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Introduction
Although one of the world's poorest and most densely populated countries, Bangladesh has made major strides to meet the food needs of its increasing population, through increased domestic production augmented by imports. The land is devoted mainly to rice and jute cultivation, although wheat production has increased in recent years; the country is largely self-sufficient in rice production. Nonetheless, an estimated 10% to 15% of the population faces serious nutritional risk. Bangladesh's predominantly agricultural economy depends heavily on an erratic monsoonal cycle, with periodic flooding and drought. Although improving, infrastructure to support transportation, communications, and power supply is poorly developed. Bangladesh is limited in its reserves of coal and oil, and its industrial base is weak. The country's main endowments include its vast human resource base, rich agricultural land, relatively abundant water, and substantial reserves of natural gas. Since independence in 1971, Bangladesh has received more than $30 billion in grant aid and loan commitments from foreign donors, about $15 billion of which has been disbursed. Major donors include the World Bank, the Asian Development Bank, the UN Development Program, the United States, Japan, Saudi Arabia, and west European countries. Bangladesh historically has run a large trade deficit, financed largely through aid receipts and remittances from workers overseas. Foreign reserves dropped markedly in 2001 but stabilized in the $3 to $4 billion range (or about 3 months' import cover). In January 2007, reserves stood at $3.74 billion, and they increased to $5.39 billion by January 2008, according to the Bank of Bangladesh, the central bank. Bangladeshs resilient economy has so far weathered the global economic crisis, growing some 5.9% in FY 2009. Exports dipped slightly, but the decrease was modest compared to other developing nations. Remittances from overseas workers remain strong, though growth in remittances could slow following an apparent slowdown in the numbers of Bangladesh workers going abroad. The United States is Bangladeshs third-largest export market, and trade between the two nations reached $4.2 billion in 2009. The economy is predicted to grow near 6.3% in 2011.
Despites having some progress in some sectors, phenomena like poverty, underdevelopment, unemployment and social chaos are a common picture in Bangladesh, and they are largely attributable to, among other things, lack of qualified and patriotic political leaders (Khan, 2007). The state of development in Bangladesh highlighting on poverty, education and healthcare is briefly elucidated below. Though there are many other indicators of development, the three major indicators discussed below will provide a lens to see the overall state of development in Bangladesh.
Despite the above picture of development and growth, currently however about 45 per cent population in Bangladesh are below poverty level while around 20 per cent are hardcore poor. According to a survey conducted by Bayes,2008, Bangladesh can achieve developed nation status if it can ensure 7- 8% GDP growth every year till 2040, and if the growth is tricked down among the rural masses.
Agriculture includes farming crops, animals, fishery and foresting contributions. Farming corps includes paddy, wheat, jute, vegetables, sugarcane, pulses etc; animal farming includes dairy, poultry, fishery, sericulture etc. Agricultures contribution to GDP is 18.64% (current prices) for the fiscal year 2008-2009 (Bangladesh Economic Review, 2008-2009). Industry is the second largest sector in the percentage contribution to GDP which includes garments & knitting sectors, factories, leather industry, food and beverage etc. The contribution of Industry sector to GDP is 28.61% (current prices) for the fiscal year 2008-2009 (Bangladesh Economic Review, 2008-2009). Service is the largest sector in the percentage contribution to GDP. It includes all services activities. It consists of trade service, construction, transport, storage and communication,
housing, public administration and defense, education, health, financial intermediates such as bank, insurance and other social and personal activities. Service organizations contribution of GDP of Bangladesh is 52.76% (current prices) for the fiscal year 2008-2009 (Bangladesh Economic Review, 2008-2009.) Since the liberation war of 1971 the Scenario of GDP of Bangladesh is changing gradually. Bangladesh is an agricultural country. Earlier it had a great contribution over GDP. But gradually the contribution is changing. Now the biggest contributor of GDP is the Garments sector. In 1973/74 contribution of agricultural sector on GDP was 48.3%, and in 2008/09 it was about 18.64%. Instead of this the growth rate in the industrial contribution did not increase as much as Bangladesh would want. In 1973/74 the contribution from industrial sector was 11.1% and now (2008-2009) it is 28.61%. Political instability and inconsistent economic and industrial policy might have the consequent reasons. Meanwhile we saw a great increase in service industrys contribution on national GDP, from 36% to 52.76%. Real GDP Growth Rate of Bangladesh (2002-2010)
Country 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 5.3 5.6 4.4 5.3 4.9 6.4 6.6 6.3 4.9 5.7 6
Bangladesh 5.2
Here, we have seen that in last three years the GDP of Bangladesh is declining. Even the GDP of 2010 is also low than the base year, 2006. Sectoral Contribution on the GDP of Bangladesh: Agriculture Sector:
The broad agriculture sector comprises about 18.64% of the total GDP. The overall growth rate of the broad agriculture sector for FY 2008-09 is provisionally estimated at 4.8% in real terms over FY 2007-08 (See Appendix 2.5.4 and 2.5.5). The sectors and sub-sectors performance under broad agriculture sector are presented below.
