Bangladesh

Bangladesh is a South Asian country famous for its Bengal tigers, Bengal cats and mangrove forests. Bangladesh is a global textile manufacturing center and one of the largest exporters of textile and clothing products in the world.

General information

The official name of the state is the People's Republic of Bangladesh (PRB). The state covers an area of 148,460 km² (95th in the world). The population is approximately 171,880,859 (as of 2024 and the 7th largest population in the world).

Bangladesh is one of the most ethnically monotonous countries in the world — over 98% of the country's population are Bengalis, the remaining 2% are from the northern regions of India. Most of the country's Indian peoples — 13 tribes of different linguistic groups — live in the southeast, in the Chittagong Hill Tracts.

Islam, the state religion of the country, is professed by 89.7% of the population; Hinduism — 9.2%, Buddhism — 0.7%, Christianity — 0.3%, other religions and traditional tribal cults — 0.1%. Most Muslims are Sunni, but there are also small Shiite and Ahmadi religious groups.

Almost the entire population of Bangladesh speaks Bengali, which is the official language of the country. The Bengali language belongs to the Indo-Aryan group of languages (Sanskrit) with its own spelling. English is widely used as a second language in middle and high schools. It is also widely used in higher education and government. Historically, until 1987, laws were written in English and then translated into Bengali. Part of the population (Biharis) speaks Urdu.

The official currency of the country is the taka.

Dhaka is the capital and largest city of Bangladesh and an important transport hub connecting many parts of the country and neighboring regions of India. The Port of Dhaka is one of the largest river ports in the world; it connects the city with the interior of the country along the Buriganga River and other branches of the Ganges delta.

Dhaka is home to most of the country's industry, represented by the production of jute fiber, cotton, metalworking, food and other industries. There is a production of muslin. The region in which Dhaka is located specializes in the cultivation of jute and rice.

Chittagong is the second most populous city in the country, as well as a major industrial center. The city and its surrounding areas are home to up to 40% of all heavy industry in Bangladesh, including oil refining, steel, automobile, chemical and other industries. In addition, the production of cement, fertilizers and cables, pharmaceutical and knitwear industries, processing of agricultural products, etc. are developed.

Chittagong is also the country's largest port, accounting for up to 80% of Bangladesh's total exports and imports. Exports by sea include clothing, jute and jute products, leather, tea, and chemicals. This advantageous position of the city attracts investors. There are a large number of banks in Chittagong.

Bangladesh has lax environmental regulations and abundant cheap labor, allowing Chittagong to recycle nearly half of the world's decommissioned ships. The local ship recycling facility is considered the largest in the world.

Administratively, the state is divided into 8 regions, which consist of 64 districts (“zila”) and 489 subdistricts.

History, geography, culture, mentality

The first mention of the population of the territories of the current People's Republic of Bangladesh dates back to the 1st century BC. The Dravidian tribes settled here. By the middle of the 1st millennium BC, the first states were formed, among which the most famous Vanga (later Bengal), which became part of the Indian empires already in the second half of the 1st century BC.

The collapse of the Indian empires, which occurred between the 3rd and 7th centuries, created the preconditions for the formation of the early feudal Bengal state. For seven hundred years, Bengal was ruled by representatives of the Gauda, Palav and Sen dynasties.

The 12th century became a landmark for the current state. During this period, Arab traders and missionaries influenced the propaganda of Islam. In the 12th century, during the collapse of the Sen state, several feudal principalities were conquered by the army of the Delhi Sultanate, this served to widely spread the Islamic religion, and a significant part of the population accepted this faith.

Bakhtiyar Khilji, an Afghan commander, conquered most of Bengal in 1204. Since then, the country was ruled by the governors of the Delhi Sultanate, who by the middle of the 14th century became sultans and feudal lords.

The great Mongol Akbar conquered the Bengal region in 1567, and Dhaka (the current capital of Bangladesh) became the center of Akbar's empire.

Traders from Europe came to Bengal at the end of the 15th century. The establishment of British expansion begins in the mid-18th century.

