Bangladesh is one of the most densely populated countries in the world. Nearly 80 percent of the people live in the rural areas and the majority of the rural people remain unemployed for and under employment some months of the year. More than half of the rural people are landless or nearly so and another 25 percent find it difficult to ensure subsistence from their cultivable land and need to seek supplementary sources of income. About three-fourths of the rural households are dependent totally or partially on the market economy, for their livelihood.
In the sixties, the percentage of the poor was around 25. During the last three decades, it has jumped to over 60%. A recent BIDS study shows the condition of the absolute poor in the country, by and large, has remain static. Poverty is the condition that is said to exist when people lack the means to satisfy their needs.
To determine the elements of the basic needs, the same can be defined narrowly as “those necessary for survival” & broadly as “those reflecting the prevailing standards of living in the communities”. The first criterion would cover those near the border line of starvation, the second would the people whose nutrition, housing & clothing, though sufficient to maintain life, do not measure up to those of the population as a whole. Poverty is associated with poor health, low level of education, inability or unwillingness to participate in society. Whatever definition one uses, authorities & laymen equally agree that the effects of poverty are harmful to individuals & to the society.
Poverty may be classified as:
Cyclical Poverty
Collective Poverty
Case Poverty
Land is the main productive asset in rural areas; it represents both economic and social status. According to the agricultural census 1983/1984, about 56.5 percent of the rural households are effectively landless with 8.7 percent owning neither homesteads or cultivable land, 19.6 percent having homesteads but no cultivable land and 28.2 percent owning homestead and upto 0.2 ha of land. Landlessness is increasing rapidly as a result of population growth, river erosion and various other social and economic factors.
In the backdrop of the prevailing rural scenario, the prime needs for rural development in Bangladesh are productive employment and income generating programs in both farm and non-farm sectors along with the development of agriculture and basic infrastructure in the rural areas. The primary vehicles for the promotion of such rural development will be local level institutions within the principle of participatory development as far as possible.
Bangladeshi Farmer
ROLE OF BUSINESS COMMUNITY IN POVERTY REDUCTION
Agriculture remains the largest sector of the economy occupying three-fifth of the employed labor force and producing nearly half of the economy’s output. The role of Business Community is vital in expansion of almost all the above-mentioned sectors in any country or society. The business community can bring out technical revolution, new and modern techniques can increase productivity by reducing cost and getting more output or performance.
Poverty is a multi-dimensional phenomenon whose dimension is by no means reducible to any single indicator. Poverty alleviation calls for multi-dimensional approach, such as nutrition, health and sanitation, housing, education, personal security etc. For poverty reduction, macro-economic policies for development and technological development strategies have to be appropriate for our socio-economic background, general level of technical skill, and our goals of developing rural Bangladesh. Businessmen, as a prime profession, who are relentlessly making contribution towards national growth and creation of new resources, seek for their legitimate role in poverty reduction efforts. This role lies in the linkage between the approach, strategy and program for poverty reduction and the scope of professionals and businessmen.
By their very position with respect to production process and relations, the businessmen contribute directly to economic growth. Nevertheless, through continuous R & D activities, we business counterparts have to play an indispensable role within the framework of formulation of strategies for technological development for poverty reduction as well as converting the principles of science, acquired knowledge and experience to develop local technology. All the above activities that contribute to poverty reduction dependent on investments of business entrepreneurs. Thus, businessmen can play a major role in poverty reduction of the country through promotion of small and medium sized industries, which can directly create employment opportunities as well as help poverty reduction by contribution to the growth of the economy.
GOVERNMENT OBJECTIVES AND STRATEGY FOR RURAL DEVELOPMENT
Poverty is the most pressing problem in the rural areas of Bangladesh. A rural development plan must continue to effectively address the poverty problem. For this, the plan has to pursue an employment-led growth policy. The focus of the policy would be to promote greater opportunities for the rural poor for productive employment in both farm and non-farm sectors of the economy.
Appropriate strategies and effective policies for rural development are needed for the realization of the objectives. For the development of rural economy, the Government formulated the strategy of Rural Development Projects on addressing the following:
Development of physical infrastructure including roads and markets.
Irrigated agriculture, drainage and minor flood control works.
Production and Employment Program (PEP)
Keeping alleviation of rural poverty as the end in view, the objectives of the Rural Development Institution (RDI) sector under FFYP are to:
Reduce rural poverty by means of increasing gainful employment and income opportunities on a sustained basis through expansion of the productive sectors;
Develop rural institutions;
Improve technology and skills for productive activities and ensure better access for the rural poor to the means of production;
Facilitate agricultural development through institutional support and expansion of irrigation;
Improve basic physical infrastructure (Roads, markets) in the rural areas;
Promote participation of women in rural development
For rapid poverty reduction, the Government’s priority is to develop the rural areas where most of the poor people live. This requires accelerated growth of agriculture and the rural non farm sector. A rapid agricultural growth will sustain high growth with better capacity to reduce poverty through enhancing rural wages, creating synergies for diversifying the rural economy, and enabling the supply of low-cost food to improve nutritional status and food security of the people.
Encouraging agricultural growth requires various policies ranging from new technology to credit for small farmers. The past growth in agriculture was helped by new high yielding variety (HYV) technology, particularly in rice, in which both the state and the market played important roles. The Government would continue its pro-active role in key public goods in agriculture particularly in improving the ability of the farmers to adopt new technology and providing appropriate mix of incentives to pursue profitable operations.
The recent growth of agriculture was greatly influenced by macroeconomic and sector specific policy changes. Reforms in trade and exchange reate policies created favourable incentive structures and dismantling of state interventions, market-oriented reforms and reduced regulations favoured growth in agricultural production and productivity. The reforms led to faster growth in minor irrigation, increased the supply of fertilizer and seeds, helped in wider adoption of high yielding varieties (HYVs), and encluraged the farmers to go for more rational input use and production decisions. The Government’s priority would be to intensify efforts such that positive achievements are expanded and the constraints limiting their potential are resolved.
Rural Bangladesh
PROPOSED STRATEGY FOR IMPLEMENTATION OF RURAL INFRAST-TRUCTURE DEVELOPMENT ACTIVITIES AND ROLE OF BUSINESS COMMUNITY
In the process of construction and maintenance activities of rural infrastructures, the following strategies may be followed by the engineers and business community:
Directly involve the landless groups / people in construction and maintenance of rural infrastructure in the form of Labour Contracting Society (LCS) which has already been experimented in various RD projects.
Ensure that landless groups of poor men and women get maximum employment opportunity under the contractors and they are paid fair wage.
Ensure wider participation of rural infrastructure and keep certain activities reserved for the destitute women.
Impart skill development training to the rural poor involved with construction and maintenance of rural infrastructure for further development of their competence.
PARTICIPATORY MODEL: EMPOWERING THE POOR
Participatory development model calls for empowering the poor, to recognize their inalienable right to decide their own destiny and their access to education, health, sanitation, housing, employment and credit facilities. To ensure these rights there should be structured or institutionalized arrangement at the grass root level. These necessitate building and strengthening of local bodies like counties, municipalities, union etc. with elected representatives in all tiers. Development cannot be thrust from above. Development must originate from those for which it is essentially meant. This means that there should be first of all firm political commitment for poverty alleviation. Politics and development are inter-related. Politics of development and production is the main pillar for building effective bridges with the masses. Proper political and social atmosphere is the sine qua non for development. This will generate mass awareness for development at the lowest level and will thereby ensure social justice.
The participatory development model presupposes the working people as the main component of all development activities. Under this model, human being is not the problem, rather they are the keys to problem solution. Sustainable and meaning full development only takes place through the optimum utilization of human creativity and productivity. The Peoples Republic of China achieved tremendous progress by following this model. Mexico, under President Salinas, was also deriving rich dividends in the same way. In an interview with Readers Digest (August 1992 issue) President Salinas explained the inherent philosophy of his solidarity program which aims at alleviating poverty. He said- “Trust the people. In the past we relied on the central government to determine what the poorest people needed. Now we have reversed this process. No longer will official in Mexico City decide the needs of the people in the rural areas. Local, democratically elected committee, how to use some of the proceeds of the privatization and savings from debt re-negotiation to have running water and electricity, to builds schools and clinics and to pave roads. All of these decisions that people, not bureaucrats are taking today.
In Bangladesh, where we will be able to empower and trust the people and not depend on the bureaucrats in the capital city, a breakthrough can definitely be achieved in the prevailing poverty situation i.e., our development initiative should be target-oriented. The Bangladesh Economics Association in its 10th Biennial Conference has, therefor, called for national consensus by effectively involving the government, the opposition, industrialists, businessmen, volunteers (NGOs), the peasants and the workers. The Association was of the opinion that national participation in the country’s development process was minimal. It was some sort of a dictate from the bureaucracy-oriented government as per the prescription of donor countries and agencies. Poverty alleviation will continue to remain elusive if this process persists. Union councils, Thana councils and Zila councils should be so constituted with people’s representatives that they are able to function as independent decision-making agencies without bothering for dilatory approval. When this can be done, projects will no longer remain unimplemented.
POLICY FOR POVERTY REDUCTION
To remove poverty the following policy outlines needed to be implemented on top priority basis and without any further delay: –
Re introduction of farm subsidies to the extent of at least 50% of the value of the products.
Strong price support as in Thailand.
Refixation of the prices of agricultural inputs and ensuring their easy and cheap availability to the farmers.
Mechanization and modernization of agriculture through intensive research and extension programs for increasing yields.
Setting up of agro-industries like food and fruit processing plants, Agro- machinery factories, extension of irrigation facilities, rural electrification etc.
Change of cropping pattern, switching over to more profitable produce like vegetables, fruits, livestock, poultry, fisheries etc.
Development of basic infrastructure likes road highways and transport.
Skill development among farmers through education, healthcare, family planning, training and easy access to information through radio, TV, cinema, telephone etc. as in South East Asian countries Japan and South Korea.
Setting up of raw materials related industries in the rural areas, which will galvanize rural economy.
Formation of rural co-operatives, restructuring and reorganizing credit facilities and arranging better marketing of agricultural produce.
Forming agri-food consortia with the SAARC countries to gain comparative advantage and better bargaining clout in the international market.
The measure noted above fall within the category of targeted development. Since most of the poor live in the rural area. Unless agriculture is developed their condition will not improve.
Tea Garden in Bangladesh
APPROACHES TO POVERTY REDUCTION: The poverty reduction program includes:
Poverty reduction through enforcing higher investment in social sector.
Poverty reduction through fostering an accelerated sustainable growth process.
Poverty reduction through promoting targeted income and employment generating programs designed for the vulnerable segment of rural poor.
The Engineers are the key element for the timely execution of all development programs of physical infra- structure, setting up of new industries of small & medium scale, ensuring protection against natural diseases etc. But for the context of poverty alleviation, 40% of the rural & urban families should be the target of all national & local poverty alleviation efforts. Poverty alleviation programs must be based on the smallest social units in rural areas i.e., Communities, Upo- Zilas, Unions & Paras.
Small-scale rural food industries such as Bakeries can employ 10-15 woman of the village; lozenge/toffee-making unit may employ 20 workers. Private fish-tank can be developed, and a few poor persons can be benefited from fishing. The government “beel-area” borrow-pit may be developed into large/small fish tank. The landless population may be given the opportunity to get good and regular income from fishing, Duck rearing,
Growing banana trees, pineapple and vegetable on the banks of the tank. A large number of poor families may use the unused land near the house from ½ decimal to 1 decimal size can grow vegetables 3-4 times a year. This may be a good source of earning. Intensive scheme for rearing cattle, cows, goats are to be undertaken for a protein source.
Productivity of the small land holding of the poor can be doubled or tripled through manual irrigation by “treadle pump” or hard pump ensuring multiple cropping, better inputs and technology; the technology for holding the high yielding variety of grain for long term storage is still unknown to our farmer. Small-scale storage bins & new technology for storage will help the poor to store their product till market prices are advantageous.
Business communities will work hand in hand with the Engineers in developing the following improvements, which will promote the rural areas & strengthen the local economy.
Mechanized crop drying and releasing/reclaiming the drying yard especially at the mill premises for production.
Improved and appropriate technology for seed production, storage, holding the fishing upto 24 hours of marketing, simple irrigation and harvesting tools (produced by BARRI) and so forth.
Use of solar energy and other non-conventional energy sources.
Country boat mechanization & improvement of the mechanized country boat.
Setting up of light engineering industry and strengthening the existing.
Rapid expansion of the cottage industry.
Development of small industries at the rural level.
Out of the above tasks the effective of improvement of country boat mechanization, light engineering industries and treadle pump is given below:
After mid 1980’s the situation in country boat sector changed dramatically. Mechanization has taken place on large scale with the help of imported low-cost diesel engine for irrigation almost in an indigenous fashion by the boatmen themselves without any assistance from outside. This change gives the boatmen increased financial benefit.
The gross income has almost doubled after mechanization. On the other hand, contrary to believe, there had not been any major unemployment as a result of mechanization. In fact, there has generated additional activities due to mechanization.
The engineering section of Bangladesh Small and Cottage industries Corporation with its engineering decision took some equal credit projects in Dhaka area in 1985 for the strengthening of the efficiency, productivity of these industries. There were some training components in the program also. Out of total credit amount of Tk. 50 million, Tk. 37.30 million given to 173 industrial units of Dholaikhali (Dhaka) area & Tk. 6.6 million to 55 industrial units of Zinjira (Suburb) area. The loan was given purchase of new machinery & as an operational capital.
The decision about which economic activities, can be undertaken will depend on the physical resources available in a local area, the ability of those implementing the poverty alleviation projects to mobilize local society for these activities, market for small industry products and the like. Always the local context must determine what activities are viable and are most economical to promote. Program taken they do not suit the local context.
Rural Bangladesh
Finally, we can state that, the Businessmen can play tremendous role in poverty reduction in situation that is characterized by the following factors:
-strong political will,
-adequate appreciation of engineers’ & business community’s role
-ensuring Engineers & business community of unfettered opportunity to contribute
-favorable policy framework
-necessary resources allocation
-strict accountability
We are striving earnestly to make FBCCI into a more dynamic, internationally counted, truly representative & powerful organization of the private sector. But the challenges are enormous. The country is currently undergoing an unstable situation. The social conditions are in a deplorable condition. Level of erosion of social capital & corruption in society are beyond belief. Infrastructure is inadequate. Over-centralization of power as well as absence of rule of law & of human rights have taken toll on transparency, accountability & obligation of responsibility. On the other hand, interdependence, interaction & interfacing of new technologies, globalization of culture & economics is posing unprecedented threat to our daily lives, our trade & commerce as well as our means of production.
To face the challenges & play its proper role, the private sector needs a conducive environment & a level playing field. But the reality is opposite. Taking advantage of political unrest, gross social in-discipline, anti-social activities & anarchic tendencies have assumed immense proportions. Dishonest people are questioning honest people, corrupt people are putting the righteous & the dedicated people on the dock. Plunderers of national wealth are undermining those who are involved in creating wealth for the nation. Ignorant & uneducated people are throwing the gauntlet at knowledgeable & qualified society.
If this situation continues, then the philosophical fundamentals constituting the Republic will become defunct & the country may become unfit to govern.
Nevertheless, FBCCI as the vanguard of the private sector & the apex body of business organizations will continue to do its utmost, along with other civil society organizations to remove all obstacles standing in the way of economic growth & productivity. In doing so, it will be guided by a moral philosophy in promoting trade & commerce in line with sustainable socioeconomic development.
We firmly believe that by our combined efforts, brisk vigor & dynamism will enable us to return to the nation’s economy. Investment will increase. Wealth will rise. Employment opportunity will be created. Climate will change so that individual members of the society may be able to utilize their knowledge & skills in production & nation building mission. In effect, social disturbance will die down. Poverty reduction will only be possible then.
Poverty Reduction in Bangladesh: Poverty Reduction in Bangladesh: Poverty Reduction in Bangladesh: Poverty Reduction in Bangladesh
The global economic environment is now marked by momentous changes. There are two apparently opposite trends developing simultaneously in the world. On the one hand, countries are moving towards global economic integration, particularly after the conclusion of Uruguay Round of GATT negotiations leading to establishment of World Trade Organization (WTO). On the other hand, developed and developing countries around the World are increasingly attempting at forming regional economic and trade blocs for intra-regional trade liberalization and economic integration. As the trend indicates, it is now widely recognized that global economic integration can best be achieved in a graduating or a step-by-step process through sub-regional and regional trade and economic cooperation.
Moreover “regional cooperation is fast becoming the key link” for success in the ever-continuing battle of mankind for its survival and prosperity. Countries with varying sizes, geographical features, and endowment of natural resources, with diverse religions, social complexities, political systems and different levels of growth and development are trying to find ways of establishing regional cooperation. In UNO’s efforts to achieve the goal of promoting social progress and better standard of life globally it is now increasingly felt that between the world today and its member states an intermediate stage is required to promote this objective.
Exploitation of the mutual advantages of trade and economic growth and of their link to geography has always been recognized as a vital tool for generating national and regional wealth.
