Industrialization in Bangladesh, Current status of industrialization of Bangladesh


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Industrialization in Bangladesh, Current status of industrialization of Bangladesh

  1. 1. 1 Abstract This study attempts to study the problems and potentials of industrialization that face a transition economy like Bangladesh from the historical perspective. Since the country like Bangladesh is predominantly agriculture base and the limited industrial output and exports also arise from the primary production the country face a stiff competition in the world market to maintain and develop its terms of trade and balance of payment in its favor. The economy is of much vulnerable as the industrial structure and output are not diversified enough and hence suffers very often from the external shocks. This study, in this context, attempts to study the structural bottleneck of the Bangladesh industry, its problems and suggests some policy implications thereby.
  2. 2. 2 1.1: Introduction Industrialization is the period of social and economic change that transforms a human group from an agrarian society into an industrial one. It is a part of a wider modernization process, where social change and economic development are closely related with technological innovation, particularly with the development of large-scale energy and metallurgy production. It is the extensive organization of an economy for the purpose of manufacturing. Industrialization also introduces a form of philosophical change where people obtain a different attitude towards their perception of nature, and a sociological process of ubiquitous rationalisation.There is considerable literature on the factors facilitating industrial modernization and enterprise development. Key positive factors identified by researchers have ranged from favorable political- legal environments for industry and commerce, through abundant natural resources of various kinds, to plentiful supplies of relatively low-cost, skilled and adaptable labor’s industrial workers' incomes rise, markets for consumer goods and services of all kinds tend to expand and provide a further stimulus to industrial investment and growth. The first country to industrialize was the United Kingdom during the Industrial Revolution, commencing in the eighteenth century. By the end of the 20th century, East Asia had become one of the most recently industrialized regions of the world. Objectives of study The industrial sector has historically been the sector that has driven growth as countries have moved from low to middle-income status. This is because industry can provide high-wage employment for large numbers of workers and can raise social productivity by producing high- value goods on a mass scale. Poor countries can earn valuable foreign exchange by exporting manufactured products and the foreign exchange can be used to invest in newer machines and technologies so that a rapid move up the technology ladder becomes possible. The average productivity of industry is higher than in agriculture or most service-sector activities, so as people move out of agriculture into industry, gross domestic production (GDP) increases. Bangladesh as a country with a poor land-person ratio is unlikely to prosper through agricultural
  3. 3. 3 growth alone. Agriculture is unlikely to deliver rapid growth in Bangladesh because of the difficulty of setting up large-scale farms that can compete with countries that specialize in agriculture such as Australia or Argentina. Nor does Bangladesh have natural resources that can be exploited, with the exception of natural gas. Thus, industrialization and specialization in manufacturing is the obvious way in which Bangladesh can raise its per capita income and social productivity. The industrial sector consists of manufacturing, together with utilities (gas, electricity, and water) and construction. Methodology and Limitation The main purpose of my studies is to identity the contribution of economic development in our country by Industrialization. There are many industries in our country that has contribution our national development. But it has limitation, Bangladesh is industrially backward. Lack of technological know-how, lack of resources, political instability, and infrastructural backwardness are main obstacles to industrialization in our country. However, the country has some significant advancement in small and medium level industries. Such as jut mills, fertilizer, steel mills, textile mills, paper mills, machine tool factory, electrical industries, several sugar mills, leather industries and cement factories, all of which are very big in respect of size, production and investment, besides, hundreds of other smaller and mediocre industries that have been set up in different parts of the country. Mention to be made of our garment industries earning huge foreign exchanges and employing large number of unemployed, male and female. Definition of Industrialization The process in which a society or country (or world) transforms itself from a primarily agricultural society into one based on the manufacturing of goods and services. Individual manual labor is often replaced by mechanized mass production and craftsmen are replaced by assembly lines. Characteristics of industrialization include the use of technological innovation to
  4. 4. 4 solve problems as opposed to superstition or dependency upon conditions outside human control such as the weather, as well as more efficient division of labor and economic growth. Industrialization is most commonly associated with the European Industrial Revolution of the late eighteenth and early nineteenth centuries. The onset of the second World War also led to a great deal of industrialization which resulted in the growth and development of large urban centers and as well as suburbs. Industrialization is an outgrowth of capitalism and its effects on society are still undetermined to some extent, however it has resulted in a lower birthrate and a higher average income. History of industrialization Most pre-industrial economies had standards of living not much above subsistence, among that the majority of the population were focused on producing their means of survival. For example, in medieval Europe, as much as 80% of the labor force was employed in subsistence agriculture. Some pre-industrial economies, such as classical Athens, had trade and commerce as significant factors, so native Greeks could enjoy wealth far beyond a sustenance standard of living through the use of slavery. Famines were frequent in most pre-industrial societies, although some, such as the Netherlands and England of the seventeenth and eighteenth centuries, the Italian city states of the fifteenth century, the medieval Islamic Caliphate, and the ancient Greek and Roman civilizations were able to escape the famine cycle through increasing trade and Commercialization of the agricultural sector. It is estimated that during the seventeenth century Netherlands imported nearly 70% of its grain supply and in the fifth century BC Athens imported three quarters of its total food supply.Industrialisation through innovation in manufacturing processes first started with the Industrial Revolution in the north-west and Midlands of England in the eighteenth century. It spread to Europe and North America. Industrial revolution in Europe Aplerbecker Hutted, an industrialized area of Dortmund, Germany circa 1910. The old town can be seen beyond and some remaining agricultural land is in the foreground. In the 18th and 19th centuries, the UK experienced a massive increase in agricultural productivity known as the British Agricultural Revolution, which enabled an unprecedented population growth, freeing a significant
  5. 5. 5 percentage of the workforce from farming, and helping to drive the Revolution. Due to the limited amount of arable land and the overwhelming efficiency of mechanized farming, the increased population could not be dedicated to agriculture. New agricultural techniques allowed a single peasant to feed more workers than previously; however, these techniques also increased the demand for machines and other hardware, which had traditionally been provided by the urban artisans. Artisans, collectively called bourgeoisie, employed rural exodus workers to increase their output and meet the country's needs. The growth of their business coupled with the lack of experience of the new workers pushed a rationalization and standardization of the duties the in workshops, thus leading to a division of labor, that is, a primitive form of Faradism. The process of creating a good was divided into simple tasks, each one of them being gradually mechanized in order to boost productivity and thus increase income. The accumulation of capital allowed investments in the conception and application of new technologies, enabling the industrialization process to continue to evolve. The industrialization process formed a class of industrial workers who had more money to spend than their agricultural cousins. Early Industrialization in Other Countries After the Convention of Kanagawa issued by Commodore Matthew C. Perry forced Japan to open the ports of Shimmed and Hakodate to American trade, the Japanese government realized that drastic reforms were necessary to stave off Western influence. The Tokugawa shogun ate abolished the feudal system. The government instituted military reforms to modernize the Japanese army and also constructed the base for industrialization. In the 1870s, the Meiji government vigorously promoted technological and industrial development that eventually changed Japan to a powerful modern country. In a similar way, Russia suffered during the Allied intervention in the Russian Civil War. The Soviet Union's centrally controlled economy decided to invest a big part of its resources to enhance its industrial production and infrastructures to assure its survival, thus becoming a world superpower. During the Cold war, the other European socialist countries, organized under the Come-ons framework, followed the same developing scheme, albeit with a less emphasis on industry. Southern European countries such as Spain or Italy saw a moderate industrialization during the 1950s-1970s, caused by a healthy integration of the European economy, though their levels of development, as well as those of Socialist
