Blueprint for SMART Bangladesh by 2041

 

In the relentless pursuit of progress, nations often find themselves at crossroads, faced with the challenge of harnessing the full potential of technology to drive economic growth and development. Bangladesh, with its vision for a SMART future by 2041, is emblematic of this global phenomenon. As we delve into the intricate tapestry of economic transformation catalysed by Information and Communication Technology (ICT), it becomes evident that the journey has only just begun.

A Decade of Digital Evolution

The seeds of Bangladesh's digital revolution were sown with the establishment of Union Digital Canters, a visionary initiative aimed at connecting every corner of the country to the digital network. This seemingly magical endeavour promised villagers the ability to obtain birth certificates, access government services online, and save precious time and resources.

The power of the internet was poised to rejuvenate a bureaucratic system often criticized for its sluggishness.Remarkably, over the years, Bangladesh witnessed the transformation of its bureaucracy, as bureaucrats embraced the potential of digital technology and social media. Government services underwent a remarkable conversion, with innovation becoming the cornerstone of service delivery. Private sector growth paralleled these advancements, with companies like bKash, Chaldal, Pathao, and Surokkha becoming synonymous with the digital way of life.

 A Digital Renaissance Amidst Adversity

The COVID-19 pandemic proved to be an unexpected catalyst for Bangladesh's digital journey. Lockdowns and movement restrictions led to an accelerated adoption of digital technologies across all facets of life, from banking and healthcare to education and commerce. The resilience and adaptability of the market were on full display as it swiftly responded to the surging demand for remote services.

Around the same time, HonourablePrime Minister Sheikh Hasina's government had set a deadline for the realization of Digital Bangladesh by 2021 under ‘Vision 2021’. This vision culminated in the declaration of ICT as the 'product of the year,' a strategic move to boost export earnings from the sector. The government's commitment to achieving this vision was fortified by a robust public-private partnership then.Sajeeb Ahmed Wazed, the Honourable Advisor to the Prime Minister for Information and Communication Technology Affairs, played a pivotal role in guiding this noble vision. While challenges persisted, the government made substantial strides toward its Vision 2021, turning those once-magical promises into tangible achievements.

The Roadmap to Prosperity

As Bangladesh aspired to graduate from a least developed country to a developing one, the United Nations recognized the nation's progress. The government's declaration of a SMART Bangladesh under ‘Vision 2041’ aimed to elevate the per capita income (GNI) from US$ 2,765 (FY2022-23) to US$ 12,500. This ambitious endeavour paralleled Bangladesh's commitment to achieving the Sustainable Development Goals (SDGs) by 2030, driven by the same digital revolution.

Currently, Bangladesh boasts more than 187.48 million SIM card users, with nearly 40 percent of them having mobile financial service accounts. The ICT industry contributes approximately 1.25 percent to Bangladesh's GDP directly (FY2022-23), with an estimated 13 percent indirect contribution through its enabling chain-impact. This success story is a testament to the rise in labour productivity and total factor productivity catalysed by Digital Bangladesh.

Besides, once unimagined-- the domestic Software and ITES market is valued at US$ 1.54 billion, promising further growth and employment opportunities. However, it is essential to recognize that the digital revolution is an ongoing process, requiring substantial investments in both technology and human capital. While over 25,000 students pursue computer science and related subjects in 2022, the need for skilled ICT professionals is ever-increasing as the ICT sector directly created 0.3 million jobs so far and is predicted to reach 0.5million by 2025.

Quality and Quantity: A Dual Imperative

Efforts must focus on not only increasing the quantity of ICT professionals but also enhancing their quality. Currently, an ICT resource contributes an average value addition of US$ 9,800 per year, a figure targeted to triple by 2041 through skills development. To meet ICT export target of US$ 5 billion and capture a larger share of the local market, Bangladesh must produce at least0.37million ICT professionals with global and future-ready ICT skills by 2025.

The Future Unfolds

While laying the foundation for a digital revolution was the easier part, the real challenge now lies ahead. Transforming the digital promise into a meaningful and impactful reality demands concerted effort, devotion, enthusiasm, and perseverance. Bangladesh's resilience and innovation have seen it overcome significant challenges in the past, and there is every reason to believe it will triumph once again.

As Bangladesh embarks on this journey toward a SMART Bangladesh by 2041, with its four key pillars - SMART Citizen, SMART Government, SMART Society, and SMART Economy - it does so with the understanding that the digital revolution is not an endpoint but an ongoing process. This sweeping wave of transformation will not only improve education, create jobs, and raise incomes but will also propel Bangladesh into a new era of economic diplomacy, geopolitical advancement and global relevance.

Next Economic Transformation: The Way Forward

Unlike other sectors, ICT sector’s core competitive advantage exclusively and entirely depends on human resources equipped with global and future-ready ICT skills, for which the endeavour should be made considering the following recommendations,

i.    Undertake an extensive cross-country comparative study to assess the demand for ICT skills. This study should be financed through government grants, with the Bangladesh Association of Software and Information Services (BASIS) serving as the primary implementing trade organization. The objective is to restructure the computer science education system effectively.

ii.    The national ICT competencies as administered by the National Skills Development Authority (NSDA) necessitate re-evaluation and augmentation in alignment with the dynamic requirements articulated by contemporary ICT industry stakeholders.

iii.    Commence early-stage programming and coding instruction within the primary education framework in an interactive and enjoyable manner.

iv.    Technical and Vocational Education and Training (TVET) institutions should assume a pivotal role in augmenting competencies and facilitating the adaptation of recent graduates. Modernization of TVET curricula, along with the refinement of training methodologies and the enhancement of trainer competencies, is imperative to address prevailing skill shortages.

v.    Forging synergistic partnerships between TVET institutes, the private sector, and educational institutions is of paramount importance.

vi.    Formulate targeted training initiatives designed to cultivate competencies that mitigate the concerning graduate unemployment levels prevailing in Bangladesh as the number of unemployed individuals in Bangladesh has increased to 2.59 million in the first quarter of 2023, up from 2.32 million in the last quarter of 2022.

vii.    Introduce a remunerated internship program with a monthly stipend of Taka 20,000, with the objective of facilitating the transition of participants into industry-ready professionals. This strategy, previously implemented in India, played a pivotal role in their technological advancement.

viii.    Institute a policy of offering a 15 percent supplementary wage to female ICT professionals, with the intent of motivating greater female engagement within the sector. India previously adopted a similar policy with successful outcomes.

ix.    Establish a dedicated grant fund, backed by government and developmental agencies, aimed at supporting Micro and Small-sized ICT firms in their recruitment of fresh university graduates. This fund should contribute 50 percent of the salary for the initial year of employment.

 x.    Provide income tax incentives and an easier way of enlistment in the stock market for incentivizing prominent IT enterprises to employ recent graduates.
xi.    Formulate a comprehensive roadmap inclusive of an intricate demand-supply assessment pertaining to ICT engineers. This initiative should consider the exponential expansion of the ICT industry.

In the grand drapery of economic transformation, Bangladesh has unfolded a vibrant thread woven with the promise of a SMART future, one that beckons not only progress but also prosperity. The road ahead may be long, but with unwavering commitment, Bangladesh is poised to seize the boundless opportunities that the smart-verse age offers, leaving no doubt that its brightest days are yet to come.

 
Enamul Hafiz Latifee is a Policy
& Trade Economist, Joint
Secretary (Research Fellow), Bangladesh
Association of Software and
Information Services (BASIS).