Home ›› 27 Aug 2022 ›› Front
Bangladesh Investment Development Authority (BIDA) has taken initiatives to develop the South-West Bangladesh Economic Corridor (SWBEC), which it thinks will add $150 billion to the country’s GDP.
The government has basically planned to boost economic activities in areas around the Padma Bridge. If the economic corridor can be developed, it will create new potential for the people of that region.
At least $140 billion should be invested in transformed infrastructure in the next 28 years to develop the corridor, a recent BIDA report said.
It said the southwest region will have annual economic outputs of $40-45 billion by 2050 if the current economic conditions continue. But if the corridor is developed, the figure may jump to $150 billion and 35 million jobs could be created while multilateral investors would invest there. Besides, in addition to the domestic ICT market’s expansion, Bangladesh may become a major exporter of such services.
Centre for Policy Dialogue’s Distinguished Fellow Dr Mustafizur Rahman said the economic corridor around the Padma Bridge should be developed.
He said there was a plan to build 17 economic zones on the other side of the Padma River and it must be implemented. “This will contribute to the economy and create jobs.”
The BIDA report said local and foreign investors should be given opportunities to invest in 18 industrial sectors to implement the corridor, which will help diversify exports. After the success of the readymade garment sector, progress is needed in others as well.
The 18 sectors include fishery and agricultural products; leather and leather goods, especially footwear, textiles, and readymade garments; ceramics; glass and glassware; furniture; automobiles; bicycles; pharmaceuticals; shipbuilding; plastic products; tyre and tube manufacturing; electronics; electrical equipment; jute; and petrochemical products.
The report said attention should be paid to increase the use of domestic products in the country’s current industrial production system. If these industries are established, it will be possible to increase production by using more local raw materials.
BIDA could undertake a project to develop the corridor, the report said. At the same time, it will set up a hi-tech park in that region to create employment and for technological development.
It could also arrange a road show from the Padma Bridge to the southwest region to attract investment by highlighting the various benefits that investors will get.
The government plans to continue its efforts to increase domestic demand and alleviate poverty. Besides, the corridor will strengthen connectivity not only with the southwestern region but also neighbouring Nepal, Bhutan, and the northern region of India, according to the report.
It further said not only the government but also private sector representatives should come forward to build the corridor. The government has various plans to develop the corridor, such as the five-year plan and the long-term perspective plan. Many economic achievements will be possible if these plans are implemented.
The report described three important areas that need to be focused on to build the corridor. The first is the trade and transport corridor itself, where roads and ports are integral components, especially in the context of logistics performance.
The second is the industrial production clusters that produce goods and services. The third is the urban centres that function as major markets and a source of labour, technology, knowledge, and innovation.
The corridor development strategy can play a vital role in rapid economic development. It needs a holistic development strategy to drive structural transformation and regionally balanced development, which is needed to drive sustainable and inclusive growth across regions. Developing the corridor is an effective policy instrument integrating industries, infrastructure, urban services, and institutional and regulatory frameworks, the report said.
The corridor will involve projects across multiple sectors aimed at providing a robust infrastructure framework. A sound institutional framework will provide inter-agency coordination in planning, prioritising, and developing economic corridor projects.
BIDA said the corridor would play an important role in further accelerating the economic growth of Bangladesh. It will strengthen human resources, technical skills, infrastructure, and backward linkages in the country. This will help increase the capacity of the country to manufacture high-value and diversified products as well as facilitate its integration with the international market.
Bangladesh is adopting development strategies, such as developing economic corridors, for structural transformation and regional balanced development. Through these, industries will be set up, employment will increase, and infrastructure will be developed.
Besides, the gap between rural and urban areas will reduce, the internal market system will improve, and it will be easier to connect to the global value chain system.
The BIDA report was prepared based on a 2019 Asian Development Bank (ADB) survey on the economic corridor. The ADB then handed the survey findings over to the government.
In its recommendations, the ADB said power generation needs to be improved along with establishing a multi-modal transport system through rapid infrastructural development so that the corridor becomes attractive to investors as a centre of manufacturing and growing demand. It also recommended linking the corridor with the larger market system.
Based on the recommendations, the government emphasised the development of infrastructure connectivity with the larger market.
