‘Focus on diversification by adopting technologies for LDC graduation’

To tackle the challenges and pave the way for graduating to a developing country from the least developed country (LDC) status by 2026, Bangladesh should focus on diversifying industries and products by adopting technologies, experts told a webinar on Thursday.

They suggested rationalising the tariff system, skill development, investing in research and innovation, policy reforms, and attracting foreign and local investments to create jobs.

They made the call at the webinar titled “LDC graduation of Bangladesh: Transformation and preparedness” and jointly organised by the commerce ministry and the Dhaka Chamber of Commerce and Industry (DCCI) on the third day of the Bangladesh Trade and Investment Summit 2021.

They said so many foreign investors are interested in investing in Bangladesh, but they mainly face trouble accessing land, while enhanced investment opportunities are needed.

“Many of us are always talking about export diversification, but it is not happening in reality,” said Syed Manzur Elahi, chairman of Apex Group and a former adviser to the caretaker government.

“We have to create jobs that help alleviate poverty, and it is the duty of the private sector to do so,” he said.

Bangladesh needs industrialisation to create jobs, he said.

“Due to our skill shortages, thousands of foreigners are working in Bangladesh, and they remit about $5 billion every year,” he added.

DCCI President Rizwan Rahman said technology transfer is no longer a choice but a necessity now.

Bangladesh’s economic condition is quite resilient and progressive and after the LDC graduation, the country will be able to make its position stronger, he said.

He suggested providing all the facilities for the export-oriented industries that the readymade garment sector is enjoying now.

Manzur said the leather sector is promising and has huge scopes for technology adaptation.

He said Bangladesh and Vietnam stepped into this sector at the same time, but Vietnam is now exporting footwear worth $16-17 billion annually whereas Bangladesh is stuck at around $1 billion.

Joint ventures will strengthen this sector in Bangladesh and foreign investors are interested in such ventures but they face trouble accessing land, he said.

He demanded a separate economic zone especially for the leather footwear industry.

Dr Ahmad Kaikaus, principal secretary to the prime minister, said 81% of the gross domestic product (GDP) comes from the private sector, reflecting its strength and vibrancy.

“We have to facilitate the private sector and make a strong connection between the public and private sectors as the private sector plays a major role in the country’s economic transformation,” he said while addressing the programme as the chief guest.

“Most of the power sector entrepreneurs are local. The government is always willing to listen to the problems the private sector is facing and very much accommodative to solve those.”

Every graduating economy undergoes a transition with a deep aspiration of a renewed economic journey, said Commerce Secretary Tapan Kanti Ghosh.