Industries in new areas

Dhaka, Chitttagong and Khulna are the major industrial hubs and there is hardly any such concentration of manufacturers anywhere else in the country. Such areas do not offer any scope for industrial employment. This is a disconcerting situation because further entry of the labour force in the agricultural sector is difficult or not needed. The conditions of this sector, in terms of creating significant additional employment, are already saturated. In this context, the policy-makers need to address sooner rather than later the issues of growing imbalance in economic growth and development. This purpose can be best served from first forming a regional policy and then implementing it phase-wise after setting the priorities. A major operational thrust of such a policy can be given on efforts to identify first the highest priority areas where economic opportunities are the least. After having done this, it should be planned how these most backward areas can be aided in the way of economic activities or to set up new enterprises in them. From agriculture-based projects to produce new crops for export to light industries, all sorts of new enterprising can be encouraged in these areas. The government will have to build basic infrastructures in them to make them usable by private entrepreneurs. On its own, it can also build various enterprises in them and make them available to private firms for rent or sale on favourable terms. Furthermore, it can think of a broader framework of regional development by creating development promoting zones under a framework of specially 'assisted areas.' Assistance from the government can be extended to private entrepreneurs in these areas for buying lands, building and machineries. Special fiscal incentives can be given to enterprises here in the form of reduction of value added tax (VAT) and import duties on raw materials, lowering of the rate of tariff for power and gas, tax rebate on profits etc. Even industries to be set up in these areas can be promoted by ensuring government preference in the buying of their products when public contracts are awarded. All of these concessions and more will likely create adequate incentives for potential investors to opt out of making their investments in the already congested areas. They will then gain more by setting up their enterprises in the assisted areas. Syed Qamrul Islam Dhaka