The Problems and prospect of Industrialism Process in Bangladesh

Abstract: This study a empts to study The Problems and prospect of Industrializa on Process in Bangladesh from the historical perspec ve. Since the country like Bangladesh is predominantly agriculture base and the limited industrial output and exports also arise from the primary produc on the country face a s compe on in the world market to maintain and develop its terms of trade and balance of payment in its favor. The economy is of much vulnerable as the industrial structure and output are not diversied enough and hence suers very o$en from the external shocks. This study, in this context, a empts to study the structural bo leneck of the Bangladesh industry, its problems and suggests some policy implica ons thereby.

Dene Industrialism An economic and social system based on the development of large-scale industries and marked by the produc on of large quan es of inexpensive manufactured goods and the concentra on of employment in urban factories.

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Problems Facing Industrialism in Bangladesh

The $y ve years plan (1997 2012) Bangladesh iden ed some major obstacles to industrial development of Bangladesh as: a) No development of entrepreneurship: An entrepreneur is one who always searches for change, responds to it, and exploits it as an opportunity. Can anyone be an entrepreneur? The answer is no. But with access to capital, minimum educa on facility and own crea vity, many intelligent, energe c youth can be turned into a decent business people. In our country, the term for an entrepreneur is a 'businessman,' which carries with it a set of nega ve connota ons. The assump on is that one goes into business if one cannot be a banker, doctor, engineer, lawyer, professor or a corporate worker. In movies, businessmen are portrayed as crude, immoral people. In day-to-day life, a businessman is only considered successful if he can achieve conspicuous display of wealth.

b) Low literacy rate and technical know how: The economy of the country is growing on average at 5% rate since 2001. .... Basically it is due to more generic problem: lack of currency of.... Strengthening
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the support system (technical, know-how and opera onal) for the public.... low access to infrastructure, combined with very poor literacy in rural Bangladesh c) Capital scarcity: As the investment bank era ends, so too, some in the industry are saying, the era of broad capital use for execu ng trades comes to a close. For most buy side traders in the ins tu onal equi es space, there will be less capital available to facilitate large block trades, industry experts say. And when it is used, they add, it will be more expensive and employed more carefully.

d) Poli)cal instability and weak poli)cal will force: Bangladesh emerged as a new country plagued with Constant poli cal instability. The widely popular Independence leader Mujibur Rahman won the Elec ons in March of 1973. In January of 1975, the Government declared a na onal state of emergency and parliament was replaced by a one-party rule with Him s ll in power. A paramilitary force was createdTo crush any possible poli cal opposi on when among others a le$-wing leader, Siraj Sikder, was Killed. However, on August 15, 1975 Mujib was Assassinated during a right-wing coup dtat. Ocers as wells one of Mujas ministers, Chandler Mustaque Ahmed, led the group and took Over as president. A$er a shortreign, Khandker Mustaque Ahmed was overthrown byMajor GeneralZia ur-Rahman. He soon installed the chief jus ce, A. M. Sayem,as president. e) Tendency of being rich in the name of industrialist without real industrys: It is only Bangladeshi people applicable for that those people use to the habits. f) Bank default A good neck for trading and looking bank money for so called industrializa)on: "The default no ce was sent in June 2008 to your address. The bank considers that this no ce was served in accordance with the requirements of Sec on 176(2) of the Consumer Credit Act. - The Default Document is a system generated so we are unable to reproduce it and supply you with a copy of the original no ce. Is the bank allowed to do this and would it be possible for me to ght this decision to have the default removed? Surely the bank would have to keep copies of its system produced le ers and have to supply me with a copy to substan ate the Default.
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g) Industrialist become businessmen: Some reason 1. Calcula ve people only. 2. When businessmen become bored of wielding the tricks of the trade...they start learning the actual trade...this when they become industrialists. 3. By switching to manufacturing sector. There is no other way. 4. They start loo ng and undercuLng their tax declara on on a small scale and later on do it in a big scale thereby progressing as an industrialist. 5. hard work and luck 6. First they acquire knowledge in trading later on shi$s to manufacturing h) Corrup)on and non-transparency: In 2001, Bangladesh was on the top of a corrup on index, breaking the long me record of Nigeria as the most corrupt country in the world (Transparency Interna onal 2001). It maintained its top posi on in 2002 also. I ses mated that, due to corrup on, the country received 50 percent less foreign direct investment during 1999 (UNCTAD 2001). Corrup on in the country sport, according to the American Chamber of Commerce (2001), costs the Bangladesh economy $1.10 billion every year. Due to unauthorized power supply, $1.00 billion worth of industrial output per year is lost (The Independent2000). Corrup on in all government dealings with the public is widespread. The present Prime Minister Khaleda Zia claimed inApril2000 that the previous Hasina government had misappropriated $80.00 million during the purchase of MIG 29 ghter jets from the Russian Federa on (Daily Star 2000). The Parliamentary Standing Commi ee on Defense is inves ga ng allega ons of kickbacks in another deal for the purchase of frigates worth $100 million from South Korea (Transparency Interna onal2001).

Prospect of Industrialism in Bangladesh

A prospect of industrializa on is related to the growth and development of the whole economy. The ini a ves which have taken to boost the economy are certainly have posi ve eects to the industrializa on process.

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Professor Simon Kuznets (Nobel Laureate in economics in 1971) dened a country economic growth as a long term rise in capacity to supply increasingly diverse economic goods to its popula on, this growing capacity based on advance technology and their instruc onal and ideological adjustment that it demands. Bangladesh economy, the crucial and logical transforma on is on the way to take place and it highly prospec ve for accelera ng industrializa on. In Bangladesh, Labour force is increasing day by day and the absorp ve capacity of agriculture is limited. Due to a variety of soci-economy factors, the scope of sustainable growth in agriculture. Over the last quarter of the century, Bangladesh has gone through a slow process of structural transforma on. The share of agriculture and other reduce to 33% in 1995 from 58% in1972. On the other hand the share of manufacturing sectors increasing from 9% in1973 to 11.4% in 1994/1995 that paved a prospec ve way to industrialism

Concluding Remarks
The high level of underdevelopment in Bangladesh can largely be a ributed to deliberate government policies such as con nua on and strengthening of the highly centralized colonial administra ve and educa onal system; na onaliza on of medium to heavy industries including manufacturing, communica on, u li es, banks and other nancial ins tu ons under the state corpora ons with signicant monopoly power; and misalloca on of resources resul ng in poor physical and social infrastructure, environmental degrada on, and high levels of corrup on. No modern society made any economic progress without educa ng its ci zens and reforming its colonial administra ve structures. The laws of supply and demand create the most ecient markets because compe on requires a con nuous reduc on of ineciencies for survival. The lack of priva za on leaves li le mo va on to lower costs for protability. Corrup on and ineciency of the public-sector disappear with priva za on and compe ve market opera on that limits the scope of the governmen omaintaining law and order, regula ng monopoly power, providing public goods, anddealingwithexternali es such as pollu on and resource deple on as wells dealing with business cycles. Government does not interfere with the Market forces.

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