Mixed economy Case study - Bangladesh: the importance of economic sectors over time
In 1970, Bangladesh (formerly East Pakistan) had an economy largely based on agriculture,
A high proportion of the population worked in farming either to produce crops for self-
sufficiency or to sell in local markets. Secondary manufacturing activities were relatively
unimportant and the tertiary sector was also small as incomes were very low and people
had little spare cash to spend on 'services'.
By 2011, Bangladesh had undergone significant changes. Although 40 per cent of the
workforce still works in agriculture, primary production of goods such as jute, tobacco and
food has fallen in relative terms. Manufacturing industries - notably food processing and
clothing - have expanded rapidly. Tertiary services such as telecommunications, transport
and finance now contribute approximately half of total national output.
Economic sectors in Bangladesh - World Bank estimates of % share of GDP
Primary
Secondary
Tertiary
1970
15
32
2011
23
26
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Activity 2.3
Refer to the case study above.
a) Identify and explain two possible reasons why the relative importance of primary output
has fallen.
b) Would workers who formerly worked in agriculture find it easy to obtain jobs in the
secondary or tertiary sectors of industry? Explain your answer.
c) What do you expect to happen to the relative importance of tertiary industries if incomes
continue to rise in Bangladesh? Explain your answer.