Mr. Rokonuzzaman |
March 8, 2021, 8:12 p.m.
Primarily based on three essential eligibility standards referring to per capita revenue, human belongings, and financial and environmental vulnerability, the United Nations Growth Coverage Committee advisable that Bangladesh be withdrawn from least developed nation (LDC) standing. ). In fact, it’s a success. Within the evaluation, constructive remarks had been shared for Bangladesh’s per capita revenue of almost $ 1,827 in 2020 in opposition to the brink of $ 1,230, and the nation’s rating on the Human Property Index (HAI) criterion which stands at 75.3 factors, properly above the requirement of 66. Bangladesh additionally obtained good suggestions on the Financial Vulnerability Index (EVI); the nation’s rating is 27.3 factors, which have to be lower than 32. However Bangladesh’s personal patent workplace reveals a disappointing image on the subject of rising the capability to generate concepts to create new wealth . For instance, in 1972, 09 patents had been granted to native entities. Sadly, that quantity fell to 05 in 2020, as a substitute of accelerating. Ought to Bangladesh be involved with patent knowledge to evaluate the energy of financial worth creation?
As consultants recommend, Bangladesh would lose all kinds of preferences and privileges after exiting Least Developed Nation (LDC) standing. Among the causes embody the lack of duty-free and quota-free (DFQF) entry to export markets. One reported estimate suggests a deficit of round 8.0-10 p.c of its gross export earnings because of the lack of the FDSC provision amounting to almost US $ 2. 5 billion per 12 months. It seems to be like Bangladesh will face fewer preferences than earlier than. How Bangladesh will overcome them to proceed to stimulate financial progress is a severe problem. Main economists advocate that the federal government develop a strong transition technique for LDCs for the subsequent 5 years and past. There are suggestions to scale back safety and improve competitiveness. What are the methods of Bangladesh to face the present challenges?
Everyone knows that Bangladesh’s success in accelerating per capita revenue is because of the profitable commercialization of labor. However there was a darkish cloud over the longer term prospect of manufacturing rising financial worth from the workforce. Let’s check out this in additional element. One of many essential sources of labor revenue is remittances from Bangladeshi migrant employees. A lot of it comes from oil-exporting Center Jap international locations. The event of renewable power applied sciences, electrical autos and hydrogen for power storage present bleak prospects for the oil financial system. The nationwide garment trade is Bangladesh’s subsequent supply of labor revenue. Because of the development of expertise, there was a continuing erosion of the labor necessities to supply every unit of output. Subsequently, Bangladesh wants a 3rd labor power as within the Nineteen Eighties to generate the identical quantity of export earnings. Till now, quantity progress has beforehand offset erosion in demand for labor, leading to a web constructive impact on employment. However this example has modified. Not like up to now, together with the expansion within the quantity of exports, there have been fixed web job losses within the sector.
Bangladesh’s subsequent labor-based worth addition has been in import substitution industries. The excessive wage hole and rising home consumption have been a boon for native producers for the home market. To use this chance, Bangladesh sought a tax differential, negligible import duties on the import of equipment and tools, and lenient therapy for the respect of mental property. However developments are turning in opposition to the benefit of Bangladesh. For instance, the pay hole has narrowed. Alternatively, the labor content material in industrial merchandise has quickly eroded. Even within the manufacturing of furnishings and meeting of cell phones, the labor content material has reached lower than 10 p.c of the full price. As well as, the engagement of labor reduces the productiveness of capital machines because of the ready time. Subsequently, residence furnishings producers have changed human employees with robots for unloading completed merchandise from injection molding machines. Actually, a number of elements erode the benefit of native labor to supply import substitution at decrease price. As well as, to offset the rising erosion of the aggressive benefit of the workforce because of the exit of LDCs, Bangladesh’s freedom to supply tax differentials, money subsidies and different types of The incentives will likely be far more restricted than as we speak.
The following drawback considerations the availability of labor. Thus far, Bangladesh has taken benefit of employees who haven’t graduated from schools and universities. These employees are determined for labor-intensive jobs, from dealing with materials to working as drivers. Not like up to now, school and college graduates are the longer term workforce in Bangladesh. They’re neither keen nor determined to safe labor-intensive jobs in sweatshops. Not like bodily labor, we must always discover methods to harness the information and creativity of graduates to supply financial worth.
As talked about, thus far Bangladesh’s financial development is principally because of the commercialization of labor. Revenue from labor has fueled progress in consumption, protection-based companies and authorities borrowing for infrastructure. Subsequently, now we have noticed progress and visual progress within the growth indicators. However has Bangladesh proportionately improved its capability to create worth? The creation of financial worth relies upon primarily on pure assets, labor and concepts. Though Bangladesh has exhausted the primary two, there doesn’t appear to be any progress in concepts. In response to knowledge from the Bangladesh Patent Workplace, over the previous 48 years, the scenario of acquiring patents by Bangladeshi residents or corporations has stagnated. Each for submitting and granting patents, the image is grim. Not solely within the native workplace, the patent receipt report of Bangladeshi entities in overseas places of work, together with the World Mental Property Workplace (WIPO) and the USA Patent and Trademark Workplace (USPTO ), is virtually zero.
Ranging from nationwide analysis institutes, universities, corporations and startups, nobody appears to need to worth patents, not to mention combine them into merchandise and processes to enhance high quality and cut back prices. Not like Nike’s greater than 4000 patents, the large Bangladesh shoe trade seems to be absent from the mission of pursuing patentable concepts. An identical scenario seems to be the fact within the flourishing pharmaceutical, IT or cell phone manufacturing industries in Bangladesh.
As an alternative of specializing in creating aggressive benefit out of patentable concepts, there was a race to just accept incentives to benefit from safety. Nationally, now we have an equally bleak image. The seriousness of creating a strong industrial base from R&D and innovation has but to realize consideration – to not point out the truth that it’s commensurate with the event of infrastructure and the manufacturing of a rising quantity. graduates with generic information. However international locations that aspire to proceed rising have proven a reasonably reverse image. For instance, the submitting of invention patents in China elevated from round 200,000 in 2006 to over 1.3 million in 2015. Throughout the identical interval, the submitting of patents by native patent workplace entities of Bangladesh elevated barely from 22 in 2006 to 40 in 2015. There seems to be a severe weak point in Bangladesh’s progress in creating worth from patentable concepts. However this capability is important for Bangladesh to deal with rising competitiveness within the years to return, the place preferential therapy will proceed to erode.
Mr. Rokonuzzaman, Ph.D is an instructional and researcher on expertise, society and coverage.