  6. 6. 6 European Countries, do not match the more advanced standards of other European countries like Germany. The Third World A similar state-led developing programmed was pursued in virtually all the Third World countries during the Cold War, including the socialist ones, but especially in Sub-Saharan Africa after the decolonization period. The primary scope of those projects was to achieve self- sufficiency through the local production of previously imported goods, the mechanization of agriculture and the spread of education and health care. However, all those experiences failed bitterly due to a lack of realism: most countries did not have a pre-industrial bourgeoisie able to carry on a capitalistic development or even a stable and peaceful state. Those aborted experiences left huge debts toward western countries and fuelled public corruption. Industrialization in Asia Apart from Japan, where industrialization began in the late 19th century, a different pattern of industrialization followed in East Asia. One of the fastest rates of industrialization occurred in the late 20th century across four countries known as the Asian tiger (Hong Kong, Singapore, South Korea and Taiwan), thanks to the existence of stable governments and well structured societies, strategic locations, heavy foreign investments, a low cost skilled and motivated workforce, a competitive exchange rate, and low custom duties. In the case of South Korea, the largest of the four Asian tigers, a very fast paced industrialization took place as it quickly moved away from the manufacturing of value-added goods in the 1950s and 60s into the more advanced steel, shipbuilding and automobile industry in the 1970s and 80s, focusing on the high-tech and service industry in the 1990s and 2000s. As a result, South Korea became a major power. This starting model was afterwards successfully copied in other larger Eastern and Southern Asian countries, including communist ones. The success of this phenomenon led to a huge wave of off shoring – i.e., Western factories or Tertiary Sector corporations choosing to move their activities to countries where the workforce was less expensive and less collectively organized.
  7. 7. 7 Industrialization in Bangladesh Bangladesh was born in the background of utter industrial backwardness. At the time of her birth she was so poor in the field of industry that almost all the industry products that the required had to imported from abroad. Though she holds the monopoly of jute, leather, and other raw materials she was obliged both to export jute to other countries and buy from them finished goods made with her raw materials. This tragic position lasted for years together. To add to her difficulties, her population was entirely agricultural, inclined towards agriculture. Her wealthy people, very few in numbers, were inclined towards commerce and had no idea about industry. Over and above that she lacked those natural facilities which help the growth of industry. She has no coalfield, no iron mine, no oil deposit and no natural source of power. And starting with many barriers and a few advantages, Bangladesh has amazed the word by her industrial progress in less than twenty years. The Government of Bangladesh played an important role in the development of industries in this country. Right at the beginning, it came forward and invited the wealthy people to invest money in industries under the protection and patronage of the state. The industrial corporations undertook to organize a large number of important industries where the investment is too heavy for private individuals. Some foreign capital was invited and given attractive facilities. Granting the national capitals many advantages encouraged the investment of national capital. Research laboratories have been set up to test raw materials and improve the quality of local products. A vigorous campaign was launched to find out new minerals and some important discoveries us actually made.As a result of this brisk and all round effort for several years, Bangladesh can now boast of possessing a large number of important industries. She has some jut mills, fertilizer, steel mills, textile mills, paper mills, machine tool factory, electrical industries, several sugar mills, leather industries and cement factories, all of which are very big in respect of size, production and investment, besides, hundreds of other smaller and mediocre industries that have been set up in different parts of the country. Mention to be made of our garment industries earning huge foreign exchanges and employing large number of unemployed, male and female. To solve the problem of power capacity of carnally hydroelectric project have been developed in addition to gas power station set up in gohrashal and those are supplying cheap electricity throughout the whole of
  8. 8. 8 Bangladesh. Gas is the most important aspect of our development of fuel. Natural gas is abundant in the eastern section of the country. Many industries are run by gas. If properly exploited, they can supply much power for industrial consumption.Born in the midst of absolute vacuum. Bangladesh is going ahead speedily in the field of industrial progress. Her speeds will immensely increases when all the sources of power will be properly utilized. And then the dream of her people to build up their country as one of the prosperous states of the world will be realized in full. AN ARTICLE published in The Journal of European Economic History in 1982 says that the per capita industrialization index of greater India went down from 7 to 2 during 1750-1913, based on an index of 100 in the year 1900 for Great Britain. Industrialization was most likely despondent, because of its colonial episode during industrial revolution period. After the departure of the British in 1947, the food-scarce country had no option but to concentrate on farming. Subsequently, the Bangladesh government went for a socialist economic transformation in 1972 in order to break the peripheral hegemony of capitalism. More than a thousand units of industries and abandoned properties were brought under public entities. However, the state policy of socialism was quickly dumped after the assassination of Sheikh Maribor Rahman.Upon contemplation of over-employment, managerial inefficiency, corruption and heavy financial losses, state-owned enterprises were privatized under subsequent policies as reported in an ILO study. The new government denationalized 255 SOEs during 1975-81. Indeed, the new industrial policy of 1982 promoted capitalism and privatized another 222 SOEs until 1986. Nevertheless, the losses of the SOEs increased to Tk 3.8 billion ($120 million) in 1986, as estimated by the finance ministry. Subsequently, the revised industrial policy (1986) aimed to encourage foreign investment, liberalize trade and raise incentives for private investors. However, the losses of the SOEs increased to Tk 4.8 billion ($130 million) in 1991, as the privatization policy continued. Since its establishment in 1993, The Privatization Commission has so far privatized 74 SOEs. On the other hand, the Board of Investment, after commencing in 1989, has encouraged private investment. Moreover, subsequent industrial policies of 1999 and 2005 advocated a private sector-led market-oriented industrial development.Industrial sector now contributes more than 28 per cent of the gross domestic product, from around 11 per cent in the mid 1970s, according to the Bangladesh Economic Review. Its sub-sectors are mining and quarrying, manufacturing, construction, and electricity, gas and water. Manufacturing remained the largest sub-sector contributing to 17.3 per cent of the GDP in 2009-10. However, its growth had been unsatisfactory until the 1990s, with a compounded rate of only 3.8 per cent, most likely due to lack of confidence among capitalists about investment security. However, the private sector-led industries marked double-digit growth in the mid 2000s, parallel to the peak in imports of capital machineries, from $314 million in 1999-2000 to $1,929 million in 2006-07. Moreover, other sub-sectors experienced an
