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

[mmr]

You have very little knowledge on FDI that’s evident from your post. Please don’t post things for which you have no idea.

Definitely RMG and remittance has helped Bangladesh but back in 1970s and 1980s that was the only viable way to make money. In Bangladesh has brought woman into work force, has increased their literacy rate and made up to HSC level education free, brought down fertility rate, gave many incentives to RMG sector to make it grow. All these happen desire people of Bangladesh is not willing to pay tax.

For your info Bangladesh doesn’t earn 50 USD just by selling underwear. It’s gradually moving to high end products. As many industries are leaving China the amount of export earning will only increase.

For manpower export Bangladesh is targeting now skilled migration with trade skill and nurse to western countries. They have launched number of initiative in this regard. If successful this will bring more remittance earning to Bangladesh.

Next thing Bangladesh is focusing on software development and aim to earn more on software development than RMG. For that training 1 million freelancer. Already Bangladesh is second in terms of number of freelancer.

Plus it’s focusing on ship building, pharmacy, electronics and auto industry as well.

To have FDI one need better infrastructure, electricity production, ease of doing business. Bangladesh is improving on the first two and need to do more on the last.

So please don’t embarrass yourself with your post like above.

What is with too personal. You dont like my post dont bother reply.

Only one embarrassing is you. underwear export is not 50. And to reach 40 billion swear shops export u also import 25 billion import of raw materials and need shit load of indian management to achive that. So net is very low.

Main driver is low skilled migrants in middle east and send poor women to get raped. Have u been to middle east how bd ppl are treated...worse then animals.

Freelance earn barely billion dollar. Mid tier IT companies made more then that.

All this pharmacy and ship building how long u will be bitching about same bs. It still didn't even pass 1 billion mark (not even 500 million) and we been hearing this since early 2000 lol. And what auto industry? Are you for real. U do realize bringing indian motorcycle parts and assemble in bd dont make u any one in auto industry right.

Only export item cross 1 billion is cotton underwear and some leather export which making havoc on environment.

 

[BananaRepublicUK]

But that should reflect in real world as well, leave motorcycles, phones etc, atleast electricity consumption, steel, cement consumption per capita should also be more than India in that case.

It’s reflected in the way Bangladesh sailed through covid.

Whilst Indians were rummaging for oxygen! Chucking dead bodies into rivers and chopping down roadside trees to burn bodies.

India literally suffered a genocide!

 

[Black_cats]

But that should reflect in real world as well, leave motorcycles, phones etc, atleast electricity consumption, steel, cement consumption per capita should also be more than India in that case.

Both are two different thing. We discussed in detail. Bangladesh just crossed India recently but India had higher per capita gdp in the last 2-3 decades that has caused higher per capita accumulated wealth to Indians but Bangladesh should close the gap in the coming years.

 

[Black_cats]

What is with too personal. You dont like my post dont bother reply.

Only one embarrassing is you. underwear export is not 50. And to reach 40 billion swear shops export u also import 25 billion import of raw materials and need shit load of indian management to achive that. So net is very low.

Main driver is low skilled migrants in middle east and send poor women to get raped. Have u been to middle east how bd ppl are treated...worse then animals.

Freelance earn barely billion dollar. Mid tier IT companies made more then that.

All this pharmacy and ship building how long u will be bitching about same bs. It still didn't even pass 1 billion mark (not even 500 million) and we been hearing this since early 2000 lol. And what auto industry? Are you for real. U do realize bringing indian motorcycle parts and assemble in bd dont make u any one in auto industry right.

Only export item cross 1 billion is cotton underwear and some leather export which making havoc on environment.

50 Billion USD is not a small industry plus its growing big every year. You have no knowledge on RMG that’s why you are saying it’s just underwear exporting sector. Bangladesh is moving up the value chain and not only that Bangladesh is targeting branding RMG sector abroad.

