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COUNTRY ANALYSIS BANGLADESH
BRIEF OVERVIEW OF BANGLADESH
• Bangladesh is one of the world's most densely populated
countries
• Poverty is deep and widespread, but Bangladesh has in
recent years reduced population growth and improved
health and education.
• Formerly East Pakistan, Bangladesh came into being only
in 1971, when the two parts of Pakistan split after a bitter
war which drew in neighbouring India
• Bangladesh spent 15 years under military rule and,
although democracy was restored in 1990, the
political scene remains volatile.
• Bangladesh is a middle power and a developing
nation. Listed as one of the Next Eleven, its economy
ranks 43rd in terms of nominal gross domestic
product and 29th in terms of purchasing power parity.
• It is one of the largest textile exporters in the world. Its
major trading partners are the European Union, the
United States, China, India, Japan, Malaysia and
Singapore.
PESTLIE analysis
Bangladesh
Political environment in Bangladesh
• Politics of Bangladesh takes place in a framework of a
parliamentary representative democratic republic,
whereby the Prime Minister of Bangladesh is the head of
government, and of a multi-party system.
• Executive power is exercised by the government.
Legislative power is vested in both the government and
parliament. The Constitution of Bangladesh was written
in 1972 and has undergone sixteen amendments.
• The three major parties in Bangladesh are the
Bangladesh Nationalist Party (BNP) and Bangladesh
Awami League and Jatiya Party.
• BNP finds its allies among some Islamist parties like
Jamaat- e-Islami Bangladesh while the Awami League
aligns itself traditionally with leftist and secularist
parties.
• Student politics is particularly strong in Bangladesh, a
legacy from the liberation movement era.
• Bangladesh has made significant progress toward a more
prosperous and pluralistic society since its independence
in 1971. Bangladesh’s economy has grown at 6 percent
annually for more than two decades.
• The United States remains actively engaged in efforts to
strengthen respect for labor rights and improve
workplace safety. Despite significant development
achievements, poverty remains a challenge as do
infrastructure shortcomings, weak governance structures,
and the need for greater investment in human capital.
• Extremist violence also presents a common challenge.
The United States stands shoulder- to-shoulder with
Bangladesh in our effort to defeat extremism.
Economic Environment of Bangladesh
• The economy of Bangladesh has experienced a stable
growth since 1980. Over the past two decades, the
country has recorded an annual average growth rate of
6% of GDP and has reduced the poverty rate by half
• in 2016, 24,8% of the population was considered under
the poverty line, compared to 48,1% in 2000.
• Growth amounted to 7% in 2017 supported by
remittances from nearly 7,5 million Bangladeshi living
abroad (USD 12.85 billion in 2017), garment exports,
increased wages and low inflation.
• Bangladesh also suffers from other challenges:
frequent social strikes, terrorist threats, poor-quality
infrastructure, an under- performing financial system,
public sector inefficiency, inadequate exploitation of
the country's natural resources, limited availability of
capital and population growth (even though it has
slowed down considerably in recent years).
• Bangladesh remains a poor, overpopulated country.
The elimination of poverty is a priority: it represents
almost half of budget expenditure.
Social Environment of Bangladesh
• Bangladesh is noted for the remarkable ethnic and
cultural homogeneity of its population.
• Over 98 percent of its people are Bengalis; the remainder
are Biharis, or non-Bengali Muslims, and indigenous tribal
peoples.
• Bangladeshis are particularly proud of their rich cultural
and linguistic heritage because their independent nation is
partially the result of a powerful movement to uphold and
preserve their language and culture. Bangladeshis identify
themselves closely with Bangla, their national language.
• One of the world's most densely populated nations,
Bangladesh in the 1980s was caught in the vicious
cycle of population expansion and poverty. Although
the rate of growth had declined marginally in recent
years, the rapid expansion of the population
continued to be a tremendous burden on the nation.
• Frequent natural disasters, such as coastal cyclones
and floods, killed thousands, and widespread
malnutrition and poor sanitation resulted in high
mortality rates from a variety of diseases.
Technological Environment
• Dhaka is emerging as a freelance IT and IT-enabled services
outsourcing (ITES) centre and the ICT sector in Bangladesh is poised
for continued expansion.
• According to the International Telecommunication Union (ITU, the
number of internet users has nearly tripled from 6.5 percent of the
population in 2013 to 18.2 percent in 2016 and continues to grow.
