Industry Policy Problems & Prospects

Introduction

The Industrial Policy has amply provided for flourishing the private sector initiatives intone with the flagstones, enunciated in the Article No. 13 of the Constitution of Bangladesh, of property rights in the areas of production management and distribution systems, including by private. The ethos and framework of policy, especially in terms of the overall strategies and institutions, has evolved during the post-independence years in a bid to render the various reform efforts launched by the government more effective and successful. The most historic change, occurred during this period, has been the transition from state-owned and controlled enterprise economy to a liberal market economy with the private sector as the main engine of growth. However, despite repeated attempts at the authoring of policy-making rulebook and motivational efforts made accelerate the pace of industrialization, the payoff inters of indoor Industrial Policy-2010 aims at achieving the Millennial Development Goals (MDGs) and, above all, reducing unemployment and the proportion of the population afflicted by poverty and hunger to less than a half by 2017 through the adoption of short-, medium- and long-term programs that help build a modern and vibrant industrial sector. Industrial Policy-2010also pledges that no effort will be spared in raising the growth rate of the Gross Domestic Product (GDP) to 8% by 2013, further to 10% between 2017 and 2021, and thereby to elevate Bangladesh to the cherished rank of 'middle-income country. trial development, structural transformation and modernize Achieving the recently-announced Digital Bangladesh goal by 2021, and creating employment opportunity for at least one person from each household in order to reduce poverty and unemployment loom large among the central policy objectives of the government. There is no substitute to providing for an environment of flourishing and vigorous development of small and medium enterprises in attaining that goal. Attributing priority to this very fact, National Industrial Policy- 2010 has considered the SMEs as thrust sector given the planned and balanced development of these labor-intensive industries as the engine of growth.

Importance in Bangladesh

In a developing country, industrialization is an essential pre-requisite for rapid and Sustainable economic development and social progress. Rapid industrialization begets the Modernization, structural transformation, and diversification of the economy, technological Progress, accelerated economic and job growth, increasingly growing productivity and incomes, cost-effectiveness and standard of living. These are the universally recognized dynamic determinants of industrialization, which is the reason why the Government of Bangladesh now sees it as of great relevance and importance Government will ensure that industrialization in Bangladesh is environmentally sonant compliant with the health and safety and other standards required under the rules of the WTO. As well, the Government will ensure taking the fullest advantage of its time-waiver on the onset of the compliance with rule-book of such globalist agreements as associated with the WTO, Trade-related Investment Measures (TRIMS), TRIPS, GATS, to the point of achieving globalist standards within the deadline on the ground. The Industrial Statistics Wing of the Bangladesh Bureau of Statistics (BBS) and the management information system of various regulatory agencies, such as the Board of Investment, BEPZA, BSCIC, SME Foundation, Bangladesh Handloom Board, etc., will be strengthened preparatory to the setting up of an information and data bank where investors can find information regarding investment and market opportunities, sources of machinery and technology etc. Coordination between different public agencies will also be fostered to obtain consistent set of information on private investment, output and employment on an ongoing basis from the web-sites of those agencies.

Targets

A vibrant and dynamic private sector will be the indicator for Bangladesh's industrial

Sector. Public sector will play only a complementary role. Public-private partnership will feature

Prominently in continued industrial growth. The three pivotal characteristics of industrial sector of Bangladesh will be: (i) the promotion of domestic content in output; (ii) wherever practicable, the substitution of imports; and (iii) sustainable development and husbandry of exports-oriented industries. In achieving this goal, Improvements in terms of the product-mix, diversification of both product and export-base, Significant upgrading of the product quality-assurance services and amenities, and revamping of the all trade-facilitation incentives and infrastructures will be brought to fruition. The need for balanced and well coordinated regional industrial development, within the bounds permitted by practicality, will not be lost sight of. Foreign Direct Investment (FDI) will be encouraged alongside domestic investment. In exports, an emphasis will be provided so as to switch from a high proportion of extractive output to a high quotient of processed output. So that the proportion of value added related to exports can grow, programmers for the development of domestic skills and technology, and the transfer

of appropriate fore Industrial infrastructure will be in character with Bangladesh's socio-economic backdrop, expedite domestic growth and make her industries internationally competitive. The industrial sector will be well-integrated in the regional and international networks based on regional cooperation agreements and World trade Organization (WTO) that have been signed by the Government of Bangladesh. The industrial sector will be environmentally friendly. The implementation of the Industrial Policy and the ensuing actions by all concerned will comply with relevant national laws, include proviso to foster compliance by firms concerned, and deter failures. Actions by all concerned will also be compliant with the health, safety and other standards required under the rules of the WTO. Prevailing laws and practices related with intellectual property will be upgraded in stages to compatibility with prevailing international standards, codified in TRIPS. Trade-Related technologies will be taken in hand.

Objectives

There are some