  9. 9. 9 average growth of over 7 per cent during the past decade. The present private sector-dominated industry will dominate the economy in 2021 with at least a contribution of 40 per cent to the GDP, as envisaged in Vision 2021. Meanwhile, readymade garments became the largest manufacturing sector with a production of 2,100 million pieces in 2010, up from 566 million in 1995, as per the BER. The quantum index of industrial production measures the contribution of various industries to the economy. The QIP at base year 1988-89 reached 1643.19 in 2010 for RMG. The sectors that performed well are pharmaceuticals producing 297,000 metric tons with QIP 1075.30, cement producing 2.9 million MT with QIP 836.42, beverages producing 451 million bottles with QIP 555.44. These industries started privately without the inherent pubic red-tape regulations and gained momentum from fiscal and monetary incentives. In addition, the production of natural gas increased to 19.6 billion m3 with QIP 451.06 and the cotton yarn to 181,000 MT with QIP 369.24. Other than the above, the private sector led soap and detergent industries have done better than they are reflected from their QIP. On the other hand, leather and finished leather, mill-made textiles, fertilizer, sugar and jute goods industries were seen vulnerable even in 2000s, because of the combined effect of their slow deregulation and deep-seated governance problems. Though a few industries have developed under the private sector, all pubic efforts, liberal policies and attractive incentive packages (i.e. tax exemptions, tax holidays, concessionary duty on machinery imports, repatriation of invested capital and profits etc) have failed to boost investments. The domestic capitalists were not even convinced to invest at home. Rather, many of them were reportedly engaged in capital flight in the 1980s. Moreover, many industrialists and businessmen used to maintain off-shore deposit accounts like in Swiss Bank. The failure to bridge the gap between domestic and foreign private investors was a major cause for slow industrialization. However, special incentives for foreign investment and export-oriented industries kept a large flow of foreign investment into the export processing zones. By the end of 2009-10, around $1,805 million were invested in eight EPZs coming from 33 countries. The BER states that there are now 333 industrial units under operation and 82 units are under construction in the EPZs, of which two-thirds are related to garments. The large industries are dominant, with their share of 51 per cent in 1973-74 and with two-third in early 2000s, according to the Bangladesh Bureau of Statistics. This is as per the categories of large, medium and small industries based on labor absorption and fixed capital endowment. Major business entities of the country, on the other hand, fall under the small and medium enterprises, except for a few fertilizer factories, large garments, jute and textile mills, pharmaceuticals companies, cement factories, telecom companies and some SOEs. Under many of the SME programmers, the government, banks and financial institutions favor the medium and small industries. In addition, the SME Foundation established in 2007 provides advocacy services along with loan disbursement. Meanwhile, a refinancing scheme has been undertaken by the Bangladesh Bank since 2004-05. Moreover, IDA has provided $10 million and Bangladesh Bank has disbursed Tk10.42 billion,
  10. 10. 10 as of June 2010, among banks and financial institutions for refinancing potential entrepreneurs. All such efforts would promote small and medium industries to develop the industrial sector as a whole. Our industrial sector has been through a history of slow growth, but a few industries, initiated and expanded by the private sector, grew faster. Indeed, this growth has been very lopsided around the RMG with very little diversification. As an agro-based country, the agro-processing industry has potential for rapid expansion in this age of rapid urbanization. Moreover, some of the micro and high-tech industries will move forward because of the incentives provided for these two industries. The SME industries have the advantage of low cost quality production and of producing for import substitution. However, even with a very liberal policy framework, the poor infrastructure, political instability, bureaucratic red tapes and underdeveloped legal system inhibit investment, either domestic or foreign. On the other hand, the disincentive from the energy crisis would hold back the growth achieved recently. Exclusion of these anti- growth factors is much needed to gain momentum for a typical leap of the industrial sector in Bangladesh. Bangladesh is an underdeveloped country. The country is industrially backward. Lack of technological know-how, lack of resources, political instability, and infrastructural backwardness are main obstacles to industrialization in our country. However, the country has some significant advancement in small and medium level industries. Many new and heavy industries have also been set up at private enterprises which are remarkably contributing to our national economy. Problems of Industrialization in Bangladesh Bangladesh is mainly an agricultural country. Agriculture has always been given priority and as a result industries have been ignored. Recently some agro-based industries have been set up. There are some reasons for which the country has lagged behind in heavy and medium-level industries. Lack of capital: Bangladesh being a poor country, people’s saving is very low. As saving is very poor, investment is also very low. Again people’s per capita income is very low. So their consumption is also very low. Consequently local market oriented industries are also very thin here. Weak investment base: due long colonial rule, economic discrimination and post-liberation nationalization of industrialization, the growth of entrepreneurship has been slow in Bangladesh.
  11. 11. 11 Besides, due to bureaucratic red-tapes and lack of investment climate, capital investment has not been developed here. Poor Infrastructure Infrastructural facilities in our country are also poor. Power supply, telecommunication, transport, gas, water supply etc. – all facilities are poor which have hindered process of industrialization in Bangladesh. Technological know-how Lack of technological know-how is also another reason of our industrial backwardness. Lack of resources Lack of raw materials and natural resources are also unfavorable for our industrialization. Unskilled human resources Though Bangladesh has a huge population, most of them are uneducated and unskilled. Country lacks specialists, professionals and technologists which also hamper our industrialization. Political instability and lack of proper govt. policy A good govt. policy and political stability are precondition for industrialization. Unfortunately political and instability has always been a common phenomenon here. Besides, no govt. have planned or implemented an industry-oriented policy. Industrialization: Current scenario However, in recent times, Bangladesh has experienced a dramatic expansion in small and medium level industries, particularly in ready-made garments and textile sector which have boosted country’s economy greatly. In fact, garments sector has emerged as country’s largest foreign exchange earning sector and provided employment opportunities to millions.( a short
  12. 12. 12 story ) Moreover, Bangladesh has also greatly developed in fertilizer, sugar, cement, small and light engineering, telecommunication, leather and agro-based industries. Industrialization: Policies Bangladesh must develop and implement a good investment friendly environment so that foreign direct investment increases here. We have also to set up new export processing zones improve infrastructural facilities. Political stability must be ensured. Ore human resources should be made skilled and more training and technical institute should be set up for this can encourage privatization and give incentives on exported goods. Industrialization Prospective of Bangladesh The vision is to build Bangladesh into a resilient, productive, innovative, and prosperous nation withal caring society consisting of healthy, happy, and well-educated people. It is built on the enduring attributes of self-reliance, respect, tolerance, equity, and integrity. In line with constitutional obligations and international human rights commitments, society in 2021 shall be one in which (i)every citizen has equal opportunities to achieve his/her fullest potential; (ii) all citizens enjoy equality of life commensurate with the national development stage where quality health care and adequate nutrition are assured for all; (iii) all citizens are assured of a modern, sound, and relevant education tailored to meet the human resource needs of a modern, progressive, and technologically advancing nation; (iv) sustainable development is ensured, along with optimal use of all resources; (v) there is respect for the principles of democracy, rule of law, and human rights, ensuring gender equality, the rights of indigenous populations and of all the other disadvantaged people including persons with disability and autism; and (vii) the diversity and creativity of all people are valued and nurtured.
