PERSPECTIVE PLAN OF BANGLADESH 2010-2021 ____________________________ MAKING VISION 2021 A REALITY General Economics Division Planning Commission Government of the People’s Republic of Bangladesh April 2012 Contents ABBREVIATIONS ............................................................................................................................... v PREAMBLE of the Perspective Plan (2010-2021) ............................................................................ 1 I. ............................................................................................................... Context of the Perspective Plan .................................................................................................................................................................. 1 II. .......................................................................................... Current state and Development Perspective .................................................................................................................................................................. 1 EXECUTIVE SUMMARY .................................................................................................................... 2 CHAPTER 1: VISION FOR A PROSPEROUS FUTURE ........................................................................ 10 1.1 The Vision .......................................................................................................................................... 10 1.2 A Promoting Democratic Institutions ............................................................................................... 10 1.3 Promoting Gender Balance ............................................................................................................... 11 1.4 Technical Framework for Achieving Middle Income Country Status ................................................ 11 1.5 Development Priorities ..................................................................................................................... 11 1.6 Making Vision 2021 a Reality ............................................................................................................ 14 CHAPTER 2: INSTITUTIONAL FOUNDATIONS OF STABILITY AND PROSPERITY ............................. 15 2.1 Institutional Foundations of Governance ......................................................................................... 15 2.2 Development Governance ................................................................................................................ 15 2.3 The Civil Service ................................................................................................................................ 16 2.4 Local Governance .............................................................................................................................. 16 2.5 The Private Sector and Civil Society .................................................................................................. 17 2.6 Anti -Corruption Movement ............................................................................................................. 17 2.7 Towards Fast-Track Governance ....................................................................................................... 18 CHAPTER 3: TOWARDS MIDDLE INCOME ECONOMY ................................................................... 18 3.1 Strategic Goals .................................................................................................................................. 19 3.2 Macroeconomic Framework ............................................................................................................. 19 3.3 Public Revenue and Expenditure strategy ........................................................................................ 21 3.4 Inflation control ................................................................................................................................ 21 3.5 Monetary Management for growth and stability ............................................................................. 21 3.6 Exchange rate policy for external stability ........................................................................................ 22 3.7 Investment to boost productivity and growth .................................................................................. 23 3.8 Savings mobilization for higher investment...................................................................................... 24 3.9 Reducing Poverty and Inequality ...................................................................................................... 24 CHAPTER 4: STRATEGY FOR FOOD SECURITY: AGRICULTURE AND RURAL DEVELOPMENT ........ 27 4.1 Strategic goals ................................................................................................................................... 27 i 4.2 Crop Sector ........................................................................................................................................ 27 4.3 Fisheries ............................................................................................................................................ 29 4.4 Livestock and Poultry ........................................................................................................................ 30 4.5 Forestry ............................................................................................................................................. 31 4.6 Rural Development and Institutions ................................................................................................. 32 4.7 Water Resource Management .......................................................................................................... 34 CHAPTER 5: INDUSTRIALIZATION IN A COMPETITIVE WORLD ..................................................... 36 5.1 The Challenges .................................................................................................................................. 36 5.2 Targets, Strategies and Policies for the Manufacturing Sector ........................................................ 36 5.3 Strategic Policies for the Manufacturing Sector ............................................................................... 37 5.4 Exports – the driver of manufacturing growth ................................................................................. 39 5.5 Challenges and Future Direction of Trade Policy Reforms ............................................................... 43 CHAPTER 6: OPPORTUNITIES FROM GLOBALIZATION AND REGIONAL COOPERATION ............... 47 6.1 Globalization and Bangladesh ........................................................................................................... 47 6.2 Remittance Inflows ........................................................................................................................... 47 6.3 Foreign Direct Investment ................................................................................................................ 48 6.4 Addressing the Multilateral Trading Regime .................................................................................... 49 6.5 Strengthening Regional Cooperation ................................................................................................ 51 CHAPTER 7: TOWARDS A DIGITAL BANGLADESH BY 2021 ........................................................... 54 7.1 Knowledge Economy ......................................................................................................................... 54 7.2 ICT and Science and Technology for National Development ............................................................ 54 7.3 Constraints to ICT related activity and priorities: ............................................................................. 55 7.4 Issues Relating to ICT and Digital Bangladesh ................................................................................... 56 7.5 E-governance .................................................................................................................................... 56 7.6 Strategic goals for the long-term ...................................................................................................... 57 CHAPTER 8: ENERGY SECURITY FOR DEVELOPMENT.................................................................... 58 8.1 Energy Strategy for the long-term .................................................................................................... 58 8.2 The Present Electricity Situation ....................................................................................................... 58 8.3 Energy Security and Electricity for all by 2021 .................................................................................. 59 8.4 Demand for Electricity ...................................................................................................................... 60 8.5 Supply of Electricity ........................................................................................................................... 61 8.6 Contribution of the Private Sector to Power Generation ................................................................. 61 8.7 Energy Mix for the long-term............................................................................................................ 62 8.8 Non-traditional/Renewable Energy .................................................................................................