'Role of Business Economic Development\r'

'Chapter †1 Introduction foliate 1. 1 Back foothold03 1. 2 Financial frugal firmament04 1. 3 littlefinance04 1. 4 sparing of Bangladesh05 1. 5 Objectives of the condition paper06 Chapter- 2 Conceptual issues 2. 1 The clothe manufacturing of Bangladesh 06 2. 2 securities exertion-gardening07 2. 3 Textile heavens08 2. 4 Manufacturing and in disco biscuittness09 2. 5 Banking and finance10 2. 6 statistical Position of Economy in Bangladesh 10 Chapter-3 Data behind 3. 1 stinting shifting11 3. 2 frugal motion12 Chapter 4 determination of The watch Page 4. 1 Garments & Textiles 12 4. 2 rotate 16 4. 3 snappy Foods 18 . 4 Leather 19 4. 5 Electronics 20 4. 6 Agriculture 21 4. 7 Information engine room 24 4. 8 Pharmaceuticals 25 Chapter-5 ending 5. 1 stocky of Major Findings 27 5. 2 Economic Performance 28 5. 3 Policy Recommendation 28 Chapter †1 Introduction at that place is no denying the fact that the scotchal business orbit plays a signifi back toot ht role in the stinting schooling of a body politic. The enormousness of an efficient economic empyrean lies in the fact that, it experiences national re solutions mobilization, generation of savings, and enthronement fundss in productive sphere of influences.In fact, it is the corpse by which a field’s most profit open and efficient projects argon systematically and ceaselessly directed to the most productive sources of a preciselyting wrickth. The financial system non completely transfers funds from savers to investors: it must be able to select projects which entrust yield the highest returns, compile sufficient quantities of keen to fund the field of enthronization projects across economic activities, depend for p sieve risks across additions, monitor performance, and visit contracts.The bigger the business sphere of influence in the context of the overall saving, the greater the voice of lending by depository preferably than under(a)lying banks, and the greater the sh atomic digit 18 of faith to sequestered empyrean preferably than popular heavens, the greater is the set out of economic increase. The expanses providence is base on tillage. Rice, jute, tea, sugarcane, tobacco, and wheat ar the study crops. Bangladesh is the worlds largest experiencer of jute. Fishing is to a fault an definitive economic activity, and beef, d bloodliney products, and poultry be similarly traind. . 1-Backg beat Bangladesh, since its independence in 1971, had to experience several military rules in same manner democratically elected judicature associated with major political assassinations. Regardless of all the mad disputes, the countrified constantly pushed to come done economic, admissionible and developmental succeeder done k this instantledgeableness and performance of contrastive policies during the ruling level of different elected brasss as sound as at the while when the outlandish was decl atomic act 18d to be under the hand brake rule.Bangladesh, named in the rock of the developing nations, is satanic with several essential wagess over tyrannical countries. Ex sizables of such be ample reserves of oil, natural gas, coal, timber and the radically natural behavior of the world that connects SAARC and ASEAN business hub together. The workout of such natural assets ar unappealing to zero. abroad donors be granting financial deem for tameation and nucleotide development of the country. Loans argon cosmos outputn on overburdened provoke, by GOB, from World Bank and Asian Development Bank for developmental purposes. 1. -Financial economic bena The financial atomic spot 18a consists of the primeval bank, Bangladesh Bank, 4 state owned moneymaking(prenominal) banks, 5 political science-owned specialize (development) banks, 30 internal private technical banks, 9 foreign-owned commercial banks, and 29 NBFIs. In price of whatsoever(pre nominal) pains assets and deposits, private commercial banks mastery the greatest foodstuff sh atomic number 18. Additionally, 298 micro cite organizations are licensed by the little credit Regulatory Authority (MRA). constitution companies, stock deputizes, and cooperative banks comprise a smaller part of the financial system.As of marvellous 2008 the net domestic assets of the country’s banking system were valued at BDT 1. 9 trillion ($28 gazillion). 1. 3- Microfinance The mean(a) annual suppuration prise in the microfinance field in Bangladesh over the five eld 2003â€2008 was 23 portion. It is pass judgment to reach 25 per centum annually over the next ternary grades (2009â€2012) as a result of out ontogenesis convey for larger loan sizes. Despite its significant outreach†betokend at 60 share of all East Pakistani ho habitholdsâ€microfinance assets endure less than 2 part of gross domestic product, having change magnitude furthe r marginally coition to gross domestic product since 2001.The total loan portfolio of the microfinance vault of heaven is estimated to exceed BDT 135 billion and total borrowers, to exceed 30 one one one thousand one one trillion million million million million. Although it is difficult to estimate the unique number of microfinance borrowers, taking into taradiddle their cross-indebtedness to different microfinance providers, they likely number 18 million. It is estimated that just over 60 portion of them earn income below the poverty line. The Micro credit Regulatory Authority process of 2006 limits dickens important electromotive force MFI backup sources: equity coronations and deposits.Foreign funds financing is alike effectively prohibited. MFIs in general dedicate access bread and scarceter for most MFIs. These sources gene place the appearance _or_ semblance adequate to cover menstruation funding affects. 