British India and then of Pakistan, the area now constituting Bangladesh suffered from chronic economic neglect. The region produced large quantities of agricultural goods, including most of the world’s jute, but received little investment in such basic items as transportation facilities and industrial plants. Bangladesh’s gross domestic product was estimated at $46 billion in 1999. In 1992 Bangladesh’s budget was estimated to include $2.8 billion in revenues and $4.1 billion in expenditures.
Bangladesh is overwhelmingly agricultural, with some three-fifths of the population engaged in farming. Jute and tea, which are principal sources of foreign exchange, follow rice as the most important agricultural products. The country produces about one-fifth of the world's supply of raw jute. Other important agricultural products are wheat, pulses (leguminous plants, such as peas, beans, and lentils), sweet potatoes, oilseeds of various kinds, sugarcane, tobacco, and fruits such as bananas, mangoes, and pineapples.
Despite sustained domestic and international efforts to improve economic and demographic prospects, Bangladesh remains one of the world's poorest, most densely populated, and least developed nations. Although more than half of GDP is generated through the service sector, nearly two-thirds of Bangladeshis are employed in the agriculture sector, with rice as the single most important product. Major impediments to growth include frequent cyclones and floods, inefficient state-owned enterprises, inadequate port facilities, a rapidly growing labor force that cannot be absorbed by agriculture, delays in exploiting energy resources (natural gas), insufficient power supplies, and slow implementation of economic reforms. Reform is stalled in many instances by political infighting and corruption at all levels of government. Even so, Prime Minister Sheikh HASINA's Awami League government has made some headway improving the climate for foreign investors and liberalizing the capital markets. Progress on other economic reforms has been halting because of opposition from the bureaucracy, public sector unions, and other vested interest groups.
