View Full Version : Industrially under-development and poor economy in Bangladesh. Reasons?

December 19, 2007, 12:24 PM
First let me tell one thing. I am not an economist. Even don't have any sort of practice in economic analysis. All I know formally about economics is from a 3 credit hour course in university while doing the under-graduate courses. As a normal citizen of Bangladesh (Aam jonotar ek jon hishabe arki), this is very much painful to me looking at the poverty and economic undergrowth. The following questions keep coming in my head over and over again.

1. Why does our industrial sector is so much under-developed?
2. Why do we fail to attract investment in our country?

We,all know some common answers to these questions. Wrong policy of government, lack of one stop service etc etc. Is that all? Don't the businessmen share the guilt?

Most of the liabilities for industrial non-development goes to govenment as free market economy doesn't mean opening the market to all without giving protection to local industries. No foreign investment won't be possible without protecting local market. But all of our previous finance minister failed to understand the issue or acted like that. Our current finance advisor is following his predecessors.

Over last 5 years, atleast 2,000-3,000 new buses have been introduced in the roads of Dhaka for public trasport. While more than 20,000 CNG autorickshaws started their journey on the roads of Dhaka. The most painful part is almost 100% of them are imported while it was very easy to build a motor manufacturing company to meet the needs. Navana, Nitol Niloy etc groups all went to earn fast money by importing the vehicles. It was very much possible if some of those companies tried to seek foreign collaboration for technology exchange. But none of them really did it.

A strange trend started in our country quite some years back and still prevailing there. Taking dealership of world famous consumer companies and getting rich. We failed to establish any kind of brands of Bangladesh's own with a few exception in garment sector. Interestingly none of our businessmen want to establish a big group of company which would be a brand of its own. But the question is why?

Care to share thoughts?

Special 1
December 19, 2007, 12:52 PM
yes, first thing is that you do not understand the concept of comparative advantage.
Look it up on wiki and a lot of the things you are wondering about willl make sense.

If you are still having trouble answering a few questions u are wondering about. Ask these questions. Why does india import garments from Bangladesh, France import planes from the US and the US import electronics from Japan. I am sure all of these countries are capable of making these things at home, but they dont.

the problem for bangladesh is not going to be its industrial sector, but our reliance on foreign countries for food. Taht should be the first priority of the government. We need to be self sufficient in food production before anything given the increase in oil prices.
TO understand why other countries do not want to invest in Bangaldesh, check out CPDs GCR report 2007. www.cpd-bangladesh.org (http://www.cpd-bangladesh.org)

December 19, 2007, 02:25 PM
Thanks. On investment issues the report is great I guess. But poor industrialization has more scope to discuss as i feel.

December 19, 2007, 02:51 PM
Doesn't matter if others have competitive advantage on some industries above us. Few things we must make sure if we want to get out feet wet in the industrial market.

1) Power: Electricity.
2) Infra structure: roads and highways or even train communications from place A to place B. Place A is where the industries are and place B are the ports where others would have access to.
3) Telecommunication: uninterrupted fast internet.
4) Training for the work force.
5) Ban Hartal. Ban politics in educational sectors.
6) clamp on corruption (on Amla not only on businessmen or politicians).
7) Implementation of plans that would minimize damages from natural calamities like flood. (Dredging, making canals, ponds for storing pure water, plantation)
8) Check population growth.
9) Make room/environment for expats.
Foreign investment will follow.

December 19, 2007, 03:15 PM
add to T_E's list:
- Political stability with a Democratic Elected Govt. ( foreign investment will not follow for a army backed CTG IMO)

December 19, 2007, 09:49 PM
To add with T_E bhai:
- Placing proper people on proper places.For example, You cannot place some x-army person as chairman of BTRC or communication ministry. Specfialized positions require specialized persons.