Industrialization in Bangladesh. Problems, Current scenario

1. Industrialization in
Bangladesh
Uday Kumar Shil
12-3-20-0025
Department of Applied Sociology
ASA University Bangladesh
(ASAUB)

2. 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 rationalization.
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.

3. 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 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.

4. History of industrialization of Bangladesh
• British period
• The process of industrialization and the growth of industrial capitalism in India was integrally connected with the
consolidation of British colonial rule and the transformation of India from a feudal into a colonial and semi-feudal
country.
• Industrial capitalism emerged and developed in India in conditions basically different from those in which it had
developed in the West. It arose in a dependent country, ruled by foreign power and so was unable to develop along
independent lies. Colonial rules transform the Indian economy into an appendage of the metropolitan economy.
• Secondly, unlike in Britain, industrial capitalism grew in this country not by beginning of 20th century Jamidars like
Monindra Chandra Nandi of Kashimbazar, Brajendra Kishor Roy Chowdhury of Mymensingh, Biprodas Paul
Chowdhury of Nadia, Taran Gobinda Chowdhury of Pabna and others invested in industrial enterprises.
• Pakistan period
• After the partition of Bengal in 1947, East Pakistan inherited a small share of industries of Bengal. East Pakistan got
none of 108 jute mills, 18 iron & steel mills and 16 paper mills of Bengal. Only 90 of Bengal’s 389 cotton mills, 10
of its 166 sugar mills and 3 of its 19 cement factories fell in the territory of East Pakistan. The cement factory Chattak,
Sylhet had to depend on limestone supplied from Ashaam, India. The cotton mills of East Pakistan had to depend upon
imported raw materials. The 1951 census revealed that East Pakistan had 63,234 unskilled non-agricultural labourers,
115,480 skilled labourers engaged in manufacturing sectors, 184,535 mining and quarry workers and 121,522
professional persons. The manufacturing sector comprising mainly of food, drink and tobacco processing units
employed a total 602,875 persons (4.67% of the total labour force), of whom 433,148 were involved directly in
production process and 172,727 in subsidiary activities. There were a total of 360,603 cottage enterprises which
employed 949,074 persons. Of the manufacturing units only about 200 of the enterprises used power.

5. About Industrialization of 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.
• 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 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, thy 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.

6. 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. 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.

7. 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.

8. 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
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.

9. 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 Plan must 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.

10. 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 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