  13. 13. 13 Macro-economic trend This is a chart of trend of gross domestic product of Bangladesh at market prices estimated by the International Monetary Fund with figures in millions of Bangladeshi Taka. However, this reflects only the formal sector of the economy. Year Gross Domestic Product US Dollar Exchange Inflation Index (2000=100) Per Capita Income (as % of USA) 1980 250,300 16.10 Taka 20 1.79 1985 597,318 31.00 Taka 36 1.19 1990 1,054,234 35.79 Taka 58 1.16 1995 1,594,210 40.27 Taka 78 1.12 2000 2,453,160 52.14 Taka 100 0.97 2005 3,913,334 63.92 Taka 126 0.95 2008 5,003,438 68.65 Taka 147 Mean wages were $0.58 per manhour in 2009. Economic sectors Agriculture Most Bangladeshis earn their living from agriculture. Although rice and jute are the primary crops, maize and vegetables are assuming greater importance. Due to the expansion of irrigation networks, some wheat producers have switched to cultivation of maize which is used mostly as poultry feed. Tea is grown in the northeast. Because of Bangladesh's fertile soil and normally ample water supply, rice can be grown and harvested three times a year in many areas. Due to a number of factors, Bangladesh's labor-intensive agriculture has achieved steady increases in food
  14. 14. 14 grain production despite the often unfavorable weather conditions. These include better flood control and irrigation, a generally more efficient use of fertilizers, and the establishment of better distribution and rural credit networks. With 28.8 million metric tons produced in 2005-2006 (July–June), rice is Bangladesh's principal crop. By comparison, wheat output in 2005-2006 was 9 million metric tons. Population pressure continues to place a severe burden on productive capacity, creating a food deficit, especially of wheat. Foreign assistance and commercial imports fill the gap, but seasonal hunger ("monga") remains a problem. Underemployment remains a serious problem, and a growing concern for Bangladesh's agricultural sector will be its ability to absorb additional manpower. Finding alternative sources of employment will continue to be a daunting problem for future governments, particularly with the increasing numbers of landless peasants who already account for about half the rural labor force. Due to farmers' vulnerability to various risks, Bangladesh's poorest face numerous potential limitations on their ability to enhance agriculture production and their livelihoods. These include an actual and perceived risk to investing in new agricultural technologies and activities (despite their potential to increase income), a vulnerability to shocks and stresses and a limited ability to mitigate or cope with these and limited access to market information. Manufacturing and Industry Many new jobs - mostly for women - have been created by the country's dynamic private ready- made garment industry, which grew at double-digit rates through most of the 1990s. By the late 1990s, about 1.5 million people, mostly women, were employed in the garments sector as well as Leather products specially Footwear (Shoe manufacturing unit). During 2001-2002, export earnings from ready-made garments reached $3,125 million, representing 52% of Bangladesh's total exports. Bangladesh has overtaken India in apparel exports in 2009, its exports stood at 2.66 billion US dollar, ahead of India's 2.27 billion US dollar. Eastern Bengal was known for its fine muslin and silk fabric before the British period. The dyes, yarn, and cloth were the envy of much of the promoter world. Bengali muslin, silk, and brocade were worn by the aristocracy of Asia and Europe. The introduction of machine-made textiles from England in the late eighteenth century spelled doom for the costly and time-consuming hand loom process. Cotton growing
  15. 15. 15 died out in East Bengal, and the textile industry became dependent on imported yarn. Those who had earned their living in the textile industry were forced to rely more completely on farming. Only the smallest vestiges of once-thriving cottage industry survived.Other industries which have shown very strong growth include the chemical industry, steel industry, mining industry and the paper and pulp industry. Textile sector Bangladesh's textile industry, which includes knitwear and ready-made garments along with specialized textile products, is the nation's number one export earner, accounting for 80% of Bangladesh's exports of $15.56 billion in 2009. Bangladesh is 2nd in world textile exports, and China which exported $120.1 billion worth of textiles in 2009. The industry employs nearly 3.5 million workers. Current exports have doubled since 2004. Wages in Bangladesh's textile industry were the lowest in the world as of 2010. The country was considered the most formidable rival to China where wages were rapidly rising and currency was appreciating. As of 2012 wages remained low for the 3 million people employed in the industry, but labor unrest was increasing despite vigorous government action to enforce labor peace. Owners of textile firms and their political allies were a powerful political influence in Bangladesh. The urban garment industry has created more than one million formal sector jobs for women, contributing to the high female labor participation in Bangladesh. While it can be argued that women working in the garment industry are subjected to unsafe labor conditions and low wages, Dina M. Siddiqi argues that even though conditions in Bangladesh garment factories “are by no means ideal," they still give women in Bangladesh the opportunity to earn their own wages. As evidence she points to the fear created by the passage of the 1993 Harkins Bill (Child Labor Deterrence Bill), which caused factory owners to dismiss “an estimated 50,000 children, many of whom helped support their families, forcing them into a completely unregulated informal sector, in lower-paying and much less secure occupations such as brick-breaking, domestic service and rickshaw pulling. Even though the working conditions in garment factories are not ideal, they tend to financially be more reliable than other occupations and, “enhance women’s economic capabilities to spend, save and invest their incomes. Both married and unmarried women send money back to their
  16. 16. 16 families as remittances, but these earned wages have more than just economic benefits. Many women in the garment industry are marrying later, have lower fertility rates, and attain higher levels of education, then women employed elsewhere. After massive labor unrest in 2006 the government formed a Minimum Wage Board including business and worker representatives which in 2006 set a minimum wage equivalent to 1,662.50 taka, $24 a month, up from Tk950. In 2010, following widespread labor protests involving 100,000 workers in June, 2010, a controversial proposal was being considered by the Board which would raise the monthly minimum to the equivalent of $50 a month, still far below worker demands of 5,000 taka, $72, for entry level wages, but unacceptably high according to textile manufacturers who are asking for a wage below $30. On July 28, 2010 it was announced that the minimum entry level wage would be increased to 3,000 taka, about $43. The government also seems to believe some change is necessary. On September 21, 2006 then ex-Prime Minister Khaleda Zia called on textile firms to ensure the safety of workers by complying with international labor law at a speech inaugurating the Bangladesh Apparel & Textile Exposition (BATEXPO). Investment The stock market capitalization of the Dhaka Stock Exchange in Bangladesh crossed $10 billion in November 2007 and the $30 billion dollar mark in 2009, and USD 50 billion in August 2010. Bangladesh had one of the best performing stock markets in the world during the recent global recession; due to relatively low correlations with developed country stock markets. Major investment in real estate by domestic and foreign-resident Bangladeshis has led to a massive building boom in Dhaka and Chittagong. Recent (2011) trends for investing in Bangladesh as Saudi Arabia trying to secure public and private investment in oil and gas, power and transportation projects, United Arab Emirates (UAE) is keen to invest in growing shipbuilding industry in Bangladesh encouraged by comparative cost advantage, Tata, an India-based leading industrial multinational to invest Taka 1500 crore to set up an automobile industry in Bangladesh, World Bank to invest in rural roads improving quality of live, the Rwandan entrepreneurs are keen to invest in Bangladesh's pharmaceuticals sector considering its potentiality in international market, Samsung sought to lease 500 industrial plots from the export