Agriculture and Forestry: Most Bangladeshis earn their living from agriculture directly or indirectly. The agriculture and forestry sector contributed about 16.03% of the total GDP in FY 2008-09, includes three sectors namely Crops and Horticulture Animal Farming Forest and related services
Although rice and jute are the primary crops, maize and vegetables has also greater importance. Due to the expansion of irrigation networks, some wheat producers have switched to cultivation of maize which is used mostly as poultry feed. Tea is grown in the northeast. Because of Bangladeshs fertile soil and normally ample water supply, rice can be grown and harvested three times a year in many areas. Due to a number of factors, Bangladeshs agriculture has achieved steady increases in food grain production. These factors include better flood control and irrigation, a generally more efficient use of fertilizers, and the establishment of better distribution and rural credit networks. With 28.8 million metric tons produced in 2005-2006 (July-June), rice is Bangladeshs principal crop. By comparison, wheat output in 2005-2006 was 9 million metric tons. Population pressure continues to place a severe burden on productive capacity, creating a food deficit, especially of wheat. But our agriculture is still fighting with many problems. Seasonal hunger (monga) remains a problem. Underemployment remains a serious problem, and a growing concern for Bangladeshs agricultural sector will be its ability to absorb additional manpower. The growth rate of this sector for FY 2008-09 is provisionally estimated at 4.81% which was 2.93% in FY 2007-08. The growth rate of this sector is assumed higher compared to the previous fiscal year due to the increase of growth in crops and horticulture sub-sector. Due to the higher production of food grains the growth is quicker than previous fiscal year.The production of minor crops, which include pulses, spices, sugarcane, fruits, vegetables and tobacco, is expected to be around the level of preceding year. These minor crops contributed
about 30% to the total output of the crop sub-sector. The output of the animal farming is likely to grow by 3.46% which was 2.44 %in the previous year. Fishery: Total inland and marine catches as estimated by the Directorate of Fisheries (DOF) will be 4.81% higher in FY 2006-07 (2.44 million metric tons) than that in the previous year. The fishery sector is likely to grow by 3.99% in FY 2006-07 compared with 3.91% in FY 2005-06. At constant prices the contribution of fishery sub-sector is 4.3% to the total GDP of FY 2006-07. In FY 2008-09 estimated growth rate is 4.01% which is lower than the previous FY 2007-08, 4.18%. Mining and quarrying: Mining and quarrying is likely to sustain its growth with 10.02% in FY 2006-07 which is higher than 9.26% in FY 2004-05. Production of coal at Barapukuria is included in other mining sub-sector from January06. Consequently, the growth rate of other mining sub-sector has increased by 8.90% in FY 2006-07 compared to 8.84% in the previous year. In FY 2008-09 estimated growth rate is 9.37% which is higher than previous FY 2008-09, 8.94%. Industry sector:
The industry sector accounts for 28.61% of GDP at constant prices for FY 2008-09. The growth rate of the broad industry sector is provisionally estimated 5.92% for FY 2008-09 compared to 7.21% for FY 2007-08. It is a decline. Manufacturing: On the basis of data available up to January 2007 and also taking into consideration the trend of production, the growth rate of this sector for FY 2008-09 is provisionally estimated at 5.72% against 5.68% in the previous year. The growth of manufacturing was fueled mainly by the knitwear, ready-made garments and cotton textile. A brief analysis of the performance of this sector is given below: Production of large and medium scale manufacturing industries, particularly knitwear, readymade garments, cotton textile, pharmaceuticals, wood products, iron and steel, ceramic, cement, plastic products etc. showed substantial growth in the first seven months of FY 2006-07. The performance of other major industries registered significant growth except leather and leather products, paper and paper products and petroleum product.
