Globalization and Bangladesh
Introduction
Globalization is the process of increased interconnectedness and interdependence among countries,
driven by the flow of goods, services, information, technology, and capital across borders. For
Bangladesh, globalization has been a double-edged sword, offering immense opportunities for
economic growth while presenting significant challenges in areas like governance, inequality, and
sustainability. This assignment explores how globalization impacts Bangladesh through the lenses of
multinational corporations (MNCs), global financial institutions, human resource development, and its
overall effects.
1 Multinational Corporations (MNCs)
Multinational corporations play a pivotal role in globalization by operating in multiple countries and
facilitating the exchange of goods, services, and investment. In Bangladesh, MNCs are particularly
prominent in sectors like textiles, telecommunications, and consumer goods.
1.1 Positive Impacts:
➢ Job Creation: MNCs provide employment opportunities, especially in the Ready-Made
Garment (RMG) sector, which employs millions of workers, primarily women.
➢ Technology Transfer: MNCs introduce modern technologies and management practices,
fostering innovation and efficiency in local industries.
➢ Economic Growth: Foreign Direct Investment (FDI) from MNCs contributes significantly to
Bangladesh’s GDP growth and infrastructure development.
1.2 Negative Impacts:
➢ Labor Exploitation: Workers in sectors dominated by MNCs often face low wages, poor
working conditions, and a lack of labor rights.
➢ Profit Repatriation: A substantial portion of profits earned by MNCs is repatriated to their
home countries, limiting economic benefits for Bangladesh.
➢ Market Dominance: MNCs can overshadow local businesses, making it difficult for domestic
companies to compete.
2 Financial Institutions and Their Accountability: WB,
IMF
The World Bank (WB) and the International Monetary Fund (IMF) are key players in the financial
aspect of globalization, offering loans, policy advice, and technical assistance to countries like
Bangladesh.
2.1 World Bank (WB):
❖ The World Bank has funded major infrastructure projects in Bangladesh, including bridges,
roads, and rural development initiatives.
❖ Criticism arises over the environmental and social impact of these projects, including
displacement of communities and inadequate compensation.
2.2 International Monetary Fund (IMF):
❖ The IMF provides financial support to stabilize Bangladesh’s economy during crises, such as
balance-of-payment deficits.
❖ However, IMF-imposed austerity measures can lead to cuts in social spending, affecting
education, health, and welfare programs.
2.3 Accountability Issues:
❖ Both institutions face criticism for promoting policies favoring privatization and liberalization
without adequately considering local contexts.
❖ Their decision-making processes are often viewed as skewed toward the interests of developed
nations, marginalizing the voices of countries like Bangladesh.
3 Human Resource Development
Globalization has emphasized the importance of developing human resources to compete in an
interconnected world. For Bangladesh, this involves education, skill development, and healthcare
improvements.
3.1 Advancements in Education:
➢ Access to international knowledge and online platforms has expanded opportunities for higher
education and vocational training.
➢ Collaboration with international organizations has improved educational infrastructure and
curricula.
3.2 Skill Development:
- The government, with support from global initiatives, has launched programs to equip the workforce
with skills required for export-oriented industries and overseas employment.
Challenges:
➢ Brain Drain: Highly skilled individuals often migrate to developed countries, creating a talent
gap in Bangladesh.
➢ Unequal Access: Rural and marginalized communities face barriers in accessing quality
education and training, perpetuating inequality.
4 Effects of Globalization
The overall effects of globalization on Bangladesh are multifaceted, encompassing economic, social,
and cultural dimensions.
4.1 Economic Effects:
➢ Growth in Exports: Bangladesh’s RMG sector has flourished, making it one of the largest
garment exporters globally.
➢ Dependence on Global Markets: Fluctuations in global demand, such as during the COVID-19
pandemic, expose the economy to risks.
4.2 Social Effects:
➢ Empowerment of Women: The RMG sector and other globalization-driven industries have
increased women’s participation in the workforce.
➢ Cultural Exchange: Globalization has introduced new ideas, lifestyles, and cultural practices,
enriching Bangladeshi society but also raising concerns about cultural homogenization.
4.3 Environmental Effects:
➢ Rapid industrialization driven by globalization has led to environmental degradation, including
pollution, deforestation, and challenges in waste management.
➢ Global collaboration on climate change has encouraged Bangladesh to adopt green policies and
renewable energy projects.
Conclusion
Globalization has brought significant opportunities for Bangladesh, including economic growth,
technological advancements, and improved global integration. However, it also poses challenges such
as economic inequality, environmental degradation, and dependence on external markets. To maximize
the benefits and minimize the downsides, Bangladesh must adopt policies that ensure fair labor
practices, strengthen local industries, and invest in sustainable development. By balancing the forces of
globalization with national interests, Bangladesh can achieve long-term progress and resilience in a
rapidly changing world.
