like 50 billion like india as this will create a huge imbalance in our internal investment and foreign investors will eat out the cream of our development and all we will be left with is wages of our workers. FDI can have seripus impact on local investors, i guess you know already. Dont get me wrong, I am not against FDI leverage but not in favour of the amount that will make us slaves of modern economic colonialism.

Hope you are well aware both FDI and international credit are leverages and careful calculation is required before allowing this. Our policymakers havent made it too easy for foreign investors to invest in BD, you can see we are prettymuch at the bottom of the ease of doing business index. Our complex tax structure and capital transfer policies havent made it easy for investors to reap out the cream without contributing a share to us. For example our telecom companies, all foreign investors, pay 45 % tax. Anyone is welcome to invest in our country with these barriers to entry but not looking to at the expense of our local investment and reaping out all benefit to themselves.

 

[mmr]

Yes you are right about we attract less FDI, but you speak about FDIas it has no negetive impact on the longrun. Bangladesh is seeing enourmous growth in its export and gdp without the aid of fdi and government is working on to see if they can facilitate foreign investors more to increase the FDI, but it is not a major concern as we are not relient on foreign fdi for the growth we have now.

All foreign investors look to invest to get return on their investment, yes it creates immidiate job and some infrastructure but reaping out the full benefit of fdi where a country can be in net positive is a matter of calculation.

We never dream of fdi like 50 billion like india as this will create a huge imbalance in our internal investment and foreign investors will eat out the cream of our development and all we will be left with is wages of our workers. FDI can have seripus impact on local investors, i guess you know already. Dont get me wrong, I am not against FDI leverage but not in favour of the amount that will make us slaves of modern economic colonialism.

Hope you are well aware both FDI and international credit are leverages and careful calculation is required before allowing this. Our policymakers havent made it too easy for foreign investors to invest in BD, you can see we are prettymuch at the bottom of the ease of doing business index. Our complex tax structure and capital transfer policies havent made it easy for investors to reap out the cream without contributing a share to us. For example our telecom companies, all foreign investors, pay 45 % tax. Anyone is welcome to invest in our country with these barriers to entry but not looking to at the expense of our local investment and reaping out all benefit to themselves.

Well lets agree to disagree.

We will know in future how far bd can go without FDI

 

[Wergeland]

Bangladesh should not be compared with India because India is very big. Bangladesh should be compared with states of India. Many Indian states GDP per capita is higher than Bangladesh and in Pakistan sindh province has higher per capita GDP than Bangladesh

Then India should not be compared with America or Germany, as they also have population size similar to populous indian states.

 

[Rushd Alam]

Then India should not be compared with America or Germany, as they also have population size similar to populous indian states.

Did you understand what you just said!

 

[Wergeland]

Did you understand what you just said!

Yes i did.
??

 

[Black Tornado]

The investment firm i work for announced they will invest 50 billion USD in next 5 years in indian in-fracture, real estate and green tech.

Which firm ?

 

[Rushd Alam]

Yes i did.
??

What sort of compaiarison it would look like if we compaire like the state of uttar pradesh with us or germany with compairable population.why would anyone do this?

 

[Wergeland]

What sort of compaiarison it would look like if we compaire like the state of uttar pradesh with us or germany with compairable population.why would anyone do this?

That is exactly what i am trying to say.
The only meaningful and proper way is to compare country vs country.

 

[mmr]

Which firm ?

Brookfield

Its not in public information yet but you will see in coming years lots of investment in tranches from this company.

 

[UKBengali]

Yes you are right about we attract less FDI, but you speak about FDIas it has no negetive impact on the longrun. Bangladesh is seeing enourmous growth in its export and gdp without the aid of fdi and government is working on to see if they can facilitate foreign investors more to increase the FDI, but it is not a major concern as we are not relient on foreign fdi for the growth we have now.

All foreign investors look to invest to get return on their investment, yes it creates immidiate job and some infrastructure but reaping out the full benefit of fdi where a country can be in net positive is a matter of calculation.

