Strengthening capacities for more export
Tuesday, 1 December 2009
Firoz Ahmed
Bangladesh enjoys duty-free access for some of its goods in the markets of some developed and semi-developed countries. Discussions and negotiations are on for obtaining some more concessions for the country's export products, particularly in relation to its main export item, ready-made garments. Bangladesh does certainly need preferential treatment for its products for easier market access and also for promoting the growth of its economy on a sustained basis. Preferential treatment can help boost the competitiveness of a host of export products from this country as well as enhance the potential of products that have not yet been exported.
An integrated capacity development programme for exporters is a sine qua non for promotion of exports. Through its proper implementation, such a programme can have some positive impact. Capacity building for exports, be it in areas of the government or among targeted ones in the private sector, should be considered a high-priority on-going exercise. It must go ahead apace and smoothly to pave the way for greater exports.
There is much for the government to do directly to energise export activities. It can take special measures to provide uninterrupted supply of power exclusively to export-oriented industries. Some export items are getting incentives in different ways. Export subsidies; the incentive regime for the exporters can, in varying degrees, be extended to a range of products that have medium-and long-term prospects for sustained growth on a competitive basis. This will help boost overall export volumes. Scrupulous administration must be ensured while expanding the incentives within the affordable means of the government. Such incentives can take various forms like lowered electricity tariff for export-oriented enterprises or reduced lending rates on loans going to exporters. Meanwhile, it is of utmost importance to build necessary infrastructures in the public sector. That would be counted as useful and supportive by the exporters.
Modernisation and expansion of the port facilities will be particularly helpful for lowering the costs of doing business and enhancing competitiveness of export products. One would like to particularly note here the pivotal role of the Chittagong port. This port is central to export activities but it is reportedly facing fresh troubles, being handicapped by various inefficiencies. That makes its handling time the worst in the region. Fast handling of export cargoes at least possible costs is one of the keys to success in the export trade. It is here that the government will require to provide a major input to increasing exports by further upgrading and expanding the capacities of Chittagong port.
There are also other activities that should indirectly aid increased export activities. Here the related areas for actions include improvement of the law and order situation, more pro-active fiscal and monetary policies in respect of export oriented enterprises, putting in place and an appropriate legal framework for exporters or those seeking to establish export-oriented industries in Bangladesh on joint-venture basis with foreign partners.
Bangladesh enjoys duty-free access for some of its goods in the markets of some developed and semi-developed countries. Discussions and negotiations are on for obtaining some more concessions for the country's export products, particularly in relation to its main export item, ready-made garments. Bangladesh does certainly need preferential treatment for its products for easier market access and also for promoting the growth of its economy on a sustained basis. Preferential treatment can help boost the competitiveness of a host of export products from this country as well as enhance the potential of products that have not yet been exported.
An integrated capacity development programme for exporters is a sine qua non for promotion of exports. Through its proper implementation, such a programme can have some positive impact. Capacity building for exports, be it in areas of the government or among targeted ones in the private sector, should be considered a high-priority on-going exercise. It must go ahead apace and smoothly to pave the way for greater exports.
There is much for the government to do directly to energise export activities. It can take special measures to provide uninterrupted supply of power exclusively to export-oriented industries. Some export items are getting incentives in different ways. Export subsidies; the incentive regime for the exporters can, in varying degrees, be extended to a range of products that have medium-and long-term prospects for sustained growth on a competitive basis. This will help boost overall export volumes. Scrupulous administration must be ensured while expanding the incentives within the affordable means of the government. Such incentives can take various forms like lowered electricity tariff for export-oriented enterprises or reduced lending rates on loans going to exporters. Meanwhile, it is of utmost importance to build necessary infrastructures in the public sector. That would be counted as useful and supportive by the exporters.
Modernisation and expansion of the port facilities will be particularly helpful for lowering the costs of doing business and enhancing competitiveness of export products. One would like to particularly note here the pivotal role of the Chittagong port. This port is central to export activities but it is reportedly facing fresh troubles, being handicapped by various inefficiencies. That makes its handling time the worst in the region. Fast handling of export cargoes at least possible costs is one of the keys to success in the export trade. It is here that the government will require to provide a major input to increasing exports by further upgrading and expanding the capacities of Chittagong port.
There are also other activities that should indirectly aid increased export activities. Here the related areas for actions include improvement of the law and order situation, more pro-active fiscal and monetary policies in respect of export oriented enterprises, putting in place and an appropriate legal framework for exporters or those seeking to establish export-oriented industries in Bangladesh on joint-venture basis with foreign partners.