International migration remains a driver of human development and economic growth, highlighted by a more than 650 percent increase in international remittances from 2000 to 2022, rising from USD 128 billion to USD 831 billion, according to a new global report released today. The growth continued despite predictions from many analysts that remittances would decrease substantially because of COVID-19. The International Organization for Migration (IOM) launched the World Migration Report 2024, which reveals significant shifts in global migration patterns, including a record number of displaced people and a major increase in international remittances. IOM Director General Amy Pope formally released the report in Bangladesh, which stands at the "forefront of migration" challenges, including emigration, immigration and displacement. "We hope the report inspires collaborative efforts to harness the potential of migration as a driver for human development and global prosperity," DG Pope said. By choosing Dhaka as the report's launch site, IOM not only highlights the country's efforts in supporting vulnerable migrants and fostering pathways for regular migration but also recognizes Bangladesh's important role in shaping global migration discourse and policy, IOM said. As a Global Compact for Safe, Orderly, and Regular Migration Champion country, Bangladesh has demonstrated a strong commitment to addressing migration issues and implementing policies that safeguard migrants' rights, it said. Read more: Global actors pledge to collaborate on transformation of Bangladesh agriculture This proactive engagement aligns with IOM's strategic objectives, making Bangladesh an ideal location to launch the 2024 World Migration Report. Foreign Minister Dr Hasan Mahmud said as one of the GCM champion countries, Bangladesh will not only continue to act upon the pledges it has made for its domestic context but would also take up emerging issues and challenges pertaining to migration and development for informed deliberations at the international level. “The World Migration Report 2024 helps demystify the complexity of human mobility through evidence-based data and analysis,” Pope said at the launch. “In a world grappling with uncertainty, understanding migration dynamics is essential for informed decision-making and effective policy responses, and the World Migration Report advances this understanding by shedding light on longstanding trends and emerging challenges.” Of that 831 billion in remittances, 647 billion were sent by migrants to low and middle-income countries. These remittances can constitute a significant portion of those countries' GDPs, and globally, these remittances now surpass foreign direct investment in those countries. Highlighting key findings, the report reveals that while international migration continues to drive human development, challenges persist. Read more: UK Minister for Indo-Pacific arrives Tuesday on two-day visit With an estimated 281 million international migrants worldwide, the number of displaced individuals due to conflict, violence, disaster, and other reasons has surged to the highest levels in modern-day records, reaching 117 million, underscoring the urgency of addressing displacement crises. Migration, an intrinsic part of human history, is often overshadowed by sensationalized narratives. However, the reality is far more nuanced than what captures headlines. Most migration is regular, safe, and regionally focused, directly linked to opportunities and livelihoods. Yet, misinformation and politicization have clouded public discourse, necessitating a clear and accurate portrayal of migration dynamics. IOM’s World Migration Report, with its innovative digital tools and comprehensive analysis, aims to help dispel myths, provide critical insights, and inspire meaningful action in addressing the challenges and opportunities of human mobility. This launch is part of IOM Director General’s first three-day visit to Bangladesh. Chief of IOM Mission in Bangladesh Abdusattor Esoev, former Foreign Secretary Shahidul Haque, senior government officials and diplomats stationed in Dhaka were present at the report launching ceremony. Read more: UK Minister for Indo-Pacific in Dhaka to ‘strengthen’ economic, security, migration partnership with Bangladesh

The government plans to substantially increase public investments across key sectors such as road, rail, bridge, shipping, civil aviation, and telecommunications. These initiatives are strategically aimed at transforming Bangladesh into an upper middle-income country by 2031 and a smart developed country by 2041. According to the 'Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26)', the government plans to allocate Tk 963.9 billion in the fiscal year 2024-25, escalating to Tk 1060.3 billion in 2025-26. This increase follows an investment of Tk 876.3 billion for the current fiscal year, emphasising a significant boost in funding for various development programs. The policy document highlights the critical role of an integrated and cost-effective transport and communication system in fostering economic growth, enhancing trade, and ensuring social integration. It states that an efficient transport and logistics system is essential for smooth supply chain management and to effectively compete on a global scale. Transport strike called off after 12 hrs in Ctg Specifically, the Road Transport and Highways Division is implementing projects to establish an advanced and sustainable road transport system, including the construction of multi-lane highways, elevated expressways, and new bridges.  