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1. SUBJECT: ECONOMIC
DEVELOPMENT OF
BANGLADESH
Chapter 2 From Syllabus: Planning And
Development Strategies Of Bangladesh

2. FIVE YEARS PLANNING
A Government Plan for Economic Development
over a Period of Five Years.
-Word “Five Years Plan” first Used by Plato in his
Book “Republic”.
-Introduced by Joseph Stalin in Russia (1928-32)
-Introduced by China in Asia
China

3. FIVE YEARS PLANNING IN BANGLADESH
• Introduced by Liaquat Ali Khan in 1950 in Pakistan.
• Three Five Years Planning in Pakistan from 1955-1970
• Introduced by Bongobondhu Sheikh Mujibur Rahman in
Bangladesh
• Established Planning Commission in 1972
• First Five Years Plan (1973-78)
• Seventh Five Years Planning is Running

4. GUIDING PRINCIPLES OF DEVELOPMENT PLANNING
IN BANGLADESH

5. FIRST FIVE YEARS PLANNING(1973-1978)
OBJECTIVE:
Sector Target Achievement
GDP 5.5% 4%
Industry 7.1% -0.3%
Agriculture 4.6% 3.7%
Power
& Gas
11% 32.7%
Economic rehabilitation of
war damaged economy
Reduce povertyAgriculture and industrial developmrnt Create employment
Increase the rate of
growth
5.4.3.
1. 2.

6. SECOND FIVE YEARS PLANNING (1980-1985)
OBJECTIVES: Sector Target Achievement
GDP 5.4% 3.8%
Industry 8.4% 4.8%
Agriculture 5% 3.5%
Per Capital
Income
3.5% 3.2%
Reducing
population
growth
rate
In food
5.4.
3.
2.
1.

7. THIRD FIVE YEARS PLANNING (1985-90)
Create
employment
Increase the rate of
growth of GDP
Induce private investment in agriculture
and industry
ENSURE
ENOUGH
SUPPLY OF1.
2.
4.
5.
3.
Development of
infrastructure

8. FOURTH FIVE YEARS PLANNING (1990-1995)
OBJECTIVE:
Here, Due to cyclone of 1991 lower achievement in
agriculture
Removal
of
1.
5.
4.
3.2.

9. FIFTH FIVE YEARS PLANNING (1997-2002)
OBJECTIVE:
Reduction
of
population
growth rate
and
Develop socio
economic
infrastructure
1.
5.
4.
3.
2.

10. POVERTY REDUCTION STRATEGY PAPER (2003-2011)
->Prepared by IMF & World Bank in September 1999 when Bretton Woods
Project published an “ABC to PRSPs”.
-The development and implementation of poverty reduction strategies should
be “country-driven”, “results-oriented”, “comprehensive”, “prioritized”,
“partnership-oriented”, and “based on a long-term perspective” for poverty
reduction (World Bank Website)
-Require countries to produce a Poverty Reduction Strategy Paper(PRSP) as a
condition for debt & meet the Millennium Development Goals (MDGs).
-28 countries have formulated full PRSP and 45 countries have produced an
interim document.
-Formulated & Implemented Interim Poverty Reduction Plan from 2003-2011 by
Bangladesh Government and went back to 5 years planning again.
-Given Instead of Five Years Planning.

11. POVERTY REDUCTION STRATEGY PAPER (2003-
2011)(Contd.)
It is expected to follow three key steps that typically characterize the
development of an effective poverty reduction strategy. These
include:
• (i) Developing a comprehensive understanding of poverty and its
determinants;
• (ii) Choosing the mix of public actions that have the highest impact
on poverty reduction; and
• (iii) Selecting and tracking outcome indicators.

12. THE PRSP CYCLE: SUCCESSIVE STEPS AND ACTORS INVOLVED
1. Understanding the nature of poverty
- Government
- Civil society
- World Bank
- Other multilateral, bilateral donors
2. 2. Choosing poverty reduction
objectives
- Government
- Civil society
- (Based on Millennium Development
Goals)
3. Defining the strategy for poverty
reduction and growth (prioritisation)
- Government
- Civil society
IMF/WB Board 'endorsement', loan
negotiations etc
4. Implementation of programmes and
policies
- Government
- Civil society

13. THE PRSP CYCLE: SUCCESSIVE STEPS AND ACTORS
INVOLVED(CNTD.)
5. Monitoring outcomes and evaluation impact
- Government
- Multi-stakeholder groups
- Civil society (as part of formal structures or informally)
- IMF and WB (Joint staff assessments, annual progress report...)
Step 5 then feeds back into the beginning of the cycle

14. SIXTH FIVE YEARS PLAN(2011-15)
A 12-member panel of economists, headed by Professor Wahid Uddin
Mahumud, has been formed to provide necessary inputs and advices to the
GED of the Planning Commission to formulate the Sixth Five Year Plan (SFYP)
for fiscal 2011-15.
The Sixth Plan is divided into three parts:
* Part 1: Strategic Directions and Policy Framework
* Part II: Sectorial Strategies, Programmes and Policies
* Part III: Statistical Annex and Technical Framework

