A NATIONAL daily in a report early this week has laid emphasis on achieving quick export diversification to reduce staggering dependence on export earnings from single RMG products in view of its risk. But the bigger question that we face now is not how to achieve export diversification, but how to create the least environment to help export at a time when violence and political crisis are hitting hard the economy. If the transports are running in roads and highways, if investors are shying out from the country fearing risks; how the economy will keep on working is the biggest question, instead of how we can think of reducing dependence on single export basket.
The fact that RMG sector alone contributed 81.20 percent to total export earning in 2014 showed such over dependence is highly risky as it stands now. The report has raised genuine concerns for balancing export earning both by diversifying products and market diversification. We believe it a timely warning to avoid putting all eggs in a basket but we have given focus now on beating back the hostile business environment. We must set our house first in order ending political fights and allowing the business friendly environment to return.
As we see, Bangladesh is now passing a hard time when least to speak of foreign investors, even existing garment buyers are not visiting the country to place new orders fearing troubles. The hard reality now is how to continue existing exports in political volatility and reach out to new investors- both local and foreign- to expand exports as well as our export base.
The report appears to be an eye opener to the government and the industry leaders from a broader perspective to think how to develop other export sectors. Since the narrow export base is risky by all means, emphasis must go to developing other traditional and non-traditional export sectors. We also believe, quick export diversification may be achieved with pharmaceutical and ceramic products, ocean going ships, software, frozen food and such other products, which are already high on the list of the country’s exports. .
The RMG sector must achieve higher productivity as well as capacity to produce high edge quality products. Bangladesh is doing it for sometime but the ongoing political crisis is causing serious impediments to the process. The fact that only 20 percent contribution to GDP is coming from exports shows that much needed to be done to accelerate exports.
We know that Bangladesh is enjoying duty-free export access to the European Union (EU); which allows ‘everything except arms’ to the member nations. Other countries like the USA, Australia, Canada, Japan are also giving zero tariffs to other differential rates. Bangladesh has a good prospect but we must sort out political crisis first to take advantage of the facilities available at global market.