These efforts are complemented by plans to widen 1100 km of highways, repair and maintain 1250 km, and rebuild 450 km of highways, along with 7300 meters of bridges and culverts. In Dhaka city, the government is focusing on reducing traffic congestion by advancing the metro rail lines, a move poised to significantly improve urban mobility. The railway sector is also undergoing transformation under a 30-year master plan aimed at making it a dependable, affordable, modern, and people-friendly mode of transport. Initiatives include connecting every district with a railway network, upgrading tracks, and modernising the signaling system. By FY 2025-26, the government aims to construct 275 km of new railway track and reconstruct 210 km of existing lines. The document also outlines ambitious plans for the water transport system, noting its importance in the integrated multi-modal transport framework. The Ministry of Shipping is executing extensive programs for the enhancement of inland waterways, seaports, and land ports, along with significant dredging efforts to maintain river navigability. Extortion in transport sector will never stop completely: Quader Amidst rising demand for air travel, both domestically and internationally, the Ministry of Civil Aviation and Tourism is undertaking projects to expand passenger handling capacities and enhance facilities at airports. These upgrades are part of a broader strategy to position Bangladesh as a regional hub for international passenger transport. These comprehensive plans not only aim to modernize Bangladesh's infrastructure but also serve as a cornerstone for the country's ambitious economic development goals.

Director of the South Asia Institute at Wilson Center in Washington, D.C. Michael Kugelman has said in South Asia and the broader Global South, Bangladesh Awami League President Sheikh Hasina's return will be welcomed. He cited her focus on economic growth, connectivity, nonalignment, climate change, global peacekeeping and hosting of Rohingyas. Also read: Bad blood will linger between Dhaka and the West but Hasina’s return will be viewed more positively in the region: South Asia policy analyst Kugelman "Easy to overlook this with so much focus on what the West thinks," he said. Within hours after Bangladesh’s election result was declared, the Indian, Russian, and Chinese envoys all extended their congratulations to Prime Minister Sheikh Hasina, Kugelman said. Also read: ‘US wanted to act proactively to send tough message’: Kugelman "If anyone is surprised by this, there’s no reason to be. They all (not just India) have long viewed her as a key partner," he shared on X, formerly known as Twitter. "And guess what other country’s ambassador has now congratulated Hasina? Pakistan. Perhaps the only country in South Asia that might be a bit uncomfortable about her return. But still willing to accept the election result," Kugelman said in a separate message posted from his verified X account. Also read: AL retains significant level of support because of success stories, says South Asia policy analyst Michael Kugelman

Danish Minister for Development Cooperation and Global Climate Policy Dan Jannik Jørgensen on Wednesday signed an agreement in Bagerhat to extend the Local Government Initiative on Climate Change (LoGIC) project for two years from June 2023 to June 2025. Danish Ambassador to Bangladesh Winnie Estrup Petersen and UNDP Resident Representative Stefan Liller were present. With a funding support of 40m Danish Kroner (USD 5.6m approximately) from the Danish government, the extension phase of LoGIC will be implemented in two districts of the Chattogram Hill Tracts (CHT) – namely Rangamati and Bandarban. Also Read: Bangladesh, Denmark launch action plan to strengthen partnership on green transition The purpose is to strengthen communities’ resilience to the impact of climate change through locally-led adaptation strategies. The dignitaries from Denmark, along with representatives of UNDP and UNCDF, visited Mongla in Bagerhat to observe and understand the impact of climate change and how both agencies are building climate resilience through innovative and locally-led solutions. Minister Jannik Jørgensen, during his visit to climate-affected areas in Mongla took note of the adaptive measures taken by the affected communities to strengthen their resilience against climate change. Also Read: Bangladesh, Denmark joint action plan for 2023-2028 to be launched soon  He said Denmark values the strong and longstanding bilateral relation with Bangladesh. "Recognising that Bangladesh is at the forefront of the climate crisis, Denmark is