In this essay the objective will be to examine how economic growth has the ability to lead to economic development. By choosing an LEDC we are able to see wide fields of clear gratuitous problems that are hindering the economic, social and environmental development of the country whilst affecting the overall people negatively. However if the gateway to economic growth opens through possible solutions, what exactly should be done to achieve that?
Before we enter this topic we have to define important relevant terms. First of all we have Economic growth, which is an increase in the economy of a country. Especially of the value of goods and services the country are produces. The second one is the economic development, which is the process in which an economy grows or changes and becomes more advanced; especially both economic and social conditions are improved.
(Current situation + social & economic indicators)
Bangladesh is classified as a low economically developed country. It has a monumental population of over 168 million and a small total area of 144,000 sq. km. Bangladesh is relatively a small country that has a very high population density that relentlessly causes many issues. Bangladesh has also one of the highest rates of population growth in the world, it is also canopied with income issues. The fact that nearly half of the population lives on less than 1 US dollar a day is a testimony to the staggering poverty issue in Bangladesh. The HDI lies at 0.57 placing 142nd in the world. The GDP per capita also lies at a low 1284 dollars making it the 150th country in the world, which shows us the current standard of living in the country.
(Barriers to growth)
Unemployment is one of the major issues in Bangladesh and tragically it is expected to increase according to several organizations with the likes of the World Bank. In 2013, about 41% of Bangladeshi youth were considered NEET (not in employment, education or training). Bangladesh’s population under 30 years of age makes up 60% of the total labour force. According to World Bank lead economist Zahid Hussain the main reason why Bangladesh is having an unemployment crisis is due to lack of skilled workers. Implying that because investment to generate employment is not in line with demand, the country currently hires skilled workers from India, Sri Lanka and Thailand because of the lack of skilled labour. Not only does an increase of unemployment damage and threaten the social and economical future of the country, but also has a huge impact on the poverty and high crime rate. If unemployment rises, so will the crime rate on the basis of the lack of opportunities, the youth will be driven by frustrations and appeal towards drugs and robbery according to several criminology experts with the likes of Mohammad Ashraful Alam. If youngsters feel they do not belong in a society that treats them like a burden, and sense that they have failed their parents then the dangerous component of desperation will ignite which will justify any action in order to achieve satisfaction (often cases appeal to crime).
Whether the blame is to be put on the imperialist powers that have dominated the country and deprived it from economic growth leaving a mark till this very day, or or the rapid growth of population that is creating pressure to the wealth of the country. Poverty in Bangladesh is a huge problem, the slightest minor change can result in food prices or hazardous weather can threaten the lives of millions. Nearly 80% of the population lives in rural areas whilst living in areas that lack services such as education, health clinics and proper infrastructure. 36% of the rural population lives below the poverty line, which makes many suffer from serious illnesses.
The main one being malnutrition which has been an on-going problem for the country. The World Bank estimates that Bangladesh is ranked 1st in the world when it comes to the number of children suffering from malnutrition. In Bangladesh 26% of the population is undernourished and are poorly supplied with vital qualities like food and 43% of the children suffer from underweight problems.
The biggest problem facing the economic development in Bangladesh is overpopulation. The economy of the country is not developed and large enough to support the 168 million inhabitants. One issue overpopulation causes is the food problem. day by day the demand for food is increasing because there is a rapid population growth. The population in Bangladesh is increasing by a geometrical progression while the agricultural production is increasing by an arithmetical progression. Since the production of food cannot keep with increasing population, there is a shortage of food in the country. Therefore Bangladesh imports food from foreign countries. Overpopulation also causes lack of land, housing problems, air pollution, shelter problems, unemployment, poverty and much more. Hence jeopardizing the lives of many with hazardous health issues and making the country vulnerable and reluctant to progression.
Foreig Direct investment (FDI)
Despite The fact that Bangladesh is known for being under the limelight of negativity, it has an advantage since it is located between south and southeast Asia. Where the domestic consumption potential makes the country a good candidate for investment. Bangladesh has many trends of foreign direct investments from Saudi Arabia, UAE, World Bank and Rwanda into several industries, such as oil and gas, shipbuilding, infrastructure the pharmaceuticals sector. Since 2015, the country has had an FDI which amounted to USD 1.7 billion.