Development Realities of Bangladesh

Development Realities of Bangladesh

Md. Joynal Abdin

The Daily Sun on October 5, 2017

Bangladesh is one of the most potential Least Developed Countries (LDCs) to be graduated from the list within next one or two decades. It has proved its capacity by achieving several socioeconomic indicators during the last few decades.

For example, Bangladesh reduced the number of people living below poverty line from 31.5% in 2010 to 23.2 % in 2016, maintained economic growth rate between 6-7 % during the last couple of years, increased foreign exchange reserves to $33 billion in 2017 from $10.8 billion in 2010, reduced lending rate from 15% in 2013 to 9.5% in 2017 etc. Bangladesh economy proved its resilience power in much international financial turmoil in the past. We are hopeful to overcome current challenges like massive flood in the Northwestern part of the country, injection of about a million Rohingya refugees by Myanmar into its Southeastern part etc. too.

We have visions to be developed from our major political platforms in the form of vision 2021, vision 2030 and vision 2041 etc. Now it is a moral responsibility of the political leadership to implement the visions from respective platforms. Bangladesh economy has to maintain 7% plus economic growth rate for the next couple of years in order to graduate to middle income country status within the projected period. Maintaining economic growth numerically may not be enough to be a middle income country without inclusiveness of the growth. That means we need inclusive economic growth in a rate of 7 plus per cent. For inclusive growth we have to ensure female participation in the income generating activities, not only minimising the gender gap in the labour market. Macroeconomic stability has to be ensured through maintaining the trade balance, underperforming loan, stability in the financial sector etc.

Unemployment is another major treat to the economic development of Bangladesh. Employment generating movement or making the workforce self-employed is a major task for the government and policy makers now. Industrialisation especially promoting micro, small and medium enterprises could be an aid to employment generation. The government may go for rapid policy reform to make the investment wheel move faster than ever before. Restrictions, licensing requirement, registrations and permit requirements could be reduced to boost up the investment climate.

Policy reformation is not enough to boost up development of the country. We have to ensure an entrepreneurial environment from every aspect like, pro-entrepreneurial education system, well setup skill development facilities, availability of business development services, reduced requirements of permits, registrations, licences etc. Free movement of capital machinery and raw materials, hassle free transportation, security and safety of the local and foreign investors have to be ensured by the state.

Bangladesh has to be more cautious about the skill development of its population from top to the bottom edge. About 8 million Bangladeshi expatriate workers are earning $13-15 billion per year whereas it has to pay back $5-6 billion per year by recruiting less than half a million foreign professionals here. Per head income and payment ratio is too high here. Therefore we have to train up our expatriate workers to ensure better earnings in the bottom of the pyramid. At the same time we have to train up our professionals to develop managerial and technical skills to take over the seats from the foreign professionals for saving foreign exchange at the mid-level.

Bangladesh has to start a good number of trade policy reforms for better flourishing of the economy. Internationalisation of local companies could initiate journey of a Bangladeshi global brand like the Coca-Cola, Bata etc. Reform is required to increase access to foreign capital by the Bangladeshi entrepreneurs. Capacity building of the sea ports to handle growing foreign trade of the country is one of the most urgent needs of the time.

Other socioeconomic priorities for development of Bangladesh could includes reform the education system to make it productive and demand driven, spreading up the healthcare facilities into the door step of rural poor people, promoting agriculture for food security and agro-processing industrialisation, infrastructure development, electricity generation and other energy security, qualitative change in the politics, maintaining friendly trade regime with the trade partners, rooting out corruption through social revolution etc.

Working upon the Sustainable Development Goals (SDGs) could be a comprehensive syllabus for Bangladesh to be on the right track of development. There are 17 goals and 169 targets to be achieved by the UN member countries by 2030. Goals and targets of the SDGs are setup to boost up economic, humanitarian and environmental development of the planet and to save the planet as a whole. Therefore rigorous efforts from all stakeholders are required to achieve the SDG goals in time so that development of Bangladesh could be a reality of tomorrow. Political leaders, bureaucrats and well off people of the society have to be more responsive from respective positions to achieve each of the 169 targets by Bangladesh. 

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Economy: Facing the challenges

Economy: Facing the challenges

 

Md. Joynal Abdin

The Independent on September 25, 2017

Bangladesh economy was flourishing during last couple of decades with on an average 5-6 per cent growth. As a result, we are hopeful that, Bangladesh could get place of middle income country from existing lower middle income country status by 2021, graduate from LDC by 2030 and finally become a developed economy by 2041. With this view in mind our political leadership offered vision 2021, vision 2030 and vision 2041 from respective platforms. More or less policy reforms have been initiated to align with the vision and create a pro-growth environment. Entrepreneurship development and private sector growth got attention of the government to be promoted and prosper.

