Look at the figures, and it’s easy to see why. In 2022, the country saw top-line economic growth of 7.1%, with projected growth of 5.5% in 2023, and 6.5% in 2024. Foreign direct investment is up, at $2.9 billion, while the country remains the second largest exporter of apparel in the world.
Set to become the ninth largest consumer market globally by 2030, Dhaka has seen considerable infrastructure investment in recent years, including the new Dhaka Metro and a new third terminal at Dhaka Airport. At the same time, the city maintains some of the lowest electricity and water costs in the region, with as much as 55% savings on electricity costs compared to cities such as Karachi and Beijing.
However, these strong economic fundamentals alone are not enough to power Bangladesh’s development. In order to make the most of its economic potential, Bangladesh must improve its global cultural profile, leveraging soft power into hard cash. The success stories of the late 20th and early 21st centuries -- India, Dubai, Singapore -- have all coupled improvements to their regulatory environments with an attempt to craft a compelling narrative for investors and tourists alike.
Crude as it may seem, businesses and investors are far more likely to invest in a country that feels familiar. It isn’t just Dubai’s low taxes that attract international businesses -- people identify closely with the city’s global image as a playground for the uber-wealthy, one of the world’s great beacons of modernity and modernization.
By contrast, many of the world’s potentially profitable markets are saddled with poor global perceptions and are overlooked as a result of international ignorance.
There are lessons to be learned here from Modi’s India, which has successfully used its G20 Presidency to revise the country’s global image. By emphasizing India’s Vedic heritage, and drawing on authentic expressions of Indian culture, Modi has helped India to shed its old reputation as a country of crowded streets, acute poverty, and the Taj Mahal. The world now understands that Modern India is an entirely new nation, which blends ancient history with striking modernity. That compelling narrative, coupled with strong economic fundamentals, will see billions of dollars of investment flow into the country over the coming decades.
