Premium Essay

Bangladesh Economic Update

In: Business and Management

Submitted By joy13
Words 6335
Pages 26
Bangladesh Economic Update Bangladesh Economic Update Capital Market Capital Market
October 2011 October 2011

Bangladesh Economic Update Volume 2, No. 9, October 2011

Acknowledgement: Bangladesh Economic Update is an output of the Economic Policy Unit of the Unnayan Onneshan, a multidisciplinary research centre based in Dhaka, Bangladesh. The report is prepared by a team, under the guidance of Rashed Al Mahmud Titumir. The team comprises Md. Aslam Hossain and A. Z. M. Saleh. The report is an output of the programme titled Enhancing the responsiveness of the government to address exclusion and inequality. The programme has been supported from a grant of Christian Aid.

© Copyright: Unnayan Onneshan-The Innovators The content of this publication may be reproduced for non-commercial purposes with proper citation (please send output to the address mentioned below). Any other form of reproduction, storage in a retrieval system or transmission by any means for commercial purposes, requires permission from the Unnayan Onneshan-The Innovators.

For orders and request please contact: Unnayan Onneshan - The Innovators 16/2, Indira Road, Farmgate Dhaka-1215, Bangladesh Tell: + (880-2) 8158274, 9110636 Fax: + (880-2) 8159135 E-mail: info@unnayan.org Web: www.unnayan.org
Bangladesh Economic Update, October 2011 2|P a g e

SUMMARY This issue of Bangladesh Economic Update discusses the continuous fall in the capital market of Bangladesh. Continuous decrease in the capital market has not only destabilised the entire capital market but also has dragged out a huge number of small investors from the market leaving behind their investments. The report is an assessment of the previous and recent downward trend in the capital market along with the initiatives taken by the government to address the downturn of the market. An analysis of capital market depends on the…...

Similar Documents

Premium Essay

The Economic and Social Benefits of Mobile Services in Bangladesh

...The Economic and Social Benefits of Mobile Services in Bangladesh A case study for the GSM Association Barney Lane Susan Sweet David Lewin Josie Sephton Ioanna Petini April 2006 LEGAL NOTICE: Neither the GSM Association nor their Members or Associate Members are responsible for the use that might be made of this publication. The views expressed in this publication are the sole responsibility of the author(s) and do not necessarily reflect the views of the GSM Association, their Members or Associate Members The Economic and Social Benefits of Mobile Services in Bangladesh 1 Executive Summary The GSM Association commissioned Ovum to conduct a study into the economic and social benefits of mobile services in Bangladesh. We were asked to examine whether there were any policy barriers that may prevent the full extent of any benefits of mobile services from being realised. In the event that policy and legislative barriers were found, we were asked to identify recommendations for change. In recent years, the mobile industry in Bangladesh has developed at an extraordinary rate. Today there are approximately ten million mobile customers and coverage extends to 90% of the population. With a population of 44 million (2005 figures), Bangladesh is the seventh most populous country in the world. Our key findings from the study are as follows: • • • • • • • • Almost a quarter of a million Bangladeshi depend on the mobile industry, directly and indirectly. Mobile......

Words: 18137 - Pages: 73

Premium Essay

The Impact of Vat on the Economic Growth of Bangladesh

...study * Salient features of Bangladesh’s current tax system * Growth trends and revenue structure of Bangladesh * Contribution of direct and indirect taxes to revenue * Reasons for introducing vat in Bangladesh * Ratio of VAT to Revenue & VAT to Tax * Revenue Structure during Pre and Post VAT Regime * VAT Rates in Selected Countries * VAT Productivity in Selected Countries * Some Important Features of VAT in Bangladesh * Tax Base for VAT * Arguments For VAT * Arguments against VAT * Reforms in VAT: Current Initiatives Introduction: Value Added Tax (VAT) is imposed on value added by a manufacturer of a firm or distributors. Value added tax means a tax on the amount by which the value of an article has been increased at each stage of production. It is a multistage consumption tax imposed on goods and services, which is collected at every stage of production and distribution rather than at the retail stage alone. Objectives of the Study: We can gain knowledge about the tax system (especially VAT) of Bangladesh by studying this topic. As following aspects of tax we can learn from this study: 1. To present an overview of tax system of Bangladesh. 2. To evaluate Govt. Performance in collecting revenue. 3. To identify the effect of the tax system (especially VAT) to economic development of Bangladesh. 4. To identify the problems and weaknesses of collecting revenue through VAT. Salient Features of......