As a least developed country (LDC) Bangladesh has few built-in barriers like poverty, unemployment, limited resources, shortage of technical knowhow, absence of good governance, corrupt bureaucracy, absence of true sense democracy etc. towards its development. But recently we are in front of few external barriers like recent flood in the northwest, Rohingya crisis in the southeast and upcoming national election in 2019. These three crisis could be well managed if concerned authorities play a respective role with dedication and neutrality. Each of the above mentioned crisis could create unrecoverable damage in the way of our economic prosperity if these are not being managed with professionalism and liability to the nation.

 Around 20 districts of the northern and northwest region of the country affected by the massive flood in 2017. This year flood has broken record of the historic flood of 1988. About 1 million people have directly been affected due to this flood. A good number of agro-farms including poultry, fisheries, and dairy farms has been destroyed by the flood. Exact monetary value of this damage is not calculated yet but no doubt that it is a severe damage to the economy of flood affected people. Poor people of the flood hit districts already loss their livelihood. Damage of will be more painful with the passage of time. This pain will be feeling more when water goes out and new irrigation season starts. Currently farmers are continuing with their savings of crops and cash, but his savings will be ended up if waterlogging period extended than that of the normal phenomenon. Government has to continue relief and other social safety net support in the flood affected area till new crops comes up. This is not less than a six months’ period. Providing relief to 1 million flood affected people for long six months is really a challenging tasks for the resource scarcity nation like us.

Military of neighbouring Myanmar (Burma) is operating a genocide against its citizen in Rakhine State (Arakan). This military operation aims an ethnic cleansing in Rakhine against the Muslim majority Rohingya community. Rohingyas were ancient citizen of independent Arakan in seventies. Burmies king conquered Arakan and made it a state of Burma (Myanmar) and rename as Rakhine. Burmies ruler never provided minimum humanitarian rights of Rohingya community as their citizen. Current military backed government of Myanmar is ignoring citizenship of Rohingya community and pointing out them as outsiders. They are operating an ethnic cleansing program against the Rohingya community. Myanmar military forces are killing Rohingya men, raping Rohingya women, burning their houses, destroying wealth without any causes. As a result, Rohingyas are fleeing out and became refugee in the neighbouring countries mainly in the Muslim majority Bangladesh to save their lives. Total 1 million Rohingya entered into Bangladesh in different times mostly (about 0.7 million) in last two months.

Bangladesh offered them food and shelter due to a humanitarian reason. But over populated and flood affected Bangladesh could not bear their liability for a long time. Ensuring basic needs of a human being for 1 million Rohingya is beyond the capacity of a least developed and already over populated country like Bangladesh. International community as well as regional powers like India and China is playing role of underworld don with this Rohingya crisis. Another big brother Russia is supporting the war criminals in this case. Global geopolitical stakes of these big brother could be motivational factor in this case. But we (Bangladeshi) are not responsible for this crisis we do not want regional or global geopolitical game with this humanitarian issue. We want that global community will come forward to ensure humanitarian needs of this largest number of refuses and get them back to their home with safety, security and dignity. This Rohingya crisis could be another big whole towards projected economic prosperity of Bangladesh.

Current legal government is ruling the country with 154 uncontested (without peoples voting mandate) members in the parliament. Legal validity of this government is declared by the court. But ethical standard of this government is still questionable in home and abroad. Therefore, current prime minister Sheikh Hasina wants an unquestionable election in 2019. Similarly, general people of the country is also waiting for a free, fair, credible and participatory election in 2019. But ensuring that free, fair, credible and participatory election is still a big challenge for the nation. Ruling party has completed all legal arrangements to hold the national election under their regime. But it is quite impossible to hold a fair election under any political party in the power. Dhaka city corporation election and elections of last few years proved this assumption. Therefore, same scenario of 2014 could be seen again in 2019. Government could use the law enforcement agencies to hold a partial election and oppositions may go for strikes and other damaging programs. Which may be cause of mass destruction of people’s wealth and life.

Finally; we could state that, massive flood, Rohingya crisis and upcoming national election etc. could be nightmare before the economic prospects of Bangladesh. Flood affected people have to be rehabilitated in time through ensuring their basic needs and rehabilitating supports. Rohingya crisis has to be resolved with support of international community, global platforms, and our friends in the Europe, America and Muslim worlds. Regional big brothers may not play a friendly role here in this regard. We may play the same role which was played by our great neighbouring friend India in 1971. If India have done a great job for the Bangladeshi in 1971 why not Bangladesh could adopt the same policy for the Rohingya community in 2017. Finally, we have to work out and reach into a way forward to hold the national election 2019 peaceful, free, fair, credible and participatory by leaving hock and cook instruments away. Otherwise, our vision 2021, 2030, and 2041 will remain in the paper and never be in practice.

Two Starting Goals for Achieving SDGs

Two Starting Goals for Achieving SDGs

 

Md. Joynal Abdin

Published by the Daily Sun on August 20, 2017

Bangladesh has significant achievements in attaining the Millennium Development Goals (MDGs). For example, Bangladesh was able to reduce poverty from 56.7% in 1991-92 into 31.5% in 2010 and finally 24.8 % in 2015. Similarly, our achievement in achieving universal primary education, reducing child mortality, promoting gender equality and women empowerment was outstanding globally.

