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Bangladesh
>> Regional Overview >> Bangladesh Overview
Previous Years' Activities
2002, 2001, 2000, 1999, 1998, 1997
Last updated: 38
THE DEVELOPMENT CHALLENGE: Key U.S. national interests in Bangladesh include encouraging stable democratic governance and respect for human rights, promoting market-oriented growth and economic prosperity to help raise living standards and reduce the large bilateral trade imbalance, and advancing national security. USAID’s program also serves U.S. global interests in stabilizing world population, eliminating hunger and food insecurity, protecting human health, promoting environmentally responsible growth and providing humanitarian assistance in times of disaster.
While Bangladesh is recognized for its progress in family planning, agriculture, food security, girls’ education, rural electrification and disaster response, the country remains one of the poorest, most populous and disaster-prone in the world. Bangladesh, a moderate Islamic democracy, supports the international coalition against terrorism.
Four out of 10 Bangladeshis live in poverty; half the country’s children are malnourished and 61% are illiterate. The annual gross national product (GNP) per capita is $360. The country’s endowments include its human resource base, rich agricultural land, relatively abundant water and—more recently discovered—substantial reserves of natural gas. Nevertheless, a set of immediate and longer-term constraints must be addressed for more rapid improvement in incomes and living standards for Bangladesh’s population.
The labor services of Bangladesh’s people, whether employed in garment factories or as guest workers abroad, are the country’s main export. The recent global economic slowdown has severely affected export earnings, exacerbating an already high fiscal deficit and contributing to a precarious balance-of-payments situation. Moreover, sustainable poverty reduction will only be realized with improvements to public health and education systems, and with a vibrant, diversified job-creating economy.
Public health shortfalls encompass not only basic maternal and child healthcare, but also newer threats of HIV/AIDS and groundwater arsenic contamination. Even with continued reductions in fertility rates, the population will surpass 200 million in the next 25 years. The weak education system at all levels places limits on skills acquisition for the work force. Economic growth rates over the last decade have been insufficient to create the number of jobs and incomes that, in turn, can underwrite improved education and basic health services for Bangladesh’s 133 million people.
At present, agriculture contributes only 25% of gross domestic product (GDP) but must absorb 60% of the labor force. Bangladesh must diversify and upgrade its productive base and increase trade in a way that carefully manages its resource endowments. Recently discovered rich natural gas reserves are not yet exploited and many rural zones do not have access to electricity. Remaining wetlands and forest reserves are under intense and increasing pressure.
Both environmental and economic pressures sow the seeds of potential conflict, challenging political systems and stability. Bangladesh is internationally recognized for holding the most free and fair elections in its history in October 2001. The country must now consolidate key national and local democratic structures and tackle urgent public administration issues, particularly corruption. Despite impressive strides in opening education to women relative to its neighbors, there is much work yet ahead, especially to bolster protection of human rights in issues such as trafficking in humans. In overcoming these daunting challenges, Bangladesh will elevate its influence within the Islamic world as a voice for moderation, and as a positive force for peace and stability in South Asia.
THE USAID PROGRAM: USAID plans to spend $61,820,000 in DA, $3,000,000 in ESF, and $19,176,000 in PL. 480 funds in FY 2002. USAID is requesting $57,220,000 in DA, $7,000,000 in ESF, and $45,082,000 in P.L. 480 funds in FY 2003. USAID’s health objective is to further reduce population growth and fertility while continuing to improve children’s health and to stop the spread of infectious diseases, including HIV/AIDS. The small enterprise/agribusiness objective seeks to reduce poverty by encouraging more broad-based economic growth, expanding the formal economy through agribusiness and small business development, increasing the role of the private sector, and promoting higher value exports. Important regional and national environmental problems are addressed under the environmental objective to improve the management of water resources and conservation of tropical forests. USAID’s energy objective supports privatization and efficient development of Bangladesh’s energy sector. With the food security and disaster preparedness objective, USAID helps to ensure that the ultra-poor can benefit from economic growth. USAID pursues its democracy and governance objective to build internal demand for good governance by concentrating on local government, parliamentary efficacy and human rights, and by emphasizing, in particular, trafficking and abuses against women and children. New initiatives planned for FY 2002 will help expand Bangladesh’s role in the global economy through improvements in basic education, information technology and enhanced enterprise development assistance. Additional FY 2002 economic support funds (ESF) resources will support new programs to provide key analytical information concerning arsenic contamination of groundwater, and to help jumpstart privatization of the power sector. New programs planned for FY 2003 include a labor initiative to protect the rights of female workers, additional technical assistance in the financial and energy sectors with ESF resources, and enhanced assistance in forestry and wetland conservation with development assistance (DA) resources.
ONGOING PROGRAMS FOR WHICH NO FY 2002 OR FY 2003 FUNDING IS REQUESTED: The USAID program in Bangladesh includes the following objective for which USAID is not requesting new funds but is continuing to spend funds previously appropriated.
Number: Title: Last Notified: Planned Completion: 388-003 Broadened Participation in Local Congressional Decision-Making And More Equitable Justice FY 01 CBJ, p. 34 FY 2002 OTHER PROGRAM ELEMENTS: Support from the Global Health Bureau is integral to implementing health activities, and providing key support in contraceptive procurement. A Democracy, Conflict and Humanitarian Assistance Bureau matching grant contributes to child survival in rural areas. A two-year agreement with the U.S. Department of Energy provides analytical support to energy sector development through the U.S. Geological Survey and the Minerals and Mining Service of the Department of the Interior. Participation in the South Asian Regional Initiative (SARI) includes SARI/Energy training and technical assistance to promote regional energy cooperation and SARI/Equity to prevent the trafficking of women and children. P.L. 480 resources support a range of development and disaster-related activities for the poor. With monetized P.L. 480 Title II food aid resources, USAID manages local currency development projects that complement program dollar financed programs, including projects in child labor and research in wheat and horticulture.
OTHER DONORS: The five largest donors to Bangladesh are the World Bank, the Asian Development Bank, Japan, the European Union and USAID. USAID coordinates with multilateral banks in agriculture, water resources, energy, and in health. Multilateral cooperation includes United Nations Family Planning Agency and United Nations Children’s Fund (population, health, education, and children’s rights); the International Labor Organization (child labor); the World Food Program (food security); and United Nations Development Program (democracy and disaster). Bilateral donors include Japan (energy, agriculture, rural development, health, and disaster relief); the European Commission (poverty reduction, food security, health and education); United Kingdom (enterprise development, fisheries, education, democracy and health); Germany and Switzerland (enterprise development); the Netherlands (water resources); Norway (energy and education); Canada (energy); and Denmark (poverty reduction, local government and private sector support).
Program Data Sheets
- 388-001 Fertility Reduced and Family Health Improved
- 388-005 Growth of Agribusiness and Small Business
- 388-006 Improved Management of Open Water and Tropical Forest Resources
- 388-007 Improved Performance of the Energy Sector
- 388-008 Improved Food Security for Vulnerable Groups
- 388-009 Strengthened Institutions of Democracy
Country Background Information Resources
CIA Factbook
Library of CongressNational Geographic Country Maps
State Dept. Country Information
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Last Updated on: June 10, 2002 |
