Assessment and recommendations

Since gaining independence in 1971, Bangladesh has achieved significant progress. Its economy has transformed from one of the poorest in the world to a growing South Asian economy, home to a global manufacturing hub of ready-made garments (RMG). However, Bangladesh's achievements should not lead to complacency. The country is grappling with multiple challenges, from mitigating the impacts of climate change to preparing for LDC graduation. To secure a prosperous future, Bangladesh needs to prioritise new drivers of growth. It should shift from a price-led competitiveness model to one grounded on quality and innovation. Bangladesh also needs to shift its business mindset and modernise its policy approach for industrial development. Advancing on digitalisation and updating international partnerships are key to sustaining future progress. Above all, Bangladesh needs to future-proof the state to make it work as a value-driven and rules-based system. Chief in this transition from nation to state building is the modernisation of its institutional arrangements and the empowering of institutions to effectively deliver policies and operate in a highly dynamic and interdependent world.