World Bank2013-02-112013-02-112012-09https://hdl.handle.net/10986/12288In Bangladesh, growth needs to accelerate to absorb the burgeoning labor force and continue making dents in poverty. Such acceleration will require sustained growth in exports and remittances. It will also need an increase in investment both public and private. However, growth acceleration alone will not be enough to absorb the labor force. This will need an improvement in employment intensity of growth, and a further improvement in inclusiveness of service delivery. Moreover, to help ensure that growth acceleration is sustained, the ex-ante and ex-post effects of climate change will need to be addressed. Finally, urbanization offers opportunities to accelerate growth, but can also undermine it if not proactively managed. Bangladesh's Gross National Income (GNI) per capita more than tripled in the past two-and-a-half decades, from an average of US$251 in the 1980s to US$784 by 2011. This growth was accompanied by impressive progress in human development. Yet, after 40 years of independence, Bangladesh remains a low-income country with nearly 50 million people still impoverished and its economic growth potential under-exploited. It is therefore important to understand the drivers underpinning Bangladesh's growth process, what enabled the drivers to move Bangladesh forward, what its prospects are for graduating to middle-income country status by 2021, as envisaged in its sixth five-year plan, and what it would take to accelerate growth sufficiently to achieve this objective.en-USCC BY 3.0 IGOACCOUNTINGADVERSE EFFECTSADVERSE IMPACTAGGREGATE DEMANDAGRICULTUREBALANCE OF PAYMENTSBANK FINANCINGBINDING CONSTRAINTBONDED WAREHOUSEBUDGET DEFICITBUSINESS ENVIRONMENTCAPITAL FLIGHTCAPITAL GOODSCAPITAL INFLOWSCAPITAL INTENSITYCAPITAL OUTFLOWSCAPITAL STOCKCDCLIMATE CHANGECOALCOMMERCIAL BANKSCOMPARATIVE ADVANTAGECOMPARATIVE ADVANTAGESCOMPETITIVE ADVANTAGECOMPETITIVENESSCONNECTIVITYCONSUMERSCONSUMPTION PATTERNSCPICREDIT FLOWSCURRENCYCURRENT ACCOUNT BALANCEDEBTDEFICITSDEMOGRAPHICDEMOGRAPHIC CHANGEDEMOGRAPHIC TRANSITIONDEPOSITDEPOSITSDEREGULATIONDEVELOPING COUNTRIESDIRECTED CREDITDISBURSEMENTSDOMESTIC BANKDOMESTIC ECONOMYDOMESTIC MARKETECONOMETRIC ANALYSISECONOMIC CONDITIONSECONOMIC CRISISECONOMIC DEVELOPMENTECONOMIC EXPANSIONECONOMIC FACTORSECONOMIC GROWTHECONOMIC PERFORMANCEECONOMIC PROGRESSECONOMIC REFORMSECONOMIC SECTORSECONOMIES OF SCALEELASTICITYELECTRICITY DEMANDENABLING ENVIRONMENTEXCHANGE RATEEXCHANGE RATE REGIMEEXPENDITUREEXPENDITURESEXPORT COMPETITIVENESSEXPORT GROWTHEXPORT PERFORMANCEEXPORT PROCESSING ZONESEXPORT SECTOREXPORTEREXPORTERSEXPORTSEXTERNAL BORROWINGEXTERNALITIESFINANCIAL DEVELOPMENTFINANCIAL MARKETSFINANCIAL SECTORFINANCIAL SECTOR LIBERALIZATIONFINANCIAL SYSTEMFISCAL POLICIESFISCAL POLICYFLOATING EXCHANGE RATEFOOD PRICEFOOD PRICESFOREIGN ASSETSFOREIGN CAPITALFOREIGN EXCHANGEFOREIGN EXCHANGE RESERVESFOREIGN FINANCINGFOREIGN INVESTMENTFOREIGN INVESTORSFUTURE RESEARCHGDPGDP PER CAPITAGENERALIZED SYSTEM OF PREFERENCESGLOBAL MARKETGOVERNMENT BUDGETGOVERNMENT DEFICITGOVERNMENT INTERVENTIONGROSS DOMESTIC PRODUCTGROSS NATIONAL PRODUCTGROWTH RATEGROWTH RATESHOUSEHOLD INCOMEHOUSEHOLD INCOMESHUMAN CAPITALHUMAN DEVELOPMENTINCOME GROUPSINCOME INEQUALITYINCOME STREAMSINDUSTRIAL ECONOMYINDUSTRIALIZATIONINEFFICIENCYINFLATIONINFLATIONARY PRESSURESINFORMAL BORROWINGINFORMATION TECHNOLOGYINSTITUTIONAL CAPACITIESINSURANCEINTEREST RATEINTERMEDIATE GOODSINTERNATIONAL MARKETSINTERNATIONAL TRADEINVESTMENT CLIMATEINVESTMENT CONTRACTSINVESTMENT RATEINVESTMENT RATESITCJOB CREATIONLABOR COSTSLABOR FORCELABOR MARKETLABOR MARKETSLABOR PRODUCTIVITYLABOR STANDARDSLAND RESOURCESLENDING PORTFOLIOLETTERS OF CREDITLEVEL PLAYING FIELDLIQUIDITYLIVING STANDARDSLONG-TERM INVESTMENTSM2MACROECONOMIC MANAGEMENTMACROECONOMIC STABILITYMARKET ACCESSMARKET DIVERSIFICATIONMARKET FAILUREMARKET SHAREMICRO DATAMIDDLE-INCOME COUNTRYMIGRANT LABORMONETARY FINANCINGMONETARY POLICYMONEY GROWTHNATIONAL INCOMENATIONAL SAVINGSNATURAL DISASTERSNATURAL RESOURCENATURAL RESOURCESNET EXPORTSOILOIL PRICEOUTPUTPER CAPITA INCOMESPOLICY RESPONSEPOLITICAL ECONOMYPOPULATION GROWTHPRICE CONTROLSPRIVATE CAPITALPRIVATE CREDITPRIVATE INVESTMENTPRIVATE INVESTMENTSPRIVATE INVESTORSPRODUCTIVITY GROWTHPROPERTY RIGHTSPUBLIC BUDGETPUBLIC DEBTPUBLIC INVESTMENTSPUBLIC SAVINGPUBLIC SAVINGSPUBLIC SPENDINGPUSH FACTORSQUOTASRAINFALL VARIABILITYRAPID GROWTHREAL EXCHANGE RATEREAL GDPREAL INCOMERECURRENT EXPENDITURESREFORM PROGRAMREGISTRATION PROCESSREGULATORY ENVIRONMENTREMITTANCEREMITTANCESRESERVERETURNSSAFETY NETSSAVINGSSAVINGS RATESHOCKS TO INCOMESHORT-TERM INTEREST RATESSKILLED WORKERSSKILLS SHORTAGESSOCIAL NETWORKSSOCIAL PROTECTIONSTREAMSSUSTAINABLE GROWTHTAXTOTAL FACTOR PRODUCTIVITYTRADE BARRIERSTRADE DEFICITSTRADE LIBERALIZATIONTRADE POLICIESTRADE POLICYTRADE REGIMETRADINGTRANSACTIONTRANSACTION COSTSUNEMPLOYMENTURBANIZATIONVALUE ADDEDVOLATILITYWAGESWorld Bank10.1596/12288