Industrialization in Bangladesh
Introduction: Industrialization is the prime concern of all economies, especially in developing countries. Since independence, numerous policies and efforts have been made to accelerate the pace of industrialization in Bangladesh. But till today our industrial sector has summoned very weak and stagnant.
Industrialization
in the past: Industrial structure of Bangladesh is
very weak since the beginning of British rule. During British rule, no mills
and factories were established in this region of British India. Moreover,
during British rule, our traditional cotton mills were destroyed. After the
division of the Indian subcontinent step-motherly attitude was followed by
Pakistani Rulers. During this very few development programs was implemented.
After the liberation of Bangladesh in 1971 the abandoned industries were
nationalized. But for want of skilled management, lack of prudence, and
long-continued labour discontent, these nationalized industries incurred losses
every year. In such a situation the government has again decided to hand over
the ownership and management of the nationalized industries to private
entrepreneurs. Even this privatization process has not given the expected
development.
Problems of
Industrialization in Bangladesh: in the case of
industrialization, Bangladesh is at the nascent stage. The growth of own
industrial sector is being constrained by a number of factors. These are
identified as follows:
- Poor growth of domestic economy: One of the basic constraints to the growth of manufacturing in Bangladesh is the small size of the domestic market resulting from the low level of national income since the bulk of the income originates in the rural sector, the growth of the domestic market-oriented industrial sector depends on the invigoration of the rural economy.
- Deficiency of capital: Most people in our country are poor. Their per capita income is too poor for them to save capital for production.
- Weak investment base: Due to colonial economic operations Pakistani economic discrimination and post-independence nationalization, the growth of entrepreneurship has become slow in Bangladesh. There is a lack of expert courageous and efficient investors in our industrial sector.
- Weak infrastructure: In our country, all basic facilities such as power supply, telecommunications, water, and gas are disturbed. Besides, the shortage of electricity and gas is hindering the process of industrialization.
- Unskilled human resources: Bangladesh is lacking in a skilled workforce including engineers, technicians, technical professionals, doctors, etc. Vocational training is absent in our education system.
- Lack of developed technology: The technology that is used in our industrial sector is not developed and upgraded which discourages the flow of investment.
- Regulatory barriers: Our regulation of the economy has long been considered a major constraint to industrialization. Private entrepreneurs are frustrated due to the regulatory environment.
- Ineffectiveness of industrial policy: The uncertainty of policy change is an important reason for the discouragement of investment.
- Undeveloped transport and communications: Undeveloped transport and communication hinder the smooth transportation of raw materials, produced goods, and movement of labour, etc. which ultimately hinders investment in the industry.
- Political instability: Political
instability, hartal, strike, etc. pose serious hindrances in the way of
industrialization.
Prospect
for industrialization: In spite of some constraints, we have a bright future to build an
industrially developed economy. To make it successful we have to take some
steps quickly. These are:
- Developing rural industries: We must develop an industrial culture in the rural economy. Special emphasis must be given to developing and modernizing the rural industry.
- Improved infrastructural facilities: Infrastructural and utility services should be improved to receive more foreign investment.
- Modification of labour laws and policy: Existing labour laws should be modified to ensure workers' safety and security.
- Continuing the privatization process: The state should carefully review the privatization program.
- Taking export promotion measures: To promote effective export, and export
market, product diversification and quality improvement are essential.
Conclusion: In order to accelerate the pace of industrialization we
need to take courageous measures. In this regard, a balanced industrial policy
facilitating foreign investment, multinational companies, as well as domestic
industries, is a must. Specific decisions and measures should be taken to get
rid of losses from state-owned enterprises. Her experience in industrially
developed countries will help us.
