Briefly examine the trends in Bangladesh export trade since
independence and explain the need for further expansion and
diversification. Export Tread in Bangladesh Export is one of the most preferable and conventional way to perform international business. In simplest word, export is traditional buying and selling across the border of the country. In economics, an export is any good or commodity, transported from one country to another country in a legitimate fashion, typically for use in trade. Export is an important part of international trade. Its counterpart is import. Export involve anything from transferring physical goods to intangible services with a view to earning profit, sometimes it results from arbitrary practice. According to the Encyclopedia of Britannica, export is To send or transport goods abroad out of a customs territory; to sever them from the mass of things belonging to one country with the intention of uniting them to the mass of things belonging to a foreign country. Brief idea about the Export of Bangladesh Like many other third-world developing countries, Bangladesh relies quite heavily on exports to provide for the needs of its densely populated nation. Today the economy of Bangladesh has largely depends on the export position of the country. Before the independence and after the independence the main source of budget fund came from the export revenue and till now it is the major indicator of countries growth and economic stability for its principle role in exchange rate determination and GDP. In over three decades, Bangladesh has witnessed substantial growth in its export of goods and services. The volume of export, the no of exporting countries and as well as the range of exporting goods have widen substantially. Bangladesh has experienced not only a substantial increase in the volume of exports but also important changes in the composition of those exports; moving away from traditional items such as jute and jute products and towards new... Introduction Like its South Asian neighbors, Bangladesh began with a restricted trade and exchange rate policy ostensibly to (a) conserve scarce foreign exchange; (b) create industrial base through protective domestic environment; and (c) maintain the balance of payments at a sustainable level. The outcome of such protective policies was, however, disappointing: it created a distorted incentive structure resulting in AL locative and productive inefficiencies. The policies also gave rise to anti-export bias discouraging the growth of exports. To redress the anti-export bias, special incentive schemes were designed which were also expected to minimize inefficiencies through domestic competition. The outcomes of these inadequate and commodity-specific measures, however, were not encouraging in terms of export development, balance of payments and the development of the overall economy. Disenchanted with such autarkic external sector strategy and also prompted and dictated by the Bank Fund conditional ties, the policymakers in Bangladesh, as elsewhere in the South Asian countries, began to shift the balance towards more openness of the economy since the late 1970s. The move was gradual till early 1990s. Trade liberalization in Bangladesh in the early 1990s was rather swift compared to many of its South Asian neighbors. Despite such a rapid transition, a vibrant export-led growth was not achieved that could take care of chronic balance of payments crises. It is, therefore, useful to examine the countrys external sector performance and identify factors that inhibited the emergence of a viable external sector.
Need for further expansion and diversification Diversification of export is a high priority area in the governments development strategy. It is increasingly recognized that accelerated development and diversification of countrys exports is needed for reducing the pressure on balance of payment situation and for the growth of more viable and efficient agricultural and industrial sectors for balanced development. Bangladesh has a sizable burden of foreign debt and is in urgent of foreign exchange resources for debt servicing and financing of expanded development projects. Employment opportunities need to be created through expansion of exports for alleviation of poverty. This will encourage savings and broaden the scope for investment. Export diversification is crucial for effective participation in the global trading system. Expanding the countrys supply base is central to any export strategy. While removal of constraints and improvements in the incentive structure will enhance export performance of the country in the short to medium term, expansion of production across industries along with adaptation and development and diversification of products to compete in the overseas markets constitutes a medium to long term priority. Diversification of products Upgrading design and quality of products and production of value added items To adopt new strategy for expanding markets, to use computer technology and e -commerce To build up backward and forward linkage for maximizing production of exportable To create business friendly atmosphere and provide assistance to existing exporters and induct new exporters To develop skilled manpower in business To create awareness in trade bodies, businessmen and concerned persons about the global trading system Govt. has formulated strategies for implementation of the objectives of export policy which are given below: o To assist in the production of exportable by creating product development councils o To provide assistance to producers and exporters in respect of market intelligence and value addition o To encourage export development by providing institutional support to trade and export houses o To assist in setting up seal of quality organization and similar institutions to ensure quality o To assist in setting up of international arbitration centre and similar institutions for settlement of trade disputes within a short time o To help the producers to use modern technology in the process of design and production o To familiarize the exporters with the work programme of the successful exporting countries o To provide assistance to the exporters in organizing single country fair and to o Participate in international fairs for introduction and marketing of products