[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-108579-en":3,"doc-seo-108579-105":31,"detail-sidebar-cat-0-en-105":93},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":28,"seo_description":14,"update_tm":29,"read_time":30},108579,8796095461610,"Oliver","https://ap-avatar.wpscdn.com/davatar_276721f389ce27ea32af1340a28f341c",8,"Research & Report","Bangladesh Country Economic Memorandum - Change of Fabric","Bangladesh Country Economic Memorandum focuses on how the country can sustain and accelerate growth through structural reforms and targeted policy actions. It reviews drivers of rapid economic expansion, identifies challenges in trade competitiveness and proposes trade policy reforms. The memorandum also examines financial sector constraints affecting credit growth, evaluates risks to financial stability, and assesses low financial inclusion. It further addresses urbanization priorities, connectivity needs, and reform options to strengthen long-term resilience.","Pub lic Disclosure Authorized Pub lic Disclosure Authorized Pub lic Disclosure Authorized Pub lic Disclosure Authorized  \nChange of Fabric  \nPHOTO BY: © 2018 LUMENITE/SHUTTERSTOCK.  \nCOVER PAGE PHOTOGRAPHS: © 2017 HAFIZ JOHARI/SHUTTERSTOCK;  \n2021 HM SHAHIDUL ISLAM/SHUTTERSTOCK; 2020 PIXPARTS/SHUTTERSTOCK.  \nBANGLADESH  \nCOUNTRY ECONOMIC MEMORANDUM  \nChange of Fabric  \nContents  \n Contents  \nAcknowledgments 10  \nExecutive Summary 13  \nCHAPTER 1  \nIntroduction 21  \nCHAPTER 2  \nStructural Improvements to Sustain High Growth 25  \nBangladesh’s Economy Is Growing Rapidly 25  \nThe Success Is Based on Past Reforms and Stability 28  \nCHAPTER 3  \nBoosting Bangladesh’s Trade Competitiveness 47  \nEroding Trade Competitiveness 47  \nWhat Explains the Eroding Trade Competitiveness? 53  \nExpected Impact of Trade Policy Reforms in Bangladesh 60  \nPolicy Recommendations to Boost Bangladesh’s Trade Competitiveness 68  \nAnnex 3A: Quantifying Barriers to Trade in Services Using Machine Learning and Gravity Model Analysis 72  \nAnnex 3B: Determinants of Export Survival: An Econometric Analysis 73  \nAnnex 3C: A Structural Gravity Model to Undertake Simple General Equilibrium Simulations of Services Policy Reforms 74  \nContents  \nAnnex 3D: General Equilibrium Modeling Scenarios 75  \nAnnex 3E: General Equilibrium Modeling Framework and Data 76  \nCHAPTER 4  \nFinancing the Next Phase of Growth 81  \nIntroduction 81  \nDespite Progress in Recent Decades, Bangladesh’s Financial System Lags behind Those of Its Peers 82  \nLong-Standing Sector Vulnerabilities Pose a Threat to Financial Stability and Drag Down Credit Growth 83  \nGrowth of Credit to the Private Sector Is Slowing Down, and the Efficiency of Credit Allocation Is Affected by Related-Party Lending and the Large Role of the State 86  \nThe Costs of Financial Intermediation Are Driven by Structural Inefficiencies and High Nonperforming Loans Rather Than Profit-Seeking Behavior 90  \nThe Regulatory and Supervisory Environment Is Not Conducive to Development of the Credit Market and Genuine Competition, and It Does Not Fully Address the Risks to Financial Stability 93  \nFinancial Inclusion in Bangladesh Is Still Low, Despite the Recent Progress in Digitalization of Financial Services 95  \nNonbank and Capital Markets Are Shallow, with a Lack of Secure Investment Opportunities and a Weak Domestic Institutional Investor Base 97  \nKey Policy Recommendations 99  \nAnnex 4A: List of Private Banks, by Generation 103  \nAnnex 4B: Determinants of the Growth of Loans and Deposits of Banks in Bangladesh 104  \nAnnex 4C: Determinants of the Net Interest Margin 105  \nCHAPTER 5  \nGetting Urbanization Right 111  \nIntroduction 111  \nPatterns of Urbanization during the Past Decades 113  \nUrbanization Challenges for Bangladesh 117  \nHow Would Urbanization Evolve in Bangladesh in Response to Improved Connectivity and Climate Shocks? 119  \nDigital Connectivity for Urbanization in Bangladesh 124  \nPolicy Options for Urbanization 126  \nChange of Fabric  \nContents  \nGRAPHICS  \nFigure 1.1: Bangladesh’s Average Distance to Peer Countries 23  \nFigure 2.1: Real GDP Growth and GDP per Capita 25  \nFigure 2.2: Sectoral Growth over Time 26  \nFigure 2.3: GDP Growth Compared with Peers Countries 26  \nFigure 2.4: Activity Indicator during the COVID-19 Pandemic 27  \nFigure 2.5: Sectoral Employment Levels 28  \nFigure 2.6: Sectoral Value Added per Worker 28  \nFigure 2.7: Economic Complexity Index 28  \nFigure 2.8: Governance Indicators Index, 2020 29  \nFigure 2.9: Human Capital Index 29  \nFigure 2.10: Broad Decomposition of Growth in Bangladesh 31  \nFigure 2.11: Growth Contribution of New Policy Innovations 32  \nFigure B2.1.1: Residual of the Cross-Country Model in the Last Period 34  \nFigure B2.1.2: Bangladesh Country Dummy, by Period 34  \nFigure B2.1.3: Difference between the Bangladesh Country Dummy across Sectors 35  \nFigure B2.1.4: Statistical Capacity Index 35  \nFigure 2.12: Exports as a Share of GDP, 2019 36  \nFigure 2.13: Average Tariff ","cbCaitnOInSmggXA","https://ap.wps.com/l/cbCaitnOInSmggXA","pdf",9815353,6,1,132,"English","en",105,"# Executive Summary\n# Chapter 1 Introduction\n# Chapter 2 Structural Improvements to Sustain High Growth\n## Bangladesh’s Economy Is Growing Rapidly\n## The Success Is Based on Past Reforms and Stability\n# Chapter 3 Boosting Bangladesh’s Trade Competitiveness\n## Eroding Trade Competitiveness\n## Policy Recommendations to Boost Bangladesh’s Trade Competitiveness\n# Chapter 4 Financing the Next Phase of Growth\n## Financial System Constraints and Credit Growth\n## Key Policy Recommendations\n# Chapter 5 Getting Urbanization Right\n## Patterns of Urbanization during the Past Decades\n## Policy Options for Urbanization","[{\"question\":\"What core goals does the Bangladesh Country Economic Memorandum pursue?\",\"answer\":\"It aims to sustain high growth through structural improvements, strengthen trade competitiveness, address financing constraints, and improve urbanization outcomes with focused policy reforms.\"},{\"question\":\"Why is Bangladesh’s trade competitiveness described as eroding?\",\"answer\":\"The memorandum analyzes drivers behind declining competitiveness and links them to the need for trade policy reforms that can improve exports and service performance.\"},{\"question\":\"What key financial sector issues are highlighted for financing the next growth phase?\",\"answer\":\"It points to vulnerabilities that threaten stability, slowing credit growth influenced by related-party lending and the large state role, and persistent inefficiencies reflected in high nonperforming loans and weak competition.\"}]","Bangladesh Country Economic Memorandum - Change of Fabric | 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