Words: 1866 - Pages: 8

Premium Essay

Economic Condition Analysis of Bangladesh

...INTRODUCTION Bangladesh, one of the least developed countries, undergoes numerous economical dilemmas such as shortage in power supply, poverty, lack of skilled labors and proper infrastructure, high unemployment rate, low standard of living, continuous disequilibria in the economy, defective administrative and inappropriate tax structure. However, this country has a good prospect of doing better because of having huge natural and other resources which fascinated many investors to invest in Bangladesh. In spite of going through all these hardships and troubles, this country is trying to overcome these lacking through the development of different macro aggregates. The macro aggregates that affect the development of the economy of Bangladesh are National Income, Inflation, Exchange Rate, Export, Import, Remittance, Money Supply and Government Expenditure. For this research paper, four macro aggregates have been selected and then comparison and demonstration have been done about how these four factors influence the economy of Bangladesh in the reference period (April 2013 to June 2013). The four macro aggregates are: 1. Exchange Rate 2. Export 3. Inflation 4. Remittance Among all other indicators, these four would be the most relevant and constructive ones in terms of explaining Bangladesh’s economy. 1.1 OBJECTIVE The term project has the following objectives: * To have extensive knowledge of Exchange Rate, Export, Inflation and......

Words: 2560 - Pages: 11

Premium Essay

Economic Impact in Bangladesh

...and Tools , and Structure. Approach Understanding the dynamics of the organization, how business functions work together, leadership philosophies and skill sets all factor into defining an appropriate approach. Components of the approach can be categorized as building proficiency, leadership support, rewards and incentives (business and personal) and execution. Quality Inputs APPROACH Methods & Tools Forecast Structure Quality Inputs “Junk in, junk out” applies to forecasting and planning. A significantly high level of input accuracy (a measure of precision) and reliability (a measure of consistency) is required to ensure quality output. Organizations should consider a mix of quantitative, qualitative, industry-specific and economic factors such as climate and market conditions. Methods and Tools Before technology assessments can begin, the level of sophistication an organization can reasonably and successfully execute should be determined. If the current method utilizes spreadsheets with internal data, the likelihood of a complex modeling tool being effective is low. This is not surprising. The speed at which forecasting capability develops depends on skill level, aptitude for advanced technology, readiness and availability of industry information such as distributor and point-of-sale data. Structure An effective structure allows for the highest levels of forecast accuracy and easy identification of dependencies among markets and products. Key components in......

Words: 4244 - Pages: 17

Premium Essay

Report on Economic Development in Bangladesh

...been slow. Political turmoil and untamed natural hazards of cyclone and flooding have combined with external economic shocks to persistently derail economic plans. In 1991, with the reinstitution of elected government, a new economic program was initiated that included financial sector reform and liberalization measures to encourage investment, government revenue improvement efforts (realized largely through implementation of a value-added-tax), and tight monetary policy. Income transfer measures, Food-for-Work, and other programs were also implemented to help protect the poorest segments of the population from the transitional effects of structural reform. . he shift from a rural/agro INTRODUCTION The shift from a rural/agro based economy to an urban/industrial economy is an essential part of the process of economic development. Although policymakers in the least developed countries (LDCs) have, at various times, attempted to make agriculture the primary engine of economic growth and employment generation, this approach has not worked, not least because of the contributions of the Green Revolution, which has had the dual effect of increasing agricultural productivity in the LDCs and displacing the rural labor force at the same time. Led by the example of the East Asian economies, most LDCs now accept the need for greater industrialization as the fastest path to economic growth. In particular, countries such as Japan, Taiwan and South Korea have demonstrated that an......

