Consistency in industrial policy essential

Industrial policy is a crucial means for governments to promote industrial development and accelerate economic growth. In fact, industrial policy is an important tool for a government to guide economic development. By implementing industrial policy, the government intervenes in the process of resource allocation and the distribution of benefits, restricts or induces the behavior of enterprises, and influences the direction of industrial development. The stakeholders are maturally concerned about the possible implications of the new industrial policy.

According to experts the new industrial policy should focus on creating a vibrant private sector through private sector-led economic transformation, technology adaptation, protecting the domestic market, facilitating import substitute industry and cluster development, according to a report published in this newspaper Monday. The experts have stressed the need for ensuring policy consistency in the policy. Obviously inconsistency in economic policies is a more serious issue than any external threat to investment environment. Indeed the first thing we have to establish in Bangladesh is consistency and stability in our system and policies.

Before the National Industrial Policy 2021 Bangladesh had had National Industrial Policy 2010, 2005 etc. A new policy is coming into effect after every five years. But how much of the previous one has been implemented by concerned ministries or agencies were rarely evaluated publicly ever before. National Industrial Policy 2010 and its older versions had no plan of actions as well as concerned ministries or agencies identified. As a result, many actions were unimplemented in absence of concerned ownership or sometime blame games were in place. To avoid such unexpected situation and make the industrial policy transparent government included a specific Time bound Action Plan in the National Industrial Policy 2016. This matrix provides this policy indicator to monitor and made it evaluation worthy. It also identified implementing ministries or agencies with a specific time frame. The governments should provide judicious guidance according to various circumstances, especially to solve external problems that enterprises may face in the process of industrial upgrading and to coordinate the infrastructure investment that cannot be internalized by an enterprise's decision-making.

Bangladesh has made impressive achievements in its economy. Much has been achieved on the social front as well. To continue its growth Bangladesh needs to implement good fiscal policies, improving infrastructure and investing in human capital. And the confidence of investors has to be augmented. Progress in poverty reduction, lower maternal and child mortality, increased life expectancy and higher enrolment are some examples of such achievements.

Not only industries but all sectors require a consistent governance process to develop and maintain policies and procedures. Policies articulate culture, they establish a duty of care, define expectations for behavior, and establish how the organization is going to comply with obligations. Identification of policy problems to address are to be ataken into account. Of course, agenda setting is a critical task since it usually reflects prioritized public needs or problems and different stakeholders. In addition to agenda setting, formulation and implementation, policy evaluation is surely no way less important. Policy evaluation — another vital stage of policy cycle — is especially needed for understanding policy achievements, learning lessons for reformulation of existing policies, formulation of new policies and effective implementation.

In the new industrial policy government can establish “Industry Development Department” under the ministry of Industries and introduce a separate cadre in Bangladesh Civil Service titled “Industry Development Cadre” to provide mentorship support to the existing and new entrepreneurs. We have tremendous achievements in agriculture production through the support of agriculture extension and other allied departments. Similarly all these Industry Development Officers will be under Industry Extension Department under the ministry of Industries. This policy should include separate chapter on 4th Industrial Revolution (4IR) with list of industries could be emerged due to 4IR. We would like to state that, proper monitoring and evaluation mechanism should be incorporated with the upcoming national industrial policy with concrete plan of actions to make national industrial policy implementation and result worthy. Otherwise; enacting a new policy in every five years may not help us to remain competitive in the challenging environment of post LDC graduation.