Regarding man power export if these low skilled people would not go abroad how they would make money? Over the years they worked in construction and other industries and that has given them valuable experience plus helped to improve financial condition of their family.

Now logical step of Bangladesh to focus on skilled manpower export.

Pharmaceutical industry is growing big. It’s meeting all the domestic consumption needs and started to export abroad. By 2025 it will be a 6 billion usd industry including both domestic and foreign export.

Bangladesh on track to becoming a $6b pharma market by 2025

The pharmaceutical market of Bangladesh is expected to surpass $6 billion by 2025 with an absolute growth of 114 per cent from its 2019 levels, according to a report from a Dublin-based market insight and analysis firm, Research and Markets.

www.thedailystar.net

Similarly shipbuilding, software export are emerging industries and will grow exponentially in coming years as all the ICT parks will complete.

What a mid tier industry earning has to do with it? How many peoples life the freelancing income has changed do you have any idea? That shows lack of your knowledge on economics.

For every industry one needs to start somewhere and it grows big over time. But that is something is not in your mind. I don’t know in which investment company you work as you have claimed and in which capacity and but with mind set like yours only god saves the company.

 

[Black Tornado]

It’s reflected in the way Bangladesh sailed through covid.

Whilst Indians were rummaging for oxygen! Chucking dead bodies into rivers and chopping down roadside trees to burn bodies.

India literally suffered a genocide!

How is it related to economics apart from cheap trolling mocking the victims of the pandemic?

Both are two different thing. We discussed in detail. Bangladesh just crossed India recently but India had higher per capita gdp in the last 2-3 decades that has caused higher per capita accumulated wealth to Indians but Bangladesh should close the gap in the coming years.

Well it doesn’t work that way, some things should be higher than us to have higher GDP per capita like per capita electricity consumption, steel consumption, cement consumption etc. Afterall GDP is the total value of all the goods and services produced in a country in one year and when divided by the total population giver per capita GDP.

 

[Bilal9]

50 Billion USD is not a small industry plus its growing big every year. You have no knowledge on RMG that’s why you are saying it’s just underwear exporting sector. Bangladesh is moving up the value chain and not only that Bangladesh is targeting branding RMG sector abroad.

Regarding man power export if these low skilled people would not go abroad how they would make money? Over the years they worked in construction and other industries and that has given them valuable experience plus helped to improve financial condition of their family.

Now logical step of Bangladesh to focus on skilled manpower export.

Pharmaceutical industry is growing big. It’s meeting all the domestic consumption needs and started to export abroad. By 2025 it will be a 6 billion usd industry including both domestic and foreign export.

Bangladesh on track to becoming a $6b pharma market by 2025

The pharmaceutical market of Bangladesh is expected to surpass $6 billion by 2025 with an absolute growth of 114 per cent from its 2019 levels, according to a report from a Dublin-based market insight and analysis firm, Research and Markets.

www.thedailystar.net

Similarly shipbuilding, software export are emerging industries and will grow exponentially in coming years as all the ICT parks will complete.

What a mid tier industry earning has to do with it? How many peoples life the freelancing income has changed do you have any idea? That shows lack of your knowledge on economics.

For every industry one needs to start somewhere and it grows big over time. But that is something is not in your mind. I don’t know in which investment company you work as you have claimed and in which capacity and but with mind set like yours only god saves the company.

I will admit that @mmr bhai may not be aware about whole picture of industrialization in Bangladesh.

Industrialization of a country (even Asian tigers) is a long, slow, steady slog. No one country became first tier economy from a third tier third world economy overnight.

I will answer each one of his points and explain further when I have more time.

 

[BananaRepublicUK]

How is it related to economics apart How is it related to economics apart from cheap trolling mocking the victims of t

Well it doesn’t work that way, some things should be higher than us to have higher GDP per capita like per capita electricity consumption, steel consumption, cement consumption etc. Afterall GDP is the total value of all the goods and services produced in a country in one year and when divided by the total population giver per capita GDP.

