The public and the private sector in Bangladesh need economic leadership that is beyond the mere administration of the economy. This is in no way to suggest that what has been done or being done is just that alone. The practice of planning an economy is more than meeting the demands of the different budget heads or increasing revenue budget to expedite infrastructural development. The annual ritual of coming up with a budget for the sake of it is just economics in the Adam Smith definition, to just try and utilise scarce resources for maximum gain. Calculate required resources against expenditure, lobby donor agencies and listen to their suggestions and preferences, prepare necessary response, and calculate deficit or surplus. Revenue budget is a given framework, with thrust sectors identified keeping in mind the general well being of the people, as well as the preferences of the incumbent government, mentioned in the election manifesto as promises to the electorate. We know of the supplementary budget, Annual Development Fund (ADB), ECNEC, planning commission and inter-ministerial cooperation, the various ways development projects are mapped and then given approval for going ahead. All this with the good intention to stimulate and initiate economic growth. This is the way the machinery works. But economics has developed way beyond the old school of thought, which basically concentrated on allocating scarce resources to attain the best possible result .We need a Keynesian approach, where we need to look at the administration of resources and various factors related to income and employment so that economic stability is promoted.

Detecting the thrust sectors of Bangladesh, the latent strength of the potentially lucrative sectors i.e. pharmaceutical or tourism, and exploring them for maximum benefit is urgently necessary. The keynote theme lately, has been the ramifications of the post MFA period i.e. effects on Ready Made Garments sector, and the massive loss of foreign exchange as a result of loosing quota preferences. Enough has been said about the RMG sector and the backward and forward linkage situation and frankly, more needs to be said! However, not enough is being said or done to look for export oriented thrust sectors, the need to urgently develop them and channel investment in a large but planned scale. In this context, we see the frustration of the pharmaceutical sector.

We know that the pharmaceutal companies have raised their hand and asked for government support to make their sector more competitive. This sector has the potential to become a major money earner. The country earned approximately 10million dollars by exporting pharmaceutical products in 2002-3. We know that Bangladeshi companies just like their Indian counterparts can copy very expensive western drugs and sell them to foreign buyers. India has recognised this potential and has set up an active pharmaceutical ingredients (API) plant in Hydrabad .The Bangladesh Association of Pharmaceutal Industries (BAPI) has included setting up of API in their 20-point proposal to the government. API plant will bring together the requirements of the pharmaceutical companies under one roof. The backward and forward linkage needs of this industry will be met. We could see a rise in the capacity of the pharmaceutical companies to make good quality products and find export orders by beating competition from other countries.

The pharmaceutical industry is a highly specialised one, dealing with life and death. Therefore, it is a difficult and complicated field where experts with calibre and ability work. We know that Bangladeshi specialists have been able to take control of the entire production process of complicated drugs. This is a very significant achievement. The momentum is there; we need to keep the forward motion by declaring the pharmaceutical industry a thrust sector. Many scientists have left the country. We would be able to bring them back. Many doctors and other scientists with ideas and potential would get employment to serve the country and help increase scientific research as well as earn valuable foreign currency.

How far can the government intervene to mobilise resources for any particular sector? That is a question that should be deliberated upon by the government and then a policy choice can be made. Direct involvement with resource and manpower is not practical or necessary. Stimulants or incentives like tax breaks or exemptions, temporary in nature, can jump-start a sector by giving the private entrepreneurs the incentive they need. Sincere government support may be needed because in Bangladesh, law and order itself can become a serious stumbling block.

Please discuss the 20-point demand of the Bangladesh Association of Pharmaceutal Industries (BAPI). Allocation of land for the Active Pharmaceutical Ingredient (API) plant can be made. Installing various modern facilities, dedicated to the API zone, would also need government support. Entrepreneurs are well aware of the long arm of the government. Sincere policing by regulators would weed out any chance of large scale corruption in the API zone. Pharmaceutical industry wants a chance. They should be given that chance. So should any other sector that needs it. Ready Made Garments industry has shown that Bangladesh can earn massive foreign exchange by exporting product from one particular sector. We must duplicate this belief in other sectors also.