committed to supporting Bangladesh’s aspirations for climate-oriented economic growth and green transition in the years of graduation from the group of LDCs. Denmark is also one of the few development partners that have engaged long term in the CHT, most recently with a focus on climate resilience of communities.” Dan Jannik Jørgensen added. Also Read: Bangladesh, Denmark sign Tk 474 crore framework agreement to implement dev programme Winnie Estrup Petersen, Danish Ambassador to Bangladesh, said, “Given the significant climate vulnerability of the region, Denmark will continue to support UNDP and UNCDF in the CHT through LoGIC. This model strengthens the national fiscal transfer systems for the channelling of climate adaptation funding to local governments and ensures institutional and financial sustainability.” Bangladesh is often cited as one of the world’s most climate-vulnerable nations, and it is the poor who are disproportionately affected, said Stefan Liller, Resident Representative of UNDP Bangladesh. Also Read: Danish Minister Dan Jørgensen in Dhaka "As such, we must focus on increasing communities' resilience to the impact of climate change. To this end, we here at UNDP, Bangladesh continue to work on mainstreaming climate change into local level planning and financing processes by blending scientific knowledge with local expertise to identify climate risks and support effective adaptation measures,” Stefan Liller mentioned. In 2016, the government of Bangladesh (GoB), the European Union (EU), and the Government of Sweden, together with UNDP and UNCDF, jointly designed the ‘Local Government Initiative on Climate Change’ (LoGIC) project to develop a mechanism to deliver climate finance to the most vulnerable households and local government institutions for building resilience and promoting local action on climate change adaptation at scale.  

The proposed budget of Bangladesh in the fiscal year 2023-24 has set an estimated Gross Domestic Product (GPD) worth of 50.06 lakh crore with a 7.5 percent annual growth. The inflation target was set to 6 percent which is now 9.28 percent in the proposed budget. The 7.5 percent growth projection could be deemed as ambitious given the uncertainties in the global economy and various other challenges at home. Finance Minister AHM Mustafa Kamal explained his position on why he is expecting higher growth this time despite the economic pressures. Read more: Finance Minister unveils Tk 761,785 crore national budget “We expect to return to a higher growth trajectory and achieve a 7.5 percent GDP growth, by way of investing in the productive sectors and stimulating productivity and domestic demand,” he said. Kamal focused on investment in the 100 special economic zones and completing ongoing mega-projects to achieve the GDP target. In FY19, Bangladesh achieved a record 8.15 percent GDP growth. Then came the pandemic. The finance minister set a growth target of 8.2 percent in FY20, but the actual growth achieved was 3.45 percent, the lowest in several decades. The growth rate increased to 6.94 percent in FY21 after recovering from pandemic effects. The GDP growth further increased to 7.1 percent in FY22. Read more: Budget FY23-24: Focus should be on tackling macroeconomic challenges, says Dr Atiur Rahman  

US Ambassador to Bangladesh Peter Haas today (March 21, 2023) said his country is committed to working with Bangladesh to eliminate corruption – enabling Bangladeshis to enjoy lives of dignity and drawing more international trade and foreign investment. “If Bangladesh can assure citizens and investors that corruption is less prevalent here than in other markets, it will attract more investment and help the country continue on the path of economic growth,” he said.     Ambassador Haas made the remarks at an event, titled “Call to Action Against Corruption Summit”, at a Dhaka hotel, organized by Centre for Governance Studies (CGS) and Center for International Private Enterprises. The US ambassador said corruption exists, to one degree or another, in every corner of the globe, and they are all too familiar with what it looks like.  Read More: Excited to see more Bangladeshi students are choosing US: Peter Haas “It’s trying to get a driver’s license and having to pay ‘speed money’.  It’s knowing that if you want a passport appointment, it’s going to cost you extra.  It’s needing to bribe the right official to register a plot of land you just purchased,” Haas said. Corruption is a parasite that feeds on the resources of a society and drains it of its strength and can devastate every level of business and government, he said.   “Sadly, some notorious scandals have occurred in my own country,” said the US ambassador. Yet, he said, exposing corruption and holding perpetrators accountable have catalyzed economic growth in the United States and elsewhere.   Read More: New US Ambassador Peter Haas arrives in Dhaka “When societies exert such efforts, they prosper. I am confident this can be the case here in Bangladesh, as well, and the United States is eager to help,” he said.    