Small and cottage industries showed a substantial growth during July-December, 2006 over the same period of the previous year. Textile sector: This sector is the most developing and prosperous source of Bangladesh. Textile industry, which includes knitwear and ready-made garments along with specialized textile products, is the nations number one export earner, accounting for 80% of Bangladeshs exports of $15.56 billion in 2009. Bangladesh is 3rd in world textile exports behind Turkey, another low volume exporter, and China which exported $120.1 billion worth of textiles in 2009. The industry employs nearly 3.5 million workers. Current exports have doubled since 2004. Wages in Bangladeshs textile industry were the lowest in the world as of 2010. The country was considered the most formidable rival to China where wages were rapidly rising and currency was appreciating. After massive labor unrest in 2006the government formed a Minimum Wage Board including business and worker representatives which in 2006 set a minimum wage equivalent to 1,662.50 taka, $24 a month, up from Tk950. In 2010, following widespread labor protests involving 100,000 workers in June, 2010, a controversial proposal was being considered by the Board which would raise the monthly minimum to the equivalent of $50 a month, still far below worker demands of 5,000 taka, $72, for entry level wages, but unacceptably high according to textile manufacturers who are asking for a wage below $30. Power, Gas and Water: The growth rate of the power is expected to be 3.64% in FY 2008-09 as compared to 6.68% in FY 2007-08. There is a decreasing trend in the production of gas and 73% of total commercial consumption is fulfilled by gas. The total production of gas in FY 2004-05 and FY 2005-06 were 486.75 billion cubic feet and 522.55 billion cubic feet. The total estimated demand of gas for FY 2006-07 are 573.18 billion cubic feet which is 9.69% higher than actual production of the previous fiscal year. The growth rate of the gas and water is expected to be respectively 8.63% and 8.91% in FY 2008-09 as compared to 7.72% and 6.00% in FY 2007-08. Construction: Cement, iron and steel are the major inputs of the construction sector. The domestic production of cement in the first six months of FY 2005-06 is higher than that of the same period of previous year. The construction sector is, therefore, projected to grow by 5.72 percent during FY 2008-09 which was 5.68% in FY 2007-08.
Wholesale and Retail Trade: The output of this sector is estimated a growth rate of 6.35% compared to 6.82% in FY 2007-08. Transport, Storage and Communication Sector: The transport, storage and communication sector is expected to achieve a growth rate of 7.61 %in FY 2008-09 which was 8.55% in previous fiscal year. Post and Telecommunication services stood at the forefront with a growth of 23.49% in FY 2006-07. Communication services, particularly the Mobile Phone Services (MPS) market continued to derive the telecommunications industry as strong which led to the high growth of Post and Telecommunication sub-sector. The contribution of this sector also increased in FY 2006-07 and stood at 10.21% of total GDP. Real Estate, Renting and Business Activities Sector: The growth rate in this sector is provisionally estimated at 3.81% in FY 2008-09 compared to 3.75% in FY 2007-08. Services Sector:
Total output of the services sector consists of the collective outputs of the wholesale and retail trade; hotel and restaurant; transport, storage and communication; financial intermediations; real estate, renting and business activities; public administration and defense; education; health and social work, and community, social and personal services activities. The sectoral share of the services sector is 52.76% of the total GDP. The contribution of cinema halls, cinema production houses, tele films/drama production houses and private TV channels have been considered and added from FY 2004-05.
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underlying trend toward generating higher income inequality indicating a limited scope of pursuing the growth and equity objectives simultaneously within the growth pattern itself. Several features of the growth process, however, have been identified as important elements for ensuring growth of the Bangladesh economy.
First, in view of the important contributions of the demand-driven non-tradable sectors,
the future growth policies should simultaneously focus on accelerating the growth of both tradable and non-tradable sectors of the economy. This will require, along with exploring new sources of growth especially with linkages with the external markets and sustaining the growth of the present export-linked activities like readymade garments and remittances, prudent macroeconomic policies and adequate policies for sustained growth of agriculture to provide the required demand stimuli from both internal and external sources.
Second, the contribution of productivity growth to the overall growth of the economy is
low. For higher growth, productivity needs to increase through efforts to promote technological progress and enhance efficiency in resource use across all sectors of the economy.
Third, the past evidence shows that economic reforms, if appropriately designed and
credibly implemented, will bring powerful changes in the long-run growth prospects of the economy.
Fourth, the existing inequity in the distribution of physical, human and other assets and
the economys structural characteristics are such that the success in bringing a more equitable process of growth would depend more on pursuing asset building policies to create wider access for the poor to growth opportunities rather than manipulating the growth of different production sectors of the economy. In this context, the policies need to be conceived within the broader domain of developing human capital including health, education, nutrition and social, political and other non-economic assets that will enhance the capabilities of the poor. The pursuit of pro-poor economic growth in Bangladesh should follow a process in which growth is accompanied by public policies and investments that maximize growth along with generating a superior pattern of distribution across different forms of assets rather than a strategy that maximizes economic growth alone. In particular, the study argues that urban growth policies having strong pro-poor elements are likely to bring greater benefits for the urban poor while, in
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the rural areas; the need is to pursue growth-maximizing policies supported by a broad range of asset building and targeted programs.
