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BANGLADESHAsian Business Country Report
Current Opportuni
ties
History
Geographic
Population
Social & Political
Economy
Agenda
Development Recommendations
BangladeshHistory and Country Overview
Current Opportu
nities
History
Geography
Population
Social & Pollitical
Economic
People’s Republic of Bangladesh
Bangladesh Before
Facts of Bangladesh Official name : People’s Republic of
Bangladesh National flag National emblem Capital city : Dhaka Nationality : Bangladeshi Name of currency : Taka (TK) Area : 147570 sq.km
Facts of Bangladesh Boundary: North - India West - India South - Bay of Bengal East - India and Myanmar
Ethnic groups Bengali 98%, other 2% (includes tribal
groups, non-Bengali Muslims) (1998)
Language -Bangla (official, also known as Bengali),
English
Religion Muslim 90%, Hindu 9%, other 1% (1998)
Source:en.wikipedia.org/wiki/Demographics_of_Bangladesh
Muslim Population across Bangladesh
District Percentage (%)
Barisal 88%
Chittagong
84%
Dhaka 90%
Khulna 82.87%
Rajshahi 86.84%
Sylhet 81.16%
Hindu Population across Bangladesh
District Percentage (%)
Barisal 11.70
Chittagong
12.65
Dhaka 9.64
Khulna 16.45
Rajshahi 12.09
Sylhet 17.80
BangladeshGeography and Natural Resources
Current Opportu
nities
History
Geography
Population
Social & Political
Economy
Geographic -- Natural Resource• Natural Gas
Country Trade Value Share Growth
(thousands) (%) (% 5yr)
United States 2,759,388 20.27 28.47
Italy 2,225,120 16.34 47.10
Germany 1,202,202 8.83 191.25
Netherlands 639,905 4.70 64.55
United Kingdom 584,299 4.29 110.62
Spain 554,246 4.07 33.29
Saudi Arabia 397,085 2.92 (20.30)
….. ….. …. ….
Thailand 12,495 0.09 (41.58)
Argentina 11,645 0.09 146.65
Nicaragua 10,087 0.07 (16.14)
Finland 9,372 0.07 126.02
Honduras 8,714 0.06 15.13
Iran 8,474 0.06 97.21
Bangladesh 7,599 0.06 255.36
Natural gas - Production(cu m) 2008
CountryProduction (cu
m) %
1 World2,833,000,000,00
0 100
2 Russia 656,000,000,000 23.16
3 US 490,800,000,000 17.32
4 EU 213,700,000,000 7.54
5 Canada 178,200,000,000 6.29
… … … …
28 Thaland 22,730,000,000 0.8
… … … …
33Bangladesh 13,430,000,000 0.47
Bangladesh Tea Bangladesh Tea Board: To regulate, control and
promote the cultivation, sale and export of tea. In Chittagong, Panchagar and Sylhet Districts
Geographic -- Natural Resource
ANNUAL PRODUCTIONYear 2008-09 2007-08 2006-07
PRODUCTION TARGET
59,000 58,500 58,000
ACHIEVEMENTS 42,377* 58,839* 55,427
Global Production of Tea 2006 (Million Kg)
Production (In mkg)
32%
29%
10%
10%
4%4%
4% 3% 2% 2%1. China
2. India
3. Kenya
4. Sri Lanka
5. Turkey
6. Indonesia
7. Vietnam
8. J apan
9. Argentina
10.Bangladesh
t
Arable Land Timber Coal Leather
21.50 million Bovine and 17.50 million Goat and Sheep Bangladesh produces the world’s finest goatskin of
smooth grain pattern.
Jute (Natural fiber) Bangladesh has been blessed with the favorable
climate and the potentials to be the largest grower and exporter of the best quality jute, the golden fiber. This gives Bangladesh advantage over other jute growers anywhere in the world.