Under President Biden, the US government has established the fight against corruption as a core national security interest, he added.   “We support initiatives that help Bangladeshi businesses meet international standards and regulations, making them more competitive in the global market,” said the envoy.   “By promoting ethical business practices, we can create a more level playing field for businesses of all sizes and encourage more foreign investment,” he added. Read More: Peter Haas nominated next US Ambassador to Bangladesh The US Agency for International Development, USAID, has partnered with Bangladesh’s Registrar of Joint Stock Companies to launch an online registration process for new businesses.   This makes registering new businesses more transparent, faster, and more affordable, Ambassador Haas said. USAID has also worked with the Bangladesh National Board of Revenue to establish authorized economic operators. This endeavour empowers the private sector, instead of the government, to release shipments at ports, he said.   As a result, Haas said, the process has become more transparent and raised the level of trust between the private sector and the government. Read More: Prevent corruption in every sector: President to ACC The US Department of Commerce’s Commercial Law Development Program (CLDP) works with the Private Public Partnership Authority Bangladesh to conduct workshops to improve the legal and business environment of Bangladesh.   CLDP also works with Dhaka North City Corporation (DNCC) to improve municipal governance by improving fiscal transparency. Under this program, CLDP invited over a DNCC delegation, including the mayor, to Miami in January.   The US Department of Justice trains investigators and attorneys in the Anti-Corruption Commission on topics such as how to investigate and prosecute money laundering, how to use electronic evidence, and how to investigate financial crimes.   “It has also fostered a relationship between Bangladesh’s Financial Intelligence Unit and the International Anti-Corruption Coordination Centre,” Haas said.   Read More: All-pervasive corruption by AL destroys economy: Fakhrul “The United States is committed to holding corrupt officials accountable for their actions. This can take various forms,” said the ambassador.   Just as US laws hold American citizens and businesses accountable for corrupt practices, there are US laws and penalties that apply to non-citizens who use corrupt practices in violation of the laws. “What can the Bangladeshi government do to reduce corruption?  It could think about ways to empower institutions to tackle corruption and promote transparency and accountability in governance and business,” he said.   One idea is to reduce the amount of cash that officials handle by replacing cash-based financial transactions with the government with online transactions, Haas said.   Read More: Power tariff being raised frequently to manage corruption: Fakhrul “Citizens could pay bills, fines, and taxes electronically. Such a process would minimize the opportunity for bureaucrats to overcharge or misplace public funds into their own pockets,” he said.   Haas recognized the important role a vibrant civil society and free media play in investigating and exposing instances of corruption. Bangladesh has many advantages that potential investors would find attractive, he said. “But as American business leaders tell me: multi-national firms have options on where they invest.”   They will choose whichever country has the lowest levels of corruption, the fewest bureaucratic obstacles, the greatest respect for rule of law, and the best logistics infrastructure for their business, he added.   Read More: BNP's complaints about corruption 'laughable': Hasan Mahmud

Finance Minister AHM Mustafa Kamal on Sunday praised the World Bank for its continued support towards Bangladesh’s development. He said Bangladesh's growth has increased by 74 times since 1972, and the World Bank had a role to play behind it. “After independence, the country's GDP growth was only $6.3 billion, which has now increased to $465 billion,” he said. Kamal said this while speaking as the chief guest as the World Bank and Bangladesh celebrated its 50 years of partnership at the Bangabandhu International Conference Center (BICC) in the capital on Sunday. Also Read: WB cuts Bangladesh growth target by 0.9 percent to 5.2 percent The Finance Minister also said that Bangladesh is currently the 35th largest economy, and the poverty rate has come down to 20 percent, per capita income increased to $2,824 and average life expectancy increased to 73 years. Also read: World Bank managing director to arrive in Dhaka Saturday Highlighting the future plans, the Finance Minister said, “Our next target will be to turn Bangladesh into an upper-middle income country by 2031, and a Smart Developed Bangladesh in 2041.” World Bank Managing Director (Operation) Axel van Trotsenbur, World Bank South Asian Region Vice President Martin Riser, Economic Relations Division Secretary Sharifa Khan, and World Bank Country Director for Bangladesh and Bhutan Abdoulaye Seck, among others, spoke at the function.    

