Development transformation in Bangladesh: An overview

Abstract

This chapter provides an overview of Bangladesh’s development experience from the viewpoint of industrial and societal transformation. We argue that the successful and accelerated development transformation that Bangladesh has achieved was fueled by three country-specific mechanisms: spectacular development of the ready-made garment (RMG) industry, which resulted in the rapid transformation of the economy from agriculture-based to industry-oriented; significant investments in infrastructure, which has helped to connect the formerly fragmented economy; and penetration of microfinance institutions (MFIs) and NGOs into rural communities that lead to relaxed credit constraints on rural poor households. This chapter also points to some of the challenges faced by the country, which need to be addressed to sustain its economic transformation and social progress.