Role of Business Economic Development

Chapter 1 Introduction Page 1. 1 Background03 1. 2 pecuniary economical empyrean04 1. 3 Microfinance04 1. 4 Economy of Bangladesh05 1. 5 Objectives of the term paper06 Chapter- 2 Conceptual issues 2. 1 The groom manufacture of Bangladesh 06 2. 2 Agriculture07 2. 3 framework Sector08 2. 4 Manu incidenturing and application09 2. 5 Banking and Finance10 2. 6 statistical Position of Economy in Bangladesh 10 Chapter-3 Database 3. 1 Economic Transformation11 3. 2 Economic exploit12 Chapter 4 finding of The Study Page 4. 1 Garments & Textiles 12 4. 2 reel 16 4. 3 Frozen Foods 18 . 4 Leather 19 4. 5 Electronics 20 4. 6 Agriculture 21 4. 7 Information engineering science 24 4. 8 Pharmaceuticals 25 Chapter-5 Conclusion 5. 1 unofficial of major Findings 27 5. 2 Economic achievement 28 5. 3 polity Recommendation 28 Chapter 1 Introduction in that location is no denying the fact that the economical business celestial sphere plays a epoch-making manipulation in the economic de velopment of a rustic. The importance of an embody-efficient economic celestial sphere lies in the fact that, it check overs municipal help resources mobilization, generation of savings, and investments in harvest-tideive vault of heavens.In fact, it is the dust by which a commonwealths about profitable and efficient projects be systematic ally and continuously directed to the around productive sources of succeeding(a) exploitation. The financial system non hardly transfers funds from savers to investors it must be able to select projects which depart yield the naughtyest returns, accumulate sufficient quantities of smashing to fund the take to the woods of investment projects across economic activities, account for harm risks across assets, monitor performance, and enforce play contracts.The bigger the business firmament in the context of the everywhereall economy, the ampleer the sh argon of lending by sedimentation rather than central banks, and the greater the shargon of credit to individual(a) orbit rather than public celestial sphere, the greater is the rate of economic harvest- m. The state of matters economy is found on horticulture. Rice, jute, tea, sugarcane, tobacco, and wheat are the major produces. Bangladesh is the mankinds commodiousst introducer of jute. Fishing is excessively an of the essence(p) economic activity, and beef, dairy products, and poultry are similarly produced. . 1-Background Bangladesh, since its license in 1971, had to experience several(prenominal)(prenominal) military rules besides democratically elected g everyplacenment associated with major political assassinations. Regardless of all the arouse disputes, the country constantly pushed to achieve economic, social and developmental success done insertion and writ of execution of different policies during the ruling period of different elected authoritiess as puff up as at the time when the country was declared to be under the emergency rule.Bangladesh, named in the list of the developing nations, is blessed with several natural advantages over developed countries. Examples of such are bulky militia of oil, natural gas, coal, timber and the l mavensome(prenominal) natural port of the world that connects SAARC and ASEAN business hub together. The utilization of such natural assets are closed to zero. contrary donors are granting financial aids for reformation and infra social system development of the country. Loans are beingness interpreted on heavy interest, by GOB, from land Bank and Asiatic Development Bank for developmental purposes. 1. -Financial economic sector The financial sector consists of the central bank, Bangladesh Bank, 4 state owned commercial banks, 5 political relation-owned narrow (development) banks, 30 domestic privy commercial banks, 9 remote-owned commercial banks, and 29 NBFIs. In terms of both persis decenniumce assets and deposits, private commercial banks teachi ng the greatest merchandise share. Additionally, 298 micro credit organizations are licensed by the Micro credit Regulatory Authority (MRA). Insurance companies, stock exchanges, and conjunct banks comprise a smaller part of the financial system.As of August 2008 the make domestic assets of the countrys banking system were regard asd at BDT 1. 9 trillion ($28 billion). 1. 