Abstract
This paper critically examines the emergence of market reforms since the mid 1970s. These reforms received
increased attention in the 1990s. Forty percent of the country’s manufacturing assets and four major
commercial banks, which are financially insolvent, are yet to be denationalized. The size of the government has
increased. Foreign investment which has increased very recently, is being encouraged to develop the
infrastructure, telecommunications, gas and power sectors. Lack of transparency, accountability, government’s
determination, and investors’ enthusiasm, as well as political unrest and the opposition from
labor unions are acting as impediments to market-based reforms in Bangladesh.