The benefit of regional trade is an age-old reality and extensively dealt by Adam Smith even three hundred years before in his writing. He mentioned in his famous book “The Wealth of Nations.” I Quote
“The wealth of a neighboring nation, however, though dangerous in war and politics, is certainly advantageous in trade. A nation that would enrich itself by foreign trade, is certainly more likely to do so when its Neighbours are all rich, industrious and commercial nations. A great nation surrounded on all sides by wandering savages and poor barbarians might, no doubt, acquire riches by the cultivation of its own lands, and by its own interior commerce, but not by foreign trade”.
Unquote
For smaller nations in particular, it is even more vital because foreign trade enlarges the market and increases the scope and efficiency of division of labor, thereby increasing wealth and economic growth. Indeed, small countries in any particular region usually gets privilege and advantages out of the economically developed larger neighbor in the modern world. In 1995, in the context of Europe, Belgium and Sweden, two smaller countries neighboring France & Germany achieved trade ratios of 143 and 77 percent of their GDP respectively. In North American context we can cite the similar example for Canada and Mexico.
Regional Cooperation in SAARC
Regional Cooperation in SAARC
Regional Cooperation has two independent elements: that is, regional trade and regional integration. Let us examine the case of Regional Cooperation in SAARC ‘from these two parameters’.
Although one-fifth of the world population live in South Asian countries, they hold an insignificant position in the global economy accounting for only 1.9% of global GNP. Poverty is pervasive, bulk of the people are below poverty line in this region. Our region’s share in global trade is only 0.96% of export and 1.3% of import. The trade within the region is hardly 3% of our global trade and our countries rely heavily on the industrial economies for both import and export. The low volume of trade among SAARC countries means that the multiplier effects get their way to other countries, denying the region the benefits of higher production and employment. In the process we are contributing to growth of the economies outside the region.
There are several global factors that underscore the need for expediting the process of regional trade and economic cooperation among the South Asian Countries, as for developing countries of other parts of the World. Firstly, the developing countries particularly the countries in our region are being increasingly marginalized in the international trading community. Secondly the powerful trading blocs like European Union, NAFTA, and APEC among the major economies would further marginalize the South Asian economies. Thirdly, regional cooperation is now-a-days used as a dynamic instrument of accelerating the pace of development and economic growth.
Most of the countries of the world are increasingly trading with their neighbors and in fact, intra-regional trade often forms the bulk of the total trade of many regions in other parts of the world. Fourthly, the prospects of rightful and adequate improvement of the market access conditions in the developed world for the export of developing countries such as textiles, and clothings, agricultural commodities, footwear, labour-oriented products, etc. are not encouraging in near future even after establishment of free trade regime under WTO. Trade barriers against the export of developing countries are being multiplied on the pretext of environment protection, labour standard and other non-trade issues.
On the question of Regional Cooperation in South Asia, Indian Prime Minister Mr. Vajpayee in a recent statement underlined the importance of close regional cooperation for the progress of South Asia, and visioned that regional trade is going to grow faster as because there is unexploited potential in the neighbourhood. It is also important to liberalize cross-border trade to check black-market and underground trade as trade restrictions have given birth to smuggling, money laundering and other transnational crime. So it shows that we have little option but to develop regional trade both for economic development and also for maintaining socio-economic order.
Unfortunately Intra-regional trade in South Asia is yet below 5% of the total trade and 1% of total investment, whereas regional trade in case of NAFTA is 49%, EU 78% and ASEAN 53%. Given the population size and GDP growth in the South Asian countries, there are immense potentialities for growth of regional trade. But unfortunately the biggest impediments to regional cooperation is continuing to be posed by historical disputes, mistrust, armed insurrections and warlike situations between countries and sometime within the country itself. We may reap the dividend of regional cooperation by putting aside mistrust and dispelling unwarranted suspicions.
Poverty and low income syndrome in the South Asian economies pose a major constraint. It is also mocked as a “poor man’s club”. Savings and investment gap drives them to donors for aid. This in turn makes them dependent on industrialized donor countries for capital goods and input procurements. Hence, those South Asian countries which are capable of producing these goods fail to supply due to lack of funding. Countries of South Asia rely heavily on foreign capital to overcome the resource and trade gaps, and foreign capital is usually tied to import from donors or their allies.
SAARC Countries
Availability of technical know-how and adequate research base plays a catalyst role in development of product and promoting efficiency and complementarities. At present these facilities are lacking particularly in the least developed countries of the region. forging of economic integration would require cooperation and collaboration in the development of technical know-how and adequate research base in the region.
There is also the fear of economic domination of India among smaller countries in the region because of its central location, size, relatively advance stage of industrialization, relatively richer endowment of resources and comparative advantage in most goods produced. India alone constitute 3/4th of South Asian population and about 84 percent of value added in manufacturing. Against these apprehensions about Indian dominance, India is striving for more stronger link with global markets and developed economies than the countries in the region. Consequently, its imports from within the region are negligible accounting for only 1 percent of its total imports.
There is a popular misunderstanding that the cooperation between a large country like India and neighboring small countries like Bangladesh, Bhutan and Nepal cannot be a win-win case or in other words beneficial to both the small and the giant partners. That economic cooperation can be beneficial to both the giant and the small partners is amply demonstrated by the success story of NAFTA among the giant USA, relatively small but developed Canada and small & less developed Mexico. These countries historically remained apprehensive of each other. Canada and Mexico had the fear that they would lose more than gain by cooperating with the giant USA. The actual results of NAFTA have proved otherwise.
Communication gap is another important constraint to enhancement of South Asian economic cooperation. People in South Asia do not have information about markets and export potentials of each other. The data base of each country has to be significantly improved and networks of exchange of information have to be developed much wider more frequent than the existing official channels.
Political conflicts between the two major partners India and Pakistan remains another major obstacle holding back operationalization of SAPTA.
There is ample opportunity of benefiting from expansion of intra-regional trade in South Asia considering:
huge potential market of 1.3 billion people.
availability of relatively less expensive manpower in the region at all levels of skill.
availability of all varieties of natural resources shared in different degrees by the member countries;
wide possibilities of finding out enough complementarities because of wide disparities in industrial structure and resource endowments;
As regional economic cooperation develops, the South Asian countries will also gain collectively if they work jointly to expand markets for their products in other regions. The larger economies will benefit because of increased market for their products in the very neighborhood while smaller countries will benefit immensely if they gain easier access to vast markets in the neighborhood. The LDC members will also gain if the promised tariff concessions and removal of non-tariff barriers, special facilities and concessions as well as technical assistance are materialized.
But smaller countries can only benefit from the opportunities created by SAPTA if they expand their production base and share of value-added in the industrial sector in GDP. In addition to trade opportunities this requires the provision of infrastructure, industrial manpower, better credit system and improved information flow.
For the success of regional trade regional economic integration is a must. We must frankly state that we have enough exchange of ideas on the benefit of regional trade arrangements, but have given scantly attention on regional economic integration. For forming a successful regional bloc we should systematically take stock of the elements of complementarities, product-wise in built capacity, natural endowment, adjustment of division of labour and capacity for an economic integration. Then only we can dream of common currency and burial of all suspicions. Otherwise the free trade conception is likely be translated into creating market for the stronger economy on the weak ones. So for the sake of the continuity of the regional cooperation, we would again underline the importance of economic integration through equitable growth.
We should take lesson from the little progress of SAPTA, where list of products were exchanged for tariff and non-tariff concessions. But the implementation of the concessions has not yet materialized. The major constraints to effective operationalization of SAPTA are :
political conflicts between the two major member countries, India and Pakistan.
restrictive and resistant mind-set of various actors viz; the bureaucrats, inward -looking vested groups.
Easing and removal of these snags under the given state of things would be a long-drawn affair though not insurmountable.
We should shake of our apprehension about regional economic integration through equitable capacity building and natural distribution of labour and also of geographical advantages and avoid competition in the global market. This will rather strengthen our bargaining power in the external markets. In fact, the bigger economies of the region should help obtain all possible international concessions, assistance and collaboration in Favour of the LDCs of the region.
Regional Cooperation in SAARC
The flora and fauna of the South Asian region are more or less common. So, the geographical indication made by an individual country should not apply to the other country of this region to export similar items in the international market.
So, SAARC nation’s strategic approach towards regional trade arrangement and economic integration need to be reassessed taking into consideration the hard realities in respect of slow progress of tariff arrangements and also of geo-economic conditions of the countries of the region specially the big ones with relatively vast population, high level of industrial & technological base, richer resource endowment, high prospect of natural complementarities and establishing infrastructural linkage. In fact, it is necessary to create an equitable free trade area (FTA) in the SAARC region for setting up a base to face collectively the challenges stemming from globalization.
Regional Cooperation in SAARC: Regional Cooperation in SAARC: Regional Cooperation in SAARC: Regional Cooperation in SAARC
In Bangladesh, as a developing country, there is now a growing realization that a vibrant and dynamic private sector is the key to economic progress and sustained growth. The East Asian miracle exemplifies as to how the government can accelerate progress as a partner and as a facilitator. Developing countries, including Bangladesh, have come to increasingly rely on market forces to guide their development strategy. Efforts are being focused on the promotion and supporting of the private sector and creation of an enabling environment for it to flourish and maximize its contribution to economic progress within a business friendly and equitable framework. Bangladesh has been increasingly relying on this philosophy as a strategy for growth. As a consequence of this, the share of the private sector in total investment has risen. Public sector reforms will continue to be undertaken as a complement to the private sector so that it can function more effectively and up to its potential.
Private Sector in Five Year Plans
The growing emphasis on the private sector is reflected in the fact that the share of the private sector investment increased from 11 per cent in the First Five-year Plan to 44 per cent in the Fourth five years Plan. The performance of the private sector was better than what was planned for in the Fourth Plan. In fact, the share of the private sector in the total realized investment was 54 per cent of the total investment in FY95.
In view of the intensification of private sector-oriented reforms, it was anticipated that the private investment would increase substantially during the Fifth Plan period. An amount of Tk.1100.58 billion (56 per cent of the Plan outlay) was projected as private investment in the Fifth Plan.
During the Fifth Plan, it was said that the private sector is the main engine of growth. The public sector will act both as a promoter and as a partner rather than just as a regulator and will facilitate the growth of the private sector by providing improved physical and socio-economic infrastructure through regulatory and effective policy support measures.
The Fifth Plan provided a broad canvas and a framework in which the private sector can play an effective role in the development process for which an indicative guideline is given. The government will take steps to ensure the creation of an enabling environment through legal and administrative measures and infrastructure support so that the private sector can function and contribute according to its potential. The impressive growth registered by many high performing economies including that of East Asian ones has brought into focus some essential ingredients for development, namely the need to have a liberal market-oriented export led strategy along with the involvement of the government to provide necessary catalytic and effective support. The government may, where it is considered necessary, also participate in investment projects along with the private sector. Such ventures will normally be limited to areas where private sector is not forthcoming or where the government’s presence is desirable as a support to the private sector.
Bangladesh desperately needs rapid and sustainable economic growth to make a significant breakthrough in poverty alleviation. In the current development strategy, the private sector has to play a pivotal role in achieving the desired growth. We need to lift the economy from the current state of 5% plus growth rate to one of 7% in the short term and 9-10% within 2008. To attain such a growth rate the investment has to go up from the current level of 23.15% to 28% of GDP. There has also to be major structural change in the economy giving a leading role to industrial development, because for a country like Bangladesh with a low per capita income, heavy population pressure and limited agrarian base, development of manufacturing holds the major long-term hope of guaranteeing high level self-sustaining growth. The Fifth Five Year Plan rightly aimed at increasing share of industries in GDP from 9.28% in 1996-97 to 12.70% in 2001/02 raising the growth rate of the sector to about 14% from the benchmark level of 3.5%. That called for huge investment in the private sector. The Fifth Plan envisaged an investment of Tk. 298.78 billion during the plan period for the manufacturing sector accounting for 27.15% of total allocation for the private sector. It means that average annual private investment in manufacturing was to increase to Tk. 59.78 billion against benchmark level Tk. 33.40 billion. In an aid depleting global environment the big chunk of the investment has to come in the form of private capital inflows, that is, direct foreign investment (DFI).
The achievement of these objectives will depend on the following investment related factors:
– Congenial Policy Framework
– Growth of a dynamic and vibrant private sector
– Arrangement of adequate finance
– Enabling environment and efficient infra-structure
– Development of human capital
– Stable political environment
– Investment opportunities.
Changed Policy Framework in Bangladesh Economy
During the last 30 years the economy of Bangladesh has witnessed fundamental changes in economic, industrial and trade policies. At the time of liberation, Bangladesh inherited a mixed economic system. But as a natural consequence of wide-spread destruction and abandonment of industries due to Liberation War as well as on account of change of government policy, the public sector acquired a commanding position. The government nationalized various industries, business enterprises and financial institutions exceeding Tk. 15 million in fixed assets. A total of 725 industrial units were nationalized and placed under the management of 10 public sector corporations. But faced with pressures on financial and management resources, the government soon initiated the process of gradual expansion of the private sector. Private investment ceiling was raised from Tk. 2.5 million in 1973 to Tk. 30 million in 1974. It was further raised to Tk. 100 million in 1975 and totally withdrawn in 1978. By now, the policy has completely been reversed assigning private sector the dominant role, although a heavy burden of losses on account of the state owned enterprises (SOEs) is causing serious haemorrhage on the nation’s economic vitality. The government has also been implementing structural adjustments and liberalization policies enhancing the role of the private sector and opening the economy to free competition.
The Mirror of Bangladesh Economy
Potentials and Performance of Private Sector
Though relatively new and inexperienced, the private sector has already demonstrated its capability and buoyancy in the economy. A new generation of private sector entrepreneurs has emerged in Bangladesh who are well educated, hardworking, capable and eager to face the challenges of the globalized competitive market. They have proven their mettle in all sectors where they had opportunities to work with freedom and where the Government played the role more off a facilitator than a controller. The booming industries in ready-made garments, knitwear, shrimps, leather, ceramics etc. are clear indicators of the latent capabilities of the private sector and they also act as pointers to what the Government should do in capturing these potentials. It may be in order to show a few illustrations of promising performance of the private sector.
Firstly, private sector’s share in investment shows a rising trend increasing from 10.27 percent in 1990-91 to 15.61 percent of GDP in 1999-2000 and 16.78 percent in 2001-02 while that of public sector stagnates between 6-7 percent.
Secondly, private enterprises are more efficient than state owned enterprises in respect of utilization of assets for generation of employment and value addition. Owning 37.62% of fixed assets private enterprises accounts for 74.57% employment and 66.2% value addition while owning 62.38% of fixed assets the state owned enterprises (SOEs) account for only 25.43% of employment and 33.79% of value addition as in 1989-90.
Thirdly, the private sector performance is more spectacular in foreign exchange earnings from export. Out of the total foreign exchange earnings of US 5.59 billion in 2001-02, private enterprises represented more than 90% of the total export earning which has risen from 74.27% in 1990-91.
Private Sector in the Poverty Reduction Strategy
Under the Poverty Reduction Strategy of the Government, the private sector is the engine of economic growth. The Government will create an investment-friendly environment and act as a facilitator through pursuing policies to create a stable macro economy, improve law and order, promote good governance, maintain competitiveness, remove infrastructure bottlenecks, ensure cost effective fiscal and financial services, and provide market information and support services. With increasing role of the private sector, competition and transparent rules would be framed for protecting consumer’s rights and trust in the market, minimizing the cost of information and enhancing sustainable growth of the private sector. Women’s participation in private sector activities will be effectively supported both as participants in the labour market and as entrepreneurs.
Under the 1999 Industrial Policy, restrictions on private sector participation in all sectors except defense, nuclear energy, printing of currency notes, and forest plantation and mechanized extraction in reserved forests, have been removed. The Government is aware of the constraints hindering the growth of the private sector and would implement effective measures to remove the hurdles through effective and coordinated policies and actions. The key areas would be: infrastructure development (e.g. power, telecommunications, roads and ports), strengthened financial and capital markets, quality of the labour force, reduced costs of doing business by reforming institutional and regulatory framework, improved law and order condition, and better environment for foreign investment. Specific measures would be worked out in consultation with the private sector. For proper functioning of the private sector, physical improvements and management reforms in the basic infrastructure including power, water supply, port and telecommunications will be given priority along with private sector participation. The government would take effective measures to encourage the private sector to become gender sensitive, facilitate women’s participation in private sector activities and create institutions like childcare centres to facilitate women’s enhanced participation.
Private Sector in the Delivery of Social Services
There are several reasons why increased role of the private sector is perceived in the provisioning of social services. Neo-liberal perception that state organizations are predatory and inefficient, with rent seeking as the primary motive for the behaviour of the public officials, is dominant in current thinking. One offshoot of such a perception recommends privatization. While vigorous pursuit for privatization in the industrial sector is more frequently observed, outright transfer of responsibility in delivering social services to the private sector is not made due to presence of “public goods” agreement. However, inclusion of private and other non-government sectors are perceived to induce competition and make the state more accountable. With the latter perception, the World Bank document on Country Assistance Strategy for Bangladesh notes that, NGO partnership and stakeholder participation make up for weak, centralized public institutions and increase public accountability. As a part of long-term strategy, the WB therefore intends to support civil society and the private sector to help build constituencies that call for accountable and well-performing public institutions.