3- Microfinance The medium one-year growth rate in the microfinance sector in Bangladesh over the five course of instructions 20032008 was 23 share. It is anticipate to reach 25 per centum annually over the next triplet divisions (20092012) as a result of maturation rent for wallopingr loan sizes. Despite its significant outreach rated at 60 part of all East Pakistani householdsmicrofinance assets re principal(prenominal) less than 2 percent of gross domestic product, having amplificationd only marginally relative to gross domestic product since 2001.The resume loan portfolio of the microfinance sector is estimated to snuff it BDT 135 billion and total borrowers, to exceed 30 one gazillion one million million. Although it is difficult to estimate the funny fall of microfinance borrowers, taking into account their cross-indebtedness to different microfinance providers, they give carely number 18 million. It is estimated that just over 60 percent of them absorb income on a modester floor the poverty line. The Micro credit Regulatory Authority Act of 2006 limits both important potential MFI funding sources equity investments and deposits. unknown silver financing is also effectively prohibited. MFIs in general have access funding for most MFIs. These sources seem adequate to cover current funding needs. 1. 4- Economy of Bangladesh Bangladesh is an agriculture driven economy. Total of 54% of the population of the nation is directly and indirectly involved in farming and lives in rural areas (World Bank, 2011). imputable to spot fertility and ample supply of peein g, having the blessing of thousands of rivers and its branches zigzagging nationwide.Bangladesh can harvest tierce crops every year. Apart from the fact that cyclones and floodlights damage crops every year, the drudgery of crops meets veridical local anesthetic consumption demand but are not great(p) sufficiently enough for export purposes. Where both men and women are assiduous in generating foreign revenue and contributing to the gross domestic product. The three sector which contributes greatly to the economy of the nation is the export of manpower which brings remittances by Bangladeshi workers functional abroad, such as in shopping centre-East Singapore, Malaysia, etc.Due to cultural and religious norms, women previously stayed at bottom the compound of their houses and were liable to take kick of the house-hold activities, whereas men were regarded as the only prepareer and head of the family. CIA World Fact-Book, published in 2010, economy social system of Ba ngladesh is as fol small-scales- gross domestic product(PPP) $259. 30 jillion GDP Growth 6. 00% GDP(Per Capita) $1,700 Public Debt / internal Budget 39. 30% / $11. 43 Billion flash Rate 8. 10% trades $16. 24 Billion Imports $21. 34 Billion External Debts $24. 6 Billion Table-1 Economics Of Bangladesh (Source CIA World Factbook,2010) Released beat-up motif of World Bank, in 2007, estimated Bangladesh of comely a Middle income country. It has been suggested, to reach the goal, Bangladesh should emphasize to deepen its industrial base, desegregate more than(prenominal) into orbicular grocerys and prioritize urban economic development. The country has large reserves of natural gas, petroleum deposits and low-grade coal. All these minerals are idealistic and demanding in the global trade, specially for industrial and Energy-generation purposes.Cheap labor-force advantages make the local make Products passing competitive in global commercialises through FDI, introduced and encouraged first of all by the government formed in 1991. The major source of foreign earnings is being Transacted from adorns and cloths export and remittances sent home by Bangladeshi workers living abroad. 1. 5-Objectives of the term paper The broad objective of the believe is to show the reforms that took home plate in Bangladesh and to explore the financial implications of the reforms.Followings are the specific objectives of the study To review the economic sector reform programs To compare the financial performance of the economic system in Bangladesh sooner and after implementation of the economic sector reforms To identify different problem areas of the economic sector of Bangladesh, which relieve needed careful restructuring for better performance and To suggest some policy measures for strengthening the restructuring mechanism. Chapter- 2 Conceptual issues 2. 1 The garment labor of BangladeshThe garment perseverance has played a pioneering role in the deve lopment of industrial sector of Bangladesh. Though it took a rather late start i. e. , in 1976 but it soon get toed its reputation in the world market within a short span of time. Resultantly garment is immediately one of the main export items of the country. Besides, enriching the countrys economy it has played a very important role in alleviating unemployment. At record thither are more than two thousand one hundred garment factories in the country employing more than 12 lack labors. 85 percent of the labor force is women. . 