Bangladesh PRSP Forum Economic Update : Recent Developments and Future Perspectives

This report was prepared for the PRSP Implementation Forum (November 15-17), in Dhaka, Bangladesh. It covers recent macroeconomic developments and draws on recent and ongoing World Bank research and analysis undertaken in the areas of Governance, Finance and Trade, Public Administration, Infrastructure and Human Development. The report notes that Bangladesh has some impressive and sustained socio-economic trends - which outperform many South Asian and other developing countries, but formidable challenges remain notably on governance issues. However, the Government is beginning to implement a broad-based reform program to tackle governance issues, with donor support and in the area of economic management, it has maintained macroeconomic stability and pushed forward the structural reform agenda despite a difficult political environment. These efforts have produced relatively favorable development outcomes. The report specifically details Bangladesh's progress on the governance agenda, including actions to improve transparency and public expenditure efficiency, responsiveness, revenue mobilization, anti-corruption, and the justice system reform. It also focuses on progress in reducing governance impediments to improve investment climate and empowering the poor. Besides describing preliminary PRSP implementation measures, the report spotlights the country's export growth and competitiveness