Introduction Just like social and political development, economic development is also one element of the more comprehensive notion of development. This is the reason why many economists refer development as an assignment and a procedure. As a procedure or process, development implies various tasks done in different sectors of economy to improve the status quo of underdeveloped, developing, rising and recently industrialized countries. On the other hand, development as an assignment or project implies the premeditated strategies aimed at improving the country’s national economic growth. In the recent times, developing countries such as Bangladesh have made deliberate changes in national agenda by shifting from free trade concepts to globalization projects. The main aim of a globalization project is to encourage economic development, which will enhance national productive capacity. However, to achieve high productive capacity, countries must enact polices aimed at enhancing agriculture, increase labor and investment opportunities, improve living standards, and trim down poverty rates. Through borrowing from domestic and international financial institutions like IMF and World Bank, Bangladesh has managed to improve in key sectors of economy. (Hossain 1-3). Economic Development in Bangladesh Although there have been major economic improvements in literacy, birth control, poverty diminution and infant mortality the country has failed to tackle inequalities arising from wealth and income, improve infrastructure and energy supply. In a World Bank report released in 2007, Bangladesh has the capacity to achieve gross national income of US$875 if only it enhances its industrial base, competes in global markets and carry out metropolitan economic development. Nevertheless, the country will not achieve this unless it operates under sustained growth rate of 7.5 percent. The major setback surrounding Bangladesh’s slow economic growth lies in political havoc, global economic changes and natural hazards. The country has failed to achieve its projected annual growth rate amid laying economic plans. (World Bank p. 1) In 1991, Bangladesh government engaged in financial reforms and trade liberalization in order to attract foreign investment. Additionally, it initiated programs aimed at empowering the poor financially to start small medium enterprises for poverty eradication. By 1996, the country had achieved a growth rate of 5.5 percent. The 1999 floods and rise in gas and electricity prices saw the economy drop to a growth rate of 5.3 percent. At the dawn of the 21 st century, Bangladesh embarked in monetary expansion coupled with borrowing from domestic banks and financial institutions like IMF and World Bank. The government used finances from IMF to pay wages and deploy infrastructure paramount to jumpstart economic development. The roles played by World Bank and IMF cannot be underestimated. In fact, the World Bank has initiated many projects in Bangladesh aimed at economic development. Microfinance institutions in Bangladesh rely on funds from World Bank to reach out poor people in the society. (Holmes, Farrington, Taifur, and Slater 3-13). Bar Graph Representing Tax in Total Revenue (Worl