On the 45th anniversary of the Victory Day, it's indeed a time to see how the indicators have developed since last 45 years. Once discarded by present day Machiavelli of the contemporary World, Henry Kissinger, we were termed as a bottomless basket and discarded off as among the list of failed countries. In 2016, per-capita income was estimated as per IMF data at US$3,840 (PPP) and US$1,386 (Nominal). The country has not only unleashed the potential opportunities in forms of economic growth but also showed significant developments in various indicators of social development index. Our progress in 45 years
The market based economy of Bangladesh is the 44th largest in the world in nominal terms, and 32nd largest by purchasing power parity
Masihul Huq Chowdhury
On the 45th anniversary of the Victory Day, its indeed a time to see how the indicators have developed since last 45 years. Once discarded by present day Machiavelli of the contemporary World, Henry Kissinger, we were termed as a bottomless basket and discarded off as among the list of failed countries. In 2016, per-capita income was estimated as per IMF data at US$3,840 (PPP) and US$1,386 (Nominal). The country has not only unleashed the potential opportunities in forms of economic growth but also showed significant developments in various indicators of social development index.
The market based economy of Bangladesh is the 44th largest in the world in nominal terms, and 32nd largest by purchasing power parity; it is classified among the Next Eleven developing economies after BRICS. According to the IMF, Bangladeshs economy is the second fastest growing major economy of 2016, with a rate of 7.1%. Dhaka and Chittagong are the principal financial centres of the country, being home to the Dhaka Stock Exchange and the Chittagong Stock Exchange.
A company issuing stocks and debentures, which are traded on the open market on a on the over the counter market. Individual and institutional shareholders constitute the owners of a publicly-traded company, in proportion to the amount of stock they own as a percentage of all outstanding stock. Thus, shareholders have final say in all decisions taken by a publicly-traded company and its managers, especially through its annual shareholders meeting. Publicly-traded companies have greater access to financing than other companies, as they have the ability to issue more stock. A publicly-traded company is also called a public company.With an annual GDP growth in excess of six percent over last ten years, we can with all due humility transmit the message to global powers and citizens, what a tremendous achievement our country has embarked on. Stock Exchange is one of the key areas to see how the country has made progress against the global or regional standards. Generally speaking a Stock Exchange of a country depicts the advancement of economy of a country in form of the financial status of a country. Corporates raise their required funds be it in form of equity or debts from the public or institutions through various instruments including equity and debts to fund their long term needs.The stock market capitalisation to GDP ratio is a ratio used to determine whether an overall market is undervalued or overvalued. The ratio can be used to focus on specific markets, such as the U.S. market, or it can be applied to the world market depending on what values are used in the calculation. In 2015, the combined market capitalisation of listed companies on the Dhaka bourse stood at over $40 billion. The Gross Domestic Product (GDP) in Bangladesh was worth 195.08 billion US dollars in 2015. The GDP value of Bangladesh represents 0.31 percent of the world economy. GDP in Bangladesh averaged 42.54 USD Billion from 1960 until 2015, reaching an all time high of 195.08 USD Billion in 2015 and a record low of 4.30 USD Billion in 1960.
In the decade since 2004, Bangladesh averaged a GDP growth of 6.5%, that has been largely driven by its exports of ready made garments, remittances and the domestic agricultural sectors. The country has pursued export oriented industrialisation with its key export sectors. It has also developed self-sufficient industries in pharmaceuticals, steel and food processing. Bangladeshs telecommunication industry has witnessed rapid growth over the years, receiving high investment from foreign companies. The government promotes the Digital Bangladesh scheme as part of its efforts to develop the countrys growing information technology sector.Bangladesh is strategically important for the economies of BIMSTEC as Bangladeshi seaports provide maritime access for these landlocked regions and countries. China also views Bangladesh as a potential gateway for its landlocked southwest, including Tibet, Sichuan and Yunnan.
The Market Capitalisation to GDP ratio is one of the key indicators to see the market valuation of overall economy. Generally speaking the range below 100 percent gives a buy signal for that economy. Under that situation, market capitalisation of USD 40 billion against GDP of circa USD 200 billion shows the potential which our stock market depicts. Only with the exception of financial sector ( banks, financial institution and insurance which constitute a major portion of market capitalisation), no other sectors are adequately representative in the bourses. The demutualisation of the Dhaka stock exchange poses a great possibility of the corporates to become listed. The financial incentives, the corporate governance, the opportunities for bringing in overseas investors, raising funds from global markets are among few incentives which can be promoted to the corporate bodies in order to incentivise them to become listed in the bourses. From the buy side, the potential opportunities raising out of this demutualised scenario in terms of strategic alliance including partnership will enable our stock exchange to gain prominence in the international markets. The relevant authorities and stakeholders need to take concerted efforts to market the potential opportunities which the demutualised market offer. This will not only help integrate our markets with the global investors but also help promote the branding aspects of the country. We have our own uniqueness in terms of branding Bangladesh which among others include homogenous welcoming 160 million plus population with a growing middle class, the success stories in food production by our farmers, women empowerment, a sizeable age of populating waiting to join workforce, a role model in achievement of various SDG goals, the relentless and indomitable resilience of our workers abroad and the abundance of scenic beauty across the country. As expected the showcase to international investor forum for the demutualised stock exchange definitely will play a very positive impact. We can certainly dream of a upper Middle Income Bangladesh when the nation turns fifty in next five years.
The writer, a banker by profession, has worked both in local and overseas market with various foreign and local banks in different positions
