Changes needed in economic pattern
Local and regional institutions should be restructured to benefit from global business, for which political willingness is highly important, economists said yesterday. “The core challenge for South Asian countries is to restructure their economic pattern,” said Rehman Sobhan, chairman of the Centre of Policy Dialogue, at a session on the opening day of the two-day SANEM Annual Economists’ Conference 2018. The Asian countries are holding major foreign currency reserves, he said, citing China’s reserves of $3 trillion to further his point.
India and China should maintain a good relationship with each other to benefit from the global value chain and integration is required among the Asian countries. Sobhan’s comments came at the session titled “Institutions, Governance and Trade in the Context of Emerging Global and Regional Challenge – A South Asian Panel Discussion in Memory of Dr Saman Kelegama”. Speakers said Bangladesh’s position in the global value chain is at now the lower end: buyers purchase items made in the country at a low cost and sell them at prices that are six to seven times higher.
The united states of america will have to limit the gap in the world cost chain and groups ought to enhance their negotiation skills, Sobhan said.
Bangladesh’s change gap has widened notably in current instances and its export’s capacity is low too.
For instance, Vietnam, a competitor of Bangladesh in the world market, has seen its export profits pass the $200 billion-mark already. “But Bangladesh is nevertheless a ways away from the level,” he added.
The authorities focus on how the least-developed countries like Bangladesh can expand their participation in international trade, stated Mustafizur Rahman, a distinctive fellow of the CPD.
The developed nations did no longer observe on their dedication made at a LDCs convention in 2011 to decrease the quantity of LDCs to 24 from 48, he said.
They had additionally promised that the export volume of the LDCs would be extended to 2.80 percent of the world share from 1.40 percent, in accordance to Rahman.
“But, they failed to preserve their each promises.” The economist said nearby and regional establishments put pressure on world businesses like the World Trade Organisation to implement the commitments. two
Political willingness is important to improve the regional institutions like the South Asia Free Trade Agreement and South Asian Association for Regional Cooperation. It is no longer viable to put in force the regional economic quarter and the economic union by way of 2020 in the absence of a political willingness, he said.
There are three types of enterprise — policy, regulatory and implementer — in Bangladesh. “We need to take the initiative to make stronger the organizations to make sure the activity of the workers and the producers.”
Rahman also said the u . s . ought to end capital flight. two
According to the Panama and Paradise Papers, $5 billion has been laundered from the country. Of the sum, eighty percentage had been laundered thru mis-invoicing, he added. Democracy is a pivotal factor in strengthening institutional capability, stated Posh Raj Pandey, chairman of the Kathmandu-based South Asia Watch on Trade, Economics and Environment. “Stable democratic scenario will also increase financial outcome,” he added.
Kunal Sen, a professor of the University of Manchester; Prabir Dey, a professor of the Research and Information System for Developing Countries in India; and Dushni Weerakoon, govt director of the Institute of Policy Studies, Sri Lanka, additionally spoke.
Selim Raihan, government director of the SANEM, moderated the session.