Bangladesh is one of the world's poorest nations, with overpopulation adding to its economic woes, and it is heavily reliant on foreign aid. The country's economy is based on agriculture. Rice, jute, tea, sugarcane, tobacco, and wheat are the chief crops. Bangladesh is the world's largest producer of jute. Fishing is also an important economic activity, and beef, dairy products, and poultry are also produced. Except for natural gas (found along its eastern border), limited quantities of oil (in the Bay of Bengal), coal, and some uranium, Bangladesh possesses few minerals.
Economy - overview:
Despite sustained domestic and international efforts to improve economic and demographic prospects, Bangladesh remains one of the world's poorest, most densely populated and least developed nations. The economy is largely agricultural, with the cultivation of rice the single most important activity in the economy. Major impediments to growth include frequent cyclones and floods, the inefficiency of state- owned enterprises, a rapidly growing labor force that cannot be absorbed by agriculture, delays in exploiting energy resources (natural gas), inadequate power supplies, and slow implementation of economic reforms. Progress on other economic reforms has been halting because of opposition from the bureaucracy, public sector unions, and other vested interest groups. Severe floods, lasting from July to October 1998, endangered the livelihoods of more than 20 million people. Food grain production fell by 4 million tons, forcing Dhaka to triple its normal food grain imports and placing severe pressure on Bangladesh's balance of payments. The floods increased the country's reliance on large-scale international aid. So far the East Asian financial crisis has not had major impact on the economy.
Way of life. Most Bangladeshis farm the land with simple tools and ancient methods, much as their ancestors did many years ago. Since the mid-1970's, however, there has been increasing use of fertilizers and new kinds of seeds. About 70 per cent of all adult Bangladeshis cannot read and write.
About 82 percent of the people of Bangladesh live in rural areas. Clusters of Thatch-roofed houses dot the nation's countryside. Most rural villagers build homes made of bamboo. A typical home consists of only one or two rooms. Few homes in rural areas have electricity or plumbing.
Most of the families in the cities and towns live crowded together in small wooden houses. Some wealthy city families have large brick or concrete homes. In urban slums, the houses are builds of cardboard, scraps of wood, or sticks. Most Hindus and members of other minority groups live together in distinct neighborhoods.
Many of the people of Bangladesh do not have enough food to eat. Although food product has increased since the mid- 1970's, the nation neither raises nor imports enough to feed its large population. Few Bangladeshis have much variety in their meals. Rice and fish are the tow most important foods. They are usually served together in a spicy curry sauce. Tea sweetened with sugar is a popular beverage, though some people may drink only water most of the time.
People throughout Bangladesh war loose, lightweight clothing because of the warm, humid climate. Most of the women wear a sari, a long piece of plain or printed cloth wrapped around the waist and draped over one shoulder. A short blouse in worn underneath. Many Muslim men wear a lungi, a tight skirtlike garment. The dhoti, worn by Hindu men, is a piece of cloth, wrapped around the waist and between the legs. Men may also wear shirts. People of rural areas generally go barefoot. City dwellers may wear shoes or sandals.
Bangladeshis like to spend their leisure time chatting with friends and relatives. The men usually gather in cafes, and the women visit one another at home. The people enjoy the festivities held during various Muslim and Hindu religious holidays.
Religion affects much in the lives of most Bangladeshis, including food, marriage customs, and family relationships. About 90 per cent of the people are Muslims. The laws of Islam, the Muslim religion, forbid the eating of pork; Most Muslim parents arrange marriages for their children. Most Muslims men in Bangladesh are too poor. The men in a Muslim family have far more authority and freedom than the women have. Many Muslim women avoid social contact with men who do not belong to their family, and they participate in few activities outside the home. They cover their heads with veils in the presence of strangers. In 1988, a constitutional amendment made Islam the state religion of Bangladesh.
Less than 10 per cent of the people of Bangladesh are Hindus. Hindus are divided into various social classes called castes. Each caste observes its own customs and rules of behavior. Caste regulations limit the extent to which members of one caste may associate with members of another cast. Hindu parents also arrange their Children's marriages. Intermarriage between castes in rare. Hindu women have few legal rights.
