Diversify exports, bring in more FDI

Bangladesh must put serious effort in finding ways to diversify exports and attract more foreign direct investment to sustain its “very admirable and amazing” economic growth, says the European Union (EU).

Bangladesh has maintained 7 percent growth over the last couple of years, it said. “It’s still a challenge and progress in these areas will depend on domestic reforms agenda,” EU Ambassador in Dhaka Rensje Teerink said.

In an interview with the news agency, she said Bangladesh really needs to look at how it can attract businesses and give confidence to investors that there would be ease of doing business.

“Bangladesh isn’t performing well at all in terms of ease of doing business,” she said.

Bangladesh has gone one notch down in the World Bank’s ranking of ease of doing business, mainly due to the hurdles businesses face at the start of operations.

The country holds the 177th position amongst 190 economies, according to the WB’s Doing Business file 2018.

The ambassador stated in spite of this massive impediment, Bangladesh was developing “so fast” that turning into a higher host for these agencies held excellent possibilities for the financial system “because this (growth) is happening no matter challenges”.

About the government’s graph to set up one hundred economic zones, she referred to a female speaker from the personal zone at Bangladesh Development Forum (BDF).

The authorities take steps to set up one or even 5 monetary zones at first suitable and analyze classes from that, because the diagram for one hundred financial zones sounds right and very bold at the identical time, Teerink said.

In phrases of democratic space, she hopes all contenders will come on board for the country wide elections and “the complete exercise will be free and fair”.

She stated they intently followed democracy, governance and human rights worldwide and emphasised addressing issues in these areas. “For me, it will be an exciting time (being here in election year),” she said, adding that they have already held discussions with the election commission on sending an EU Election Observation Mission if the scenario was determined to be favourable.

On irregular Bangladeshi migrants dwelling in Europe, the ambassador said, “We have made very true progress. Migration has grow to be a big subject in the Europe in the last couple of years.”

The EU and Bangladesh signed a preferred operating manner (SOP) on bringing back all irregular migrants from Europe. A technical crew would be coming to Dhaka soon to witness the progress.

Teerink confused the need for rebranding Bangladesh, saying its whole photograph used to be completely exclusive now than what used to be 10-15 years ago.

She said they would proceed working with leaders of the private and garment sectors to make the whole readymade garment sector International Labour Organisation (ILO)-compliant.

“There is nonetheless some works to be done. Bangladesh labour regulation desires to be ILO standard,” Teerink said, reiterating commitments made in the Sustainability Compact, consisting of respecting labour rights, specially with regard to freedom of association.

The settlement of July 8, 2013 brings together the EU, Bangladesh, the US, Canada and the ILO accompanied by way of employers, exchange unions and different key stakeholders to promote non-stop upgrades in labour rights and manufacturing facility security in the garment and knitwear industry.

Talking about Bangladesh’s aspiration to become a middle-income country, the envoy said it was a properly goal and there was once of direction constantly a threat of the center income trap.

The trap is a theorised financial improvement scenario the place a us of a attains a positive profits (due to given advantages) and gets caught at that level.

“Bangladesh wants to appear at it and export diversification stays the key issue,” she said.

Bangladesh will have to go for accomplishing the GSP Plus status from the EU when it graduates to the developing united states of america bracket in 2021.

As a least-developed country, it has been enjoying zero-duty advantage from the EU under its Everything however Arms scheme given that 1971. Once a developing country, Bangladesh will no longer be eligible for the privilege.

Strengthening place of job safety, improving labour rights, saving the surroundings and lowering corruption are some of the fundamental conditions for receiving the GSP Plus status from the EU, where 60 percentage of Bangladesh’s garment products are sent.