Practise comparing growth and living standards between countries and over time by calculating real income per head and weighing productivity, HDI, inequality and extract evidence.
Economic development in Bangladesh
Since 1971 Bangladesh has experienced significant economic development, moving from the low-income to the lower-middle-income country classification. Gross National Income (GNI) per capita at constant 2017 prices in United States dollars ($) rose from $2342 to $5823 between 2000 and 2020. Over the same period, the country's Human Development Index (HDI) rose from 0.49 to 0.66 .
During this period, Bangladesh underwent changes in employment as it moved from the agricultural sector to the manufacturing and services sectors.
First, in agriculture, output increased by more than 100% whilst employment fell from 65% to 38% of the working population. This change was helped by innovation in crop irrigation, land preparation and harvesting, aided by the development of local industries to provide the capital equipment needed.
A second source of economic development was the growth in the clothing industry producing ready-made garments (RMG) that contributed about 11% of Bangladesh's Gross Domestic Product (GDP) and employed 4.4 million workers of which 2.5 million were women (2020). The industry uses significant division of labour with production split into 10 or more processes, for example, cutting, sewing zips, assembly and packaging.
The value of raw materials imported for the RMG industry was about half of the value of the industry's exports. Net exports from this sector stood at $23 billion. This enabled Bangladesh to both import a wider range of goods and services and reduce the deficit on its balance of trade in goods.
In 2020, there were more than 4000 RMG manufacturers in Bangladesh, differentiated by the quality of their products and the speed of their delivery. The RMG industry supplied more than 100 major US and European retailers.
However, the RMG industry has critics who point to air and water pollution from the chemicals used in cotton growing and manufacturing clothes. The industry is also accused of employing child labour and of having poorly constructed factories.
> Sources: Bangladesh overview: World Bank, 11 April 2024 and Quarterly Review on Readymade Garments, Bangladesh Bank Research Department, 14 February 2023
With reference to the article, assess whether there is enough evidence to conclude that living standards in Bangladesh have improved since 1971.
Distinction between standard of living: monetary e.g. income and non-
monetary e.g. health, education, water quality 1.
Improvements
Rise in GNI from 2342 US$ to 5823 US$ = 24811 US$ / 143 \% increase 1
HDI rose 0.49 to 0.661
Agricultural production/productivity. increased 1, Balance of Trade improved 1
Net exports increased 1, wider range of goods and services imported 1
Maximum 3 marks
Disadvantages
Development of negative externalities 1 air/water pollution 1 use of child labour 1 bad working conditions 1
Loss of agricultural jobs 1
Poorly constructed factories 1
Conclusion
Not enough evidence in the article 1
No information on housing/education or health 1
EITHER