Substantive dialogue

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Mahmudur Rahman
When the largest sector of the economy actually proposes a caucus to negotiate its demands with the government, it means that there is "something rotten in the kingdom .." to quote from Shakespeare.
It would appear that either the Bangladesh Garments Manufacturers & Exporters Association (BGMEA) is unable to make its case or the government is just not convinced about it. Either way, stalemate is hardly desireable.
It was not amusing to see the Federation of Bangladesh Chambers of Commerce & Industry (FBCCI) President, Annisul Huq beaming a few months ago as he walked in to the Finance Minister's office armed with a sheaf of papers containing the proposed sops of Tk. 6.0 billion for businesses and then emerging with a grim face. Apparently, the businessmen had figured out their problems and solutions without extending the horizon of their thought process to include that of the government.
Businesses are hurting in the wake of the global economic mess and they do need some support and the BGMEA, in particular, is a major player in the economy both in terms of export and employment. But what was probably overlooked is the true demand of leadership that requires a leader to rise above the normal day to day challenges and take a so-called helicopter view of the world below. The politician's role is far more difficult because he or she is required to make a quantum leap to change his or her outlook and work procedure in graduating from partisan politics to responsibility for the state. The difficulty quotient increases with the intense public and media scrutiny.
The response of the Finance Minister to largely ignore the demands of assistance for the BGMEA was one endorsed by the former Advisor for Finance Mirza M A Jalil. The Prime Minister was more open in suggesting that instead of buying expensive cars and houses, they could do well to put some extra money into the pockets of the workers. The message may have been a little harsh but the essence was clear enough. And so, in this case the leadership level was well maintained.
The penny dropped and Huq and company went back to the drawing board and reworked the proposal that was re-worked. The result was a far more practical proposal that actually suggested specific ways forward for the government. Next time round, Huq was looking somewhat apprehensive as he traipsed into the Finance Minister's office but came out looking far more relaxed. The Finance Minister sounded a lot more positive. He admitted the BGMEA needed some assistance and promised measures to be outlined in the budget. Till today we have not been publicly informed about such measures.
Perhaps the most management friendly demand made by the FBCCI is that a task force comprising government, banks and businesses be set up to identify the truly affected industries and businesses. It really is time to take a realistic look at the problem-ridden industries, especially in the garments sector.
There is a school of thought not yet convinced that the sector is being hit as hard as has been suggested. It is a school populated by some in the industry itself who look upon the sop issue as one of taking the easy way out of what essentially is a management problem. For instance, the 10bln dollar target revenue from exports by the sector is impressive. However, the other figure, that of the cost of the inputs that need to be minused in order for the value-addition to be arrived at, is never focused nearly as much as it ought to be. The argument against cuts in duty rates for raw materials is also under question for the simple reason that the government is being asked to provide protection or subsidy that gets enjoyed by the developed world.
Matters aren't made any better with public declaration by some sections of the garments industry actually suggesting that their orders are up, their expansion plans in place and even buyers looking upbeat about prospects for the future.
It's somewhat disquieting that a business group that has some 30 odd parliamentarians to speak of its problems needs a caucus and goes to show that dialogue has to be substantive and not just based on knee-jerk reactions. (The writer is a former head of corporate and regulatory affairs of British-American Tobacco Bangladesh and former CEO of Bangladesh Cricket Board. He can be reached at mahmudrahman@gmail.com)