  17. 17. 17 zones authority to set up an electronics hub in Bangladesh with an investment of US$1.25 billion, National Board of Revenue (NBR) is set to withdraw tax rebate facilities on investment in the capital market by individual taxpayers from the fiscal 2010-11 market crash2011-12.The bullish capital market turned bearish during 2010, with the exchange losing 1,800 points between December 2010 and January 2011. Millions of investors have been rendered bankrupt as a result of the market crash. The crash is believed to be caused artificially to benefit a handful of players at the expense of the big players. External trade Bangladeshi exports in 2006 The Bangladesh Garments Manufacturers and Exporters Association (BGMEA) has predicted textile exports will rise from US$7.90 billion earned in 2005-06 to US$15 billion by 2011. In part this optimism stems from how well the sector has fared since the end of textile and clothing quotas, under the Multifibre Agreement, in early 2005.According to a United Nations Development Programmers report "Sewing Thoughts: How to Realize Human Development Gains in the Post-Quota World" Bangladesh has been able to offset a decline in European sales by cultivating new markets in the United States. "[In 2005] we had tremendous growth. The quota-free textile regime has proved to be a big boost for our factories," said BGMEA president
  18. 18. 18 S.M. Fazlul Hoque told reporters, after the sector's 24 per cent growth rate was revealed. Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) president Md Fazlul Hoque has also struck an optimistic tone. In an interview with United News Bangladesh he lauded the blistering growth rate, saying "The quality of our products and its competitiveness in terms of prices helped the sector achieve such... tremendous success."Knitwear posted the strongest growth of all textile products in 2005-06, surging 35.38 per cent to US$2.82 billion. On the downside however, the sector's strong growth came amid sharp falls in prices for textile products on the world market, with growth subsequently dependent upon large increases in volume. Bangladesh’s quest to boost the quantity of textile trade was also helped by US and EU caps on Chinese textiles. The US cap restricts growth in imports of Chinese textiles to 12.5 per cent next year and between 15 and 16 per cent in 2008. The EU deal similarly manages import growth until 2008.Bangladesh may continue to benefit from these restrictions over the next two years, however a climate of falling global textile prices forces wage rates the centre of the nation's efforts to increase market share. They offer a range of incentives to potential investors including 10 year tax holidays, duty free import of capital goods, raw materials and building materials, exemptions on income tax on salaries paid to foreign nationals for three years and dividend tax exemptions for the period of the tax holiday. All goods produced in the zones are able to be exported duty free, in addition to which Bangladesh benefits from the Generalized System of Preferences in US, European and Japanese markets and is also endowed with Most Favored Nation status from the United States. Furthermore, Bangladesh imposes no ceiling on investment in the EPZs and allows full repatriation of profits. The formation of labor unions within the EPZs is prohibited as are strikes. Bangladesh’s exports to the U.S. surpassed $1.9 billion in 1999. Bangladesh also exports significant amounts of garments and knitwear to the EU market. Bangladesh also has significant jute, leather, shrimp, pharmaceutical, and ceramics industries. Bangladesh has been a world leader in its efforts to end the use of child labor in garment factories. On July 4, 1995, the Bangladesh Garment Manufacturers Export Association, International Labor Organization, and UNICEF signed a memorandum of understanding on the elimination of child labor in the garment sector. Implementation of this pioneering agreement began in fall 1995, and by the end of 1999, child labor in the garment trade virtually had been eliminated. The labor-intensive process of ship breaking for scrap has developed to the point where it now meets most of Bangladesh's domestic steel needs. Other industries include sugar,
  19. 19. 19 tea, leather goods, newsprint, pharmaceutical, and fertilizer production. The Bangladesh government continues to court foreign investment, something it has done fairly successfully in private power generation and gas exploration and production, as well as in other sectors such as cellular telephony, textiles, and pharmaceuticals. In 1989, the same year it signed a bilateral investment treaty with the United States, it established a Board of Investment to simplify approval and start-up procedures for foreign investors, although in practice the board has done little to increase investment. The government created the Bangladesh Export Processing Zone Authority to manage the various export processing zones. The agency currently manages EPZs in Adamjee, Chittagong, Comilla, Dhaka, Ishwardi, Karnaphuli, Mongla, and Uttara. An EPZ has also been proposed for Sylhet. The government has given the private sector permission to build and operate competing EPZs-initial construction on a Korean EPZ started in 1999. In June 1999, the AFL-CIO petitioned the U.S. Government to deny Bangladesh access to U.S. markets under the Generalized System of Preferences (GSP), citing the country's failure to meet promises made in 1992 to allow freedom of association in EPZs.Sylhet is fast becoming a major center of retailing in Bangladesh with many shopping centers being built by expatriates to serve fellow expatriates visiting Sylhet and the emerging middle class. Many of these developments hark back to Britain. Bangladeshi Women and the Economy “Bangladesh is a highly patriarchal society (as are many countries in the region) with gender being a key factor in defining social roles, responsibilities and power relationships within the family and workplace. Male workforce participation is significantly higher than female participation, with men participating at 83 percent and women at 59 percent; however, male workforce participation has decreased by 4 percent, while female participation has increased by 4 percent from the year 2000. It should be noted that a 59 percent female participation rate is high in comparison to a lot of countries like Iran, which has a 16.5 female labor participation rate (World Bank 2010), and Lebanon, which has a 22.5 female labor participation rate.
