Bangladesh’s Demographic Crossroads: Dividend or Disaster

While much of the developed world is battling the economic consequences of ageing populations, shrinking workforces, soaring dependency ratios, and rising pension liabilities, Bangladesh faces the opposite dilemma: how to absorb and empower a youth-heavy population productively, 45% of whom are under the age of 25.

This is not merely a demographic curiosity. It is a high-stakes economic variable. The so-called "demographic dividend", the temporary advantage a country enjoys when it has more people in the working-age rather than dependents, can either catalyse accelerated growth or devolve into a demographic disaster if poorly managed. It is, in effect, a window of opportunity-one that can shut with permanent consequences.

Demographic research and growth models consistently demonstrate that demographic dividends yield positive macroeconomic returns only when backed by targeted investments in education, health, job creation, and institutional capacity. Countries like South Korea and Singapore grew rich before they grew old by making precisely those investments. Bangladesh, by contrast, is running out of time to do the same.

The stakes are clear: failure to invest in our youth will deepen the structural underemployment and skill mismatch already visible in our labour markets. Without strong institutions and human capital systems, a youthful population becomes less of a growth asset and more of a volatility risk, economic, political, and social.

As an academic scholar, I have been engaged in higher education for more than three decades now. My role as a Pro Vice Chancellor at Uttara University (UU), a distinguished Dhaka-based private university in Bangladesh with over two decades of unwavering dedication to academic excellence, has given me a close opportunity to witness the magical transformation a young man or woman can have after receiving quality education from an institution that genuinely cares for excellence. Uttara University, a private institution in Dhaka with over 20 years of academic presence, views youth not as a passive demographic group to be served, but as the foundational engine of national development. Our university, established by renowned economist Professor Dr. M. Azizur Rahman, a PhD graduate of Vanderbilt University and former economic advisor to the United States Government, was designed around this very premise: education is not peripheral to development. It is development. His extensive professional experience, including his tenure with the United States Government, has guided the institution to become one of the most respected universities in Dhaka.

UU offers a US-style curriculum fortified by a liberal arts core, producing graduates who are not only professionally competent but also ethically grounded, critically minded, and globally aware. In a world where AI and automation are reconfiguring labour markets, these qualities are not ornamental; they are essential. Bangladesh needs more than coders and marketers; it needs thinkers, entrepreneurs, and leaders who can navigate uncertainty and complexity. As a leading contributor to Bangladesh's higher education, Uttara University remains dedicated to fostering such leaders.

We are investing in more than degrees. We are building a research ecosystem, strengthening industry-academia linkages, and encouraging students to engage with real-world policy, sustainability, and technological issues. Through this approach, UU aims not just to produce employable graduates but also to transform citizens who will shape Bangladesh's future.

This year's International Youth Day serves as a stark reminder: time is not on our side. The global economy is becoming more skill-biased, less forgiving of educational lag, and more competitive in terms of innovation and productivity. The longer we delay building a robust talent pipeline, the harder it becomes to avoid the middle-income trap and associated structural stagnation. To policymakers, the message is clear: Bangladesh must treat education reform and youth development not as social obligations, but as macroeconomic imperatives. The cost of inaction will not be merely economic; it will be generational.

On this International Youth Day, I extend my sincere best wishes to all young individuals. Please never forget that history does not favour the passive. The future belongs to those who equip themselves with knowledge, courage, and purpose. At Uttara University, we are proud to walk beside you on that journey as educators, mentors, and fellow builders of a more prosperous tomorrow. The education system should be designed so that young people are adequately trained to take a new job right after graduation and can create jobs for others. Only general education is not enough. We should focus on vocational education and pay special attention to female youth, who are mostly neglected due to cultural barriers. An educated mother can give us an educated, smart Bangladesh.