Approaches to Economic Development, Growth, HDI and Bangladesh: A Methodological Shift

Abstract

This paper briefly investigates the traditional approaches to economic development, growth, poverty reduction initiatives and the rank of Bangladesh within the human development index (HDI) of UNDP. The traditional approaches deal with basic economic questions that relate only to the structure of an economic system ignoring altogether the human and other non economic aspects into their models. Yet, in reality noneconomic issues are equally important in measuring sustainable long-term well beings of citizens. The shortcomings of conventional approaches are evident from incremental gaps between developed and developing countries as well as sub-national regions of any country. However, recent trends are to consider relevant non-economic issues in addition to economic variables as adopted in HDI for measuring a nation's development status. Accordingly, policymakers around the globe are looking for alternative approaches that are capable of addressing all relevant issues in their national development planning and policymaking for achieving sustainable long-term development. As an indicator for measuring real economic development that captures broad spectrum of human needs and attributes the HDI seems superior to GDP per capita. This is a methodological shift. In this regard, Bangladesh is not lagging behind in recognizing the prime HDI parameters and adopting the same in its various projects and policies that consider more than the traditional economic development issues. JEL Classifications: 01, 015