Participation of private sector in the delivery of social services, either on humanitarian grounds or for commercial motive, is a historical phenomenon and no single agency may be credited to have initiated it. However, awareness about it paved the way for a wide range of experiments; and these experiments have unfolded new sets of relations among various agents involved in the process. Thus, there is a need to have fresh looks into the classification of social services, roles to be played by the state, for-profit and non-profit private sectors, and by the civic society. Such ventures will help in designing a new set of rules of business to be put in place with a view to ensure greater social welfare.
Response of Private Sector in Globalization
Globalization is almost entirely market driven. The process has gained momentum and is based upon liberalization of trade, capital and currency markets. Private sector responded in full measure to opportunity thus opened up. The role and function of the private sector in globalization is obvious. Integration of national economies into a global market has been the work of multination stock market operators, currency traders and speculators motivated by profit. Business and industry has been the vital force behind innovations in production, distribution and marketing.
Reform measures undertaken by organizations like GATT, WTO, IMF, World Bank and individual governments provided the enabling environment in which individual companies and firms looked for better market for goods as well as for investment of capital. Among 200 biggest economic entities 160 are not states reflecting the command of private sector in to-day’s global economic activities.
In view of the above, private sector needs some assistance and facilities for playing its role in the development of the country. Those issues are;
A) Arrangement of Adequate Finance for Private Sector
The private sector of Bangladesh has a notable contribution to the industrial sector. But the industrial sector is currently starved of term lending. Institutional arrangement for meeting the credit requirements for industrial investment is grossly inadequate. The commercial banks are basically ill suited to meet the requirements of term lending for industrial projects. By the very nature of their functions the commercial banks are used to borrow short-term and as such lending for long-term would create serious mismatch between the assets and liabilities of the banks. So, commercial banks can’t be relied upon for heavy involvement in industrial project financing. Unfortunately the traditional development financing institutions (DFI) namely, the Bangladesh Shilpa Bank (BSB) and Bangladesh Shilpa Rin Sangtha (BSRS) are now virtually defunct. The government should devise new institutions and instruments for financing industrial projects. The experience with the investment companies is not also encouraging, as most of them are currently operating like retail bankers. The stock market can be an important source of mobilizing equity, but the present state of the stock market does not hold any promising outlook for mobilizing equity for new ventures. So, debt financing of new projects will remain an indispensable requirement. The government will have to mobilize on a priority basis funds for financing industries and develop an efficient mechanism for their disbursement.
B) Enabling Environment and Efficient Infra-Structure
Liberalization and market economy have exposed the domestic industries to global competition. But the private sector enterprises, although they have enough potentials, are grossly hamstrung by the absence of a requisite enabling environment to survive and thrive. Undoubtedly liberalization has brought in both opportunities and challenges. True, the enterprises can have easier access to inputs and can have share in the vast and growing global market under a liberalized trade regime. But the challenges are much more serious. Local enterprises are to face global competition from those who are more experienced and enjoy better infrastructure and other supportive environment. They have to be efficient in cost, quality and marketing. They need a level-playing-field which is improving but remains grossly inadequate in Bangladesh. The problems and inadequacies in infrastructure facilities in electricity, port, telecommunication, roads and highways need to be attended and improved on a priority basis.
C) Business-friendly Administration
The change of development strategy towards private sector-led growth and market economy does in no way mean marginalization of the role of the government. The experience of East and South Asian miracle economies shows that the government institutions played a significant role in enabling the private sector to spearhead the growth process. The growth and performance of a vibrant and dynamic private sector need a lot of support and facilities from the government institutions. There must be an efficient and business friendly administration. The facilities and services that an investor need are; among others, acquire land, have connection of electricity, gas, telephone, water and sewerage, clearance from local authorities and environment authority, port facilities, customs clearance, etc. These should be available promptly and without hassle. But what is the real situation? Are these easily available? The need for these are well recognized in government policy. There is no dearth of interest and intentions in the top leadership in government. It is an accepted and declared policy that government shall act as a facilitator. But there are problems at mid and operating level of the administration that in fact provides the service. The perception and mindset of them need change. Administrative reform is a must. Administrative efficiency is crucial in facilitating investments in the prospective sectors like power, gas, telecommunication and port development which have been opened for private investment and have already attracted a large number of foreign companies. But delays, indecision and lack of transparency in the bureaucracy in processing and finalizing deals are working as deterrents. We should show more professionalism in negotiation capability. Time and opportunity will not wait for us forever.
Bangladesh’s Journey to Economic Development
D) Development of Human Capital
The much talked about comparative advantage of low wages and cheap labour no longer holds well. The gap between developed and developing countries is now not so much of a resource gap, as it is a knowledge gap. It should be a matter of concern to all of us that this gap is widening rapidly. Our companies can’t survive simply by increasing output with the use of capital and so-called cheap labour. Productivity must be increased. To raise labour productivity investments have to be made in human capital. The source of competitiveness should continue to shift from labour intensive to more skill-and-capital intensive investment. But enhancing technological capabilities must propel that shift. We lack adequate trained accountants, technicians, engineers and managers. So the investment in human capital development should draw adequate attention of the government. It is heartening to note that the government has assigned highest priority to the education sector in terms of budgetary allocation. But the quality of education is deteriorating. Discipline and proper environment in the educational institutions must be ensured. Allowing student politics in educational institutions is a major cause disturbing the educational environment.
E) Stable Political Environment
Social and political stability is an indispensable pre-condition to development. Although there is a broad political consensus among the political parties of Bangladesh as regards economic policy of market economy and private sector-led growth, confrontational political programmes and activities like hartals, work stoppages and blockades are vitiating the peaceful environment for pursuing productive and new investment initiatives. These are discouraging domestic investment as well as keeping foreign investment at bay. There is urgent need for having a consensus among the political parties to abandon the programs of confrontations that impede development.
Economics and Politics
You are aware that we are going to face formidable challenges in every field of our trade and industry after 2004 under the WTO regime.
We also know that ‘the strongest link between economics and the real world has always been politics’. In any organised society there is a structure that simultaneously encompasses both markets and governments. Societies both poor and rich necessarily have their own economics and politics. The economics move the politics and the politics govern the economics; No ideology of markets can leave out governments or politics. If an economy is exogenous, it cannot but be unstable and unbalanced.
The economists in the past have long been evading the matter of dependence of economics on politics, and preparing models on the assumption of steady socio-economic conditions. Realizing the folly of that assumption, the economists now a days are taking into account interrelated aspects of social anthropology, industry, commerce, culture, and politics etc while making new economic models or policies. We have thus come to recognize that socio-economic development is most likely to be on positive dynamics when there is a balance of economic and political pioneering par excellence.
Currently in Bangladesh, the standard public response, indeed the only option available to the citizens in reaction to amoral practices, abuses of power, extra-constitutional behaviour and poor economic policies of successive governments is to elect one of the two major parties, in alternate tenures. They both are widely perceived as autocratic in their conduct of state affairs, without caring much for a democratic process or the rule of law. The democratic ritual of transfer of power from one party to another, now badly needs to be replenished by a moral philosophy which would seek real “solutions to social problems,” in the least by advocating a greater balance of power among existing social groupings. Only if rights and obligations are redefined to reflect such a balance then private sector can do the job entrusted to them in efficient manner.
Economic theory teaches us that a classic liberal society leads to a maximum economy: Contemporary economic indicators clearly show that the distribution of both wealth and income is more skewed in less developed and less democratic societies than in more developed ones, and that distribution of income tends to become more egalitarian with economic growth. Less developed countries have certain characteristics in common, like excessive power in the hands of rulers and ruling parties. Holders of excessive political power accumulate economic and financial resources excessively and prevent productivity of the people and the economy from functioning optimally, thereby preventing the maximum possible production of goods and services. They prevent balanced growth of rules and regulations for the market forces to function properly, or prevent the market from functioning by excess of rules and regulations. They prevent the diffusion of power among the social groupings, and allow corruption unabatedly.
Therefore, it is imperative that in order to achieve full economic potential, to reduce income inequality, reduce the gap between the rich and the poor, and to reduce poverty, the civil society which includes economists as much as businessmen and trade unionists, must work hand in hand to remove obstacles and impediments to our production process and economic growth.
The success or failure of any country over the next few decades hinges on economic growth, which requires profound change in our society. We must identify the areas in which change would help economic performance. The most important of these are:
– Diffusion of power by way of distribution of constituted authority to various social groupings;
– Constitutional reforms to dilute the concentration of excessive power in few hands or few focal points through proper checks and balances, so that a small elite does not possess the power to direct all aspects of citizens’ lives;
– Decentralisation of power by establishment of autonomous local government with adequate political and financial devolution;
– Reform of electoral process for comprehensive representation;
– Breaking the nexus between politicians, criminals and the police;
– Eradication of Mastaani Chandabazi (extortion) culture from politics.
– Observance of vertical to horizontal accountability necessary to liberalise polity; (Rulers must become more accountable to their constituents. Investors, traders and financiers must become more accountable to one another for the proper quantity, quality and prices of their merchandise, for payment obligations, and for their promises).
– Complementary formulation of fiscal and monetary policies;
– Enforcement of contracts freely negotiated by independent parties with the full force of law by the state;
– Introduction of international standards in accounting; (Government monopolies, and private businesses often do not adhere to standards of accounting and auditing necessary for their transparency to creditors and stockholders. Strict rules must be made and enforced by the state).
– Redirection of political confrontation and political violence, if not altogether eliminated by a process of conflict resolution;
– Elimination of ambivalent laws and practices of arbitrary enforcement; (Many laws are unclear and antiquated. Frequently a law, on the books but defunct and widely ignored, is suddenly enforced against a political opponent or as a rent-seeking tool).
– Improvement of law and order situation; (Crime rate must be reduced. The moral case against crime is beyond dispute. Our civil society, however, hardly takes into account the effect of crime on economic performance. Bangladesh in all probability will continue to have a high rate of crimes for another generation, but if the crime level is not reduced to a tolerable limit it will impose a grave burden on the competitiveness and economic performance of the productive organs of the polity and render the country unfit to govern).
– Enforcement of a strong Human Rights regime; (A large degree of personal cruelty is found in Bangladesh like torture of suspect felons and repression of political opponents. Constitutional responsibility must be placed on those in power so that human rights are protected, and not violated without being punished. There should be no immunity for violation of human rights).
Strict observance of meritocracy; (Ministers and public officials must be appointed on the basis of capability, knowledge and experience, not basis of political favour).
Regulatory Framework
Reduction of government monopolies in the market place: (Though some people argue that some of the state monopoly products or services of “national importance” such as oil, gas, railroads, ports, airlines, fertilizers and banks are better retained in the public sector because they belong to “the people”, in practice they are “operated by the few for the benefit of the few.” Prices are fixed, often capriciously, by those who hold excessive power, and are far from cost-related. It is “the people” who pay out of their noses for what belongs to them. There is need for immediate change in the attitude of the Government in this role).
Giving up state monopolies does not mean that there will be little role for the Government in economic management over the coming decades. The government will continue to set policy over a large range of issues, and will continue to provide the basic legal and financial infrastructure under which the market will operate. The Government will retain, or may even increase, its responsibility for ensuring social order and underwriting the basic needs of the underprivileged in the society. But the Government must increasingly look for ways to streamline the economy by regulations rather than intervention. But the current regulatory practices of the government also need to be streamlined, such as:
– Fickle Regulations – Many regulations are often imposed in a capricious manner. They are enforced in one year and repealed or ignored next year. Changes of taxes, duties, subsidies & incentives year to year make business budget difficult: one must understand that every ill-conceived regulation carries economic costs, so does lack of adequate regulation.
– Excessive Restrictions – Excessive pre-requisites of rules and regulations must be eliminated so that people can take initiative at will, as and when they wish. The Government also incurs certain costs of interventions, regulations and restrictions, and needs to balance the gains against these costs. The negative economic effects of over regulation of commercial activities are widely recognized since 1980’s.
Development Journey
Momentum of Change
The momentum of change in any society has to be generated from within the society itself. In addition to suggested changes in the administrative agenda, our society as a whole, at the civil society level as well as at the community level must address many issues, such as:
– Removal of socio-cultural inhibitions and restrictions on freedom of speech;
– Containment of corruption, which has now infested the society from the highest to the lowest level;
– Total respect for the Rule of Law;
– Public demand for transparency in the style of governance;
– Modernization the civil service, customs, and police services;
– Surveillance against abuse of public funding; (For instance, teachers, engineers, doctors in government pay roll are often engaged in full time consultancy, private tuition and private practise, which apart from dereliction of duty results in inequity of professional opportunities).
– Patronisation of invention and scientific discovery;
– Reduction of high unemployment by increasing investment in infrastructure and industrial sector;
– Improvement of educational standard to support industrial economy;
– Further reduction of population growth rate;
– Improvement of medical services.
Most people would see these tasks as political, and indeed they are political tasks in the sense that the country looks forward to politicians to guide it. The system of government in Bangladesh, however, has structural deficiencies which make it difficult to respond to change. The civil society must therefore come forward and take the initiative for fulfilment of these tasks. That would indeed be the first step towards addressing the issue of income disparity.
Impediments to Private Sector Growth
The impediments to entrepreneurship and growth of the private sector are numerable and multifarious. These not only impede initiatives but also make many enterprises fail and go into default. I would enumerate for your information the major ones:
The lack of long-term capital availability through banking channels;
The lack of long-term capital in the capital market / bond market;
Dumping of products, largely by smuggling;
Inefficient support infrastructure:
(a) in the utilities sector, specifically in power,
(b) of port services, including land ports,
(c) high transportation costs,
(d) a largely inefficient telecommunications system which is also very costly.
Widespread tariff anomalies.
High customs’ duties.
Complicated and cumbersome customs procedures aggravated by extensive arbitrary powers exercised by customs officers.
Low productivity and a highly politicised labour sector;
Inconsistency among different government policy statements;
An inefficient and corrupt judicial system;
Widespread corruption;
Political instability leading to frequent hartals or strikes;
High-interest rates in the banking sector;
A lack of credible statistics;
The lack of transparency and unaccountability in government decision-making;
The lack of an appropriate education system to support an industrial economy;
Too many holidays;
A slow process of deregulation and privatisation;
Lack of industry friendly social and political environment;
Lack of good governance;
Lack regulatory bodies;
An “uneven playing field” between the private sector and the public sector;
Lack of local technology;
Lack of research and development;
Government control on public utilities.
Legal Reforms for Private Sector Growth
In addition to above major impediments to social, political, cultural and economic progress are antiquated laws and rules based on those laws. All these antiquated laws must be immediately identified and abolished or amended. Many new laws may also need to be enacted that reflect the democratic practices of the 21st century and to establish rule of law. The impact of new technology, synergies of globalisation, the dynamics of a free economy and the demands of liberal democracy have made many old laws ineffective, unnecessary and even detrimental to social and economic growth. Antiquated rules, regulations and laws have become a real block to citizens’ ideas and aspirations of social, political and economic development.
The interdependence of various economic agents and the complexity of their relationships increasingly demand a better legal framework. The main purpose of a better legal framework is to reduce the cost and risk of transactions, as well as to harmonise regulations across different jurisdictions. Hence, business leaders look forward to the judicial reform commission who can expeditiously perform these reforms by suggesting priority action on the following:
The company law should be so amended to allow entrepreneurs and enterprises to operate in a modern environment.
Laws to regulate “hundi” and to prohibit money laundering should be introduced.
The Foreign Exchange Regulations Act should be amended.
The Banking Companies Act should be amended.
The Insurance Companies Act should be amended.
The Financial Instrument Act should be amended.
Environmental laws should be amended.
The Power Act should be amended.
The Petroleum Act should be amended.
The Industrial Policy should be enacted as an enforceable instrument.
The Port Authority Act should be amended.
The Dock Labour Management Board should be restructured by law.
The T&T Board should be restructured by law.
The Arbitration Act should be amended to conform to international standards.
Foreign investment laws should be amended to ensure a minimum 15% to 20% local partnership except in the EPZ. This is very important for Bangladeshi citizens to acquire foreign technology and expertise.
Labour laws should be amended.
Factory laws should be amended.
The Shops and Establishment Act (1961) should be amended.
New transparent laws protecting civil rights should be enacted.
Anti-terrorist laws should be reinstated.
The Special Powers Act should be abolished.
Bankruptcy laws should be amended to allow debt restructuring and shielding of the company’s finances against disturbing pressures of creditors while restructuring takes place. Directors should have legal protection.
The IMF President said recently in Thailand that;
(a) the private sector must feel confident of the legal system and of legal protection so that entrepreneurs can again undertake the risk of business venture,
(b) if the market economy is to work, then laws must be effective, and the legal system must work efficiently,
(c) nations must allow entrepreneurs to take risks under the protection of the law and all bankruptcy laws must be revised to help entrepreneurs or bankers to take prudent risks to contribute to the healthy growth of the economy.
