Development Pathways: India -Pakistan-Bangladesh (1947-2022)

Development Pathways presents evidence-based comparative analysis of economic and social developments in India, Pakistan and Bangladesh since they gained independence in 1947. Pakistan was further subdivided in 1971 when Bangladesh became independent. In 1947 these countries were mired in poverty, illiteracy, poor health status, underemployment, and rudimentary infrastructure. There was tremendous pessimism about the future economic sustenance of these countries.

Development pathways adopted by these countries differed significantly but each went through paradigm shifts in policies since 1990. All three countries started their journey with centrally planned state control of the economy. Pakistan switched back and forth from liberalization, nationalization again to liberalization. Institutional decay and frequent political changes resulted in a fast growing economy in the first 40 years becoming a laggard in the last 30 years. India adhered to its initial model until 1991 when it abolished License Raj, opened up the economy to the private sector, and attracted Foreign Direct Investment. India has been recording growth rates of 6-7 percent since then.

Bangladesh also started its development journey by following a state-controlled model. Political stability post 1990, continuity of economic policies across political regimes and liberalization widened the scope of the private sector and moved the growth trajectory significantly upwards.

This study identifies critical success factors, and the risks and pain points for steering the future direction of these economies.