Bangladesh Income Tax Rates for individuals other than female taxpayers, senior taxpayers of 65 years and above and retarded taxpayers - Assessment Year 2010 - 2011 First Next Next Next Rest Amount BDT 1,65,000 BDT 2,75,000 BDT 3,25,000 BDT 3,75,000 Nil 10% 15% 20% 25%
Bangladesh Income Tax Rates for female taxpayers, senior taxpayers of age 65 years and above - Assessment Year 2010 - 2011 First Next Next Next Rest Amount BDT 1,80,000 BDT 2,75,000 BDT 3,25,000 BDT 3,75,000 Nil 10% 15% 20% 25%
Bangladesh Income Tax Rates for retarded taxpayers - Assessment Year 2010 - 2011 First Next Next Next Rest Amount BDT 2,00,000 BDT 2,75,000 BDT 3,25,000 BDT 3,75,000 Nil 10% 15% 20% 25%
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Minimum Non-resident
tax
for
any 25%
individual (other
assessee than
is
Tk.
2,000
Individual:
non-resident
Bangladeshi)
On Dividend income: 20%. B. Corporate Tax: The standard rate of corporate tax in Bangladesh is 27.5% in 2010 - 2011 tax year. This is the standard corporate tax rate applicable to publicly traded companies in Bangladesh, a list including tax rates for other corporations are as follows:
Publicly Traded Company Non-publicly Traded Company Bank, Insurance & Financial Company Mobile Phone Operator Company Publicly Traded Mobile Operator Company
If any publicly traded company (excluding Mobile Operator Company) declares more than 20% dividend, 10% rebate on total tax allowed.
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counterbalancing ample savings mobilization, investment spending and finally, higher economic growth of a country. The interest rates according to Bangladesh Bank: End of period Bank rate Call money market's weighted average interest rates on Borrowing Lending 11.64 9.54 10.35 9.50 8.64 10.93 4.83 4.51 3.51 4.35 5.07 6.62 3.33 6.36 6.97 6.19 11.38 33.54 9.76 9.23 11.64 9.54 10.35 9.50 8.64 10.93 4.83 4.51 3.51 4.35 5.07 6.62 3.33 6.36 6.97 6.19 11.38 33.54 9.76 9.23 Schedule banks' weighted average interest rates on Deposits Advances 6.39 6.54 6.80 11.34 11.41 11.95 Spread
2011 January February March April May June 2010 January February March April May June July August September October November December 2009 January February
5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
6.31 6.23 6.09 6.09 6.09 6.01 6.00 6.04 6.01 6.03 6.07 6.08 7.17 7.08
11.51 11.47 11.30 11.32 11.31 11.31 11.24 11.23 11.17 11.21 11.23 11.34 11.73 11.67
5.20 5.24 5.21 5.23 5.22 5.30 5.24 5.19 5.16 5.18 5.16 5.26 11.73 4.59
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All NRBs/foreigners for the purpose of making investment in our market have to have a Beneficiary Owners (BO) account and a client account opened with any of the brokerage house as well as entering into agreement with the Authorized Dealer or Custodian Bank or Portfolio Manager and thus maintain the investment activities from abroad. List of Brokers together with regular market scenario, fundamental status of the companies listed on the Exchanges and many other relevant necessary information would be available at the website of DSE (www.dsebd.org). Opportunity for Foreign Investors Bangladesh has adopted a very liberal industrial policy to attract foreign investment - No limitations pertaining to equity participation i.e. up to 100 percent foreign private investment allowed. - Except five reserve sectors, all industries are open for private investment. Industries earmarked for public sector investment are in the reserve sector namely : (i) Arms, ammunition and other defense equipment and machinery (ii) Production of nuclear energy (iii) Forest plantation and mechanized extraction within the bounds of reserved forests (iv) Security printing (currency notes ) & minting and (v) Railways & air transportation (except certain domestic routes and air cargo) - No permission of the government required to set up new industries. - For obtaining industries facilities like procurement of land, electricity, gas and sewerage connection, importation of capital machinery and raw materials tax rebate, duty drawback facilities etc. industries need only to be registered with the board of investment (BOI) in a
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Facilities for Non-Resident Bangladeshis Non-resident Bangladesh investors enjoy facilities similar to foreign investors Allowed to buy newly issued shares/debentures of Bangladeshi companies 10 percent reserved quota for non-resident Bangladeshis in primary shares (IPO) Foreign currency deposits in the Non-resident Foreign Currency (NFCD) account
Investment Guarantee Foreign Private Investment (Promotion & Protection) Act1980 ensures legal protection to foreign investment in Bangladesh against nationalization and expropriation. It also guarantees repatriation of capital and dividend and equitable treatment with local investors. Adequate protection is available for intellectual property rights, such as patents, designs & trademarks and copyrights.
