From Political Changes to Economic Growth, from Wars to Disasters: Asia’s Defining Year 2025 (V)

The year 2025 in Asia was shaped by impressive economic performances, historic turning points, lingering tensions between neighbors, high-stakes elections, waves of protest, the change of governments, cautious diplomatic breakthroughs among certain states, and relentless natural disasters with deep scars for peoples and countries.

THE AsiaN, founded on Asia Journalist Association’s network of journalists, is highlighting through articles written by its members the major issues that defined 2025 across Asia’s regions and countries. – Editor’s note”.

Bangladesh at 54: Achievements and Challenges

By Shafiqul Bashar
Asia Journalist Association, Bangladesh

DHAKKA: As Bangladesh celebrates 54 years of independence on December 16, 2025, the nation stands at a critical juncture on its journey from poverty to prosperity. Over the past five decades, Bangladesh has demonstrated remarkable resilience, achieving progress in social development and economic growth even while navigating complex political, environmental, and financial headwinds.

Despite successes in various fields, the momentum of development has been slowing, and significant challenges threaten to undermine future progress. The lack of good governance remains a major hindrance to achieving the nation’s desired development goals.

Fifty-four years ago, when Bangladesh gained independence from Pakistani rule in December 1971, the country was widely known as a poor state. For several years after independence, the word most often used to describe the country was ‘poverty.’ Political instability, military interventions, and natural calamities such as floods and famine were common during that period.

Over time, Bangladesh began to change. Agricultural production, along with fish output, started to grow, largely meeting domestic demand. The ready-made garments industry expanded remarkably, generating employment for more than four million young men and women.

Medium and small industries flourished across the country, providing jobs for millions of youths. Young people leaving villages for factories spoke less about hunger and more about wages and opportunities. The country became free from famine and widespread hunger. Yet poverty persisted, though on a smaller scale.

Poverty reduction in Bangladesh is undoubtedly one of the country’s success stories. The extreme poverty rate has plummeted, falling from nearly half of the population in 1991 to a fraction of that today. This achievement is the result of a combination of economic expansion and social safety net programs. Pioneering efforts by NGOs such as the Grameen Bank, which spearheaded the global microcredit movement, also contributed significantly to poverty reduction.

Bangladesh has also made significant strides in human development. The literacy rate has risen to over 75 percent, and gender parity in primary and secondary school enrolment has been achieved. Health indicators show profound improvements: life expectancy has increased to 72 years, while child mortality rates have fallen sharply, outperforming many countries in South Asia. This success is often attributed to a strong focus on women’s empowerment and grassroots development initiatives.

Major infrastructure projects such as the Padma Bridge, metro rail, Karnaphuli River underwater tunnel, and expressways have dramatically improved domestic connectivity and are expected to further boost economic activity.

Despite these impressive achievements, development momentum has slowed, and significant challenges threaten to undermine future progress, particularly as the country faces its next phase of critical transitions.

The post-2023 period has seen a more complicated economic picture emerge. High inflation, consistently hovering around 10 percent, has severely affected the cost of living, especially for the poor and lower-middle-income groups. Economic growth has decelerated amid weaker exports, subdued global demand, and domestic political uncertainty, prompting major international institutions to revise GDP growth forecasts downward.

Moreover, rising income inequality has become a major concern. The benefits of growth have not reached everyone equally, and the gap between the rich and the poor has widened. Job creation, which had been increasing particularly for educated youth and women in urban areas, has stalled, threatening to slow the pace of poverty reduction.

The lack of good governance, including systemic corruption and vulnerabilities in the banking sector, poses a severe threat to sustained development. High levels of non-performing loans in the banking system require urgent and bold reforms.

The climate crisis remains a major obstacle on Bangladesh’s path to rapid development. As a low-lying deltaic country, Bangladesh is highly vulnerable to the escalating impacts of climate change. Rising sea levels, increased intensity of cyclones, and saltwater intrusion threaten agriculture, livelihoods, and could displace millions of people.

Floods in the country’s northern and central regions remain a regular phenomenon that damages agriculture. However, due to improved protective measures and management, flood-related damage has been reduced substantially.

Bangladesh at 54 is a story of extraordinary ambition, struggle, and achievement. The country has advanced through the hard work, potential, and resilience of its people. Yet there remains a long road ahead to ensure the welfare of all citizens. There is an urgent need to curb rising inequality, strengthen economic stability, improve governance, and eradicate corruption from both government and society.