  20. 20. 20 A 2007 World Bank report stated that the areas in which women’s work force participation have increased the most are in the fields of agriculture, education and health and social work. Over three-quarters of women in the labor force work in the agricultural sector. On the other hand, the International Labor Organization reports that women's workforce participation has only increased in the professional and administrative areas between 2000 and 2005, demonstrating women's increased participation in sectors that require higher education. Employment and labor force participation data from the World Bank, the UN, and the ILO vary and often under report on women's work due to unpaid labor and informal sector jobs. Though these fields are mostly paid, women experience very different work conditions than men, including wage differences and work benefits. Women’s wages are significantly lower than men’s wages for the same job with women being paid as much as 60-75 percent less than what men make. One example of action that is being taken to improve female conditions in the work force is Non-Governmental Organizations. These NGOs encourage women to rely on their own self-savings, rather than external funds provide women with increased decision-making and participation within the family and society. However, some NGOs that address microeconomic issues among individual
  21. 21. 21 families fail to deal with broader macroeconomic issues that prevent women's complete autonomy and advancement. Overview The area of Gulshan is a commercial hub of the country Karwan Bazaar is home to many of Bangladesh's important offices Bazaars in Bangladesh are popular trading places for everyday household necessities. Bangladesh has made significant strides in its economic sector performance since independence in 1971. Although the economy has improved vastly in the 1990s, Bangladesh still suffers in the
  22. 22. 22 area of foreign trade in South Asian region. Despite major impediments to growth like the inefficiency of state-owned enterprises, a rapidly growing labor force that cannot be absorbed by agriculture, inadequate power supplies, and slow implementation of economic reforms, Bangladesh has made some headway improving the climate for foreign investors and liberalizing the capital markets; for example, it has negotiated with foreign firms for oil and gas exploration, better countrywide distribution of cooking gas, and the construction of natural gas pipelines and power stations. Progress on other economic reforms has been halting because of opposition from the bureaucracy, public sector unions, and other vested interest groups. The especially severe floods of 1998 increased the flow of international aid. So far the global financial crisis has not had a major impact on the economy. The World Bank predicted economic growth of 6.5% for current year. Foreign aid has seen a decline of 10% over the last few months but economists see this as a good sign for self-reliance. There has been 18% growth in exports over the last 9 months and remittance inflow has increased at a remarkable 25% rate. Fiscal Year Total Export Total Import Foreign Remittance Earnings 2007–2008 $14.11b $25.205b $8.9b 2008–2009 $15.56b $22.00b+ $9.68b 2009–2010 $16.7b ~$24b $10.87b 2010–2011 $22.93b $32b $11.65b 2011–2012 $24.30b $35.92b $12.85b Some Key Targets based on Vision 2021 • Secure and sustain an annual rate of GDP growth of 8 per cent by 2013, which will increase to 10 per cent from 2017. • Bring down the proportion of disadvantaged people living below the poverty line to 25Million, i.e. 15 per cent by 2021.
  23. 23. 23 • Ensure a minimum of 2,122 of food for all poor people and standard nutritional food to at least 85 per cent of the population by 2021. • Ensure 100 per cent net enrolment at primary level as soon as possible after 2010, provide free tuition to degree level as soon as possible after 2013, attain full literacy as soon as possible after 2014, and ensure that Bangladesh is known as a country of educated people with skills in information technology. • Achieve self sufficiency in food by 2012. • Ensure living accommodation for the entire population as soon as possible after 2015; supply of pure drinking water for the entire population as soon as possible after 2011, and bring each house under hygienic sanitation by 2013. • Eliminate all contagious diseases and increase life expectancy to 70 years by 2021. • Reduce maternal mortality to 1.5 per cent, raise the use of birth control methods to 80per cent, and bring down infant mortality to 15 per thousand live births by 2021. • Change the sect oral composition of output with the shares of agriculture (primary), industry (secondary), and services (tertiary) standing at 15 per cent, 40 per cent, and 45per cent respectively in 2021. • Reduce the unemployment rate to 15 per cent; change the shares of agriculture, industry, and services in employment to 30 per cent, 25 per cent, and 45 per cent respectively in 2021. • Generate 8,500 megawatts of electricity by 2013, which will increase to 11,500megawatts in 2015, and make provisions to meet the expected demand for power of20,000 megawatts in 2021.The Plan envisages that every member of society will enjoy a standard of living comparable to those of middle income and high HDI countries, with access to quality education and healthcare regardless of socioeconomic standings, religion, or gender. Poverty will be eradicated and people will live in communities where benefits will extend beyond the basic necessities of food, clothing, and shelter to ensure creative and fulfilling lives. The role of the public sector will be to provide infrastructure and basic public goods and create an enabling environment for the private sector to act as the engine of economic growth. The government will
  24. 24. 24 be service-driven through cost-effective public sector delivery systems and social services fully enabled by adoption of modern technology. Governance will be guided by effective political and legislative institutions, protection of human rights, transparency and accountability in the establishment and enforcement of the rule of law, ethical conduct, value-focused decision- making, and timely and efficient resource allocation. The government will listen to and provide feedback to people through e-governance and public forums, among other media. It will function with the highest standards of public accountability, participation, consistency, and integrity. Such governance standards will provide the context for the operation of all public and private sectorinstitutions.The private sectors will develop globally competitive enterprises. They will deliver goods and services that meet domestic demand efficiently and capture a rising share of exports in the global market. The private sector will be empowered by a strong spirit of entrepreneurship and supported by risktolerantfinancial institutions and legal systems that actively encourage business start-ups. The Development of micro, small, and medium enterprises will encourage women entrepreneurs. The private sector will also develop social responsibility to play a positive role in social and nationaldevelopment.Both the public and private sectors will collaborate effectively and efficiently through public private partnerships (PPP) and other innovative models to deliver infrastructure, utility and other services inane environment-friendly manner. Bangladesh will emerge as a country with sustainable and inclusive economic growth. It will become a country that has diversified industrial and technologically advanced service sector activities based on a strong foundation of agriculture. The economy and national development will be effectively managed, with the government ensuring macroeconomic stability and creating right incentives, and the private sector providing the direction and impetus for new investments to raise the level of outputs and employment. A Resilient Democratic Nation Born from the great Liberation War of 1971, Bangladesh is a non-communal, progressive, democratic state that has worked to establish an economy and society free of inequality, and to nurture a culture of democracy and respect for human rights for all fostered by patriotism in all areas of social existence. Along with a tolerant democracy, the aspiration is for a more caring society based on a system of values rooted in the culture and traditions of Bangladesh. The