New foreclosure laws should be enacted to allow financial institutions to take over mortgaged assets without going to court.
The Artha Rin Adalat Act should be amended.
A new bankruptcy court separate from the “Artha Rin Adalat” is to be established.
Admiralty laws should be amended to protect foreign flag vessels in conformity with international law.
Secrecy laws should be amended and a “Rights of Information Act” shall be enacted.
Patent laws should be amended and IPRL should be immediately enacted.
New laws should be enacted making it mandatory to pay interest on delayed payments.
No laws should have retrospective effect unless so approved by a three-fourths vote in the Parliament.
A new law should be enacted to create a land port authority.
The public must have a chance to interact with lawmakers before any new laws are created or old laws amended.
New laws should be enacted so that affected citizens can file cases against ministers, government officers, elected officials, police officers, customs officers, etc. for injustice, delayed decisions, wrong decisions, malafide decisions, etc.
A new law shall be enacted to protect witnesses.
A new “law of libel” shall be enacted so people can safeguard their rights and liberties.
Most Prospective Sectors to Invest in Bangladesh
Dynamic and vibrant Private Sector: FBCCI and other Trade Bodies
It is now widely recognized that a dynamic and vibrant private sector is crucial to rapid and sustained economic growth. The government policy has put the private sector to the driving seat of the engine for the growth of the economy.
The contribution of the business leaders, trade bodies and the FBCCI were enormous. The transition and the formation of the private sector were directly linked to the opportunities or facilities that the prevailing policies allowed. This is borne out from the outlook each five-year plan allowed as well as the perception the World Bank and IMF had. The private sector started off without a right to be. Individual efforts were channelized gradually to formation of trade bodies and then the FBCCI.
When some 80 percent of trade and 95 percent of the industry were in the public sector, we in the private sector were either suppliers, contractors, overseas suppliers agents at one end or agents and distributors at the other end. Private sector permission to enter the raw jute export trade was secured by the FBCCI and member bodies in late 1975. The industrial ceiling waiver was an uphill task with first relaxation made in 1974 and final withdrawal in 1978. The FBCCI and the member bodies raised issues of return of Bangladesh jute and textile mills; denationalization and return of mills to owners; divesting of government-held shares to activate the stock market; introduction of two sectors – reserved and free; allowing banks and insurance companies in the private sector; abolition of octroi, restricting export trade to the private sector and a host of other demands which were raised.
The private sector has demonstrated its ability to undertake most sophisticated industries and meet the demand of the nation. The pharmaceutical industry is a case in point. Not only has the production capacity doubled but also the prices for the consumer have come down substantially.
While conducive policy environment has made rapid progress, the procedural problems appear to be a major stumbling bloc. It is foremost on the present agenda of the FBCCI and trade bodies to highlight and seek simplification and transparency of procedures. There is a visible extortion at each stratum, which dissipates initiative and threatens industry and commerce.
The private sector is in its early stage and the entrepreneurs of this generation are at work and contribute from their experience and wisdom to innumerable issues that it confronts. FBCCI is the focus and contact point for business viewpoint and manifestation of the thought process of the private sector.
In the two dominant areas of export-led growth and privatization, FBCCI recognizes and endeavours to play its role. The private sector growth imperative makes a strong demand and imposes great responsibility on the FBCCI. The strength has to be augmented to effectively facilitate the change it had so long targeted. FBCCI interacts closely with member bodies; contributes to policy through various avenues including consultative committees; it renders a wide range of services in connection with international trade opportunities. FBCCI has the avenue of constructive access to the overseas markets through counterpart apex organizations with whom joint chamber agreements exist and the International Chamber of Commerce (ICC), Islamic Chamber of Commerce and Industry (ICCI), SAARC Chamber of Commerce and Industry (SCCI) and Confederation of Asia-Pacific Chambers of Commerce and Industry (CACCI). These are useful mediums but inadequately exploited due to resource constraints. The FBCCI hopes with the support of the members and the government it will continue in the path of progress and national well being with pride and dignity.
Now, to perform the desirable responsibilities as an apex representative of the private sector, FBCCI needs to remove the existing impediments against it.
The Role of Private Sector in Bangladesh: The Role of Private Sector in Bangladesh: The Role of Private Sector in Bangladesh: The Role of Private Sector in Bangladesh
In the heart of South Asia, where the sun’s golden rays grace the land with unwavering consistency, lies Bangladesh, a country vibrant with life, resilience, and an insatiable thirst for progress. Yet, amidst its bustling cities, verdant landscapes, and the rhythmic flow of its rivers, Bangladesh faces a significant challenge: the pressing need for sustainable and reliable energy sources. In this quest, a beacon of hope shines brightly above—the boundless potential of solar energy.
As Bangladesh propels itself forward, the demand for energy grows ever more urgent. The bustling cities, the expanding industries, and the aspirations of a nation are powered by an energy grid that grapples with intermittent supply and escalating costs. This energy crisis casts a shadow, not only on progress but on the everyday lives of its people, who deserve a consistent and affordable source of power.
Bangladesh, in its geographical blessing, boasts abundant sunlight throughout the year. The sun, a tireless companion in the sky, has the potential to become the country’s ally in its energy pursuit. Solar energy, harnessed from this benevolent star, promises to illuminate a brighter path—a path that is clean, sustainable, and tailored to the unique needs of Bangladesh.
In a country that faces the wrath of nature’s fury through cyclones and flooding, resilience is not just a virtue but a necessity. Solar energy offers a decentralized and resilient solution, reducing vulnerability to disruptions and providing a lifeline when conventional power sources falter. This resilience has the power to protect communities, sustain vital services, and foster progress even in the face of adversity.
Solar Energy:
Solar energy is radiant energy emitted by the sun in the form of electromagnetic waves. This energy is harnessed and converted into usable forms, primarily for generating electricity or providing heat for various applications. Solar energy is a renewable resource, as it is continuously available as long as the sun exists, making it a key component in the transition to cleaner and more sustainable energy sources.
Classification of Solar Energy: Solar energy can be classified into two main categories based on its applications and the technology used to capture and utilize it:
Solar Thermal Energy: Solar thermal energy refers to the utilization of solar radiation to heat a fluid or a material, which is then used for various heating and cooling purposes. There are two primary types of solar thermal systems:
a. Solar Water Heating: In this system, solar collectors (typically flat-plate or evacuated tube collectors) absorb sunlight and convert it into heat, which is then transferred to a fluid (usually water or a heat-transfer fluid). The heated fluid is used for domestic hot water supply, space heating, and even industrial processes.
b. Concentrated Solar Power (CSP): CSP systems use mirrors or lenses to concentrate sunlight onto a small area, generating intense heat. This heat is used to produce steam, which drives a turbine to generate electricity. CSP is particularly useful for large-scale power generation and can incorporate thermal energy storage for continuous electricity production even when the sun is not shining.
Solar Photovoltaic (PV) Energy: Solar PV energy involves the direct conversion of sunlight into electricity using photovoltaic cells (solar panels). These cells are typically made of semiconductor materials (such as silicon) that absorb photons from sunlight and release electrons, creating an electric current. Solar PV can be categorized based on various parameters:
A. Grid-Connected PV Systems: These systems are directly connected to the electrical grid. Excess electricity generated during sunny periods can be fed back into the grid, and the user can draw electricity from the grid when solar generation is insufficient.
B. Off-Grid PV Systems: Off-grid systems are not connected to the main electrical grid. They include solar panels, energy storage (batteries), and sometimes backup generators. These systems are commonly used in remote areas without access to the grid.
C. Hybrid PV Systems: Hybrid systems combine solar PV with other sources of energy, such as wind turbines or diesel generators, along with energy storage. These systems provide more reliable power in areas with intermittent renewable energy generation.
The classification of solar energy into these categories highlights its versatility and potential for various applications, from providing clean electricity to meeting heating needs. As technology advances and becomes more affordable, solar energy continues to play a vital role in the global transition to renewable and sustainable energy sources.
Harnessing Solar Energy: A Bright Future for Bangladesh
Uses of Solar Energy:
Solar energy offers a wide range of alternative uses beyond its primary role in electricity generation. These innovative applications leverage the abundant and renewable nature of solar power to address various challenges, improve efficiency, and enhance sustainability in diverse fields. Here are several alternative uses of solar energy:
Solar Water Heating: Solar water heating systems utilize solar energy to heat water for domestic, commercial, or industrial use. These systems typically consist of solar collectors that absorb sunlight and transfer the heat to a fluid (usually water or a heat-transfer fluid) that circulates through the collectors. Solar water heaters are particularly effective for providing hot water for showers, laundry, and other applications, reducing the reliance on traditional water heating methods and saving energy costs.
Solar Cooking: Solar cookers or solar ovens use solar energy to cook food without the need for traditional fuels such as gas or charcoal. These devices capture sunlight using reflective surfaces and focus it on the cooking chamber, where temperatures rise enough to cook meals. Solar cooking is especially valuable in areas with limited access to cooking fuels, contributing to indoor air quality and reducing deforestation.
Solar Desalination: In regions facing water scarcity, solar desalination systems use solar energy to remove salt and impurities from seawater, making it suitable for drinking and irrigation. Solar stills or solar-assisted desalination systems can provide a sustainable source of fresh water, benefiting coastal communities and arid regions.
Solar-Powered Ventilation and Cooling: Solar attic fans and solar-powered ventilation systems can reduce the cooling load of buildings by removing hot air from attics and improving airflow. Additionally, solar air conditioning systems use solar energy to power cooling mechanisms, making them an efficient and eco-friendly solution for climate control in sunny regions.
Solar-Powered Refrigeration: Solar refrigeration systems, designed with energy-efficient components and solar panels, can provide refrigeration in off-grid or remote areas, preserving perishable goods like food, vaccines, and medicines. These systems are vital for regions with unreliable access to electricity and can be crucial in healthcare and food storage.
Solar-Powered Water Pumps for Agriculture: Solar pumps are used for irrigation in agriculture, drawing water from wells, rivers, or other sources using solar energy. These pumps are particularly valuable in remote or off-grid areas, providing a sustainable and cost-effective way to water crops, improving agricultural productivity, and reducing dependence on fossil fuels for pumping water.
Solar-Powered Charging Stations: Solar-powered charging stations for mobile phones, laptops, and other devices can be set up in public spaces, rural areas, and off-grid locations, providing a convenient and sustainable way for people to charge their devices, stay connected, and access essential services.
Solar-Powered Transportation: Solar energy can be used to power various forms of transportation, such as solar-powered electric vehicles (EVs) and solar charging stations for EVs. Solar panels on vehicles or at charging stations can provide renewable energy to charge EV batteries, reducing greenhouse gas emissions from the transportation sector.
Solar-Powered Water Purification: Solar water purification systems use solar energy to power water purification processes, providing access to clean and safe drinking water in areas without reliable electricity sources or clean water infrastructure.
Solar-Powered Education and Connectivity: Solar energy can be used to power educational tools, internet access points, and e-learning facilities in remote or underserved areas, promoting digital inclusion and improving educational opportunities.
Uses of Solar Energy
These alternative uses of solar energy demonstrate the versatility and adaptability of solar technology to meet various needs, from basic necessities like water and food to advanced applications in healthcare, education, and sustainability. As technology continues to advance and solar solutions become more affordable, the potential for innovative solar applications to contribute to a more sustainable and resilient future is vast.
Estimated Cost Benefit of a Solar Home System Installation:
The estimated cost benefit of a solar home system (SHS) installation depends on various factors, including the initial investment, ongoing savings on electricity bills, maintenance costs, and the lifespan of the system. Let’s break down the key components to understand the cost benefit:
Initial Investment: The cost of installing an SHS depends on the system’s size, capacity, quality of components, and installation charges. It’s essential to consider not only the cost of solar panels but also inverters, batteries (if the system has energy storage), mounting equipment, wiring, and installation labor. Additionally, government incentives, subsidies, or financing options can significantly impact the initial investment.
Savings on Electricity Bills: Once the SHS is installed, homeowners can significantly reduce or even eliminate their reliance on grid electricity. This translates into substantial savings on monthly electricity bills. The amount of savings depends on the local electricity rates, the size of the SHS, and the household’s energy consumption.
Lifespan and Maintenance Costs: A high-quality solar home system can last for 20-25 years or more with proper maintenance. Routine maintenance costs are relatively low, typically involving occasional cleaning of solar panels and periodic inspections. The system’s durability and minimal maintenance requirements contribute to long-term cost savings.
Government Incentives and Subsidies: In some regions, governments offer incentives, tax credits, or subsidies for installing solar systems. These incentives can significantly reduce the initial investment, improving the cost benefit of the installation.
Environmental Benefits: Although not directly a monetary benefit to the homeowner, the environmental impact of a solar home system should be considered. Solar energy is clean and renewable, reducing carbon emissions and contributing to a healthier environment. This benefit aligns with global efforts to combat climate change and ensures a more sustainable future.
Example Calculation: Let’s consider a simplified example: A household in a region with high electricity costs installs a solar home system with an initial investment of Tk. 50,000 (after considering subsidies). The system saves the household Tk. 1000 per month on electricity bills, and maintenance costs are estimated at TK. 500 per year. The system is expected to last for 25 years.
Solar Home System
Cost Benefit Analysis:
Total Savings on Electricity Bills over 25 years: Tk. 1000/month * 12 months/year * 25 years = TK. 300,000
Total Maintenance Costs over 25 years: Tk. 500/year * 25 years = TK. 12,500
In this simplified example, the estimated net cost benefit of the solar home system installation over 25 years would be TK. 2,37,500/=
Keep in mind that the actual cost benefit may vary based on regional factors, energy consumption patterns, changes in electricity rates, and system performance. It’s essential to conduct a detailed analysis considering local conditions to determine the specific cost benefit of an SHS installation.
Government Leadership and Innovation:
The journey towards a solar-powered future is a collective effort. The government of Bangladesh has recognized the importance of this endeavor and has taken significant steps to promote solar energy adoption. Initiatives like the “Solar Home System” program, which aims to provide clean and affordable solar power to rural households, showcase the commitment to making a positive change. Additionally, local innovation in solar technology is budding, with creative solutions such as solar-powered water pumps revolutionizing agriculture and enhancing livelihoods.
The future of Bangladesh, with its ambitious goals and aspirations, rests on its ability to harness the immense potential of solar energy. This journey is one of promise—a promise of a nation empowered by the sun, resilient in the face of challenges, and determined to create a sustainable, prosperous, and brighter tomorrow. Join us as we embark on this journey, where solar energy isn’t just a resource; it’s a ray of hope, illuminating a path towards progress for Bangladesh and the world.
Potential of Solar Energy
Blessed with a strategic geographical location, Bangladesh receives an abundance of sunlight throughout the year. This natural gift bestows upon the nation an immense solar resource waiting to be harnessed. From the northern hills to the southern coastal regions, solar panels gleam under the sun’s rays, offering a renewable and virtually limitless source of energy.
Addressing Energy Demand:
The ever-growing energy demand in Bangladesh has led to a pressing need for solutions that are not only dependable but also environmentally sustainable. Solar energy emerges as the perfect match for this demand. By tapping into this vast solar potential, Bangladesh can significantly augment its energy generation capacity, reducing the strain on traditional power sources and contributing to a more resilient and reliable energy grid.
Off-Grid Solutions:
In remote areas where connecting to the national grid is challenging, solar energy can be a lifeline. Off-grid solar solutions, such as solar home systems and mini-grids, can bring electricity to villages that have never before experienced the benefits of modern energy. This transformative impact on rural communities has the potential to uplift lives, empower education, and stimulate economic growth.
Climate Change Mitigation:
As the world grapples with the effects of climate change, Bangladesh is not exempt from its impacts. Rising sea levels, extreme weather events, and changing precipitation patterns pose significant challenges. Solar energy represents a powerful tool in the fight against climate change. By reducing reliance on fossil fuels, Bangladesh can contribute to global efforts to mitigate carbon emissions and build a more sustainable future.
Economic Opportunities:
The solar industry is not just a source of clean energy; it’s a catalyst for economic growth. The adoption of solar technology necessitates skilled workers for installation, maintenance, and innovation. This industry can create job opportunities across a spectrum of skill levels, from technicians to engineers, supporting local economies and fostering a culture of innovation.
Government Initiatives and International Collaboration:
The government of Bangladesh has recognized the importance of solar energy and has taken commendable steps to promote its adoption. Initiatives like the “Solar Home System” program have already made a significant impact. Furthermore, collaboration with international partners and organizations can provide valuable expertise, technological advancements, and funding, further bolstering the country’s solar ambitions.
A Sustainable Future:
The potential of solar energy for Bangladesh is not merely a concept; it’s a pathway to a sustainable future. It’s a future where clean, reliable energy is accessible to all, where economic growth is intertwined with environmental stewardship, and where Bangladesh shines as a global leader in renewable energy adoption. As the nation harnesses the boundless power of the sun, it moves closer to realizing this future—a future that is not just bright but also resilient, inclusive, and sustainable for generations to come.
Energy Crisis:
Bangladesh is grappling with a persistent energy crisis, manifesting in the form of frequent power outages, inadequate access to electricity in rural areas, and an overall strain on the energy infrastructure. The intermittent power supply not only disrupts daily life for millions but also hampers economic activities, stifles industrial growth, and limits the potential for a better quality of life for its citizens.
