Share the article
twitter-iconcopy-link-iconprint-icon
share-icon
ViewpointJanuary 3 2017

Fazle Kabir: The unconventional route to financial inclusion

Eschewing monetary policy norms can support growth and lead to positive outcomes for the socially and financially excluded, as Bangladesh is demonstrating.
Share the article
twitter-iconcopy-link-iconprint-icon
share-icon

In 2015, Bangladesh reached lower middle-income status, a milestone for a country of 160 million population. At more than 6% for 15 years, now more than 7%, economic growth has been relatively high, steady, and, more importantly, inclusive, despite persistent natural shocks. It has also defied pundits’ gloomy predictions. Over the past four decades, average life expectancy in Bangladesh increased by about 30 years to more than 70 years of age, and less than 25% of the population now lives in poverty, a figure that stood at more than 80% 40 years ago. The economy has also passed the $200bn mark, so the macro story has clearly been impressive.

Bangladesh's micro story is even more heartening: ours has been a bottom-up, broad-based and labour-intensive growth that has both empowered and relied on women, be it in garments manufacturing, agriculture or other non-farm rural activities. Together, these transformations have enabled impressive gains in gender equality, health, education and other human development indicators. Thanks also to home-grown social innovations, these transformations have also taken place at a much lower per-capita income than witnessed in peer economies.

To continue reading, join our community and benefit from

  • In-depth coverage across key markets
  • Comments from financial leaders and policymakers worldwide
  • Regional/country bank rankings and awards
Activate your free trial