This book assesses the digital Bangladesh initiative of the government through different lenses: supply-side and demand-side perspectives and policy diffusions. The Bangladesh government has been pursuing a big-push policy for digitalization, namely the “Digital Bangladesh Vision,” since 2009 as a shifting development strategy to leapfrog into the next level of development with the leverage of demographic dividend. However, historical anecdotes, dictated policy, international success stories and other related issues could lead to a rethinking on ICT-based development strategy. The content of the book draws on the author’s long-standing research works on ICTs and economic growth in Bangladesh.
Author(s): Monzur Hossain
Publisher: Palgrave Macmillan
Year: 2022
Language: English
Pages: 321
City: Singapore
Preface
Acknowledgments
Contents
About the Author
Abbreviations
List of Figures
List of Tables
Part I Digital Bangladesh Vision, Achievements and Policy
1 Introduction
1 Background
2 Organization of the Book
Appendix
References
2 Digitalization and Economic Development: Policy, Context, and Theoretical Issues
1 What Do We Understand by Digitalization?
2 The Digitalization Context of Economic Development
3 Linking Digital Transformation to Economic Growth: Direct and Indirect Channels
3.1 Indirect Channels
3.2 Direct Channels
4 Digital Bangladesh Vision: A Big Push for Digitalization
5 Conclusions
References
3 Digital Bangladesh Vision and the Current State of Digitalization
1 Introduction
2 Government Policies on Digitalization
3 Investment in ICT Infrastructure Development and Pricing of Internet
3.1 Pricing of Internet and Accessibility
4 The Current State of Digitalization
4.1 Internet Connectivity and Access
4.2 E-Governance Activities
4.3 E-commerce Growth
4.4 Software Industry
5 IT Human Capital for Leveraging Digital Bangladesh
6 ICT Development Indicators: Comparison with South Asian Countries
6.1 Networked Readiness Index (NRI)
6.2 ICT Development Index (IDI)
7 Concluding Remarks
References
4 ICT Policy, Regulations, and Institutions
1 Introduction
2 A Brief Chronology of Significant ICT Policies
3 Key Information and Communication Technology Policy Diffusions
3.1 Reforms in Telecom Sector Laid the Foundation for Digitalization
3.2 National ICT Policy and Regulations
3.2.1 A Brief Overview of Key ICT Policies
3.2.2 National Digital Commerce Policy 2018
3.2.3 ICT Acts and Regulations
3.2.4 Digital Security ACT, 2018
3.3 Intellectual Property Rights (IPR) Act, 2006
3.4 Internet Connectivity Policy
3.5 Policy on Software Technology Parks (STPs)
3.6 Policies for Human Capital Development and Innovations
3.6.1 Access to Information (A2I) Program
4 Interface of ICT Policies with Development Plans
5 Institutions
5.1 ICT Associations
6 Concluding Remarks
References
5 IT and IT Enabled Service (ITeS) Sector in Bangladesh: Current Status and Future Potentials
1 Introduction
2 Overview of IT Service Industry
3 ICT Sub-Sectors
3.1 Software/IT Industry
3.2 Internet Service Providers (ISPs)
3.3 Call Centre and BPO Services
3.4 Hardware Sector
4 Challenges of the Sector
5 Conclusions
Appendix 1: Definitions of Activities of Software Firms
References
6 Access, Awareness, and Perceived Demand for ICT Services in Rural Areas: Household Level Analysis
1 Introduction
2 Use of ICT Devices in Rural Households
2.1 Mobile Phone Penetration and Usage
2.1.1 Mobile Phone Usage
2.2 Internet Access and Usage
3 Perceived Demand for E-Information Services and Linking with ICT4D
3.1 Agriculture Related Information
3.1.1 Weather Information
3.2 Education
3.3 Health
3.4 Employment
3.5 Government Policy/Services
4 Service Provided by Union Digital Centre
5 Conclusions and Recommendations
References
Part II ICT Industry Development
7 Dynamic Capability and Productivity of ICT Firms in Bangladesh