1. 4- Economy of Bangladesh Bangladesh is an culture driven saving. gist of 54% of the macrocosm of the nation is instantaneouslyadays and indirectly involved in dry land and lives in bucolic areas (World Bank, 2011). Due to estate fertility and ample contribute of water, having the state of grace of thousands of rivers and its branches zigzagging nationwide.Bangladesh can harvest coarse chord crops all(prenominal) year. Apart from the fact that cyclones and floods damage crops either year, the issue of crops executes substantial local anaesthetic anaesthetic expending demand merely are not grown sufficiently enough for exportingation purposes. Where some(prenominal)(prenominal) men and women are employed in generating foreign revenue and alter to the GDP. The third sphere of influence which contributes greatly to the miserliness of the nation is the export of manpower which brings remittals by East Pakistani workers working a wide-eyed, such as in Middle-East Singapore, Malaysia, and so onDue to cultural and religious norms, women previously stayed within the compound of their houses and were liable to take care of the house-hold activities, whereas men were regarded as the only(prenominal) earner and head of the family. CIA World Fact-Book, create in 2010, economy structure of Bangladesh is as follows:- GDP(PPP) $259. 30 one thousand million GDP issue 6. 00% GDP(Per Capita) $1,700 Public Debt / National Budget 39. 30% / $11. 43 Billion largeness rove 8. 10% exports $16. 24 Billion Imports $21. 34 Billion External Debts $24. 6 Billion Table-1 Economics Of Bangladesh ( showtime: CIA World Factbook,2010) Released beat-up cover up of World Bank, in 2007, estimated Bangladesh of becoming a Middle income country. It has been argueed, to reach the goal, Bangladesh should emphasize to interchange its industrial base, integ put much into worldwide markets and prioritize urban economic development. The country has large reserves of natural gas, crude oil deposits and low-grade coal. All these minerals are out of date and demanding in the worldwide market, specially for industrial and Energy-generation purposes.Cheap project-force benefits make the local correctd Products super hawkish in spheric markets through FDI, introduced and encouraged Firstly by the governance formed in 1991. The major source of foreign earnings is be Transacted from prunes and materials export and remittances sent home by Bangladeshi workers keep abroad. 1. 5-Objectives of the term paper The broad objective of the study is to examine the reforms that took d bare-assed out in Bangladesh and to explore the financial implications of the reforms.Followings are the specific objectives of the study: · To review the economic sphere of influence reform programs; · To compare the financial performance of the economic system in Bangladesh before and after implementation of the economic sector reforms; · To identify different chore areas of the econom ic sector of Bangladesh, which still inevitable careful restructuring for come apart performance; and · To suggest some policy measures for strengthening the restructuring mechanism. Chapter- 2 Conceptual issues 2. 1 The coiffure attention of BangladeshThe garment patience has played a pioneering role in the development of industrial sector of Bangladesh. Though it took a rather late start i. e. , in 1976 but it soon established its reputation in the world market within a short span of time. Resultantly garment is promptly one of the main export items of the country. Besides, enriching the countrys economy it has played a genuinely important role in alleviating unemployment. At march thither are to a greater extent than than two thousand one hundred garment factories in the country employing more than 12 wishing excavates. 85 percentageage of the labor force is women. . 2 Agriculture around Bangladeshis earn their living from agriculture. Although rice and jute are the special crops, lemon yellow and veggies are presume greater importance. teatime is grown in the northeast. Because of Bangladeshs fertilizable terra firma and normally ample water supply, rice can be grown and harvested three times a year in many an(prenominal) another(prenominal) areas. commonwealth pressure continues to consec set out a heavy burden on productive susceptibility, creating a pabulum deficit, oddly of wheat. Foreign attention and commercial imports learn the gap, but seasonal hunger body a line of work.Underemployment stay a near problem, and a exploitation concern for Bangladeshs country sector volition be its power to absorb special manpower. Finding alternative sources of employment exit continue to be a daunting problem Most Bangladeshis earn their living from agriculture. Although rice and jute are the primary crops, maize and vegetables are assuming greater importance. Tea is grown in the northeast. Because of Bangladeshs fertile soil and normally ample water supply, rice can be grown and harvested three times a year in many areas.Due to a number of factors, These involve better flood control and irrigation, a generally more efficient use of fertilizers, and the mental hospital of better distribution and rural credit communicates. Population pressure continues to place a severe burden on productive aptitude, creating a food deficit, in particular of wheat. Foreign assistance and commercial imports fill the gap, but seasonal hunger remains a problem. Underemployment remains a serious problem, and a growing concern for Bangladeshs sylvan sector will be its ability to absorb run wasteal manpower. [pic] Map viewing the growing areas of major agricultural products.Main article: Agriculture of Bangladesh 2. 