Pathways to economic resilience & growth

Bangladesh, once hailed as the "Next Asian Tiger" and having made remarkable progress in poverty alleviation, export growth, and social development, now faces unprecedented challenges ranging from global economic uncertainty to domestic structural inefficiencies. Over the last 15 years under the previous regime, rising inflation, a widening trade deficit, declining remittances, and vulnerabilities in key sectors like RMG and agriculture have placed the economy at a crossroads.
Critics argue that excessive government intervention, protectionist measures, and a focus on large-scale infrastructure projects at the expense of social welfare programs hindered private sector development and limited competition. Furthermore, allegations of corruption and cronyism within the government and its associated businesses are said to have diverted resources away from productive sectors, hindering economic efficiency and discouraging foreign investment. This, coupled with a lack of transparency and accountability in economic decision-making, is seen as having contributed to a less-than-optimal economic environment for Bangladesh.
Amidst these challenges, there lies a promising opportunity to rethink and restructure Bangladesh's economic model for a more sustainable and inclusive future. By embracing innovation, fostering public-private collaboration, diversifying exports, and investing in human capital, Bangladesh can turn adversity into a platform for transformative growth. This article focuses on three major areas to revitalise the economy in this connection, offering a beacon of hope for the future.
SMARTER FARMERS, STRONGER NATION: Being an agrarian country, Bangladesh has made commendable strides in food production over the past few decades. Yet, challenges such as population growth, shrinking arable land, and climate change pose significant threats to achieving long-term food security. Thailand, on the other hand, has emerged as a global leader in agricultural efficiency, leveraging science, technology, and collaboration to transform its farming sector. Bangladesh can benefit immensely by learning from Thailand's experience to achieve self-sufficiency in food production and boost agricultural exports.
Agriculture contributes around 13 per cent to Bangladesh's GDP and employs approximately 40 per cent of the labour force (Bangladesh Bureau of Statistics, 2023). Despite being the fourth-largest producer of rice globally, Bangladesh still relies on imports for key crops such as wheat, pulses, and edible oils. Moreover, inefficient farming practices, limited access to modern technologies, and post-harvest losses-estimated at 25-30 per cent annually (FAO, 2022)-undermine the sector's potential.
Lessons from Thailand's Agricultural Success. Thailand has earned global recognition as the "Kitchen of the World," exporting various agricultural products, including rice, fruits, vegetables, and seafood. The country's success stems from scientific cultivation, innovation, and market-oriented policies. Key lessons for Bangladesh include:
Embracing Technology and Innovation. Thailand's farmers widely use precision farming techniques, a modern farming approach that involves using technology such as satellite imagery, drones, and IoT-enabled sensors to monitor soil health and optimise water usage. In contrast, only 12 per cent of Bangladeshi farmers have access to advanced farming tools (World Bank, 2023). Introducing affordable precision agriculture tools in Bangladesh can increase yields by 20-30 per cent.
Diversification of Crops. While Bangladesh primarily focuses on rice, Thailand has diversified into high-value crops like fruits (durian, mangoes), spices, and flowers, boosting export revenues. Encouraging Bangladeshi farmers to diversify into cash crops such as jute, fruits, and spices can enhance incomes and reduce overreliance on rice.
Public-Private Partnerships. Thailand's government collaborates closely with private enterprises to provide farmers access to markets, financing, and training. In Bangladesh, scaling up PPP initiatives could address infrastructure and supply chain management gaps, making business leaders feel engaged and integral to the economic development process.
Export-Oriented Policies. Thailand has established robust quality control, branding, and certification systems to meet international export standards. Bangladesh's agricultural exports accounted for only 3 per cent of total exports in 2023. This figure could increase significantly by investing in quality assurance and global market access.
Collaboration Opportunities with Thailand. Bangladesh and Thailand share similar agro-climatic conditions, making technology and knowledge transfer highly feasible. Potential areas of collaboration include joint research and development, farmer training programs, agro-processing and value addition, and investment in agribusiness.
