Bangladesh has become Asia’s most remarkable success stories in recent years. It was one of the poorest countries, with high poverty levels and famine.
Ever since 2006, Bangladesh annual GDP growth has far exceeded its neighbors. It beats Pakistan by about 2.5% every year and this year it is about to beat India.
In the three years ending 2016, it has had a gross domestic product at a compounded annual rate (CAGR) of 12.9% compared to India’s 5.6%. Even Pakistan had better figures than India with a rate of 8.6% in terms of CAGR.
Even the income growth is far more superior, with Bangladesh being recorded as having a 40% hike in income growth in the three years. India had 14% while Pakistan had 21%.
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India, however, had dominated world economy from 1970 to 2010, however, this scenario is likely to change the way Bangladesh is developing economically.
The main reason for this is Bangladesh slowly turning into an export powerhouse with several garment factories taking over China’s supply to the world.
The garment factories are doing extremely well, owing largely to labor laws. In India, the 1947 Industrial Disputes Act restricts firms the ability to contract workers and hence expansion of labor force is hard. Bangladesh, on the other hand, has a far better environment that achieves economies of scale and creating a large number of jobs.
The only issue is occupational hazards, which Bangladesh needs to thoroughly look into.
Even in social development, Bangladesh is beating its neighbors. Infant mortality rate and life expectancy at birth in Bangladesh are far better than India or Pakistan. A newborn is more likely to see her fifth birthday than an Indian or Pakistani newborn. Also, the average lifespan in Bangladesh is 72.5 years compared to 68.6 years in India and 66.5 years in Pakistan.
Bangladeshi’s are prospering technologically too, with 34.1% digital transactions done in 2017 compared to the average of 27.8% in South Asia.