The decisive moment for establishing a protectorate over the state of the British East India Company was the Battle of Plassey in 1757. The colonial period lasted until 1947.

After the partition of British India in 1947, the territory of East Bengal became part of Pakistan. Islamabad's attempts to impose Urdu as the state language on the Bengali population, as well as economically unequal conditions, led to the beginning of the national liberation movement and, ultimately, to the declaration of Bangladesh's independence from Pakistan on March 26, 1971. The war that followed ended on December 16, 1971 with the surrender of Pakistani troops.

The head of the new state was the leader of the NL Sheikh Mujibur Rahman, who was killed on August 15, 1975 as a result of a coup d'etat. A few months later, military dictator General Z. Rahman came to power, ruling until his death in May 1981. As a result of the coup in March 1982, General H. M. Ershad became president of the country in 1983. In December 1990, due to mass unrest, he resigned. The NPB, founded in 1979 by Z. Rahman and headed by his widow H. Zia, won the parliamentary elections in 1991 and was in power until 1996. From 1996 to 2001, the country was led by the PN government led by Sh. Hasina (daughter of Sh. M. Rahman). After the victory in the 2001 elections of the alliance consisting of the PPB, JI, the United Islamic Bloc and the PP (N. Manzur faction), H. Zia again became the prime minister of the country. On January 11, 2007, due to the aggravation of the internal political situation on the eve of the elections, President Ya. Ahmed declared a state of emergency in the country. A transitional military-technocratic government was formed, headed by F. Ahmed, which lasted two years.

The next free parliamentary elections in 2008 brought the Awami League party to power. Sheikh Hasina, the leader of this party, became the Prime Minister of Bangladesh.

Bangladesh is a small country in South Asia, located in the delta of the Ganges, Meghna and Brahmaputra rivers. The country borders India to the north, west and east, and Myanmar to the southeast. The southern borders of the state are washed by the waters of the Indian Ocean, or more precisely, the Bay of Bengal.

Most of the territory of Bangladesh is occupied by plains and floodplain lowlands formed by a multi-branch river delta. Local soils are fertile and enriched during floods. During floods, the Ganges, Teesta and Jamuna change their channels, which often leads to the erosion of agricultural land and the formation of new sandy islands.

In the northeast of the country lies the Meghna depression, which stretches from the base of the Indian Shillong plateau. In the northwest and southeast are the ridges of the Lushai Mountains and the Chittagong Mountains, and the highest point of the country, Mount Mowdok (1057 meters), is also located here.

Formed under the influence of Islam and Buddhism, the traditions of the local population surprise with their diversity. Touching a person is considered a sign of bad taste, so do not be surprised if even at a business meeting they do not offer you a hand to greet you. Despite the reverent attitude towards children, the birth of a girl in Bangladesh is considered undesirable, because when she is married off, a dowry must be provided. Weddings, like many centuries ago, are arranged by parents. True, according to modern laws, the bride and groom must confirm their desire to get married, otherwise it will be invalid.

The countryside of Bangladesh is colorful: cozy houses are built from bamboo or clay, and around them there are gardens and small ponds. If you are suddenly invited to visit, you must definitely praise the hostess and the food she prepared, and bring sweets as a gift. But you should be careful with other gifts: only the husband can give jewelry and clothes to a woman.

Power

According to the current Constitution, Bangladesh is a parliamentary republic headed by the President. The unicameral parliament in Bangladesh is called the Jatiya Sangsad and consists of 350 members.

Economy

Bangladesh has demonstrated the highest economic growth rate among all South Asian countries over the past 10 years.

In 2015, the country achieved for the first time, and over the next two three-year periods (2015-2018 and 2018-2021) maintained the minimum indicators established by the UN ECOSOC for graduation from the category of least developed countries. In November 2021, the UN General Assembly adopted a resolution endorsing the transition of UXOs to the group of developing countries by 2026. According to data updated in February 2023 by the Bangladesh Bureau of Statistics, annual per capita income increased to US$ 2,793 in 2022 (in 2021 — US$2,591). GDP growth was 7.1%, volume — $460.75 billion. Inflation rose to 8.6% (+36%), external debt — to 69.48 billion US dollars (+14.5%). At the same time, the volume of gold and foreign exchange reserves decreased — to USD 32.3 billion (-28%). Foreign direct investment for 9 months of 2022 amounted to USD 3.6 billion (+32%). Poverty level — about 25% of the population.

