Economy, Development and Public Finance
What to master
Grasp the basics of national income, growth, inflation, the balance of payments, remittances and the exchange rate. Understand Bangladesh's development trajectory: agriculture to manufacturing, the readymade garment sector, exports, remittance dependence and the graduation from least developed country status. Learn public finance essentials: the budget cycle, revenue sources, deficit financing, the annual development programme, and the role of the central bank in monetary policy. Know the difference between fiscal and monetary tools and how each affects inflation and growth.
Traps candidates fall into
A common error is treating GDP growth as identical to development; development includes distribution, health, education and equity. Candidates also confuse fiscal policy with monetary policy, or the budget deficit with the trade deficit. Be careful with figures: quote a range or a trend rather than a precise number you cannot verify. Another trap is assuming remittances are costless; they bring dependence and volatility risks.
Rule of thumb
For every economic question, identify the instrument, the target and the trade-off. Say who acts, what they change, and what is sacrificed.
Worked example
If asked how to control inflation, separate demand-side tools such as interest rate tightening from supply-side measures such as easing import bottlenecks, and explain that each has costs in growth or fiscal space.