Emerging as a middle-income country
Sunday, 10 February 2008
Shahiduzzaman Khan
THE first ever non-resident Bangladeshi (NRB) conference was held late last year with a pledge to help the country become a middle-income state by 2021 with long-term contribution by the NRBs in the different fields of development. The year 2021 also coincides with 50 years of Bangladesh's independence and the experts say the goal can only be achieved with active support from citizens both at home and abroad,
Besides millions of skilled, semi-skilled and unskilled workers being employed abroad, a good number of Bangladeshi scholars and professionals are living in many developed countries and contributing extraordinary expertise to the development of those countries. Many of these scholars and professional want to enrich their homeland by contributing their expertise through direct or indirect involvement. As such, the government needs to formulate a policy framework to identify the massive challenges and opportunities in the country. It also requires to define a strategic vision and a roadmap to act accordingly. The NRBs, however, want the government to take initiative for bringing back the scholars and professionals to the country for contributing towards its development, as has been done by India and Malaysia.
The Constitution may be changed to give the NRBs dual citizens and the same rights enjoyed by resident Bangladeshis. The government has received a proposal to establish a development bank created with remittances received from NRBs. The bank may finance development projects in numerous sectors including health, education, energy and infrastructure. The NRBs are also considering setting up of an IT platform to provide a creative outlet for strategic interventions and look for job opportunities here. They are expected to find ways to strengthen linkages through which expatriates can secure investments, assist in education, share their expertise and extend their moral support.
The NRB conference in Dhaka undoubtedly was a pioneering initiative, but it is common knowledge that the vast majority of the participants, or people involved with this effort, were the educated elite who are residents of the developed countries. The lower income section of the NRBs, who make up the majority of this equation, did not have any representation at all, and since they form the backbone of the foreign exchange remittance pipeline, it is time they receive the attention and recognition they so utterly deserve.
Bangladesh has emerged as one of the top ten remittance receiving countries in the world, as the expatriates remitted $5.48 billion last year. A substantial amount of the remittances was from the labourers working in Malaysia and Middle-East countries rather than from the scholars and professionals. Most of the NRBs are making coordinated efforts to get involved with the affairs of Bangladesh. They must continue such endeavours to ensure that the skills developed abroad by Bangladesh's citizens can be used to the fullest advantage by the nation. The government must ensure all-out cooperation in such endeavour of the expatriates.
The NRBs are now playing a leadership role in many renowned organisations, institutions and industries all over the world and their successes filled the hearts of the countrymen with pride. It is now necessary, more than ever before, to create the environment and opportunity for them to make long-term contribution to the socio-economic progress of the nation.
The conference in Dhaka provided an occasion for NRBs to drill down into some of the challenges and opportunities facing Bangladesh today and to propose a strategic solution where they could extend a helping hand. Making the NRBs voter, change in the behaviour of bureaucrats, improper behaviour at airport and NRBs' facilities, opening Bangladesh embassy and consulate in places abroad, developing skill of manpower, and means of quick sending of remittances were, among others, that came up for close scrutiny in the conference.
On preparing of voter list for NRBs, it was mentioned that some election commissioners had already visited the UK regarding voter listing of Bangladeshi expatriates. The EC will share its experience with the government along with recommendations and the government will think about the next step. On behaviour of bureaucrats and dealings in airport, it was decided that a separate counter will be set up for NRBs at airport. Visa form of NRBs will be uniform and rationalised.
A number of expatriate financial analysts called for concerted efforts to create a secure atmosphere and regulatory regime that will help increase domestic and foreign investment and enhance the contribution of NRBs to nation-building. Some termed the country's current situation 'much better' for making investment decisions and said Dhaka did not patronise inward or outward terrorist activities.