Most of the ethnic groups of the Chittagong Hills area practice Buddhism. Some groups combine Buddhist principles with local religious beliefs. Less than 1 per cent of the people of Bangladesh are Christians.
Education. About 30 per cent of all Bangladeshis 15 years of age of alder can read and write. No law requires children to go to school since 1992, and less than half the youngsters of school age do so. Bangladesh has about 31,700 elementary and high schools and about 300 colleges and technical schools.
The University of Dhaka is the nation's largest university. Dhaka is also the home of the Jahangirnagar University and Bangladesh University of Engineering and Technology. Other universities are in Chittagong, Mymensing (Agricultural University), Khulna (Shahjalal Science and Technology University), Rajshahi and Sylhat.
Health. Food shortages and unsanitary living conditions in Bangladesh contribute to widespread cholera, leprosy, tuberculosis and other diseases. Mosquitoes that spread malaria thrive in the nation's swampy regions. Malaria kills thousands of Bangladeshis annually.
Bangladesh has a serious shortage of doctors, nurses, hospitals, and medical supplies. The Red Cross and other organizations have sent medical teams and equipment in an attempt to improve health conditions.
Bangladesh ranks as one of the poorest nations of the world. It has an average annual per capita (per person) income of about $150 a year.
The economy of Bangladesh is underdeveloped and depends almost entire on agriculture. The country has few natural resources, and it lacks the equipment and skilled labor necessary to develop heavy industries. The civil war of 1971 caused a serious breakdown of the economy. Farming activities were interrupted as millions of people fled their home to escape the fighting. Factories and shops were destroyed, and transportation and communication lines were damaged.
Shortly after Bangladesh became independent, the government took control of the chief businesses and industries. Many of these Establishments had been owned by west Pakistanis before the civil war.
Natural resources. Fertile soil is probably the chief natural resource of Bangladesh. Farmers in almost all parts of the country grow jute, rice, sugar can, tobacco, and wheat in the rice, wet soil.
Much natural gas and some petroleum have been discovered in Bangladesh. The country also has small deposits of coal, limestone, and peat.
Agriculture is by far the most important economic activity in Bangladesh. About 80 per cent of the people farm the land. Even so, Bangladesh does not produce enough food for its large population. One main reason is that most farmers in Bangladesh use outdated tools and methods. The nation's farms cover and average of only about 3 1/2 acres (1.4 hectares).
Rice, the chief crop, grows in almost all parts of Bangladesh. Farmer harvests three corps of rice in most years. Bangladesh ranks among the leading rice-growing countries. Jute, a plant whose fibers are made into string or woven into cloth, is the chief export corp. Bangladesh produces more jute that any other country in the world. Wheat is also an important crop in Bangladesh. Farmers also grow sugar cane, tea and tobacco.
Many farmers in Bangladesh raise livestock. Most of the animals are undernourished, and the cattle do not produce much milk. But the large numbers of livestock make Bangladesh a leading supplier of animal hides and skins.
Manufacturing. Bangladesh has few large factories, and most of them process agricultural products. The nation is too poor to import the large quantities of raw materials meeded for heavy industries.
The processing of jute ranks as the chief industry of Bangladesh. Factories spin the raw jute fiber into string and rope, which then may be woven into burlap or other materials. Bangladesh also manufactures leather matches, paper and paper products, and textiles.
Many Bangladeshis work in their homes making items that are sold in shops or exported. Some craft workers weave cotton, jute or silk into cloth. Others make embroidered items; leather goods; pottery; woodenware; and articles of brass, copper, gold, or silver.
Fishing industry. Fish thrive in the many inland waterways of Bangladesh and in the coastal waters of the Bay of Bengal. The people catch large quantities of fish for their own use and for export.
Foreign trade. Jute is the main export of Bangladesh The country also exports fish, leather and tea. Leading imports include building materials, chemicals, coal, electric appliances, food and food products, machinery electric appliance, petroleum, textiles, and transportation equipment.
