Bangladesh at 54: The true fruits of independence

On 26 March 1971, Bangladesh started its journey. Bathed in the blood of millions of martyrs, the young country started its journey, kept stumbling again and again, yet rose up with utmost optimism and defiance, proving the world wrong that Bangladesh would be a country destined to doom. 54 years and several autocratic regimes later, here we are, hoping for a fresh start towards reform and change.

When Bangladesh severed its ties with Pakistan, which had systematically exploited its resources and people, the region was among the poorest places on earth. Its economy was stifled by policies designed to benefit the western wing of the country.

An East Pakistani born in 1970 would not have been expected to be alive today. A Bangladeshi child born today, on the other hand, could well live to see the 22nd century. The economic strides the country has made since independence have improved the lives of its citizens in measurable ways, despite periodic setbacks and governance failures. The ability of Bangladeshis to build a better future is the ultimate fruit of independence.

Independence has conferred unambiguous improvement in living standards for all Bangladeshis. One can cite a number of measurable indicators of standard of living where Bangladesh has surpassed Pakistan, or many other countries that had better living standards than us at the time of independence. Notwithstanding the recent economic doldrums, or manifold crimes of the fallen Hasina regime, improvements in people's lives over the past several decades reflect Bangladeshi people's ability to work for a better future. We kept pushing forward, blessed by the upward mobility independence has conferred upon us.

In 1971, the newly independent Bangladesh inherited an economy devastated by war, natural calamities, and years of neglect under Pakistani rule. The immediate aftermath saw a contraction of GDP by nearly 20%, comparable in magnitude to economic collapses seen in war-ravaged nations like Iraq in the early 2000s. Yet, Bangladesh moved on.

This growth has far outpaced the economic trajectory of Pakistan, which had a significantly stronger economy at the time of partition.

In the 1980s, Pakistan's economy was nearly double the size of Bangladesh's. Today, the tables have turned. Bangladesh boasts a GDP of over $400 billion, while Pakistan struggles with $340 billion.

Human development paints an even starker contrast. In 1971, Bangladesh's literacy rate was below 30%. Today, it exceeds 75%. Pakistan lags behind, with millions of children still out of school. Infant mortality rates in Bangladesh have plummeted, maternal healthcare has improved, and life expectancy has risen dramatically. These are not just numbers; they are the breath of a nation that has fought to live, fought to rise, fought to build a future on its own terms.

One of the most striking achievements is Bangladesh's rapid reduction in poverty. In 1991, nearly half of all Bangladeshis lived below the extreme poverty line. By 2024, this had declined to about 18.7%, driven by a combination of economic expansion, industrialisation, and social safety nets. The country has not only caught up with Pakistan in terms of real GDP per capita but has also surpassed it in several key indicators of human development.

One of the most profound changes since independence has been the transformation of Bangladesh from an agrarian society into an industrial economy. In the early 1990s, nearly two-thirds of the labour force was engaged in agriculture. By 2019, this figure had declined to below 40%, with industry and services playing a much larger role in employment and GDP. The rise of the ready-made garments (RMG) sector, which now accounts for over 80% of exports, has been a major driver of this transformation.

Urbanisation has also played a critical role in this shift. In 1970, nearly 90% of Bangladeshis lived in rural areas. Today, the country has a higher urbanisation rate than India, Pakistan, or Sri Lanka. With urban centres serving as hubs for industry, finance, and innovation, cities have become catalysts for economic mobility.

Bangladesh has leveraged its growing workforce effectively. Unlike many ageing nations, its working-age population has been increasing steadily, with two-thirds of its citizens now of working age. However, the challenge remains in creating enough high-quality jobs to absorb this labour force. Employment in industry has doubled since the 1990s, but job creation in the formal sector has been slower than needed, leading to high levels of underemployment.

A critical aspect of the labour transformation has been the increased participation of women in the workforce, particularly in the RMG sector. In the early 1990s, only one in five workers was female; by the 2010s, this had increased to one in three. Despite this progress, female participation remains lower than in many Southeast Asian economies, highlighting room for further growth.

One of the key economic benefits of independence has been the expansion of infrastructure and basic services. In the 1990s, fewer than 10% of Bangladeshis had access to electricity; by 2019, this figure had risen to 90%. Rural electrification, improvements in roads, and expansion of telecommunications have significantly enhanced productivity and quality of life.

Health outcomes have also improved dramatically. In 1971, child mortality rates were among the highest in the world, with 150 out of every 1,000 infants not surviving beyond infancy. By 2019, this number had dropped to 25 per 1,000. Life expectancy, which was below 50 years in 1971, has now surpassed 72 years, outpacing many South Asian neighbours. Public health initiatives, particularly widespread immunisation programs, have been instrumental in achieving these gains.

Education has been another area of progress. In 1981, fewer than one-third of adults in Bangladesh were literate. By 2019, adult literacy had increased to nearly three-quarters. However, challenges remain, particularly in the quality of education and access to higher education opportunities.

Despite remarkable progress, inequality has increased over time. The Gini coefficient, a measure of income inequality, has risen since the 1980s, indicating that while economic growth has lifted millions out of poverty, wealth has become more concentrated. The richest households have seen their incomes grow significantly, while the poorest have faced stagnation or even declines in real earnings.

Moreover, governance issues and corruption have continued to hinder the country's potential. The current regime's economic mismanagement, coupled with crony capitalism, has led to inefficiencies in key sectors. Foreign direct investment remains low compared to regional peers, and bureaucratic inefficiencies have slowed the pace of reforms needed to sustain high growth.

As Bangladesh stands on the threshold of its next economic evolution, the key to sustaining its gains will lie in diversifying its economy beyond the RMG sector. Investment in higher-value industries, technology, and human capital will be crucial. Increasing female workforce participation, improving governance, and ensuring equitable economic policies will determine whether Bangladesh can continue its trajectory towards middle-income status.

Despite the setbacks of recent years, the overall progress made since independence is undeniable. Independence has given Bangladeshis the freedom to build their own economic future, and they have demonstrated their resilience in the face of adversity. While challenges remain, the story of Bangladesh is ultimately one of hope, transformation, and an unrelenting drive towards a better future.

The July Uprising of 2024 was a reaffirmation of the people's commitment to democracy, a second battle for independence—not from foreign oppressors but from domestic tyrants. It reclaimed the spirit of 1971 from the clutches of those who sought to monopolise it, placing it firmly in the hands of the people.

The July Uprising was more than a political movement; it was an economic assertion. It was the people demanding a future free of corruption, of economic stagnation, of stolen elections, and silenced voices. Just as the spirit of 1971 was a defiance against the economic exploitation of West Pakistan, the uprising of 2024 was a rejection of autocracy, a demand for prosperity, for dignity, for the right to determine one's destiny.

And may Bangladesh keep going forward, till the end of the time.