Daffodil International University
Faculties and Departments => Business & Entrepreneurship => Business Administration => Topic started by: fatema nusrat chowdhury on February 25, 2015, 03:13:01 PM
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A number of speakers at a programme Saturday said the trade policy plays an important role in accelerating economic growth while others considered the country's inadequate infrastructure and lack of political stability are major constraints to attaining that goal (economic growth).
Opinions of the participants were divided over the importance and pace of trade policy reforms for providing a boost to the country's economy.
Some participants favoured gradual openness in tariff structures but some others argued that the trade policy should protect local industries.
The participants ranging from economists to business leaders were speaking at the launching of quarterly policy briefs by Policy Research Institute (PRI) of Bangladesh on the country's economy held at its office in the city.
Chairman of PRI Dr Zaidi Sattar was the moderator in the programme. He also presented a paper styled 'Is the trade policy losing direction?'
PRI Executive Director Ahsan H Mansur presented two papers -- one on the fiscal policy and budget and related challenges and the other on the monetary policy titled 'Is Bangladesh Bank's Monetary Policy Stance Working?'
Commerce Minister Ghulam Muhammed Quader attended the programme as the chief guest while former education minister and Bangladesh Nationalist Party (BNP) leader Dr Osman Farruk joined it as the special guest.
Former caretaker government adviser Dr Mirza Azizul Islam, former finance secretary Mr Zakir Ahmed, President of International Chamber of Commerce, Bangladesh (ICC,B) Mr Mahbubur Rahman, Executive Director of Centre for Policy Dialogue (CPD) Dr Mustafizur Rahman and senior economic adviser to the Bangladesh Bank governor Dr Hassan Zaman, among others, took part in the discussions on the occasion.
Commerce Minister G M Quader said the government is imposing non-tariff barriers mainly to protect 'local infant industries.'
He said: "There is no pressure from the WTO (World Trade Organisation) and other regional economic organisations."
Mr Quader said many nations are now imposing non-tariff and para-tariff restrictions as the customs duty rate has now been brought down to an almost zero level, following trade liberalisations.
Participating in the discussion, Dr Osman Farruk said the trade policy should not be designed only for export earnings. "Poverty alleviation and employment issues should also be taken into consideration," he observed.
Mr Farruk was critical of the government's subsidy for the power sector. He said: "In generating power, I don't find that the government is following the least cost option."
Mr Farruk was also critical of government's heavy borrowings from the banking system. The government is not only squeezing investment but also shifting a heavy burden on the next generation, which is totally unacceptable and unethical, he observed.
He said the trade policy should not aim at increasing the volume of revenues rather it should focus on investment promotion and employment generation in order to help alleviate poverty.
Participating in the discussion, Dr Mirza Azizul Islam, a former finance adviser to the immediate past caretaker government, said while formulating the trade policy, some kinds of protection for local industries are needed so that they can produce high value-added products later on a competitive basis.
He said some South Asian nations which are now producing high-value added products had witnessed public policy intervention to protect their local industries.