Econ Development Project - Bangladesh

8/12/2019 Econ Development Project - Bangladesh

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Bangladesh

Development ProjectJustin Cho


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Table of Contents

Overview of Bangladesh Indicators

History

Available resources/Advantages the countryalready has

Solution

Project type Project goal

Examples of similar projects


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OverviewI. IndicatorsII. History

III. Cause of Poverty

IV. Available Resources


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Indicators

Indicator Statistics / Value

Real GDP $ 305.5 Billion (2012 CIA)

Per Capita GDP $ 2000 (2012 CIA)

Unemployment Rate 5% (2012 CIA)

Gini Index 33.2 (=0.332, 2005 CIA)

Literacy Rate: Male and Female (Ageover 15)

Male: 61.3%Female: 52.2% (2010 CIA)

Life Expectancy: Male and Female Male: 68.21 years

Female: 71.98 years (2012 CIA)Infant Mortality Rate 48.99 per 1000 (2012 CIA)

HDI 0.500 (2011 International HumanDevelopment Indicators)


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History

Originally East Pakistan, which wasseparated by 1600km from the westernwing

Politically excluded, ethnically andlinguistically discriminated

Naturally became economically neglected

Bangladesh liberation war 1971

Seceded from Pakistan in 1971


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History

After independence:

Famine

Natural disasters Widespread poverty

Political turmoil

Military coups Restoration of Democracy in 1991

Calm and steady economic progress


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Causes of Poverty

Poverty Cycle and Poverty traps: Geography,Education (Child labor)

Institutional Barriers: Corruption (ranked mostcorrupt in 2005), Social Structure (elitism)

Trade Barriers: Overdependence on Primaryproducts (garment industry, agricultural

industry)

Social and Cultural Obstacles: Gender


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Greatest Cause:Geographical Reasons

Monsoon region

2/3 of land is only 5 meters above sea level

Seasonal flooding destroys rural areas

Main cause of rural poverty


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Geography makingBangladesh Poor

Seasonal floodingdestroy rural farmsdecreased production

loss of incomedecreasedconsumptionshift ofAD to the leftdecrease or stagnationof GDP


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Available Resources

Geographical location in international community

Micro-credit loans empowering women

Relatively low unemployment rate (5%)

Close to meeting all the UN millennium goals

Alleviation of corruption (one of the most corruptin 2005144thmost corrupt in 2012)

Steady increase in supply of education


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Available Resources


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SolutionI. Project typeII. Project goal

III. Examples of similar projects

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Specific Aid Policy:Building Seawalls

Technology provided by Japan/India/Canada

Based on the conclusion that rural poverty is

mainly due to climate issues

Seawalls/breakwaters can solve this problem


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Project Goal

Protect rural areas highly dependent onagriculture from flooding due to naturaldisasters/monsoons

Eliminate rural poverty

Provide stability and securityincrease

investment, including FDI

Widespread and equal income growth


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Project Goal

Stabilityincreased FDIbetter job opportunitiesincreased income

increased consumptionshift of AD to the right

Widespread income growth

improved equalityGinicoefficient decreases


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Validity of Project

Rural population accounts for more than 2/3 oftotal population

Nearly half of this rural population is in absolutepoverty

Although agriculture accounts for only 20% of thetotal economy, 44% of the labor force is part of the

agricultural industry Therefore this project targets largest population

group that is in most need

i d f hi


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Disadvantages of thisproject

Costly in the short run

Potential loss of sovereignty

Environmental hazards

Potentially useless against tsunamis

Ad f hi


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Advantages of thisproject

Government credibility can increase in the longrun as benefits of seawalls prove significant

Not too costly due to short coastline length(580km compared to 29,751km of Japan)

Promotes long term trade relationships withstrong economies beneficial for both

Bangladesh and Japan Stability attracts investors and thus increases FDImore economic activity

Ad f hi


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Advantages of thisproject

No cause of tension between different areasas not one area would develop significantlyover another

Malnutrition problems are eliminated as thecountry can supply its own agricultural goodsonce farmers are protected

Chances of tsunamis hitting Bangladesh: Onlyonce in 1562 during the past 4000 years


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Stakeholders Benefits

Domestic consumers: Increased income fromincreased productivitymore disposable income

Domestic producers: increased productivity as

foreign aid improves technologyincreasedincome

Government: Increased tax revenue asconsumption increasesgreater potential to

induce development Foreign producers: New market to sell productsto

as


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Successful Examples

Japan

Other than the tsunami in2011, Japan was efficient in

protecting its people againstfrequent earthquake-inducedflooding


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Successful Examples

Pondicherry (India)

When the tsunami hit India in 2004, Pondicherrywas left unharmed due to the massive seawall

that was built in 1735 by French colonists


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Successful Examples

Vancouver

Primary example of how a seawall can provideshoreline protection and recreational

opportunities


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Bibliography

"Rural Poverty in Bangladesh." Rural Poverty Portal. IFAD, 20 Mar. 2013..

"History of Bangladesh." Bangla2000. N.p. 23 Mar. 2013..

Ferraro, Gayle. "A Beggar's Loan - Why Poverty." Why Poverty. WhyPoverty, n.d. Web. 20 Mar. 2013..

Clarke, Oliver. "Why Is Bangladesh Successful in Its Fight against Poverty?"University of St. Gallen, May 2012. Web. 20 Mar. 2013..


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Bibliography Continued


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Thank you

Econ Development Project - Bangladesh

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