The current energy crisis can be attributed to a combination of factors, including population growth, urbanization, increasing industrialization, inadequate energy generation capacity, transmission losses, and heavy reliance on fossil fuels. These challenges have led to a widening gap between energy demand and supply, creating a critical need for innovative and sustainable solutions.
Solar Power
Enter solar energy, a transformative source of power that has the potential to bridge this energy gap and alleviate the current crisis. Solar power offers several key advantages that make it an ideal solution:
Abundant Resource: Bangladesh, blessed with ample sunlight throughout the year, has the ideal conditions for harnessing solar energy. Solar panels, strategically deployed across the nation’s rooftops, open spaces, and even in rural communities, can tap into this abundant and free resource, providing a steady stream of renewable energy.
Decentralized Generation: Solar energy enables decentralized power generation. By placing solar panels on homes, businesses, and community facilities, Bangladesh can create a distributed energy network that reduces pressure on the centralized grid. This distributed model helps mitigate the strain on existing infrastructure, minimizes transmission losses, and reduces the likelihood of widespread power outages.
Rural Electrification: Solar energy holds significant potential for bringing electricity to rural areas that currently lack access to reliable power. Off-grid solar solutions, such as solar home systems and mini-grids, can provide these communities with a dependable and clean source of energy. This electrification enhances education, healthcare, and economic opportunities, fostering development and improving the overall quality of life.
Climate-Friendly: Solar power is environmentally friendly, producing no greenhouse gas emissions or harmful pollutants during operation. By transitioning to solar energy, Bangladesh can reduce its carbon footprint, contribute to global climate goals, and mitigate the impacts of climate change—a critical aspect considering the nation’s vulnerability to rising sea levels and extreme weather events.
Solar energy is not only a solution to the current energy crisis but also a catalyst for sustainable development, economic growth, and environmental protection in Bangladesh. By harnessing its abundant solar resources and implementing innovative solar solutions, the country can bridge the energy gap, enhance energy security, and pave the way for a brighter, cleaner, and more prosperous future for all its citizens.
Reducing Dependence on Fossil Fuels:
The transition from fossil fuels to clean and renewable energy sources, such as solar power, is of paramount importance in the quest for a sustainable and resilient future. This shift not only addresses the pressing challenges of climate change but also brings a multitude of positive impacts to the environment, public health, and economic prosperity.
First and foremost, clean and renewable energy sources like solar power significantly reduce carbon emissions, a primary driver of global warming and climate change. Fossil fuels, when burned for energy, release greenhouse gases, contributing to the warming of the planet. In contrast, solar power generates electricity without emitting harmful pollutants or greenhouse gases, making it a crucial component in global efforts to mitigate the impacts of climate change. By transitioning to solar energy, nations can substantially reduce their carbon footprint, play an active role in meeting international climate goals, and preserve the environment for future generations.
Furthermore, the adoption of solar power leads to improved air and water quality. Traditional fossil fuel-based energy production results in air pollution, releasing harmful particulates, sulfur dioxide, nitrogen oxides, and other pollutants. These pollutants have detrimental effects on human health, causing respiratory illnesses and other medical conditions. Solar power, being clean and emission-free, eliminates these harmful air pollutants, contributing to better public health outcomes and reducing the burden on healthcare systems.
Solar energy also presents a significant opportunity to minimize water consumption in energy production. Unlike fossil fuel power plants, solar panels do not require vast amounts of water for cooling purposes. This is especially crucial in regions facing water scarcity, where traditional energy production competes with essential water needs for agriculture, drinking, and sanitation.
Economically, the transition to solar power creates new job opportunities, stimulates local industries, and enhances energy security. The solar industry, spanning manufacturing, installation, maintenance, and research, employs a diverse workforce. As solar technology advances and becomes more affordable, the demand for skilled professionals in the sector grows, fostering economic growth and innovation. Moreover, reliance on domestic renewable energy sources like solar reduces a nation’s dependence on imported fossil fuels, enhancing energy security and insulating the economy from volatile global energy markets.
Transitioning from fossil fuels to clean and renewable energy sources, especially solar power, is a critical step towards a sustainable, low-carbon future. By reducing greenhouse gas emissions, improving air quality, conserving water resources, creating jobs, and bolstering energy security, solar energy offers a transformative solution with far-reaching positive impacts on the environment, public health, and the economy. As countries worldwide make this transition, they not only safeguard the planet but also reap the benefits of a cleaner, healthier, and more prosperous tomorrow.
Resilience to Natural Disasters:
Solar energy has the remarkable potential to provide decentralized and resilient energy solutions, particularly in areas that are susceptible to frequent cyclones and flooding, as is the case in many regions of Bangladesh. By harnessing the power of the sun, these communities can gain access to reliable, clean, and locally generated electricity, which offers several significant advantages:
Decentralized Generation: In disaster-prone regions, having a centralized energy grid makes the power supply vulnerable to disruptions from natural disasters. When traditional power sources fail due to damage to power lines or other infrastructure, entire communities can be left without electricity. Solar energy, however, allows for decentralized generation. By installing solar panels on homes, schools, hospitals, and other essential facilities, each unit becomes a mini power plant, reducing the reliance on a single point of failure and enhancing the overall resilience of the energy system.
Off-Grid Solutions: Solar energy systems can operate off-grid, which means they’re not dependent on a central power distribution network. In areas where the grid may be unreliable, such as during and after cyclones or flooding, off-grid solar systems continue to provide electricity. This ensures that critical services, such as emergency communication, medical facilities, and water pumping, remain operational even in the aftermath of a disaster, contributing to faster recovery and relief efforts.
Minimal Infrastructure Vulnerability: Traditional power infrastructure, including power lines and substations, is susceptible to damage during extreme weather events, such as cyclones and flooding. Solar panels, on the other hand, have minimal physical infrastructure that can be damaged. They are designed to withstand a range of weather conditions and can be easily secured or removed when a severe event is anticipated, reducing vulnerability.
Quick Deployment and Versatility: Solar energy systems can be rapidly deployed, making them a practical solution for disaster-prone areas. Portable solar panels, solar chargers, and solar-powered batteries can be used for emergency lighting, mobile charging, and powering essential equipment. Solar solutions are versatile and adaptable, making them invaluable during and after a disaster when access to energy is critical.
Sustainable Recovery: In the wake of a natural disaster, the traditional energy grid may take a long time to be fully restored, causing extended periods of disruption. Solar energy, however, can help expedite the recovery process. By providing immediate access to electricity, solar systems empower communities to start rebuilding, maintain communication, and engage in recovery activities without waiting for grid restoration.
Green Energy
In regions prone to cyclones and flooding, solar energy represents not just a source of power but a lifeline. By embracing decentralized and resilient solar solutions, communities can become more self-reliant, better prepared for disasters, and equipped to overcome the challenges posed by frequent natural events. Solar energy’s capacity to provide clean, accessible, and adaptable electricity in these areas contributes to a more resilient, sustainable, and disaster-ready future.
Government Initiatives:
The government’s policies, incentives, and initiatives play a crucial role in promoting the adoption of solar energy, especially in countries like Bangladesh, where the need for clean and sustainable energy solutions is pressing. One notable initiative in Bangladesh is the “Solar Home System” (SHS) program, which has been instrumental in driving solar energy adoption at the grassroots level. This program, launched in the early 1990s, aims to provide clean and affordable electricity to rural households that are not connected to the national grid.
Key Features of the Solar Home System Program:
Affordability: The SHS program makes solar energy affordable for rural households by offering financing options and subsidies. Families can pay for the solar system in installments, making it accessible to low-income communities.
Community-Based Distribution: The program involves local entrepreneurs who distribute, install, and maintain solar home systems. This not only generates local employment but also ensures that users have access to timely support and maintenance.
Improved Quality of Life: By providing electricity to households that previously relied on kerosene lamps or had no access to electricity at all, the program significantly improves the quality of life. It enables better lighting for studying, extended productive hours, access to information through radios and mobile phones, and refrigeration for storing perishable goods.
Environmental Benefits: The widespread adoption of solar home systems helps reduce the reliance on traditional fuels, such as kerosene, which emit harmful pollutants and contribute to indoor air pollution. This has positive implications for public health and the environment.
Government Support: The Bangladeshi government, along with support from various development organizations and partnerships, has played a vital role in the expansion of the SHS program. Financial incentives, subsidies, and policy support have been instrumental in its success.
Scale and Impact: The SHS program in Bangladesh has achieved significant scale, with millions of solar home systems installed across rural areas. This has made a substantial impact on rural electrification, demonstrating the potential of solar energy to address energy access challenges.
Beyond the Solar Home System program, the Bangladeshi government has taken steps to promote renewable energy adoption on a larger scale. It has set ambitious renewable energy targets, established feed-in tariffs for solar power, and introduced policies to encourage private investment in the sector. These efforts align with the country’s commitment to achieving sustainable development goals and reducing greenhouse gas emissions.
The government’s policies, incentives, and initiatives, such as the Solar Home System program, have been pivotal in driving solar energy adoption in Bangladesh. They have not only expanded access to clean electricity but have also created economic opportunities, improved environmental conditions, and paved the way for a more sustainable energy future for the nation.
Off-grid Solutions:
Off-grid solar installations hold tremendous potential, especially in remote or off-the-grid areas, to revolutionize the lives of rural communities. These installations provide clean, reliable, and decentralized energy solutions that can address multiple challenges faced by rural regions, leading to significant improvements in various aspects of life:
Electrification: Off-grid solar systems bring much-needed electricity to communities that lack access to the national grid. This electrification has a transformative impact, providing households with lighting, powering appliances, and enabling children to study in the evenings, thereby extending productive hours and improving overall quality of life.
Education: Access to electricity from off-grid solar systems enhances educational opportunities. Children can study at night, schools can operate effectively, and educational resources, such as computers and projectors, can be used, improving the quality of education in rural areas.
Healthcare: Off-grid solar installations can power healthcare facilities, ensuring uninterrupted services. Refrigeration for vaccines and medical supplies, lighting for surgeries, and the ability to charge essential medical equipment all contribute to better healthcare access and outcomes in rural communities.
Economic Development: Reliable energy enables small businesses to operate, such as charging stations for mobile phones, refrigeration for small shops, and workshops for craftspeople. These economic activities empower rural communities, create job opportunities, and stimulate local economies.
Clean Energy Transition: Off-grid solar installations reduce reliance on traditional fuels like kerosene or diesel generators, which can be expensive and harmful to health and the environment. The transition to clean energy has direct health benefits, improving indoor air quality and reducing the risk of respiratory illnesses.
Resilience to Disasters: In areas prone to frequent power outages or natural disasters, off-grid solar systems provide resilience. When the main power grid fails, these systems continue to provide electricity, supporting emergency communication, maintaining essential services, and aiding disaster response efforts.
Reduced Energy Poverty: Off-grid solar empowers rural communities to lift themselves out of energy poverty. By giving them the tools to generate their electricity, communities become more self-reliant, less dependent on centralized energy sources, and better equipped to meet their energy needs sustainably.
Environmental Benefits: Off-grid solar installations generate clean energy from a renewable source, reducing carbon emissions and contributing to a more sustainable energy future. This environmental benefit is particularly valuable in rural areas, where ecosystems and natural resources are essential to livelihoods.
Off-grid solar installations have the potential to bring about a holistic transformation in the lives of rural communities. They provide essential services, improve education and healthcare, stimulate economic growth, enhance resilience, and contribute to a cleaner environment. As the technology becomes more accessible and affordable, the impact of off-grid solar on rural development continues to expand, offering a pathway to a brighter and more sustainable future for those who need it most.
Solar Industry Growth:
The solar industry in Bangladesh holds significant untapped potential, capable of driving job creation and stimulating robust economic growth. As the nation recognizes the urgency of transitioning to clean and sustainable energy sources, solar power emerges as a key player, offering numerous opportunities for both skilled and unskilled labor across various sectors:
Solar Installations and Maintenance: The expansion of solar energy infrastructure requires a skilled workforce to install, maintain, and service solar panels, inverters, and associated equipment. Electricians, technicians, and engineers are in high demand to ensure the efficient operation of solar systems.
Research and Development: Investing in solar technology research and development can lead to innovations in efficiency, storage, and system integration. This research not only drives technological advancement but also creates job opportunities for scientists, engineers, and researchers.
Manufacturing: As the demand for solar panels and related components increases, Bangladesh has the potential to establish a vibrant solar manufacturing industry. This includes the production of solar cells, panels, batteries, and other essential equipment, leading to new factories and job openings in manufacturing and assembly lines.
Sales and Distribution: The solar industry requires a network of professionals to market, distribute, and sell solar products and services. This includes salespeople, distributors, and dealers who can reach both urban and rural markets, ensuring the widespread adoption of solar technology.
Solar Entrepreneurship: The growth of the solar industry creates an environment conducive to entrepreneurial ventures. Individuals and small businesses can enter the market by establishing solar installation and maintenance services, solar-powered product stores, or even designing innovative solar applications for local needs.
Training and Education: A skilled workforce is essential for the sustainable growth of the solar industry. Vocational training programs and educational institutions can offer courses on solar technology, creating a pool of skilled workers and technicians ready to meet the industry’s demands.
Ancillary Services: The solar industry generates opportunities in supporting services such as financing, insurance, quality control, and project management. These services are essential for the efficient deployment and operation of solar projects.
The growth of the solar industry not only generates direct job opportunities but also has a multiplier effect on the economy. It stimulates demand in related sectors, such as manufacturing, construction, logistics, and research, thereby creating a ripple effect of economic activity. Additionally, solar energy reduces the country’s dependence on expensive imported fossil fuels, resulting in cost savings for both consumers and industries, which can be reinvested into other sectors of the economy.
Furthermore, the solar industry aligns with the global trend towards sustainable development, making Bangladesh an attractive destination for international investments, collaborations, and partnerships in renewable energy projects.
The growth of the solar industry in Bangladesh has the potential to foster a thriving job market, stimulate economic growth, and position the nation as a leader in sustainable energy. By investing in solar infrastructure, promoting innovation, and fostering a skilled workforce, Bangladesh can harness the full benefits of this dynamic and rapidly expanding sector while addressing pressing energy and environmental challenges.
Clean Energy
Solar Innovations:
Local innovations in Bangladesh are harnessing the power of solar energy to address critical challenges and improve various aspects of daily life. These innovative applications leverage solar power’s accessibility and sustainability, providing solutions that benefit communities, especially in rural and off-grid areas. Here are a few notable examples:
Solar-Powered Water Pumps for Agriculture: Agriculture is the backbone of Bangladesh’s economy, and water availability is crucial for successful crop cultivation. In many rural areas, access to reliable electricity for traditional water pumps is limited. Solar-powered water pumps offer a game-changing solution. These pumps use solar energy to draw water from wells or other sources, providing a consistent and cost-effective irrigation method. By reducing dependence on fossil fuels and grid-based electricity, these pumps contribute to sustainable agriculture, higher crop yields, and increased farm incomes.
Solar-Powered Mobile Charging Stations: In a country with a significant mobile phone penetration rate, access to charging facilities is essential, particularly in areas with unreliable or no grid power. Solar-powered mobile charging stations, often set up in local shops or community centers, provide a lifeline for keeping phones charged, enabling communication, access to information, and mobile banking services. These charging stations bridge the digital divide in remote communities and enhance connectivity.
Solar-Powered Home Lighting Systems: Solar home systems (SHS) have been a transformative innovation in Bangladesh, as mentioned earlier. These systems provide affordable and reliable lighting for rural households that are not connected to the national grid. They typically include solar panels, batteries, and LED lights. SHS are essential for extending productive hours, enabling children to study at night, reducing dependence on kerosene lamps, and improving overall living conditions.
Solar Dryers for Agriculture: In the agricultural sector, solar dryers have gained popularity for preserving and drying crops such as fruits, vegetables, and fish. These solar-powered devices use the sun’s energy to remove moisture from produce, allowing farmers to extend shelf life, reduce post-harvest losses, and fetch better prices for their products in the market.
Solar-Powered Community Water Purification Systems: Access to clean drinking water is a vital issue in many parts of Bangladesh. Solar-powered community water purification systems use solar energy to power water purification processes, ensuring that communities have access to safe and clean drinking water. These systems are particularly beneficial in areas prone to contamination and where traditional purification methods are challenging to implement.
Solar-Powered Electric Rickshaws (E-Rickshaws): As a sustainable alternative to traditional cycle rickshaws, solar-powered electric rickshaws, or “E-Rickshaws,” are gaining popularity in urban and peri-urban areas. These vehicles are equipped with a small solar panel on the roof, providing power for the electric motor. E-Rickshaws offer an environmentally friendly transportation option while reducing the physical strain on rickshaw pullers.
These local innovations showcase Bangladesh’s ability to adapt solar energy to meet diverse needs, improving livelihoods, enhancing economic opportunities, and contributing to a more sustainable future. By nurturing such innovative solutions, Bangladesh can further leverage its solar potential to address critical challenges and drive positive change.
