NORTH SOUTH UNIVERSITY

SCHOOL OF BUSINESS & ECONOMICS

Course Title: Economic Conditions Analysis
Course Code: BUS530
Section: 02
Submission Date: 17.12.2019
Assignment Title: Sustainability is an important issue globally. Explain how
Bangladesh is reaching towards fulfilling sustainable development goals (SDGs)
with its fiscal and monetary policies?
Prepared for:
Dr. Tamgid Ahmed Chowdhury (TMR)
Associate Professor
Director, E/MBA Programs
North South University.

Prepared by:
Md. Minhajul Alam 1825178660
Meher Afrose 1925080660
Sumaiya Habib Tajre 1915261660
Md. Siddiqur Rahman 1915244660
Abu Saleh Mohammad Nasim 1835123060
 Goal 8: Decent Work and Economic Growth

The Goal:

Major findings regarding Sustained, Inclusive and Sustainable Economic Growth and Decent
Work in Bangladesh are as following:

 Over the past 25 years the number of workers living in extreme poverty has declined
dramatically, despite the lasting impact of the 2008 economic crisis and global recession.
In developing countries, the middle class now makes up more than 34 percent of total
employment – a number that has almost tripled between 1991 and 2015.

 Upward shift in the average annual growth rate to more than 7 per cent in the recent years
(FY2015-FY2018) from the above 6 per cent rate over the last decade.
 The average annual growth rate of GDP per employed person has already reached the
2020 target in FY2017.
 The estimated unemployment rate in Bangladesh has been closer to 4 per cent for a long
time and it can be reasonably expected to remain closer to this long run level in the near
future.
 There is no official data on child labor after 2013. It may be expected that with stronger
growth, and elimination of extreme poverty as well as greater access to education the
child labor situation will improve in the future.
 There has been gradual improvement in financial inclusion variables in recent years
indicating increased access of households and businesses to financial services.
 About 29 per cent of youth was not in education, not in employment (NEET) in the base
year which increased to about 30 per cent in the following year. While the proportion of
youth male NEET is closer to 10 per cent the proportion of youth female is closer to 50
per cent in 2016/17. Both rates are higher than their levels in the preceding year which
puts them off-track.

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  Achieving SDG targets face some key challenges such as increasing informality in job
market, high youth unemployment rate, skills demand and supply mismatch, low female
labor force participation, low inflow of foreign resources particularly FDI, workplace
injuries, child labor and problems involving migration of workers.
 The Government’s growth enhancing and job creating policies and programs would be
revamped by other policies and programs such as increasing growth through
diversification of the economy, better integration of education system and labor market,
enhancing women employment opportunities, lifelong education and attracting external
resources.

Goal 9-Industry, innovation & infrastructure

Major findings regarding Industry, innovation & infrastructure in Bangladesh are as following:

 At present around 2.3 million people employed in renewable energy sectors

 Technological progress is also a key factors for ensuring economic and environmental
efficiency
 Develop quality and reliable infrastructure, including regional and trans boarder
infrastructure, to support economic development and human well-being,
 Mass Transport & renewable energy are becoming more important
 By 2030 we need to ensure-
 Development of Domestic Technology
 Facilitate sustainable and resilient infrastructure development
 Increase the access of small-scale industrial and other enterprises
 Enhance scientific research, upgrade the technological capabilities of industrial
sectors
 Significantly increase access to ICT and strive to provide universal and affordable
access to internet
 Upgrade infrastructure and retrofit industries to make them sustainable

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 Goal 10: Reduced Inequalities

“Reduce inequality within and among countries” is the main intent of Goal 10. It has 2
objectives: (a) to reduce inequality within countries; and (b) to reduce inequality among
countries. The major focus of this discourse is the first objective: to reduce inequality within
Bangladesh, and has to be done by the people of Bangladesh.

As per United Nations, inequality still persists in a higher degree in many countries all over the
world and large disparities remain in access to health, education, sanitation, employment and
other services and resources. Unfortunately, Bangladesh is one such country.

 In case of Bangladesh, as the CRI Index 2018 says, it has been ranked in the 148th
position among 157 countries which are doing very little to reduce the gap between the
rich and the poor.
 Inequality is a major concern for civil society in Bangladesh. The report by the Equity
and Justice Working Group Bangladesh (Equity.BD) quantifies rising inequalities. The
Palma ratio (between the income of the richest 10% and that of the poorest 40%) grew
from 1.68 in 1964 to 2.93 in 2016.

The latest Household Income and Expenditure Survey released by Bangladesh Bureau of
Statistics in 2016 found that the income share of the poorest 10 per cent of the household
population received 1.01 per cent of the total national income in 2016 which was 2 per cent in
2010. In comparison, the richest 10 per cent of the population owned 38.16 per cent of the
national income in 2016 which was 35.84 per cent in 2010. This means the rich are growing
richer in income and wealth day by day.