  25. 25. 25 country’s value system will develops it progresses, and the values will translate from collective to individual perspectives creating collective drive to work together towards national development. Bangladesh’s heritage, rich in content and diversity, shall have a place in our present and be the anchor for the country’sambitions.Promoting democratic culture Nurturing political maturity and a culture of democracy will enable the country to gain greatersocio- economic benefits during the Plan period. Political maturity will come through greater tolerance and cooperation in politics through mutual respect and trust. The election process wills beamed still more credible and effective. Parliament shall be turned into the centre of all power and decision making. Members of Parliament will be responsible for law making and ensuring governmental accountability to the people. The Parliamentary Standing Committees will be made more effective. Right to information and free mediate free flow of information on the government’s financial transactions and records, except those which involve national security and criminal investigation, will be made available under the Right to Information Act 2009. This will require all public officials, including the elected, to provide annual information on their state of income and wealth. This will be an important component of Digital Bangladesh under the Vision 2021. Further independence of the media, both electronic and print, shall be ensured. Independence of the judiciary the separation of the judiciary from the executive has already been achieved. What remains to be done is to ensure the full complement of judges at all levels, separate investigation and prosecuting wings to enable the judiciary to carry out their duties without interference. Independence of the judiciary will be supplemented by monitoring and supervising the judicial process. Improved training of the lower judiciary and further legal education for lawyers will increase the judiciary’s efficiency. To expedite justice in rural areas, alternative dispute resolution will be brought under the supervision of judicial magistrates. Respected local civil society members will be called upon to contribute to conflict resolution in rural areas through negotiation in pre-trial courts. Promoting Gender Balance In a continued Endeavour to ensure gender balance as enshrined in the Constitution’s Fundamental Rights and Principles for Administration of the State chapters, the government introduced a separate quota for women in Parliament. The quota system for women also applies
  26. 26. 26 to public services, and the Bangladesh Jatiyo Moheela Sangstha was formed. Other similar measures were introduced to empower and mainstream women in national life. Institutionalization of gender responsive planning and a budget promoting gender balance is also in progress. The National Policy for Women’s Advancement 1997 provides for the elimination of all forms of discrimination against women, equal rights of inheritance to property and equal partnership in development. The Plan will give women their rightful share in skills development training both at home and abroad, and will improve professional excellence. The CEDAW Charter will be ratified without reservation. All laws relating to gender inequality will be reviewed to ensure gender sensitive good governance, security at home and in the workplace, the rule of law, transparency and accountability in all public and private organizations in an inclusive society. The Plan will provide incentives for women to pursue vocational higher, secondary and tertiary education and to obtain the necessary training that allows them to compete on equal terms in the job market and also become entrepreneurs. The availability of institutional collateral free credit to women entrepreneur for setting SMEs could be an important step for encouraging women in this venture. A separate bank for Women may be established for supporting women entrepreneurs and traders. Special consideration will be given to appointing women candidates to key and statutory bodies such as the PSC, SEC, Election Commission, ACC, BTRC, PERC, Bangladesh Bank, UGC, the higher judiciary and other strategically important sectors and positions. One-third of nomination of candidates to all national and local level elections may be reserved by all the parties contesting the elections. And one-third of the office bearers of all registered political parties will have to be filled by women. The feasibility of incorporating into GDP calculations the value added by women in the household, kitchen garden and similar other activities will be examined by experts. Due attention will be given to enhancing the economic participation rate of women from 29 per cent to at least 40 per cent by 2021. The Model for Achieving Middle Income and high HDI Country Status If Bangladesh is to achieve middle income country and high HDI status by 2021, it will have to address the multi-faceted and complex concerns of development, involving economic factors as well as social, cultural, and political aspects. There are changing dynamics in the interactions
  27. 27. 27 between these factors that also need to be taken into account in assessing the outcomes. For the sake of simplicity, the basic assumption adopted in the model is that the level of economic Well- being, as measured by national income per capita, is a prerequisite for development; and that the level of per capita income is correlated with several key non-economic factors which define Middle income and high HDI country status. The model is supported by a technical framework capable of analyzing poverty, distribution, and the social implications of the income growth scenario1 these results are used to define the growth path that will lead Bangladesh to a middle- income and high HDI country by 2021. Development priorities are sharpened further by these considerations and drivers of change. Development Priorities Development priorities are distilled from the vision statement and therefore have close links with where Bangladesh will be in the year 2021. The goal is to promote an equitable society as a basis for social and political stability and the achievement of national unity. There will be poverty eradication, gender equality, balanced regional development, and an inclusive society with workers’ rights and responsibilities firmly established. The path to poverty reduction will promote broad-based growth and actions in distributive justice to reduce inequality in the distribution of income and wealth. An employment generating linkage through micro, small and medium enterprise will create a vehicle for income generation-cumpovertyeradication – not just for poor people, but also those with disabilities and autism as well as indigenous people. The provision of universal socio-economic-cultural safety nets, or social protection, including targeted programmers will be a part of the government policy to ensure inequitable society as the country climbs the ladder to higher economic growth. The equal rights of women and men, and measures to bring advancement to society’s left-behind groups are also components of the equity agenda. Policies will explicitly recognize that women’s poverty has different dimensions and is generated through complex processes that need specifications. Poverty reduction of women requires holistic strategies for gender equality, which includes safety net programmers for the female-headed households along with appropriate skill training supported by micro-credit. A women-friendly health system is required that can effectively cater forth differential needs of women. The Perspective Plan aims to create a more inclusive and equitable society characterized
  28. 28. 28 by human rights and equal opportunity for all. It will work to ensure that every person, regardless of gender, age, race, class, caste, ethnicity, religion, or geographical location, can enjoy equal opportunity and rights, making development a process that actively includes all the people that have been excluded to date. In order to achieve the desired society, cultural, religious, and ethnic diversity has to be promoted as national heritage through pursuance of policies for cohesion and inclusion of the ethnic, religious, and cultural minorities into a national and social force. The civil society will be encouraged to launch cultural movement for integrating the Dalits, Harijon, Antaja, tea garden workers, indigenous, people with disability and autism, and other socially disadvantaged and stigmatized groups into the mainstream of the society. All forms of discrimination against the socially excluded groups will be eliminated and their human rights and citizenship rights be established. The full implementation of the 1997 Chittagong Hill Tracts, the Bangladesh Disability Welfare Act and making Land Commission effective will be a move in this direction. The Development Priorities of the Perspective Plan Are 1 The technical framework consists of four linked models: (i) a macroeconomic framework containing five accounts delineating the economy to generate a consistent macroeconomic outlook over the Plan period; (ii) a dynamic computable general equilibrium model into which the key outcomes of the macroeconomic framework are fed to allow the sect oral implications to be calculated; (iii) an employment satellite matrix in which sect oral value additions/outputs are linked to calculate employment impacts; and (iv) a distribution and poverty module in which household income, consumption, and relevant information from the above models are linked to assess poverty situations and distributional implications. • Ensuring effective governance. • Promoting an innovative people for digital Bangladesh. • Creating a caring society. • Addressing globalization and regional cooperation challenges.
