LDC graduation: Bangladesh to see as opportunity to rethink its reliance on RMG: UN official

[Black_cats]

LDC graduation: Bangladesh to see as opportunity to rethink its reliance on RMG: UN official​

Prothom Alo English Desk
Published: 29 May 2023, 09: 16

UN Special Rapporteur on extreme poverty and human rights Olivier De SchutterUNB

The government should use its upcoming graduation from LDC status in 2026 as an opportunity to rethink its reliance on the ready-made garment industry, UN Special Rapporteur on extreme poverty and human rights Olivier De Schutter has said.

The RMG industry currently accounts for 82 per cent of the country’s export revenue and employs 4 million workers, reports news agency UNB.

“As Bangladesh moves towards graduation, it continues to focus much of its energy on providing tax incentives to international investors and establishing special economic zones,” he said on Monday at the end of a 12-day visit to the country.

The Special Rapporteur will present his final report on Bangladesh to the Human Rights Council in June 2024.

The government's time and resources would be better spent on ensuring fair wages, educating and training workers, and improving social protection, the UN expert said.

“Not only will this attract investors who care about their reputation, it will pave the way for a new form of development in Bangladesh – one driven by domestic demand rather than exploitative export opportunities,” he said.

The government of Bangladesh must move away from its reliance on cheap labour if it is to ensure a rights-based development following its expected graduation from Least Developed Country (LDC) status, the UN poverty expert said.

“A country’s comparative advantage cannot lie in keeping its people poor,” he said.

“Bangladesh’s development has largely been driven by one export sector – the ready-made garment industry – which is highly dependent on keeping wages low,” he said.

Bangladesh to see as opportunity to rethink its reliance on RMG: UN official

The government should use its upcoming graduation from LDC status in 2026 as an opportunity to rethink its reliance on the ready-made garment industry, UN Special Rapporteur on extreme poverty and human rights Olivier De Schutter has said

en.prothomalo.com

 

[bluesky]

LDC graduation: Bangladesh to see as opportunity to rethink its reliance on RMG: UN official​

Prothom Alo English Desk
Published: 29 May 2023, 09: 16

UN Special Rapporteur on extreme poverty and human rights Olivier De SchutterUNB

The government should use its upcoming graduation from LDC status in 2026 as an opportunity to rethink its reliance on the ready-made garment industry, UN Special Rapporteur on extreme poverty and human rights Olivier De Schutter has said.

The RMG industry currently accounts for 82 per cent of the country’s export revenue and employs 4 million workers, reports news agency UNB.

“As Bangladesh moves towards graduation, it continues to focus much of its energy on providing tax incentives to international investors and establishing special economic zones,” he said on Monday at the end of a 12-day visit to the country.

The Special Rapporteur will present his final report on Bangladesh to the Human Rights Council in June 2024.

The government's time and resources would be better spent on ensuring fair wages, educating and training workers, and improving social protection, the UN expert said.

“Not only will this attract investors who care about their reputation, it will pave the way for a new form of development in Bangladesh – one driven by domestic demand rather than exploitative export opportunities,” he said.

The government of Bangladesh must move away from its reliance on cheap labour if it is to ensure a rights-based development following its expected graduation from Least Developed Country (LDC) status, the UN poverty expert said.

“A country’s comparative advantage cannot lie in keeping its people poor,” he said.

“Bangladesh’s development has largely been driven by one export sector – the ready-made garment industry – which is highly dependent on keeping wages low,” he said.

Bangladesh to see as opportunity to rethink its reliance on RMG: UN official

The government should use its upcoming graduation from LDC status in 2026 as an opportunity to rethink its reliance on the ready-made garment industry, UN Special Rapporteur on extreme poverty and human rights Olivier De Schutter has said

en.prothomalo.com

No rethinking will help BD export items to increase unless the country goes for industrial expansion and produces more industrial goods.

Many countries started with textile but shifted to other more value-added industrial goods. But BD sticks to its low value textile goods and is now unable invest in industries as the country has to spend dollars on repaying more than $100 billion worth of loans.

The repayment value will reach $5 billion every year. The govt repays also huge money against domestic borrowing. When it restricts import it loses tax money and when it allows import of industrial goods it loses dollars.

All because of initiating infrastructure construction with foreign borrowed money.

 

[bluesky]

A country needs to industrialize and produce more and more value added goods to develop its economic status. BD is full of talks and little substance. It thinks a few employment in RMG sector will propel it to raise its status.

 

[pikkuboss]

Bangladesh invested all its fortune on RMG, took loans to build RMG clusters which is all good but now they are stuck in the low margin, cheap labour, low skilled sector. They don't have much capital left to venture into other sectors and domestic and international loan repayments are emptying their govt coffers. Bangladesh will be stuck in this for a long long time.

 

[SoulSpokesman]

@bluesky

I have a more fundamental question- does BD have the quality of manpower to scale up to higher levels of industrialisation. I have serious reservations about India's manpower quality, training and skills etc which will constrain our growth

Regards