Community Engagement:
Community-based solar projects hold immense potential in Bangladesh, fostering energy self-sufficiency, promoting local participation, and contributing to sustainable development. These projects empower communities to take charge of their energy needs, creating a sense of ownership and shared benefits. Here’s how community-based solar initiatives work and their impact in Bangladesh:
Shared Investment and Ownership: In community-based solar projects, local residents come together to pool their resources, both financial and human, to install solar energy systems. By sharing the investment, the financial burden on individual households is reduced, making solar technology more accessible.
Energy Access for All: One of the primary objectives of these projects is to provide energy access to those who need it most, particularly in off-grid or underserved areas. Community members collectively decide where the solar systems should be installed, ensuring that the energy benefits reach every corner of the community, including schools, health centers, and communal spaces.
Income Generation and Cost Savings: Community-based solar projects often generate excess energy, which can be sold back to the grid or used to power income-generating activities. This revenue stream benefits the community, helping to fund maintenance, expand the project, or provide financial support to local initiatives.
Enhanced Resilience: In areas prone to power outages, especially during natural disasters, community-based solar projects provide resilience. When the main power grid fails, these systems continue to supply electricity to essential services, such as emergency lighting, communication, and refrigeration, supporting disaster response efforts and community resilience.
Skill Development and Empowerment: These projects offer opportunities for local training, skill development, and job creation. Community members can be trained to install, operate, and maintain the solar systems, creating local employment and fostering a sense of empowerment.
Environmental Benefits: By transitioning to solar energy, communities reduce their reliance on fossil fuels, leading to lower carbon emissions and contributing to a cleaner environment. This aligns with global sustainability goals and local efforts to combat climate change.
Social Cohesion and Community Development: Participation in community-based solar projects builds social cohesion, as residents collaborate on a shared goal. This collaboration can extend beyond the immediate energy benefits, leading to broader community development initiatives and a stronger sense of community identity.
Government Support and Partnerships: The Bangladeshi government recognizes the importance of community-based solar projects in rural electrification and sustainable development. Supportive policies, financial incentives, and partnerships with local NGOs, international organizations, or private sector entities can catalyze the growth of such initiatives.
In Bangladesh, where close-knit communities are prevalent, these projects align perfectly with the country’s social fabric. They not only address energy access challenges but also empower communities to take charge of their energy future, stimulate local economies, and contribute to a more sustainable and resilient society. By fostering a sense of shared responsibility and reaping the benefits of solar energy together, community-based solar projects play a vital role in shaping a brighter future for Bangladesh.
Future Outlook:
The increased adoption of solar energy presents a transformative opportunity for Bangladesh, offering a path towards sustainable development, enhanced energy security, and a significantly reduced carbon footprint. This positive outlook holds the promise of creating a brighter future for the nation and its citizens in several key aspects:
Sustainable Development: Solar energy aligns perfectly with Bangladesh’s pursuit of sustainable development. By harnessing the abundant solar potential, the nation can provide clean, reliable, and affordable electricity to all, regardless of geographic location or income level. This electrification fosters economic growth, improves healthcare and education, empowers rural communities, and bridges the urban-rural divide. Solar-powered water pumps, agricultural innovations, and off-grid solutions empower local economies and create jobs, driving self-sufficiency and prosperity.
Energy Security: Solar energy contributes significantly to energy security by diversifying the energy mix and reducing dependence on imported fossil fuels. Bangladesh, with its ample sunlight, can generate a substantial portion of its energy domestically, mitigating the vulnerabilities associated with fluctuating oil prices and geopolitical uncertainties. The decentralized nature of solar installations, especially in off-grid or disaster-prone areas, enhances the resilience of the energy system, ensuring continuity in critical services during times of disruptions.
Reduced Carbon Footprint: Embracing solar energy helps Bangladesh make substantial strides in reducing its carbon footprint and combating climate change. The transition away from fossil fuels leads to a significant reduction in greenhouse gas emissions, contributing to global climate goals. As the world grapples with the impacts of rising temperatures and environmental degradation, Bangladesh’s commitment to clean energy sets a positive example, positioning the country as a responsible global citizen in the fight against climate change.
Technological Innovation: The increased adoption of solar energy fosters innovation and technological advancements. As the solar industry grows, research and development efforts flourish, leading to improved solar efficiency, energy storage solutions, and smart grid integration. This culture of innovation not only benefits the energy sector but also spills over into other industries, driving economic competitiveness and elevating Bangladesh’s technological standing on the global stage.
International Collaboration and Investment: The commitment to solar energy opens doors for international collaboration and investment. Bangladesh’s pursuit of sustainable energy solutions attracts partnerships with global organizations, multilateral development banks, and foreign investors interested in supporting the country’s energy transition. These collaborations bring expertise, funding, and technological know-how, accelerating the deployment of solar projects and amplifying their impact.
The increased adoption of solar energy holds immense promise for Bangladesh. It is not just a means of generating electricity; it is a catalyst for sustainable development, energy security, and environmental stewardship. By embracing this clean, abundant, and accessible resource, Bangladesh can shape a prosperous future, where its citizens thrive, the nation leads by example, and a sustainable legacy is secured for generations to come.
Harnessing Solar Energy: A Bright Future for Bangladesh: Harnessing Solar Energy: A Bright Future for Bangladesh
*Author’s Short Profile:
Md. Joynal Abdin
Mr. Md. Joynal Abdin is a Business Consultant & Digital Marketer based in Dhaka, Bangladesh. He is also Co-Founder & CEO of Bangladesh Trade Center. Previously he served at Dhaka Chamber of Commerce & Industry (DCCI) as Executive Secretary; DCCI Business Institute (DBI) as Executive Director; SME Foundation as Deputy Manager; and the Federation of Bangladesh Chambers of Commerce & Industry (FBCCI) as Assistant Secretary.
The list of services Mr. Abdin is offering includes but not limited to Business Research and Documentations like Feasibility Study, Project Proposal Preparation, Writing Business Manual, Standard Operating Procedures etc.; Export Market Selection and Product Positioning at Home and Abroad; Buyers-Sellers Matchmaking; Website Development; Search Engine Optimization (SEO); and Social Media Marketing etc.
Harnessing Solar Energy: A Bright Future for Bangladesh: Harnessing Solar Energy: A Bright Future for Bangladesh
Leading Pharmaceutical Consultant and Editor-in-Chief of IJM Today
Breast cancer remains one of the most prevalent and concerning health issues affecting women worldwide. While genetics and other factors contribute to its development, adopting a proactive approach to self-care can significantly reduce the risk of breast cancer. By incorporating healthy lifestyle habits and self-awareness, women can take control of their well-being and potentially prevent this devastating disease. This article emphasizes the importance of self-care as a crucial strategy for breast cancer prevention.
Maintaining a Healthy Weight
One of the critical factors in breast cancer prevention is maintaining a healthy weight. Studies have shown a clear link between obesity and an increased risk of developing breast cancer, particularly in postmenopausal women. Individuals can manage their weight effectively by adopting a balanced diet and engaging in regular physical activity. Focus on consuming various fruits, vegetables, whole grains, and lean proteins while limiting the intake of processed foods and sugary beverages. Regular exercise, such as brisk walking, cycling, or swimming, helps with weight management and reduces overall cancer risk.
Physical Activity and Exercise
Regular physical activity is essential for weight management and directly contributes to reducing the risk of breast cancer. Engaging in moderate to vigorous exercise for at least 150 minutes per week has lowered the risk of developing breast cancer by approximately 10-20%. Exercise helps regulate hormone levels, strengthen the immune system, and improve overall well-being. Find activities you enjoy, whether dancing, yoga, hiking, or playing a sport, and make them a regular part of your routine.
Healthy Dietary Choices
A healthy diet is vital in maintaining overall health, including breast cancer prevention. Research suggests that a diet rich in fruits, vegetables, whole grains, and lean proteins, while low in saturated fats and processed foods, can reduce the risk of breast cancer. Incorporate foods with anti-cancer properties, such as cruciferous vegetables (broccoli, cauliflower), berries, green tea, and turmeric, into your meals. Additionally, limit alcohol consumption, as excessive alcohol intake has been linked to an increased risk of breast cancer. It is recommended to consume alcohol in moderation or avoid it altogether.
Self-Care to Prevent Breast Cancer
Breast Self-Examination and Regular Check-ups
Self-awareness and early detection are crucial in combating breast cancer. Perform regular breast self-examinations to familiarize yourself with your breasts’ everyday look and feel. By doing this monthly, you can quickly identify any changes or abnormalities and seek medical attention promptly. As healthcare professionals recommend, scheduling regular check-ups and mammograms is essential. These screenings can detect any potential signs of breast cancer in its early stages when treatment is most effective.
Stress Management and Mental Well-being
Taking care of your mental health is equally vital in reducing the risk of breast cancer. Chronic stress and emotional distress can weaken the immune system, making the body more susceptible to various diseases, including cancer. Incorporate stress-management techniques into your daily routine, such as practicing mindfulness, engaging in hobbies, spending time with loved ones, and seeking support when needed. Prioritizing self-care activities that promote relaxation and well-being can significantly impact your overall health.
How does nutraceutical help in combating breast cancer?
Nutraceuticals, which refer to bioactive compounds found in foods or supplements with potential health benefits, have gained attention for their role in supporting overall health and potentially combating breast cancer. While it’s important to note that nutraceuticals should not replace conventional medical treatments, they can be considered complementary approaches to promote wellness and potentially reduce the risk of breast cancer.
Here are some ways in which nutraceuticals may contribute to combating breast cancer:
Antioxidant Protection: Nutraceuticals rich in antioxidants, such as vitamins A, C, and E, as well as selenium and flavonoids, help combat oxidative stress in the body. Oxidative stress is known to contribute to cancer development by damaging DNA and promoting cell mutations. By neutralizing harmful free radicals, antioxidants may help reduce the risk of breast cancer.
Anti-Inflammatory Properties: Chronic inflammation has been linked to the development and progression of various cancers, including breast cancer. Nutraceuticals with anti-inflammatory properties, such as omega-3 fatty acids, curcumin, resveratrol, and green tea catechins, may help suppress inflammation and potentially inhibit the growth of cancer cells.
Hormone Regulation: Hormonal imbalances, and exceptionally high estrogen levels, are associated with an increased risk of hormone receptor-positive breast cancer. Specific nutraceuticals, such as phytoestrogens found in soy products, flaxseeds, and red clover, have been studied for their potential to modulate estrogen activity in the body. Phytoestrogens may help regulate hormonal balance and reduce the risk of hormone-related breast cancers by acting as weak estrogen mimics or blockers.
Immune System Support: A healthy immune system plays a crucial role in identifying and eliminating cancerous cells. Nutraceuticals like medicinal mushrooms (e.g., Reishi, Shiitake) and beta-glucans have been studied for their immune-enhancing properties. They may help strengthen immune function, activate immune cells, and support the body’s natural defense mechanisms against cancer cells.
Anti-Angiogenic Effects: Tumor growth relies on forming new blood vessels (angiogenesis) to supply nutrients and oxygen. Specific nutraceuticals, such as green tea catechins, resveratrol, and curcumin, have shown potential anti-angiogenic effects. These compounds may inhibit the growth of blood vessels within tumors, thereby impeding their progression.
Self-Care to Prevent Breast Cancer
It’s important to remember that nutraceuticals should be approached with caution, as their effectiveness may vary, and individual responses can differ. It is advisable to consult with a healthcare professional or registered dietitian before incorporating nutraceuticals into your routine, especially if you have an existing medical condition or are undergoing cancer treatment. They can provide personalized guidance based on your specific needs and ensure that any potential interactions or contraindications are considered.
Ultimately, a well-rounded approach to breast cancer prevention and management includes a healthy lifestyle, regular medical screenings, and a balanced diet of whole foods rich in essential nutrients. Nutraceuticals may be an additional tool in this comprehensive strategy but should not replace standard medical care.
To conclude, Breast cancer prevention is a multifaceted approach that involves a combination of healthy lifestyle choices and self-awareness. By prioritizing self-care, women can reduce their risk of developing breast cancer and enhance their overall well-being. Maintaining a healthy weight, engaging in regular physical activity, making healthy dietary choices, practicing breast self-examination, and managing stress are all crucial components of this preventive strategy. By taking control of their health and adopting a proactive approach, women can empower themselves in the fight against breast cancer. Remember, your well-being is in your hands, so prioritize self-care starting today.
Self-Care to Prevent Breast Cancer: Self-Care to Prevent Breast Cancer: Self-Care to Prevent Breast Cancer
*Short Profile of the Author:
Dr. Sanjay Agrawal
Dr. Sanjay Agrawal is a leading Independent Researcher, Pharmaceutical consultant, and patent holder of more than 42 formulations. He has actively worked in pharmaceutical and related industries for more than 35 years and started his firm Pharmaceutical Consultants and Inventor in 2005. Skilled in formulation development of Solid orals, liquids, multi-particulars, nutraceuticals, and food products. Developed and commercialized novel, adaptable, and patentable platform technologies for various dosage forms. Dr. Agrawal completed his post-graduation in Biochemistry, Post Graduate Diploma in Yoga and Naturopathy from Global Institute of Health & Management-Delhi, and MBA in marketing from IMT.
He is the Founder of Indian Academics of Pharmaceutical Research. He is the Editor-in-Chief of the renowned IJM Today and an honorable member of the editorial board of The Antiseptic and Qual Pharma Magazine. He has published more than 300 papers in reputed national and international Publications. He is appointed as an Independent Non-Executive Director of Sudarshan Pharma Industries Limited.
Self-Care to Prevent Breast Cancer: Self-Care to Prevent Breast Cancer: Self-Care to Prevent Breast Cancer
Prospects of Bangladesh Pharmaceutical Industry: A Flourishing Sector with Global Potential
Dr. Sanjay Agrawal*
Leading Pharmaceutical Consultant and Editor-in-Chief of IJM Today
The pharmaceutical industry is vital in improving healthcare outcomes and driving economic growth. Bangladesh’s pharmaceutical sector has experienced remarkable growth over the past few decades, earning recognition at home and abroad. With a solid foundation in generic drug manufacturing, the country has become a significant player in the global pharmaceutical market. In this article, we will explore the prospects of the Bangladesh pharma industry and examine the factors contributing to its success.
Bangladesh Pharmaceutical Industry
The pharmaceutical industry in Bangladesh embarked on its journey in the 1950s with a mix of multinational corporations (MNCs) and local firms. Following the country’s independence in 1971, Bangladesh, as a least-developed nation, obtained a patent exemption for the pharmaceutical industry under the British Patents and Designs Act of 1911. This exemption led to an increase in the production of generic medicines within the country. However, the industry’s significant growth began in the 1980s.
By 1981, there were 166 licensed pharmaceutical factories in Bangladesh. At that time, the country’s pharmaceutical production was dominated by eight multinational companies, such as Glaxo, Pfizer, and Hoechst, which supplied 75% of the country’s medicine. Meanwhile, 25 medium-sized domestic pharmaceutical companies accounted for 15% of the production, with the remaining 10% manufactured by 133 companies. These companies relied on imported raw materials worth BDT 60 crore annually to produce medicines locally. Despite having 16 local pharmaceutical companies, the country still imports medicines worth BDT 30 crore from abroad every year.
The pharmaceutical value chain in Bangladesh is divided into two primary sectors: Active Pharmaceutical Ingredients (API) and Finished Formulation. API refers to medicines containing specific active ingredients for targeted diseases, while Finished Formulation involves the preparation of medications by blending various chemicals with active ingredients.
In March 1982, the government formed an expert committee to develop a drug policy encompassing the formulation and API sectors.
However, at that time, the government only implemented the Drugs (Control) Ordinance for the formulation sector, while two additional regulations were introduced in June. One rule aimed to ban the production, import, and sale of unnecessary and harmful drugs, while the other prohibited the products of MNCs that lacked manufacturing plants in the country. Despite pressure from the US government, Bangladesh did not repeal these regulations. As a result, approximately 1700 out of 4340 registered medicines were banned and removed from the market, allowing MNCs to reorganize their operations, albeit leading to the closure of specific organizations such as Squibb.
In 1995 Bangladesh signed the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement with the World Trade Organization. As one of the least developed countries, Bangladesh was granted the privilege of manufacturing and marketing medicines without patent restrictions. This facilitated the production of medicines at lower costs, significantly reducing prices at the consumer level—an essential aspect for the healthcare sector in an underdeveloped country like Bangladesh. Initially valid until 2005, the TRIPS agreement was extended to 2016 and subsequently prolonged until 2033, fostering the growth of the country’s pharmaceutical industry.
Revenue Growth Drivers
The pharmaceutical industry in Bangladesh experiences revenue growth driven by various factors, including domestic sales and exports. The following reasons contribute to the current revenue growth of the pharmaceutical industry in Bangladesh:
Prospects of Bangladesh Pharmaceutical Industry: A Flourishing Sector with Global Potential
Economic Growth
With a population exceeding 166 million, Bangladesh is experiencing steady population growth at an average rate of 1.1 percent annually. Furthermore, according to The Business Standard, Bangladesh has over 37 million middle-class families, accounting for approximately 22 percent of the total population. This middle-class segment is continuously expanding. In the fiscal year 2020-21, Bangladesh’s per capita income rose 8 percent compared to the previous year, reaching $2,227. The growth in the number of middle and upper-class Bangladeshis, coupled with the overall increase in the country’s consumption, has led to a rise in healthcare expenses for its citizens.
