Foreword I do not claim to have read the manuscript Of Changes and Transformations: Bangladesh Bank [July 2009-June 2013] highlighting changes the central bank has gone through in the past four years, but certainly had a cursory look at it. The publication of the book is of great significance at a time when the present government has just completed its four years in office. I welcome this initiative by Bangladesh Bank. I would like to thank Governor Dr. Atiur Rahman and others concerned with the project. The effort put in by the editors and their team of script writers to enrich the volume is certainly praiseworthy. I am extremely delighted to have the opportunity to write few words upon the book. Here I would like to touch upon the key aspects of the revolutionary changes that I have witnessed in Bangladesh Bank during the past four years. Firstly, digitization has taken place rapidly in the central bank and the whole banking sector was quick to follow suit. Secondly, mobile banking has been introduced and expanded significantly. This process will come its fruition with the introduction of PayPal payment system. Thirdly, revolutionary changes have taken place in CSR. Fourthly, Bangladesh Bank has achieved commendable success in financial inclusion program. Bangladesh Bank's role in involving the mass people into financial activities is undeniable. Finally, the establishment of Currency Museum is a great initiative of Bangladesh Bank. I would now like to say a few words on the economic condition of the country. Under the visionary leadership of the father of the nation Bangabandhu Sheikh Mujibur Rahman, an independent and sovereign Bangladesh emerged in the world map 42 years ago with a view to achieving political and economic freedom of the Bangalees. To complete the unfinished task of economic freedom of Bangabandhu, present government is implementing the charter of change 'Vision 2021'. As depicted in this vision, state of the art technology and higher growth will be the driving force of Bangladesh economy. Poverty will come down to a minimum level; education and healthcare will be ensured for all; people's creativity and competence will flourish massively. The country vii will be a 'Digital Bangladesh' with the innovative use of information technology. Thus along the new journey of development and prosperity, Bangladesh will be turned into a middle income country within 2021. The present government began its journey on January 6, 2009 with many challenges to face. The global economy was going through turmoil and downturn. Prices of all kinds of goods including food and fuel were on the rise. In order to confront the crisis, present government had undertaken multifarious actions immediately after taking the charge. To build a hunger-free, happy, prosperous, peaceful and digital Bangladesh, the government is working hard for last four years and has remained vigilant in materializing the dream of a digital Bangladesh. The achievements are not insignificant. Although success could not be ensured in implementation of all the promises made in the vision, the journey towards success remains upbeat and un-faltered. The government of Sheikh Hasina has not deviated from the track in implementing the targets set in the vision despite numerous global and domestic shocks. However, the journey of fulfilling the dreams is not smooth. It is not possible either to remove all the obstacles within only four years. In this perspective, government has formulated suitable policies and strategies on the basis of priority to solve these problems. The government's widespread activities are accomplished to maintain macroeconomic stability, increase investment in public and private sectors and reach the level of broad-based inclusive growth. These activities are moving Bangladesh towards progress. After the great liberation war in 1971, most of the international economists had doubt about the possibility of economic progress in war-ravaged Bangladesh. The country was termed as a 'bottomless basket' and 'test case for development'. After 42 years, the socio-economic development of Bangladesh is being praised globally. The image of Bangladesh has increased manifold in the world. Various international agencies have termed this advancement as a great achievement. They are appreciating the economic management of Bangladesh. Our motherland is being viewed as a country of immense prospects now and considered as a role model for development in the world. Despite global economic slowdown, the economy of the country is in a strong condition today. Every indicator of macro economy remains in the positive side. Bangladesh's economic growth has been keeping pace in line with other emerging and developing countries. Bangladesh is the fifth country among top five of the world in achieving long term growth. viii We attained 6.22 percent growth on an average in the last four years. After the assumption in power of present government, the size of revised budget was Tk. 880.64 billion in FY 2008-09 while the original budget in the current FY 2012-13 has increased almost double to Tk. 1,917.38 billion. In the seventies and eighties, the annual development budget of the government was almost fully dependent on foreign debts and grants. In the recent years, this dependence has come down below one-third level. Bangladesh continues to enjoy surplus in the current account of balance of payment. It means that Bangladesh has been able to eliminate the difference between export income and import payments. In the last four years, the average export income was USD 19.8 billion. In volume, it has increased by 2.8 times compared to the same duration of the past government. Alongside export income, average import payments also were USD 28.8 billion in the last four years. In FY2007-08, the export income and import payments were USD 14.1 billion and USD 19.5 billion respectively while in FY 2011-12, they stood at USD 24.2 billion and USD 35.5 billion. This vast volume of export-import proves the capability of Bangladesh economy. During last four years, 2.04 million people were employed abroad, which is more than twice the number employed by the former government in the corresponding time. Inward remittance was USD 11.3 billion on an average in those four years. Bangladesh set a new record in remittance income in 2012 receiving USD 14.2 billion. Foreign exchange (FX) Reserve has already exceeded the milestone of USD 14 billion in early March 2013 which was USD 5.7 billion only immediately before our government took charge in 2008. Prevailing inflation rate is within a comfortable single digit. Bangladesh is self-sufficient in foods and clothes now. Bangladesh has achieved almost a status of self-sufficiency due to increased productivity in agriculture. In FY 2007-08, the production of food grains was 31.1 million metric ton which increased in FY 2011-12 to 35.2 million metric ton. We have a satisfactory level of food reserve after meeting up the domestic needs. Bangladesh Bank is formulating a balanced monetary policy to curb the overall demands and government is also supporting this in its budget implementation. Domestic production is increasing as credit flow to the productive sectors, particularly term industry credit and SME credit, has been augmented and its proper use has been ensured. I hope that these steps will play a positive role in containing inflation and attaining higher growth. ix There is no alternative to technology in sustaining socio-economic development. This is why, the present government has set the target of building a 'Digital Bangladesh' within 2021. As a result of the measures taken by the government in these four years, a silent revolution has taken place in the information technology (IT) sector of the country. IT application has been ensured in all the economic activities including banking. This book reflects the fact that Bangladesh Bank has advanced a lot in digitization. All the activities in Bangladesh Bank like banking, recruitment and tendering process etc. are done online. After e-Banking, comes e-Commerce. Automated clearing house, electronic funds transfer, national payment switch have been introduced. About 5 million people are enjoying the benefits of mobile banking service. If the same pace continues, Bangladesh will truly turn into a 'Digital Bangladesh' completely. In a nutshell, investment, production, export income, manpower export and remittance income have increased in the country. Extensive employments have been generated. Present government has given highest priority to rural and agricultural sector from the very beginning of its tenure. Significant progress has been made not only in crops sector but also in overall agricultural production. The momentum of all kinds of activities in rural life apart from agriculture has created a large market and enormous demand in the country. Rural economy has got invigorated. Inequality between rich and poor is gradually decreasing accompanied by declining poverty rate. Literacy rate, per-capita incomes have increased; growth rate of population has diminished. These advancements in the socio-economic indices have brightened the image of the government and the country in the international arena. And this book is a testimony of the fact that behind these achievements, Bangladesh Bank, as a central bank, has been playing a unique role. The initiatives of Bangladesh Bank, as pointed out in this book, are the successes of Bangladesh Bank i.e. Bangladesh government. Congratulations to Bangladesh Bank. In conclusion, I would like to say, the bright prospect that has been created for economic freedom of Bangladesh must be continued. We hope to maintain our economic stability and continue with growth rate in future as well. If we would like to improve on the current economic situation and see the country progress further, political stability is desired most.