Global leaders adopted a set of new development goals on January 01, 2016 in a historic UN Summit to be achieved by 2030. These new 17 goals are known as the Sustainable Development Goals (SDGs). SDGs are focused to overcoming poverty (1), overcoming hunger (2), healthy life (3), quality education (4), gender equality (5), access to clean water and sanitation (6), access to clean energy in affordable cost (7), economic growth through decent work (8), industrialisation along with innovation and required infrastructure (9), reducing inequalities (10), inclusive and resilient cities (11), sustainable production and consumption (12), controlling climate change (13), proper management of resources under water (14), sustainable use of resources on land (15), peace through justice and effective institutional setup (16), finally global partnership to achieve the goals (17).

It is visible that, few SDG goals are the continuation of the goals of MDGs. For example, the 1st goal of MDG separated under two different heads poverty and hunger as the 1st and 2nd goals of SDG. Primary education target of MDG is enlarged here in SDG as quality education. Similarly, gender equality, environmental sustainability and global partnership to achieve the goals are common is both the goals namely the MDGs and SDGs. There are some additional targets in SGDs like decent work and economic growth, industry innovation and infrastructure, reduced inequalities, inclusive and sustainable cities, responsive consumption and production, climate action, life below water, life on land, peace, justice and strong institutional setup etc. New goals of SDG are mainly focusing on two major themes namely economic growth as a catalyst of poverty reduction secondly sustainable development with a care to the environment.

All of the 17 goals are interrelated and very much linked with each other. For example, no-hunger will be achieved unless zero poverty could be ensured. Similarly, we can state that, there will be zero poverty while no hungry people will be there in the society. There could be a long debate which one comes first, zero poverty or no hunger. Other goals like quality education versus economic growth may be placed in such a debate, quality education requires adequate economic investment to train up human resources, establish libraries and laboratories etc. On the other hand, a well-educated nation could earn sustainable economic prosperity. So which one comes first, economic growth or quality education? Similar debate could be argued with the goal reducing inequalities versus inclusive and resilience cities.

Now, almost one and half years have gone to set targets, outputs, outcome etc. which are tools to measure the achievements of SDGs. Like other 193 nations Bangladesh is also working out to adopt SDG focused policies, action plans etc. We are enacting SDG oriented laws, policies, projects so on and so forth. But the reality is that, a country like Bangladesh has limited resources to focus on all these 17 goals of SDG. Therefore, we have to select one or two goals to work with full strength which will facilitate achieving other goals as well. These two goals could be termed as the starting goals to achieve SDGs. I am here to propose goal 4 i.e. quality education and goal 9 i.e. industry, innovation and infrastructure as the start for the goals of SDGs.

Currently we are in need of achieving these two goals first; these will facilitate achievement of other goals. Quality education could lead us towards poverty reduction, zero hunger, gender equality, responsive consumption and production etc. Similarly, industry with innovation and infrastructure could lead us towards decent work and economic growth, reduction of inequality, no poverty and zero hunger etc.

Therefore, the government of Bangladesh could declare goals 4 and 9 of SDG as preparatory goals and work intensively on these for the next 10 years.   Employment oriented, productive and hands on education could be promoted to ensure optimum output of education. Similarly promoting industrialisation, innovation and infrastructure development could be strengthened for employment generation, increasing economic growth, export earnings, poverty alleviation within the shortest possible time.

Different ministries will have to work for achieving different SDGs but maximum budgetary allotment as well as attention of the government should go for quality education and promoting industrialisation, innovation and infrastructure development for the next 10 years in Bangladesh. Within this period, we will achieve strengths and qualified manpower to attain other 15 sustainable goals within the last 5 years of SDG period. Therefore 2015-25 decade should be decade of quality education and industry, innovation and infrastructure development. If we could make justifiable progress in these two goals, then Bangladesh will automatically achieve other goals within the set period.

All the government, non-government, autonomous, NGO operated, local and foreign aided educational institutes should get maximum budgetary, policy, instrumental support of the government to ensure quality education. At the same time industrialisation, innovation and infrastructure development should get maximum priority of the government for next 10 years. Thus Bangladesh could start its journey towards achievement of SDGs by 2030 and ensure its optimum result.

Merits and Demerits of Foreign Direct Investment

Merits and Demerits of Foreign Direct Investment

Md. Joynal Abdin

The Daily Sun on May 26, 2017

 

There are significant reserves of foreign currency in Bangladesh. It is mounting up during the last few years. At the same time, we have a good amount of unutilised money in the banking system. It seems good to listen that we are becoming a wealthy nation with handsome cash in hand. But till now our investment in percentage of GDP is about 29%. It is 56% in Bhutan, 33.25% in India. Bangladesh’s investment in percentage of GDP is increasing day by day but the growth rate is too slow.