  29. 29. 29 • Ensuring broad-based growth and food security. • Providing energy security for development and welfare. • Building a sound infrastructure. • Mitigating the impacts of climate change. These thematic approaches will shape and form the foundation on which strategies are developed for the overarching vision that will guide policy development, and place the strategies inappropriate relational contexts. While development priorities are elaborated in the following chapters, it is clear that the nation needs to harness all its resources and skills, and ensure their prudent use in the strategy’s implementation. It is also important to recognize that an integrated approach will be necessary to move forward in each priority area, because these crosscutting areas are underpinned by culture, diversity, and physical differences. The combined efforts of public and private sectors will be needed to create the critical mass necessary to support the development efforts. Effective governance is the strongest means to achieving the goals of the Perspective Plan. The administration of justice, good governance, effective institutional structures for development, law administration and legal affairs, national security, and public safety are essential for fair contracts, dispute resolution, promotion of entrepreneurship, and to encourage businesses and individuals to take risks. Without upholding rights and adhering to basic tenets of justice, the poor and disadvantaged groups will remain unable to take economic and social opportunities for economic growth. Effective governance will employ public resources efficiently in activities with high social returns, will strengthen public institutions, minimize corruption, terrorism, and extortion, encourage citizens to develop greater respect for the authority and rule of law, and stimulate the private sector to take socially responsive decisions an innovative people will be the foundation of the envisioned society. These individuals will acquire appropriate knowledge, skills, and abilities through a strong learning system consisting of preprimary, primary, secondary, and tertiary education; skills development and training; and application of research, science, technology, and innovation. Innovation will be fostered in education and at work; and the innovative people will value the dignity of work, accept risk, and will emerge as lifelong learners. They will identify problems and seek solutions, thereby improving the economy’s competitiveness. Creative citizens will underpin Bangladesh’s
  30. 30. 30 journey to middle income and high HDI country status by 2021.The creation of this innovative people will demand vast information technology efforts and computer technology during the Perspective Plan period. ICT will be the vehicle through which a Digital Bangladesh will be created. This will raise efficiency and productivity across all sectors of the economy, including agriculture, health, education, training, and e-governance, and will help to bring greater transparency in governance. A caring society will nurture the seeds of progression and patriotism. It will compel individuals, communities, and institutions to move forward to stamp out poverty, discrimination, economic and social marginalization, disease and poor health, and sub-standard living conditions. This will create new possibilities and take advantage of existing ones for the communities to work collaboratively with trust, goodwill, integrity, and civic pride so that none is left behind. Nurturing such a society requires actions in the related areas of health, housing, labor and social security, gender and development, youth and culture, sports and recreation, sustainable communities, and socialservices.Addressing globalization and regional cooperation challenges are important for Bangladesh to sustain increases in the quality of life through productivity and income growth. Instituting a prudent macroeconomic policy framework conducive to achieving high economic growth with stability; ensuring the availability of, and access to, appropriate financial services and entrepreneurship in agriculture, industry and services; promoting international relations, regional and sub-regional cooperation, and trade; and expanding tourism are among the areas where facilitating policies will create new opportunities and promote innovation. That in turn will help the country move to higher productivity and investment regime. The Perspective Plan envisages a far more dynamic industrial sector, creating an export environment that is broad-based, skills-intensive, and competitive. There is urgency in the need to expand external resources – particularly in raising remittances – and that will require the application of technology-based and user-friendly systems for remitting money, providing good skills training for existing and emerging markets, and aggressive bilateral negotiations for outbound migrant workers. Addressing globalization and regional cooperation issues will entail negotiations that give Bangladesh better access to global and regional markets. Effective engagement in multilateral trade liberalization is important, and offers real opportunities for Bangladesh to take advantage of its unique geographical location.
  31. 31. 31 Making Vision 2021 a Reality Generating the Will and Skill: The implementation of the Perspective Plan envisages the full commitment of will, skill, and resources from all stakeholders to developing the nation into a middle-income country by 2021. The government is required to make long-term thinking a central element of the decision making process and service culture. The government cannot achieve the Vision alone. It is a collective effort in which the private sector, civil society, and all other stakeholders will share responsibility to reshape the nation’s future. The consultative process in formulating the Planmust continues throughout the implementation since Vision 2021 is not a destination in itself but a journey. The Plan no doubt inspires great visions but the challenge is not to let it fall short of expectations due to implementation failures. Institutionalizing Plan Implementation: The preparation of the Perspective Plan is only the first step along the challenging road to “Making the Vision 2021 A Reality”. Effective and efficient execution of the Plan is the key, its success will be judged by progress made against the goals, and targets stein the Plan. This Plan presents the broad framework to leave considerable latitude for the Sixth Five Year Plan (2011-2015) and the Seventh Five Year Plan (2016-2020) to work out operational details of how the country should move forward. The execution design of the Perspective Plan has to be unique. In recognition of the importance and challenge of the task, a Perspective Plan Management Office (PPMO) at the Planning Commission may be established to lead, guide, and coordinate the execution of the Plan. An Independent Vision 2021 Council may be created to continuously refine the Vision 2021 and the Perspective Plan and track progress in an objective manner to meet the need for independent, continuous tracking of progress and feedback to inform policy formulation and decision making. Conclusion We have vast human resources. Our natural resources and agro-based raw materials are also not negligible. Only a good govt. policy and environment can speed up industrialization and create employment opportunities for millions. So, considering our natural and financial constraints and huge pressure for employment, we should focus on small and medium level export oriented and lab our thick industries. In examining the economy of Bangladesh, wherever one turns the
  32. 32. 32 problems crowd in and threaten to overwhelm the analysis. Underlying problems that have threatened the young nation remain unsolved. These problems include overpopulation and inadequate nutrition, health, and education resources; a low standard of living, land scarcity, and vulnerability to natural disaster; virtual absence of valuable metals; and inadequate government and bureaucratic structures. Yet the brief history of independent Bangladesh offers much that is encouraging and satisfying. The World Bank, leader of the Bangladesh Aid Group, described the country in 1987 as a success story for economic development and expressed optimism that the goals of the Third Five-Year Plan, and longer term development goals as well, could be attained. Government policies had been effective in stimulating the economy. The private sector had benefited from an environment of greater economic freedom and had improved performance in banking and production of jute, fertilizer, ready-made garments, and frozen seafood. The average growth rate of economy had been a steady, if unspectacular, 4 percent since the beginning of the 1980s, close to the world average for developing countries. The picture of day-to-day and even year-to-year performance of the economy of Bangladesh is a mixture of accomplishment and failure, not significantly different from that of the majority of poor Third World countries. The government and people of Bangladesh are entitled to take some pride in the degree of success they have achieved since independence, especially when one contrasts their success with the gloomy forecasts of economists and international experts. The international donor community, led by the World Bank, similarly can be proud of the role it has played in assisting this "largest poorest" nation to become a respected member of the family of nations
  33. 33. 33 Reference