Words: 947 - Pages: 4

Free Essay

Socio Economic Impact of Boro Bazar in Khulna, Bangladesh

...Background: The major dynamic driving forces of cities in developing countries are economic and social forces to change the urban system with the growing demand of population and urbanization. Of course, the problems are different and unique to a particular city based on the city growth pattern, economic and social character. Khulna, the third largest metropolitan city in Bangladesh with 1.2 million populations within 45.6 square kilometres was developed as a medium scale industrial city since 1950s. Previously the city economy was completely established on river-based trade and the city developed around the river port locally named “Boro Bazaar” means big market place. The changing city form gave Boro Bazaar the shape of mixed-use zone rather solely commercial or business zone. Now, as a central economic hub in the city centre, Boro Bazaar needs to be more dynamic to response to the city economy and its growth pattern. For last one decade, Boro Bazaar has faced compact unplanned haphazard development even along the riverside just to meet the demand of rapid urbanization process. Therefore, it has become an urban challenge to revitalize the Boro Bazaar area to make more effective response to the rapid economic growth and to ensure better urban environment for the residents, businesspersons and the employers. Being the main economic hub in the city, Boro Bazaar needs to be more dynamic in......

Words: 1746 - Pages: 7

Premium Essay

Macro Economic Indicators of Bangladesh Economy

...Macro economic indicators of Bangladesh economy Introduction The Bangladesh economy has experienced both macro-economic stability and robust economic growth following the transition to a democratic rule in the early of 1990s. In the backdrop of the deep macro-economic crisis of the late 1980s, a series of stabilization measures were introduced in the Bangladesh economy which largely restored macro-economic stability in the early 1990s. Economic growth in Bangladesh averaged 6.3 percent during financial year (FY) 04-07. The economy has once again proved its resilience in achieving stronger than expected growth despite having to contend with the adverse effects of unfavorable weather conditions in financial year (FY) 04, the subsequent sharp price increase in oil and other essential imported commodities and periods of political unrest and uncertainty. Sustained gross domestic production (GDP) growth coupled with strong growth in exports and remittance has led to a marked improvement in the fiscal and balance of payments position and substantial improvements in the economic fundamentals necessary for macroeconomic stability. However, the rise in the inflation rate and further evidence of income inequality have tempered growth's direct impact on the quality of life. Macro Economic indicators In the past decade, Bangladesh enjoyed a positive growth rate in GDP and other macro economic indicators. As the most densely populated country in the world, Bangladesh is facing......

Words: 3102 - Pages: 13

Premium Essay

Socio-Economic Indicators of Bangladesh

...Socio-Economic Indicators of Bangladesh General Geographical Location/Characteristics Location 200 34' & 260 38' North Latitude 880 01' & 920 41' East Longitude Area (Sq. Km) Standard Time 147570 GMT+6 Hours Rate (%) of Poverty Based on Report on Household Income & Expenditure Survey (HIES)- 2010 [ Based on Cost of Basic Needs (CBN) Method ] Using upper poverty line National Rural Urban Using lower Poverty line National Rural Urban Gross Domestic Product (GDP), 2011-12 (provisional) GDP at Current Price (In billion Tk.) GDP at Constant Price (Base Year = 1995-96, In billion Tk.) GDP Growth at Constant Price (%) Per Capita National Income (In Tk.) Per Capita National Income (In US$ ) Per Capita GDP (In Tk.) Per Capita GDP (In US$) Savings and Investment (Percentage of GDP), 2011-12 (provisional) Life Expectancy (yrs), 2009 Both Sex Male Female Mean Age (yrs) at First Marriage, 2011 Male Female 67.2 66.1 68.7 24.9 18.6 Domestic savings National savings Total investment Public Private Balance of Payments, 2011-12 (In Million US $) Export Earning Import Payments Current Account Balance (Provisional) Overall Balance (Provisional) Foreign Exchange Reserves (As on 30.06.2012) Workers’ Remittances 24288 35516 1630 494 10364 12843 19.4 29.4 25.4 6.3 19.1 9147.8 4093.8 31.5 35.2 21.3 17.6 21.1 7.7 Vital Statistics General Vital Statistics Population (In Million) Population census, 2001 Population census, 2011 Population Growth Rate (Percentage), 2011 Male-Female Ratio, 2011......