Geographic -- Natural Resource
No Data
Water
> 60
40 - 60
30 - 40
Undetermined (0 - 30)
Sparsely Vegetated
Permanent Crops & Arable Land (Percentage Intensity)
Other Resources
BangladeshPopulation and Demographics
Current Opportu
nities
History
Geography
Population
Social & Political
Economy
Demographic• Population: 153,546,896 (July 2008 est.)
• Population growth rate: 2.002% (2008 est.)
• Population Density: 1,123.5 person/sq km» Thailand #86 127.14 person/sq km» U.S. #172 32.87 person/sq km
• Age Structure:– 0-14 years: 33.4% Male 26,364,370
Female 24,859,792– 15-64 years: 63.1% Male 49,412,903
Female 47,468,013– 65 years/over: 3.5% Male 2,912,321
Female 2,529,502
• Life Expectancy: 63.21 years – rank #169 (2008 est.)
Rank
Country Population
1 World 6,706,993,152
2 China 1,330,044,544
3 India 1,147,995,904
4European Union
491,018,683
5United States
303,824,640
6 Indonesia 237,512,352
7 Brazil 196,342,592
8 Pakistan 172,800,048
9 Bangladesh 153,546,896
… … …
22 Thailand 65,493,296
Notice!!! There is a significant decrease in % of people between 0-14 years Next 15 years, the number of population in Bangladesh is likely to
decrease.
Life Expectancy at birth: 63.21 years – rank #169 (2008 est.)
Literacy Bangladesh Thailand U.S. Total Population 43.1% 92.6% 99%
- Male 53.9% 94.9% 99%- Female 31.8% 90.5% 99%
Education Education Expenditure
- 2.7% of GDP (2005) ---- Thailand (4.2%) ---- U.S. (5.3%) Primary School: 16,225,658 students Secondary School: 7,398,552 students Colleges: 1,367,246 students Professional Education: 60,043 students
Demographic
61.3361.71
62.0862.46
62.8463.21
60
61
62
63
64
2003 2004 2005 2006 2007 2008
Life Expectancy at birth (2003-2008)
Income Household Income or Consumption
- Lowest 10%: 3.7%- Highest 10%: 27.9%
Distribution of Family Income – Gini IndexBangladesh Thailand U.S 33.2 42 45
Labor Force 70.86 million
Note: Extensive export of labor to Saudi Arabia, Kuwait, UAE, Oman, Qatar and Malaysia
Workers' remittances estimated at $4.8 billion in 2005-2006 By occupation
Agriculture: 63% Industry: 11% Services: 26%
Demographic
BangladeshSocial & Political Environment
Current Opportu
nities
History
Geography
Population
Social & Political
Economy
Independence Previously known as East Pakistan, the war for
independence in 1971 brought about the establishment of People’s Republic of Bangladesh with the help of India.
Problems after Independence: famines, natural disasters, prevailing poverty (later tackled with Education and Population policies), political turmoil, and military coups.
Restoration of democracy in 1991.
Constitution was given in 1992.
Government A parliamentary representative democratic
republic. Political crisis during 2006-2008
Widespread violence and rioting, taking lives of more than 40 peoople.
Current government President: Zillur Rahman. Prime Minister: Sheikh Hasina.
Important policies Education Population
Opportunities and Threats
Opportunities• Foreign Relationships
Threats• Transparency
– Press: Bangladesh’s Freedom of Press ranked at 136 out of 173 nations.
– Corruption: Ranked 147 on CPI from 180 countries with the score of 2.1 in 2008.
• Political Instability– The 12th highest instability in the world on the Failed States
Index (FSI) in 2007. • Economic Freedom
– In 2008, Bangladesh ranked 108 out of 141 countries with the score of 5.94.
1973 1991 2000 20050
20
40
60
80
Poverty Rates in Bangladesh
Social Environment- Poverty
Poverty Rate has continued to fall at 1%/year
Still far too high, but each 1% is hundreds of thousands of people improvement.
18% of people in 2002 lived under straw roofs and only 54% had access to safe latrines.
Today, only 7% live under straw roofs and 71% have access to safe latrines.
