Bangladesh’s SMART Initiative Can Save South Asia’s Economies

By Naheed Nazrul Sitara

Bangladesh is one of the wealthiest countries in South Asia. Second only to India in GDP, Bangladesh is positioned to be the region’s new powerhouse. The South Asian country has only been independent for about 50 years but has evolved more than many of its neighbors and will continue to do so. By 2041, the government’s SMART (Sustainable, Mindful, Adaptive, Resilient, and Tech-driven) initiative will transform Bangladesh completely. While the country navigates this process, all of South Asia should be inspired to invest in similar programs.

Despite Bangladesh being 22 times smaller than India, the nation may soon overtake its Western neighbor. For decades India has had the largest economy and population in South Asia. But in the 21st century, Bangladesh is becoming the underdog no one saw coming. The small country’s FDI increased 37% last year, almost six times more than the previous year. Bangladesh surpassed India’s GDP in 2020 and has steadily risen to be the world’s 35th-largest economy.

If Bangladesh successfully integrates the government’s SMART initiative, the world will see Afghanistan, Sri Lanka, and other South Asian countries follow in their footsteps. Sustainability, wealth, and increased security will be cornerstones of the region’s developing economies, which will have global impacts.

For Bangladesh’s dream to become a reality, the country must address political turmoil, inflation threats, and foreign aid dependence. The country may be more economically stable than surrounding areas, but the government just took an IMF loan for $4.7 billion because of inflation. While every country has been affected by the Russian-Ukrainian war, the road to first-world success is long. Thankfully, the current marketplace is promising. The country’s biggest port may soon receive a $240 million investment from a prominent Saudi company. Japan may open an industrial hub too.

The SMART initiative, spearheaded by Prime Minister Sheikh Hasina, plans to build a smart government, economy, population, society, and workforce. To achieve this ambitious goal, embracing technology and harnessing its transformative potential has become crucial. As advanced as South Asia and Bangladesh have become, the area must improve digitization. Due to societal norms and geographic limitations, rural communities and women in Bangladesh are less connected than their metropolitan counterparts. But a growing culture of innovation, digital infrastructure investments, and digital literacy education through SMART should fix this inequity.

SMART is improving sectors such as education and healthcare, aiming to alleviate a burdened system and introduce modern technology. The Bangladeshi government is trying to increase digital resources across educational institutions. Since many other countries have already benefited from these changes, Bangladesh will surely see a boost in their test scores and literacy rates.

In healthcare, technology integration is paramount for serving Bangladesh’s giant population. Their capital alone has 10 million plus inhabitants. Many Bangladeshis can’t afford healthcare without putting a strain on their finances. But somehow, the country has handled COVID and climate problems surprisingly well, meaning that every sector can become successful with SMART’s integration.

Despite having little funding for climate resilience programs, Bangladesh has been named an economic miracle. The World Bank said the country reduced cyclone-related deaths by 100-fold. Early-warning systems have also advanced over the years. Google has even created a flood forecasting platform for Bangladesh and areas of India.

Since the country is among the top 10 most vulnerable climate countries, Bangladesh and the SMART initiative have been working hard to protect its garment and agricultural industries. Both have pulled millions out of poverty, particularly the garment sector. Textile production produces 28% of Bangladesh’s GDP while agriculture contributes about 12%.

As Bangladesh evolves its SMART vision, the country will be inspirational for other South Asian nations seeking to leverage technology and innovation for sustainable growth and comprehensive development. The Bangladesh model demonstrates that any developing country can achieve sustainable progress and wealth if enough government resources and policy supports it.

If the rest of South Asia creates innovative frameworks like SMART, the world will have access to lucrative investments. South Asia already has a skilled labor force, geographic connectivity, and natural resources that all investors want their share of. Bangladesh's SMART vision would allow the country to move out of India’s shadow and help its neighbors wean themselves off foreign aid. After all, the 21st century has been declared the century of Asia. Asia will be pioneering markets and setting global standards that the world will follow. South Asia should be part of this movement, but Bangladesh’s SMART initiative is the only feasible way other countries within this region will have a blueprint for success.

About the Author

Naheed Nazrul Sitara is a community leader and activist for social security, immigration, education, and women empowerment through her non-profit organization NEBAF