Kazi Zahidul Hasan :
Bangladeshi enterprises must enhance their productivity and competitiveness in line with their regional and continental competitors to grab the opportunity of globalisation, experts said on Sunday.
They said local enterprises are lagging far behind from global ones in terms of productivity and competitiveness mainly due to the high cost of doing business coupled with poor infrastructure.
“The globalised system of trade and investment has created immense opportunity for Bangladeshi enterprises to grab a significant share of global supply chain. But, they are yet to tap the opportunity mainly due to absence of adequate infrastructure and conducive business climate,” Zaid Bakht, Research Director of Bangladesh Institute of Development Studies (BIDS) told the New Nation.
Besides, local enterprises are not decorated with latest technology, skilled manpower and decent working condition resulting a lower productivity compared to their global competitors.
“Productivity of local ventures can be improved through supply of uninterrupted gas and electricity to them. A better road and rail connectivity and capacity building in Chittagong port and cut in bank interest rate could also enhance their capacity to compete with the global enterprises,” he suggested.
When asked, he said, ensuring a decent working condition will not act as a key factor to improve productivity of the workers. But, this can improve their productivity significantly. “A high-level productivity of the workers would make the enterprises more competitive in the global arena,” he added.
Zaid Bakht expressed his hope that if the government can improve the areas, with inclusion of supportive policies for the enterprises, Bangladesh could become an economic powerhouse by tapping the opportunity of globalisation.
“We all know that globalisation has created the opportunity for the enterprises/ industries of developing countries including Bangladesh. Despite the fact, our enterprises have failed to tap the gains of this process due to lack of ‘total factor productivity,” said Dr Salehuddin Ahmed, former Governor of Bangladesh Bank (BB).
Besides, an impoverished infrastructure in the industries, inadequate and limping energy supply, high finance costs, corruption, red tape, macro-economic instability and lack of innovation are hindering the competitiveness of local ventures, he said.
The former BB Governor said, the local garment industry has already become the integral part of the global supply chain. “But we are yet develop a better working environment for the workers and enhance their productivity in line with its global competitors,” he added.
He, however, pointed out that if productivity of the garments workers is considered, Bangladesh lags behind as productivity here is only 42 per cent compared to more than 70 per cent in China and around 60 per cent in India.
“Not only the workers of garments industry, productivity of other industrial workers including textile, leather, frozen foods, pharmaceuticals, is still remain in lower level compared to their global competitors.
So this is a critical area which needs to improve soon to stay competitive in global market,” he noted.
“We must create a conducive environment to help flourish the local enterprises and their long-term growth. Apart from this, a national level planning and policy diversification is must to ensure sustainable development of our industrial ventures,” said Dr AB Mirza Azizul Islam, former finance adviser of the caretaker government.
He said, a whole package of the government policies, financial and technical assistance and skilled development and training for both entrepreneurs, supervisors and workers are important to increase the productivity and competitiveness of local industries.
“Once we can ensure all the requisites for the enterprises, they will not only contribute the growth of national economy but also become a major player in global supply chain,” he noted.
