Bangladesh stands at a pivotal moment in its development journey. A reset underpinned by structural reforms and greater investments in human development can enable the country to benefit from a second demographic dividend. Over the past five decades, the country has undergone one of the fastest fertility declines in the developing world. Birth rates fell from 6.8 in the early 1970s to 2.1 by 2020.¹ This demographic shift has changed the age-dependency ratio from roughly 90 in the 1980s to 53 in 2022.² The transition also coincided with rapid poverty reduction and economic expansion. 

The change was the result of a broad set of integrated support services that not only focused on reproductive health but also on improvements in overall primary healthcare services and various community development programmes run by civil society organizations with large outreach. In Bangladesh, family planning and health interventions were often delivered through broader ‘credit plus’ programmes led by NGOs, which combined access to financial services with livelihood support, health education, and social development initiatives. Bangladesh’s past success was the cumulative effect of various interventions that were running in parallel, including efforts on family planning, girls’ education, and the growth of the ready-made garment sector.

Sustained improvements in maternal and child health, immunization, and nutrition reduced mortality and increased life expectancy.³ Female lower-secondary completion rates now exceed 80 percent.⁴ These improvements, in turn, reinforced family incentives to invest in fewer, healthier, and better-educated children. Declining fertility also created more space for women to participate in the labour market. The growth of labour-intensive manufacturing, particularly the ready-made garments sector, opened pathways for large-scale female employment. 

As more women entered the labour force, there were also changes in social norms around the education of girls and a reduction in early marriages. Female labour force participation increased from about 28 percent in 2000 to nearly 40 percent in recent years.⁵ However, it is important to note that while more women are in the labour force, the labour force participation rate of women is still quite low compared to men (80.5 percent).⁶ Women still face numerous difficulties in entering the labour force as well as facing barriers at the workplace. Moreover, women tend to bear an extra household burden, as existing social norms still discourage women from focusing on their professional careers. Nonetheless, Bangladesh’s experience demonstrates that a demographic and gender dividend can act together to increase development gains. Bangladesh also underscores that the demographic dividend is not automatic, and requires a concerted effort—an effort that must go beyond public health and is geared towards the social, economic, and cultural dimensions of demographics.   

Looking ahead, Bangladesh faces a narrowing window to achieve a second demographic dividend. There are still considerable gaps in education outcomes and the provision of skills that are needed for an advanced and competitive economy. High rates of youth not in employment, education, or training are symptoms that Bangladesh is not fully prepared to benefit from a second demographic dividend. The country must harness the creativity and energy of its young people to build a modern and globally competitive economy. Furthermore, Bangladesh must invest more in public health, education, and social protection. Compared to other lower-middle-income countries, Bangladesh's public investments in these sectors are quite low. 

To conclude, Bangladesh offers four key lessons. First, demographic transition must be treated as a whole-of-government and whole-of-community priority. This entails integrating reproductive health services, education, and offering economic opportunities. Second, the activism of civil society at the community level in the delivery of services and reaching millions of people in some of the most remote corners of the country was a major driver of change. Third, female participation in the labour force is central not only to economic transformation but also to demographic changes. Lastly, Bangladesh’s experience demonstrates that the positive demographic shift is still unfinished business. There is a narrow opportunity for Bangladesh to achieve a second demographic dividend provided the right public policies and programmes are put in place.

1.    https://data.worldbank.org/indicator/SP.DYN.TFRT.IN?locations=BD
2.    https://bangladesh.unfpa.org/en/topics/demographic-dividend
3.    https://data.who.int/countries/050 
4.    https://databrowser.uis.unesco.org/
5.    ILO modelled estimates; World Bank, 2026
6.    https://ilostat.ilo.org/data/country-profiles/bgd/`