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Bangladesh's Economy

The "Basket Case" That Wasn't

How Bangladesh defied its early label as an "international basket case" to achieve big gains in health, education and incomes, and what explains its social progress.

In the early 1970s, a US official reportedly called Bangladesh an “international basket case”.

Remarkable progress

  • Life expectancy rose to around 72 years, higher than India’s for a period.
  • Child mortality fell sharply.
  • Fertility fell from around 6 births per woman in the 1970s to around 2.
  • Girls’ school enrolment rose, reaching parity with boys.

Why

  • NGOs like BRAC delivering health and education at scale.
  • Oral rehydration campaigns against diarrhoea.
  • Family planning outreach by female health workers.
  • Stipends for girls in secondary school from the 1990s.
  • Women’s employment in garments.

Beating India on some indicators

Economists Jean Drèze and Amartya Sen noted Bangladesh outperformed India on several social indicators despite being poorer, due to women’s agency and public health efforts.

Lesson

Low-cost, community-based interventions can achieve large social gains.

The oral rehydration packet

BRAC workers taught millions of mothers to make oral rehydration solution from salt, sugar and water, saving many children from diarrhoea.

Thinking social progress requires high income first

Bangladesh made big gains while still poor.

Key takeaways
  • Bangladesh was once called a "basket case".
  • Life expectancy and child survival improved sharply.
  • NGOs, girls' stipends and health campaigns drove progress.
  • It outperformed India on some social indicators.
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