Economy
Bangladesh Surpasses India, Pakistan in Prosperity Despite Freedom Index Setback
Bangladesh outpaced its South Asian neighbors, India and Pakistan, in terms of prosperity in 2023, although a concerning setback in the Freedom Index shadowed the triumph.
According to the report “Freedom and Prosperity in Bangladesh” prepared by the Atlantic Council’s Freedom and Prosperity Center, Bangladesh was categorized as “mostly unprosperous” in the Prosperity Index and “mostly unfree” in the Freedom Index.
Bangladesh fared better on the Prosperity Index than its South Asian counterparts, ranking 99th among 164 countries, while India ranked 146th and Pakistan ranked 150.
However, the freedom index paints a grim picture, placing Bangladesh on the 141st spot, whereas India is on 104 and Pakistan is on 113 in the list made for 2023.
This Prosperity Index considers various factors beyond GDP per capita, including health, inequality, environmental conditions, minority rights, and education. Meanwhile, the Freedom Index measures political, economic, and legal components.
The US-based think tank’s research found that strengthening basic freedom accelerates economic growth over the long term.
The report said, “January parliamentary elections solidified a shift toward a dominant-party system. The Awami League capitalized on an opposition boycott to extend its fifteen-year rule, with prime minister Sheikh Hasina poised to become the world’s longest-serving female head of government. While this signifies stability, dominant-party systems often face challenges that can undermine good governance. Ensuring healthy competition across politics, government, and the economy is crucial to mitigate these risks.”
These findings were revealed at the Prosperity and Good Governance Conference, jointly organized by the United States Agency for International Development (USAID) and The Asia Foundation on Monday (15 April).
Speaking at the event, US Ambassador Peter Haas said, “Out of the 164 countries the Atlantic Council has looked at, not a single country ranked ‘mostly unfree’ is also ranked ‘prosperous.’ This suggests that, in order to become prosperous, Bangladesh must then take bold steps to expand economic, political, and legal freedoms for its people.”
“Every country grapples with issues like corruption and securing economic and political rights. The key lies not in avoiding problems but in actively acknowledging and tackling them,” he added.
The keynote speaker, Director of the Atlantic Council’s Freedom and Prosperity Center Joseph Lemoine, highlighted the key findings from the report, which measures a nation’s economic well-being based on their democratic and governance indicators considered for its Freedom Index and Prosperity Index.
“The data shows that countries with greater freedom tend to enjoy higher levels of prosperity, while those with less freedom tend to have lower levels of prosperity. Countries that promote political and economic freedoms, along with strong legal systems, create an environment that’s more welcoming to foreign Investors,” said Mr. Lemoine during his keynote presentation.
“Freer countries receive significantly more foreign direct investment than those with less freedom. Overall, the Freedom Index suggests that a strong commitment to freedom is key to attracting foreign investment,” he added.
The conference brought together stakeholders from various sectors, including government, civil society, business, donors, academia, and think tanks.
The Atlantic Council, a nonpartisan nonprofit organization, aims to promote constructive US leadership in international affairs. Its Freedom and Prosperity Center conducts unbiased, data-based research on the relationship between prosperity and economic, political, and legal freedoms to support sound policy choices.
The Freedom and Prosperity Indexes are two separate indexes that rank 164 countries worldwide according to their levels of freedom and prosperity.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