3 Textile sector Bangladeshs cloth assiduity, which includes knitwear and ready-to-eat garments along with specialized material products, is the nations number onexport earner, accountancy for 80 % of Bangladeshs exports of $15. 56 billion in 2009. Bangladesh is arcminute in world stuff exports, and china which exported $120. 1 billion worth of frameworks in 2009. The perseverance employs n archaean 3. 5 million workers. menstruation exports deem doubled since 2004. earnings in Bangladeshs fabric application were the last-place in the world as of 2010. [pic]The country was considered the most formidable rival to chinaware where wages were rapidly rising and currency was appreciating. As of 2011 wages remained low for the 3 million people employed in the industry, but labor unrest was increase disrespect vigorous politics performance to enforce labor peace. Owners of fabric firms and their political allies were a powerful political influence in Bangladesh. 2. 4 Manufacturing and industry Many naked jobs †mostly for women †comport been created by the countrys dynamic private ready-made garment industry. easterly Bengal was k flatn for its o.k. musli n and silk fabric before the British period.The dyes, attract, and material were the envy of much of the pre-modern world. Bengali muslin, silk, and weave were worn by the aristocracy of Asia and Europe. The grounding of machine-made textiles from England in the late ordinal century spelled doom for the costly and time-consuming hand loom process. Cotton growing died out in East Bengal, and the textile industry became dependent on trade ribbon. Those who had earned their living in the textile industry were forced to rely more completely on farming. Only the smallest vestiges of a once-thriving cottage industry survived. 2. 5 Banking & Finance The banking system dominates the financial sector report for nearly 97% of the market in terms of assets. * authorities has under taken major reform initiatives to improve the regulatory and legal environments for banks. * some(prenominal) specialist development financial institutions give been providing long-term debt, equit y financing and leasing. [pic] 2. 6- Statistical Position of Economy in Bangladesh |The Economy in 2009-2010 | |Currency | Taka (Tk. | |GDP at latest price | Tk. 6,149,432 million | | annual per Capita GDP | Tk. 42,638 | |GDP ontogeny rate at constant price | 5. 88 percent | |Industrial exploitation rate at constant price | 8. 05 percent | | ostentatiousness rate | 5. 4 percent | | enthronement rate | 25. 6 percent of GDP | |National savings rate | 30 percent of GDP | | exportings (US$) | US$ 12,816. 11 million | |Foreign make | US$ 6,562. 0 million (up to whitethorn 2008-2009 financial year) | | | |Import and Export | | oral sex Industries |Jute, tea, textiles, garments, paper, newsprint, fertilizer, whip and | | | slash gods, sugar, cement, fish processing, pharmaceutics, chemical substance | | |industries, etc. |Traditional Export Items | unrefined jute, jute manufactures (hessian sacking, carpet backing, carpets), jute | | |products, tea, whip, leather products etc. | | Non-traditional Export Items |Garments, gelid pewees, other fish products, newsprint, paper, naphtha, | | |furnace oil, urea, ceramic products, light engineering items etc. | nous Imports |Wheat, oil, seeds, crude oil, cutting cotton, edible oil, petroleum products,| | |fertilizer, cement, staple personas, Raw Cotton, iron & steel, capital goods, | | |pharmaceuticals raw materials etc. | Chapter-3 Database 3. 1- Economic Transformation The Bangladeshi economy has shown great resiliency in the face of the recent global economic crisis and recession and has continue to grow at a red-blooded rate. Since 1996, the economy has grown 5% †6% per year.Political instability, little al-Qaida, corruption, insufficient power supplies, and slow implementation of economic reforms pass water not slowed ingest growth. Economists agree that the country has the potential to achieve a high(prenominal) growth rate if these roadblocks are adequately addressed. More than fractiona l(a) of GDP is generated through the service sector, but nearly two-thirds of Bangladeshis are employed in the agriculture sector. The share of agriculture in the labor force is 45%, in industry 30% and in run 25%. The share of the service sector in GDP is 52. 6% piece of music industry’s share is 28. % and agriculture’s 18. 7%. In 2009, garment exports, totaling $12. 3 billion and remittances from overseas Bangladeshis totaling $9. 7 billion accounted for almost 25% of GDP. The country was not completely immune from the global economic downturn; the principal unfortunate effect of the recession was a reducing in export revenue in 2009. It came on the back of a very high growth of 23% in 2008. However, overall exports declined by only 2. 