Bangladesh : Knowledge Solutions for Inclusive and Sustainable Development

Energy / Energy sector development and institutional reform

Industry and trade / Industry and trade sector development

Public sector management / Public administration

Transport / Transport policies and institutional development

Water and other urban infrastructure and services / Urban policy, institutional and capacity development

The knowledge and support technical assistance (TA) is closely aligned to the recently approved Strategy 2030 and will help the Asian Development Bank (ADB) respond best to highly relevant knowledge needs for Bangladesh's inclusive and sustainable development. The TA will create innovative and operation-relevant knowledge solutions. Knowledge products will be developed on strategic issues for Bangladesh's economic transformation and core sectors relevant to ADB's operations in the country. The policy development and advisory work under the TA will include the preparation of the background documents and inputs for overall policymaking, development plans, sector development, and potential project development.

The TA is included in ADB's current country operations business plan, and consistent with ADB's country partnership strategy for Bangladesh, 20162020. The country partnership strategy prioritizes the knowledge support for economic and sector analysis to support more rapid structural transformation of the Bangladesh economy, including in-depth analysis of economic corridor development.

Bangladesh has achieved impressive economic and social development over the past decade. From 2009 to 2018, the average gross domestic product growth rate was 6.5%, and Bangladesh achieved a record high gross domestic product growth rate of 7.9% in fiscal year 2018. The country is now keen to consolidate these gains and accelerate its economic momentum by attaining an annual growth rate of 8.0% by fiscal year 2020. Ultimately, Bangladesh aspires to make growth more inclusive and reduce poverty by creating jobs and fostering regionally balanced development.

However, the country still faces a number of medium- to longer-term challenges, including preference erosion and higher cost of finance and debt servicing liability arising from its possible graduation from least developed country (LDC) status in the near future. To attain its vision to become a developed country by 2041, Bangladesh needs to overcome middle-income challenges, such as low productivity, narrow economic base, and growing inequality, and seize new opportunities from the changing economic landscape, such as the advent of Industry 4.0the trend of automation and data exchange in manufacturing technologies.

Recognizing these challenges, the Government of Bangladesh has committed to modernizing the country's agriculture, strengthening industrialization, improving human capital, and accelerating regionally balanced development. Bangladesh aims to sustain the growth momentum, and accelerate the growth for its longer-term goal to become a developed country. Innovative knowledge solutions remain one crucial key element to achieve the goal. Extensive policy research and analytical advice will help policy makers understand the development challenges and conditions unique to Bangladesh.

One critical area for knowledge solutions is broadening the economic base with an emphasis on the lagging regions for industrialization. Bangladesh has adopted the establishment of economic corridors as a holistic development approach to drive structural transformation and improve welfare across various regions. Economic corridor development is closely aligned with the Seventh Five Year Plan. It entails constructing world-class infrastructure that is typically aligned with a major transport network, connecting urban clusters with vibrant industrial zones, and providing a favorable and competitive environment for setting up businesses and facilitating the efficient movement of goods and people. The proposed Bangladesh Economic Corridor (BEC) will run from Jessore in the country's southwest to Sylhet in the northeast via Dhaka, and will include an extension to several key gateways. This is one of the national corridors identified in the South Asia Subregional Economic Cooperation (SASEC) Operational Plan with potential to develop into a regional economic corridor.

ADB supported the preparation of a comprehensive development plan (CDP) for the Southwest Bangladesh Economic Corridor (SWBEC)phase 1 of the envisaged BEC alignmentunder a regional TA project. The CDP offers a knowledge solution for the efficient and integrated implementation of the economic corridor project. While the envisaged SWBEC is expected to contribute significantly to the development of the southwest region, the proposed phase 2 of the BEC will integrate the northeast region of the country with the more vibrant growth centers of Dhaka and Chittagong. Extensive planning will need to be conducted for the second phase for the entire corridor alignment, from the southwest to the northeast, to boost Bangladesh's transport and trade linkages with South Asia and integrate with rapidly growing markets in Southeast Asia and East Asia, maximizing its geographical advantage. It will promote synergies between economic corridors being developed in SASEC countries to maximize the development impacts of investments.

In addition to the phase 2 of the BEC, this TA will also respond to needs for analytical work and knowledge solutions in a wide range of sectors and thematic areas. It seeks to support the formulation of sound interventions and development strategies to maintain prudent macroeconomic policies, accelerate economic transformation, improve human capital, introduce climate-friendly smart agriculture, upgrade industry, boost foreign direct investment, expand the tax base, address infrastructure gaps, and improve the investment climate. A key element of economic transformation will be the use of high level technologies and skilled human capital that are optimally suited to deliver a knowledge economy.

Aside from a deficiency in innovative knowledge solutions, weak governance and institutional capacities continue to constrain Bangladesh's development prospects. The international development community's commitment to strengthen governance and institutional capacities was reaffirmed in the Sustainable Development Goals, particularly Sustainable Development Goal 17, which aims to enhance the effectiveness of capacity development to developing countries. ADB's Strategy 2030 ascertains that ADB will strengthen its role as a knowledge provider and continue to work with the government to enhance their ability to address development issues and deliver projects. For more impactful knowledge dissemination and capacity building, knowledge-sharing events such as conferences, forums, and workshops need to be organized for high-level dialogues with government officials and leading experts. They can provide opportunities for in-depth discussions and deliver comprehensive inputs to policy formulation.

Policy environment to support regionally balanced, inclusive and sustainable development in Bangladesh improved

Well-informed and well-developed policies on economic management solutions adopted

Comprehensive Development Plan for Northeast Bangladesh Economic Corridor prepared

Knowledge Products for inclusive and sustainable development produced

Institutional capacity and knowledge enhanced

Investment climate of Bangladesh improved

Package titleSelection methodEngaged by

Project Team Leadera Individual ADB

Urban SpecialistaIndividual ADB

Transport SpecialistaIndividual ADB

Energy SpecialistaIndividual ADB

Business Regulatory SpecialistaIndividual ADB

Industrial EconomistaIndividual ADB

Climate Change SpecialistaIndividual ADB

EconomistIndividualADB

Research AnalystIndividualADB

Project CoordinatorIndividualADB

Resource Persons / Short-term Experts for policy notesIndividual ADB

Logistics SpecialistIndividualADB

a Experts for Comprehensive Development Plan for Northeast Bangladesh Economic Corridor