What is the story about?
What's Happening?
Experts have raised concerns about Bangladesh's industrial and agricultural development, emphasizing the need for stronger backward linkages and automation. Commerce Adviser Sheikh Bashiruddin highlighted the country's loss of manufacturing diversity due to an 'anti-manufacturing bias.' He noted that while Bangladesh produces numerous motorcycles, it lacks the capability to manufacture engines. Bashiruddin stressed the importance of adopting a clear industrial model and making short-term sacrifices to enhance industrial capacity. Anwar-ul Alam Chowdhury, President of the Bangladesh Chamber of Industries, echoed these concerns, emphasizing the critical role of backward linkages in achieving self-sufficiency in food production. He pointed out the unemployment challenge, with over 2.6 million people jobless, and the limited potential of the garments sector. Chowdhury advocated for a shift in focus to manufacturing, particularly light engineering, as a future lifeline for the economy.
Why It's Important?
The emphasis on strengthening backward linkages and automation is crucial for Bangladesh's economic growth and sustainability. The country's economy currently relies heavily on agriculture, ready-made garments (RMG), and remittances, with RMG contributing 83% of exports. However, these sectors are underdeveloped, and the garments sector is unable to generate new employment opportunities. By focusing on manufacturing and light engineering, Bangladesh can tap into global market opportunities, such as the projected growth in the farm machinery and automobile industries. This shift could create real value addition and help address the unemployment challenge. Moreover, developing a national economic vision that includes agriculture, SMEs, and technology-driven businesses could drive future growth beyond political differences.
What's Next?
The proposal to establish an economic zone for agricultural products is currently under review, which could bolster domestic production and export capabilities. Runner Automobiles PLC Chairman Hafizur Rahman Khan has stressed the need for policies supporting 'Made in Bangladesh' products. Additionally, Hossein Zillur Rahman, Executive Chairman of the Power and Participation Research Centre, has called for a national economic vision built on consensus, focusing on agriculture, SMEs, and technology-driven businesses as new growth engines. Coordinated action from government and private stakeholders is essential to identify problems and create opportunities for future generations.
Beyond the Headlines
The call for strengthening backward linkages and automation highlights deeper economic challenges and opportunities for Bangladesh. The reliance on remittances and garments for growth is unsustainable, necessitating a shift towards more diversified and technologically advanced sectors. This transition could have significant cultural and societal impacts, as it may require changes in workforce skills and education systems. Additionally, the focus on 'Made in Bangladesh' products could foster national pride and enhance the country's global economic standing.
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