Economists argue that Bangladesh remained ensnared in a low-wage economic cycle despite visible development, largely driven by labourers in various sectors like agriculture, RMG, and migration even as they emphasised the need for institutional reform and a shift towards high-technology-based production to ensure sustainable development and economic prosperity.
The observations were made at a recent book launch organised by the Centre for Policy Dialogue (CPD) even as they lamented the dysfunctional state of institutions, particularly in fiscal management.
Professor Rehman Sobhan, co-editor of the book, highlighted the absence of functional institutions critical for development and expressed concerns over the advanced deterioration in the banking system, identifying bank defaults as a serious structural crisis while Dr. Hossain Zillur Rahman emphasised Bangladesh’s entrapment in the economic trap of cheap labour, urging a focus on quality education to cultivate qualified human capital and combat corruption.