JBS Vol 12. Num 1. 2010 - Economic Growth in Bangladesh: Experience and Policy Priorities

Jyoti Rahman
Asif Yusuf
Abstract

The Liberation War of 1971 destroyed about a fifth of Bangladesh’s economy, and the post-war dislocations left the country on a slow growth trajectory for better part of two decades. Then the economy accelerated from 1990, driven by a turnaround in the growth of multi-factor productivity. We identify factors that inhibit another growth spurt: low levels of human capital; poor infrastructure; market failures specific to individual industries; low levels of international trade; corruption; and cumbersome regulations. Of these, we consider tackling infrastructure bottlenecks, promoting trade, and carrying out regulatory reforms as top priorities for the policymakers.