The service sector has the largest share in the structure of GDP (53.07%). The share of industrial production — 35.27%, agriculture — 11.66% (about 40% of the population is employed). Main cultivated crops: rice, jute, potatoes, other vegetables and fruits, tea, sugar cane, tobacco.

The volume of foreign trade in 2022 increased to 157.4 billion US dollars (+22.5%), while a further expansion of the negative balance was observed: exports amounted to about 53.5 billion US dollars, imports — $103.9 billion. The main buyers of local products remained the USA (18.3% of exports), Germany (13.6%), Great Britain (8.7%), France (6%) and Spain (5.9%), and the leading suppliers — China (21%) and India (11.7%). The structure of imports was dominated by machinery and equipment (17%), mineral fuels (16.9%), agricultural goods (16%), cotton (13%), chemical products (8.6%), metals and products made from them ( 7.2%), plastic (4.3%). Key export positions — ready-made clothing (85%), jute and jute products (2.6%), leather goods (1.8%) and seafood (1.3%).

Bangladesh ranks third in the world (after India and China) in labor exports. The volume of cash receipts from labor migrants in 2022 decreased slightly and amounted to $21.27 billion (4.6% of GDP). Funds are transferred mainly by Bangladeshis living in Saudi Arabia and other Gulf countries, as well as in the USA, UK and Malaysia.

Bangladesh is a member of the UN, the Non-Aligned Movement, the OIC, the Commonwealth of Nations, SAARC, BIMSTEC, Group of 77, ACA, CICA and ASEM, and is the Chairman of ARCIO. NRB is on the UN Human Rights Council (2022-2025), the boards of the International Seabed Agency (2021-2025) and the International Renewable Energy Agency (2023-2024), and the UN Population Fund and UN Office for Project Services (2021-2023), Food and Agriculture Organization of the UN (2022-2024).

Russia and Bangladesh

Trade and economic relations are developing on the basis of an intergovernmental agreement on economic and technical cooperation and a trade agreement of 1972. In 2017, an agreement was signed on the creation of an intergovernmental commission on trade, economic, scientific and technical cooperation (IPC). The commission's agenda includes a wide range of issues of bilateral trade, development of information technology, expansion of interaction in the energy sector, banking operations, civil aviation, fisheries, agriculture and education. Three meetings of the IPC were held: in October 2018 in Moscow, November 2019 in Dhaka and December 2021 in the VCC format.

In 2021, bilateral trade turnover exceeded the 2020 record ($2.4 billion), increasing by 23.2% and reaching $2.98 billion. Exports of Russian goods increased by 12.6% and amounted to $1.72 billion, its main items were machinery and equipment (57.6%), metals and products made from them (19.1%), food products and agricultural raw materials (17%). Imports of Bangladeshi products, represented mainly by ready-made garments (91.2%), increased by 41.3% and crossed the $1.26 billion mark. More than 600 Bangladeshi companies supply garment industry products to Russia.

In 2019, a memorandum of understanding was signed between the Eurasian Economic Commission (EEC) and the Government of Bangladesh. In December 2021, the first meeting of the joint working group on interaction was held in Moscow, chaired by the EEC Minister for Integration and Macroeconomics S.Yu. Glazyev and the Deputy Minister of Trade of Bangladesh N.M. Haq.

Since 2015, the Bangladesh-CIS Chamber of Commerce and Industry has been operating. One of her goals — increasing exports of finished clothing to Russia and the CIS countries. The organization regularly takes part in the St. Petersburg International Economic Forum.

The accreditation of the Russian Trade Representative in India, A.L. Rybas, to Bangladesh on a part-time basis in 2021 is intended to further strengthen economic ties.

