Bailout Measures for Import-Substituting Products
4 Pages Posted: 24 Mar 2014
Date Written: March 21, 2014
The traditional agrarian economy of Bangladesh is set to be transformed into an industrial one. According to statistics, contribution of industry to Bangladesh's gross domestic product (GDP) is increasing day by day. It was 21.7 per cent in 1991, 25.9 per cent in 2001, 28.5 per cent in 2010 and 31.98 per cent in 2012-13 fiscal year (FY). On the other hand, contribution of agriculture to the GDP has been falling: 30.4 per cent in 1991, 24.1 per cent in 2001, 18.6 per cent and 18.7 per cent in 2012-13 FY. According to 'Vision 2021', Bangladesh would become a middle income country by the year 2021. To achieve this vision, contribution of the industry to the GDP will have to be increased up to 40 per cent.
The government has identified 31 industrial sectors including agro-based and agro-processing industry, human resource export, shipbuilding, renewable energy (solar power, windmill), tourism, basic chemicals/dye and chemicals, ICT and ICT-based service, readymade garment industry, pharmaceutical industry and jute and jute products etc as 'thrust sectors' in the National Industrial Policy 2010. Besides, 11 SME sectors, namely electronics and electrical, software-development, light engineering and metal-working, agro-processing/agri-business/plantation agriculture/specialist farming/tissue-culture and related business, leather-making and leather goods, knitwear and readymade garments, plastics and other synthetics, healthcare and diagnostics, educational services; pharmaceuticals/cosmetics/toiletries, fashion-rich personal effects, wear and consumption goods were identified as SME booster sectors in the SME Policy Strategies 2005.
First and foremost objective of identification of these thrust sectors or booster sectors is to promote development of these sectors and provide various types of monetary and non-monetary supports for their further growth. A series of development interventions/projects were designed, developed and being implemented by several government/semi-government/non-government organisations to foster growth of these sectors. The SME Foundation is working with 11 booster sectors and implementing cluster-based SME (small and medium enterprises) development approach to strengthen capacity and increase growth of these sectors by facilitating, advocating, creating and maintaining an SME-friendly business environment with its limited resources.
With all these promotional, development and facilitating activities, the government should have a bailout arrangement in its existing or upcoming activities. Development projects could be designed and implemented to identify native products which are going to be abolished in the absence of little nursing. Production of coconut oil in Bangladesh is a case in point.
Keywords: Import substitute products, Coconut Oil Cluster, SME Cluster of Bangladesh, Bailout for seek industries, Bangladeshi Seek Industries
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