Inconsistent Policies and Regulations Hinder Export Diversification in Bangladesh
Experts have highlighted that inconsistent policies and regulations in Bangladesh create uncertainty for exporters, making it difficult for them to plan and invest for the long term. This stands as a major obstacle to export diversification in the country.
The Need for a Broad-Based Export Policy
Selim Raihan, the executive director of the South Asian Network on Economic Modeling (Sanem), emphasized the necessity of a comprehensive export policy that addresses all bottlenecks and high tariff issues. Such a policy would pave the way for export diversification in Bangladesh.
Import Tariff Line and Exchange Rates
Raihan pointed out that the overall import tariff line in Bangladesh is 40 percent, which is significantly higher than that of India, Malaysia, and Vietnam. Additionally, volatile and artificially maintained exchange rates have created obstacles for export diversification in recent years.
Comparing Bangladesh and Vietnam
Syed Akhtar Mahmood, a former lead private sector specialist at the World Bank Group, highlighted the diverging paths of Bangladesh and Vietnam. He noted that in 1995, both countries had similar economies and export volumes, with Bangladesh even being ahead in some cases. However, over the past 30 years, Vietnam has made significant progress while Bangladesh has remained stagnant.
Mahmood attributed Vietnam’s success to its favorable policies and support for foreign direct investments (FDIs). In contrast, he blamed a lack of necessary policy reforms for Bangladesh’s failure to attract expected levels of FDIs.
The Potential of Non-Garment Sectors
Syed Nasim Manzur, managing director of Apex Footwear Limited, emphasized that sectors such as leather and agriculture have the potential to increase export volumes, similar to the ready-made garments sector. However, they require equal facilities and importance from the government.
Manzur highlighted the importance of supply chain management, innovative ideas, and proper implementation to increase product diversification for the export market. He emphasized that policy reforms are crucial for this to happen.
Barriers and Protectionist Measures
Zaidi Sattar, chairman of the Policy Research Institute, criticized the anti-export policy and high tariffs on the import of raw materials, which hinder the export sector from reaching its true potential. He noted that there are approximately 1,500 non-garment products in Bangladesh that have immense potential but are not receiving the same facilities as the garment sector.
Sattar highlighted the government’s interest in diversifying exports but emphasized the lack of specific policy support in this regard.
Trade Barriers and the Role of the Government
Zahid Hussain, a former lead economist of the World Bank’s Dhaka Office, chaired the session and discussed the various trade barriers and protectionist measures faced by exporters in international markets. These barriers limit their access to new markets and increase the cost of doing business.
Hussain emphasized that export diversification is crucial for poverty reduction and employment generation. He called on the government to play a proactive role in facilitating this diversification.
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 percent gross domestic product growth per annum in the least developed countries | Indicator not mentioned in the article |
| SDG 9: Industry, Innovation, and Infrastructure | Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product, in line with national circumstances, and double its share in least developed countries | Indicator not mentioned in the article |
| SDG 17: Partnerships for the Goals | Target 17.10: Promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system under the World Trade Organization, including through the conclusion of negotiations under its Doha Development Agenda | Indicator not mentioned in the article |
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 8: Decent Work and Economic Growth
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 17: Partnerships for the Goals
The issues highlighted in the article are related to export diversification and the challenges faced by exporters in Bangladesh. These issues are connected to SDG 8, which focuses on promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all. SDG 9, which aims to build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation, is also relevant as it addresses the need for diversifying industries and promoting sustainable industrialization. Additionally, SDG 17, which emphasizes the importance of partnerships for achieving the goals, is relevant as it highlights the need for collaboration and cooperation in addressing the challenges faced by exporters.
2. What specific targets under those SDGs can be identified based on the article’s content?
- Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 percent gross domestic product growth per annum in the least developed countries
- Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product, in line with national circumstances, and double its share in least developed countries
- Target 17.10: Promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system under the World Trade Organization, including through the conclusion of negotiations under its Doha Development Agenda
The article highlights the need for sustained economic growth and the promotion of inclusive and sustainable industrialization. Therefore, Target 8.1 of SDG 8 is relevant as it focuses on sustaining economic growth and achieving a certain level of gross domestic product growth. Target 9.2 of SDG 9 is also relevant as it emphasizes the need to raise industry’s share of employment and gross domestic product, which aligns with the goal of export diversification and promoting sustainable industrialization. Additionally, Target 17.10 of SDG 17 is relevant as it calls for the promotion of a universal, rules-based, open, non-discriminatory, and equitable multilateral trading system, which can support export diversification and address trade barriers.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
No indicators are mentioned or implied in the article that can be used to measure progress towards the identified targets. The article primarily discusses the challenges and issues related to export diversification in Bangladesh without providing specific data or indicators to measure progress.
4. SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 percent gross domestic product growth per annum in the least developed countries | Indicator not mentioned in the article |
| SDG 9: Industry, Innovation, and Infrastructure | Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product, in line with national circumstances, and double its share in least developed countries | Indicator not mentioned in the article |
| SDG 17: Partnerships for the Goals | Target 17.10: Promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system under the World Trade Organization, including through the conclusion of negotiations under its Doha Development Agenda | Indicator not mentioned in the article |
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Source: thedailystar.net
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