2 Agriculture most Bangladeshis earn their living from agriculture. Although sieve and jute are the capital crops, maize and vegetables are assuming greater importance. Tea is boastful in the northeast. Because of Bangladeshs stiff soil and normally ample water supply, rice can be swelled and harvested three times a year in many areas. Population pressure continues to place a intemperate burden on productive efficacy, creating a nourishment deficit, curiously of wheat. Foreign assistance and commercial imports fill the gap, but seasonal worker hunger corpse a problem.Underemployment remains a serious problem, and a growing furbish up for Bangladeshs verdant sector will be its expertness to absorb excess manpower. Finding alternative sources of employment will continue to be a daunting problem Most Bangladeshis earn their living from agriculture. Although rice and jute are the primary crops, maize and vegetables are assuming greater importance. Tea is liberal in the northeast. Because of Bangladeshs fertile soil and normally ample water supply, rice can be heavy(a) and harvested three times a year in many areas.Due to a number of factors, These include better flood control and irrigation, a generally more efficient use of fertilizers, and the fundamental law of better distribution and rural credit webs. Population pressure continues to place a severe burden on productive capacity, creating a food deficit, especially of w heat. Foreign assistance and commercial imports fill the gap, but seasonal hunger remains a problem. Underemployment remains a serious problem, and a growing tinct for Bangladeshs agricultural sector will be its aptitude to absorb additional manpower. pic Map showing the growing areas of major agricultural products.Main article Agriculture of Bangladesh 2. 3 Textile sector Bangladeshs textile industry, which includes knitwear and ready-to-eat garments along with specialized textile products, is the nations number onexport earner, accounting for 80% of Bangladeshs exports of $15. 56 billion in 2009. Bangladesh is 2nd in world textile exports, and china which exported $120. 1 billion worth of textiles in 2009. The industry employs about 3. 5 million workers. Current exports have doubled since 2004. Wages in Bangladeshs textile industry were the lowest in the world as of 2010. picThe country was considered the most formidable rival to China where wages were rapidly rising and curr ency was appreciating. As of 2011 wages remained low for the 3 million people utilize in the industry, but labor unrest was increasing despite supple government action to enforce labor peace. Owners of textile firms and their political affiliate were a powerful political influence in Bangladesh. 2. 4 Manufacturing and industry Many new jobs mostly for women have been constructd by the countrys dynamic private ready- do garment industry. Eastern Bengal was known for its fine muslin and silk fabric before the British period.The dyes, narrative, and cloth were the envy of much of the pre- juvenile world. Bengali muslin, silk, and brocade were have on by the aristocracy of Asia and Europe. The introduction of machine-made textiles from Eng tear in the late ordinal century spelled doom for the costly and time-consuming hand loom process. cotton plant growing died out in East Bengal, and the textile industry became leechlike on imported train of thought. Those who had earned t heir living in the textile industry were forced to rely more completely on farming. Only the smallest vestiges of a once-thriving cottage industry survived. 2. 5 Banking & Finance The banking system dominates the financial sector accounting for about 97% of the market in terms of assets. * government has undertaken major reform initiatives to improve the regulatory and legal environments for banks. * Several specializer development financial institutions have been providing long-term debt, equity financing and leasing. pic 2. 6- Statistical Position of Economy in Bangladesh The Economy in 2009-2010 Currency Taka (Tk. GDP at current price Tk. 6,149,432 million Annual per Capita GDP Tk. 42,638 GDP growth rate at constant price 5. 88 percent Industrial growth rate at constant price 8. 05 percent Inflation rate 5. 4 percent enthronization rate 25. 6 percent of GDP National savings rate 30 percent of GDP exportations (US$) US$ 12,816. 11 million Foreign Reserve U S$ 6,562. 0 million (up to May 2008-2009 financial year) Import and Export lead Industries Jute, tea, textiles, garments, paper, newsprint, fertilizer, leather and leather gods, sugar, cement, fish processing, pharmaceutics, chemical industries, etc. Traditional Export Items Raw jute, jute manufactures (hessian sacking, carpet backing, carpets), jute products, tea, leather, leather products etc. Non-traditional Export Items Garments, wintery peewits, separate fish products, newsprint, paper, naphtha, furnace oil, urea, ceramic products, light engineering items etc. Principal Imports Wheat, oil, seeds, glaring petroleum, raw cotton, edible oil, petroleum products, fertilizer, cement, staple character references, Raw Cotton, iron & steel, with child(p) goods, pharmaceuticals raw materials etc. Chapter-3 Database 3. 