The World Bank on Wednesday cut Bangladesh's economic growth (gross domestic product -GDP) forecast for the 2022-23 fiscal year further by 0.9 percent to 5.2 percent, due to a combination of factors including  elevated inflation, energy shortages and tightening of the monetary policy. The GDP growth has been predicted in the World Bank's 'Global Economic Prospects report released on Tuesday night. The forecast is down from 7.2 percent growth in the previous year. The government has set a target of 7.5 percent GDP growth in the current financial year. The World Bank said that the growth of Bangladesh may increase slightly to 6.2 percent in the next financial year. Read more: Bangladesh wants low-interest loan from World Bank amid economic woes According to the report, the economy of Bangladesh is being affected due to the global context. “Bangladesh’s economy is affected by the global situation and the sharp increase in fuel prices in the international market,” it said. As a result, there has been a disruption in power supply to industries and households. Industrial production has been disrupted. The government had to do load-shedding to deal with the situation. Apart from this, buying of cars has been stopped as well as luxury goods have been discouraged, the World Bank report said. Earlier, the Asian Development Bank (ADB) predicted a 6.6 percent GDP growth in Bangladesh in the current fiscal year. The ADB's growth forecast was based largely on a slowdown in domestic consumption demand, a decline in exports and remittances, and a slowdown in the global economy. Read more: Bangladesh wants open, transparent relationship with World Bank: PM

The government of Bangladesh has projected to upgrade total investment in the country to 33.6 percent of the total GDP on a mid-term basis (in the 2024-25 fiscal year) aiming to overturn the economic shock from the COVID-19 pandemic and the Russia-Ukraine war. In this investment, the private sector will contribute 26.65 percent of the GDP while the public sector will contribute 7.0 percent. According to an official document, to attain the gradual acceleration of the GDP, private investment expansion is necessary along with public investment. The estimated investment target for 2023-24 fiscal year is 32.8 percent with 25.91 percent from the private sector and 6.9 percent from the public sector. Read more: Lack of financing, policy support causes of weak startup growth in Bangladesh: Speakers For the running 2022-23 fiscal year, the investment target is 31.5 percent with the private sector contributing 24.81 percent and the public sector adding 6.7 percent. The estimated GDP target for the current 2022-23 fiscal year is 7.5 percent while the target for 2023-24 and 2024-25 is 7.8 percent and 8.0 percent respectively. The document stated that the GDP of the last 2021-22 fiscal year was 7.25 percent while in 2020-21 it was 6.94 percent. The growth in agriculture, industry and service sectors have been estimated at 5.0 percent, 8.8 percent and 7.9 percent respectively for the 2024-25 fiscal year. Read more: Bangladesh's strong growth could be at risk without urgent climate action: World Bank The official document said that About 7-8 percent real GDP growth is targeted over the medium term based on the assumptions of the gradual recovery of the world economy from the impacts of the COVID-19 pandemic and the early resolution of the Russia-Ukraine conflict. The document put emphasis on private investment, saying that it needs to be boosted along with public investment to increase capital accumulation. Total investment in fiscal 2020-21 stands at 31.0 percent of the GDP where the contributions of private and public sectors are 23.7 percent and 7.3 percent respectively. “But this level of investment is not adequate to achieve around 8.0 percent growth over the medium term,” the document said. Read more: Tier-2 cities like Gazipur, Narayanganj must promote urban growth outside Dhaka: World Bank It also mentioned that public investment could not be increased to an expected level due to the lack of capacity in implementing the annual development programme. Recognising this, the document stated the government has taken steps to bring about some structural changes at both project design and implementation levels. It mentioned that a potentially huge global supply shock that may reduce growth and push up inflation is affecting the post-COVID-19 recovery. “Russia’s invasion of Ukraine and the economic sanctions on Russia that followed put global energy supplies at risk,” it said. Read More: More development projects planned to support trade, investment The document said that Russia supplies around 10 percent of the world’s energy, including 17 percent of its natural gas and 12 percent of its oil. The jump in oil and gas prices