We never dream of fdi like 50 billion like india as this will create a huge imbalance in our internal investment and foreign investors will eat out the cream of our development and all we will be left with is wages of our workers. FDI can have seripus impact on local investors, i guess you know already. Dont get me wrong, I am not against FDI leverage but not in favour of the amount that will make us slaves of modern economic colonialism.

Hope you are well aware both FDI and international credit are leverages and careful calculation is required before allowing this. Our policymakers havent made it too easy for foreign investors to invest in BD, you can see we are prettymuch at the bottom of the ease of doing business index. Our complex tax structure and capital transfer policies havent made it easy for investors to reap out the cream without contributing a share to us. For example our telecom companies, all foreign investors, pay 45 % tax. Anyone is welcome to invest in our country with these barriers to entry but not looking to at the expense of our local investment and reaping out all benefit to themselves.

Who gives a rat's about FDI as BD is well capable of developing tech all by itself in areas like electronics and pharma.

FDI worked for a country like China as it was able to cleverly use it's massive market to force foreign multinationals to hand over IP.

Those countries heavily reliant on FDI never really make it past the "middle-income" stage like Thailand etc. The reason is that the FDI only creates some semi-skilled jobs and all the profits are repratiated overseas. No multinational will hand over their IP to you as India has found out.

BD government is DELIBERATELY keeping FDI at quite modest levels as it wants to allow BD companies to develop.

This is exactly the same model that has been successfully followed by successful economies like S Korea and Taiwan.

 

[Wood]

Which firm ?

Nice catch. Always eye on the prize

 

[Black_cats]

I understand....possibly more than you could know (having faced a prolonged episode of abuse on whatsapp group from bunch of sanghi turds).

Sad reflection of our times, all too many people (India is no exception) wear toxic politics of the time on their sleeve and the stench imposes and lingers inevitably.

There is toxic indian forum that follows this one like shadow...while pumping out these clown accounts to send here I am told.

I'm primarily here for a behind the scenes project with some other members here rather than to get involved in the general forum side of stuff....but let me tell you what I think since you seem to be a long term member who cares about his country/people.

I feel this subforum truly reasonable members need not answer toxic troll stuff with mud for mud.

Even if the moderators are not taking appropriately action against persistent foul nuisances....surely (what seems to be a) tight knit BD membership core here can take own unique, wise and prudent action?

If you make the unprofessional people stick out like a sore thumb (to anyone reasonable thats worth convincing on your arguments/discussions) by ignoring them entirely (thus make them talk only to themselves like bunch of village idiots that lost their way), they lose surely? Only intervene if there is a new or worth member chatting getting misinformed by whatever antic etc.

If you respond to them, is it not them that end up winning as now you have accepted them as worthy to spend time and attention on?...they now know all they need to do is show up and paste some blah blah to get a whole topic derailed in stupid way.

If its one thing I know about Bengali people is their tough indomitable nature deep down. I am sure you guys here will come up with a better solution with time.

Maybe subforum needs its own dedicated Bangladeshi moderator if possible (elected by the long term core membership here)?

But even if that option not available why turn this place into a mini-twitter swamp by giving (repeat reruns of) toxic people too much time of your day? Same old people with same old mental issues, what's to gain?

There's literally no point answering negativity with more of it....and just being the same thing as rest of social media in general. Be something different as you can IMO.

You owe it to yourself to see the movie "Cool runnings" if you havent already, it doesn't matter what naysayers/pessimists/toxic/jealous and other negative vibe ppl think and try pull you down with....

....it matters what you think and do with people that think and do the same.

You only get pulled down if you let yourself be.

Good people in audience (worth making a good discussion for) will recognise that all (even if they only watching from afar),

You must trust them...to see things clearly. You make this place what you all (better minded ones) choose to make it.

God bless jamaica:

@Joe Shearer

Instead of spamming what I told you before stick to one account instead of creating multiple accounts one after the another violating forum rule.

If this place is toxic what makes you come here again and again?

If you would like to have genuine conversation have it in a decent manner like the individual you tagged or many other who engage here on a regular basis.