Development partnerships in middle income countries (MICs) in transition: a case study of Bangladesh

ABSTRACT

Bangladesh was designated a low middle-income country (LMIC) in 2014. The country has experienced a significant reduction in poverty and improvements in social indicators but there are still pockets of poverty. Governance remains a challenge, as do environmental concerns. For external donors, the use of only low-income country instruments like targeted poverty reduction will no longer be appropriate in Bangladesh. Appropriate external partnerships could include innovative and knowledge-based initiatives to share best practices, skills and expertise.

RÉSUMÉ

Le Bangladesh est devenu un pays à pays à revenu intermédiaire de la tranche inférieure (PRII) en 2014. Le pays a connu une réduction significative de la pauvreté et une amélioration des indicateurs sociaux, même s'il existe encore des poches de pauvreté. La gouvernance continue également d'être un défi, tout comme les préoccupations environnementales. Quoi qu'il en soit, l'utilisation des instruments destinés aux pays à faible revenu, tel que la réduction ciblée de la pauvreté, ne sera plus pertinente pour le Bangladesh. On aura avantage à privilégier des partenariats innovateurs basés sur la connaissance dans le but de partager des pratiques exemplaires, des compétences et des expertises.

KEYWORDS:

• Development partnership
• Bangladesh
• transition to a middle-income country
• international cooperation
• development financing

Notes

1 The World Bank defines extreme poverty as “living at a consumption (or income) level below 1.90 ‘international $’ per day. International $ are adjusted for price differences between countries and for price changes over time (inflation)” (https://ourworldindata.org/extreme-poverty/).

2 For the HAI, there are four indicators. (1) Nutrition: percentage of population undernourished. (2) Health: mortality rate for children aged five years or under. (3) Education: gross secondary school enrolment ratio. (4) Adult literacy rate. The EVI measure is based on: (1) population size; (2) remoteness; (3) merchandise export concentration; (4) share of agriculture, forestry and fisheries in gross domestic product; (5) share of population living in low elevated coastal zones; (6) instability of exports of goods and services; (7) victims of natural disasters; and (8) instability of agricultural production.

3 https://www.nytimes.com/2014/03/29/world/asia/facing-rising-seas-bangladesh-confronts-the-consequences-of-climate-change.html?

4 Dhaka Tribune, a Bangladeshi online newspaper, reported on 4 June 2016: “Currently, the tax–GDP ratio of Bangladesh is at 10.3%, which the government says is the lowest in the world, while it is 20% to 32% in neighbouring countries”.

5 The Bangladesh Remittance Story Reaffirmed, blog submitted by Zahid Hussain, 8 August 2014 (http://blogs.worldbank.org/team/zahid-hussain).

6 The Development Assistance Committee (DAC) of the Paris-based Organisation for Economic Co-operation and Development has 30 member countries, including the largest aid funders.

7 http://www.international.gc.ca/development-developpement/countries-pays/bangladesh.aspx?lang=eng

8 http://aiddata.org/

9 Based on a 2016 news report in BDNews24.com: http://bdnews24.com/economy/2016/10/07/china-expected-to-lend-bangladesh-40-billion-during-president-xi-jinping-s-dhaka-visit

10 International Finance Corporation in Bangladesh (2016) (http://www.ifc.org/wps/wcm/connect/region__ext_content/regions/south+asia/countries/bangladesh_overview).

Additional information

Notes on contributors

Syed Sajjadur Rahman

Syed Sajjadur Rahman is a Senior Fellow and Visiting Professor at the School for International Development and Global Studies, University of Ottawa, and a Senior Associate at Universalia in Montreal. He is a mentor for monitoring and evaluation at the Islamic Development Bank’s Islamic Corporation for the Development of the Private Sector. He worked for the Canadian International Development Agency (CIDA, now part of Global Affairs Canada) during 1992–2013 in various senior positions. He has a PhD in economics from Carleton University and has published on international development.

Mustafa K. Mujeri

Mustafa Mujeri is the Executive Director of the Institute for Inclusive Finance and Development, Bangladesh. He was previously the Director General of the Bangladesh Institute of Development Studies (BIDS), Chief Economist of the Bangladesh Bank (central bank), Adviser to UNDP in Cambodia, Research Director of the Centre for Integrated Rural Development in Asia and the Pacific (CIRDAP) and a National Expert at the Bangladesh Planning Commission. He has a PhD in economics from McMaster University and has published several books as well as in numerous professional journals.