It is a matter of investigation whether foreign currency reserve and unutilised cash in banking system is mounting because of this poor performance in investment or not. In terms of attracting foreign direct investment (FDI) we are performing even poorer than the neighbouring or competitor countries. Bangladesh earned USD 1191, 1726, 1432, 1830 and 2001 million during the last five fiscal years. It is only 0.98, 1.19, 1.74, 1.47 and 1.73% of the GDP whereas India earned FDI of 2.00, 1.31, 1.52, 1.70 and    2.11% of its GDP during the last five years. Vietnam got FDI 5.48, 5.37, 5.20, 4.94 and 6.10% of its GDP. The Maldives received FDI 17.29, 9.05, 12.91, 10.77 and 8.70% of its GDP during the last five years.

Let’s have a look at the benefits of receiving FDI into a developing country like Bangladesh. FDI could offer the following benefits to its host country:

1    Increasing supply of foreign currency and channelise international sources of industrial funds;

2    Increases employment opportunity and help to reduce unemployment rate;

3    Increases skills of the host country’s labour and facilitate technology transfer;

4    Increases managerial knowledge of the host country’s professionals;

5    Foster economic growth, export earnings;

6    Introduces products standardisation and international exposure of other products;

7    Provides corporate tax to the government and contribute in revenue growth;

8    Creates a competitive business environment and productivity improves with the competition;

9    Develops international channel of distribution;

10    Assists in adopting international standard policies and creates a global business regime;

11    Contributes to development of backward and forward linkage local enterprises and

12    Assists in improving living standard of the stakeholders through different social responsibility measures.

Bangladesh is fighting with the development barriers like unemployment, poverty reduction, enlarging product basket, enlarging export basket etc. since its independence. It achieved significant economic advancements but till we have scope to grow further. Therefore, the government attaches the highest priority to industrialisation of the economy by any means. Already we have eight Export Processing Zones (EPZ), 78 Industrial Estate developed by BSCIC to host investment. Furthermore, the government is progressing to establish 100 Special Economic Zone (SEZ) in Bangladesh. All these arrangements are to host investment either from local or foreign sources. Bangladesh Investment Development Authority (BIDA) has been restructured by merging the Board of Investment (BoI) and Privatisation Commission together. BIDA is organising conferences, seminars, road shows abroad to draw attention of the foreign investors. The government declared a long list of fiscal and non-fiscal incentives to boost up the investment movement. But till now Bangladesh’s performance in FDI attraction is considered poor. It is because a number of other factors like good governance, political stability / understanding among the political parties, security and safety of investment, law and order situation, availability of industrial logistics, hassle-free business registration and licensing etc. are involved with an investment decision making.

Now Bangladesh has to go for a comprehensive investment services like one stop service, approaching foreign investors with specific project proposals, justification of investment policies and revision (if necessary), establishment of sector specific technical and engineering institute, establishment of sector specific testing laboratories, signing free trade agreements with existing and potential export destinations, reducing business licenses and registration requirements, activating BIDA with own manpower instead of the cadre officials deployed in deputation to activate the investment attraction measures.

Bangladesh has everything to be a good destination for foreign investment. It is located at the heart of South Asia, corridor between SAARC and ASEAN countries. It has a large number of domestic consumers. Purchasing power of local people is increasing day by day with economic growth of the country. Bangladesh has a good number of sectors to invest profitably with supply of enough manpower in competitive cost. The government keeps assisting the investors with a long list of fiscal and non-fiscal incentives. Finally export items of Bangladesh are enjoying duty-free and quota-free market access to most of the export markets other than the USA. All the LDC facilities under the WTO arrangement are enjoying by an entrepreneurs while doing international trade with Bangladesh. Therefore, Bangladesh could be considered as one of the most attractive locations to relocate global business corporations to the EPZs and SEZs being developed by the government.

It is for sure that Bangladesh needs foreign investment to boost-up its economy but we must remember that there are some adverse effects of FDI too. For example, FDI in some sectors could have an adverse effect on local employment sector. For better understanding we could imagine a scenario where a large corporation establishes a highly sophisticated readymade garment factory here in Bangladesh, where most of the tasks are completed by robotic technologies instead of human labour. Its productivity is much higher than human labour and product cost is also lower. In such cases, local factories will lose its market share. After a certain period it could be seen that local factories are reducing their manpower to adjust with the situation. Large number of people loses their employment due to that large investment. Similarly extreme competition from an FDI company may be the cause of death to many local SMEs. Repatriation of a large FDI conglomerate could have an adverse effect on foreign currency reserve or balance of payment of a country. Therefore, we must consider all these possible adverse effects of FDI into the local economy and adopt legal framework to mitigate these threats.