Climate & Land Usage
Natural Disasters
Urban Drift & Population Density
Inequality Between Rich and Poor◦ Gini Index of inequality stagnant since 1995
showing a more equal distribution of income.◦ Still score shows large income disparity.
Inequality Between Males and Females◦ School enrollment rates, literacy rates, and until
recently life expectancy suggests women are marginalized in society.
◦ Microfinance and modernization are helping to change this but much work still to be done.
Social Environment - Equality
Grameen is a system of companies that originally started offering Micro-Loans to poor people.
Today Grameen operates numerous social businesses from education, financial, health care, communication, nutrition, etc… that are owned by the borrowers of Grameen Bank.
Much of the improvements in the field of poverty and equality have been attributed to Grameen and Professor Mohammed Yunus who also won the Nobel Peace Prize.
Social Environment - Grameen
BangladeshEconomic Structure & Development
Current Opportu
nities
History
Geography
Population
Social & Political
Economy
Economic Overview• GDP per capita $1700 in 2008 • GDP growth rate 5.9%
– agriculture: 19.1% – industry: 28.6% – services: 52.3%
• Public Dept 43.6% of GDP• Labor Force 70.86 million people• Resource endowment
– human resource base– rich agricultural land– relatively abundant water– natural gas
Economy overview:
> 1/2 of GDP is generated through the service sector
Rice as the single-most-important product.
Garment exports, and
Remittances from Bangladeshis working overseas, mainly in the Middle East and East Asia◦ workers' remittances estimated at $4.8 billion in 2005-06
LAND USAGE…
Arable land55%
Permanent Crops
3%
Other42%
ArablelandPermanentcropsOther
BUT…
GDP - composition by sector (2008 est.) :
Services52%
Industry29%
Agriculture19%
Agriculture
Industry
Services
Reasons behind… Climate: tropical; mild winter (October to March); hot, humid summer (March to June); humid, warm rainy monsoon (June to October)
Terrain: mostly flat alluvial plain; hilly in southeastern
But:
Natural hazards: droughts, cyclones; routine floods yearly◦ About a third of this extremely poor country floods annually
during the monsoon rainy season, hampering economic development.
Soil degradation/erosion; deforestation
Therefore… Agriculture - products:
-Rice, jute, tea, wheat, sugarcane, potatoes, tobacco, pulses, oilseeds, spices, fruit; beef, milk, poultry
Industries:-cotton textiles, jute, garments, tea processing, paper newsprint, cement, chemical fertilizer, light engineering, sugar
◦ Electricity - production:-22.78 billion kWh (2007 est.)
◦ Natural gas - production:-15.7 billion cu m (2007 est.)
◦ Oil - production:-6,746 bbl/day (2007 est.)
Imports/Exports: Exports:
$13.97 billion
Exports - commodities:garments, jute and jute goods, leather, frozen fish and seafood
Exports - partners:US 23%, Germany 13%, UK 9.1%, France 5.5%, Belgium 4%
Imports:$20.17 billion
Imports - commodities:machinery and equipment, chemicals, iron and steel, textiles, foodstuffs, petroleum products, cement
Imports - partners:China 15%, India 14.3%, Kuwait 8.3%, Singapore 6.2%, Hong Kong 4.2%
InfrastructureType Bangladesh Thailand USA
Telephones 1.178M 7.024M 163.2M
Cellular Phones 34.37M 51.377M 255M
Internet Hosts 1,440 1.116M 316M
Internet Users 500,000 13.416M 223M
Railways 2,768 km 4,071 km 226,612 km Highways 239,226 km 62,401 km 6,430,366 km
Airports (Paved) 15 65 5,143
Heliport - 3 146
Ports and terminals 2 4 10
Electricity Production 22.78 B kWh 130.7B kWh 4.167T kWh
Electricity Consumption
21.37 B kWh 123.9B kWh 3.892T kWh
Economic Development
Independence in 1971-1990
$30 billion in grant aid and loan commitments from foreign donors
Large trade deficit, financed through aid receipts and remittances from workers overseas
The static economic model- the nationalization of much of the industrial sector resulted in inefficiency and economic stagnation
Economic Development
1975 Greater scope to private sector, but banking and jute
sectors remain under government control Inefficiency in the public sector Resistance developing the country's richest natural
resources Limited capital restrict
