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Strengthening Competitiveness In Bangladesh—Thematic Assessment

Author

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  • Sanjay Kathuria
  • Mariem Mezghenni Malouche

Abstract

This is volume 2 of a three-volume publication on Bangladesh’s trade prospects. Bangladesh’s ambition is to build on its very solid growth and poverty reduction achievements, and accelerate growth to become a middle income country by 2021, and share prosperity more widely amongst its citizens. This includes one of its greatest development challenges: to provide gainful employment to the over 2 million people that will join the labor force each year over the next decade. Moreover, only 54.1 million of its 94 million working age people are employed. Bangladesh needs to use its labor endowment even more intensively to increase growth and, in turn, to absorb the incoming labor. The Diagnostic Trade Integration Study identifies the following actions centered around four pillars to sustain and accelerate export growth: (1) breaking into new markets through a) better trade logistics to reduce delivery lags ; as world markets become more competitive and newer products demand shorter lead times, to generate new sources of competitiveness and thereby enable market diversification; and b) better exploitation of regional trading opportunities in nearby growing and dynamic markets, especially East and South Asia; (2) breaking into new products through a) more neutral and rational trade policy and taxation and bonded warehouse schemes; b) concerted efforts to spur domestic investment and attract foreign direct investment, to contribute to export promotion and diversification, including by easing the energy and land constraints; and c) strategic development and promotion of services trade; (3) improving worker and consumer welfare by a) improving skills and literacy; b) implementing labor and work safety guidelines; and c) making safety nets more effective in dealing with trade shocks; and (4) building a supportive environment, including a) sustaining sound macroeconomic fundamentals; and b) strengthening the institutional capacity for strategic policy making aimed at the objective of international competitiveness to help bring focus and coherence to the government’s reform efforts. This second volume provides in-depth analysis across seven cross-cutting themes that underpin most of the findings of pillars 1 and 2 above.

Suggested Citation

  • Sanjay Kathuria & Mariem Mezghenni Malouche, 2016. "Strengthening Competitiveness In Bangladesh—Thematic Assessment," World Bank Publications - Books, The World Bank Group, number 24705.
    • Handle: RePEc:wbk:wbpubs:24705
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    References listed on IDEAS

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    1. International Monetary Fund, 2013. "Jamaica: Second Review Under the Extended Arrangement Under the Extended Fund Facility and Request for Modification of Performance Criteria," IMF Staff Country Reports 2013/378, International Monetary Fund.
    2. Sanjay Kathuria & Mariem Mezghenni Malouche, 2016. "Attracting Investment in Bangladesh—Sectoral Analyses," World Bank Publications - Books, The World Bank Group, number 25140.
    3. International Monetary Fund, 2013. "Pakistan: 2013 Article IV Consultation and Request for an Extended Arrangement Under the Extended Fund Facility," IMF Staff Country Reports 2013/287, International Monetary Fund.
    4. International Monetary Fund, 2013. "Jamaica: Request for an Arrangement Under the Extended Fund Facility," IMF Staff Country Reports 2013/126, International Monetary Fund.
    5. International Monetary Fund, 2013. "Jordan: Second Review Under the Stand-By Arrangement, Request for Waivers of Nonobservance of Performance Criteria, and Modification of Performance Criteria," IMF Staff Country Reports 2013/368, International Monetary Fund.
    6. Baldwin, Richard, 2012. "Trade and industrialisation after globalisation?s 2nd unbundling: How building and joining a supply chain are different and why," CEPR Discussion Papers 8768, C.E.P.R. Discussion Papers.
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    1. Sanjay Kathuria & Mariem Mezghenni Malouche, 2016. "Toward New Sources of Competitiveness in Bangladesh," World Bank Publications - Books, The World Bank Group, number 22712.

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