CIAO DATE: 04/2013
March 2013
Danish Institute for International Studies
Shortly after its birth in 1971 Bangladesh was written off as a basket case; a country likely to remain dependent on aid. Since then, despite a history of weak governance, military coups and a vulnerable democracy since 1990, the country has scored significant developmental successes. The contribution of some of its NGOs and of microcredit is well known. Less well understood is its success in manufacturing, which now has a share in GDP similar to India though concentrated in lower technology and more labour-intensive sectors like garments and textiles. New sectors like electronics are also beginning to emerge. This paper argues that the emergence and success of these sectors cannot be explained simply in terms of markets guiding resources according to comparative advantage.
Resource link: The Political Settlement, Growth and Technical Progress in Bangladesh [PDF]