The experts proposed special services for the expatriates to encourage them to invest in their motherland and said expatriate Bangladeshis could now invest $10 to $15 billion at home. Bangladesh can grasp the opportunities of attracting funds available globally these days. As such, the country should create its own industrial base rather than depend on contract-manufacturing, which could be dangerous if international players switch it off. Floating the idea of declaring 2008 the 'Invest in Bangladesh Year,' an entrepreneur said that Bangladesh could be a 'savings destination' instead of a mere remittance destination for the money earned by expatriates. A tripartite partnership consisting of the government, local private sector and the non-resident Bangladeshis was suggested for creating and using business opportunities, such as investment in the share market. If the rule of law takes its root strongly, both domestic and foreign investment will automatically increase. However, it is regrettable that the country's investment promotion agency, the Board of Investment (BoI), had not even updated its website. NRBs had not received any response from the BoI even after contacting it about possible investment. This is a serious complaint, indeed!
More importantly, the country wants talented NRBs to come and use their talents in the development of their nation. The NRBs have so far invested around $1.0 billion in the US Dollar Premium Bond and US Dollar Investment Bond since introduction of these instruments in late 2002. To encourage more investments by the NRBs in these bonds, the Bangladesh Bank has decided to facilitate the investment process further. As a part of the move, the central bank has taken steps to bring uniformity in the application forms of the foreign currency accounts in different banks. If any NRB purchases bonds worth $1.0 million or above, he or she will be treated commercially important person (CIP).
The UK and the USA have a large and growing Bangladeshi population. Economically, Bangladesh has benefited greatly from the presence of Bangladeshis in these countries. In the past, the British and American Bangladeshis have sent large remittances to support their relatives in Bangladesh. But more recently economically more prosperous ones have started to invest here too in commerce and industries.
However, what the government and the policy makers in Bangladesh failed to notice is that the these expatriate Bangladeshis have much more to offer than just cash. The second generation British and American Bangladeshis can be a force for good in Bangladesh, and, if utilised effectively, can introduce a dynamism and energy, which is badly needed in the country. The question is: what needs to be done and how can this group be enticed to consider Bangladesh as a destination for the investment of their professional skills?
Bangladesh needs to be bold and radical here. Key areas where the use of NRB skills and expertise can be utilised should be identified. These could be IT, tourism, finance, and local government. Once this is done a pilot scheme can be devised to recruit a number of NRB professionals in key sectors on short term contracts. In the long run, the country will gain more as these people will certainly 'deliver' and the country will gain.
THE first ever non-resident Bangladeshi (NRB) conference was held late last year with a pledge to help the country become a middle-income state by 2021 with long-term contribution by the NRBs in the different fields of development. The year 2021 also coincides with 50 years of Bangladesh's independence and the experts say the goal can only be achieved with active support from citizens both at home and abroad,
Besides millions of skilled, semi-skilled and unskilled workers being employed abroad, a good number of Bangladeshi scholars and professionals are living in many developed countries and contributing extraordinary expertise to the development of those countries. Many of these scholars and professional want to enrich their homeland by contributing their expertise through direct or indirect involvement. As such, the government needs to formulate a policy framework to identify the massive challenges and opportunities in the country. It also requires to define a strategic vision and a roadmap to act accordingly. The NRBs, however, want the government to take initiative for bringing back the scholars and professionals to the country for contributing towards its development, as has been done by India and Malaysia.
The Constitution may be changed to give the NRBs dual citizens and the same rights enjoyed by resident Bangladeshis. The government has received a proposal to establish a development bank created with remittances received from NRBs. The bank may finance development projects in numerous sectors including health, education, energy and infrastructure. The NRBs are also considering setting up of an IT platform to provide a creative outlet for strategic interventions and look for job opportunities here. They are expected to find ways to strengthen linkages through which expatriates can secure investments, assist in education, share their expertise and extend their moral support.
The NRB conference in Dhaka undoubtedly was a pioneering initiative, but it is common knowledge that the vast majority of the participants, or people involved with this effort, were the educated elite who are residents of the developed countries. The lower income section of the NRBs, who make up the majority of this equation, did not have any representation at all, and since they form the backbone of the foreign exchange remittance pipeline, it is time they receive the attention and recognition they so utterly deserve.