ENHANCING FOREIGN CURRENCY REMITTANCE: Our economy relies heavily on remittances from its labour force working abroad, which is a critical foreign currency source. However, most of these workers are unskilled or semi-skilled, and their limited proficiency in English and Arabic often places them at a disadvantage compared to labourers from neighbouring countries. Consequently, they typically earn minimum wages, which reduces their potential contribution to the country's foreign currency reserves.
According to data from the Bureau of Manpower, Employment, and Training (BMET), over 70 per cent of Bangladeshi migrant workers fall into the unskilled or semi-skilled category. While they are industrious and willing to work hard, their lack of communication skills in English or Arabic makes it challenging to secure better-paying jobs. In contrast, workers from countries like India, the Philippines, and Sri Lanka often earn significantly higher wages due to their proficiency in these languages and better training.
For example, a 2022 report by the International Labour Organization (ILO) indicated that Bangladeshi workers earn approximately 20-30 per cent less than their Indian or Filipino counterparts in the Gulf Cooperation Council (GCC) countries. This wage disparity stems largely from the lack of language and soft skills, making it harder for Bangladeshi workers to transition to higher paying roles or to negotiate better terms of employment.
A mandatory three-month condensed training program for outbound workers could bridge the gap. The program would focus on three core areas:
(a) Basic Language Skill. Providing essential communication training in English and Arabic enables workers to communicate effectively with supervisors and co-workers. (b) Skill Refinement. Including a refresher course to polish basic technical or trade-related skills relevant to their job categories, such as construction, caregiving, or hospitality. (c) Etiquette and Manners. Teaching workplace etiquette, cultural sensitivity, and professional conduct to help workers adapt better to foreign environments.
Since we have a decent facility in our Hajj Camp adjacent to our International Airport, which remains unoccupied during most of the other months of the Hajj season, thee training program could be arranged in the Hajj Camp immediately, leveraging the facility unstill separate institute with proper infrastructure is built.
A well-designed training program could significantly increase the earning potential of Bangladeshi workers abroad. For instance, if such a program helps raise average monthly earnings by 50 per cent, the cumulative impact on national remittance figures would be transformative. In 2023, Bangladeshi migrant workers sent home approximately $22 billion in remittances, according to the Bangladesh Bank. With a 50 per cent increase in average wages facilitated by improved skills and language proficiency, annual remittance inflows could rise to $33 billion.
REVAMPING BIMAN: Bangladesh, with its burgeoning economy and rapidly growing aviation infrastructure, stands at a pivotal moment to transform its national airline, Biman Bangladesh Airlines, into a symbol of national pride and a key regional player. Drawing inspiration from the resounding success of Ethiopian Airlines, this article outlines a roadmap for Biman's revitalisation by leveraging strategic alliances, enhancing operational efficiency, and tapping into nationalistic and diaspora sentiments.
Bangladesh's aviation market is experiencing unprecedented growth. With the completion of new terminals at Hazrat Shahjalal International Airport and other ongoing infrastructure upgrades, the nation is poised to handle approximately 250 million international passengers annually, with an expected annual growth rate of 10 per cent.
However, Biman's market share remains underwhelming, with many passengers opting for foreign carriers due to perceived shortcomings in service quality, fleet modernisation, and network connectivity. So, a comprehensive reform plan centred around aligning with Star Alliance and following the Ethiopian Airlines model could be designed.
Assuming a 10 per cent annual increase in passenger numbers and a gradual market share capture from foreign carriers, Biman's financial outlook over the next five years could be lucrative. For instance, if the market share grows from 20 per cent to 25 per cent within a year, Biman will handle 50 million passengers and its revenue will reach at $1.25 billion (average revenue per passenger of $250).
CONCLUSION: Addressing these key areas requires a multi-pronged approach, encompassing government policies, private sector investment, and international collaboration. Bangladesh can overcome current challenges by embracing innovation, fostering public-private partnerships, and investing in its human capital and embark on sustainable and inclusive economic growth.
The lessons from global success stories-Thailand in agriculture, the Philippines in labour export, and Ethiopia in aviation-provide a roadmap for Bangladesh. With decisive action and a collective vision, Bangladesh can solidify its position as a thriving regional and global economic hub, ensuring prosperity for generations to come.

Mahmud Hossain is CEO, Millennium