Transportation. Waterways serve as the chief transportation routes in Bangladesh. The country has about 4,500 miles (7,240 kilometers) of navigable waterways. Passenger and cargo ships make regular trips on the major rivers between the largest cities and towns. The people also use canoes and small wooden boats for transportation. Chittagong is the nation's chief seaport. Major river ports include Barisal, Chalna Port, Chandpur , Dhaka and Narayanganj.
Road building is difficult and expensive in Bangladesh because of the need for bridges across numerous rivers and streams. Many of the country’s roads and railroads become unusable during the monsoon season, when heavy flooding occurs. Bangladesh has about 3,600 miles (5,790 kilometers) of paved roads and about 1,800 miles (2,900 kilometers) of railroad track. Zia International Airport ( Biman Bangladesh Airlines) handles flights to and from Dhaka and few domestic airports in Chittagong, Cox-s-Bazar, Jashore, Barishal, Sylhal, Rajshahi.
Communication. Bangladesh has many Bangla and English -language newspapers. The government owns the nation's radio stations and television stations which cover the whole country and the telegraph and telephone systems. Few homes in rural areas have telephones or TV. Villagers may gather in cafes or other public places to watch TV. But radio is available in every where.
Bangladesh Ministry of Agriculture
Food grain production in 1992 was about 20 million metric tons, a 5% increase over the previous year. Rice is Bangladesh's principal crop, although yields per hectare are among the lowest in Asia. While rice output rose 3.2% in 1992, much recent growth in food grain output can be attributed to the irrigated spring crop, which has increased steadily due to the greater availability of fertilizer and irrigation equipment. Wheat production also is expected to rise from 900,000 to about 1 million metric tons in 1992. Jute, which historically has accounted for the bulk of Bangladesh's export receipts, faces an uncertain future due to competition from synthetic fiber substitutes. Fishing, especially for shrimp, has become an increasingly important source of export earnings.
Economy: Industry
Although small, the industrial sector contributes significantly to export receipts; it also provides employment and a market for cash crops. Jute products--mainly burlap sacking and carpet backing for export--and cotton textiles for domestic consumption predominate. Since the early 1980s production of ready-made garments for the US market has grown rapidly. Bangladesh is the fifth largest supplier of cotton apparel to the United States, and it has begun exporting to west European markets. Breaking up ships for scrap, using methods that are highly labor intensive, now meets most of Bangladesh's domestic steel needs. Other industries include sugar, tea, leather goods, newsprint, pharmaceuticals, and fertilizer production. The industrial (and foreign exchange) impact of the discovery of modest reserves of oil in 1986 remains to be assessed.
The government continues to court foreign investment. To this end, the United States and Bangladesh signed a bilateral investment treaty which took effect in 1989. Bangladesh also has Established an export processing zone (EPZ) in Chittagong and plans to create additional zones. The government has offered special incentives and simplified procedures for potential investors.
Economy: Aid and Trade
Since independence in 1971, Bangladesh has received more than $22 billion in grant aid and loan commitments from foreign donors, about $15 billion of which has been spent. Major donors include the World Bank, the Asian Development Bank, the UN Development Program, the United States, Japan, Saudi Arabia, and a number of west European countries. As of 1991, the United States had provided more than $3.3 billion in food and development assistance. Food aid provides food, promotes production, and helps stabilize prices. Other US programs target family planning and health, agricultural development, and rural unemployment. In 1991, the US forgave Bangladesh $293 million of development assistance debt.
Bangladesh historically has run a large trade deficit, about $1.5 billion annually during the late 1980s. This was financed largely through foreign assistance. The balance of payments swung into surplus in 1990-91 because of increased exports of garments and depressed domestic demand for imports. In recent years, remittances from workers in the Middle East have been Bangladesh's most important source of foreign exchange earnings. The US trade balance with Bangladesh has been negative since 1986, due largely to imports of ready-made garments.