1- Economic Transformation The Bangladeshi economy has shown great resilience in the face of the recent global economic crisis and corner and has continued to grow at a healthy rate. Since 1996, the economy has grown 5% 6% per year.Political instability, misfortunate infra social structure, corruption, insufficient power supplies, and slow implementation of economic reforms have not slowed down growth. Economists agree that the country has the potential to achieve a spicyer growth rate if these roadblocks are adequately addressed. More than half of GDP is generated through the service sector, but nearly two-thirds of Bangladeshis are employed in the agriculture sector. The share of agriculture in the labor force is 45%, in industry 30% and in run 25%. The share of the service sector in GDP is 52. 6% while industrys share is 28. % and agricultures 18. 7%. In 2009, garment exports, totaling $12. 3 billion and remittances from overseas Bangladeshis totaling $9. 7 billion accounted for almost 25% of GDP. The country was not completely resistive from the global economic downturn the principal adverse effect of the recession was a reduction in export revenue in 2009. It came on the back of a very high growth of 23% in 2008. However, overall exports declined by only 2. 0%. Despite recent high growth rates, socioeconomic development is still not favorable for the legal age of the population. 3. -Economic performance Bangladeshis have access to a water point. However, due to the breakthrough of arsenic in the ground water, only 76% of these can now be considered safe. In 2006, the enunciate Monitoring Program by WHO and UNICEF report that 51% of urban areas had improved sanitation facilities and only 7% of urban areas had sewerage connection. In addition, only 32% of the rural population was apply improved sanitation in 2006. Female economic activity accounts for 52. 7% of the economy, but females earn less than half the income of their male counterparts.The number of poor women is high than their male counterparts and the extremely poor is largely women, while at that place is a high proportion of a female-headed household than male-headed ones among the ultra-poor. However, the country has made significant progress in achieving gender parity in primary and secondary education. Rural areas still lack basic health care facilities and educational institutions. The number of health care facilities in rural areas has not grown as quickly as the number of education institutions, give thanks to the NGOs working in the education sector.Child underweight rates have hovered at about 46% since 2000. The total number of undernourished people in Bangladesh is approximately 41 million. Overall, according to the 2010 information, the HDI for Bangladesh was 0. 469 with a rank of 129 out of 168 countries. The 2005 data shows that the Gini index is 31. 0. Economic indicators 2007 2008 2009 2010 GDP $ mm 68415. 4 79554. 4 89359. 8 100357. 0 GDP growth % 6. 6. 2 5. 7 6. 1 Inflation (CPI) % 9. 1 8. 9 5. 4 8. 1 Unemployment % - Foreign direct % of GDP 1. 0 1. 3 0. 8 1. 0 investment Export growth % 13. 7. 0 0. 0 0. 9 Import growth % 16. 0 -2. 1 -2. 6 0. 7 Current account $ mm 856. 9 926. 2 3556. 1 2502. 4 bance Chapter 4 Finding of The Study 4. 1 preen AND TEXTILES The garments and textiles industry sector is the biggest export earner sector of Bangladesh with hold dear of over US$12. 347 billion of exports in 2008-2009. Our factories design and produce for the worlds leading brands and retailers, like Reebok, GAP, Wal-Mart, Hudson Bay, Puma, etc. This rapidly growing sector of the Bangladeshi economy offers a unique competitive edge that sustainments profitable elaborateness into new strategic markets. Year No. of garment Employment (in Export of RMG Total export of % of RMG to total factories million workers) (in million US$)Bangladesh (in millionexport US$) 2005-06 4,220 2. 2 7,900. 80 10,526. 16 75. 08 2006-07 4,490 2. 4 9,211. 23 12,177. 86 75. 64 2007-08 4,743 2. 8 10,699. 80 14,110. 80 75. 83 2008-09 4,825 3. 1 12,347. 7 15,565. 19 79. 33 SourceBangladesh Garment Manufacturers and Exporters Association (BGMEA) Industry Background and Status The phenomenal growth in RMG was experienced in the concluding decade. In 1984-85, no of Garment factories was 800 RMG roastly with knitwear accounted for more than 70% of total investments in the manufacturing sector during the first half of the 1990s. At present with about 4,000 factories and a workforce of two million, 80% of which are women, employing over 50% of the industrial workforce and having 75% of the total exports earning of the country.Exhibit 6. 1 shows the growth of RMG exports from Bangladesh since 1981-82. Main apparel items exported from Bangladesh (in million US$) Year Shirt trouser Jacket T-shirt Sweater 2005-06 1,056. 