PEST Analysis

Political Factors

Challenge to create a real participatory democracy

Issues of good governance and corruption

Political instability

Centralized local government

Environmental degradation

Economic factors

Inflation rate

Pursue foreign investment actively

Reduction in poverty

Foreign trade regulations and attitude towards foreign companies

Economic growth rat

Social factors

Social changes

Demographic trend and consumer expenditure

Technological factors

Technological advancements

Heavy reliance on imported technologies

A National Science and Technology policy adopted by the Government

Political Analysis Bangladesh

Bangladesh is rapidly changing as a dominant two-party system; BNP and Awami League, it has
a parliamentary democracy. The legislature includes 300-seat body. All of its members are
chosen by worldwide suffrage in least every 5 years. Parliament amend the organization in the
month of May 2004, provision for 45 seats was made & kept for women which is to be
distributed among political parties in proportion to their numerical strength in governing body.
With a view to fill the reserved seats for women, many women's groups have demanded direct
election.
Democracy and Human Rights: The parliamentary process and the political dialogue at the
national level are presently not conducive to broad socioeconomic development. The democracy
is young and fragile and state institutions are weak. At the national level political bickering is
driven by personal and power rivalry between the government and the opposition.
The incidence of violence, even murdering of political figures and journalists, seems to have
increased during recent years. The law and order situation is not upheld in society and the risk
for further deterioration is apparent. Human rights violations continue, especially linked with
political activities. At the local level there has been some positive progress, but the democratic
process is shaky and dependent on the local power structure. Consequently, the majority of the
population is unable to have a voice in the political process and lacks access to decision-making,
both locally and nationally. Therefore, there is challenge for the country to create a real
participatory democracy, built on the rule of law for all its citizens.
The issue of good governance and corruption prevention will, however, be the main topic on the
development agenda in Bangladesh for the next five to ten years. As the political situation
currently faces difficulties and even civil unrest, Bangladesh seems to have lost its impetus for
needed structural reforms.

Economic Analysis Bangladesh

South Asian economies are intending to carry out trade facilitation measures that will greatly
reduce present physical & nonphysical barriers to transportation & transit by the way of both
visible infrastructure (such as multimodal corridors and terminals) and invisible infrastructure
(such as reformed policies, procedures, and regulations).Due to lack of adequate research on
trade facilitation in South Asia, not much information is available on the existing profile of trade
facilitation measures (both at the border and the capital) in South Asia. This is a research area
that needs special attention from policymakers & researchers in South Asia.
With an increased emphasis on administrative reform, governance & security, the call for an
efficient & effective customs administration is felt urgently. Customs is an element of any crossborder movement of goods and services & yields important influence on the national economy.
It is the unique point where the supply chain & routine access to trade intelligence and data meet.
Beyond facilitating trade, customs performs other significant functions such as income collection
& protection against dangerous goods. The time taken for clearance of goods has an force on the
competitiveness of countries in the global context.
One of the main reasons for the high transaction costs of Indias exports to Bangladesh is
unwieldy & composite cross-border trading procedures. Complex requirements in cross border
trade increase the possibility of corruption. For instance, at the key border-crossing point
between India & Bangladesh, as many as1,500 trucks queue on both the sides of the border with
waiting times varying between 1 & 5 days to complete documentation requirements. Expediting
customs
clearance procedures reduces the optional power of customs officials, thus reducing the scope for
corruption. An efficient, friendly, and corruption-free customs can help boost trade &
investment. The goods carried by road from India are subjected to
transhipment at the border. Similarly, goods carried by rail are subjected to inland ranshipment.
As far as marine transport is concerned, there are no direct sailings. The transhipments at the
land customs stations impose serious impediments. In fact, they determine the level & the
efficiency of international trade between the two countries. The position is further compounded

by lack of harmonization of technical standards for rolling stock & infrastructure, both road &
rail.
Considering this regions appearance as a free trade area from 2006 onward, reformin the
transport sector will aid South Asian countries assess likely benefits of movingto a deregularized
transport sector under a liberal trading regime when the transportsector is one of the prime
instruments for promoting intra-regional trade.
Hence, countries in this region should take immediate steps in not only integratingtheir transport
system but also in reforming the entire system so that the transportsystem functions as the engine
of growth rather than as a trade deterrent. TheGovernment of Bangladesh should try to remove
the structural asymmetries in therail & marine transportation sector that are found to be quite
important.
History:
The economy has grown at the rate of 6 to7% per annum over the past few years.More than half
of the Gross domestic Product is generated by the service sector,while nearly half of
Bangladeshis are employed in the agriculture sector. Othergoods produced are jute, fish, fruit,
vegetables, leather goods, textiles, ceramics, andready made goods.Bangladesh has made
substantial stride in its economic sectorperformance since independence in 1971. Even though
the economy has improvedgreatly in the 1990s, Bangladesh still suffers in the area of foreign
trade in South
Asian region.
Current Scenarios:
Despite major impediments to growth like the inefficiency of state-owned enterprises,a rapidly
growing labour force that cant be absorbed by agriculture, inadequatesupplies & sluggish
implementation of economic reforms. The World Bank ishelping Bangladesh address its main
boost areas through a mix of analytic work,technical assistance & lending. Analytic work has
paying attention on investmentclimate issues, export competitiveness, the post Multi-Fibber
Agreement (MFA)

situation & strategy for long-term increase & employment concern.On the lending side, a
series of growth support credits, (DSC I, DSC II & DSC III) have supported
structural improvements in infrastructure, monetary sector, trade, governance & tax
administration.
The Banks other lending functions involves an Enterprise Increase & BankModernization
Project, Rural Transport Improvement Project & a series of EducationSector Adjustment Credits
(SAC I and SAC II).
Economic Growth of Bangladesh:
The Gross Domestic Product (GDP) in Bangladesh was worth 110.61 billion USdollars in 2011,
according to a report issued by the World Bank. The Gross DomesticProduct value of
Bangladesh is approximately equivalent to 0.18 percent of the worldeconomy. Historically, from
1960 until 2011, Bangladesh GDP averaged 30.3 BillionUS dollar reaching an all time high of
110.6 Billion US dollar in December of 2011 &a record low of 4.3 Billion US dollar in
December of 1960. The Gross Domestic
Product (GDP) measures of national income & yield for a given country's economy.
The gross domestic product (GDP) is equal to the total expenditures for all final
goods & services produced inside the country in a predetermined period of time.