Mid-1980s Encouraging private enterprise and investment Denationalizing public industries Reinstating budgetary discipline Liberalizing the import
Economic Development1991-1993 New economic program -financial sector reform,
liberalization, encourage investment Income transfer measures, Food-for-Work Successfully followed an enhanced structural adjustment
facility (ESAF) with the International Monetary Fund (IMF) Failed to follow through on reforms in large part because of
domestic political troubles
Economic DevelopmentLate 1990s to 2001 Exports grew 14% in 1996 GDP growth rose 5.5% from 1996 to 1997 Economic slowdown because of flooding in 1998-1999 Unprecedented growth in gas production and
electricity production sectors Economic policies became more entrenched Drop in foreign investment
2002-2003 IMF approved 3-year, $490-million plan as part of the
Poverty Reduction and Growth Facility (PRGF) World Bank approved $536 million in interest-free
loans The privatization of public sector industries has
proceeded at a slow pace - worker unrest in affected industries
Access to capital is impeded State-owned banks control about three-fourths of
deposits and loans, carry classified loan burdens of about 50%.
Economic DevelopmentNow poor, overpopulated, and inefficiently-governed nation Half of income from service sectors two-thirds of Bangladeshis are employed in the
agriculture sector Garment exports and remittances from Bangladeshis
working overseas fuel economic growth Pursued a monetary policy aimed at maintaining high
employment Higher inflation A lot of banks, but dominated by 4 Nationalized
Commercial Banks Nobel Prize Winning, Garmeen Bank, Specialized micro
finance bank
BUSINESS CULTURESupplement to Economics Section
General Society
Hierarchical society (age & position) Wiser Granted respect
The most senior male is expected, by age or position, to make decisions
Communication Styles
Relatively implicit/indirect communication◦ long, rich and contextualized sentences (only
make sense with body language)◦ Aware: communication styles may be seen as
rude and the information provided inadequate. Less personal space: stand close when
speaking to someone◦ same gender (otherwise, space increases) ◦ touch is common
Meeting & Greeting Relatively formal Proper behaviour is expected Men: a handshake, rather soft (arriving &
leaving) Foreign men: nod to a Bangladeshi woman
(unless she extends her hand) Addressing men: "Bahadur" ("Sir"), Addressing women: "Begum" ("Madam") Wait until your counterpart moves to a
first name basis before you do so.
Gift Giving Etiquette The importance: the thought rather than
the value ◦ gifts should be generally reciprocated ◦ rude to offer someone a gift that is difficult to
reciprocate
Frangipanis White flowers
Alcohol
Non-halal meatMoney
Open gifts in front of the giver
Some guidelines :
•Gifts are given with two hands
Business Card Etiquette
Exchanged after the initial introduction Educational qualifications are valued:
include any university degrees Present your business card with the right
hand Treat business cards given to you with
respect ◦ Study it, comment on it and ideally place it into a
business card holder
Business Meetings The place where decisions are disseminated rather
than made Usually lead by the most senior present, who sets
the agenda, the content, and the pace of the activities
Meeting structures: not very linear (an agenda and a starting time = guidelines)
Priority: Completing a meeting ◦ time may be extended
Meetings may begin with some small talk Communication is formal and follows a hierarchical
structure. Respect to the most senior person in the group is expected (especially dealing with government officials)
Never let professionalism slip. Casual behavior may be misinterpreted as a lack of respect.
Never lose your temper or show emotion. ◦ May lead to a loss of face = a loss of dignity &
respect. The need to avoid a loss of face is also
reflected in communication styles. ◦ Re-phrase sentiments: "we will try", "that may be
difficult", or "we will have to give that some thought"
◦ Therefore: ask questions in several ways to be certain
◦ Silence is often used as a communication tool. Lack of smiles = demonstrate maturity
Business Meetings (cont.)
