Economic challenges and sovereign rights

The past few weeks have seen a mixed bag of reports about our performance within our economic, trade and development sectors within the pandemic paradigm. Some of the news coming out in the media have reported successes in some sectors while others have hinted at possible dire consequences in the future.

 A debate has also ensued between some economists as to whether there has been any positive gain from the Trade and Investment Cooperation Forum Agreement (TICFA) agreed to with the USA nearly eight years ago. Some have drawn attention as to whether our existing trade agreements matrix is consistent with our sovereign rights as a nation and whether foreign multinationals are trying to impose their will on Bangladesh under different pretexts.

It cannot be denied that we have moved forward - not only in socio-economic terms but also in our attempt to provide education, gender empowerment and equal opportunities to all sections of our population - both rural and urban over the last fifty years. Attempts have also been made to achieve integration and inclusiveness by successive governments as well as by the civil society.

It may be recalled that in their Human Development Report launched by the United Nations Development Programme (UNDP) in 2013 Bangladesh was identified as belonging to a group of 18 highlighted countries in the world who have witnessed rapid progress in human development. Members of this group include China, India, Malaysia and Vietnam.

Since then, Bangladesh has been praised by different institutions for achieving striking human development gains in the sectors of public health, education services, innovating poverty eradication programmes and strategic engagement with the world economy. It has also been noted that Bangladesh has had sustained growth (despite international recession) by increasing the rate of public investment and achieving great success in the textiles sector.

Nevertheless, it has to be acknowledged that we have at times also faltered in our quest to establish genuine secularism and observance of all the principles related to human rights and good governance. We have also been unable to come out of the mire of corruption that has been created because of socio-metric overlay and lack of accountability. This has affected the cost of doing business in our country and also impacted on foreign direct investment.

We must not forget that today, we live in a world without borders. That, in its own way, imprints and influences our socio-economic opportunities and political relationships with our partners. As we reach out within this international context, we have to remain aware that our activities, in both the public and private sectors, continue to remain under scrutiny from outsiders. This also leads to observations by some of our intellectuals and civil society regarding some of our entrepreneurs not following

The main area of contention that appears to have drawn attention has been the connotations and denotations related to worker's rights. Some Western countries have been seeking immediate improvement of worker's rights despite the shadow cast by the pandemic paradigm. Bangladesh, on the other hand, has been stressing on the word 'gradual'. That has been identified by us as a more pragmatic approach. The United States has however, seen it otherwise because of activists involved with the AFL-CIO. Nevertheless, it needs to be mentioned that the principles being associated with the rights of workers is more or slightly less similar to the text of agreements with Pakistan, Malaysia or Sri Lanka.

The Ministry of Commerce has tried to reduce anxieties in this regard by explaining that it will create a platform to settle any issue related to trade ties. Disputes, it is being mentioned, could then be addressed and resolved through discussion. Such a path will then enable the two countries to sit together at least once a year, discuss and then take decisions on contentious problems. That can then be a catalyst for further constructive engagement.

It is also necessary to draw the attention of the relevant officials in the Ministry of Commerce to some of the provisions existing in the 'US- India Trade Policy Forum- Framework for Cooperation on Trade and Investment'. Sooner, rather than later, we should try to make a Work Plan which will use Focus Groups to overcome impediments related to bilateral trade and investment.

However, it would be pertinent to note that all bilateral trade ties need to remove challenges and inconsistencies that might exist within the spectrum of bilateral trade and investment. It should also be carefully monitored so that it promotes labour rights consistent with the 1998 ILO declaration and concerned parties are willing to initiate necessary steps to curb corruption. To keep matters within a correct parameter, there needs to be also the provision and stipulation that both parties can meet at least once a year once a year and that either party may terminate the existing trade agreement between themselves from a date parties agree to, or 180 days after notification.

We need to have a hands-on engagement through which we can create possible benefits that might accrue from the (a) probability of elimination of tariff barriers, (b) creation of a greater and more diversified export base for Bangladeshi products into the international market. One is confident that if such measures are adopted carefully, it will indirectly increase foreign direct investment into our manufacturing sector. This will eventually generate more employment opportunities, encourage transfer of technology and create wider contact between the private sectors of the two countries.

The government realizes that our garment industry is under serious scrutiny not only among international buyers but also among labour rights activists in Western Europe and North America. Several human rights organisations have demonstrated their anger by smearing apparels manufactured in Bangladesh with blood and then exhibiting these items in front of retailing stores in the Western hemisphere. It has also drawn the attention of the United Nations, the ILO and politicians across the divide in the UK, USA, France, Netherlands and Denmark. That has not been helpful for the branding of the country or its image as a suitable destination for possible investment.

We will have to get our act together. This will only enhance our prospects. The government's urgent efforts, including inspection of factory premises and increasing wages in the RMG industry, have already led to the creation of more clout for workers in Bangladesh. An amended labour law passed in the Jatiyo Sangsad in 2013 has also boosted worker rights and ensured freedom to form trade unions. This has been an example of constructive engagement. Employees will no longer also require approval from factory owners to form trade unions. Urgent proactive measures, including appointment of more factory inspectors for constant monitoring, will similarly, help to restore our brand image at home and abroad.

These are very progressive steps and one hopes that all concerned parties will ensure their implementation. The US and UK Administrations and Member States of the EU also need to have a cooperative engagement for the sake of achieving common desired ends. In this context, while preaching about international values, they should take effective measures to ensure that the greed of their retailers and the middle-men do not affect the efforts of our manufacturers being able to provide the required support to the workers.

We, in turn, also need to realise that economic interdependence and abiding by certain agreed international provisions do not mean ceding our rights as an independent country.  

Muhammad Zamir, a former ambassador, is an analyst specialising in foreign affairs, right to information and good governance