Tensions on political, RMG fronts threat to investment, growth

FE Team | Published: October 10, 2013 00:00:00 | Updated: February 01, 2018 00:00:00

Heather Cruden

Munima Sultana Canadian High Commissioner Heather Cruden said tensions in the country's political arena centring on the next general election and in the readymade garment (RMG) sector over the labour right issues made Canada apprehensive of worsening investment climate and economic growth in the country. She said Canadian investors were very nervous at the moment and many opportunities might not be explored due to the volatile political situation and the labour rights issues in the country. The High Commissioner expressed her hope that both the major political parties would sit together and reach an agreement on how to settle the overall political issues. She also urged all stakeholders including the government, factory owners, and workers to reach an agreement putting the due focus on labour rights issues, mainly the right to unionise, for avoiding street-based protests, as it is important to save the main export earning sector of the country. "The main challenge right now is the current political situation. I hope both parties can come to an agreement that will allow the upcoming elections to be free, credible, peaceful and inclusive," the high commissioner said in an exclusive interview with the FE last week. Ms Heather who came to Bangladesh on her first assignment as the high commissioner two years ago talked about diplomatic, trade and development relationships between Bangladesh and Canada as well as the overall political and labour rights situation at her residence, when the issue of immigrants was also touched upon. The high commissioner said Bangladesh remained one of Canada's countries of focus and all its development, foreign and trade relationships benefit government, people, development and businesses of the country. She disclosed that the trade volume of US $ 1.6 billion was in favour of Bangladesh because of the RMG export to Canada. "I would really like to see it hit $ 2.0 billion soon." Terming the investment by Canada in Bangladesh not that big, the high commission, however, said $ 300 million Canadian investment was made in the RMG, pharmaceutical and information technology sectors, which could be increased. "|Investment obviously depends on political environment and political stability," she reiterated. "Right now people are very nervous about investing in Bangladesh, Because of the political instability and given the uncertainty centring on election and political violence, this is having a very negative impact on investment by Canadians in Bangladesh," the high commissioner also said. She told the FE that a visit by a delegation from renowned Canadian universities was cancelled, which could create scopes for Bangladeshi students to study in "really high quality universities'' very competitive in the cost perspective. Ms Heather said as human resource is the main resource of Bangladesh, increasing their skill level could be a good opportunity to secure jobs for them in Canada in the future. "Your biggest resource is human resource. So if you can raise the skill level of your human resource, this in my view will really help Bangladesh move from the least development country to a middle income country," she said pointing to the fact that presently low skilled people are going to Middle East and Asian countries with jobs like domestic workers, cleaners, firm workers etc. They could get better jobs all over the world with their skill level enhanced. "There is a scope for Bangladeshis to focus on the Canadian immigrant policy in future," she added. When her attention was drawn to the labour law reform as done by the government by amending the Labour Law 2006, the Canadian high commissioner focused on its implementation. The Canadian envoy who played a significant role in signing the joint statement and the tripartite national action plan on fire and building safety after the Tazreen and Rana Plaza tragedies said Bangladesh has many good laws, but those are not implemented. She said though the amendment to the labour law was the first step to address the workers' fundamental rights to freedom of association and collective bargaining, it was still not consistent with the international labour standard. The high commissioner, however, attached importance to allowing workers to form unions and voice their opinions for the sake of a working environment. "Obviously one of the issue is right now is compensation for workers. But all demands-improvement of safety standards, compensation packages, fair wage, living wage, or else should come through negotiation." She said the Canadian buyers soon after the two tragic incidents in the RMG sector had been involved with the Alliance and the Accord and the Canadian government continued to give duty free access to Bangladesh to help the sector continue its growth. "These are very positive initiatives for moving forward. Instead of moving alone, we are going to move in the sector in a much more harmonised environment with the government of Bangladesh, Alliance and Accord, ILO and the garment owners," Ms Heather also said. She, however, laid emphasis on diversification instead of the economy's dependence on RMG for sustaining economic growth. Ms Heather informed the FE that the newly-formed Canadian Department of Foreign Affairs, Trade and Development (DFATD) would reflect her government's commitment to integrate foreign policy objectives with development and trade. "Bangladesh is one of the twenty focus countries for Canada's development assistance. Canada is proud to have contributed to Bangladesh's significant successes in reducing poverty and meeting MDGs," she said. She said her government focuses on sustainable economic growth, public financial management and skills for employment in order to accelerate implementation of national development priorities leading to greater poverty reduction and sustainable economic growth and create a better-trained, qualified and competent workforce, with particular attention to the disadvantaged groups in the labour market, such as women, youths and people with disabilities.