Mukti

Bangladesh’s aid dependence

Posted in development, economics, macro by jrahman on November 13, 2012

How often have you heard or read that Bangladesh is highly dependent on foreign aid?  Well, next time you read or hear that, remember this piece.

Over the fold are two charts that show that Bangladesh is not dependent on aid, and anyone who says that without qualifying it with something else has no idea what they are talking about.

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সাতকাহন

Posted in communalism, Dhallywood, economics, foreign policy, India, macro, movies, music, Muslim world, politics, West Asia by jrahman on October 12, 2012

Seven trashes collected by the senses.

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Who’s the best?

Posted in AL, army, BNP, development, economics, history, macro by jrahman on March 11, 2012

Notice (12 March, 0610 BDT): charts have gone funny, and will be updated in the next 48 hours.

Updated (13 March, 1001 BDT): charts have been fixed.

With yet another confrontation looming between Bangladesh’s two major political parties, I thought it would be interesting to see how they compare against each other.  There are, of course, many ways of doing this.  I am going to do this by looking at four indicators: GDP per capita growth, manufacturing output growth, inflation, and foreign aid-to-GDP ratio.

Why these indicators?  Simply because I have good data handy for these metrics.  But they still tell us a good deal.  Growth in GDP per capita is a standard measure of welfare.  Manufacturing growth is associated with strong employment in the ‘modern’ sectors of the economy – by and large a good thing.  Inflation is self-evidently important.  Reliance on foreign aid is clearly something we can do without.  And improvements in these economic indicators, over time and across countries, are highly correlated with decline in poverty and rise in living standards.

Nonetheless, they miss out a lot.  For example, I don’t have up-to-date data on inequality.  Further, these economic indicators don’t tell us anything about governance or civil liberties.  A government might preside over fast growth and rapid fall in infant mortality, but could also gag the media, and be extremely corrupt.  Nor do I have any time series on crime statistics – arguably, maintaining law and order is a government’s first priority.  And I am not even sure how one could quantify foreign policy success or failure.

Therefore, the rankings presented below should be taken with a grain of salt.

I am also going to ignore the governments of the first decade.  While a good old fashioned Mujib-Zia food fight is enjoyed by all, given the impacts of the Liberation War, I don’t think the 1970s is comparable with the subsequent decades.

So the comparison is between six governments – Ershad, first Khaleda, first Hasina, second Khaleda, 1/11 regime, and second Hasina – over the four categories.  In each category, the best performing government gets five points, while the worst one gets zero.  Add all up, and we get the final tally.

The worst government of the past three decades turns out to be, with zero points, the Ershad regime.  This shouldn’t come as surprise to anyone who knows anything about economic history of Bangladesh.  But evidently, few people know anything about economic history, because if I had a cent for everytime I hear ‘things were great under Ershad’, I’d be in the 1%.

And the winners?  Read on.

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