Bangladesh Vision 2021

Economy will drive the vision


(PART 1)

When I was an employee of Maxwell Stamp Ltd. ( a British consulting firm, who is holding most of the project launched by Asian Development Bank (ADB) and World Bank (WB) in Bangladesh ), I had a good chance to look at the database of different industrial sector. When I visited at different industry, I saw the enthusiasm on worker’s eye. But I did not find any keenness at government institution to assist our private sector, especially to develop our small and medium enterprise. The project for developing our small and medium enterprise was funded by Asian Development Bank.

Now I am far away from my home. But still I feel the same passion that I found in our poor workers.

Bangladesh has the potential to join the ranks of the middle-income countries by 2021. But these tasks of poverty alleviation in Bangladesh are all the more challenging and compelling in view of the persistence of extreme and chronic poverty with a growing inequality in income distribution. By 2021, the structure of the Bangladesh economy is expected to change further.
This long-term development strategy must also envisage optimum utilization of our resources including gas, coal and water.

In my opinions, certain factors will push the dream towards its goal. I try to explain the fact that I know and believe.

Energy security: Energy securities of our natural resources play an important policy objective to meet the needs of domestic investors, and attracting FDI. Still for gas and oil exploration and distribution, we depend largely on foreign company. Our government can give opportunity to FBCCI to take any initiative to launch an petroleum company for our domestic exploration – I mean we should reduce dependency on foreign company. Otherwise, energy security would be a dream even for our future generation. In finally, Electrification of the entire country will be given the highest priority and will be completed by 2021.

Greater productivity of agriculture and agro-processing: Agriculture is a primitive industry. Still our agriculture system depends mainly on primitive mechanism; the poor farmer does not get enough knowledge on scientific way of farming to get advanced productivity. On the other, the share of cultivable land is declining day by day at whole over the country. So Govt. should take special attention about that issue. The government should also take necessary steps for greater investments in quality research, extension, mechanized cultivation and crop diversification. Our specialized banks can play a good role as a major lender for the agricultural sector. Our agro-processing industry like flour mills, rice processing industry, rubber industry, bakery, foods and beverage etc may play a greater role in contributing to economic growth and more importantly, in creating opportunities for those rural workers who will no longer be absorbed by the agricultural sector.


Attention to SME (Small and Medium Enterprise): Special attention will be given to developing and enhancing the productivity of small and medium industry to meet the growing demand of the domestic market as well as to service the export market. To meet the needs of this sector, institutions and policies will be designed to ensure ready access to credit, technology up-gradation and the advantages of external economies through integrated infrastructure, which enable small entrepreneurs to aggregate their capacities in order to compete, on better terms, in the global and national market.

A competitive investment climate: Improving the investment climate is a cross-cutting issue which will be required to ensure the competitive strength of our industry and services sectors in the future. This will entail an institutional set-up that is free from corruption and unnecessary regulatory hassles, existence of harmonious labor relations and labor laws that meet global standards, simplified export and import procedures via the use of e-investment services, an improved law and order situation, deepening of the capital market. Development of infrastructure facilities and services especially in the areas of highways, port and airport facilities, telecommunications and the power sector will be of crucial importance in this context.

Increased global market access by Bangladeshi firms: In the context of increased trade liberalization and globalization, Bangladesh will have to remain an open economy with the fullest access to export markets. Securing such access will necessitate internationally competitive export supply capabilities such as reliable infrastructure, export financing schemes, appropriate technology acquisitions, human resource development for skilled and technical expertise, and compliance standards tomensure quality control, to name a few.

Establishing more EPZ (Export Processing Zone): Opportunities in export-oriented industry other than in the RMG sector will need to be secured in a world where there is increasing globalization of production. Sectors that appear to have high potentials include pharmaceuticals, ceramics, home textiles, leather products, toys, cement, eco-packaging using jute, clay costume jewellery, assembled electronics and data processing.

Transit Facility: Still a very sensitive issue, Chittagong port was a transit point from 1000 years ago. When Arab invaders came to India, they used Chittagong port for trading, afterwards, this port was used by Protégées and English merchant. But when Bangladesh formed, we now very cautious to secure our land by opposing transit facilities. I am claiming that if the today’s government can give the transit facility to any foreign country, the economy of the people of Chittagong, and surrounding area will be improved very much.
(Continued)

By Suman K Chowdhury
Industrial Engineer, West Virginia University, USA