FACILITIES AND INCENTIVES Tax holiday 5-10 years depending on location of Industries. 15 years tax holiday for private power generation companies. Facilities for repatriation of invested capital, profit & dividend. Exemption of tax on interest on foreign loan. Tax exemption on royalties, technical know- how & technical assistance fees. Avoidance of double taxation on the basis of bilateral agreements. Six month multiple
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Other Services Trade and Commerce Chemicals and Phrmctcls Cement Fertilizer Textiles Telecommunications Power Gas and Oil in million USD 0 76 253 142
440 909
903 965 581 1241 200 400 600 800 1000 1200 1400
Over the period 1998-2007, gas and oil, textiles, and trade and commerce dominated the first half in terms of FDI inflow whereas telecommunication sector was the highest recipient during the second half of the ten year period. On the other hand, gas and oil, and trade and commerce
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sectors showed better performance during the last two years but the textiles sector experienced declining inflow of FDI in the second half of the decade.
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In any South Asian country, like India; Globalisation has brought in new opportunities to developing countries. Greater access to developed country markets and technology transfer hold out promise improved productivity and higher living standard. Till the nineties the process of globalisation of the Indian economy was constrained by the barriers to trade and investment liberalisation of trade, investment and financial flows initiated in the nineties has progressively lowered the barriers to competition and hastened the pace of globalisation.
India
India opened up the economy in the early nineties following a major crisis that led by a foreign exchange crunch that dragged the economy close to defaulting on loans. The response was a slew of Domestic and external sector policy measures partly prompted by the immediate needs and partly by the demand of the multilateral organisations. The new policy regime radically pushed forward in favour of a more open and market oriented economy. Major measures initiated as a part of the liberalisation and globalisation strategy in the early nineties included scrapping of the industrial licensing regime, reduction in the number of areas reserved for the public sector, amendment of the monopolies and the restrictive trade practices act, start of the privatisation programme, reduction in tariff rates and change over to market determined exchange rates. Over the years there has been a steady liberalisation of the current account transactions, more and more sectors opened up for foreign direct investments and portfolio investments facilitating entry of foreign investors in telecom, roads, ports, airports, insurance and other major sectors. India has to concentrate on five important areas or things to follow to achieve this goal. The areas like technological entrepreneurship, new business openings for small and medium enterprises, importance of quality management, new prospects in rural areas and privatisation of financial institutions.
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Thailand
Thailand is classified as a developing country. Majority of the Thai people work in agriculture sector. In developed country, technologies are the indicator of economic and peoples wealth. If Thailand wants to be able to compete in the international market, the development and implementation of technology are required. In Thailand, information technology could be utilized in order to develop high-quality human resource, develop own technology, and increase the channels to access information among the country.
The problem of developing country is deficiency of people who have knowledge in information technology. Thai government is rushing to develop their people. There are many activities to develop high-quality people, for examples, giving the scholarship, arranging the information technology related test. Having sufficiency qualified human resource will increase the speed of development of technology.
An increase in the channels to access to information is very important because most people are not familiar with technology. They have little chance in receiving information. The government has launched Lower cost PC + Open source software that increases opportunity to gain access to information. For the rural, there is a plan to establish center of technology in community.
Developing human resource, developing own technology, and increasing in channels to access information are the examples of utilization of information technology in Thailand. So, having good knowledge of information technology leads to the success on competition in the global market.
