Econ4730researchPaper_Essay - December 1 2008 Professor...

  • Essay
  • 1549031830_ch
  • 19
  • 100% (1) 1 out of 1 people found this document helpful

Info icon This preview shows pages 1–3. Sign up to view the full content.

December 1, 2008 Professor Henry Wan Economics 4730 Bangladesh, Microcredit and Grameen Bank: Implications of the Catching Up Process Background on Bangladesh Bangladesh, geographical origin of microcredit, had an estimated population of 153,546,896 in July 2008. 1 It remains among the most densely populated countries in the world, struggles with a high poverty rate (average real per capita income is $1,311 on a PPP basis) and suffers an inefficiently governed nation. 2 However, per-capita (inflation-adjusted) GDP has more than doubled since 1975, and the poverty rate has fallen by 20% since the early 1990s. The US Central Intelligence Agency reports that Bangladesh’s economy has grown 5-6% over the past few years despite inefficient state-owned enterprises, delays in exploiting natural gas resources, insufficient power supplies, and slow implementation of economic reforms. 3 The IMF reports: “the initial impact of the end of quotas under the Multi-Fiber Arrangement has been positive for Bangladesh because of continuing investment in the ready-made garment sector,” which has experienced annual export growth in excess of around 20%. 4 Although more than half of its GDP is generated through the service sector, nearly two-thirds of Bangladeshis are 1 1 “Bangladesh.” The World Factbook . 4 December 2008. Central Intelligence Agency. 7 December 2008 < ;. 2 2 “World Economic and Financial Surveys: World Economic Outlook Database.” International Monetary Fund . October 2008. International Monetary Fund. 7 December 2008 < ;. 3 3 “Bangladesh.” The World Factbook . 4 4 “Background Note: Bangladesh.” U.S. Department of State . March 2008. Bureau of South and Central Asian Affairs. 7 December 2008 < ;. 1
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

employed in the agriculture sector, with rice as the single-most-important product. Garment exports and remittances from Bangladeshis working overseas, mainly in the Middle East and East Asia, fuel economic growth . Historically, Eastern Bengal—a predominantly Muslim country (83% Muslim, 15% Hindu and 1% other as of 2008)—produced fine muslin and silk fabric before the British period. 5 Their yarns, dyes and cloths were envied by much of the rest of the pre-modern world; for example, the aristocracy of Asia and Europe wore Bengali muslin, silk, and brocade. However, the introduction of machine-made textiles from England in the late eighteenth century made obsolete handloom process on the account of cost and time efficiency. Consequently, cotton growing died out in East Bengal, and the textile industry became dependent on imported yarn. Most people who had been earning their living in the textile industry were forced to rely almost entirely on farming—only the smallest remnants of a once-thriving cottage industry survived.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.
  • Spring '08
  • Economics, Muhammad Yunus, Grameen Bank

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern