ABSTRACT
Bangladesh’s development achievement has generated a debate among the development economists and policy analysts because the traditional development model does not explain the Bangladesh story. The total economy of the country was only about eight billion US dollars in 1972, which could hardly feed nearly 75 million mouths. Both hunger and poverty were abysmally high and haunting the newly born independent Bangladesh. The country used to be cited as an ideal case of Malthusian paradigm with too many people and a very cruel nature during those challenging days. Bangladesh has achieved significant growth and development in the last decade. The total GDP of Bangladesh is now well over $300 billion. The annual per capita income has nearly tripled during the last decade, reaching $1,908 last year. The growth of medium and affluent consumers with nearly 5,000 USD per capita income per year has been phenomenal. The level of poverty has gone down to below 30%, infant and maternal mortality rates have declined, the domestic consumer market expanded and the size of the middle class increased. This chapter briefly describes the macroeconomic transformation that took place in Bangladesh and its impact on the economic and social development of Bangladesh.
