Transition of Bangladesh Economy to Tiger Economy from Bottomless Economy: A Fifty Years (1972-2022) Perspective

Abstract

Since gaining independence in 1971, Bangladesh has made significant economic progress despite starting with the lowest per capita GDP, a weak economy, and inadequate infrastructure. Bangladesh's economy, once dubbed the 'bottomless basket', has recently undergone a significant transformation, gaining recognition as a booming economy, sometimes referred to as the tiger economy. This research aimed to provide a thorough evaluation of the economic growth that Bangladesh has achieved since its independence until the present. Furthermore, this research aimed to analyse the primary obstacles and provide strategies to address them. This study analyses the time series data from 1972 to 2022 for 15 key economic, social, financial, and environmental indicators of Bangladesh's economy. We include the following indicators: annual GDP, GDP growth, GDP per capita, GNI, GNI per capita, trade balance, literacy rate, unemployment rate, carbon (CO2) emissions, life expectancy, access to electricity, external debt, foreign direct investment, total reserves, and annual budget. We obtained the data from the Bangladesh Bureau of Statistics (BBS), the Bangladesh Bank, the Ministry of Finance, and the World Bank. Research findings indicate that Bangladesh has made substantial progress in several economic and social indicators over the last five decades, including high annual GDP, GDP growth rate, GDP per capita, GNI, GNI per capita, literacy rate, life expectancy, access to electricity, foreign direct investment, and the national budget. Although Bangladesh's economy has made significant strides, it still faces many obstacles, including a negative trade balance, a continuously growing unemployment rate, escalating carbon (CO2) emissions, dependence on foreign external loans, a deficit budget, and the need for climate change adaptation. To tackle the difficulties, it is necessary to integrate many proactive measures. This research provides valuable insights for policymakers seeking to comprehend the current patterns of Bangladesh's growth, as well as the significant obstacles it faces and strategies for overcoming them.