15. SIXTH FIVE YEAR PLAN(2011-2015)(CONTD.)
Objectives:
• Raising Per Capital Income to US $ 2000
• Become a Middle Income Country
• Reduction of Unemployment Rate to 15
Percent.
• Decrease in the Number of People Below
Poverty Line to 25 Million.
• Increase GDP Growth Rate to 8%
• Extreme Poverty will be Around 8.9%
• Create 3.0 Million Surplus Jobs
Sector Target
Achievem
ent
GDP 8% 6.7%
Industry 25% 17%
Gross
Domestic
Investment
32% 26.4%

16. SEVENTH FIVE YEARS PLANNING (2016-2020)
Objective:
• Creating Large Number of Employment
• Control Inflation
• Increase GDP Growth Rate
• Reduce Poverty Rate & Ultra Poverty
• Increase Per Capital Income
Sector Target
Present
Situation
GDP 8% 7.2%
Poverty
Rate
18.6
%
29%
Ultra
Poverty
Rate
8.9%
Per
Capital Income
2000
$
1465$

17. GOALS OF SEVENTH FIVE YEARS PLANNING
• Higher Income Employment Opportunities
• Increase GDP Growth Rate
• Becoming a Middle Income Country
• To Ensure Equity and Social Justice for all
• Achieve Sustainable Development Goals
• Higher Standard of Living
• Decrease Population Growth Rate

18. WHY BANGLADESH SHIFTED TO PRSP FROM 5 YEARS
PLANNING?
The collapse of the Soviet Union
Donor’s Preference
Relationship to civil society’s policy documents
To achieve MDGs
To reach pro-poor community

19. SELECTED DEVELOPMENT PARAMETERS:
BANGLADESH, LMI AND UMI

20. SELECTED DEVELOPMENT PARAMETERS (CONTD.)

21. SCENARIO AND CENTER OF ATTENTION OF FIVE YEARS PLANNING
Plan
Plan Size
(Million TK)
Actual Expenditure
(Million TK)
Center of attention
First Five Years Plan 44,550 20,740
Economic Rehabilitation of War Damaged
Economy
Second Five Years Plan 172,000 152,970 Self-Sufficiency in Food
Third Five Years Plan 386,000 270110
Ensure Enough Supply of Basic
Needs
Fourth Five Years Plan 620,000 598,480 Reduce Poverty
Fifth five years plan 4050,534 4373,000 Food Production & Electricity
Sixth five years plan Increase Gross Domestic Investment
Seventh years plan
 Creating Large Number of Employment
 Power & Gas

23. For more data and information please visit: http://www.plancomm.gov.bd/wp-
content/uploads/2015/02/18_Achieving-Digital-Bangladesh-by-2021-and-Beyond.pdf

24. VISION 2021(KEY TARGETS)
• Making Bangladesh a middle-income and a high HDI
country by 2021, the Golden Jubilee Year of national
independence
• Graduating Bangladesh to a resilient democratic nation
• Democratic culture
• Right to information and free media
• Independence of judiciary
• Gender balanced society
• Food and energy secured country
• Knowledge based society
• Strengthening ICT towards ‘digital Bangladesh’
• Protecting environment and meeting climate change
challenges

25. GOALS OF VISION 2021
• To become a participatory democracy,
• To have an efficient, accountable, transparent and decentralized system of governance,
• To become a poverty-free middle-income country,
• To have a nation of healthy citizens,
• To have a skilled and creative human resource,
• To become a globally integrated regional economic and commercial hub,
• To be environmentally sustainable and
• To be a more inclusive and equitable society.

26. AGENDAS FOR 7FYP(ICT & ECONOMIC
GROWTH)
1. Access to finance
2. High tech Park
3. PPP and local ownership
4. A branding strategy
5. Human resource development

27. AGENDAS FOR 7FYP(ICT & EDUCATION)
1. Interactive multimedia classrooms in every school
2. Incentives for teachers based on performance and innovation
3. ICT literacy for students in tertiary education
4. Accelerating Research Network
5. Monitoring at the field level
6. Education TV or web TV Financing ICT education
7. National Certifying Authority
8. Youth empowerment

28. AGENDAS FOR 7FYP(ICT FOR GREATER
TRANSPARENCY, GOOD GOVERNANCE AND
IMPROVED PUBLIC SERVICE DELIVERY)
1. Pro citizen civil service
2. Healthcare
3. Agriculture
4. Reduced environmental vulnerability
5. Just judiciary
6. Responsive law enforcement
7. Effective and efficient social security
8. Service delivery oriented PPP
9. Parliament

29. AGENDAS FOR 7FYP(ENABLING
ENVIRONMENT)
• Democratizing access to ICTs
• Designing inclusive partnerships

30. RECOMMENDATIONS:
• Create Sustainable Environmental Plan & Quality Infrastructure
• To Ensure of Foreign Aid & Investment
• Political Stability
• Co-Ordination of Different Statistical Report
• Provide Situational Training
• Skilled Manpower
• Monetary Policy Must be Planned According Five Years Plan
• Utilization and mobilization of youth from every locals.