Manufacturing prospects for Bangladesh

Image collected
Almost every country was struggling to make sure way to obtain essential products, specifically cleaning resources at the start of corona outbreak. Persons hardly found things such as for example masks, hand gloves, side sanitisers in food markets. Personal protective gear (PPEs) weren't sufficient for medical providers. For household things, some were ordering online but there is delay in supply because of the lockdown.

Indeed, major part of supplies came from China. Hence, the Western countries realised they will be reliant on China for manufacturing things even at crucial situations, with the 'factory of world' already dominating the world trade. This has not been created per day; somewhat China has liked comparative gain over others for many years. In this context, Bangladesh gets the potential to exploit some making prospects.

Before the Industrial Revolution, Asian countries dominated world trade with India and China being two trade giants. India under the Mughal rule accounted for 27 % of the word economy (Source: The Environment Economy: A Millennial Perspective by Angus Maddison). And Bengal possessed significant contribution to India's exports, specifically of textiles items. As the British occupied India, and started deindustrialising, the region's share on the globe economy came down to 3.0 % when the colonial rulers kept India in 1947 ( Source: Inglorious empire: what the British does to India, by Shashi Tharoor).

The Uk shattered the complete socio-economic pattern characterised by thousands of rural industrial units because the Mughal rule. In his monumental work THE ADMINISTRATIVE CENTRE, Karl Marx wrote, "Those small and extremely ancient Indian communities, a few of which have continued down to this working day, are based on possession in keeping of the terrain, on the blending of agriculture and handicrafts, and on an unalterable division of labour, which acts, whenever a new community is started, as an idea and scheme ready slash and dried."

The caste system somehow ensured unalterable division of labour, led to sustainability of Indian rural economy for a large number of years. Will Durant, an American historian, who visited India in 1930, wrote, "The British conquest of India was the invasion and destruction of a higher civilisation by a trading business (the British East India Firm) utterly without scruple or basic principle, careless of fine art and greedy of gain, over-working with fire and sword a country temporarily disordered helpless, bribing and murdering, annexing and stealing, and starting that career of illegal and legal plunder which includes now (1930) eliminated on ruthless for just one hundred and seventy-three years (Source: The Story of Civilisation).

Over the last century, there have been some major occasions that changed the basics of the world financial system. In 1917, the Bolshevik Revolution developed fears of communist movement under western culture. THE FANTASTIC Depression in the 1930s created devastating unemployment and revealed ineffectiveness of 'source part doctrine'. John Maynard Keynes' book titled "THE OVERALL Theory of Employment, Fascination and Money," centered on extending budgetary expenditures by implementing fiscal coverage.

Colonial rule found an end and several independent nations emerged in Asia and Africa. In the last 50-60 years, the developed countries gradually chose shifting of labour-intensive industries to under-developed countries, specifically in Asia.

Now, importers of making goods may search for new production countries after the coronavirus crisis has ended. In that situation, Bangladesh includes a great potential. The advantages that China has loved in attracting manufacturing systems, as explained by trade economists, could be relevant for Bangladesh in the approaching days.

Firstly, China features huge labour force with comparably lower wages. Secondly, China's organization ecosystem of networked suppliers, component makers, and distributors has advanced to make it a far more successful and cost-effective destination to manufacture items. Thirdly, Chinese makers generally operate under a much more permissive regulatory environment in a variety of health, safety, occupation, and environmental rules. And fourthly, China features been accused of artificially depressing the worthiness of its currency to keep the cost of its goods less than those produced by western competitors.

Bangladesh has a large workforce and the wages are still low. The regulatory compliance can be more permissive than that of the western countries. The only conditions that must be addressed happen to be that manpower requires to gain higher skills and the federal government should take correct initiatives. If these are implemented, Bangladesh should be able to grab manufacturing prospect in the post-corona world.
Source: https://thefinancialexpress.com.bd

Tags :

Share this news on:

Previous Story

Trending Topics

Archive