Industries in assisted areas
Saturday, 3 October 2009
Qamrul Islam
MAJOR industries of the country are concentrated in Dhaka and Chitttagong. The other areas, lacking industries have no employment opportunities. When agriculture cannot absorb new workforce, where will they go?
The new government needs to address the issue of growing imbalance in economic growth and development between the regions. It calls for a new policy for a more harmonious development of the regions. After setting the priorities, the new policy should be implemented in phases to achieve the objective. The areas having the least of economic opportunities should get the priority. A plan should be taken they for developing economic activities in the backward areas. From new crops for export, light industries and other enterprises could be encouraged in these areas. The government has to build the basic infrastructure to attract private entrepreneurs to the backward areas. The government can set up the industries to sell them to private firms on favourable terms. It could also allow the entrepreneurs to run the units on rental.
A broader framework of regional development would be the government to develop specially 'assisted areas'. The government can assist the entrepreneurs in buying land, building and machinery for selling up factories. Fiscal incentives like reduced value added tax (VAT), concessional import duties on raw materials and the supply of power and gas at lower rates, could be given to the enterprises.
Even the government can buy their products when public contracts are awarded. Adequate incentives would attract entrepreneurs to prefer those areas for locating their investment sites.
MAJOR industries of the country are concentrated in Dhaka and Chitttagong. The other areas, lacking industries have no employment opportunities. When agriculture cannot absorb new workforce, where will they go?
The new government needs to address the issue of growing imbalance in economic growth and development between the regions. It calls for a new policy for a more harmonious development of the regions. After setting the priorities, the new policy should be implemented in phases to achieve the objective. The areas having the least of economic opportunities should get the priority. A plan should be taken they for developing economic activities in the backward areas. From new crops for export, light industries and other enterprises could be encouraged in these areas. The government has to build the basic infrastructure to attract private entrepreneurs to the backward areas. The government can set up the industries to sell them to private firms on favourable terms. It could also allow the entrepreneurs to run the units on rental.
A broader framework of regional development would be the government to develop specially 'assisted areas'. The government can assist the entrepreneurs in buying land, building and machinery for selling up factories. Fiscal incentives like reduced value added tax (VAT), concessional import duties on raw materials and the supply of power and gas at lower rates, could be given to the enterprises.
Even the government can buy their products when public contracts are awarded. Adequate incentives would attract entrepreneurs to prefer those areas for locating their investment sites.