Dhaka:

A vibrant private sector in Bangladesh is crucial to a rapid and sustained growth of the export sector, as well as the national economy. It has already become a driving force in economic development.

A young generation of private sector entrepreneurs has emerged in Bangladesh, who are well-educated, hard working, capable and eager to face the challenges of the globalised competitive market. The booming industries in ready-made garments, knitwear, shrimp, leather, ceramic, etc are clear indicators of the capabilities of the private sector.

Private sector in export market:

The private sector has been attracted most to exports due to liberal government policy and easy availability of bank credit against export L/C. The private sector’s performance in foreign exchange earning has been spectacular.

Our major exports to the USA, Germany, UK, France, Belgium, Italy, the Netherlands, Canada, Spain, Sweden, Japan, Hong Kong, India, China, Pakistan, Turkey, Singapore, Iran, and other countries, including woven garments, knitwear, frozen food leather, jute goods, pharmaceuticals, chemical products, raw jute and tea are dominated by private entrepreneurs.

Out of the total foreign exchange earning of $ 8.66 billion in 2004-5, private enterprises earned more then 95 per cent which is rise from 74.27 per cent in 1990-92.

As a result of export earnings in 2004-05 fiscal year, 65.68 per cent of import bills could be met.

Private sector in export promotion:

The private sector is involved in export trade in the following ways:

(1) Direct marketing efforts

(2) Promotional activities by cha-mbers and trade associations

(3) Market development efforts through donor agencies, NGOs and research organisations.

Besides production of export products, the private sector is providing institutional support & advocacy to the government; maintaining liaison with local and foreign trade related bodies; arranging meeting, seminars and conference for creating awareness among entrepreneurs; disseminating trade related information and conducting training courses and workshops for developing skills of the business people for increasing exports day by day. It is also seeking new markets for Bangladeshi products and investment for establishing export oriented industries in the country.

Chambers and trade associations’ contribution to export

promotion:

For promoting trade, commerce and industries and safeguarding private sector’s interest there are 77 local and bi-national

Chambers of Commerce and Industry and 226 trade and product related Associations based on different districts and divisional towns and capital city.

The Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) is the apex organisation of the private sector.

i The chambers and trade associations are performing various functions, such as:

Government organizations (WASA, Petro BangIa, DESCO, DESA etc) and the chambers/associations have been cooperating with each other for solving different problems.

ii Issuance of certificate of Origin

iii Exploration of export market.

iv Dialogue with the government on different policies

v Functions as a forum for exchanging views

vi Memorandum of Understanding with overseas chambers/ organization

vii Settlement of trade disputes by arbitration

viii Product and management development

ix Implementation of development projects

Export assistance from buying houses, donor agencies, NGO’s and research organisations:

The private sector maintains close liaison with foreign buying houses, which supervises the export the export cargo in terms of design and quality. Some of the NGO’s help private sector exporters in technology transfer especially in argo-products.

Apart form this the exporters receive trade information, research studies, information on import regulations form donor agencies and research organizations. The private sector needs assistance to overcome the impediments in order to assist the development of the economy.

Institutionalised financing, enabling infrastructure friendly administration and adequate legal coverage are some of the areas where government should play the role of facilitator.

The author is the president of Federation of Bangladesh Chambers of Commerce and Industries.