Malaysia
In the last 20 years, Malaysia economy has been transformed from a protected low income supplier of raw materials to a middle income emerging multi-sector market economy driven by manufactured exports, particularly electronics and semiconductors, which constitute about 90% of exports. Since 1970, and the institution of the New Economic Policy (NEP) following deadly
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riots in 1969 against economically dominant ethnic Chinese, the government's commitment to the free market has been hedged by its bumiputurna (literally, "sons of the soil") policies aimed at providing "constructive protection" for Islamic Malays against economic competition from other ethnic groups and foreign investors, particularly in the domestic market. In the Asian financial crisis of 1997, most of the major companies that the government had privatized and reserved for bumiputurna leadership, including Proton, the national car company, Malaysian Airlines, the Renong engineering group, and the Malaysian Resources media group, had to be renationalized to prevent their collapse. A vigorous recovery program mounted by the government that was showing positive results in 1999 and 2000 ran abruptly into the wall of the 2001 global slowdown. Worldwide, foreign direct investment dropped almost 50%, and in Malaysia the decline was an even more precipitous 85%. Gross domestic product growth dropped to 0.7% for 2001, from its usual 7% to 9%. Business in Malaysia remains dominated by non-Malays. Annual growth rates, which had been running 7% to 9%, came abruptly up against a wall in 2001. The government remains generally committed to a policy of free enterprise, although it owns and operates the railway and the majority of the communications systems and has become increasingly involved in certain key industries. In 1970, a government holding company, Perbadanan Nasional (PERNAS), was created to encourage Malay-controlled businesses; in 1975, the government attempted, through PERNAS, to strengthen Malaysian interests in the tin-mining sector. Also in 1974, the government established the National Oil Co. (PETRONAS), with the overall aim of acquiring majority control of the country's petroleum operations. The Industrial Coordination Act of 1975 attempted to accelerate indigenous Malay participation in the economy by setting limits on foreign participation in the processing, domestic distribution, and export of local raw materials. In 1971, the New Economic Policy (NEP) was adopted, with the aim of channeling a greater share of future economic growth into Malay hands. It specifically called for raising the level of corporate ownership by Malays to 30% by 1990, reducing corporate ownership by other Malaysians (i.e., Chinese and Indians) to 40%, and restricting foreigners to ownership of no more than 30%. Short-term investment strategies are set forth in a series of economic plans. The fourth Malaysia plan (198185) proposed a level of development spending of M $42.8 billion and called for acceleration of the NEP goals for Bumiputra economic participation. Major industrial and
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infrastructural development projects included a M $900-million bridge between Pulau Pinang and the mainland and a M $600-million automobile-manufacturing plant, both of which opened in 1985. Recent economic planning has stressed a "look East" policy, with Malaysia attempting to emulate the economic successes of Japan and the Republic of Korea by importing technology from those countries. In response to deteriorating prices for oil and other exports, the fifth Malaysia plan (198690) has moved away from the goals of the NEP, aiming instead at promoting foreign investment, particularly in export industries. The year 1990 marked the culmination of several economic development plans: the fifth Malaysia plan (FMP), 198690; the conclusion of the first outline perspective plan (OPP1) 1971 1990; and the completion of the new economic policy (NEP) 19711990. The FMP emphasized industrialization. Specific targets were formulated to ensure that the distribution of ownership and participation in the commercial and industrial sector would be characterized by ethnic group participation, 30% bumiputraMalays and other indigenous peoples of Malaysia, 40% other Malaysians (Chinese and Indian descent), and 30% foreign. The government provided funds to purchase foreign-owned shareholding on behalf of the Bumiputra population, increasing their equity to 20% by 1990. These policies are part of the new national development policy, although specific targets and time tables have been dropped. A post-1990 NEP defined Malaysian economic strategy for full development by 2020. Three ten-year outline perspective plans, which included a new development plan and six five-year plans, made up the NEP. A second outline perspective plan (OPP2) 19912000 aimed to sustain growth momentum and to achieve a more balanced development of the economy. The sixth Malaysia plan called for an average annual growth rate of 7.5%, and expenditures on infrastructure were included to ensure prospects for further development. Development trends are toward privatization, encouraging the spread of industry throughout the country, increasing manufacturing in the free trade zones, and providing financing for industry through the establishment of specialized financing institutions. A five-year development plan announced by Dr. Mahathir on 6 May 1996 forecasted average growth of 8% per year from 1996 to 2000. But it also tackled issues that bothered skeptics of the Malaysian economy: low rises in productivity, a skills shortage, and a gaping current-account deficit. In 1997 and 1998, these issues, along with a global financial crisis based in Asia caused
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the downturn that skeptics expected. Prospects for continuation of the second industrial master plan for 1996 through 2005 seemed grim, although the economy began to rebound in 1999. Massive capital and infrastructure projects have attracted foreign investment and international respect.
