Diversification of production base

The issue of diversification of Bangladesh's production base has of late become a buzz word for no mean reason. When the Japanese ambassador here also lends his voice to the theme, the issue certainly assumes importance in a very especial way. As the largest bilateral donor of Bangladesh, the Asian industrial giant has redirected its focus on the country for further investment. Corroborating this, Akihiko Tanaka, President of Japan International Cooperation Agency (JAICA) has painted a further rosy picture of Japan-Bangladesh cooperation. He draws attention to a new vista of the proposed Bay of Bengal Industrial Growth Belt (BIG-B) of and to which Bangladesh will be an important partner and supplier. From 2014, Japan has committed to provide up to US $ 6.0 billion in additional assistance with an eye to strengthening collaboration in the industrial sector.

Diversification of products for exports calls for enormous investment and Japan has shown its readiness to generously help the country in the set tasks. The Japanese ambassador has been categorical in citing the 10 Association of South East Asian Nations (ASEAN) members which, because of Bangladesh's geographical position, can open up a corridor for it to supply finished, half-finished products and services. In that effort, Japan's collaboration with the country's local entrepreneurs will be crucial. Transfer of technology together with investment and training for local labourers and staff can make the miracle happen. In fact, the process began long ago when Japan started shifting its whole plants or setting up newer ones in most of the South-east Asian countries.

Bangladesh failed to grab the opportunity then but now there is no reason why it should not gratefully accept the offer. Today, the country boasts a large army of techno-savvy graduates who do not find enough opportunity to apply their advanced knowledge because of lack of industrial set-ups in adequate numbers. How the technological map has been changing in Bangladesh can be realised from the fact that it has earned the number three position among the favourite outsourcing countries in the world. This was possible because large investment and industrial plants are not necessary for development of information and technology (IT) sector. But when it comes to automobile, shipping or aeronautic or other investment-intensive sector, the growth is dependent on investment, plants, engines or machines, industrial zones, transportation and a whole range of other issues including government policies of the host country.

Bangladesh set up its Machine and Tools Factory decades ago but had to abandon it later on. Now another opportunity has arrived. Beginning late also has its advantages because by this time automobile or other industrial plants have undergone radical transformation on account of environmental concerns. If Japan comes up with its highly developed technology, this country stands to gain enormously. Its cheap labour and other facilities including the new-found eagerness of the political leadership may prove to be the clinching factor. It is gratifying to know that Japan has already agreed to extend its credit for five projects and one of this is a power plant. This is crucial because if power is available, the industries to be set up will be able to go full throttle in production -one of the factors to raise a country's pace of economic growth.