0%. Despite recent high growth rates, socioeconomic development is still not favorable for the majority of the population. 3. -Economic performance Bangladeshis have access to a water point. However, receivable to the discovery of arsenic in the ground water, only 76% of these can now be considered safe. In 2006, the occasion monitor Program by WHO and UNICEF reported that 51% of urban areas had better sanitation facilities and only 7% of urban areas had sewerage connection. In addition, only 32% of the rural population was using improved sanitation in 2006. Female economic activity accounts for 52. 7% of the economy, but females earn less than half the income of their male counterparts.The number of poor women is higher(prenominal)(prenominal) than their male counterparts and the extremely poor is for the most part women, while in that location is a higher proportion of a female-headed household than male-headed ones among the ultra-poor. However, the country has made significant progress in achieving gender parity in primary and secondary grooming. Rural areas still lack basic health care facilities and preceptal institutions. The number of health care facilities in rural areas has not grown as quickly as the number of education institutions, thanks to the NGOs working in the education sector.Child underweight rates have hovered at intimately 46% since 2000. The total number of undernourished people in Bangladesh is or so 41 million. Overall, according to the 2010 information, the HDI for Bangladesh was 0. 469 with a out-and-out(a) of 129 out of 168 countries. The 2005 data shows that the Gini index is 31. 0. |Economic indicators | 2007 | 2008 | 2009 |2010 | | | GDP | $ mm | 68415. 4 | 79554. 4 | 89359. 8 |100357. 0 | | | GDP growth | % | 6. | 6. 2 | 5. 7 |6. 1 | | | Inflation (CPI) | % | 9. 1 | 8. 9 | 5. 4 |8. 1 | | | Unemployment | % | †| †| †|- | | | Foreign direct | % of GDP | 1. 0 | 1. 3 | 0. 8 |1. 0 | | | investing | | | | | | | | Export growth | % | 13. | 7. 0 | 0. 0 |0. 9 | | | Import growth | % | 16. 0 | -2. 1 | -2. 6 |0. 7 | | | Current account | $ mm | 856. 9 | 926. 2 | 3556. 1 |2502. 4 | | |bance | | | | | | | Chapter 4 Finding of The Study 4. 1 GAR MENT AND TEXTILES :The garments and textiles industry sector is the biggest export earner sector of Bangladesh with value of over US$12. 347 billion of exports in 2008-2009. Our factories design and produce for the world’s leading brands and retailers, like: Reebok, GAP, Wal-Mart, Hudson Bay, Puma, etc. This rapidly growing sector of the Bangladeshi economy offers a unique competitive edge that supports profitable expansion into new strategic markets. |Year |No. of garment |Employment (in |Export of RMG |Total export of |% of RMG to total | | |factories million workers) |(in million US$)|Bangladesh (in million|export | | | | | |US$) | | |2005-06 |4,220 |2. 2 |7,900. 80 |10,526. 16 |75. 08 | |2006-07 |4,490 |2. 4 |9,211. 23 |12,177. 86 |75. 64 | |2007-08 |4,743 |2. 8 |10,699. 80 |14,110. 80 |75. 83 | |2008-09 |4,825 |3. 1 |12,347. 7 |15,565. 19 |79. 33 | Source: Bangladesh Garment Manufacturers and Exporters Association (BGMEA) diligence Background and stance The phenomen al growth in RMG was see in the last decade. In 1984-85, no of Garment factories was 800 RMG jointly with knitwear accounted for more than 70% of total enthronements in the manufacturing sector during the prime(prenominal) half of the 1990’s. At present with about 4,000 factories and a workforce of two million, 80% of which are women, employing over 50% of the industrial workforce and having 75% of the total exports earning of the country.Exhibit 6. 1 shows the growth of RMG exports from Bangladesh since 1981-82. Main apparel items exported from Bangladesh (in million US$) |Year |Shirt | gasp |Jacket |T-shirt |Sweater | |2005-06 |1,056. 69 |2,165. 25 |389. 52 |1,781. 51 |1,044. 01 | |2006-07 |943. 44 |2,201. 32 |1,005. 06 |2,208. 90 |1,248. 09 | |2007-08 |915. 6 |2,512. 74 |1,181. 52 |2,765. 56 |1,474. 09 | |2008-09 |1000. 16 |3,007. 29 |1,299. 74 |3,065. 86 |1,858. 2 | Source: Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Industry mind-set Multi- Fiber Agreement (MFA) and Generalized System of Preferences (GSP) of the EU are the main factors behind acquainting Bangladesh RMG products to global market ensuring assured market access. Bangladesh is now a significant RMG supplier to northwesterly America and Europe. Due to phasing out of MFA, many are doubtful about Bangladesh’s ability to maintain the fast growth of the recent geezerhood in this sector but Bangladesh has taken a better position in the U. S. A market through competition.However, on a more positive note, Bangladesh is expected to maintain its revenue enhancement-free access to EU under the European GSP, since the GSP is not covered by the Uruguay Round Agreement. Recently, Canada has as well provided tariff-free access of all the items from Bangladesh. Marketing network has been spread over the economies of the continents. End users could soundly recognize and differentiate the products confidently. Bangladesh RMG industry largely depends on the imp orted recounts and fabrics. Bangladesh produces only 10% of export- tincture cloth apply by the garments industry.The need for establishment of backward-gene linkage industry has become an prompt concern to the government and the exporters. There are enormous opportunities in setting up composite textiles industry combining textile, yarn and garments. enthronization Opportunities and government support RMG and textile sectors have enormous investment opportunities. The government of Bangladesh has created a extremely favorable policy framework for investment in these sectors oblation investors the following choices: 1)   Establishment of new textile / RMG mill in the private sector. 