Can Bangladesh Economy Sustain the Growth?

Bangladesh, One of the emerging economies in the Asia pacific region. This country has seen significant economic growth in the recent decades.
Despite of this growth, the country's FDI has fallen to 20% last year. Like this there are many things which are putting questions on the country's future growth.
Well to get there, First we have to understand some things.
So in 1972 when Bangladesh got independence. The government implemented socialist policies. Under this they nationalized most of the corporations. But, due to lack of experience, it created widespread disruptions, and industrial production nearly came to an halt. So in order to increase productivity, the government gradually revised the nationalization policies, and returned many state owned enterprises to the private sector. After these reforms, the contribution of industrial sector to the GDP increased drastically. And from then Bangladesh has started to shift their economy more towards industrial and service sector.
You see, Bangladesh has a massive labour force, it is 8th largest in the world. And because of this, they are capitalizing upon low skilled labour force. This same principle is followed by most of the Asian nations for their industrial sector, mostly for manufacturing. Today Bangladesh is one of the largest manufacturers of garments. This industry alone accounts for 84.21% of their total exports, and provides employment to four million workers.
Along with this, Bangladesh also experienced a steady growth in the service sector. This sector is the largest contributor to their GDP, and also employment.
Another thing that Bangladesh relies on is remittance. In 2019 nearly 10 million migrants sent over 18 billion us dollars in Bangladesh which is nearly 7% of total GDP of the nation. This has created a steady flow of foreign currency in the economy.
Now, what raises questions Bangladesh's future growth?
You see, Manufacturing in Bangladesh in not much diversified. It is overly dependent on the garment industry, and over dependence on any sector might be bad in future.
Another major problem that Bangladesh is facing is natural disasters, and it is particularly hurting the agriculture, and infrastructure of the country. The World bank estimates Bangladesh as one the most expensive place in the world to build infrastructure. It is estimated that natural disasters cost Bangladesh nearly 2.2% of its GDP. And this cost is likely to increase in the future because of rising sea level.
Also remittance on the other hand can create dependence in recipients, and cause real exchange-rate appreciation which adversely affects the domestic production. So increasing the dependence on remittances is not a good option for sustainable growth. Now all these challenges have a direct impact on foreign direct investments in the nation.
Now in order to sustain the growth only reforms can help the country to keep up their growth. Bangladesh should diversify their manufacturing sector to create high income jobs. They should also needs to improve their policies for business, and create ease of doing. they need to establish special economic zones on which Bangladesh's government is already working. This will attract more foreign companies and investment. And Bangladesh has great opportunities because most international companies are using china plus one strategy, and Bangladesh could be a good option for them. This will also help Bangladesh to diversify its industry from the garment industry.
So at the end Bangladesh is on the way to become one of the largest economies in Asia with its remarkable growth.

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