Unleashing the Potential :Skill Development Imperative for Attaining Bangladesh’s Vision 2041

Bangladesh has made remarkable progress in its development journey, transitioning from a struggling nation to a recognised success story. With sustained economic growth and prudent management, the country has become one of the world’s fastest-growing economies. Despite challenges posed by the COVID-19 pandemic, Bangladesh has demonstrated resilience, rebounding strongly and achieving a growth rate of 7.2% in FY2022. The government’s effective macroeconomic management has played a significant role in this growth. Bangladesh is set to climb further in the global economic ranking and poised to become the 20th largest economy by 2037.

To propel its development trajectory, Bangladesh has embraced Vision 2041, which seeks to eradicate poverty and achieve upper-middle-income and high-income country status by 2031 and 2041, respectively. The Perspective Plan of Bangladesh 2021-2041 (PP2041) outlines the strategic roadmap for achieving these goals. It sets ambitious targets for GDP growth, poverty reduction, and the eradication of extreme poverty. The plan emphasises the need for inclusive growth, welfare of the poor and vulnerable, productivity enhancement, and the transition to an innovation-driven knowledge economy.

Bangladesh is undergoing a transformative phase with rapid changes expected in its economy. In the next two decades, the country will face the challenges posed by an evolving global economic landscape characterised by technological advancements, global value chains, and new ways of doing business. Additionally, Bangladesh must adjust to its non-LDC status and the loss of associated market protections. The government also faces the task of harnessing the demographic transition to drive development, amidst the potential job losses caused by automation. Successfully leveraging technology and human capital to create productive employment will be crucial for Bangladesh’s future growth.

B. The Imperative to Transform into a Knowledge-based Smart Economy, with Increased Attention to Skills Development

Bangladesh’s aspiration to become a high-income country by 2041 is highly dependent on its ability to adapt to technological advancements and successful transformation of the economy into knowledge-based, smart economy.  The aspiration to move to enhanced prosperity status demands deeper and wider reform measures to deal with industrial competitiveness in a challenging global environment and beckoning emerging technologies. To remain competitive in the global market, Bangladesh needs to upgrade its workforce and build a knowledge-based economy. This requires investing in technological infrastructure, education, and training to develop the necessary technical skills to work with advanced technologies, including artificial intelligence and machine learning, areas Bangladesh currently lags in.

Bangladesh’s aspiration to become a high-income country by 2041 is highly dependent on its ability to adapt to technological advancements and successful transformation of the economy into knowledge-based, smart economy.  

Critical need to enhance productivity in manufacturing and maintain global competitiveness The manufacturing exports have been a significant driver of Bangladesh’s economic growth, with an average annual growth of approximately 10.3% since 2001, resulting in a rise from USD 6 billion to USD 52 billion over that period. While the ready-made garments (RMG) sector plays a crucial role, accounting for 43.1% of the manufacturing value, other industries such as textiles, food products, and leather works also contribute to this growth. However, the majority of manufacturing in Bangladesh remains low-tech and low-skilled, leading to low labor productivity compared to international standards. The emergence of modern technologies and the 4th Industrial Revolution (4IR) has transformed global production, driven by automation, robotics, and artificial intelligence. In order to maintain competitiveness and achieve Vision 2041, Bangladesh’s manufacturing sector needs to embrace technological sophistication and enhance productivity to keep up with global comparators benefiting from the digital economy and widespread technology adoption across sectors.