Plea for BD\\\'s joining East Asian production networks

A Japanese economist suggested Monday that Bangladesh apply a new development strategy and come into production networks in East Asia to boost its economy, raising a debate over such looking east.
Production networks means Bangladesh will produce some parts of a product while the remaining ones will be produced in other countries that have comparative advantages.
Local economist Professor Taslim appeared skeptical at the discussion meet, as he said there is a need of a great deal of studies and consultations with the stakeholders about such an economic strategy.
He said Bangladesh is advancing export-led and import-substitution strategy, and "this has proven as appropriate so far".
Professor Taslim noted that Bangladesh has now been facing problems in relation to infrastructure and governance.
"Bangladesh's economy will grow much higher, even to double digit, if the problems are addressed," he told the audience.
Professor Fukunari Kimura, the chief economist at the ERIA (Economic Research Institute for ASEAN and East Asia), came up with the economic- alignment proposition at a symposium styled 'Look east policy: coming into production networks'.
Japan External Trade organisation (JETRO) is the organsier of the symposium. The co-organisers are ERIA (Economic Research Institute for ASEAN and East Asia), BIDS (Bangladesh Institute of Development Studies), PRI (Policy Research Institute of Bangladesh) and FBCCI (the Federation of Bangladesh Chambers of Commerce and Industry).
Dr Zaidi Sattar was moderator at the programme.
Professor Kimura said such type of production networks may work for enhancing stability and resilience against natural and manmade crises.
The professor, however, noted that Bangladesh is connected with both the East and the West.
He said export and import are important parameters for measuring connectivity.
He said Bangladesh exports mainly to the rich countries both in the East and the West but imports from the Asian countries.
Speaking at the function, Dr Mashiur Rahman, economic affairs adviser to the Prime Minister, said Bangladesh's demography is suitable for investment.
"Bangladesh's such working force will remain at least next 4-5 decades," he said.
He noted that many countries are relocating older technologies to Bangladesh to tap economic benefits.
They are reallocating their industries as the population is shrinking over there, he said.
Dr Mashiur Rahman, however, said Bangladesh has some problems for industrialization--and land crisis is one them.
He said lack of international arbitration, legal framework, stable and predictable exchange are also important for foreign investment.
FBCCI director Abdul Haque said Bangladesh's small and medium enterprises (SMEs) have abilities to fit in such production networks.
"Bangladesh's SMEs might explore value chains in automobile parts, bicycles, and electronics," the businessman said.
Professor Shamsul Alam, member at the Planning Commission, and Dr Sultan Hafez Rahman, executive director at the BRAC IGD, also spoke at the symposium.
    jasimharoon@yahoo.com