The main area of economic cooperation is energy. In 2011, an intergovernmental agreement was concluded on the construction of the Rooppur NPP. — The country's first nuclear power plant, designed to strengthen the country's energy security, stabilize electricity prices and reduce Bangladesh's dependence on expensive power generation based on imported raw materials. General contractor of the project — JSC "Atomstroyexport", engineering division of the State Corporation "Rosatom". For the implementation of the project, Russia provided Bangladesh with a government loan of about $12 billion.

On November 30, 2017, a solemn ceremony of pouring the “first concrete” took place. of the first power unit (in the presence of Prime Minister Sh. Hasina and General Director of Rosatom State Corporation A.E. Likhachev), in July 2018, “first concrete” was poured into the foundation of the second power unit of the Rooppur NPP. (with the participation of Sh. Khasina and Deputy Prime Minister of the Russian Federation Yu.I. Borisov).

In October 2021, the General Director of Rosatom State Corporation visited Dhaka. A.E. Likhachev, with the participation of Prime Minister Sh. Khasina (via video link), the installation ceremony of the reactor vessel of the first power unit of the station took place. In December, work began on creating a physical protection system for nuclear power plants.

A number of Russian companies are participating in the implementation of the project: TVEL JSC, Rosenergoatom Concern JSC, Inter RAO-Engineering LLC, Rosspetsenergomontazh Trust LLC. More than 4,800 citizens of the CIS countries work at the NPP construction site.

Gazprom EP International is making its contribution to meeting Dhaka's growing energy needs. Since 2012, the company has designed and constructed 17 appraisal, exploration and production wells in eight fields in Bangladesh. As a result, total gas production in the country increased by more than 10%. The Russian company cooperates with the Bangladesh Hydrocarbon Exploration and Development Company (BAPEX) and subsidiaries of the National Oil and Gas Corporation Petrobangla. Currently, Gazprom EP International and "Petrobangla" are discussing full-scale cooperation, including investments, exploration and development of fields, construction of infrastructure, as well as the creation of a joint venture. In July 2021, the parties agreed on another project to drill three gas wells.

Company LLC "Inter RAO-Engineering" completed a major overhaul of the Gorazal thermal power plant and "Siddirganj", which significantly increased the service life of thermal power plants, as well as increased the reliability of power supply to consumers.

Moscow and Dhaka are exploring new promising areas of interaction. Cooperation in the field of information technology, telecommunications and cybersecurity is actively developing. Strong positions in the rapidly developing Bangladeshi market are occupied by such Russian brands as “Kaspersky”, “Ollo” and “Ollo”. and "RealVU". The main shareholder of the local mobile operator Banglalink Digital Communications Ltd. is a transnational holding of Russian origin, VimpelCom.

February 2, 2022 JSC Glavkosmos (part of the Roscosmos State Corporation) and the Bangladeshi state satellite company entered into a Memorandum of Cooperation in the field of promoting products and services of the Russian rocket and space industry in the territory of the Russian Republic of Belarus, including the creation of the Bangabandhu-2 Earth remote sensing satellite system.

Business climate

Bangladesh — This country, which has been developing rapidly over the past decade, is on its way to becoming Asia's next tiger. Economic and political stability guides the state into the future. Bangladesh is currently the 41st largest economy and will become the 25th largest economy by 2035.

Besides being home to a booming domestic market, Bangladesh is also a strategic hub linking India, China and ASEAN countries.

Young Bangladeshis are driving a surge in labor force growth and supporting industrialization and consumption.

Bangladesh has implemented mega projects to accelerate industrial growth and take full advantage of its strategic location.

• The coastline is 580 km long, 90% of international trade is carried out through the ports of Chittagong and Mongla.
• 10 operational land ports connecting various states of neighboring India
• Deep-sea ports — Matarbari and Payra ports will be completed by 2025.
• 3 international and 5 domestic airports.
• 22,418 km of roads and an extensive network of good quality roads.
• 2955 km of railways widely connecting the eastern part of Bangladesh.
• 3 Asian Highways — AH1, AH2 and AH41 connecting India and Myanmar
• Part of regional highways such as SASEC, IMSTEC and SAARC.