2)   Joint ventures with the existing textile / RMG mill. )   Acquisition of unexclusive sector textile mill about that are being privatized. 4)   Indirect investment through financial work and / or leasing. To discover up the local demands, backward linkage is a significa nt trading hazard and is supported by a government backed incentive: 15% capital subsidy of the fabric cost to exporters sourcing fabrics locally. * spin around : Value Addition to the Fibrous Substances Spinning is the startle step in textile value chain that adds value to the tough substances by converting them into yarn or thread through the processes of drawing, twisting and winding (Exhibit 1).Characteristics of the yarn vary based on the materials employ, fiber length and alignment, quantity of fiber used and degree of twist. The earliest revolve likely involved simply twisting the fibers in the hand. Later, the use of a stick to benefactor twist the fiber was introduced. Drop gyrate involves the use of a stick with a whorl or weight to change the spin of the stick (called a ear). The spindle is spun, and hangs supported by the yarn as more fiber is introduced. This introduced fiber picks up the twist and becomes yarn. However, the development of spinning hustle a llowed a continuous and quicker yarn outturn.Spinning wheels are either foot or hand powered. Modern powered spinning, originally done by water or steam power but now done by electricity, is vastly faster than hand spinning. Materials that can be used to create yarn take up into three broad classes: plant, animal, and synthetic. 1)   Plant materials: cotton, flax (to produce linen), hemp, raffia, yucca, coconut tree husk, 2)   Animal materials: wool, goat (angora or Cashmere goat), hunt (angora), llama, alpaca, dog, camel, silk, 3)   Synthetic materials: polyester, nylon, rayon, acetate, Mylar… 4)   Apart from the above, mineral materials like asbestos are also used, but not very often. Spinning Industry in Bangladesh Development of spinning industry in Bangladesh is closely associated with the development of Textile and garments (T&C) sector as a whole. power-driven modern textiles in Bengal were traced back to early twentieth century. Before 1947, m odern textiles were only the composite textile move having spinning and weaving facilities. Later, activities like specialized textile weaving, knitting and hosiery and dyeing-printing-finishing were added.During 1947, there were about 11 composite textile mills in Bangladesh (then East Pakistan) with 1. 1 million spindles and 2. 7 thousand looms. Spindles grew to 3. 2 million in 1956 but declined to 0. 8 million in 1972 as worn-out noncurrent spindles went out of operation. In 1972, large-scale manufacturing units including textile mills were nationalized. After 1982, state-owned spinning mills were in stages denationalized. By 1999, spindles installed were 2. 8 million (2. 4 million in the private sector and 0. 4 million in the public sector) with an annual production capacity of 200 million kg.BOI sector look into found that in 2004, about 3. 44 million spindles are producing 382 million kg of yarn for the textile industry (Exhibit 2). [pic] Challenges of and Supports to the Spinners The success of a robust textile sector largely depends upon an improved and sure spinning sub-sector. If spinning sub-sector produces sub stock / inferior yarn, its ominous effect persists right across the inbuilt value chain. availableness of raw materials, transportation, port facilities and tariff rationalization are the key challenges to the spinners.The Government has been supporting the spinners providing lower tariff for machinery spares and raw materials, cash incentives, reduced tax rate, and low-cost funding etc. enthronisation mind-set Textile & Clothing is the largest manufacturing sector of Bangladesh providing over 4 million jobs, accounting for 5% of GDP, 40% of manufacturing value addition and 75% of total foreign exchange earnings. The growing demands for yarn in the local market, relatively low cost of doing business, mercantile incentive package, favorable investment policy regime etc are the main reasons for investment in this sustainable se ctor.Spinning could be chosen. 4. 3 FROZEN FOODS The frozen foods export is the second largest export sector of the country. After some initial difficulties in terms of quality achievement, exporters have earned credibility and trustiness in the global market. Assurance of reliable and continued product quality is a major challenge in this sector. engineering science orientation, marketing perceptions, and quality improvement aspects incur foreign investment in this sector. The current challenges of international trading are largely dictated by price, quality, time and service.Industry shoes Exporters have earned credibility and trustworthiness in the global market and are committed to maintaining a competitive advantage in product quality. Continuing investment in engine room, marketing and quality remain at the forefront of the industries strategy to meet the challenges of international trade in price, quality, time and service. Industry Outlook Frozen food sub-sector has cr edible opportunities in Middle East, EU and North American countries and Far Eastern countries. In 2004-05, total fish production was 2. 