MIC status and role of R&D

While remaining politically committed to help the country attain the middle-income country (MIC) status by 2021, the government can in no way ignore the need for necessary advancement in research and development (R&D) activities. Fortunately, the prime minister herself is aware of this need. Her interest was amply evidenced when she had organised a news conference to announce sequencing of jute gnome. In the field of agriculture, the country's scientists have made commendable headway in developing drought and salinity-resistant rice varieties. Now for rapid industrialisation, more emphasis on R & D will be in order in line with the suggestions made by the country's eminent economists in Dhaka late last week.
In order to hasten the pace of development, Bangladesh has no other alternative but to go for speedy industrialisation. But industries can only flourish through the application of improved and latest scientific innovations made possible through research. Value chains, supply chains and market relationships are changing and business models must adapt to such changes. It is against this backdrop that the senior economists called upon the industries to raise their investment in R&D to catch up with the global standards. Creation of an Endowment Fund, as recommended, for students of different universities to carry out research will help the cause. Admittedly, the country has a large pool of talents who can work wonder given the opportunities at home.
For Bangladesh to achieve its middle-income status by 2021, it will require more than a business-as-usual approach. The average annual GDP growth rate will have to rise from the current level of 6.0 per cent to 7.5-8.0 per cent. Faster growth in turn will depend on four main factors: increased investment, faster human capital accumulation, enhanced productivity growth and increased outward orientation. R&D can play a crucial role in achieving these goals. Resources have to move from low productivity sectors such as agriculture to high productivity sectors such as manufacturing. Bangladesh's accumulated experience in mass manufacturing, strategic location, and labour cost advantage suggest that it should be able to deepen and widen its export basket as well as destinations as it integrates better with the global economy. The country is well placed to expand manufacturing exports given its geographic proximity to the world's two most populous countries as well as other fast-growing economies.
It seems that Bangladeshi scientists and teachers have not yet been encouraged to come up with any new ideas or appropriate innovations. Many scientists born and educated in Bangladesh are now living in North America and Europe and making contribution to the advancement of R & D there. In fact, the problem is a structural one. The institutional structure and government support needed to build and sustain world-class research capability do not yet exist in Bangladesh. There has to be a realisation that a nation cannot move forward without top-rated science, because the tools needed for progress depend on R&D. Unless and until the government and relevant others realise the need for developing research capabilities and appropriate application of the same, the dream of achieving the middle income-country status may continue to elude the nation.