Bangladesh has the most liberal investment regime in the region, characterized by a wide range of incentives, attractive incentive policies and consistent reforms. Investment Development is one of the 10 Special Initiatives of the Honorable Prime Minister of Bangladesh.

• Tax exemption, possible tax reduction depending on industry type and location.
• Investments are protected by the Foreign Private Investment Promotion and Protection Act of 1980.
• 100% foreign ownership is allowed in almost all sectors.
• Simplified procedure for issuing work permits to foreign citizens.
• Customs warehouses for export-oriented industries.
• Intellectual property rights are protected by law.
• Equal treatment of domestic and foreign investments.
• Bilateral investment treaties (BITs) with 31 countries.
• Double Tax Agreements (DTT) with 36 countries.
• Signatory of 4 contracts with investment provisions (TIP) and 20 investment instruments (IRI).

Investment climate

With strong economic growth, a large, young and hardworking workforce, a strategic location between major markets in South and Southeast Asia, and a vibrant private sector, Bangladesh continues to attract more investment.

Relying on a young workforce and growing consumer base, Bangladesh has achieved stable annual GDP growth of over 6% over the past decade, barring the COVID-induced economic downturn in 2020. Much of this growth continues to be driven by RMG's ready-to-wear industry. The country's RMG exports increased by over 30% year-on-year in FY2021 as global demand for apparel products accelerated following the COVID shock.

The government of Bangladesh is actively seeking foreign investment. Sectors with strong foreign investment include agribusiness, apparel/textiles, leather/leather goods, light manufacturing, energy, electronics, lighting, information and communications technology (ICT), healthcare, medical devices, pharmaceuticals, shipbuilding, and infrastructure.

The country has made gradual progress in reducing some restrictions on investment, including taking steps to ensure reliable electricity supplies. Government efforts to improve the business environment in recent years have been promising.

Government policies in the ICT sector are still under development. Current policy gives the government broad powers to intervene in this sector.

Business and investment support structures

In Bangladesh, there are various business and investment support structures aimed at attracting foreign capital and developing the national economy. Here are the main ones:

1. Bangladesh Investment Development Authority (BIDA). Bangladesh Investment Development Authority (BIDA) is the central body responsible for attracting investments into the country. BIDA's main features include:

• Registration and support of investors.
• Providing advice and information.
• Support in obtaining the necessary permits and licenses.

2. Bangladesh Export Processing Zones Authority (BEPZA). Bangladesh Export Production Zones Authority (BEPZA) operates designated zones where investors can enjoy tax and other incentives. Key benefits include:

• Exemption from income tax.
• Preferential customs tariffs.
• Easier access to infrastructure and utilities.

3. Bangladesh Economic Zones Authority (BEZA). Bangladesh Economic Zone Authority (BEZA) is responsible for establishing and managing economic zones throughout the country that offer:

• Tax benefits.
• Support in infrastructure development.
• Easy access to resources.

4. Bangladesh Bank. The Central Bank of Bangladesh plays an important role in regulating the financial sector and supporting businesses by offering various financing and lending programs, including:

• Special credit lines for small and medium-sized businesses.
• Financing of projects in priority sectors of the economy.

5. Export Promotion Bureau (EPB). The Export Promotion Bureau (EPB) promotes the development of Bangladesh's export opportunities through:

• Organization of trade exhibitions and missions.
• Support for exporters in certification and standardization of products.
• Providing information on international markets.

6. Public Private Partnership Authority (PPPA). The Public-Private Partnership Authority (PPPA) encourages the development of infrastructure projects through public-private partnerships by offering:

• Support in the development and implementation of projects.
• Financial and non-financial incentives for private investors.

7. Small and Medium Enterprise Foundation (SMEF). The Small and Medium Enterprises Support Fund (SMEF) is engaged in the development of SMEs through:

• Training and consulting programs.
• Financial support and microcredit.
• Assistance in developing business plans.

These structures play an important role in creating an enabling environment for business and attracting investment in Bangladesh, contributing to the economic growth and development of the country.