Words: 583 - Pages: 3

Premium Essay

Economic Contribution of Women in Bangladesh

...Enterprise (SME) 4. ReadyMade Garment(RMG) 5. BangladeshBank(BB) ABSTRACT: Although women in Bangladesh make a direct and equal contribution to that of men in economical contributions, their productive worth is not acknowledged by this male‐dominated society. Some principal reasons for the lack of recognition include the inferior social and religious status of women, seclusion through systematic segregation, negligible legal and property rights ,sex discrimination in gaining access to economic activities, lack of valuation of women's activities, and absence of government policies regarding women’s development. Male‐dominated Bangladesh society undervalues women's work by paying them less than men with the same workload and even with the same output. Credit is taken over by their male counterparts (husbands). This report explores the contribution of women in Agriculture, SME and RMG sectors that would recognize women's labor and incorporate women incomprehensive development activities throughout Bangladesh. INTRODUCTION: Bangladesh has a population around 140 million (July 2011EST.). About 45% of them are still living below the poverty line. Bangladesh’s Human development index (HDI) is 139 (out of 177), ranking as the lowest in the Asian country list. Although women in Bangladesh make a direct and equal contribution to that of men in ECONOMICS. Some principal reasons for the lack of recognition include the inferior social and religious status of......

Words: 2582 - Pages: 11

Premium Essay

Termpaper on Roll of Capital Market on the Economic Development of Bangladesh

... A Term Paper On “The Role of Capital Market on The Economic Development of Bangladesh” GOVT. SUHRAWARDY COLLEGE, PIROJPUR Department of Accounting Term Paper On “The Role of Capital Market on The Economic Development of Bangladesh” Submitted To: Md. Faruk Hosain Assistant Professor Department of Accounting Govt. Suhrawardy College, Pirojpur Submitted By: Alamgir Hossain Roll No- 9792874 Reg. No-1727384 Session-2010-2011 BBA (Hons) 4th Year Department of Accounting Govt. Suhrawardy College, Pirojpur Date of Submission: February 12, 2014 Letter of Transmittal Date : Md. Faruk Hosain Assistant Professor Govt. Suhrawardy College, Pirojpur Subject: Submission of Term Paper on “The role of capital market on the economic development of Bangladesh”. Sir, As a part of BBA program a term paper is enclosed herewith. The report was prepared on “The role of capital market on the economic development of Bangladesh.” In the course of preparation the report, I tried with the best of my capacity to accommodate as much information and relevant issues as possible and tried to follow the instructions as you have suggested. In the time of preparation the report, relevant documents, data, information were studied and practical knowledge had been gathered. I tried my best to make this report as much informative as possible. I sincerely believe that it will satisfy your requirements. I however sincerely believe that this report will serve the......

Words: 7483 - Pages: 30

Premium Essay

Economic Development of Bangladesh

...Economic Development of Bangladesh Economy of Bangladesh Economic Position in World: The economy of Bangladesh is a rapidly developing market-based economy. Its per capita income in 2010 was est. US$1,700 (adjusted by purchasing power parity). According to the International Monetary Fund, Bangladesh ranked as the 43rd largest economy in the world in 2010 in PPP terms and 57th largest in nominal terms, among the Next Eleven or N-11 of Goldman Sachs and D-8 economies, with a gross domestic product of US$269.3 billion in PPP terms and US$104.9 billion in nominal terms. Growth rate and Economic Sectors: The economy has grown at the rate of 6-7% per annum over the past few years. More than half of the GDP is generated by the service sector; while nearly half of Bangladeshis are employed in the agriculture sector. Other goods produced are textiles, jute, fish, vegetables, fruit, leather and leather goods, ceramics, RMGs. Remittances from Bangladeshis working overseas, mainly in the Middle East, is the major source of foreign exchange earnings; exports of garments and textiles are the other main sources of foreign exchange earnings. Ship building and cane cultivation have become a major force of growth. GDP's rapid growth due to sound financial control and regulations have also contributed to its growth; however, foreign direct investment is yet to rise significantly. Bangladesh has made major strides in its human development index. The land is devoted mainly......

Words: 4845 - Pages: 20

Free Essay

Economic Growth & Poverty Reduction in Bangladesh

...Introduction The positive relationship between economic growth and poverty reduction is not automatic. In Bangladesh, development expenditures have been growing in various proportions in agriculture, rural development, water resources, infrastructure, education and health sector. Each of these sectors impacts growth and poverty reduction differently. Allocation on agriculture, rural development, health, education and social safety net impacts poverty reduction at a higher rate and impacts economic growth too. Investment in infrastructure development, capital intensive industrialization, and some service sectors may boost up economic growth at a higher rate but may not impact poverty reduction at the desired rate. There is no doubt that faster economic growth is associated with faster poverty reduction. Since domestic/national resources fall short of the requirement, development partners play an important role in Bangladesh's development endeavour. In case of Bangladesh, in-spite of some remarkable positive performance against some indicators, aggregate poverty rates still remain high. Thus, it is high time to look forward for other options and means to accelerate economic growth and poverty reduction. Reform is Critical for Growth and Poverty Reduction The fundamental development constraints in Bangladesh are poor governance, corruption, law and order, public service delivery, and effectiveness of public expenditures to improve human development. It is......

