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Economic Growth & Poverty Reduction in Bangladesh

In: Business and Management

Submitted By zaxcavty
Words 3948
Pages 16
BUS530

MACROECONOMICS

ECONOMIC GROWTH & POVERTY REDUCTION IN BANGLADESH

Prepared by
Aadil Choudhury
112 0322 660
Section 1

INTRODUCTION
The relationship between economic growth and poverty reduction is not always automatic. To achieve poverty reduction, robust economic growth is necessary but not sufficient. The financial allocation and source of finance play a crucial role in implementing the development endeavor and achieving macroeconomic objectives like growth, employment, and price stability. Investing in some sectors of the economy may contribute to rapid economic growth while others may contribute to poverty reduction. Again there are some sectors which may contribute to achieving both growth and poverty reduction.
BANGLADESH’S CHALLENGES IN ECONOMIC GROWTH & POVERTY REDUCTION
Bangladesh has had some success in attaining economic growth and reducing poverty. But many more challenges lie ahead of us which we must face to eradicate poverty and move towards a poverty-free Bangladesh.
Challenge of better monetary management
The country has opted for following a selective credit control measures with expansionary credit policy to essential sectors and contractionary policies to luxury items. It has been following 'free-float currency' policy which appears to be a mere luxury with both export and import sectors of the country suffering from structural rigidities. Free float of Bangladesh currency along with erosion of dollar vis-a-vis other currencies of the baskets has placed the value of Taka more vulnerable in international market. While the credit control policies are in conformity to the economic realities of the country, this cannot be said in respect of the exchange rate policy as well. A permanent Banking commission may be formed to supervise the issues of the banking sector in totality and BB may be a member of this Commission.

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