Overcoming economic downturn in Bangladesh
Bangladesh, like many other nations, has been impacted by the ongoing economic downturn brought on by the COVID-19 pandemic
and the ongoing Russia-Ukraine war. However, there are a few reasons why the nation may be struggling to combat the recession;
Limited resources: Bangladesh is a developing country and may not have the same resources as more developed nations to deal with
the economic recession. This can make it more difficult for the government to implement large-scale stimulus measures and other
Dependence on foreign markets: Bangladesh has a strong export-oriented economy and is heavily dependent on foreign markets.
The global economic downturn has led to a decrease in demand for Bangladesh's exports, which has had a negative impact on the
Limited access to credit: Many small and medium-sized enterprises (SMEs) in Bangladesh may have limited access to credit, which
can make it difficult for them to weather the economic downturn. This can lead to job losses and a decrease in economic activity.
High levels of poverty: Bangladesh has a high poverty rate, which can make it more difficult for people to cope with the economic
downturn. For example, people living in poverty may have limited access to basic necessities like food and healthcare.
Slow response: Government may have slow response to the pandemics, which may have resulted in a significant loss of productivity
and economic activity in the country.
Lack of diversification: Bangladesh economy is heavily dependent on few sectors, for example, RMG (Ready-Made Garments) sector,
which has been hit hard by the pandemics. Lack of diversification in the economy can make it more vulnerable to external shocks.
These are some reasons why Bangladesh may be lagging behind in dealing with the ongoing economic recession. However, it is
important to note that the country has been taking steps to promote economic growth and overcome the recession, and that it will
likely continue to do so in the coming months and years.
To mitigate this economic shock, there are several steps that the government and private sector can take to overcome this recession
and promote economic growth.
Implement fiscal stimulus measures: The government can implement fiscal stimulus measures, such as increasing public spending
on infrastructure projects and providing financial assistance to small and medium-sized enterprises (SMEs), to boost economic
Encourage foreign investment: The government can take steps to attract foreign investment, such as providing tax incentives and
simplifying the process for obtaining licenses and permits. This can help to create jobs and stimulate economic growth.
Promote exports: Bangladesh has a strong export-oriented economy, and the government can take steps to promote exports, such as
by providing export incentives and investing in the development of export-oriented industries.
Improve the business environment: The government can take steps to improve the business environment, such as by reducing
bureaucracy and corruption and implementing policies that promote competition and innovation.
Strengthen the financial sector: The government can take steps to strengthen the financial sector, such as by strengthening
regulations and oversight and promoting access to credit for SMEs.
Invest in human capital: The government can invest in human capital, such as by increasing spending on education and training, to
improve the productivity and competitiveness of the workforce.
Promote digitalization: Bangladesh has a large and rapidly growing digital economy, and the government can take steps to promote
digitalization, such as by investing in digital infrastructure and implementing policies that support the growth of the digital
Focus on sustainable development: Bangladesh is an agriculture-based country, Government can take steps to increase productivity
in agriculture by focusing on sustainable development, such as by investing in research and development, implementing policies
that promote conservation and protecting the environment.
Encourage entrepreneurship: The government can take steps to encourage entrepreneurship, such as by providing training and
support for entrepreneurs and creating an environment that is conducive to the growth of new businesses.
Develop the tourism industry: The government can take steps to develop the tourism industry, such as by promoting Bangladesh as
a tourist destination and investing in the development of infrastructure and tourism-related services.
Encourage Public-Private Partnership (PPP) : Bangladesh Government can also encourage Public-Private Partnership (PPP) in
infrastructure development, as well as in other sectors like health, education, and transportation. This can lead to more efficient and
effective use of resources, as well as to the development of new businesses and jobs.
All of these steps can help to promote economic growth and overcome the ongoing economic recession in Bangladesh. However, it is
important to note that these measures will likely take time to have an effect, and that it will be important for the government to
continue to monitor the situation and make adjustments as necessary. Additionally, the government should also consider the social
and environmental impact of their economic policies, and take steps to ensure that they are inclusive and sustainable.
- Kaberi Maitraya, Senior Reporter, Ekattor Television
�To mitigate this economic shock, there are several steps that the government and private sector can take to overcome this recession
and promote economic growth. The government can implement fiscal stimulus measures, such as increasing public spending on
infrastructure projects and providing financial assistance to small and medium-sized enterprises (SMEs), to boost economic growth