EVEN the importers of energy drinks and similar products can claim that they are contributing to value addition since their efforts involve marketing and distribution. However, it is questionable whether such activities are consistent with the goals of appropriate economic policies for wealth creation from local resources or adding value to them to create sustainable and income generating jobs for the greatest number of citizens.
From paper making to making parts for automobiles, there are many feasible jute-based investment opportunities awaiting the potential entrepreneurs with vision and drive. Investments in such potential jute-based industries can reverse the present gloomy outlook in the jute sector and create a positive impact on the economy by way of import substitution, boosting exports and internal job creation. Clearly, these areas deserve attention of investors, looking for new investment opportunities with the best possible support from the government.
As the government has declared agriculture-oriented industries as the new thrust sector, investments in it could increase income-generating activities for the poor, concentrated mainly in the rural areas, and earn a substantial amount of foreign exchange. The private sector should invest in such industries and the government should facilitate it.
The small and medium enterprises (SMEs) in various industrial or manufacturing sectors have good prospects. Apart from import substitution, these enterprises can create employment for a large number of people over the medium and long terms. Unfortunately, the SMEs are stagnating for many reasons, mainly due to lack of proper institutional credits. Banks and other financial institutions appear more interested to finance trading and services or big industries, but not the SMEs. This skewed policy is, thus, not helping the growth of the SME sector though it can increase industrial output, reduce imports and cut down the number of the unemployed.
Therefore, the SMEs deserve greater attention. Government policies should encourage SME development and the private sector should realise that they would gain by investing in the SMEs.
Accelerating the rate of investments -- specially the desirable investments in industries -- would require more supportive role of the government. Entrepreneurs, in many cases, complain that they could succeed given supportive government policies. They cite lack of power or gas at cost effective rates, tariff structure unduly inflating the costs of imported raw materials or deflating the costs of imported whole products, as among factors for their products being noncompetitive. Therefore, the government needs to pay attention to these factors that are not encouraging industrialisation.
Obaidul Quader
Gulshan, Dhaka
Economic policy for wealth creation
FE Team | Published: October 29, 2007 00:00:00 | Updated: February 01, 2018 00:00:00
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