BangladeshCurrent Opportunities
Current Opportu
nities
History
Geography
Population
Social & Political
Economy
Imagine you are an investor with $1 Million. You have identified 3 potential investment opportunities in Bangladesh.
IT/Software Outsourcing Natural Gas Sector Textile Manufacturing
Where are you going to invest?
Opportunities - Industries
IT/Software◦ Global Recession makes outsourcingto Bangladesh an economic possibility
Natural Gas◦ Global non-oil energy demand steadilyIncreasing, with abundant supplies in Bangladesh
Textile Manufacturing◦ New duty free textile agreements increaseoutreach of Bengali goods except USA
Opportunities – Industries
17.5% 11%24.4%
BangladeshDevelopment Recommendations
Current Opportunities
History
Geography
Population
Social &
Political
Econom
y
Development Recommendation
s
1) Increase FDI Inflows into Bangladesh
2) Pursue Free Trade/Open Economy
3) Develop Infrastructure and Disaster Response
4) Focus on Educating Workforce & Labour Mobility
Development Recommendations
Participation in Regional Organizations (eg: SAARC)
Trade Talks with both Developed and Developing Partners (eg: US, India)
Spending on Infrastructure, Disaster Response, and Education (eg: WB)
Use of NGO’s and Privatization when necessary and appropriate (eg: Grameen)
The Role of Government
Current Opportuniti
es
History
Geographic
Population
Social & Political
Economy
Conclusion
Development Recommendations
“Moving up the economic ladderas quickly as possible is the best protection against every form of foreign domination.”
– Mohammed Yunus
References• http://en.wikipedia.org/wiki/Politics_of_Bangladesh• http://en.wikipedia.org/wiki/2006%E2%80%932008_Bangladeshi_political_crisis• Muhammad Yunus – Creating A World Without Poverty• http://news.bbc.co.uk/2/hi/south_asia/6241263.stm• http://en.wikipedia.org/wiki/Human_rights_in_Bangladesh• http://en.wikipedia.org/wiki/Transparency_International• http://en.wikipedia.org/wiki/List_of_countries_by_economic_freedom• http://en.wikipedia.org/wiki/Corruption_Perception_Index#CPI_Ranking_.2820zz.E2.80.932008.29• www.transparency.org/news_room/in_focus/2008/cpi2008/cpi_2008_table• http://en.wikipedia.org/wiki/Reporters_Without_Borders• http://en.wikipedia.org/wiki/Transparency_(humanities)#Politics• http://en.wikipedia.org/wiki/Ease_of_Doing_Business_Index• http://en.wikipedia.org/wiki/List_of_countries_by_Failed_States_Index• http://en.wikipedia.org/wiki/Bangladesh_Liberation_War• http://english.people.com.cn/90001/90778/90858/90863/6598183.html• http://energy.ihs.com/News/published-articles/articles/bangladesh-natural-gas-perspective.htm• http://goliath.ecnext.com/coms2/gi_0199-5878353/PROFILE-BANGLADESH-S-TEXTILE-INDUSTRY.html http://www.photius.com/countries/bangladesh/economy/bangladesh_economy_natural_gas.html http://www.theodora.com/wfbcurrent/bangladesh/index.html http://www.photius.com/rankings/economy/natural_gas_production_2008_0.html http://www.epb.gov.bd/ http://www.teaandcoffee.net/0201/tea.htm http://www.thefinancialexpress-bd.info/search_index.php?page=detail_news&news_id=48297 http://www.teaboard.gov.bd/ http://www.fao.org/countryprofiles/Maps/BGD/12/al/index.html https://www.cia.gov/library/publications/the-world-factbook/flags/bg-flag.html http://www.kwintessential.co.uk/resources/global-etiquette/bangladesh.html http://www.bangladesh.com/culture/