will add to industry costs and reduce consumers’ real income, it added, saying that record-high inflation is currently evident, which also affects Bangladesh. The total investment in 2018-19 fiscal year was 31.6 percent of the GDP where the share of private and public sector were 23.5 percent and 8 percent respectively. The investment in 2019-20 fiscal year was 20.8 percent of the GDP (private sector 12.7 percent and public sector 8.1 percent). Read More: “Bangladesh can be the right place for investment from Brunei” "But to attain 8 percent GDP in the mid-term basis” such investment is not adequate, it said. The document mentioned that the government has taken various reforms measures like simplification of the fund release process for accelerating the rate of ADP implementation. It mentioned that the overall agriculture sector, especially foodgrain, vegetables, livestock and forest resources was less affected due to coronavirus. It said that disbursement of agriculture loans played an important role in the satisfactory growth of the agriculture sector in Bangladesh. Read More: Shares vs Bonds: What is the Ideal Investment Opportunity

Beset with Sri Lanka's economic crisis, Pakistan's catastrophic floods, a global slowdown, and the impacts of the war in Ukraine, South Asia faces an unprecedented combination of shocks on top of the lingering scars of the Covid, the World Bank said in its twice-a-year update. Released Thursday, the latest "South Asia Economic Focus, Coping with Shocks: Migration and the Road to Resilience," projects regional growth to average 5.8 percent this year – a downward revision of 1 percentage point from the forecast made in June. This follows the growth of 7.8 percent in 2021 when most countries were rebounding from the pandemic slump. While economic distress is weighing down all South Asian countries, some are coping better than others.  Exports and the services sector in India, the region's largest economy, have recovered more strongly than the world average while its ample foreign reserves served as a buffer to external shocks.  The return of tourism is helping to drive growth in the Maldives, and to a lesser extent in Nepal – both of which have dynamic services sectors.  The combined effects of Covid and the record-high commodity prices due to the war in Ukraine took a heavier toll on Sri Lanka, exacerbating its debt woes and depleting foreign reserves. Plunged into its worst-ever economic crisis, Sri Lanka's real GDP is expected to fall by 9.2 percent this year and a further 4.2 percent in 2023.   Read: Tier-2 cities like Gazipur, Narayanganj must promote urban growth outside Dhaka: World Bank High commodity prices also worsened Pakistan's external imbalances, bringing down its reserves. The country's outlook remains subject to significant uncertainty after devastating climate-change-fueled floods submerged one-third of the country this year. "Pandemics, sudden swings in global liquidity and commodity prices, and extreme weather disasters were once tail-end risks. But all three have arrived in rapid succession over the past two years and are testing South Asia's economies," Martin Raiser, World Bank Vice-President for South Asia said.  "In the face of these shocks, countries need to build stronger fiscal and monetary buffers, and reorient scarce resources towards strengthening resilience to protect their people." Inflation in South Asia, caused by elevated global food and energy prices and trade restrictions that worsened food insecurity in the region, is expected to rise to 9.2 percent this year before gradually subsiding. The resulting squeeze on real income is severe, particularly for the region's poor who spend a large share of their income on food. South Asia's migrant workers, many of whom are employed in the informal sector, were disproportionately affected when restrictions on movement were imposed during Covid. However, the later phase of the pandemic has highlighted the crucial role migration can play in facilitating recovery. Survey data from the report suggests that in late 2021 and early 2022, migration flows are associated with movement from areas hit hard by the pandemic to those that were not, thus helping equilibrate the demand and supply of labour in the aftermath of the Covid shock. Read: Without reforms, Bangladesh’s GDP could fall below 4% by 2035: World Bank study "Labour mobility across and within countries enables economic development by allowing people to move to locations where they are more productive. It also helps adjust to shocks such as climate events to which South Asia's rural poor are particularly vulnerable," Hans Timmer, World Bank chief economist for South Asia, said. "Removing restrictions to labour mobility is vital to the region's resilience and its long-term development."