Right policies, timely action can help avoid 'middle-income trap'

ICCB President Mahbubur Rahman said on Saturday the right policies and timely action are needed in order to avoid falling into the 'middle-income trap" where a number of countries are stuck in the lower-middle income status and are unable to move up, reports UNB.

"The country is now at an important juncture," he said while presenting the Executive Board report at the International Chamber of Commerce, Bangladesh (ICCB) annual council held in the city.

Rahman said Bangladesh should now be prepared for the probable impact of graduation. "It is high time for the country to formulate effective strategies to face the challenges of graduation, as it will gradually lose preferential trade opportunities."

He said the probable impact of Bangladesh's loss of preferential facilities in major export destinations will be felt on the export, sustainable GDP growth and other socio-economic indicators.

He mentioned that Bangladesh was now enjoying preferential access of varying degrees offered by more than 40 countries.

Economists predict that the country is likely to lose about $2.7 billion in export earnings every year once it graduates from the LDC bracket, the Council Report added.

"In order to achieve 8.0 per cent plus growth, we believe that it is necessary for us to ensure political stability, financial sector reform, ensure access to reliable and affordable power, efficient infrastructure (including ports and improved highways), export diversification and enforcement of laws to reduce cost of doing business," said the ICCB president.

However, he said, Bangladesh is faced with worst man-made disaster and the United Nations estimates that almost 1.0 million Rohingyas have fled Myanmar's violent campaign of ethnic cleansing.

Bangladesh had no option but to give shelter to Rohingyas by opening its border and hosting them, Mahbubur Rahman observed.

The influx of Rohingya refugees has created a pressure for the economy and overall security of Bangladesh.

Some 6,000 acres of land has already been deforested by the Rohingya camps. Bangladesh's leading think-tank Centre for Policy Dialogue (CPD) estimates the total value of 6,000 acres of deforested land in the Rohingya camps is equivalent to Taka 7.42 billion or USD 86.67 million.

The council adopted the Executive Board Report and Audited Financial Statements of ICC Bangladesh for the year 2017 and announced the New Executive Board of ICC Bangladesh for the period of April 2018 to March 2020.

Among others, ICCB Vice Presidents Latifur Rahman, Rokia A Rahman; DCCI President Abul Kasem Khan; FICCI Vice President Francois de Maricourt and ICCB board members, among others, were present.