ABSTRACT

Bangladesh, despite achieving high economic growth and rapid poverty reduction since independence in 1971, has experienced substantial rise in inequalities with certain population groups and regions lagging behind. Since labour income is important for the poorer groups, equitable labour market outcomes and inclusive development as a comprehensive development paradigm are synonymous with improving the well-being of all along with upholding the principles of equity and justice in Bangladesh. Inclusive development promotes flexibility and participation giving the freedom of choice since both are mutually reinforcing. While gaining a better conceptual understanding of inclusive development is necessary to sharpen Bangladesh’s development policy realm, the major challenge is to identify the key domains in which inclusive development can progressively be promoted through evidence-based policies. The chapter underscores the need for in-depth analysis and proper understanding of the inner dynamics of the labour market as the most important element to operationalise the concept of inclusive development in Bangladesh.