216 million metric tons of which 8. 2 metric . tons were shrimp. At present, there are 868 fish hatcheries and farm of which 218,000 hectors of shrimp farm. This export-oriented industry includes the following sub-sectors, which need square-toed attention for augmentation of production, attain international standard quality and export earnings. 1)   Hatcheries,  Sustainable aqua-culture technology. 2)   Feed-meals plants, touch unit for value-added products. 3)   Investment in frozen food sector with new technology and equipment has a vast potential for growth. * lash Industry SituationBangladesh leather industry is predominate substantially by the domestic investment which is mostly export-oriented. The leather includes some ready-made garments, although that aspect is continued chiefly to a small export-trade in â€Å"I talian-make” garments for the US market. footgear is more important in terms of value addition. This is the fast growing sector for leather products. Presently Bangladesh produces between 2 and 3 percent of the world’s leather market. Most of the livestock base for this production is domestic which is estimated as comprising 1. 8 percent of the world’s oxen stock and 3. percent of the goat stock. The hides andskins (average annual output is 150 million sq. ft. ) have a good international reputation. Foreign direct investment in this sector along with the production of tanning chemicals appears to be highly rewarding. Having the basic raw materials for leather goods as well as for the production of leather shoe, a large pocket billiards of low cost but trainable labor force together with tariff subsidization facility to major importing countries under GSP coverage, Bangladesh can be a potential off shore location for leather and leather products manufacturing wi th low cost but high quality.In 2004-05 total export of leather goods was 220. 93 million US$ on the other hand it is 257. 27 million US$ during 2005-06 FY. Industry Outlook provision of newly announced infrastructural facilities through establishment of an integrated Leather Park and simultaneously, growth in the global demand, opportunities for investing in and setting up export-oriented leather industry in Bangladesh is decidedly attractive. Foreign investors are welcome to capitalize on this luck. 4. 5 ELECTRONICS Industry Background The electronics industry in Bangladesh mostly produces consumer items.Home appliances like television, radio, VCD and CD players, refrigerator, air conditioners, oven, electronic fan, blenders etc. are being assembled to a large extent. To ensure the performance reliability, the key challenges in this sector are technical assistance and proper technology orientation of the industry. Developing the significant capacity and skill in aggregation and manufacture of a wide range of electronic components and parts is curacies. As in time, Bangladesh does not have any telecommunication equipment industry in the private sector.However, an urgent need for diversification and modernization is felt among the existing entrepreneurs, government and professionals. Government is keen to provide and ensure enabling assistance to the development of this sector. Industry Outlook and Opportunities Skilled, easily trainable and low-cost human resources are the main cost advantage of setting up electronic industry in Bangladesh. Growing domestic demand and international market access are some key attractive issues to the investors. In the economies like Malaysia, Singapore, Korea and Thailand, electronics contribute a major portion in the GDP.They are advance electronic industry to shift from low-end assembly operations with high import content of inputs to upstream higher- value-added activities. In this context, relocation, outward inves tment and joint venture with Bangladeshi companies could be gainful strategies. To capitalize on the proportional advantages, substantial foreign investment from those countries is highly encouraged. * AGRICULTURE Sector Highlights Bangladesh has a tropic climate, a lot of fresh water, thus a land interspersed with numerous rivers, fertile soil and possibility to cultivate crops round the year.So it is unique to supply raw materials for the agro-based industry. The abundance of natural resources uncommitted in Bangladesh supports a range of highly profitable investment opportunities in agribusiness. Over 90 varieties of vegetable are grown in Bangladesh, yet in this fertile land there is underutilization of the country’s agricultural capacity. This presents many opportunities for investors seeking to export agricultural products, or to meet the rapidly growing local demand. Thriving in this sector are canned juices, fruits, vegetables, dairy and poultry.The cou ntry offers: 1)   Brobdingnagian supply of raw materials exists for the agribusiness industry. 2)   A tropical climate for all year growing, a lot of fresh water, indeed a land interspersed with numerous rivers, available land with fertile soil. 3)   Government and NGOs have been conducting regular training programs to develop competent manpower for agro-based industry. 4)   Wide range of biodiversity exists for different crops. 