Finally, we could state that, Bangladesh needs FDI to functionalise its upcoming SEZs and generate employment for the growing number of job seekers. But we must reserve few product and service sectors for the local entrepreneurs. Welcoming campaign for FDI has to be increased and equipped with enough precautionary measures. Adequate preparations, practical drive and a business friendly local business environment could encourage the investors to invest here in Bangladesh. We have everything to become a middle income country by 2027 if our government, political leaders, decision makers play respective role accordingly. Otherwise piecemeal investment drive will not give us complete output up to the expectation.

Challenges Before Newly Elected FBCCI Leaders

Challenges Before Newly Elected FBCCI Leaders

Md. Joynal Abdin

The Daily Sun on May 15, 2017

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) is the apex trade organisation of the country. It represents all the Chamber of Commerce and Sectoral Associations in home and abroad. In one sentence we could term it as the focal point of Bangladeshi Private Sector. The General Body (GB) of FBCCI includes representatives from all the district chambers, joint chambers, metropolitan chambers, trade/sectoral associations including the women chambers and associations. No doubt that FBCCI general body is the comprehensive and inclusive forum with proper representations from each of the sectors and sub-sectors of Bangladeshi entrepreneurs. They are the key players of the economy. They are contributing directly in GDP growth, employment generation, export earnings and finally in the poverty alleviation of the country.

The general body of the Federation used to elect the Board of Directors through nomination or direct election. As part of their regular activities the GB of FBCCI elected its leadership for next two years (2017-2019) on 14 May (Sunday). We are waiting to welcome a group of dynamic, forward looking, knowledgeable and effective leaders to lead the federation for next two years. Current election of FBCCI has a significant difference than that of the previous elections. Current transformation trend of the economy (from agriculture dependent economy into industrialized economy), remarkable amount of foreign currency reserve, significant amount of idle money in the banking system, rising number of idle higher educated youth, achievement of our national economic visions, local and foreign investment trend, single product dependency in the export earnings, upcoming national election, concurrent change in the international economic ecology etc. made this election significantly different than that of the previous one. Therefore newly elected FBCCI leaders (Board of Directors) will face a series of built-in challenges in-front of them. The newly elected Board of the federation could consider the following issues in their action plan:

  1. Amicable Settlement with the New VAT and Other Business Related Laws: The government of Bangladesh is planning to implement new VAT law from July 2017. It is one of the widely discussed issues that the new VAT law (Draft) has few inconvenient points for the business community. There are scarcities of in-depth research findings with the issues. Therefore the upcoming leaders could take necessary initiative to measure the inconveniences through methodical research. Foreign best practices could be identified and select a best practice to be replicated here in Bangladesh in this regard. Both the parties the government and the private sector have to be cooperative to reach into an amicable settlement with this new VAT law. The newly elected Board of FBCCI have to consider the issue as first priority to safeguard stakes of the micro, small, medium and new entrepreneurs here in the new VAT law as well as other upcoming business related laws.
  1. Finding out a Way Forward to Utilise the Idle Money of Banking System: We have mentionable amount in the foreign currency reserve along with a significant amount of unutilised funds in the banking system. This unutilised fund has to be invested into productive sector for boosting up the investment wheel. We have unutilised funds but the rate of interest is comparatively higher than that of the competitor countries. So a way forward has to be identified to utilise this idle fund and moving the investment wheel.
  1. Initiative has to be taken to Diversify Product Basket: Bangladesh is the top denim exporter of the world. It is one of the key players in knitwear and readymade garment (RMG) export. What is next? We have potentials in leather goods sector, agro-processing sector, plastic sector, light engineering sector etc. But none of the sectors are coming up with a movement like RMG. Why newer sectors are not becoming export leader or near about RMG? This is because we have limitations in terms of new product designing and development. At the same time we have limitation to maintain international standard of existing products. Therefore new FBCCI leaders could take the issue seriously and establish few product research, design and development centers for potential sectors. They could claim funding from the development partners in this regard.

The government of Bangladesh announced 2017 as Leather Goods Year. But in absence of significant development initiatives (projects and policies) this announcement may not be worthwhile. The newly elected business leaders could take this issue to make the Prime Minister’s announcement meaningful.