• According to the Bangladesh Association of Software and
Information Services (BASIS), around 1500+ software and IT- related
companies have registered in Bangladesh. The size of the ICT
market, excluding telecommunications, is estimated to be worth
$600 million and approximately 250,000 professionals are now
employed in the sector
• Leading sub-sectors - ICT Infrastructure and
Equipment, including telecommunications towers and
related infrastructure; Data Centres and related
equipment and services.
• Opportunities - Mobile Applications; Data and Content
Development; Online Healthcare and Government
Services Solutions; E-commerce Applications and
Solutions.
Legal environment
• Bangladesh's legal system is based on common law, and
its principal source of laws are acts of Parliament.
• The Supreme Court of Bangladesh, including its High
Court and Appellate Divisions, is the high court of the
land. The head of the judiciary is the Chief Justice of
Bangladesh, who sits on the Supreme Court.
• Due to a shortage of judges, the judiciary has a large
backlog. The Bangladesh Judicial Service Commission is
an independent body responsible for judicial
appointments, salaries and discipline.
International environment in Bangladesh -
• The foreign relations share the Bangladeshi government's
policies in its external relations with the international
community. The country pursues a moderate foreign
policy that places heavy reliance on multinational
diplomacy, especially at the United Nations and World
Trade Organization (WTO).
• Since independence in 1971, the country has stressed its
principle of "Friendship towards all, malice towards none"
in dictating its diplomacy.
• As a member of the Non-Aligned Movement, Bangladesh has
tended to not take sides with major powers. Since the end of the
Cold War, the country has pursued better relations with regional
neighbours.
• Bangladesh was admitted to the United Nations in 1974 and was
elected to a Security Council term in 1978–1980 and again for a
2000–02 term.
• In recent years, the relations with Russia also became influential
because of the Russian loan and technical assistance on military
modernisation and the first ever nuclear power plant project of
Bangladesh.
• The bilateral relations of Bangladesh are mainly based on trade
activities. However, with certain countries, the relations expand to
other areas such as military co-operation, cultural exchange etc.
Environmental Environment in Bangladesh
• Current Bangladesh administration seems to be reluctant
about environmental protection but still there are laws in place
in Bangladesh against any attempt to pollute the environment
in unnecessary way.
• The effect of increased human and animal population, as well
as land use in the Himalayan Mountains, have caused soil
erosion, which could have resulted in the extra deposition of
sediments in the Bangladesh watersheds.
• Improper watershed management does lead to sedimentation
in reservoirs and changing patterns of stream flow.
• It is not good time for renewable market because of
decelerated growth. Furthermore, from global
perspective fossil fuel market is not good either. As a
result, one must stay away from energy business in
Bangladesh for time being.
• But environment is everyone’s responsibility and
organization which has to stay must make sure that
environment is protected and efforts must be done to
reduce carbon footprint of business.
Conclusion in terms of
strategy, context
and performance
Strategy
• For current government improvement in labor force
seems to be priority. current administration which they
want to use to perform reduction in unemployment rates
and according to economic indicators it seems that
strategy is working.
• Bangladesh feds want to improve growth of economy
which is still lagging behind.
Context
• Bangladesh service sector is not so good but current
government want to strengthen secondary industry to
help labor force. Bangladesh have labour resources in
sufficient quantities to help in that purpose.
• Recent budget cuts indicate a decrease in spending
which are not useful to Bangladesh citizens directly.
• Regulatory framework is should be well placed in
Bangladesh. Non-formal rules like being aware that racial
discrimination should not be there in workplace and
employee grievances must be addressed are important.
Performance
• Bangladesh even has a lower population growth rate than
Pakistan. So, the per capita income of an average
Bangladeshi is growing at an even faster rate.
• It was its seventh year in a row that its GDP growth had
exceeded 6 percent.
• It is the second largest exporter of textile, and because of
a well established textile industry labour force is utilised.
• The new administration is successful in reducing
unemployment and improving situation of labours.
Final Conclusion
• Bangladesh is actively adapting to present problems by
building protection works and changing agricultural practices.
However, much more needs to be done to cope with future
challenges.
• Social environment makes availability of talented and healthy
workforce feasible. Political environment of Bangladesh is little
chaotic at the moment but it would be wrong to call it unstable
because there are no chances of sudden power change. Legal
environment of country is cumbersome for businesses due to
more regulations but other factors
• Legality of lobbying ease up the difficulty associated with legal
environment. Due to policies of current administration sadly
environmental business environment is not so good and is
chaotic.

