Bangladesh is at the crossroads of a major economic transition. The reduction in fertility and mortality rates over the past three decades have shifted the demographic structure in such a way that for the first time in Bangladesh’s history, there is a higher proportion of the population in the productive than in the dependent age group. However, increasing number of workers does not translate into economic growth unless sufficient investment is made towards boosting their productive capacity. Timely and effective policies and interventions are thus needed in order to reap the benefits of this window of economic opportunity.
At the April Innovation Forum, former research director of the Bangladesh Institute of Development Studies, Dr. Rafiqul Huda Chaudhary, discussed how we can make the most of the opportunity created by this demographic dividend. Through a comparison of Bangladesh’s current economic conditions with those of the East Asian countries during their own demographic transitions, he called attention to the preconditions needed to ensure greater absorption of the labor force into productive employment. Factors such as improved quality of human capital, favorable savings and investment climate and open market policies, were critical to the success of the East Asian economies. However, in spite of the significant strides in development in recent years, many of Bangladesh’s economic indicators are still lagging. According to Dr. Chaudhary’s research findings, there is need “for creation of more jobs in this sector which will require, among other things, increased savings, greater investment in new technology and job creation, and attracting foreign capital to expand manufacturing capacity”.
There is much to be done. While a significant portion of the responsibility lies with the government, private sector organisations and NGOs also have a role to play. As an organisation working with millions of youth in Bangladesh through activities focused on income generation and livelihood, BRAC should also explore ways in which it can contribute ensuring productive employment for this new generation of workers.
See slides from Dr. Rafiqul Huda Chaudhary’s presentation below-