  1. Internationalization of Bangladeshi Brands: Bangladesh is still lagging behind to establish an international brand. Walton has started this journey in a limited scale. I think all the major exporters of the country have this ability to establish own outlets abroad and establish Bangladeshi brand image with the world class products. The upcoming business leaders could negotiate with the government to allow outwards investment with few precautionary measures.
  1. Creating and Maintaining a Congenial Trade Regime with the Major & Potential Export Markets: Brexit, US presidential views with NAFTA and sloth movement of implementing WTO agreements etc. issues are giving us a signal of tomorrow’s global trade regimes. Bilateral trade arrangements are becoming faster and fruitful means of international trade regime. Till now we do not have a single effective bilateral trade, service or investment agreement with any global players or our major trade partners. Therefor the new FBCCI leaders could think of the issue seriously and insist the government to sign bilateral trade agreements with our major and potential export destinations to create and maintain a congenial trade regime with them. Otherwise we could be isolated in the international market after a certain period.
  1. Private Sector’s Capacity Building to Achieve SDGs: We are committed to attain the sustainable development goals (SDGs) by 2030. Government is enacting necessary policies and laws to facilitate the SDG achievement. But main game has to be played by the private sector. Almost all the sub-sectors of Bangladeshi private sector have limitation in terms of skills, knowledge and know-how. Fiscal and technical limitations are toughing the goals near about impossible. Therefore the private sector leaders like FBCCI Board has to be proactive to play due role in capacity building of the private sector as per requirement of concerned sectors.
  1. Special Attention has to be given to Employment Generation: Idle brain is a devil’s heaven. Idle young force is the engine of social unrest. Bangladesh has 3 million plus unemployed young forces at this time, another 2.2 million jobseekers are entering into the job market every year. Low or primary educated youth are going abroad as worker but a significant number of (not less than 1 million) higher educated middle class youth are remaining idle. This huge number of non-productive young people could be harmful for the family, society as well as the country. This problem could be more visible as an uncontrollable challenge in near future. Therefore it is the right time to think with the employment generation, facilitating self-employment opportunities like freelancing, entrepreneurship etc. Government alone could not be successful if adequate support is not available from the private sector.

From the above discussion it is clear that the new leadership of the Bangladesh private sector i.e. the Board of Directors of the FBCCI has significant role in employment generation, capacity building of the private sector, fostering the investment movement, creating and maintaining congenial trade regime in home and abroad. Therefore the GB members of FBCCI could think a while to elect learned, capable, farsighted, proactive and dynamic leaders to contribute in nation building movement toward a sustainable economic development of Bangladesh.

Development and Promotion of Entrepreneurship Education

Development and Promotion of Entrepreneurship Education

Md. Joynal Abdin

The Daily Sun on May 06, 2017

Entrepreneurs are considered as the most important segment of the society to generate employment opportunity, increasing GDP growth, fostering economic development around the world. Therefore, entrepreneurship development is one of the priority activities of all development initiatives. Once it was assumed that the entrepreneurship is a by-born quality to identify profitable ideas, organise factors of production, take risks to be failure so on and so forth. But through a long debate during last century scientists have succeeded to prove it that, entrepreneurship is not only a by-born quality but it could be created through proper education, training and other pro-entrepreneurial supports along with a congenial environment. Entrepreneurship creation could require hundreds of supports but the most important part of it is entrepreneurship education.

Entrepreneurship education includes both academic knowledge and practical skills to prepare young people to be job provider instead of searching for a job in the market. It provides knowledge, skills and motivation to encourage student’s young mind to become an entrepreneur. Fostering entrepreneurship attitudes and skills in secondary schools raises awareness of career opportunities, as well as of ways young people can contribute to the development and prosperity of the nation. It helps to reduce unemployment and number of jobseekers one of the major problems around the world. Entrepreneurship could be one of the mandatory subjects in all levels of education with a major specialised faculty in the undergraduate or graduate levels. Specialised curriculum as well as specialised institute/university could be established to produce entrepreneurs in Bangladesh. Neighbouring India identified this issue as one of the key requirement for industrial advancement and established the Entrepreneurship Development Institute of India in 1983 at Ahmadabad, Gujarat. EDI is a successful model replicated in most of the Indian states and around 25 countries globally. It is producing entrepreneurs the job providers since its inception.   Our government or even the private sector could replicate the model here in Bangladesh very easily and I know that EDI authorities as very helpful in this regard.

Entrepreneurship education is essential not only to shape up the mind-sets of young people but also to provide the skills, knowledge and attitudes that are central to develop an entrepreneurial culture. Entrepreneurs play the role of catalyst to achieve economic and social development, GDP growth, promoting innovation, fostering employment generation and equity development. Entrepreneurship education is similar but not the same curriculum of business education. It requires motivation, inspiration, creation of risk taking tendency, coordination, networking, competition, business secrecy, trend analysis so on and so forth along with the business courses like management, marketing, finance, accounting etc. Entrepreneurship education includes basic scientific, ICT, innovation topics too along with hands on skill development and efficiency enhancement. It could be divided into two major heads namely entrepreneurship education and entrepreneurship training.

Entrepreneurship education could be started with one or more compulsory courses from the secondary level up to the higher secondary certificates. Specialised entrepreneurship development courses could be introduced at undergraduate and graduate level under a separate faculty than that of the existing business schools. Specialised residential institutes/universities could give more output in terms of entrepreneurship development education. On the other hand entrepreneurship training could be a specialised type of practical training including apprenticeship in relevant factories started from secondary vocational level to the diploma or higher diploma/post graduate diploma levels. But for both the types of entrepreneurship study separate international standard curriculum has to be developed first. Then a sufficient number of teachers and trainers have to be developed through international standard ToTs at home or abroad. They should be selected based on open competition and previous result analysis. They have to be offered special package of benefits to ensure retention up to a certain period of time.

