Bangladesh is a country that has achieved remarkable progress in reducing poverty and improving human development over the past decades. From being one of the poorest nations at birth in 1971, Bangladesh reached lower-middle income status in 2015 and is on track to graduate from the UN’s Least Developed Countries (LDC) list in 2026.

However, Bangladesh also faces significant challenges in ensuring a rights-based and sustainable development for its people, especially as it prepares to transition from LDC status. In this article, we will explore some of the key achievements and challenges of Bangladesh’s development journey, as well as some of the opportunities and recommendations for the future.

Achievements

• Bangladesh has reduced its poverty rate from 41.9 percent in 1991 to 13.5 percent in 2016, based on the international poverty line of $2.15 a day (using 2017 Purchasing Power Parity exchange rate)
• Bangladesh has improved its human development outcomes along many dimensions, such as life expectancy, literacy, maternal and child health, gender equality, and access to basic services.
• Bangladesh has maintained a robust economic growth rate of around 6 percent per year over the past two decades, driven by strong exports of ready-made garments (RMG), resilient remittance inflows, and stable macroeconomic conditions.
• Bangladesh has demonstrated resilience and innovation in coping with natural disasters and climate change impacts, such as floods, cyclones, droughts, and salinity intrusion.

Challenges

• Bangladesh still faces high levels of inequality, social exclusion, and vulnerability among its population, especially among women, children, ethnic minorities, persons with disabilities, and rural dwellers.
• Bangladesh relies heavily on one export sector – the RMG industry – which employs 4 million workers but is highly dependent on keeping wages low and labour standards weak.
• Bangladesh faces considerable environmental and social risks from its rapid urbanization, industrialization, and population growth, such as air pollution, water scarcity, waste management, slum proliferation, and traffic congestion.
• Bangladesh suffers from weak governance, institutional capacity, and accountability mechanisms, which undermine its ability to deliver quality public services, protect human rights, and combat corruption.

Opportunities and Recommendations

• Bangladesh should use its upcoming graduation from LDC status as an opportunity to rethink its development model and diversify its economy beyond the RMG sector.
• Bangladesh should invest more in human capital development and social protection to enhance the skills, productivity, and well-being of its workforce and citizens.
• Bangladesh should adopt a green growth strategy that promotes low-carbon and climate-resilient development while preserving its natural resources and biodiversity
• Bangladesh should strengthen its democratic institutions, civil society participation, and media freedom to ensure greater transparency, accountability, and responsiveness of its government.

Conclusion

Bangladesh has a remarkable story of poverty reduction and development to tell. It has shown that with political will, social mobilization, and international support, it is possible to overcome poverty and achieve human development even in the face of adversity. However, Bangladesh also faces significant challenges in ensuring that its development is inclusive, equitable, and sustainable for all. As it prepares to transition from LDC status, Bangladesh needs to rethink its development model and diversify its economy beyond the ready-made garment sector. It also needs to invest more in human capital development and social protection, adopt a green growth strategy, and strengthen its democratic institutions and civil society participation. By addressing these challenges and seizing these opportunities, Bangladesh can achieve its vision of becoming an upper middle-income country by 2031.