Health Awareness
As income levels increase, Bangladesh’s urban and rural populations have become more health-conscious. With medical and pharmaceutical companies’ adoption of modern technology, people in the country are paying closer attention to proper nutrition, protein intake, healthy eating habits, and the avoidance of pollutants. Additionally, the average life expectancy of Bangladeshis has increased significantly. According to the Bangladesh Bureau of Statistics, the average life expectancy in the country rose from 66.4 years in 2002 to 72.6 years in 2020. The growing awareness among the population and the advancements in the pharmaceutical sector has played a crucial role in this increase in life expectancy.
Exports
Bangladesh has witnessed a significant expansion in pharmaceutical exports. According to the Bangladesh Association of Pharmaceutical Industries (BAPI), more than 1,200 pharmaceutical products have been registered for export in the country over the past two years. In the fiscal year 2018-19, Bangladesh exported to 147 countries, including Myanmar, Sri Lanka, the Philippines, Vietnam, Afghanistan, Kenya, and Slovenia, accounting for 60.32 percent of the exports.
The remaining 39.6 percent was directed towards developed countries such as the US, Canada, Germany, and Australia. In FY 2018-19, the value of medicine exports reached $130 million, which increased to $136 million in FY 2019-20. From 2014-15 to 2019-20, Bangladesh’s pharmaceutical exports doubled at an average annual growth rate of approximately 12 percent. Research and Markets state that Bangladesh’s pharmaceutical exports are projected to reach $450 million by 2025.
Growing Domestic Market
One of the key factors driving the prospects of the Bangladesh pharma industry is the country’s growing domestic market. With a population exceeding 165 million, the demand for quality healthcare products and services is rising. As the middle class expands and access to healthcare improves, the demand for pharmaceuticals is expected to increase further. This presents a significant opportunity for local pharmaceutical companies to cater to the needs of the domestic market.
Low-cost Manufacturing and Competitive Advantage
Bangladesh has emerged as a cost-effective manufacturing hub for pharmaceutical products. The availability of skilled labor, low production costs, and a favorable regulatory environment have contributed to the country’s competitive advantage in the global pharmaceutical market. Local manufacturers can produce high-quality generic drugs at significantly lower costs than their counterparts in other countries. This cost advantage enables Bangladesh to export pharmaceutical products to various markets worldwide, including developed countries.
Export Potential and International Recognition
The Bangladesh pharma industry has witnessed substantial growth in its export potential. Local pharmaceutical companies have been recognized for complying with international quality standards and regulations. Many Bangladeshi manufacturers have obtained certifications from prestigious regulatory authorities such as the US Food and Drug Administration (FDA), the European Medicines Agency (EMA), and the World Health Organization (WHO). These certifications have opened doors to export opportunities in markets across Asia, Africa, and Latin America, establishing Bangladesh as a reliable source of quality pharmaceutical products.
Investment in Research and Development
Bangladesh has been increasing its investment in research and development (R&D) to enhance the pharma industry’s prospects further. Pharmaceutical companies are allocating resources to develop new drug formulations, improve manufacturing processes, and enhance product quality. Collaborations between local pharmaceutical companies and academic institutions foster innovation and knowledge-sharing. Such R&D investments contribute to developing new drugs, treatment protocols, and advanced healthcare technologies, enabling the industry to expand its offerings and cater to a broader range of medical needs.
Government Support and Policy Reforms
The Bangladesh government has recognized the importance of the pharmaceutical sector as a significant contributor to the national economy. The government has recently implemented several policy reforms to foster the industry’s growth. These reforms include streamlining regulatory processes, strengthening intellectual property rights, and encouraging public-private partnerships. Moreover, the government has provided various incentives to attract foreign investment in the pharmaceutical sector, such as tax breaks, infrastructure development, and simplified business procedures. This supportive environment has created a conducive industry growth and development ecosystem.
Prospects of Bangladesh Pharmaceutical Industry: A Flourishing Sector with Global Potential
Conclusion
The revenue growth of the pharmaceutical industry in Bangladesh is driven by factors such as the country’s economic growth, increasing health awareness among the population, and the expansion of pharmaceutical exports. The growing middle class, rising per capita income and increased consumption contribute to the higher demand for healthcare products and services. Moreover, the emphasis on health and well-being, along with the advancements in the pharmaceutical sector, has led to a longer life expectancy in the country. The pharmaceutical industry’s focus on export markets further boosts revenue growth, with Bangladesh becoming a significant player in supplying medicines to various countries. With a positive trajectory and supportive market conditions, the pharmaceutical industry in Bangladesh is well-positioned for continued growth in the coming years.
The prospects of the Bangladesh pharma industry are bright and promising. With a growing domestic market, cost-effective manufacturing capabilities, international recognition, and increased investment in R&D, the industry is well-positioned to expand its global footprint. The government’s support and policy reforms have played a significant role in creating an enabling environment for the sector to thrive. As the demand for pharmaceutical products continues to rise globally, Bangladesh’s pharma industry is poised to become a key player in meeting the growing healthcare needs of people worldwide while contributing to the country’s economic growth and development.
Prospects of Bangladesh Pharmaceutical Industry: A Flourishing Sector with Global Potential: Prospects of Bangladesh Pharmaceutical Industry: A Flourishing Sector with Global Potential
*Short Profile of the Author:
Dr. Sanjay Agrawal
Dr. Sanjay Agrawal is a leading Independent Researcher, Pharmaceutical consultant, and patent holder of more than 42 formulations. He has actively worked in pharmaceutical and related industries for more than 35 years and started his firm Pharmaceutical Consultants and Inventor in 2005. Skilled in formulation development of Solid orals, liquids, multi-particulars, nutraceuticals, and food products. Developed and commercialized novel, adaptable, and patentable platform technologies for various dosage forms. Dr. Agrawal completed his post-graduation in Biochemistry, Post Graduate Diploma in Yoga and Naturopathy from Global Institute of Health & Management-Delhi, and MBA in marketing from IMT.
He is the Founder of Indian Academics of Pharmaceutical Research. He is the Editor-in-Chief of the renowned IJM Today and an honorable member of the editorial board of The Antiseptic and Qual Pharma Magazine. He has published more than 300 papers in reputed national and international Publications. He is appointed as an Independent Non-Executive Director of Sudarshan Pharma Industries Limited.
Prospects of Bangladesh Pharmaceutical Industry: A Flourishing Sector with Global Potential: Prospects of Bangladesh Pharmaceutical Industry: A Flourishing Sector with Global Potential
E-commerce, short for electronic commerce, refers to the buying and selling of goods, services, and information over the internet. It involves commercial transactions conducted electronically between businesses, consumers, or any other entities. It has revolutionized the way business is conducted, enabling seamless online transactions and creating new opportunities for businesses to reach a global audience. It encompasses a wide range of activities, from online retailing and digital marketplaces to online auctions, electronic payments, and digital content distribution.
Key Features:
E-commerce platforms come with a set of essential features that facilitate online buying and selling processes. These features are designed to enhance user experience, provide secure transactions, and streamline business operations. Here are the key features of e-commerce:
Online Catalog and Product Display: E-commerce platforms enable businesses to showcase their products or services in an online catalog. Detailed product descriptions, high-quality images, and product categorization help customers browse and find the items they are looking for easily.
Shopping Cart: The shopping cart feature allows customers to add products to their cart while continuing to browse the website. It provides a summary of the selected items and their quantities, allowing customers to review and edit their order before proceeding to checkout.
Secure Payment Processing: E-commerce platforms incorporate secure payment gateways to process online transactions. SSL encryption and PCI compliance ensure that customer payment information is protected during the payment process.
User Accounts and Profiles: E-commerce websites offer customers the option to create user accounts and profiles. Registered users can save their personal information, track order history, and receive personalized recommendations and offers.
Order Management: E-commerce platforms facilitate order management for businesses. Administrators can view, process, and fulfill orders, update order status, and manage inventory in real-time.
Shipping and Delivery Options: E-commerce websites provide customers with various shipping and delivery options, including standard shipping, express shipping, and in-store pickup. Integration with third-party shipping carriers ensures accurate shipping rates and tracking information.
Customer Reviews and Ratings: E-commerce platforms allow customers to leave product reviews and ratings, helping potential buyers make informed decisions. Positive reviews and high ratings can build trust and credibility for the products and the business.
Wishlist and Favorites: The wishlist feature enables customers to save items they are interested in for future purchase. It helps increase customer engagement and encourages repeat visits to the website.
Search and Filter Functionality: Robust search and filtering capabilities make it easy for customers to find specific products based on keywords, categories, price ranges, and other criteria.
Responsive Design: E-commerce websites are designed with responsive layouts to ensure a seamless user experience across various devices, including desktops, laptops, tablets, and smartphones.
Customer Support and Live Chat: E-commerce platforms often integrate customer support features, including live chat, email support, and help centers, to assist customers with inquiries and issues.
Integration with Payment Gateways: E-commerce platforms integrate with various payment gateways to accept multiple payment methods, such as credit cards, debit cards, digital wallets, and online banking.
SEO-Friendly Architecture: E-commerce websites are designed with SEO best practices in mind, making them search engine-friendly. This ensures better visibility in search engine results and drives organic traffic.
Sales and Promotions: E-commerce platforms support the implementation of discounts, coupon codes, and promotional offers to attract customers and increase sales.
Analytics and Reporting: E-commerce platforms provide built-in analytics and reporting tools to track key performance metrics, customer behavior, and sales trends. This data helps businesses make data-driven decisions and optimize marketing strategies.
Multi-Language and Multi-Currency Support: E-commerce platforms with international reach offer multi-language and multi-currency support to cater to diverse global audiences.
Integration with Social Media: E-commerce websites often integrate with social media platforms, enabling customers to share products and purchase directly from social media posts.
These key features contribute to a seamless and efficient online shopping experience for customers while providing businesses with the tools they need to manage their online operations effectively. As it continues to evolve, innovative features and technologies are continuously introduced to enhance the online shopping experience further.
Types of E-commerce:
It can be broadly categorized into several types based on the parties involved, the nature of transactions, and the platforms used. The main classifications are:
Business-to-Consumer (B2C) E-commerce: B2C e-commerce refers to transactions conducted between businesses and individual consumers. In this model, businesses sell their products or services directly to end consumers through online platforms or websites. It is the most common form of e-commerce and is widely used by retailers to reach a broad customer base. Popular examples of B2C e-commerce include online retail stores like Amazon, Walmart, and Apple’s online store.
Business-to-Business (B2B) E-commerce: B2B e-commerce involves transactions between businesses, where one business sells products or services to another business. It is prevalent in the supply chain and procurement processes, where businesses purchase raw materials, equipment, or services from suppliers or wholesalers. B2B e-commerce platforms streamline the buying and selling process for businesses, making it more efficient and cost-effective. Examples of B2B e-commerce platforms include Alibaba, ThomasNet, and TradeIndia.
Consumer-to-Consumer (C2C) E-commerce: C2C e-commerce facilitates direct transactions between individual consumers. In this model, consumers can sell products or services to other consumers through online marketplaces or auction websites. These platforms create a peer-to-peer marketplace, enabling users to list items, negotiate prices, and complete transactions without the need for intermediaries. Popular C2C e-commerce platforms include eBay, Craigslist, and Etsy.
Consumer-to-Business (C2B) E-commerce: C2B e-commerce occurs when individual consumers offer products or services to businesses. This model is commonly seen in the gig economy, where freelancers, influencers, or content creators provide services or promote products to businesses. C2B e-commerce platforms enable businesses to connect with a diverse pool of freelancers and professionals who can offer specialized skills or expertise. Examples of C2B e-commerce platforms include Upwork and Fiverr.
Business-to-Government (B2G) E-commerce: B2G e-commerce involves transactions between businesses and government entities. In this model, businesses bid on government contracts, supply goods, or provide services to government agencies through online procurement portals. B2G e-commerce streamlines the procurement process, making it more transparent and efficient for both businesses and government organizations.
Government-to-Business (G2B) E-commerce: G2B e-commerce refers to transactions where government entities offer goods or services to businesses. This model is less common than other types of e-commerce and is typically seen in cases where government agencies provide specific services or information to businesses through online portals or platforms.
Government-to-Consumer (G2C) E-commerce: G2C e-commerce involves interactions between government agencies and individual consumers. In this model, government services, information, and payments are made available to citizens through online portals or government websites. G2C e-commerce enhances government service delivery, making it more convenient and accessible to citizens.
Mobile Commerce (M-Commerce): M-commerce refers to e-commerce transactions conducted through mobile devices such as smartphones and tablets. With the increasing use of mobile devices, M-commerce has become a significant subset of e-commerce. M-commerce allows consumers to shop, make payments, and conduct transactions on the go, offering convenience and accessibility.
Social Commerce: Social commerce combines elements of social media and e-commerce, enabling businesses to sell products or services directly on social media platforms. Social commerce leverages the popularity of social media to promote products, engage with customers, and facilitate transactions within the social media environment.
Digital Marketplaces: Digital marketplaces are platforms that facilitate multiple sellers to list and sell their products or services in one place. These marketplaces connect buyers and sellers, providing a wide range of products and services in various categories. Popular digital marketplaces include Amazon, eBay, Alibaba, and Etsy.
Future of E-commerce in Bangladesh: Future of E-commerce in Bangladesh: Future of E-commerce in Bangladesh
Prerequisites for Booming Ecommerce in a Country:
Booming e-commerce in a country requires a combination of factors that create a conducive environment for growth and innovation. These prerequisites contribute to attracting more businesses to the e-commerce sector, increasing consumer adoption, and driving economic development. Here are some key prerequisites for booming e-commerce in a country:
Internet Penetration and Digital Infrastructure: High internet penetration and reliable digital infrastructure are fundamental prerequisites for the growth of e-commerce. A widespread and stable internet connection enables more people to access online platforms, browse products, and make purchases.
Mobile Penetration and Smartphone Adoption: As mobile devices become the primary means of internet access for many people, a high level of mobile penetration and smartphone adoption is crucial for the success of mobile commerce (M-commerce) and e-commerce overall.
Tech-Savvy Population: A tech-savvy population that is familiar with digital technologies and comfortable with online transactions drives e-commerce adoption. Digital literacy and a willingness to embrace new technologies facilitate the growth of e-commerce.
Supportive Government Policies and Regulations: Governments need to create a favorable regulatory environment for e-commerce to thrive. Clear and supportive policies for digital trade, data protection, consumer rights, taxation, and online payments encourage businesses to invest in e-commerce ventures.
Secure Online Payment Systems: Trustworthy and secure online payment systems are critical for e-commerce growth. Convenient and reliable payment gateways that protect sensitive financial information build consumer confidence and encourage more online transactions.
Logistics and Fulfillment Infrastructure: An efficient logistics and fulfillment network is essential for timely and cost-effective delivery of products. A well-developed supply chain ensures that customers receive their orders promptly, contributing to a positive shopping experience.
E-commerce Platforms and Marketplaces: The presence of robust e-commerce platforms and marketplaces makes it easier for businesses to enter the e-commerce space. These platforms provide a ready infrastructure for listing products, processing payments, and reaching a broader customer base.
Digital Marketing and Consumer Engagement: A strong digital marketing ecosystem facilitates brand visibility and consumer engagement. Effective online marketing strategies help businesses reach their target audience and build lasting relationships with customers.
Cross-Border Trade Opportunities: A conducive environment for cross-border trade allows businesses to expand their reach beyond domestic markets. Access to international markets opens up new opportunities for growth and diversification.
E-commerce Education and Awareness: Promoting e-commerce education and awareness campaigns helps inform businesses and consumers about the benefits and opportunities of online shopping. Increased awareness leads to higher adoption rates and stimulates market growth.
Customer Support and After-Sales Service: Providing excellent customer support and after-sales service enhances the overall customer experience. Prompt resolution of queries and concerns fosters customer loyalty and repeat purchases.
Innovation and Technology Adoption: Embracing technological innovations and staying updated with industry trends is crucial for sustained growth. Businesses that innovate and leverage technology gain a competitive edge in the e-commerce market.
Access to Finance and Investment: Access to finance and investment opportunities encourages entrepreneurship and enables businesses to invest in e-commerce ventures. Funding and support from investors promote the growth of startups and small businesses in the e-commerce sector.
Data Privacy and Cybersecurity: Ensuring data privacy and cybersecurity is essential to build trust among consumers and businesses. Robust measures to protect customer data and secure online transactions are imperative for a thriving e-commerce ecosystem.
Please note that, the prerequisites for booming e-commerce in a country involve a comprehensive and coordinated effort from various stakeholders, including the government, businesses, and consumers. A supportive regulatory environment, robust digital infrastructure, and a tech-savvy population are critical to driving e-commerce adoption and growth. As these prerequisites are met, e-commerce can play a transformative role in a country’s economic development, job creation, and increased connectivity to global markets.
