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Bangladesh is becoming an economic power in South Asia: The Wall Street Journal

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Bangladesh is becoming one of the economic powers in South Asia. Such a possibility has been created due to the huge increase in exports in the last one decade. Bangladesh has set an example of a strong economy by relying on exports. The information came in an article in The Wall Street Journal on Wednesday.

According to the article, Bangladesh’s exports in dollar terms have increased by about 70 percent in the last one decade. This success has come through the export of readymade garments sector. And Bangladesh’s economy will be further strengthened by building greater cooperation with Southeast Asia.

In the meantime, Bangladesh has recently qualified to move from the list of least developed countries to developing countries. UN Secretary General Antonio Guterres congratulated him on his achievement. The Wall Street Journal cites export-oriented growth as an effective example.

Bangladesh’s exports have increased significantly over the past decade. However, two neighboring countries, India and Pakistan, have lagged behind. Export of readymade garments played a major role in the success of Bangladesh.

In 2020, Bangladesh surpassed India in per capita GDP. But even in 2011, Bangladesh’s per capita GDP was 40 percent less than India’s. Such a situation has arisen mainly due to the economic downturn in India due to the Corona epidemic.

The Wall Street Journal also suggested that Bangladesh build closer multilateral economic cooperation with ASEAN, the Regional Comprehensive Economic Partnership (RCEP) or the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). The media says the eastward cooperation relationship will be more fruitful.

According to the report, South Korea, China and Vietnam have similar development models at different stages in Bangladesh’s success. However, Bangladesh’s next step will be the production and export of high value export products.

It is to be noted that Bangladesh has recently received the final recommendation of the United Nations to move from the list of least developed countries to developing countries. As a result, Bangladesh will be recognized as a developing country in the 2024 UN General Assembly. Tefari Tesfaso, chair of the agency’s Committee for Development Policy or UN-CDP, announced the decision on the night of February 26. The announcement comes at the end of the CDP’s five-day triennial review meeting in New York.

According to the UN norms, if a country is able to meet the criteria for crossing in two consecutive triennial reviews, it gets the final recommendation for crossing from the least developed country. This is the second time that Bangladesh has been able to meet the criteria.

Bangladesh, which has been in the least developed country Qatar since 1985, fulfilled all the conditions of CDP in 2017 to become a developing country. Reviewing the issue of transition from LDCs on the basis of three indicators. Bangladesh has come a long way in fulfilling the conditions in all the three indices. The per capita income of a developing country has to be at least 1230 US dollars, whereas in 2020 the per capita income of Bangladesh was 1628 dollars. Developing countries need 6 points in the human resource index; Bangladesh’s points there are now 65.3. If a country has more than 36 points in the economic fragility index, that country is included in the LDC, after reaching 32, the developing country qualifies. Bangladesh’s point there has now come down to 25.2.

Along with Bangladesh, Laos and Nepal have also been recommended for transition to developing countries. Nepal achieved the crossing standard for the second time in 2016. However, it took them time to recover from the earthquake damage. Laos and Myanmar also achieved the passage criteria in developing countries in the second phase. However, due to the military coup and the state of emergency in Myanmar, their withdrawal from the LDC was not recommended for fear of negative impact on development activities.

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