Transforming Economies: Institutional and Structural Change in a Developing Economy
DOI:
https://doi.org/10.22452/IJIE.vol18no4.10Keywords:
Structural transformation, Economic development, LDC graduation, Export diversification, SDG 8: Decent Work and Economic GrowthAbstract
Bangladesh’s development over the past five decades offers a unique case
of structural economic transformation. Once deemed a “basket case,” Bangladesh
has transitioned from a war-torn agrarian economy into a growing manufacturing
and service hub. This paper analyses Bangladesh’s transformation through multiple
theoretical lenses, including Lewis’s dual-sector model, structuralist development theory,
institutional economics, and global value chain (GVC) frameworks, and benchmarks
its progress against peers such as Vietnam, India, Pakistan, Sri Lanka, Rwanda, and
Ethiopia. We synthesise recent data (through 2024) on key indicators (e.g. GNI per
capita, Human Assets Index, Economic Vulnerability Index) and draw comparisons
with select countries. We also review literature on export dependence and governance
to contextualise Bangladesh’s experience. Bangladesh meets the criteria for graduation
from least developed country (LDC) status, driven by export-led growth and social
gains. However, heavy export concentration and institutional weaknesses pose structural
vulnerabilities. Compared to regional peers, Bangladesh has achieved robust and inclusive
growth, but lags in technological upgrading and governance. The study underscores
that adaptive institutions, export diversification, and proactive policy reforms are
critical for sustaining Bangladesh’s progress. We conclude with policy recommendations
emphasising diversification, institutional strengthening, inclusive digitalisation, and
climate resilience.
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