Bangladesh is at a turning point in its history, and the population’s demographic composition offers a special chance to quicken social and economic advancement. Bangladesh, a country of more than 170 million people, has a young population that makes up more than one-third of the population, making it a formidable instrument. This advantage in terms of population, known as the “demographic dividend,” can be a major catalyst for advancement. To fully realize the demographic dividend, though, careful policy preparation, strong governance, and ongoing human capital investment are needed.
With its independence in 1971, Bangladesh has advanced significantly in many areas, and a large part of these accomplishments may be attributed to the country’s young population. The nation has effectively transformed over the past 50 years from a war-torn country facing numerous difficulties to one that currently has one of the fastest-growing economies in the world. Bangladesh’s GDP has grown steadily during the past ten years, averaging more than 6% annually, partly because of the labor contributions of its young population. Millions of young people, mostly women, are employed in the garment and textile sector, which has become a vital element of the nation’s economy. The nation is now the world’s second-largest exporter of ready-made garments, after China, thanks to this industry alone. The poverty rate fell from 44.2% in 1991 to 20.5% in 2019, demonstrating the nation’s impressive achievement in eradicating poverty.
The younger generations, who have also profited from expanded access to education, career training, and microfinance options, are partly credited for this decline in the poverty rate. One important source of foreign currency is the remittances sent home by young Bangladeshi overseas residents. Bangladesh’s foreign reserves, which peaked in August 2021 at USD 48.06 billion, are directly bolstered by these remittances. The country’s total GDP growth is aided by remittances, which significantly contributed to the 7.2% GDP growth in the fiscal year 2021-2022.
Bangladesh has improved education dramatically, particularly in primary and secondary education. The percentage of young people who are literate has increased significantly, rising to 95.2% for females and 79.5% for males. Due to the government’s emphasis on gender equality and universal education, there is now a larger and more competent labour population that can compete on the global market.
Bangladesh’s youth have also played a significant role in bringing about social change, from promoting women’s rights to pressuring for improvements in healthcare, education, and governance. Young people’s grassroots movements have been critical in promoting political consciousness, calling for accountability, and igniting change. The youth-driven ICT sector has experienced exponential growth. Millions of jobs have been created by the digital economy, particularly with the rise of start-ups, app development, and freelancing.
The Oxford Internet Institute lists Bangladesh as one of the top 10 outsourcing destinations in the world right now. In Bangladesh, there are more than 650,000 registered freelancers. By 2024, Bangladesh aims to earn $5 billion from IT exports, much of which will stem from its young digital workforce. The government’s initiatives have made it easier for young professionals and tech-savvy businesses to succeed in the global digital economy.
Despite these achievements, the demographic dividend could turn into a burden if not harnessed effectively. There are several key challenges. Despite Bangladesh’s remarkable economic progress over the last three decades, a large number of young people are either unemployed or trapped in underemployment-a condition where they are not making the most of their abilities in their work. Over 2.6 million people are unemployed, with a significant portion being young individuals. An estimated 2.15 million young people between the ages of 15 and 29 are unemployed.
Underemployment in the agricultural industry is common in rural areas, where many young people take temporary jobs that do not provide long-term stability or steady income. Consequently, they migrate to cities and often find themselves in low-paying jobs far from the aspirations of higher education.
Although the youth comprise the majority of the labor force, there are significant gaps between the skills young people possess and those employers seek. Poor communication between employers and educational institutions, along with vocational training programs that often fall short of industry standards, exacerbate this issue. Around 82% of young Bangladeshis aged 15-29 express a desire to leave the country, indicating the scale of potential future migration. The brain drain particularly affects professions like doctors, engineers, teachers, and agricultural researchers, impacting the economic and social structure. As a result, potential innovators, entrepreneurs, and skilled labourers who could support domestic growth are lost.
Comprehensive measures to invest in youth and prepare them for the challenges of the 21st century and the Fourth Industrial Revolution (4IR) are required for Bangladesh to harness its demographic dividend and achieve developed nation status. Bangladesh must significantly improve its educational system to better align with contemporary economic demands. STEM education should be prioritized, alongside vocational training programs that address both domestic and foreign employment markets.
Successful dual education programs, as seen in Germany and Switzerland, could provide a model for integrating classroom learning with practical vocational training in Bangladesh, particularly in high-demand sectors. The higher education curriculum needs immediate revision to incorporate industry-relevant courses and skills development. Partnerships with industries, internships, and apprenticeships should be integral to the university experience, providing students with practical experience and a deeper understanding of workforce requirements. Emphasizing research and inviting foreign campuses could also enhance the educational landscape. Young Bangladeshis should be incentivized to pursue entrepreneurship through grants, loans, and startup incubators. Prioritizing innovation-driven sectors, particularly in the digital and green economies, will support sustainable development and create jobs.
Public-private partnerships should foster entrepreneurship, especially among women and marginalized groups. In today’s digital world, expanding internet connectivity and ensuring access to affordable digital devices are essential. Government-led initiatives to improve digital infrastructure, such as tech parks and high-tech industries, can empower the next generation to engage in the global digital economy. Focused short training programs in IT can close the skills gap for the outsourcing industry. Areas like digital marketing, graphic design, software programming, and web development need specific instruction to ensure young people are well-prepared for high-quality work in the global market.
A robust labour force is crucial for long-term economic growth. Expanding young people’s access to mental health services, nutrition programs, and reproductive health services is vital for maximizing the demographic dividend, as improved health will raise productivity and quality of life. Gender parity has been a significant factor in Bangladesh’s progress. Continued focus on empowering young women through equal educational and employment opportunities will foster a more inclusive society and contribute to overall economic development. Actively involving young people in government and policymaking is essential for utilizing the demographic dividend effectively. Supporting young leadership initiatives and civic engagement will ensure that policies reflect the needs and aspirations of the youth.
Lastly, one may argue that Bangladesh’s demographic dividend presents an exceptional opportunity for rapid social and economic change, but only if the country’s youth reach their full potential. The transition from a low-income to a middle-income status is evidence of the tenacity, vibrancy, and diligence of its youthful populace. In order to achieve sustainable growth, Bangladesh must now make strategic investments in its human resources and foster an environment that supports skill development. With its youthful people setting the example, Bangladesh can ensure its position as a developed country in the twenty-first century by achieving this. It is late, but we must start without further delay.
The writer is a columnist, social observer and strategic thinker. He works as Senior Assistant Director at Strategic Planning, Quality Assurance Division, University Grants Commission of Bangladesh (UGC).
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