Bangladesh as a Production and Manufacturing Economy for AP World History

Feb 21

2 min read

Bangladesh as a production and manufacturing economy is an illustrative example of the Economics in the Global Age topic in Unit 9 of AP World History. You could reference this example on your AP World History test.

Manufacturing in Bangladesh — 2357443187/Shutterstock

Bangladesh has emerged as a significant player in the global production and manufacturing landscape, with its economy characterized by a thriving textile and garment industry and a growing presence in other manufacturing sectors. The country’s development as a production and manufacturing economy has been driven by a combination of factors, including its strategic location, abundant labor force, and government policies aimed at promoting industrialization and export-oriented growth.

The textile and garment industry has been the cornerstone of Bangladesh’s industrialization and economic development. Starting in the late 1970s, the government of Bangladesh actively promoted the growth of the textile and garment sector, offering incentives such as tax breaks, export subsidies, and preferential access to international markets. This led to a rapid expansion of the industry, with Bangladesh becoming one of the world’s largest producers and exporters of textiles and ready-made garments.

One of the key drivers of Bangladesh’s success in the textile and garment industry has been its abundant and relatively low-cost labor force. With a population of over 160 million people, Bangladesh offers a vast pool of workers willing to work in the manufacturing sector at competitive wages. The country’s predominantly young population, coupled with its improving education and skills training programs, has provided a steady supply of labor for the industry, supporting its growth and competitiveness in global markets.

Moreover, Bangladesh’s strategic location in South Asia, with access to major shipping routes and proximity to key markets such as Europe and North America, has further enhanced its appeal as a manufacturing hub. The country’s improving infrastructure, including ports, roads, and telecommunications networks, has facilitated the movement of goods and materials, enabling the efficient operation of the textile and garment industry and other manufacturing sectors.

In addition to textiles and garments, Bangladesh has diversified into other manufacturing industries such as leather and footwear, pharmaceuticals, and electronics. The government has implemented policies to attract foreign investment, promote technology transfer, and support the growth of these industries, aiming to further diversify the country’s export base and create employment opportunities for its growing population.

However, Bangladesh faces challenges as it continues to develop its production and manufacturing economy. These challenges include addressing infrastructure constraints, improving the business environment, and ensuring compliance with labor and environmental standards. Additionally, the country must navigate global market uncertainties, trade tensions, and evolving consumer preferences to maintain its competitiveness and sustain economic growth.

In conclusion, Bangladesh’s development as a production and manufacturing economy reflects its strategic focus on industrialization, export-oriented growth, and job creation. By leveraging its strengths, addressing its challenges, and embracing opportunities for diversification and innovation, Bangladesh has positioned itself as a dynamic player in the global production and manufacturing landscape, driving economic development and improving livelihoods for its people.