Apologies if it came across as mocking. Was not my intention.

I only want to highlight the weakness (massive unequal wealth distribution, insecure jobs and poor social fabric) of your underlying economy.

London Economist did a great piece on your so called middle class. And concluded it was smaller than Poland’s.

India collects an enormous share of GDP in taxes. BUT it is spent on the military and subsidies.

So, Indian economy on the surface looks like diverse but it is heavily subsidised and unprofitable.

Freight equalisation policy is a massive black hole.

Bangladesh collects a much smaller share of GDP in taxes but almost all of it is spent on the poor.

It is supplemented by zakat. Even crooked MPs pay zakat.

Which is why Bangladesh sailed through covid whilst India suffered a genocide!

 

[Black_cats]

How is it related to economics apart from cheap trolling mocking the victims of the pandemic?

Well it doesn’t work that way, some things should be higher than us to have higher GDP per capita like per capita electricity consumption, steel consumption, cement consumption etc. Afterall GDP is the total value of all the goods and services produced in a country in one year and when divided by the total population giver per capita GDP.

Bangladesh is following bottom up approach instead of top down approach of India. Average condition of Bangladeshis is higher than India specially among the poor and that can be verified looking at the HDI.

In Bangladesh no one die due to hunger, minister ask its people to eat rats or farmers commit suicide for example.

 

[Bilal9]

some things should be higher than us to have higher GDP per capita like per capita electricity consumption

All these numbers are to hoodwink global investors as is the wont of Modi planners.

Electricity consumption per capita does not compare across countries and does not mean jack.

Electricity consumption per capita will be higher for India because it uses massive amounts of electricity for blast furnaces and other heavy engineering projects (mining, electric locomotives).

Bangladesh has energy efficient industries. In fact Bangladesh has the world's foremost green factories, seven out of ten.

Many large garments factories in Bangladesh have solar in their roofs and don't take power from the grid.

Higher Electricity consumption per capita is not a benchmark for success in anything. Rather the opposite.

Bangladesh is following bottom up approach instead of top down approach of India. Average condition of Bangladeshis is higher than India specially among the poor and that can be verified looking at the HDI.

In Bangladesh no one die due to hunger, minister ask its people to eat rats or farmers commit suicide for example.

 

[BananaRepublicUK]

All these numbers are to hoodwink global investors as is the wont of Modi planners.

Electricity consumption per capita does not compare across countries and does not mean jack.

Electricity consumption per capita will be higher for India because it uses massive amounts of electricity for blast furnaces and other heavy engineering projects (mining, electric locomotives).

Bangladesh has energy efficient industries. In fact Bangladesh has the world's foremost green factories, seven out of ten.

Many large garments factories in Bangladesh have solar in their roofs and don't take power from the grid.

Higher Electricity consumption per capita is not a benchmark for success in anything. Rather the opposite.

India has a massive oil refinery industry. Again, big consumer of power.

 

[UKBengali]

I will admit that @mmr bhai may not be aware about whole picture of industrialization in Bangladesh.

Industrialization of a country (even Asian tigers) is a long, slow, steady slog. No one country became first tier economy from a third tier third world economy overnight.

I will answer each one of his points and explain further when I have more time.

Unfortunately it is not awareness but more butthurt against BAL as BNP has been destroyed by them.

That poster is on my ignore list for many years due to this reason and no respect for anyone that puts BD down constantly to foreigners on pdf.

His ilk feed the trolls.

 

[ilish-in-wonderland]

Bangladesh does appear to have better communal harmony than India but one cant attribute that to economic success. May be Bangladesh has better governance because its a single party democracy (bit like china )

 

[mmr]

50 Billion USD is not a small industry plus its growing big every year. You have no knowledge on RMG that’s why you are saying it’s just underwear exporting sector. Bangladesh is moving up the value chain and not only that Bangladesh is targeting branding RMG sector abroad.