1200 1000 800 2005 600 400 200 0 2006 2007 2008 2009
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PROSPECTS
In examining the economy of Bangladesh, wherever one turns the problems crowd in and threaten to overwhelm the analysis. Underlying problems that have threatened the young nation remain unsolved. These problems include overpopulation and inadequate nutrition, health, and education resources; a low standard of living, land scarcity, and vulnerability to natural disaster; virtual absence of valuable metals; and inadequate government and bureaucratic structures. Yet the brief history of independent Bangladesh offers much that is encouraging and satisfying. The World Bank, leader of the Bangladesh Aid Group, described the country in 1987 as a success story for economic development and expressed optimism that the goals of the Third Five-Year Plan, and longer term development goals as well, could be attained. Government policies had been effective in stimulating the economy. The private sector had benefited from an environment of greater economic freedom and had improved performance in banking and production of jute, fertilizer, ready-made garments, and frozen seafood. The average growth rate of economy had been a steady, if unspectacular, 4 percent since the beginning of the 1980s, close to the world average for developing countries. The picture of day-to-day and even year-to-year performance of the economy of Bangladesh is a mixture of accomplishment and failure, not significantly different from that of the majority of poor Third World countries. The government and people of Bangladesh are entitled to take some pride in the degree of success they have achieved since independence, especially when one contrasts their success with the gloomy forecasts of economists and international experts. The international donor community, led by the World Bank, similarly can be proud of the role it has played in assisting this "largest poorest" nation to become a respected member of the family of nations. Some other prospects are listed below-
Tourism industry may be turned into the major source of earning foreign currency for Bangladesh. It has the ability to introduce Bangladesh with the people around the world.
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Tourism industry can also help us to create a better image in the world. It can also help Bangladesh in business purpose. Bangladesh has a large number of tourist spot in its area. All of them are special in their own character. So all of them have individual attraction for the tourist if some contractual work is done for easier movement. These tourist spots also can eliminate the unemployment problem of Bangladesh. Specialist said that more than 30% employment could be increased if the government takes proper step for the development of tourism areas. The government of Bangladesh can earn a huge amount of revenue from this sector which can help Bangladesh to establish a healthy economic condition. If we can make a position in the 7 wonders through Coxs Bazar and Sundarbans then the prospects of tourism industry in Bangladesh will be higher and higher. As a third world country in the world Bangladesh can promote its position through the proper utilization of tourism industry. Thus the overall condition can be improved by proper utilization of tourism sector
the host community in their development plans. Local communities should be encouraged and expected to participate in the planning, development and control of tourism with the support of government and the industry. Particular attention should be paid to involving indigenous people, women and minority groups to ensure the equitable distribution of the benefits of tourism.
Bangladesh: An Investment Overview Haaor Tourism: could be a fantastic way of diversification provided integrated plans
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Different focuses are required for both inbound and domestic tourism:
For attracting foreign tourists to Bangladesh, discussion of problems with productive suggestions and solutions must be presented through media, and there must be an appropriate committee at government level for initiating discussion and drawing conclusion. Bangladesh tourism industry may attract growing number of tourists if the country can initiate and undertake proper sales promotion plan with the understanding of demarcation line between the tourists-domestic and international. Though tourism has achieved a great deal in the last few years, yet many challenges remain: The increasing need for best practice management. The tourism community continues to face significant challenges in awareness building and education and actively working against green washing within the tourism industry. Governments have developed tourism strategies, but not all have been well integrated and supported by action Stronger leadership and strategies are needed in order to substantially decrease tourism's carbon footprint generated from multiple sources including facility operations and transport related greenhouse gas emissions. Country now has national tourism associations. But their role in providing links between governments, NGOs, businesses and citizens and strengthening tourism globally must be recognized, and more support needs to be provided for their work.
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The tourism community is expected to be more inclusive of innovative and socially equitable approaches. This innovative approach must include the active mobilization of Indigenous communities, women, and local professionals and designers as recognized and equal business and sustainable development leaders. Eco-tourism should Receive Special Attention Bangladesh should seize the opportunity to make a massive projection of its eco-treasures, particularly the Sundarbans (worlds largest mangrove forest) and the quiet valleys in the Chittagong Hill Tracts. At the same time, there must be pragmatic efforts to complete basic infrastructures at the shortest possible time to enable the tourists be assured of such primary needs. This could be stimulated by encouraging more private enterprises to come to this sector. A wise step could be to allow foreign investment in developing such infrastructure. Benefits of CIRCUIT TOURISM should be exploited: While there are easygoing hills and mountains in Bhutan, Nepal and India, there are the forests and long stretch of sea-beaches in Bangladesh. For any nature-wandering tourist from Europe or North America or even Japan and Australia, a visit to all these through a single package deal could bring in boon. This requires an understanding of the concept of CIRCUIT TOURISM by the policy planners and business community of the tourism sector and work accordingly so that the circuit tourism is promoted. A tie-up with the Indian and Nepalese tour operators can help our tourism industry to get something out of the circuit tourism. Few Additional Steps are required for harnessing the benefits of Circuit Tourism:
Simplifying the entry and exit procedures. Visa issuance can be abolished for those travelers who desire to stay Bangladesh for maximum stay of three months. Simplification of currency regulations: the amount of foreign travelers unspent Bangladeshi taka should be allowed to reconvert into the original foreign currency on departure without any hassle.
