@MilSpec @Nilgiri
An excellent achievement I must say.
It fun discussing with BD friends outside of this forum on it. If more ppl here were like
@Tanveer666 @Mage @Michael Corleone @bluesky (and @ashes wherever he's disappeared to now), there could be lot more productive discussion (since
@Zabaniyah and
@Anubis only pop in very rarely) ....but a mob of STRONK-feelz types hijacked this subforum a certain way sadly....and as was said in a certain play: "
they uttered such a deal of stinking breath, I durst not laugh for fear of opening my lips and receiving the bad air."
Not with your Current account deficit rates
Yep. South Asia as whole mostly gets net forex not from trade flow (which are in deficit territory) but from overseas citizens (and some foreigners + companies in case of India) parking long term deposits into local govt bonds (basically a portfolio confidence, which is lot higher in India compared to the others)....i.e a capital flow.
Do you know about remittance? On which Pakistan survives? We receive it from overseas Bangladeshis as well.
Remittances are already included in current account...which is in big and increasing deficit.
@doorstar
https://www.thedailystar.net/business/economy/current-account-deficit-set-cross-record-10b-1606693
BD institutional credibility is not keeping pace either, but has stagnated and some say even declined. So BD overseas citizens (earning in USD, GBP, Euro) etc that are not day wage labourer types (that do the C.A remittance instead) will have less reason than before to send long term maturity capital to BD reserves (by way of govt bonds etc).
BD must focus on economic, banking and stock market reform right now before its too late.
They need to reform their financial department, and bureaucracy system first. To creating a necessary ecosystems first, they need to uphold law and order, simplifying paperwork and permits along with supporting tax incentive. It will be hard for a new corporation to build an enterprise in Bangladesh, they need years if not decade to finish necessary paperwork and must pay visit to many institution
Yes, BD should improve its ease of doing business rather than ease of doing bureaucracy
South Korea started Chaebol in 1961.... I don't think they were much better off back then.
Well they had three huge factors they had going for them compared to South Asia right now:
1) Massive non-saturation of the model of exporting manufactures to the US (that is now much more crowded, esp because of China). Even with Japan existing and ahead in the chain... there was plenty of room if you look at the raw capital pressure difference of labour costs etc. Dictator Park chung hee (who was an officer in Japanese military during WW2, knew fluent Japanese etc) set things to utilise this expediently.
2) Japan nearby to provide both easy loans, expertise and investment regarding things they were leaving behind (or had developed excess capacity in like Steel etc) in their economy (and they had less than 100 million people back then....unlike China now which has 1.4 billion people to "get through" the process after putting its very large foot in the door back in the late 80s....thus they will be quite a lot more slower intensity wise to move this stuff to South Asia next...so South Asia has to improve itself much more to compete for same amount transferred before...).
3) Confucian + very homogeneous culture. Basically its more resistant to religion, identity politics, blame narrative politics seeping in (that inevitably create and focus the bureaucracy towards stated objective to share/redistribute whats already there rather than focusing on growing it to a much bigger size quickly). Ties into 1 + 2 well too.
So, simply put
1) Better education for a technically skilled workforce
2)low import duties
3)'encouraging' local SME's (which sectors should they target ,in context of bd?)
4) improving supply chain (how ?)
Basically everything and anything for 3) that is available on the global market right now. Things like cheap transport, consumer electronics and energy (photovoltaics etc) and all the services regarding these (and others) would be good starts.
Start at assembly and then move backwards in the chain with time to make components for the assembly....and then components for those components (each time checking with the opportunity cost/feasibility). When you let a legion of businesspeople handle this instead of a few govt bureaucrats (who could otherwise be employed to enforcing rule of law and standards), you generally hedge much better and more dynamically....which is crucial for SMEs to be sustainable.
4) ties into this, having much less bureaucratic resistance (by way of regulations, taxes, bribe overheads etc etc). Basically everything that is involved in creating a product from something and transporting it to be used/sold elsewhere. The more hands, eyes, govt clipboard checklists and govt cash registers/"inspections" etc (that have nothing to do with its creation and basic movement along the chain...but serve just to extract bribes and remind the laymen/peasantry of the 19th century victorian attitude laundered by brown sahibs this time around...for the "greater govt good") there are....the more "resistance" and bumpiness/friction there is ....that all translates to a cost (both open and hidden). The more cost there is, the less viability/buffer there is to compete.
Basically current bureaucratic arteries need to get unclogged as much as possible so more economic free market blood can get pumped everywhere.
They could've merged the earlier threads but merging the currently active threads like this is kinda vexing.
It sort of annoys me the most that if you click on the original thread post, it doesnt take you to where it is in the merged (pinned) thread...but the generic first page of the thread instead.
@Dubious @waz this could be a forum improvement (when merged, the original links take you to the post in the new merged thread rather than just thread start).
