Bangladesh's next investment should be in people, not just projects

Bangladesh's dramatic rise has been one of the defining development stories of the 21st century.

In just over five decades, the country has transformed itself from one of the world's poorest post-conflict nations into one of Asia's fastest-growing economies. It has become a global manufacturing powerhouse, dramatically reduced poverty, improved health and education outcomes, emerged as one of the world's leading contributors to UN peacekeeping missions, and established itself as an increasingly influential actor in the Indo-Pacific. Today, Bangladesh is no longer viewed simply as a recipient of international development assistance; it is increasingly recognised as an important economic, diplomatic and strategic partner.

This remarkable progress was not built by governments alone. It was built by millions of Bangladeshis investing in one another.

Parents sacrificed to educate their children. Entrepreneurs built businesses that created jobs and opportunities. Bangladeshis abroad sent remittances that transformed families and communities. Philanthropists supported schools, hospitals, mosques and charitable organisations. Countless citizens contributed their time, resources and expertise because they believed Bangladesh's future was worth investing in.

Those investments helped build modern Bangladesh. But every generation inherits a different responsibility.

The generation that laid the foundations of modern Bangladesh rightly focused on reducing poverty, expanding education, creating jobs, building businesses, strengthening infrastructure and meeting the basic needs of a growing nation.

Those priorities remain as important as ever.

As Bangladesh becomes more prosperous and influential, however, its ambitions must evolve. The next stage of development is not simply about building more roads, bridges or factories. It is about strengthening the country's ability to solve increasingly complex problems, compete internationally and shape its own future.

That requires investing not only in today's needs but also in tomorrow's capabilities.

For decades, Bangladesh's investments have understandably focused on immediate priorities: supporting families, reducing poverty, expanding education, building businesses and strengthening communities. These remain essential and should never be neglected.

Yet as Bangladesh assumes a larger role on the global stage, another form of investment has become equally important. The country must invest in institutions, future leaders and the ideas that will shape them.

This does not mean investing less in infrastructure, housing, healthcare, education, entrepreneurship or poverty reduction. Those priorities remain fundamental.

Rather, the question is how to achieve them more effectively.

Better institutions produce better policies. Better policies improve education, attract investment, create jobs, strengthen infrastructure and expand economic opportunity. Rigorous research helps governments make better decisions. Skilled leaders navigate increasingly complex international challenges. Strong international relationships open doors to trade, innovation and cooperation.

In other words, investing in people and institutions is not an alternative to development; it is an investment in delivering development more effectively. These are not luxuries reserved for wealthy countries. They are among the highest-return investments any society can make.

Strong institutions produce better policies. Better policies create stronger economies, more effective governance, greater resilience and deeper international partnerships. Every generation of capable leaders builds upon the work of those who came before. Every credible research institution expands a nation's capacity to solve problems. Every fellowship that prepares a young person for public service creates benefits that extend far beyond one individual's career.

Countries compete not only through the size of their economies but also through the quality of their ideas, the strength of their institutions and the leaders they cultivate. This is especially true in Bangladesh's relationship with the United States.

As one of Bangladesh's largest trading partners, a leading destination for Bangladeshi exports and home to a vibrant Bangladeshi-American community, the United States will remain central to Bangladesh's economic and strategic future. But enduring partnerships cannot depend solely on governments. They require scholars, researchers, entrepreneurs, journalists, students, business leaders and public servants who understand one another's societies and work together over decades.

Relationships between countries are ultimately built by relationships between people. That is why investing in future policy leaders is not merely an educational initiative; it is a strategic investment in Bangladesh's long-term interests.

Imagine a Bangladeshi student spending one summer at a leading American think tank, university, congressional office or international organisation before returning the following summer to work with policymakers, researchers or civil society leaders in Bangladesh.

Such an experience offers far more than a prestigious line on a résumé. It builds confidence, develops professional judgement and creates lifelong networks. It teaches young people how institutions function, how policy is shaped and how lasting partnerships are built.

Years later, those fellows may become diplomats, professors, journalists, entrepreneurs, researchers, civil servants or business leaders. Some may establish organisations that do not yet exist. Others may mentor future generations. Their greatest contribution may not be a single achievement but the institutions they strengthen and the people they inspire throughout their careers.

This is how national capacity is built.

The same principle applies to evidence-based policymaking. Bangladesh has outstanding universities, researchers and policy institutions whose work has contributed enormously to the country's development. Yet many now operate in an increasingly challenging financial environment as traditional sources of international development assistance evolve.

Rather than viewing research institutions as dependent on external support, Bangladesh should increasingly regard them as national assets worthy of domestic investment. A rigorous policy institute is as much a strategic national resource as a research laboratory or an innovation hub. When researchers produce credible evidence, governments make better decisions, businesses gain greater certainty, international partners develop greater confidence and citizens benefit from policies grounded in evidence rather than assumption.

Supporting these institutions is not charity. It is a strategic investment in Bangladesh's future competitiveness as an independent and thriving nation.

This requires expanding, not replacing, our traditions of generosity, social business and human development.

Bangladeshis should continue supporting their families through remittances. They should continue giving generously to charitable causes, religious institutions, education, disaster relief and community development. Entrepreneurs should continue building businesses that create jobs and prosperity.

But Bangladesh's next chapter calls for adding another dimension to that tradition of giving. Alongside investing in families, communities and businesses, the country must also invest in its long-term capacity.

That means supporting fellowships that prepare future leaders. It means strengthening universities and think tanks that generate evidence for better policymaking. It means investing in research, educational partnerships and institutions that cultivate the ideas and relationships that will shape Bangladesh's future.

These investments may not produce immediate results. But over generations, they can yield extraordinary returns.

Across South Asia, organisations such as the American India Foundation and the American Pakistan Foundation demonstrate what sustained investment in people and institutions can achieve. By cultivating future leaders and strengthening ties between countries, they have built influence that extends far beyond any single programme or generation.

Bangladesh has reached a similar point in its development journey. The American Bangladesh Foundation was established with this philosophy of "meeting the moment" in mind.

Its mission is to strengthen the human and institutional foundations of US-Bangladesh relations by investing in future leaders while supporting evidence-based policymaking through partnerships with universities, think tanks, civil society organisations and public institutions in both countries.

The goal is not to become Bangladesh's policy ecosystem in the United States but to help build and nurture one.

Ultimately, this is not simply an argument about one organisation. It is a call for a broader shift in mindset.

The investments that built Bangladesh over the past 50 years remain indispensable. The investments that will define the next 50 years, however, will increasingly be measured not only in roads, factories and export earnings but also in leaders developed, institutions strengthened, ideas generated and partnerships forged.

Bangladesh's future will not be determined solely by the infrastructure it builds, but also by the people it cultivates, the institutions it strengthens and the relationships it sustains. These are among the highest-return investments any nation can make. They require patience, vision and a willingness to invest beyond today's immediate needs. If Bangladesh is to thrive over the next half-century as it has over the last, they are investments it can no longer afford to postpone.

Atif A Choudhury is the Founder and CEO of the American Bangladesh Foundation and a Term Member of the Council on Foreign Relations. He writes on US–Bangladesh relations, foreign policy, and international development.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.