Provide technical support for expansion of exports

The multiplicity of views in knowledgeable quarters about the country's export growth and general economic performance, as highlighted in press reports over the last several days, may not be very worrisome in every respect. But each of those views reflects on some discomforting peculiarities of a few vital aspects of the economy. These may not go unnoticed in the official cycle and all other relevant quarters while a pre-budget discussion arranged few days ago by a prominent research organisation heard speakers suggesting to the government to take measures against price hike of essentials and restore normaly in the economic and social lives of the nation, the Export Promotion Bureau (GPB) spoke about 21.13 per cent export growth in the last eight months.

In the same discussion, former Adviser of the immediate past Caretaker government Dr. Akbar Ali Khan, who has sound background in financial management, said petroleum price was hiked when inflation was already on the upsurge. He warned that inflation could be a great challenge for the Caretaker government. Several former finance ministers and economists questioned whether growth in the current fiscal would be 6.5 per cent, as anticipated in the official circle. One suspected whether it could be even 6.0 per cent. His view nearly tallies with US-based Citigroup's latest projection, which is exactly 6.0 per cent. Seen against recent reports about Boro production having badly suffered in seven a out of 10 agricultural divisions of the country owing to the crop having borne no corns and business being in a downward swing under supposedly a fear psyche originating from the tough anti-hoarding and anti-corruption drives-one cannot be sure that a lower than projected economic growth may not ultimately come true. The adverse impact on economic activities during the restive period from late October to early January of this fiscal (2006-2007) cannot be discounted either.

While divulging the big news about export having fetched $8.924 billion in the last eight months of the current fiscal against about $6.63 billion during the corresponding period of the last one, the EPB explained that the 21.13 per cent export growth was due mainly to technical support provided for export diversification and cash incentives extended by the government. But the predominance of woven garments and knitwear, which receive cash incentives from government, in the export earning collectively as much as $6.094 billion, makes it difficult to guess what has actually led to higher export earning.

One needs to critically analyse another matter pertaining to export earning to avoid any mistake of taking this growth as a measure of overall health of the economy. The EPB's statistics showed export incomes from jute goods, chemical fertiliser, textile fabric, bicycle, new jute, tea and electronics most of which are raised entirely locally, have declined. The economy is the ultimate master what finally rules the rulers and the ruled. Hindsight stretching over the long span of time since this country's Independence would unveil how powerful that master is. Since it is always the best to prepare for the worst while hoping for the best, the Caretaker government should not even remotely undermine the power of the economy, which can be either very satisfying or devastating depending on the nature of its growth trend.

Bangladesh maintains diplomatic missions in many countries and this is a costly exercise for a least developed country (LDC). Clearly, diplomatic missions of Bangladesh abroad are not to be reared for just representational functions and little else. The missions, in the vital interests of the nation, need to function as centres for increasing trade, manpower export and developmental assistance for the country to justify the costs of their expensive upkeep. But a report published in a national daily recently stated that 21 out of our 44 diplomatic missions have failed to attain their export promotion targets in the host countries in the fiscal year 2006-07.

Bangladeshi missions abroad are limited in number. The main concern is that the commercial wings in the real sense of the term exist in only 20 of them and even these limited number of commercial wings have been suffering badly from not having adequate staff at their disposal. Clearly, the imperative is to fill these positions at the understaffed commercial wings of the mission at the fastest. But the staffing must not follow the tradition of dispensing favours to loyal bureaucrats. The posts must go to really dynamic and resourceful persons.

The government may go for recruitment of suitable persons with the background and talent for these posts from outside the civil services. They should then be given renewable contractual appointments with fixed annual targets set before them for preparing reports on trade, actual establishment of contracts between Bangladeshi exporters and importers of host countries, and promotional activities. The contracts may be continued on fulfilment of the set targets but rescinded for non-fulfilment of the same. Rewards may be given for surpassing the targets. In other words, there should be clear policies to appoint truly capable persons in these posts.

People must be obliged to work under a framework and realise that their jobs are not for passing time leisurely abroad or spending fruitlessly. They should be on their toes knowing that retaining their jobs and the perks depends on meeting targets. Only such a well-laid structure of accountability, goals, penalties and rewards for the ones to hold key commercial posts abroad in the missions can give a spur to promoting the country's economic interests.

And commercial wings must not function in a stereotyped manner. Some of the embassies presently have labour attaches. The attaches are drawn from among civil servants in the relevant ministries. But serious allegations are levelled against them that they engage in deals with foreign manpower importers for private gain instead of working to expand transparently and legally, the opportunities for increased export of Bangladeshi manpower. Thus, the jobs of the labour attaches can be merged with the economic wings of the missions and the appointment of the labour attaches should be also made form outside the civil services on the merit of the background and potential of the persons to be recruited.

Bangladesh cannot and must not rear white elephants with their occupants feeling that they have little to do apart from spending their time abroad as leisurely as they can with the airs of diplomats. The profile of a Bangladeshi diplomat should be that of a hard working official or the diplomat as the bread earner. Traditional representational and diplomatic functions will have to be always at the core of the diplomatic service. But out of necessity and no choice the crore areas of the diplomatic service must also substantially include promotion of the country's economic goals and interests.

A report appeared recently in a vernacular daily newspaper to the effect that the sweet juices from date trees are being bottled and sent abroad as there is much demand for the delicious syrup among expatriate Bangladeshis. But not only Bangladeshis, even foreigners could take a liking to date juice from Bangladesh once they get the taste of it. Thus, there are prospects of even date juice export becoming big business for Bangladesh. Only bottling the juice in less than international standard condition has led to its not finding a market abroad. If the juice are extracted and bottled as foreign consumers would prefer them, then a regular and expanding overseas market for the product can be developed. In that case, date trees will have to be reared in plantation form in and around homesteads, on strips of land that demarcate between agricultural plots or in other fellow lands. But the yields from these greater number of date trees will fetch precious foreign exchange for the country.

There are also immense prospects for Bangladeshi fruits. Fruits such as pineapple, guava, jackfruit and others, often rot away in different remote parts of the country due to insufficient transportation facilities and the establishment of fruit anning industries in the growing regions, these fruits can bring a bounty in foreign currency for the country. The same applies in the area of export of vegetables. The traditional vegetables and also new ones like gherkin, mushroom, broccoli, French beans, can be abundantly grown for the export market.

Of course, both in the export of fruits and vegetables, one of the greatest stumbling blocks seems to be inadequate air freighting facilities. Foreign airlines do not carry such export items from Bangladesh and the national carrier Bangladesh Biman, has capacities far short of the present demand or the potential demand to freight these agricultural products abroad. Considering that quick freighting of these perishables is the key to successfully exporting them, government should give serious attention to expanding the capacities of Biman to freight cargoes of fruit and vegetables. The cargo flights will not only fetch good income for Biman which is strapped for cash but should also help in the earning of much greater foreign currencies from the stepped up export of these agro products.

Organic agricultural products form another category of items which have great demands in western markets. Organic agricultural produces have started gaining in popularity in Bangladesh and are being sold at higher prices in some markets in the metropolis. Organic rice, vegetables taste better and do not pose risk of contamination from chemicals. These produces have high demand in Western Europe and Bangladesh can benefit from exporting those through coordinated efforts.