Achieving desired economic growth

Ahmed Showkat MasudAchieving desired economic growth is not an easy task for the government when the country's economy has been witnessing a high inflationary pressure as well as the global economy has been presenting a gloomy picture. Ongoing global economic scenario will not support our export sector, mainly readymade garments (RMG) for bargaining to receive better price against their exportable items. That is; our country's RMG exporters will have to accept the existing cheaper prices against their products. Moreover, they will have to adapt with the changing consumption patterns of the major export market like European Union as everybody is aware of the EU's ongoing debt crisis that has created serious economic setback for the European countries. In this situation, if a trade body creates obstacle to direct foreign investment (FDI) by the world's major economies in the country's export processing zones (EPZs) by keeping in mind that Bangladeshi exporters of that related sector will not be able to compete with the foreign investors considering the foreigners will receive preferential treatment from our government. It is understood that some fully owned foreign manufacturing concerns as well as some joint venture manufacturing concerns had been deprived of getting that preferential treatment due to protectionist attitude towards those investors. If this be the situation, our country's image will seriously be tarnished abroad and will have a bad impact on trade ties; not only with those countries willing to invest into our country in the form of FDI, but also with other countries. This example deserves government attention because our country is seriously facing the liquidity crisis right now that can exist for a longer period. However, no doubt, the cheap prices of our RMG items ensure existing global market share for the garment sector. But, we have to remember that the country's remittance from manpower export has been showing a declining trend. To offset that effect; our export sector that is more dependent on RMG segment will have to be more aggressive to explore new markets to grab major market share in the global arena by positioning the diversified export products like medicines, leather items, sea foods, ceramics, ocean going vessels, jute and jute products and many more. For this, joint effort of the government and different trade bodies are a must for promotional activities. By this way, increasing volume of export along with productivity enhancement (by receiving more export orders and maintaining lead time, total quality management and applying just in time method) could help achieve more export earnings, boosting country's economy, and attaining desired economic growth. Maintaining lead time, total quality management (TQM) and applying just in time (JIT) method require continuous improvement of production process and infrastructural development. Both the entrepreneurs and government have to be cautious to play their respective roles in this regard. On the other hand, if import prices of essential consumer items are on the rise, it will reduce foreign currency reserve to pay the huge amount of import bills and will ultimately result in the devaluation of taka. Since, we have to spend huge amount of foreign currency for import, we have no other option other than improving the efficiency in case of revenue expenditure, improving productivity both in manufacturing and agricultural sectors for maximising output and attaining desired economic growth. (The writer can be reached at email: ahmed.masud69@yahoo.com)