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Lightening of international tourists of their travel burdens through: group discount of fares on various domestic transportation means, lodging and dining tax exemption for guests at government-registered hotels, and commodity tax exemption for visitors in their purchase of certain goods and souvenir articles.
Bangladesh Government can enact necessary laws and regulations governing the activities of travel agents and interpreter-guides in order to help them develop properly, and at the same time protect foreign travelers. These may be called, respectively, the Travel Agents Law and the Tourism Guides Law.
Offering promotional prices on fares, hotel rates, prices of local transportation, and restaurant prices.
Persistent efforts and joint cooperation of the concerned agencies - government, semigovernment and private sector.
To develop a marketing planning model for Bangladesh tourism sector, the main focus, should be on a dynamic and continuous process with interrelated and interacting variables. The planning model should begin with the tour operator/tourist (client) and should also end with the client. The aim of a systematic planning process should be to focus attention on the relevant strengths, weaknesses, threats and opportunities of the tourist sector.
A mechanism should be developed, which can bring longer-term plans together with annual and tactical planning activity for compatibility purposes. This can help develop a tourism strategy which will be a unified, comprehensive and integrated plan.
The degree of co-operation between the government and private sectors as regards the codevelopment of marketing strategies and tactics is an important and related issue in this regard.
There may also be joint form of advertising campaigns and public relations exercises in major tourist-generating markets undertaken by BPC (the national tourism organization) and private tour operators and travel agents.
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Conclusion
Almighty has blessed Bangladesh with bounties of nature. Bangladesh can be termed as a vast natural garden having numerous musical birds and countless rivers teeming with variety of tasty fishes. This country is like a painter's dream with a rich tapestry of colors, creed and texture. This sweet country was genuinely described as a soil of emerald and silver by the ancient chroniclers. The Mughal Official documents styled Bangladesh as jannat-ul-bilad, i.e. the paradise of countries. There is a great scope to combine all aspects of tourism to make tourism products of Bangladesh attractive. Bangladesh is one of the few countries in South Asia with varied cultures for ages. It has a delicate and unique attraction of its own to offer to tourists both domestic and foreign. The conventional focus of the tourist trade has always been on the material facilities offered by a country rather than on its actual charms. Perhaps it is one of the reasons that Bangladesh has rarely been highlighted in the World's tourists' map as an icon. This country is a land of mammoth beauty, hundreds of circuitous rivers, crystal clear water lakes bordered by ever green hills, lush tropical rain forests, wonderful cascades of green tea gardens, world's largest mangrove forest preserved as World Heritage. It is the habitat of the Royal Bengal Tiger and the wild lives, deer, warbling of birds in green trees, wind in the paddy fields, plenty of sunshine, world's longest natural sea beach, number of Haaoars (natural water reservoirs), rich cultural heritage, remnants of ancient Buddhist civilizations and colorful tribal lives, - Bangladesh creates an unforgettable impression of a land of peace. People from abroad will appreciate our culture and the environment. These are not simply sightseeing excursions, but real-time learning experiences. Here none will find that he is not alone. With us, any place in Bangladesh is a home, sweet home. The tribal people like us are part of Bangladesh demonstrating cultures and traditions of their own. Their diverse languages and cultural heritage enrich the collective culture of Bangladesh. For Bangladesh, it should be a matter of great opportunity to develop its tourism sector, which unfortunately has been at low web and could not be any significant contributory factor for our national development so far. There must be pragmatic efforts to complete certain basic
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infrastructures at the shortest possible time to enable the tourists be assured of such primary needs. This could be stimulated by encouraging more private enterprises to come to this sector where competitiveness shall bring in great improvement in the standard of services which have been witnessed in the case of long haul road transports in the country over the last few years. In todays world of market economy, a wise step could be to allow foreign investment in developing such infrastructure thus earning a huge amount of foreign exchange and preserve many of its endangered forest and woodlands.
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