As the world grappled with the unprecedented challenges brought on by the COVID-19 pandemic, Bangladesh, like many other countries, faced a severe economic downturn. During these tumultuous times, the leadership of Prime Minister Sheikh Hasina emerged as a beacon of hope and strength, guiding the nation through a turbulent economic landscape. While every country in the world were facing extreme difficulty in tackling challenges posed by COVID, the suddenly started Ukraine was became another major issue. As we know, armed conflicts and geopolitical tensions, such as the war in Ukraine, can create uncertainty in the global economy. They may lead to disruptions in trade, supply chains, and investment flows, affecting countries worldwide, including Bangladesh. As Bangladesh is an export-oriented economy, any significant disturbances in international trade which had occurred due to Ukraine war had badly affected country exports and overall economic performance.
As a result of Ukraine war, commodity prices, particularly those related to energy and agricultural products witnessed skyrocketing rise, which had not only affected developing countries like Bangladesh, it has been having tremendous adverse effect on the Western nations, including the United States.
It may be mentioned here that, Bangladesh, being a net importer of energy and having a significant reliance on agricultural imports, has been experiencing fluctuations in prices, potentially affecting its import bill and inflation rates.
The Ukraine war and subsequent Western sanctions on Russia has affected Bangladesh in its remittance flow as the country heavily relies on remittances from its overseas workers, with a large portion of these remittances coming from the Middle East and Gulf countries. Geopolitical tensions in these regions, triggered by global conflicts, has impacted the job security and income of Bangladeshi migrant workers, leading to a decline in remittances.
International investors became cautious and risk-averse during times of geopolitical instability. A war in Ukraine has resulted in a slowdown in foreign direct investment (FDI) globally, potentially affecting Bangladesh’s prospects of attracting FDI inflows.
The conflict in Ukraine has also strained diplomatic relations between countries, which indirectly impacts Bangladesh’s bilateral trade agreements and economic ties with affected nations. Trade barriers or political sanctions imposed on Russia in particular has affected Bangladesh’s trade prospects.
It is essential to mention here that Bangladesh imports a significant portion of its energy requirements from foreign sources, including Ukraine and Russia. Geopolitical tensions, particularly those that impact energy-producing regions or transit routes, has also resulted in fluctuations in global energy prices, impacted Bangladesh’s energy import bill and overall energy security.
Bangladesh, a densely populated South Asian country with a burgeoning economy, experienced the devastating impact of the COVID-19 pandemic on multiple fronts. The stringent lockdown measures taken to curb the spread of the virus led to disruptions in supply chains, reduced exports, and a significant slowdown in domestic economic activities. Industries such as ready-made garments, which account for a substantial portion of the country’s export revenue, were particularly hard-hit.
Additionally, the pandemic resulted in increased healthcare expenditures and social welfare demands, further straining the nation’s already limited resources. In this difficult context, Sheikh Hasina’s government faced the daunting task of finding solutions to resuscitate the economy and alleviate the suffering of millions.
Under the visionary leadership of Prime Minister Sheikh Hasina, the Bangladeshi government swiftly implemented a range of strategic measures to counter the economic repercussions of the pandemic:
Stimulus packages
Sheikh Hasina’s administration rolled out comprehensive stimulus packages to inject funds into various sectors and provide support to vulnerable groups, including farmers, small businesses, and the unemployed. These packages aimed to revitalize economic activities and ensure a safety net for those most affected by the crisis.
Export diversification
Recognizing the over-reliance on the ready-made garment industry, the government intensified efforts to diversify its export base. By promoting other industries, such as pharmaceuticals, information technology, and jute products, Bangladesh sought to reduce its vulnerability to external shocks in the future.
Investment in infrastructure
The government continued to prioritize investments in infrastructure development. Projects aimed at improving transportation networks, energy efficiency, and digital connectivity were initiated to boost economic productivity and attract foreign investment.
Strengthening health systems
Recognizing the importance of a resilient healthcare system, Sheikh Hasina’s government increased spending on healthcare infrastructure, medical research, and vaccine distribution. A robust healthcare system was seen as essential not only for public health but also for economic stability.
Focus on agricultural sector
Agriculture has always been a critical sector in Bangladesh’s economy. Sheikh Hasina’s government provided support to farmers through enhanced access to credit, technological advancements, and agricultural research to ensure food security and bolster rural livelihoods.
Employment generation
As unemployment surged due to pandemic-induced layoffs, the government initiated various job creation programs to provide employment opportunities, especially for the youth and marginalized communities.
Results and achievements
Through the determined efforts of Sheikh Hasina’s government, Bangladesh witnessed commendable progress in overcoming post-COVID economic challenges:
Economic recovery
Despite the initial setbacks, the country demonstrated remarkable resilience and achieved a steady economic recovery. The proactive measures taken by the government helped stabilize the economy and pave the way for future growth.
Export growth
Diversification strategies contributed to the expansion of non-garment exports, reducing the country’s dependence on a single sector. This not only increased foreign exchange earnings but also enhanced economic stability.
Infrastructural advancements
Investments in infrastructure improved connectivity and facilitated smoother transportation of goods and services. This development attracted foreign investment and further boosted economic activities.
Strong health response
Bangladesh’s effective response to the pandemic and investments in healthcare resulted in reduced mortality rates and bolstered public confidence in the government’s ability to handle future health crises.
Social welfare impact
Stimulus packages and job creation initiatives mitigated the hardships faced by vulnerable populations, ensuring a more equitable economic recovery.
Prime Minister Sheikh Hasina’s resolute leadership and pragmatic approach proved pivotal in steering Bangladesh through the treacherous waters of post-COVID economic challenges as well as challenges posed by the Ukraine war and international sanctions on Russia. Her government’s timely and strategic interventions, along with the resilience of the Bangladeshi people, fostered economic stability, growth, and social welfare. As the country moves forward, the lessons learned from this experience will undoubtedly shape policies that build a more resilient and inclusive economy, ultimately leading Bangladesh to a brighter and more prosperous future.