Logistics and Backward Linkage Industries for Successful Ecommerce Sector Development in a Country:
For the successful development of the e-commerce sector in a country, logistics and backward linkage industries play a vital role. These industries are essential components of the e-commerce ecosystem as they ensure the smooth and efficient movement of goods and services, from the point of production to the hands of the consumers. Here’s how logistics and backward linkage industries contribute to the growth and success of the e-commerce sector:
Efficient Delivery and Fulfillment: Logistics companies are responsible for the timely and reliable delivery of products to customers. Efficient delivery services enhance the overall customer experience and satisfaction, leading to repeat purchases and customer loyalty.
Last-Mile Delivery: The last-mile delivery is crucial for e-commerce, as it involves delivering packages from a local distribution center to the customer’s doorstep. Streamlining last-mile delivery reduces delivery times, increases convenience, and minimizes shipping costs.
Warehousing and Inventory Management: Warehousing facilities are vital for storing products and managing inventory. Effective inventory management ensures that products are readily available for prompt fulfillment, reducing stockouts and improving order processing efficiency.
Reverse Logistics: Reverse logistics involves handling product returns and managing the reverse flow of goods. Efficient reverse logistics processes are essential for handling customer returns and refunds, which, in turn, fosters customer trust and satisfaction.
Technology Integration: Modern logistics companies leverage technology for real-time tracking, route optimization, and data analytics. Advanced technologies improve operational efficiency, reduce shipping costs, and enable better decision-making.
Cross-Border Logistics: Cross-border e-commerce relies heavily on robust cross-border logistics. Efficient customs clearance, international shipping, and compliance with trade regulations are critical for seamless cross-border transactions.
Cold Chain Logistics: For the successful delivery of perishable goods, such as food and pharmaceuticals, cold chain logistics ensures that products are transported under controlled temperature conditions, preserving their quality and freshness.
Collaboration with E-commerce Platforms: Logistics companies collaborate with e-commerce platforms and marketplaces to integrate their systems, enabling seamless order processing and tracking from the moment an order is placed to its delivery.
Backward Linkage Industries for Ecommerce:
Manufacturing and Production: The manufacturing sector is a key backward linkage industry for e-commerce. Reliable and efficient manufacturing processes ensure a steady supply of products to meet consumer demand in the online marketplace.
Suppliers and Distributors: Suppliers and distributors are crucial for providing raw materials and finished goods to manufacturers and retailers. A strong network of suppliers and distributors ensures a steady flow of products for the e-commerce sector.
Packaging Industry: The packaging industry is essential for ensuring products are well-protected during transit and delivery. Secure and attractive packaging enhances the overall customer experience and protects products from damage.
Payment Gateway Providers: Payment gateway providers offer secure online payment solutions for e-commerce transactions. Seamless and secure payment processing is essential for building consumer trust and facilitating smooth transactions.
Information Technology (IT) Services: IT services companies play a significant role in developing and maintaining e-commerce platforms, managing databases, ensuring website security, and enabling seamless integration of various systems.
Data Centers and Cloud Services: Data centers and cloud service providers offer the necessary infrastructure for hosting e-commerce websites, managing large amounts of data, and ensuring high availability and scalability.
Digital Marketing and Advertising: Backward linkage industries in the marketing and advertising sector help e-commerce businesses promote their products and reach a wider audience. Effective marketing strategies contribute to increased brand visibility and customer acquisition.
Human Resources and Talent Development: Skilled human resources are essential for the growth and success of the e-commerce sector. Talent development initiatives and educational institutions play a crucial role in nurturing a skilled workforce for the industry.
It is worth mentioning that logistics and backward linkage industries are integral to the successful development of the e-commerce sector in a country. A well-developed logistics infrastructure ensures efficient delivery and fulfillment, while strong backward linkage industries support the smooth functioning of the e-commerce ecosystem. By fostering collaboration and innovation in these industries, countries can create a robust e-commerce ecosystem that drives economic growth, job creation, and increased connectivity to global markets.
Future of E-commerce in Bangladesh: Future of E-commerce in Bangladesh: Future of E-commerce in Bangladesh
Current Trends of Ecommerce in Bangladesh:
E-commerce in Bangladesh has experienced remarkable growth and transformation in recent years, driven by increasing internet penetration, smartphone adoption, and a growing consumer base. As of the last knowledge update in September 2021, several trends have shaped the e-commerce landscape in the country, revolutionizing how businesses operate and how consumers shop online.
One of the prominent trends is the rapid growth of online shopping in Bangladesh. Consumers are increasingly turning to e-commerce platforms to fulfill their shopping needs, attracted by the convenience, wider product selection, and competitive pricing. Online marketplaces like Daraz, AjkerDeal, and Pickaboo have gained popularity by providing a diverse range of products from various sellers, making it easy for customers to find and purchase items in one place.
Mobile commerce (M-commerce) has emerged as a significant trend, as smartphone usage becomes more prevalent. Consumers are increasingly using dedicated e-commerce mobile apps to shop on-the-go, further fueling the e-commerce boom. Moreover, social commerce has gained momentum, with businesses leveraging social media platforms like Facebook and Instagram to directly engage with potential customers and promote products.
The rise of digital payments and fintech solutions has transformed the payment landscape in Bangladesh. More consumers are adopting digital payment methods, facilitated by fintech companies and mobile wallets, making online transactions more convenient and secure.
E-commerce logistics and delivery services have witnessed improvements, contributing to the overall growth of the industry. Businesses are focusing on providing faster and reliable delivery options to enhance the customer experience and gain a competitive edge.
Customer experience has become a focal point for e-commerce businesses. Companies are investing in providing excellent customer service, personalized experiences, and efficient after-sales support to build trust and loyalty among consumers.
A notable trend is the increasing focus on rural areas. With improving internet connectivity, e-commerce companies are expanding their reach to rural markets, tapping into previously untapped customer bases.
Niche e-commerce stores catering to specific product categories or target audiences have emerged, offering unique and specialized products and experiences for customers.
Cross-border e-commerce has gained traction in Bangladesh, with consumers purchasing products from international online retailers and marketplaces, benefiting from a wider variety of products and competitive prices.
The COVID-19 pandemic has accelerated the adoption of online grocery shopping. Consumers are turning to e-commerce platforms to buy daily necessities and groceries, appreciating the convenience and safety it offers during challenging times.
E-commerce policy and regulations have become a priority for the government of Bangladesh. Formulating structured policies and regulations will provide a framework for the industry’s growth and consumer protection.
Sustainability and ethical e-commerce practices are gaining attention, driven by the increasing awareness and concern of consumers about environmental and social issues. E-commerce businesses are incorporating eco-friendly and socially responsible initiatives to meet customer expectations.
Digital marketing strategies, including influencer marketing, are becoming essential for e-commerce businesses to effectively reach and engage with their target audience in a competitive digital landscape.
In conclusion, the e-commerce industry in Bangladesh is witnessing a dynamic transformation, fueled by technological advancements, changing consumer behavior, and the evolving business landscape. The trends of rapid online shopping growth, mobile commerce, social commerce, digital payments, and improved logistics highlight the potential and opportunities in the sector. As e-commerce continues to evolve, it is essential for businesses and policymakers to adapt and embrace these trends to thrive in the digital economy of Bangladesh. However, for the most up-to-date information, it is recommended to refer to recent reports and news sources for the latest trends in the dynamic and fast-paced world of e-commerce.
List of Ecommerce Platforms in Bangladesh:
Some prominent e-commerce platforms in Bangladesh are as follows:
Daraz Bangladesh: One of the largest and most popular online marketplaces in Bangladesh, offering a wide range of products across various categories, including electronics, fashion, home appliances, and more.
AjkerDeal: A leading online marketplace offering a diverse selection of products, including electronics, fashion, home and living, health and beauty, and more.
Pickaboo: An online platform specializing in electronics and gadgets, providing genuine products with warranty and after-sales support.
Rokomari: An online bookstore offering a vast collection of books in various genres, as well as other products like stationery and electronics.
PriyoShop: A comprehensive e-commerce platform offering products from various categories, including electronics, fashion, beauty, and lifestyle.
Bagdoom: An online shopping platform with a wide array of products, ranging from fashion and accessories to gadgets and home essentials.
com: An e-commerce website offering products in diverse categories, including electronics, fashion, home and kitchen, and more.
com: An online platform specializing in bicycles and related accessories, catering to cycling enthusiasts.
com: A popular online classifieds platform where users can buy and sell new and used products across various categories.
Alesha Mart: An online platform offering a wide range of products, including electronics, fashion, home and living, and more.
Chaldal: An online grocery delivery platform that allows users to order groceries and household essentials for home delivery.
Priyoshop: An e-commerce website offering products across multiple categories, including electronics, fashion, beauty, and home essentials.
Kiksha: An online shopping platform with a diverse range of products, including electronics, fashion, and lifestyle items.
ClickBD: An online marketplace for buying and selling new and used products, including electronics, gadgets, and more.
Rang: An online fashion store specializing in clothing and accessories for men, women, and kids.
Branoo: An online shopping platform offering a wide selection of products, including electronics, fashion, and home appliances.
Gadget Bangla: An e-commerce platform specializing in electronics, gadgets, and tech accessories.
Cellbazaar: An online marketplace for buying and selling new and used products, including electronics, cars, and real estate.
Please note that this list is not exhaustive, and there may be other e-commerce platforms that have emerged since my last knowledge update. Additionally, the availability and popularity of these platforms may vary over time. For the most up-to-date information, it is recommended to explore the current e-commerce landscape in Bangladesh through reliable sources and search engines.
Most Popular Ecommerce Platforms of the world:
Amazon: Amazon is undoubtedly the largest and most dominant e-commerce platform globally. It operates in various countries, offering a vast range of products, from electronics and fashion to books and groceries. Amazon’s marketplace model allows third-party sellers to list and sell their products on the platform, contributing to its extensive product selection and customer base.
Alibaba: Alibaba is a leading e-commerce giant based in China. It operates several platforms, including Alibaba.com for B2B trading, Taobao for the Chinese consumer market, and AliExpress for international consumers. Alibaba’s marketplaces have a massive presence in the Asian market and beyond, making it a significant player in the global e-commerce industry.
com: JD.com is another major e-commerce platform based in China. It focuses on a direct sales model, where it sells products directly to consumers through its online platform. JD.com has a strong presence in China and is known for its efficient logistics and fast delivery services.
Walmart: Walmart is a retail giant that has significantly expanded its online presence in recent years. Its e-commerce platform offers a wide range of products, including electronics, household essentials, and groceries. Walmart’s e-commerce operations serve customers in the United States and various other countries.
eBay: eBay is a prominent online marketplace that operates globally, connecting buyers and sellers in auctions and fixed-price listings. It offers a diverse range of products and has a large international user base.
Rakuten: Rakuten is a major e-commerce company based in Japan, with a global presence. It operates an online marketplace and provides various other services, such as digital content, travel booking, and financial services.
MercadoLibre: MercadoLibre is a leading e-commerce platform in Latin America, serving countries such as Argentina, Brazil, Mexico, and Colombia. It offers a variety of products and services, including electronics, fashion, and online payment solutions.
Flipkart: Flipkart is one of India’s largest e-commerce companies, offering a wide range of products and services, including electronics, fashion, and home essentials. It has a significant presence in the Indian market.
Taobao: Taobao is a popular online shopping platform operated by Alibaba, focusing on the Chinese consumer market. It features a vast selection of products, ranging from fashion to electronics and more.
AliExpress: AliExpress is an international online marketplace operated by Alibaba, catering to consumers outside China. It allows sellers from various countries to offer products to a global audience.
These e-commerce platforms have a substantial global presence and continue to shape the e-commerce industry’s dynamics. Their success can be attributed to their wide product selections, efficient logistics, user-friendly interfaces, and commitment to customer satisfaction. The e-commerce landscape is continually evolving, and new players may emerge or existing platforms may experience changes in market share over time. For the most current information on the largest e-commerce platforms in the world, it is advisable to refer to recent market reports and industry updates.
Future of E-commerce in Bangladesh: Future of E-commerce in Bangladesh
Prospects of Ecommerce in Bangladesh:
E-commerce in Bangladesh has experienced remarkable growth in recent years, and its prospects for the future are promising. As one of the fastest-growing digital economies in South Asia, Bangladesh presents significant opportunities for the e-commerce industry to flourish and drive economic development. Several factors contribute to the bright prospects of e-commerce in Bangladesh:
Rising Internet Penetration: The increasing penetration of the internet and smartphone usage has opened up new avenues for e-commerce growth in Bangladesh. As more people gain access to the internet, the potential customer base for online shopping expands, driving higher e-commerce adoption.
Youthful Population and Tech-Savvy Consumers: Bangladesh boasts a youthful population, with a considerable portion of its demographic being tech-savvy and digitally literate. This tech-savvy generation is more receptive to e-commerce, leading to higher online shopping rates and a favorable environment for the industry to thrive.
Expanding Middle-Class Segment: Bangladesh’s growing middle-class population with increasing disposable incomes presents a significant market for e-commerce. As purchasing power increases, more consumers are seeking convenient and diverse online shopping experiences.
Urbanization and Changing Consumer Behavior: The rapid urbanization in Bangladesh is influencing consumer behavior, with more people preferring the convenience and accessibility of online shopping. This shift in consumer preferences drives the demand for e-commerce services.
Government Support and Policy Reforms: The government of Bangladesh recognizes the potential of e-commerce in driving economic growth and has been actively supporting the digital economy. Policy reforms and initiatives to boost the e-commerce ecosystem, including digital payment facilitation, are attracting investments and fostering a favorable business environment.
Growing E-commerce Infrastructure: The improvement in e-commerce infrastructure, including reliable logistics and secure payment gateways, is enhancing the overall customer experience. Better infrastructure encourages more businesses to venture into e-commerce, driving the sector’s expansion.
E-commerce Platforms and Marketplaces: The emergence of local and international e-commerce platforms and marketplaces has made online shopping more accessible to consumers in Bangladesh. These platforms offer a wide variety of products and services, catering to diverse customer needs.
Mobile Commerce (M-Commerce) Growth: With the increasing penetration of smartphones, mobile commerce (M-commerce) is becoming a significant driver of e-commerce growth in Bangladesh. Consumers are embracing the convenience of shopping on-the-go, leading to increased M-commerce transactions.
Rise of Online Grocery Shopping: The COVID-19 pandemic accelerated the adoption of online grocery shopping in Bangladesh, and this trend is expected to continue. Consumers appreciate the safety and convenience of ordering groceries online, presenting further opportunities for e-commerce companies.
Cross-Border E-commerce Potential: Cross-border e-commerce is gaining traction in Bangladesh, with consumers purchasing products from international online retailers. As trade barriers reduce, cross-border e-commerce is expected to expand further.
Social Commerce and Digital Marketing: The growing popularity of social media and digital marketing is enabling businesses to reach and engage with customers directly. Social commerce allows consumers to make purchases directly through social media platforms, creating new avenues for e-commerce growth.
Innovation and Technological Advancements: Technological innovations, such as artificial intelligence (AI), augmented reality (AR), and virtual reality (VR), are reshaping the e-commerce landscape. Businesses are leveraging these technologies to enhance the online shopping experience and differentiate themselves in the market.
In conclusion, the prospects of e-commerce in Bangladesh are bright, with a conducive environment for sustained growth and innovation. As more consumers embrace online shopping, businesses are eager to tap into the vast potential of the e-commerce market. Government support, improved infrastructure, and the rise of mobile commerce are driving the transformation of the retail sector. The e-commerce industry in Bangladesh is poised to contribute significantly to the country’s economic development and create new opportunities for businesses and consumers alike. However, challenges such as logistics, cybersecurity, and regulatory frameworks will need to be addressed to ensure the sustainable growth of the e-commerce ecosystem. With continuous advancements in technology and consumer preferences, the e-commerce landscape in Bangladesh will continue to evolve, making it an exciting space to watch in the coming years.
Future of E-commerce in Bangladesh: Future of E-commerce in Bangladesh: Future of E-commerce in Bangladesh
*Author’s Short Profile:
Md. Joynal Abdin
Mr. Md. Joynal Abdin is a Business Consultant & Digital Marketer based in Dhaka, Bangladesh. He is also Co-Founder & CEO of Bangladesh Trade Center. Previously he served at Dhaka Chamber of Commerce & Industry (DCCI) as Executive Secretary; DCCI Business Institute (DBI) as Executive Director; SME Foundation as Deputy Manager; and the Federation of Bangladesh Chambers of Commerce & Industry (FBCCI) as Assistant Secretary.
The list of services Mr. Abdin is offering includes but not limited to Business Research and Documentations like Feasibility Study, Project Proposal Preparation, Writing Business Manual, Standard Operating Procedures etc.; Export Market Selection and Product Positioning at Home and Abroad; Buyers-Sellers Matchmaking; Website Development; Search Engine Optimization (SEO); and Social Media Marketing etc.
Future of E-commerce in Bangladesh: Future of E-commerce in Bangladesh: Future of E-commerce in Bangladesh
