Economists advocate high-tech shift for Bangladesh's economy

23 Apr '24

2 min read

Economists advocate high-tech shift for Bangladesh's economy

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Bangladesh remains stuck in low-wage economic trap despite visible economic development, which has been largely contributed by labourers, including farmers, RMG workers, and migrants, economists say.
They proposed transitioning to high-technology-based production and exports from labour-intensive industries.
Observations made at a recent event in Dhaka.

Economists argue that Bangladesh remained ensnared in a low-wage economic cycle despite visible development, largely driven by labourers in various sectors like agriculture, RMG, and migration even as they emphasised the need for institutional reform and a shift towards high-technology-based production to ensure sustainable development and economic prosperity.

The observations were made at a recent book launch organised by the Centre for Policy Dialogue (CPD) even as they lamented the dysfunctional state of institutions, particularly in fiscal management.

Professor Rehman Sobhan, co-editor of the book, highlighted the absence of functional institutions critical for development and expressed concerns over the advanced deterioration in the banking system, identifying bank defaults as a serious structural crisis while Dr. Hossain Zillur Rahman emphasised Bangladesh’s entrapment in the economic trap of cheap labour, urging a focus on quality education to cultivate qualified human capital and combat corruption.

Eminent economists, including Rizwanul Islam and Professor Dr. MM Akash, underscored the crucial role of labourers in economic growth while noting declining real wages and increasing inequality.

Dr. Zahid Hussain raised questions about shared prosperity amidst governance crises, particularly in the banking sector, highlighting the emergence of influential classes and their impact on governance and politics.

Looking ahead, Professor Selim Raihan warned of challenges stemming from institutional weaknesses and stressed the need for transitioning to high-technology-based production to avoid falling into a debt trap. Dr. Mustafizur Rahman echoed this sentiment, emphasising the urgency of addressing generational challenges and transitioning from labour-intensive to technology-driven industries.

He highlighted the stagnation in high-tech exports, contrasting it with Vietnam’s substantial increase.

Fibre2Fashion News Desk (DR)

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