Diversification of Export Basket for Uninterrupted Export Earnings
The Financial Express, May 2012
3 Pages Posted: 11 Aug 2013
Date Written: May 07, 2012
Bangladesh is considered to have the maximum growth potential among the least developed countries (LDC). Currently, the official size of Bangladesh GDP is US$100 billion (though the real size should be higher than this due to a significant amount of undisclosed wealth in the economy). Bangladesh GDP is growing at 6.0 to 6.5 per cent per year. A remarkable contribution comes from export earnings. Bangladesh earned about $23 billion last year with only one sector i.e. ready-made garments (RMG) contributing more than $18 billion. That means more than 78 per cent of our export earnings come from a single sector. Hong Kong, Singapore and Korea were dependable RMG exporters, but they failed to cope with the quota system and lost international market to Bangladesh, India and China. If such unfavourable situation is faced by Bangladeshi RMG exporters what will then be the total export earnings of Bangladesh? Which sector can replace the largest dependable RMG sector in our country? The workforce in this sector will become unemployed and the government has to think of relocating them in another sector. Otherwise, social unrest may lead to total economic collapse in the country.
Keywords: Bangladesh export, Bangladesh export basket, export from Bangladesh, exportable items of Bangladesh
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