Systemic change through education: Budgeting for uncertainty in a shifting World
As Bangladesh prepares to graduate from LDC status in 2026, its education strategy must evolve into a global, future-ready framework — one that views human capital not just as a development goal, but as a tool of national resilience and geopolitical influence
Big changes lie ahead as Bangladesh approaches its graduation from Least Developed Country (LDC) status in 2026. We must acknowledge the impact of forces far beyond our borders on our national development strategy. The spectre of global conflict, intensifying geopolitical rivalries, the AI revolution, and disruptions to global supply chains are transforming how nations mobilise and instrumentalise human capital.
Today, capacity building is not merely a goal of economic development, but a vital tool of national security and global relevance. And while Bangladesh's FY 2025–26 education budget reflects an effort to develop a skilled and competitive workforce, the question remains: is it enough in an increasingly volatile and competitive world order?
Repositioning education as a geostrategic advantage
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We can no longer afford to view education merely as literacy or a component of economic growth. As a geopolitical asset, it can serve as either a strategic advantage or a crippling liability. Nations that invest in advanced human capital gain influence in global trade, technology ecosystems, and diplomatic negotiations. With nearly 28% of its population aged between 15 and 29, Bangladesh has the opportunity to emerge as a provider of skilled and adaptable labour in key international markets — but this will require long-term commitment.
In today's high-stakes global environment, Bangladesh's education policy must evolve from a rigid, traditional framework into a forward-looking, globally informed blueprint. To prepare a future-ready workforce, we must align national priorities with international labour demands and technological transformations. Strong regional examples such as Vietnam and the Philippines illustrate the value of educational investments guided by global foresight — both countries are already reaping the benefits of such strategies.
In these cases, educational goals were strategically prioritised. The focus must now shift away from low-cost, low-skill labour export models towards producing engineers, digital service professionals, AI specialists, healthcare technicians, and bilingual workers. Our education system must not merely react to global shifts — it must anticipate and shape them.
Systemic change and teacher development
The education budget for FY 2025–26 has been set at Tk 95,644 crore — an increase of just 1% from the previous year. While allocations for secondary and technical education rose by 7–8%, the primary education budget declined by nearly 9%. Overall, education spending remains at just 1.5% of GDP, well below UNESCO's recommended 4–6%.
This modest increase underscores the need for smarter, more targeted investment, especially in areas that build global competitiveness, such as language training, digital literacy, STEM education, and vocational pathways. However, it falls short of enabling the strategic shift needed to deliver quality education at scale.
A major concern is the continued undervaluing of teacher training, capacity building, mentorship, and compensation. Bangladesh faces a long-standing crisis in teacher recruitment and quality at both the primary and secondary levels of education. This status quo must be challenged through systemic investment in educators and by elevating standards through participation in regional and international student assessment frameworks.
The global labour battlefield
The global labour market is undergoing a profound transformation. Traditional routes of labour migration are narrowing due to rising nationalism and automation. Bangladesh's historic dependence on exporting unskilled workers is becoming increasingly unsustainable. In contrast, countries such as Vietnam (education budget at 2.9% of GDP), the Philippines (3.6%), and India (4.1%) have aggressively invested in vocational education, digital upskilling, and workforce integration, securing a larger share of high-value global employment and outsourcing.
Bangladesh is well-positioned to rapidly scale up and modernise its existing Technical and Vocational Education and Training (TVET) programmes. TVET centres across the country are a valuable asset and can harness the potential of our large youth population. Members of the Bangladeshi diaspora working in leading global universities can be engaged full-time or in advisory capacities to help design and adapt curricula.
Moreover, we require strategic bilateral labour agreements, improvements in the ease of doing business, tax incentives, and simplification of international payments. These reforms are essential to make our skilled workforce globally competitive and accessible. In the coming decades, the global contest will no longer be for raw labour, but for adaptable, technologically competent professionals, and Bangladesh must prepare accordingly.
Strategic recommendations in an unstable world
The following key recommendations, frequently highlighted by education activists and policy stakeholders, should be prioritised:
- Increase education spending to at least 4% of GDP within the next three years as a stepping stone towards international benchmarks.
- Prioritise English, mathematics, financial literacy, and digital fluency at all levels of education.
- Develop and commit to a roadmap for participation in PISA (Programme for International Student Assessment) to improve quality and achieve international recognition.
- Align vocational and tertiary education with exportable and strategic sectors, such as renewable energy, healthcare technology, logistics, and climate adaptation.
- Foster global partnerships for curriculum design, certification, and job placement.
- Embed values of ethical leadership and critical thinking to help young people navigate polarised global narratives and information warfare.
Conclusion: Systemic change in a volatile world
Education has always been a tool of empowerment. But in today's geopolitical climate, it is also a means of preparedness — a way to insulate a nation against external shocks and to secure its place in shaping the future. For Bangladesh, graduation from LDC status is not an endpoint, but the beginning of a far more complex journey. The true challenge lies in how we prepare the next generation to lead in a fragmented, digitised, and potentially conflict-prone world.
The FY 2025–26 education budget, though modest, offers a foundation on which to build. With visionary leadership, evidence-based policymaking, and international cooperation, it can become the springboard for transforming Bangladesh's demographic dividend into a globally relevant, resilient, and skilled workforce. In a world defined by uncertainty, an educated and empowered population may well be our most enduring defence — and our most meaningful contribution to global peace.
Zareen Mahmud Hosein, FCA, is a Partner at Snehasish Mahmud & Co., Chartered Accountants and the Founder of CholPori
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard
