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.