Regarding man power export if these low skilled people would not go abroad how they would make money? Over the years they worked in construction and other industries and that has given them valuable experience plus helped to improve financial condition of their family.

Now logical step of Bangladesh to focus on skilled manpower export.

Pharmaceutical industry is growing big. It’s meeting all the domestic consumption needs and started to export abroad. By 2025 it will be a 6 billion usd industry including both domestic and foreign export.

Bangladesh on track to becoming a $6b pharma market by 2025

The pharmaceutical market of Bangladesh is expected to surpass $6 billion by 2025 with an absolute growth of 114 per cent from its 2019 levels, according to a report from a Dublin-based market insight and analysis firm, Research and Markets.

www.thedailystar.net

Similarly shipbuilding, software export are emerging industries and will grow exponentially in coming years as all the ICT parks will complete.

What a mid tier industry earning has to do with it? How many peoples life the freelancing income has changed do you have any idea? That shows lack of your knowledge on economics.

For every industry one needs to start somewhere and it grows big over time. But that is something is not in your mind. I don’t know in which investment company you work as you have claimed and in which capacity and but with mind set like yours only god saves the company.

One thing i dont have is bs you are blabbing about.

Ppl look at headline numbers. Two sectors that dominate bd economy since early 1990s is low skilled migrants and cheap garments. Nothing much has changed.

U put Canadian flag on display but dont know about Brookfield lol. Half of canada own by them. Do some research before bragging about bd sweatshops.

Instead of admitting bd failed to diversify its economy and cant get fdi. Without transfer of knowledge and fdi no country can diversify.

 

[damiendehorn2]

Bangladesh does appear to have better communal harmony than India but one cant attribute that to economic success. May be Bangladesh has better governance because its a single party democracy (bit like china )

No its because income disparity is far better in Bangladesh. In india the top 1 percent tends to hoard far more of the national wealth then in many countries. Add to that we don't have a communal party in government like the BJP.

 

[Black_cats]

One thing i dont have is bs you are blabbing about.

Ppl look at headline numbers. Two sectors that dominate bd economy since early 1990s is low skilled migrants and cheap garments. Nothing much has changed.

U put Canadian flag on display but dont know about Brookfield lol. Half of canada own by them. Do some research before bragging about bd sweatshops.

Instead of admitting bd failed to diversify its economy and cant get fdi. Without transfer of knowledge and fdi no country can diversify.

Even if we go by what you have said with unskilled labor and cheap RMG has Bangladesh come up to this far and turned it into one of top three fastest growing economy with 480 billion usd economy which is going to be confirmed this July if nothing has changed? Even if that’s true why do you think all renowned brands and companies still investing on Bangladesh but not other countries? Do you think RMG sector of 1980s and now are the same? Do you even have realization how this garments industry has employed more than 3 million unskilled woman which helped them to eliminate poverty in their family? How many countries have such example?

Plus despite having everything why both Pakistan and India lagged behind Bangladesh?

Saying all these you forgot about large domestic investment and consumption along with more than 30 million middle class that’s helping Bangladesh to grow these fast.

Bangladesh has transformed itself in a sustainable manner than since 1970s that many could not do. Now it’s heading towards one of the top 25 economy by 2035 and top 20 by 2050.

As economy is growing government is focusing on many other industries which I have mentioned above. As more infrastructures are getting built, energy production increases and some of the bottlenecks are removed along with 100 SEZ completes its construction it’s just a matter of time FDI will accelerate which is at present 3 billion usd and many are already in the pipelines.

So the bottom line is Bangladesh needs steady and sustainable development which more or less it is getting as it’s evident from year over year increase in growth rate.

I don’t know you, so it’s not important for me to know where do you work or your company name. But renowned companies look for knowledgeable and smart people to join them but unfortunately looking at your writing style and dearth of knowledge on economics you seems lack that part.