Producing entrepreneurship graduate is not sufficient for entrepreneurship development. An enabling environment has to be created and maintained through harmonisation of existing policies and enacting new policies of the government. Startup friendly business environment is absent in Bangladesh till today. No bank is offering loan to a startup, no tender is allowing taking part without a certain years of experience, and no government service is providing soft condition to an initiating enterprise here in Bangladesh. Probably first 1,000 days of a newly established enterprise are the toughest period of an entrepreneur here in Bangladesh. Initial business support services are absent here. Initial registrations and licenses are provided by a long lists of organisations under different ministries of the government without interlink or inter-coordination. Therefore starting a new business is the toughest job here in Bangladesh. So this starting point has to be made easy and smooth.

Initial investment, incubatory services, registrations, licenses, business networking, support services, intermediary services, and startup environment should get priority of the government policies to make the entrance easy, smooth and hassle free for a new/young entrepreneur. Otherwise next generation will not be interested to come into business in home condition rather they will migrate to abroad and brain drainage movement will get another momentum. Secondly all the government agencies like police, environment, factory, boiler, tax and customs authority, BSTI, and the local administration has to be motivated to change their mindset of existing administrative tendency into a service prodder tendency. Because nobody will go to buy harassments by investing his/her own money and brain here in Bangladesh and become an entrepreneur. Government and the private sector especially the trade organizations has to be working closely to identify existing anomalies of becoming new entrepreneurs and mitigate those factors to create a pro-investment friendly environment here in Bangladesh.

A congenial business environment will not only create local entrepreneurs but also attract foreign investment to the economy. With and united effort of both the channels of investment industrialisation of Bangladesh will be ensured and a sustainable economic development will be in place. Therefore it is the right time to look into the entrepreneurship education system seriously and create an entrepreneurship friendly business environment here in Bangladesh. Both the government and private sector joint effort could lead the initiative into a success.

Absence of Functional Research Facilities in Bangladeshi Trade-bodies

Absence of Functional Research Facilities in Bangladeshi Trade-bodies

Md. Joynal Abdin

The Daily Sun on May 3, 2017

Bangladesh is considered as one of the potential emerging economic powers around the world. It has a very significant number of achievements in terms of fulfilling MDGs, increase per capita income, GDP growth, and export earnings.

It is one of the N-11, Frontier-5 countries. Bangladesh entered the level of lower middle income country and hopes to progress further. Bangladeshi scientists, innovators and researchers have proved their world class capacity and merits. As a result we are getting name of many Bangladeshi scholars in various prestigious global lists. But till now we hardly have a signboard of Bangladeshi companies out of our territory. Easiest answer of this absence could be that, it is prohibited for Bangladeshi nationals to carry beyond a certain amount of money abroad. Absence of capable entrepreneur could be another cause of it.

Government effort to develop capable entrepreneurs in Bangladesh is very insignificant. We have 122,176 primary schools, 20,297 high schools, 4,113 colleges, 9,319 madrashas, 5,790 technical schools and polytechnic institute and 132 universities in Bangladesh but we do not have a single specialised entrepreneurship development institute. We are producing doctors, engineers, managers, technologists and other professional job seekers through our education system here in Bangladesh. But we are not producing the job provider entrepreneurs through our existing academic curriculum. Globally it is proved that, entrepreneur could be created through proper education, training, mentoring in a congenial policy environment.

There are many challenges/barriers to operate a business enterprise beyond individual capacity. Therefore entrepreneurs became united under a single platform like chamber of commerce or sector specific associations around the world. Similarly Bangladeshi entrepreneurs/businessmen are united under two types of trade bodies namely the chamber of commerce and sectoral associations. There are four different types of chamber of commerce in Bangladesh.

These are district chambers, metropolitan city based chambers, joint chambers and international chamber of commerce. According to a recent list of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) there are 101 chambers of commerce and 379 associations in Bangladesh. The objective of all the trade bodies is capacity building of Bangladeshi private sector from respective fields and negotiating unitedly with the government to create and maintain a congenial business environment in home and abroad. Research based information has no alternative to carry forward this function of the trade-bodies successfully.