1 Introduction
2 A Brief Review of Literature on Firm Growth Theory and Capabilities
3 Productivity Analysis
3.1 Older Firms Are More Productive
4 Determinants of Firm’s Performances: Regression Results
5 Analysis of Firm Capability
5.1 Technical Efficiency Analysis
5.2 Firm’s Dynamic Capability Analysis
5.2.1 Resource Reconfiguration/Integration Capabilities
5.2.2 Resource Acquisition Capabilities
5.2.3 Learning Network Capabilities
6 Regression Results
7 Concluding Remarks
References
8 Cluster-Based ICT Industry Development in Bangladesh: National and International Perspectives
1 Introduction
2 Theoretical and International Perspectives of IT Parks
3 Software Technology Parks in Bangladesh
3.1 IT Training Centers
4 An Analysis of Firm Performances in IT Parks
5 Firms’ Perception Regarding IT Parks: Survey Opinions
6 Conclusion
Appendix
References
9 Human Capital, Labor Market Outcomes, and Skills Gap in the ICT Sector
1 Introduction
2 Basic Characteristics of ICT Firms in Bangladesh
2.1 Ownership Pattern
2.2 Firm Age and Owner’s Age
2.3 Sales Revenue and Profitability
2.4 Major Value-Added Activities of Firms
3 ICT Labor Market in Bangladesh
4 Firm-Level Analysis: Distribution of Occupations and Gender Dimensions
4.1 Average Wage of Professionals
4.2 Job Switching Pattern
4.3 Job Placement
5 Skills Shortage and Skills Gap in the ICT Sector
5.1 Shortage of IT employees
5.1.1 Activity-Specific Skills Shortages
5.2 Skills Gap
6 Mitigating Skills Gap: Training and Skills Development Programs
7 Supply-Side Aspects of IT Professionals
8 Human Capital Development Programs in Bangladesh
9 Conclusions and Recommendations
References
Part III Digital Transformation, Economic Growth and Development
10 Transformative Impact of Digitalization on Selected Sectors
1 Introduction
2 Transformative Impact of Digitalization on the Service Sector
3 Six Promising Sectors for Digital Transformation
4 Manufacturing Sector
4.1 Consumer Electronics and Automotive Sectors Are the Future Drivers of Growth
4.2 Manufacturing SMEs
5 Digital Financial Services
6 Digitalization in Agriculture, Livestock, and Fisheries
7 Digitalization and Job Losses
8 Concluding Remarks
References
11 Innovations, Market Access and Productivity of Smaller Firms: Examining the Role of Financial Development
1 Introduction
2 Conceptual Framework
2.1 Innovation, Firm Productivity, and Financial Development
2.2 Financial Development and Market Access
2.3 Joint Effect of Innovation and Market Access
3 Data and Variables
3.1 Data
3.2 Description of Variables
4 Estimation Strategy
4.1 IV Estimation Strategy
5 Econometric Results
5.1 Financial Development and Firms’ Market Access
5.2 Financial Development and Innovations
5.3 Innovation and Market Diversification
5.4 Robustness Check: Joint Effect of Local Financial Development and Innovations on Firm Output and Productivity
6 Conclusions
References
12 ICTs and Economic Growth in Bangladesh
1 Introduction
2 Digital Transformation and Economic Growth: Bangladesh Case
3 ICT and Economic Growth: International Evidence
4 Estimating the Impact of ICT on Economic Growth: Methodological Aspects
4.1 Impact of ICT Investments on Economic Growth
4.2 Contribution of ICT and Non-ICT Sectors to Aggregate TFPG
5 Sector-Wise ICT’s Contribution to GDP in Bangladesh
6 Estimating the Determinants of TFP Growth in Bangladesh
7 Concluding Remarks
Appendix
References
13 ICTs for Sustainable Development in Bangladesh
1 Introduction
2 ICTs use in Environment
3 Biodiversity and Ecosystem Conservation
4 ICT Applications in Natural Disaster Management
5 The Application of ICTs in Preserving Natural Resources
5.1 Land Resources
5.2 Water Resources
5.3 Forest Resources
6 Urbanization and Urban Development
7 Conclusions
References
14 Concluding Remarks: Rethinking Digitalization Strategies for Leapfrogging
Index