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Country analysis of Bangladesh

  • 2. BRIEF OVERVIEW OF BANGLADESH • Bangladesh is one of the world's most densely populated countries • Poverty is deep and widespread, but Bangladesh has in recent years reduced population growth and improved health and education. • Formerly East Pakistan, Bangladesh came into being only in 1971, when the two parts of Pakistan split after a bitter war which drew in neighbouring India
  • 3. • Bangladesh spent 15 years under military rule and, although democracy was restored in 1990, the political scene remains volatile. • Bangladesh is a middle power and a developing nation. Listed as one of the Next Eleven, its economy ranks 43rd in terms of nominal gross domestic product and 29th in terms of purchasing power parity. • It is one of the largest textile exporters in the world. Its major trading partners are the European Union, the United States, China, India, Japan, Malaysia and Singapore.
  • 5. Political environment in Bangladesh • Politics of Bangladesh takes place in a framework of a parliamentary representative democratic republic, whereby the Prime Minister of Bangladesh is the head of government, and of a multi-party system. • Executive power is exercised by the government. Legislative power is vested in both the government and parliament. The Constitution of Bangladesh was written in 1972 and has undergone sixteen amendments.
  • 6. • The three major parties in Bangladesh are the Bangladesh Nationalist Party (BNP) and Bangladesh Awami League and Jatiya Party. • BNP finds its allies among some Islamist parties like Jamaat- e-Islami Bangladesh while the Awami League aligns itself traditionally with leftist and secularist parties. • Student politics is particularly strong in Bangladesh, a legacy from the liberation movement era.
  • 7. • Bangladesh has made significant progress toward a more prosperous and pluralistic society since its independence in 1971. Bangladesh’s economy has grown at 6 percent annually for more than two decades. • The United States remains actively engaged in efforts to strengthen respect for labor rights and improve workplace safety. Despite significant development achievements, poverty remains a challenge as do infrastructure shortcomings, weak governance structures, and the need for greater investment in human capital. • Extremist violence also presents a common challenge. The United States stands shoulder- to-shoulder with Bangladesh in our effort to defeat extremism.
  • 8. Economic Environment of Bangladesh • The economy of Bangladesh has experienced a stable growth since 1980. Over the past two decades, the country has recorded an annual average growth rate of 6% of GDP and has reduced the poverty rate by half • in 2016, 24,8% of the population was considered under the poverty line, compared to 48,1% in 2000. • Growth amounted to 7% in 2017 supported by remittances from nearly 7,5 million Bangladeshi living abroad (USD 12.85 billion in 2017), garment exports, increased wages and low inflation.
  • 9. • Bangladesh also suffers from other challenges: frequent social strikes, terrorist threats, poor-quality infrastructure, an under- performing financial system, public sector inefficiency, inadequate exploitation of the country's natural resources, limited availability of capital and population growth (even though it has slowed down considerably in recent years). • Bangladesh remains a poor, overpopulated country. The elimination of poverty is a priority: it represents almost half of budget expenditure.
  • 10. Social Environment of Bangladesh • Bangladesh is noted for the remarkable ethnic and cultural homogeneity of its population. • Over 98 percent of its people are Bengalis; the remainder are Biharis, or non-Bengali Muslims, and indigenous tribal peoples. • Bangladeshis are particularly proud of their rich cultural and linguistic heritage because their independent nation is partially the result of a powerful movement to uphold and preserve their language and culture. Bangladeshis identify themselves closely with Bangla, their national language.
  • 11. • One of the world's most densely populated nations, Bangladesh in the 1980s was caught in the vicious cycle of population expansion and poverty. Although the rate of growth had declined marginally in recent years, the rapid expansion of the population continued to be a tremendous burden on the nation. • Frequent natural disasters, such as coastal cyclones and floods, killed thousands, and widespread malnutrition and poor sanitation resulted in high mortality rates from a variety of diseases.
