Competitiveness key to success: experts

Better negotiation skills, export diversification, improved competitiveness and institutional capacity building are keys to attaining success once Bangladesh makes the United Nations status graduation to a developing country, speakers told a webinar yesterday.

Titled "LDC Graduation of Bangladesh: Journey towards Economic Excellence", the event was organised by the Dhaka Chamber of Commerce & Industry (DCCI).

"It is the right time to increase trade and investment as well as adopt long term strategic planning and their effective implementation to strengthen Bangladesh's position," said DCCI President Rizwan Rahman in his opening remarks.

"Bangladesh's identity as a developing nation in the international arena will uphold the competitiveness of the country, which will take us to a greater height and will contribute to enhance export and FDI (foreign direct investment)," he said.

He urged for framing a policy to attract the FDI, increase investment-GDP ratio and tax-GDP ratio.

Moreover, emphasis should be given to regional connectivity, including through signing preferential and free trade agreements, especially with countries with which there exists an imbalance in trade, said Rahman.

Skill development, effective policy adoption, reforms and implementation; use of fourth industrial revolution (4IR)-centric technologies, research bringing together international experts and academics and joint public-private efforts will play a pivotal role to retain competitiveness, experts suggested.

"LDC graduation for Bangladesh is a milestone. We have to mainly focus on how to become competitive. Role of the government is to remove barriers," said Principal Secretary to the Prime Minister Dr Ahmad Kaikaus as chief guest.

"The more the country will be competitive, the less will be the cost of fund…we have to look for exploring regional and Asian markets," he said.

He cited China as an example, pointing out that it was dominating world trade and so there was no reason to be afraid of making a status graduation from a least developing country.

The entrepreneurial capacity of Bangladeshis is its strength to overcoming all hurdles, he said.

"We have to think about how we can move forward…We should actually gear up," added Kaikaus.

"As per the eighth five year plan, the role of private sector is of about 81 per cent. LDC graduation will boost our own resources and increase the confidence of our entrepreneurs," said Secretary to the finance ministry's Economic Relations Division Fatima Yasmin.

"LDC graduation may have a few challenges but the government is taking necessary preparations. It is true that we may lose duty free, quota free access, special waiver and preferential treatment," she said as a special guest.

"But EU (European Union) will give us preferences till 2029. Besides, we have to best capitalise the existing benefits in the next 5 years," she said.

"Moreover, after graduation, the government is planning to negotiate with the WTO (World Trade Organization) for giving us preferences for the next 12 years after 2026. For signing PTA and FTA, government is in discussion with 11 countries," said Yasmin.

"To become competitive after LDC graduation Bangladesh has to strengthen its backward linkage industry," said another special guest, Md Jashim Uddin, president of the Federation of Bangladesh Chambers of Commerce and Industry.

"The knit and woven sector need value addition to attract local and foreign investments," he said, urging for faster implementation of special economic zones.

He also underscored the importance of engaging the private sector in creating an implementable policy framework. 

"LDC graduation is an opportunity for Bangladesh. Apparently we may think of losing a few benefits, but in the long run we will be benefited a lot," said Nihad Kabir, president, Metropolitan Chamber of Commerce and Industry, Dhaka.

"Many business scopes are still coming into Bangladesh…Yes, there will be challenges, but if government and private sector can work hand in hand Bangladesh can gain a lot," she said.

Taufiqur Rahman, head of LDC Unit, Development Division, WTO, and Prof (retd) Muinul Islam of the Department of Economics, Chittagong University, also spoke.