Govt plans forming new bodies for post-LDC competitiveness

The government is working to form new bodies to boost trade and enhance competitiveness in the post-LDC era, said a member of the LDC graduation committees.

A proposal has been made to merge the Export Promotion Bureau and Business Promotion Council into a trade diversification body, said Monzur Hossain, a member of the General Economics Division (GED) of the Planning Commission.

He made the comment at a book launching ceremony held at the Bangladesh Institute of Development Studies (BIDS) in Dhaka today.

Rushidan Islam Rahman, a senior fellow and former research director of BIDS, authored the book Shilpayan O Roptanibhittik Poshakshilpo (Industrialisation and Export-Based Garment Industry).

Hossain, a member of all three LDC graduation committees, said a separate international trade division may be created under the commerce ministry, as trade issues often get less priority due to the ministry's other responsibilities.

The government has also been working on how to reduce hidden costs in customs and the banking sectors to ensure smooth business operations in the garment sector, Hossain added.

It is expected that these initiatives will make doing business easier and smoother, ultimately reducing the cost of doing business and shortening the time needed to enhance Bangladesh's international trade competitiveness in the post-LDC period, he said.

The economist urged the private sector to support the government with innovative ideas to stay competitive post-LDC.

He noted that exporters are already benefiting from a favourable dollar rate and suggested revising industrial policy to help sectors like leather, rawhides, ICT, and electronics match the garment industry's success.

He added that while the future of large-scale industries in Bangladesh may be uncertain, there are better prospects for small and medium enterprises.

A separate study can be conducted to examine why the workforce in the garment sector is shifting to other areas, Hossain said.

Zaidi Sattar, chairman of the Policy Research Institute, said industrial growth in Bangladesh began in the 1990s, marking the transition from agriculture to manufacturing.

Entrepreneurs in sectors such as footwear produce goods for both domestic and international markets, but many prefer to sell in local markets rather than export, he said.

This is because the domestic market is protected, which acts as a form of incentive. Also, they are not required to meet international compliance standards when selling locally.

Rushidan Islam Rahman, the author of the book, said there is an ominous sign in the industrialisation trend: industries and wealth are being concentrated among a few large industrial entrepreneurs, similar to the pre-independence era.

On the other hand, the unemployment rate is rising, while the share of large-scale industrial units is increasing in terms of value addition and employment. In contrast, small and medium enterprises are experiencing declining contributions in both areas, she said in the book.

The author also noted that the garment sector has the potential to go much further in the future.

M Asaduzzaman, former research director of BIDS, said automation is needed in the garment sector in some areas.

The productivity of female workers in garment factories is not less than that of male workers, he said.

He noted that the Department of Environment has not been active enough in enforcing the establishment of effluent treatment plants in industrial units.

He also said that female workers are often the primary victims of termination in the garment sector.