Of Connectivity & Development

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Share on linkedin
LinkedIn

As you are the Vice-President of SAARC Chamber, how do you evaluate our connectivity issues?
As neighboring nations, Bangladesh, India, Nepal and Bhutan have united to work and implement ambitious multi-modal systems such as road, rail, waterways and airways, joint power projects and telecommunication networks. Linking these four countries through efficient roadways will open up the entire region to turn it into a significant channel of trade to gain economic prosperity. It is very important that the connectivity between Bangladesh and India be developed as a pre-condition to regional connectivity. This action will advance the required infrastructure through enhancing multimodal transport to subsequently facilitate the BBIN economic coalition with a greater dimension. These two nations have encountered difficult phases at times but we currently have a mutual relationship with India.
With the consideration of this improved situation, there is a need to restore our pre-partition communication network and further improve it to build up a solid economy in the region. The need for a common transport policy for the entire region is necessary; furthermore, there is a necessity to understand that perception of connectivity varied between India and Bangladesh.
We are aware that this regional entity has some unique attributes. These attributes could potentially ensure significant benefits to the participating countries through deepening of economic cooperation and integration by liberalizing their respective connectivity like transport, trade, and investment to march forward and eventually match with global economic aspirations.

What are the possibilities we can look forward to regarding the China plus one issue?
The pattern of investment in China is undergoing a change; this is primarily because of the hike in wage structure – approximately 25% a year in major industry sectors. Additionally, China is currently experiencing some concerning inflationary trends, the effects of which are pushing up the prices of everything from a bowl of rice to apartment rentals. Finally, China has unified its corporate income tax system last year, bringing the previous low rates that foreign businesses enjoyed in some cases from 15 to 25%.
This is why it has become a matter of concern for the foreign investors to consider finding another country which can supplement their investment decisions. ‘China Plus One’ is an international business strategy that consists of the expansion of one company’s current operations in China to a Southeast Asian nation. Many interested countries are now looking for a nation that has low wage rates, strong infrastructure and a suitable atmosphere for business. However, the primary concern and question is – why has Bangladesh been unable to take hold of the opportunity given that the nation has the advantage of low wages and abundant manpower? Understandably, the problems for Bangladesh include its deficient infrastructure, unskilled manpower, political instability and last but not the least, volatile capital market. The problems are daunting and must be solved quickly and efficiently. But in the absence of corrective measures, the situation will further worsen in the days to come. Given the opportunity, it is in the interest of the nation that the policymakers should chalk out a roadmap so that some visible improvements are in place before it is too late.

Mahbubul Alam President Chittagong Chamber of Commerce and Industry
Mahbubul Alam
President, Chittagong Chamber of Commerce and Industry

Strategically Bangladesh is between two superpowers; what are the pitfalls and opportunities from that situation? What are your thoughts on the future of the port city?
Chittagong is the commercial capital of Bangladesh blessed with a principal maritime port through which more than 92% of our total seaborne cargo is handled. The port can serve the trade necessities of the landlocked northeastern states of India, Nepal, Bhutan and a vast region of Myanmar with respect to their export and import activities. Moreover, it has a unique geographic location at the bridgehead point of the world’s two most vibrant economic blocks SAARC and ASEAN. Another remarkable feature of the location is that it can effectively serve the market of 2.3 billion people of this vast region, creating lower costs for necessary transactions. The proposed Trans-Asian Railway and Asian Highway would also link this commercially important city with China, Myanmar, Thailand and Vietnam as well. Presently, the four neighboring countries – Bangladesh, India, China and Myanmar – are united to improve transportation like road, rail, waterways and airways, joint power projects and telecommunication networks which will advance the BCIM economic corridor. Therefore, Chittagong has all the potential and prospects as a transnational hub for South and Southeast Asia at the same time. Unfortunately, we are far from utilizing these potentials. Bay Terminal, Karnaphuli Tunnel, 3 Economic Zones, Ring Road, LNG terminal and many such sky high projects are presently being worked on. There must be notable progress under a national consensus as the accomplishment of such mega projects can make Bangladesh one of the leading economies of the world within next 30 years.

You are involved with the Kunming Chamber as well. From that perspective, could you elaborate upon how connectivity lead to a new dimension in our economic development?
Bangladesh, China, India, and Myanmar have made remarkable progress in establishing economic corridors with a view to enhancing regional cooperation for gaining economic footholds. Recent meetings provided us with the opportunity to exchange views and determine the future course of action in making the vision come true. I would like to express my gratitude to Yunnan Provincial Federation of Industry & Commerce for organizing Meetings on Cooperation Federation of Chambers along BCIM.
The advantages that materialize from such regional forums are:
i) Easy market access
ii) Widened scope for realizing complementarities among countries of the group
iii) Better utilization of land, labor force, and available natural resources
iv) Economic development within and outside the forum
(v) Development of solid strategic alliances
(vi) Exchange of technology
Comprehensive market access to the larger economies such as India and China could open up opportunities for diversifying and expanding the export capacity of the less developed economies of the regional grouping such as Myanmar and Bangladesh. Market access to India would encourage domestic, Indian, Chinese and other country’s Foreign Direct Investment (FDI) in such potentially lucrative activities such as agro-processing, readymade garments, textile, cement, fertilizer, metal products in Bangladesh targeting the neighboring markets.

“As neighboring nations, Bangladesh, India, Nepal and Bhutan have united to work and implement ambitious multi-modal systems such as road, rail, waterways and airways, joint power projects and telecommunication networks.”

What are your hopes and vision for the future of Bangladesh?
Bangladesh has now been regarded as a growing economy of the world which has advanced in many development indices and has become a model for many other countries of the World. Bangladesh is an emerging economy bridging between two vibrant economic regions, SAARC and ASEAN.
There is no doubt about the potentials of our country as we have a huge competitive labor force, a very strong private sector leading the economy, positive export scenario and highly appreciable GDP growth. All of these elements are ready at hand to draw the picture of a scenic future. Now it is up to the Government, political leadership, policymakers and business leaders on leading the path to creating the best possible use of these potentials to make Bangladesh a middle-income country by 2021. This is the high time progress towards the vision collectively in order to attain national aims and objectives.

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Share on linkedin
LinkedIn
On Key

Related Posts

THE EXTENDED 20s

The new life stage changing the way we think of target audiences. Or is it forever 20s?  We will see in time. But there is

TRADING AMONG FRIENDS

Implications of ‘friendshoring’, the newest term in global trade, on China’s dominance as the world’s manufacturing hub.   According to UN research, as geopolitical conflicts

Leave a Reply

Your email address will not be published.