  • 12. Technological Environment • Dhaka is emerging as a freelance IT and IT-enabled services outsourcing (ITES) centre and the ICT sector in Bangladesh is poised for continued expansion. • According to the International Telecommunication Union (ITU, the number of internet users has nearly tripled from 6.5 percent of the population in 2013 to 18.2 percent in 2016 and continues to grow. • According to the Bangladesh Association of Software and Information Services (BASIS), around 1500+ software and IT- related companies have registered in Bangladesh. The size of the ICT market, excluding telecommunications, is estimated to be worth $600 million and approximately 250,000 professionals are now employed in the sector
  • 13. • Leading sub-sectors - ICT Infrastructure and Equipment, including telecommunications towers and related infrastructure; Data Centres and related equipment and services. • Opportunities - Mobile Applications; Data and Content Development; Online Healthcare and Government Services Solutions; E-commerce Applications and Solutions.
  • 14. Legal environment • Bangladesh's legal system is based on common law, and its principal source of laws are acts of Parliament. • The Supreme Court of Bangladesh, including its High Court and Appellate Divisions, is the high court of the land. The head of the judiciary is the Chief Justice of Bangladesh, who sits on the Supreme Court. • Due to a shortage of judges, the judiciary has a large backlog. The Bangladesh Judicial Service Commission is an independent body responsible for judicial appointments, salaries and discipline.
  • 15. International environment in Bangladesh - • The foreign relations share the Bangladeshi government's policies in its external relations with the international community. The country pursues a moderate foreign policy that places heavy reliance on multinational diplomacy, especially at the United Nations and World Trade Organization (WTO). • Since independence in 1971, the country has stressed its principle of "Friendship towards all, malice towards none" in dictating its diplomacy.
  • 16. • As a member of the Non-Aligned Movement, Bangladesh has tended to not take sides with major powers. Since the end of the Cold War, the country has pursued better relations with regional neighbours. • Bangladesh was admitted to the United Nations in 1974 and was elected to a Security Council term in 1978–1980 and again for a 2000–02 term. • In recent years, the relations with Russia also became influential because of the Russian loan and technical assistance on military modernisation and the first ever nuclear power plant project of Bangladesh. • The bilateral relations of Bangladesh are mainly based on trade activities. However, with certain countries, the relations expand to other areas such as military co-operation, cultural exchange etc.
  • 17. Environmental Environment in Bangladesh • Current Bangladesh administration seems to be reluctant about environmental protection but still there are laws in place in Bangladesh against any attempt to pollute the environment in unnecessary way. • The effect of increased human and animal population, as well as land use in the Himalayan Mountains, have caused soil erosion, which could have resulted in the extra deposition of sediments in the Bangladesh watersheds. • Improper watershed management does lead to sedimentation in reservoirs and changing patterns of stream flow.
  • 18. • It is not good time for renewable market because of decelerated growth. Furthermore, from global perspective fossil fuel market is not good either. As a result, one must stay away from energy business in Bangladesh for time being. • But environment is everyone’s responsibility and organization which has to stay must make sure that environment is protected and efforts must be done to reduce carbon footprint of business.
  • 19. Conclusion in terms of strategy, context and performance
  • 20. Strategy • For current government improvement in labor force seems to be priority. current administration which they want to use to perform reduction in unemployment rates and according to economic indicators it seems that strategy is working. • Bangladesh feds want to improve growth of economy which is still lagging behind.
  • 21. Context • Bangladesh service sector is not so good but current government want to strengthen secondary industry to help labor force. Bangladesh have labour resources in sufficient quantities to help in that purpose. • Recent budget cuts indicate a decrease in spending which are not useful to Bangladesh citizens directly. • Regulatory framework is should be well placed in Bangladesh. Non-formal rules like being aware that racial discrimination should not be there in workplace and employee grievances must be addressed are important.
  • 22. Performance • Bangladesh even has a lower population growth rate than Pakistan. So, the per capita income of an average Bangladeshi is growing at an even faster rate. • It was its seventh year in a row that its GDP growth had exceeded 6 percent. • It is the second largest exporter of textile, and because of a well established textile industry labour force is utilised. • The new administration is successful in reducing unemployment and improving situation of labours.
  • 24. • Bangladesh is actively adapting to present problems by building protection works and changing agricultural practices. However, much more needs to be done to cope with future challenges. • Social environment makes availability of talented and healthy workforce feasible. Political environment of Bangladesh is little chaotic at the moment but it would be wrong to call it unstable because there are no chances of sudden power change. Legal environment of country is cumbersome for businesses due to more regulations but other factors • Legality of lobbying ease up the difficulty associated with legal environment. Due to policies of current administration sadly environmental business environment is not so good and is chaotic.