Words: 2266 - Pages: 10

Premium Essay

Economic Growth & Poverty Reduction in Bangladesh

...BUS530 MACROECONOMICS ECONOMIC GROWTH & POVERTY REDUCTION IN BANGLADESH Prepared by Aadil Choudhury 112 0322 660 Section 1 INTRODUCTION The relationship between economic growth and poverty reduction is not always automatic. To achieve poverty reduction, robust economic growth is necessary but not sufficient. The financial allocation and source of finance play a crucial role in implementing the development endeavor and achieving macroeconomic objectives like growth, employment, and price stability. Investing in some sectors of the economy may contribute to rapid economic growth while others may contribute to poverty reduction. Again there are some sectors which may contribute to achieving both growth and poverty reduction. BANGLADESH’S CHALLENGES IN ECONOMIC GROWTH & POVERTY REDUCTION Bangladesh has had some success in attaining economic growth and reducing poverty. But many more challenges lie ahead of us which we must face to eradicate poverty and move towards a poverty-free Bangladesh. Challenge of better monetary management The country has opted for following a selective credit control measures with expansionary credit policy to essential sectors and contractionary policies to luxury items. It has been following 'free-float currency' policy which appears to be a mere luxury with both export and import sectors of the country suffering from structural rigidities. Free float of Bangladesh currency along with erosion of dollar vis-a-vis other......

Words: 3948 - Pages: 16

Free Essay

Stock Market Development & Economic Growth in Bangladesh

...of relationship between the stock market development & economic growth in Bangladesh. As a third world country, the economic development of Bangladesh is still dependent on the ups & downs of some macroeconomic as well as capital market factors , like, GDP, real GDP, GDP growth, market capitalization, volatility of stocks, Financial Statement information and other financial factors. This paper has been prepared & presented to have a clear view about contribution of capital market to the economic growth of Bangladesh. So far I know, no analytical study regarding this issue still has not been conducted in Bangladesh. So that I’ve desired to study on this topic in a deeper detail to focus on the relationship of capital market & economic growth from both economic & accounting point of view. I also have focused on how the reporting of the Financial Statements of different institutions according to various local & international standards can have an impact in accelerating the economic advancement in Bangladesh. In assessing the impact of stock market on our country’s economy, I have used some statistical techniques & finance issues as correlation & regression analysis, measurement of cost of capital, index method etc based on the data obtained from the main stock exchange of the country DSE. The study reveals that there is a very close & positive relationship of stock market development of Bangladesh with this country’s economic growth. And also another result of this study that,......

Words: 294 - Pages: 2

Premium Essay

On “Problems Capital Market and Its Potential in Economic Development in Bangladesh”.

... 1 Introduction: Bangladesh capital market is one of the smallest in Asia but the third largest in the south Asia region. It has two full-fledged automated stock exchanges namely Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) and an over-the counter exchange operated by CSE. It also consists of a dedicated regulator, the Securities and Exchange Commission (SEC),since, it implements rules and regulations, monitors their implications to operate and develop the capital market. It consists of Central Depository Bangladesh Limited (CDBL), the only Central Depository in Bangladesh that provides facilities for the settlement of transactions of dematerialized securities in CSE and DSE. 2.1 Functions of capital market: The functioning of an efficient capital market may ensure smooth floatation of funds from the savers to the investors. When banking system cannot meet up the total need for funds to the market economy, capital market stands up to supplement. To put it in a single sentence, we can therefore say that the increased need for funds in the business sector has created an immense need for an effective and efficient capital market. It facilitates an efficient transfer of resources from savers to investors and becomes conduits for channeling investment funds from investors to borrowers. T 2.2 Product of capital market: • Shares, • Debentures, • Mutual funds, • Bonds, • Derivatives, • Future and options. 2.3 ......

Words: 4025 - Pages: 17