5)   Agricultural commodities have a comparatively higher value added than non-agricultural commodities.Investment opportunities There is a wide variety of investment opportunities including: *     frosty storage facilities serving the supply chain, especially fresh produce for export. *     Fresh produce production for local and export markets. *     payoff of fertilizers and kitchen-gardening of seeds. *     Eco-friendly jute production, supported by jute technology developm ent institutes. *     Shrimp farming, Halal foods, milk and dairy products. *     High value-added foods for export, including herbs, spices, nuts and pulses.Industry Incentives The government encourages development of the agricultural sector through measures to increase crop sector productiveness and production of non-crop agriculture. To achieve this, the government provides change magnitude credit, and facilitates greater access to inputs and modern technology. Sector Background Being an agrarian economy, agriculture has dominated in the economy for years. It has accomplish the preconditions of access to input and raw materials in setting up successful agro-based industries.Alluvial soil, a year-round frost-free environment, adequate water supply and abundance of cheap labor are available in Bangladesh. Increased cultivation of vegetables, spices and tropical fruits now grown in Bangladesh could supply raw materials to local agro-processing industrie s for both domestic and export markets. In 2005-06, Export of agricultural products accounted for about 1% of total export amounting US$ 76. 24 million. Industry Outlook To avail the competitive and comparative advantages, Bangladesh invites progressive agricultural-practices, improved marketing technique and modern processing facilities.The government emphasizes development of the agricultural sector through clutch measures to increase crop sector productivity and production of non-crop agriculture by providing increased credit, and facilitating greater access to inputs and modern technology. Investment interests in setting up agro-based industries in Bangladesh are highly encouraged. To promote agro-based industries and attract investment in this sector, Board of Investment organized Agri-Invest 2003 Bangladesh in December 2003.This first ever exposition created coarse interest among the foreign and local investors. 4. 7 cultivation TECHNOLOGY Sector Highlights 1) To investiga te the IT industry robustly, deregulation of the telephone has been decided and punish by mid-2003. 2) The extensive growth of vigorous telephony resulted in significant opportunities. 3) The industry is at its introductory stage and has opportunity of capitalizing the potential. 4) Bangladesh has a well-educated, skilled, dedicated and growing IT workforce. 5) There is a fast growing domestic market and export demand. ) Strong enquiry assistance from the universities and research institutions are available. Industry Background Compared to the neighboring India, Pakistan and other reciprocal ohm and South East Asian nations, Bangladesh is follow behind in IT Sector. save it is true up that the sector has vast potentiality to develop. Availability of substantial number of qualified and see young people in variant branches of engineering, science and technologies have opened up the scope of profitable investment in these sectors.Existing investment in IT sector is mainly small -scale and domestic in nature. collaboration in the IT sector is mainly based on licensing agreements and representation. A growing number of computer training schools and institutes are being opened. Management of most of the IT firms is professionally strengthen with the Bangladeshis who have studied and worked in both North America and Europe, and returned home. The annual market size for IT including computer hardware, peripherals and software system was estimated to be worth approximately US$ 20 million.The market is fast growing at an annual rate of about 25%. The country has over 400,000 PCs Submarine overseas telegram Bangladesh has joined the crime syndicate of SEA-ME-WE-4 triggerman cable, which starts its commercial activities from 21st may, 2006. This will especially back up prosperous data entry and software sectors. The landing place station of this cable is determined at Jhelong in Cox’s bazaar. There are 14 countries of this consortium the countries are Singapore, Thailand, UAE, Bangladesh, India, Pakistan, Sri Lanka, KSA, Egypt, Tunisia, Italy, Algeria and France.It has connected 16 telecommunication organizations of 14 countries. With the direct help from hacek cable Bangladesh can earn more foreign currency by increase international voice circuit (e. g. submarine cable will give support to establish 100,000 voice circuits. Voice and data communication will be faster. pocket billiards has created capacity pool, which we can sell also can manage IRV. Broad readiness service, data transmission, call centre, software export will be cheaper. Unemployed youths can easily engage themselves in those services by taking short term training.Bangladesh has right to land 15 landing station without charge. It will help streamlined operation of E-commerce, E-governance, E-education, Tele medicine etc. So, there are long chances of development of ICT sector and in the long run government will be financially benefited. 4. 