ADB lauds Bangladesh success in socioeconomic development
Bangladesh has made significant socioeconomic gains with a steady rise in its gross domestic product, boost in social development, and meeting the Millennium Development Goal of halving the incidence of poverty in 1990-2015.
Since 1973, Asian Development Bank (ADB) has been a key partner contributing to economic development and reforms in Bangladesh, particularly in the energy, transport, and education sectors, said ADB in a publication-Bangladesh: Development Effectiveness Brief 2017.
As of December 2016, ADB`s cumulative assistance for Bangladesh amounted to $18.3 billion for 265 loans, and $249.5 million for 419 technical assistance projects.
"Bangladesh is one of the largest recipients of concessional Asian Development Fund resources," said the Manila-based multilateral development partner.
About the future challenges and goals, ADB said Bangladesh still faces challenges in creating enough productive jobs to reduce poverty and unlock the country`s development potential.
ADB said easing infrastructure constraints is an important priority and enhancing the quality of the workforce is another. Other priorities and challenges include improving the business climate and reducing the costs of doing business, it added.
Mobilizing the large amounts of financing needed for physical and social infrastructure, including through private investments and public-private partnerships is also a priority, ADB said, adding that ensuring environmental sustainability and climate resilience is s a major challenge as well.
Under the Country Partnership Strategy (CPS) 2016-2020, ADB will finance priority investments in energy, transport, and urban infrastructure and in human capital development to diversify the economy and release long-term growth potential, it added.
Such support will also help make growth more inclusive by accelerating rural and regional development, said the ADB and added that the CPS 2016-2020 will also help speed up private sector development, develop capacity and improve governance, deepen regional cooperation and integration, and promote gender equality for inclusive growth.
ADB will also intensify partnerships with the private sector and promote private sector development through (i) an enabling business environment, created with public sector support; (ii) direct private sector investment; and (iii) transaction advisory services for public-private partnerships.
Bangladesh reached lower-middle-income status in July 2015, on the strength of an annual economic growth rate of 6 percent and above during FY11 to FY15. Growth was fueled mainly by a rise in readymade garment exports, overseas workers` remittances, and domestic consumption.
In the past two decades, growth was steady and inclusive, creating jobs for low-skilled workers and women, it said, adding that a large increase in food production together with a sharp decline in population growth led to higher food availability per capita.
ADB said macroeconomic stability was maintained in the past 5 years and the inflation rate dropped, the fiscal deficit was kept in check, foreign exchange reserves showed robust growth, the exchange rate stayed broadly unchanged and external debt as a percentage of gross domestic product (GDP) steadily decreased.
Bangladesh met the Millennium Development Goal (MDG) of halving the incidence of poverty in 1990-2015. Rapid GDP growth and job creation helped reduce poverty, as did the expansion of microcredit, social safety net programs, and remittances, particularly in the rural areas.
Major improvements were made in human development in the last two decades, ADB said, adding that maternal and infant mortality had markedly dropped by 2015, and life expectancy had risen to nearly 71 years, from 56 years in 1990. "Women gained more opportunities to participate in decision making. More women now work in high positions in both the government and the private sector," ADB said.
Source : ADB