Bangladeshi trade bodies including the federation chamber have limitations in terms of research facilities. An effective and functional research centre is absent in all the chambers of commerce including the big players like FBCCI, DCCI and MCCI etc. Scenario is more inferior in the associations including the largest associations like BGMEA, BKMEA etc. Business leaders are providing special commitments for developing the research department of respective trade-bodies before each election during last decade. Another new election of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) is heading toward us in the next month. Hope all of the panels will give emphasis on research and development duly in respective election manifesto. But unfortunately research facilities in the trade bodies are not getting momentum. Let’s think a while why research facilities/capacity of research departments of the trade bodies is not reaching up to the standard of our expectations? The followings could be considered as the major causes of current inferior performance of the research departments in Bangladeshi trade-bodies:

Multiple expectations of the management from the research wing: Job responsibility of the research wing is not clearly defined in the trade bodies. As a result management has multiple expectations from the research team. For example an informative letter has to be written, president or vice president has a program then its requires a written speech, a sector studies has to be conducted, a position paper has to be prepared, trade statistics is required, seminar has to be organised, meeting minutes has to be written, project proposal has to be prepared etc. a long list of expectations to research wing. But writing letter could be completed by the administration or respective department, writing speech could be completed by the PR section, writing project proposal is a specialised job of project consultant etc. are similar tasks but having great distinctions than that of the functions of a professional research team. Thus a good research team could be ineffective if it would like to serve every expectations of the management.

Absence of yearly action plan and budgetary allocation: Most of the major trade bodies of Bangladesh have a research department. But it does not have annual action plan with required budgetary allocation. As a result research executives of the trade bodies became day labourer toward ad hock instructions of the higher authority. Therefore, no publishable research is conducting by them and no output is visible after a certain period.

Writing speeches and other ad hock write ups on an emergency basis: Research department of the trade bodies has to write down speeches for the respective presidents and vice presidents on an emergency basis/within short notice. Writing an informative speech requires time, but short notice decreases its quality. On the other hand giving message of the organization is purely a function of public relations (PR) section. So, PR and Research department has an overlapping position regarding writing speeches. Ad hock write ups like letter, meeting minutes etc. destroyed valuable time of a good research team.

Absence of qualified research team: Conducting research is a team work. It requires cross faculty specialized knowledge of economist, statisticians, MIS and business graduates along with sector specific expertise. But most of the research departments of the trade bodies do not have enough manpower to provide respective faculty inputs in a research team. As a result designing and conducting a quality research is not possible by the fractional team.

Absence of skill development initiatives: Conducting a good research requires a number of technical skills which is not available in all faculty of master level education. Therefore special tailor-made training skills are required to design and conduct a good research. You will hardly find a trade body who is investing money to build capacity of the research team by training them up in home and abroad. As a result research departments are not becoming skilled and proficient in respective tasks.

Absence of competitive package of benefits to retain competitive talents: Most of the trade bodies are paying non-competitive benefit to the executives.

Generally research related professionals are more knowledgeable than that of the others. As a result they have more opportunities than that of the others and switched over into a competitive career option and trade-bodies losses these talented people due to lower benefits packages.

Absence of job security and clear career path in the trade bodies: There is a vulnerability as well as ambiguity regarding the career options of a professional in the trade bodies. As a result these are not lucrative positions at all to the talented university graduates. Therefore, deserving graduates are not willing to apply for a position in a trade body.

From the above discussion it is clear enough that, Bangladeshi trade bodies are yet to determine the job responsibilities of respective research department to make them effective and efficient. Following steps could be considered for establishing a strong research cell in a chamber of commerce or sector specific association:

Determine specific objective of the research wing: Management of a chamber of commerce must determine their expectations from the team. Separate team could be formed for separate actions for example a small team could be specialised in speech, letter, meeting minutes etc. writing jobs. Separate team for designing and conducting professional research on specific issues. Similarly another specialised consultant group is required for project relevant tasks. All these activities are similar but needs different types of skills and mentalities. So a trade body must determine specific objective of its research team or form separate team for separate actions.

Prepare an annual action plan with required budgetary allocation and time frame: The chamber authority has to prepare a specific plan of actions with required budgetary allocation to conduct a specific number of researches on predetermined topics in a year. Ad hock assignment diversified focus of the team and make them weak performer.

Team formation and required capacity building: Conducting Research is a team work. It requires cross faculty knowledge including economist, business graduates, statisticians, development studies and MIS professionals. Therefore, forming a balance team is essential for well performance of a research team. Conducting research in practical fields requires few university plus skills. Therefore even the most scholar university team has to be trained up on specific research relevant skills for ensuring same page thinking of the team. Training has no alternative to make the team well performing.

Competitive package and clear career options: Competitive package is required to retain competitive merits. Job satisfaction, job security and clear career path is required to form and retain a functional and effective research team in a trade body.

Finally; we could state that it is the right time to establish a strong research team at every trade body of Bangladesh. Otherwise capacity building of Bangladeshi private sector will be hampered for another decade until we do so. In many countries chamber of commerce is fully financed by the respective governments. As a result they have skilled professionals in trade bodies. Even the neighbouring Indian trade bodies are well equipped with functional research team. Similarly the private sector of Bangladesh could claim government budgetary allotment for the chamber of commerce. The Federation of Indian Chambers of Commerce and Industry (FICCI) counterpart of the FBCCI has a long list higher educated research team with more professionals than that of the total manpower of FBCCI. A functional research team is much more essential today for capacity building of Bangladeshi Private Sector to negotiate with our global partners and enter into international market with our products either in the form of export or internationalisation of our own brands through outward FDI.