Attaining 'lower middle income' status

It is no doubt a hopeful sign for Bangladesh that it has graduated from a low income status to a lower middle income one (LMIC) according to the World Bank's classification. This change in status can be attributed to a higher per capita income in recent years in the backdrop of  fairly stable economic growth. 

This transition is indicative that Bangladesh's goal to become a middle income country by 2021 may indeed be achievable, if we can keep up this consistent growth in per capita income. The World Bank's classification is based on estimates of the gross national income per capita for the previous year. In our case, last year's per capita income was higher than the Washington-based lender's set threshold.

The new status will greatly improve the image of the country as a less risky, more economically stable country which may encourage foreign investment and thereby rejuvenate the economy further.

At the same time we must also be aware of the challenges ahead as a result of this new ranking. Loans from international development organisations may come with stricter conditions as Bangladesh steps out of its low income category, which the country must be ready to tackle. We must also remind ourselves that while we are clearly forging ahead in the direction of economic progress, the rich-poor gap has actually widened, which, if not significantly reduced, will hinder sustainable development. Income inequalities must be reduced in our endeavour to be more economically robust. Only then will the notion of middle income status have real meaning.