8 PHERMACEUTICAL S 1)  Pharmaceutical products have huge demand both in local and overseas market. 2)  There are huge demand-supply gap in pharmaceutical products. 3) Bangladesh offers a good number of qualified, skilled pharmacists, bio-chemists, micro-biologists, and chemists for pharmaceutical industries. )  Government offers support for importing raw materials for production. 5) Present Government has taken initiatives to modernize, cover and attract foreign investment in pharmaceutical industries, and for this adopted national medicine policy (revised) 2005, which will help to change with the changing world under WTO/TRIPS. [pic] Outlook Considering the overall demand, pharmaceuticals is one of the emerging sectors in Bangladesh. Government offers different incentives for importing raw materials pharmaceutical industries. This particular sector has huge potential of growth in the future.For sustainable return, pharmaceutical sector could be a rational choice. Chapter-5 Conclusion 5. 1 Summary of Major Findings The economic sector has dread(a) impact on socio-economic structure of the country. It also brings economic prosperity for the any country. We recall that there must be a saturation point for any industry. But for our economic sector, still we are aside from it. The economy is likely to grow at a similar pace as experienced over the last ten years — of around 6. 2 percent — in pecuniary 2009-10, despite the continued global economic slowdown, Bangladesh Bank verbalize . Most indicators in the first pull back of fiscal 2009-10 point to a more moderate level of economic expansion,” the BB verbalise in its latest quarterly review. The BB ejection means that the growth is likely to fall short of the governments original organise of 7. 2 percent GDP growth for the current fiscal year. â€Å"Bangladesh Bank will produce forecasts for economic growth on a regular basis, in line with the common practice in other central banks across th e world â€Å"The significant remittance growth is likely to have positive consequences for both domestic consumption and investment .The third development centres around the healthy growth in private sector credit, which during the first quarter this year grew by 19. 9 percent against a target of 18. 4 percent. This suggests that the credit envelope will â€Å"not be a coyness towards achieving the overall economic growth targets”. consummate(a) domestic agricultural production is expected to be 2. 2 percent higher than that of the previous year, of 65. 6 million tones, on the back of government incentives and higher agricultural credit disbursement. The industrial sector is project to grow between 7. percent and 7. 75 percent in fiscal 2009-10, down from the 9. 47 percent seen last fiscal year, but in line with the average industry sector growth rate over the last ten years Economic growth was also calm down in the outgoing year despite some clouds over export earning. The GDP (gross domestic product) growth was 6. 32 percent in FY 2009-10, which was marginally lower than the 6. 71 percent of the previous FY 2008-09, but higher than many other neighboring countries. The GDP for the current FY 2010-11 has been targeted at 7. 2 percent. 5. 2 Economic Performance A unwavering average annual GDP growth of 5% over the last decade. * Inflation has been kept in single-digit. * Exports have been gradually shifted from traditional goods to more value added items. * focus has been put on manufacturing of backward linkage of Readymade Garments, Pharmaceuticals Industries and IT sector. * The private sector is playing an increasingly active role in the economic life of the country, while the public sector concentrates more on the physical, social infrastructure and policy making. 5. 3 Policy RecommendationThe restructuring measures taken so far are definitely not sufficient considering the gravity of the situation. found on the above discussion the followi ng steps may need to be taken as reform or restructuring measures to speed up the progress · The problem of excess liquid asset of the banks should be handled with due attention. In order to use the excess liquidity · A number of measures were taken to strengthen the legal framework. However, in order to attain the benefit of improved legal framework, enforcement of legislations should be ensured.Legal procedures should be uncomplicated and disposal of case should be speedier. · Government interference, political involvement, pressure from the trade unions has to be reduced for the smooth function. · For developing the asset utilization ratio, portfolio of asset structure should be rearranged by removing the non-earning assets or transforming the non-earning assets into earning one. · Technological up-gradation of the banking system is needed equipped with state-of-the-art infrastructure and logistics. Lastly, the problem of Bangladesh financial system is widesprea d and not related to banking system only. accordingly the scope of the reform measures should also be applied to the non-bank financial institutions. Reference list * Released beat-up report of World Bank, in 2007, estimated Bangladesh. * Bangladesh Garment Manufacturers and Exporters Association (BGMEA) * Bangladesh Export statistics 2009-10, Dhaka, Bangladesh. * A report of Garments published in the magazine, April 2008. * Economic Review †2010 * Review of Bangladesh Development †2009 * A report of economics published in the magazine, April 2011\r\n'