Goal 13: Climate Action

 Number of deaths, missing persons and directly affected persons attributed to disasters
per 100,000 populations (Indicator 13.1.1) have fallen over the years. Now it stands at
12,881 with a target of 6,500 by 2020 and 1,500 by 2030. Given the track record of
Bangladesh in disaster management, this target will not be difficult to achieve.

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 MoDMR has prepared Disaster Risk Reduction Strategies of Bangladesh (2016-2020) in
line with the Sendai Framework which will be helpful in this regard.
 In facing the climate change scenarios, Bangladesh is well prepared with a number of
climate change related strategies, plans and actions.
 Through BCCTF, it has spent around 2,700 crore of taka over last 8 years in climate
change adaptation. Bangladesh Delta Plan 2100 has been formulated primarily to address
climate change adverse impacts and ensuring availability of water for safe multi-uses.

Goal 15: Life on Land

 Plant life provides 80 percent of our human diet, and we rely on agriculture as an
important economic resource and means of development in our country
 Land degradation and loss of arable land are major problems in our country
 Drought and desertification is also on the rise each year
 Political power is an important factor in these sector
 Forest coverage has come down to only 9 percent
 Massive tree plantation in each village to face the climate change impacts
 The SDGs aim to conserve and restore the use of terrestrial ecosystem such as forests,
wetland, dry lands and mountains by 2030.

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 Recommendations using Fiscal and Monetary Policy

We can see from graph that when Govt. expenditure increases the IS curve shift to the right and
the equilibrium point also shift from E to E”. This way the national income also increases (when
more people are employed that means the national income automatically increase). However the
interest rate also rises from r1 to r2. Which might be discourage to the new investors. On that
situation monetary policy will be help. When interest rate rises it might be create difficult
scenario of Bangladesh. Because for high interest rate lack of people would like to invest. This
negative impacts shows on our economy. In this case, Bangladesh Bank should take the

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expansionary monetary policy by increasing a bit of the money supply in the economy keeping
the inflation into the consideration. So, LM curve will shift to the right at LM`. The national
income will rise at y3 and the new equilibrium point will be E``. At E``, the interest rate will be
reduced at r1 again. So, it will be a favorable scenario for Bangladesh.

 For the solution of Zero Hunger goal, if Bangladesh Govt. would like to fulfill No hunger
target goal the Govt. must need to change their fiscal policy by expanding their
expenditure. When Govt. expand their expenditure that means they are more capable to
invest more money on infrastructure as a result more people able to get job. The
unemployment rate decrease. Which also impact on no hunger, because when a country’s
unemployment rate decrease that means that countries poverty line also decreases. If it
continues we can easily achieve 2030 zero hunger goal.
 Govt. should increase the annual budget up to 6% of GDP for education. That means,
govt. invest more money in the economy. That means the planned expenditure line will
shift up. So the IS curve will shift to the right at IS` and the equilibrium point will shift
from E to E`. National income or GDP also raise Y1 to Y2 which is 6%. However, the
interest rate will rise from r1 to r2. That will be an inconvenience situation. In such note,
monetary policy might help. When interest rate will rise, Bangladesh Bank should take
the expansionary monetary policy by increasing a bit of the money supply in the
economy keeping the inflation into the consideration.
 Achieving gender equality, clean water and sanitation target, government should go for
expansionary fiscal policy and more specifically government expenditure on providing
women and girls with equal access to education, health care, decent work, and
representation in political and economic decision-making processes. Also to provide
clean water, hygienic and sanitation coverage. And Bangladesh Bank should take the
expansionary monetary policy by increasing a bit of the money supply in the economy
keeping the inflation into the consideration.
 For achieving decent work and economic growth target, government should go for
expansionary fiscal policy and Bangladesh Bank should take the expansionary monetary
policy to decrease youth unemployment rate, improvement on skills demand and supply
mismatch, increase female labor force participation, high inflow of foreign resources
particularly FDI, reduce workplace injuries etc.

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 To attract public and private investors, to reduce inequality and unemployment problem
and to restore the use of terrestrial ecosystem, government should go for expansionary
fiscal policy and Bangladesh Bank should take the expansionary monetary policy

 Bangladesh has taken proper initiative to protect the climate. If the process continues like
the way it is, Bangladesh will be able to achieve this sustainable development measure
within the time frame 2030.
 In every year the poverty rate getting decrease. That means Bangladesh is now in a right
track. If Bangladesh continuously decrease poverty rate they will easily achieve SDG
goal by 2030.

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Reference:
Sustainable Development Goals. (n.d.). Retrieved from
https://www.bd.undp.org/content/bangladesh/en/home/sustainable-development-goals.html.