Bangladesh has emerged as one of the top ten remittance receiving countries in the world, as the expatriates remitted $5.48 billion last year. A substantial amount of the remittances was from the labourers working in Malaysia and Middle-East countries rather than from the scholars and professionals. Most of the NRBs are making coordinated efforts to get involved with the affairs of Bangladesh. They must continue such endeavours to ensure that the skills developed abroad by Bangladesh's citizens can be used to the fullest advantage by the nation. The government must ensure all-out cooperation in such endeavour of the expatriates.
The NRBs are now playing a leadership role in many renowned organisations, institutions and industries all over the world and their successes filled the hearts of the countrymen with pride. It is now necessary, more than ever before, to create the environment and opportunity for them to make long-term contribution to the socio-economic progress of the nation.
The conference in Dhaka provided an occasion for NRBs to drill down into some of the challenges and opportunities facing Bangladesh today and to propose a strategic solution where they could extend a helping hand. Making the NRBs voter, change in the behaviour of bureaucrats, improper behaviour at airport and NRBs' facilities, opening Bangladesh embassy and consulate in places abroad, developing skill of manpower, and means of quick sending of remittances were, among others, that came up for close scrutiny in the conference.
On preparing of voter list for NRBs, it was mentioned that some election commissioners had already visited the UK regarding voter listing of Bangladeshi expatriates. The EC will share its experience with the government along with recommendations and the government will think about the next step. On behaviour of bureaucrats and dealings in airport, it was decided that a separate counter will be set up for NRBs at airport. Visa form of NRBs will be uniform and rationalised.
A number of expatriate financial analysts called for concerted efforts to create a secure atmosphere and regulatory regime that will help increase domestic and foreign investment and enhance the contribution of NRBs to nation-building. Some termed the country's current situation 'much better' for making investment decisions and said Dhaka did not patronise inward or outward terrorist activities.
The experts proposed special services for the expatriates to encourage them to invest in their motherland and said expatriate Bangladeshis could now invest $10 to $15 billion at home. Bangladesh can grasp the opportunities of attracting funds available globally these days. As such, the country should create its own industrial base rather than depend on contract-manufacturing, which could be dangerous if international players switch it off. Floating the idea of declaring 2008 the 'Invest in Bangladesh Year,' an entrepreneur said that Bangladesh could be a 'savings destination' instead of a mere remittance destination for the money earned by expatriates. A tripartite partnership consisting of the government, local private sector and the non-resident Bangladeshis was suggested for creating and using business opportunities, such as investment in the share market. If the rule of law takes its root strongly, both domestic and foreign investment will automatically increase. However, it is regrettable that the country's investment promotion agency, the Board of Investment (BoI), had not even updated its website. NRBs had not received any response from the BoI even after contacting it about possible investment. This is a serious complaint, indeed!
More importantly, the country wants talented NRBs to come and use their talents in the development of their nation. The NRBs have so far invested around $1.0 billion in the US Dollar Premium Bond and US Dollar Investment Bond since introduction of these instruments in late 2002. To encourage more investments by the NRBs in these bonds, the Bangladesh Bank has decided to facilitate the investment process further. As a part of the move, the central bank has taken steps to bring uniformity in the application forms of the foreign currency accounts in different banks. If any NRB purchases bonds worth $1.0 million or above, he or she will be treated commercially important person (CIP).
The UK and the USA have a large and growing Bangladeshi population. Economically, Bangladesh has benefited greatly from the presence of Bangladeshis in these countries. In the past, the British and American Bangladeshis have sent large remittances to support their relatives in Bangladesh. But more recently economically more prosperous ones have started to invest here too in commerce and industries.
However, what the government and the policy makers in Bangladesh failed to notice is that the these expatriate Bangladeshis have much more to offer than just cash. The second generation British and American Bangladeshis can be a force for good in Bangladesh, and, if utilised effectively, can introduce a dynamism and energy, which is badly needed in the country. The question is: what needs to be done and how can this group be enticed to consider Bangladesh as a destination for the investment of their professional skills?
Bangladesh needs to be bold and radical here. Key areas where the use of NRB skills and expertise can be utilised should be identified. These could be IT, tourism, finance, and local government. Once this is done a pilot scheme can be devised to recruit a number of NRB professionals in key sectors on short term contracts. In the long run, the country will gain more as these people will certainly 'deliver' and the country will gain.