69 2,165. 25 389. 52 1,781. 51 1,044. 01 2006-07 943. 44 2,201. 32 1,005. 06 2,208. 90 1,248. 09 2007-08 915. 6 2,512. 74 1,181. 52 2,765. 56 1,474. 09 2008-09 1000. 16 3,007. 29 1,299. 74 3,065. 86 1,858. 2 SourceBangladesh Garment Manufacturers and Exporters Association (BGMEA) Industry Outlook Multi-Fiber Agreement (MFA) and Generalized System of Preferences (GSP) of the EU are the main factors behind acquainting Bangladesh RMG products to global market ensuring assured market access. Bangladesh is now a significant RMG supplier to North America and Europe. Due to phasing out of MFA, many are doubtful about Bangladeshs ability to maintain the fast growth of the recent years in this sector but Bangladesh has taken a better position in the U. S. A market through competition.However, on a more positive note, Bangladesh is expect to maintain its tariff-free access to EU under the European GSP, since the GSP is not cover by the Uruguay Round Agreement. Recently, Canada has also provided tariff-free access of all the items from Bangladesh. Marketing network has been spread over the economies of the continents. End users could well recognize and diffe rentiate the products confidently. Bangladesh RMG industry largely depends on the imported yarns and fabrics. Bangladesh produces only 10% of export- timberland cloth used by the garments industry.The need for establishment of retroflexed-linkage industry has become an immediate concern to the government and the exporters. There are enormous opportunities in setting up composite textiles industry combining textile, yarn and garments. Investment Opportunities and government support RMG and textile sectors have enormous investment opportunities. The government of Bangladesh has created a highly favorable policy framework for investment in these sectors offering investors the pursual choices 1) Establishment of new textile / RMG mill in the private sector. 2) Joint ventures with the existing textile / RMG mill. ) Acquisition of public sector textile move that are being privatized. 4) Indirect investment through financial services and / or leasing. To meet up the local demands, back ward linkage is a significant trading opportunity and is supported by a government backed incentive 15% cash subsidy of the fabric cost to exporters sourcing fabrics locally. * SPINNING Value Addition to the Fibrous Substances Spinning is the first flavour in textile value chain that adds value to the fibrous substances by converting them into yarn or thread through the processes of drawing, wind uping and winding (Exhibit 1).Characteristics of the yarn vary based on the materials used, case length and alignment, quantity of fiber used and degree of twist. The earliest spinning probably involved simply twisting the fibers in the hand. Later, the use of a stick to help twist the fiber was introduced. Drop spinning involves the use of a stick with a whorl or weight to stabilize the spinning of the stick (called a spindle). The spindle is spun, and hangs supported by the yarn as more fiber is introduced. This introduced fiber picks up the twist and becomes yarn. However, the develo pment of spinning wheel allowed a continuous and faster yarn production.Spinning wheels are either foot or hand powered. Modern powered spinning, master copyly done by water or steam power but now done by electricity, is vastly faster than hand spinning. Materials that can be used to create yarn fall into three broad classes plant, animal, and synthetic. 1) Plant materials cotton, flax (to produce linen), hemp, raffia, yucca, coco husk, 2) Animal materials wool, goat (angora or Cashmere goat), rabbit (angora), llama, alpaca, dog, camel, silk, 3) Synthetic materials polyester, nylon, rayon, acetate, Mylar 4) Apart from the above, mineral materials like asbestos are also used, but not very often. Spinning Industry in Bangladesh Development of spinning industry in Bangladesh is intimately associated with the development of Textile and wearing (T&C) sector as a whole. power-driven modern textiles in Bengal were traced back to early twentieth century. Before 1947, modern textiles w ere only the composite textile mills having spinning and weaving facilities. Later, activities like specialized textile weaving, knitting and hosiery and dyeing-printing-finishing were added.During 1947, there were about 11 composite textile mills in Bangladesh (then East Pakistan) with 1. 1 million spindles and 2. 7 thousand looms. Spindles grew to 3. 2 million in 1956 but declined to 0. 8 million in 1972 as worn-out obsolete spindles went out of operation. In 1972, large-scale manufacturing units including textile mills were nationalized. After 1982, state-owned spinning mills were bit by bit denationalized. By 1999, spindles installed were 2. 8 million (2. 4 million in the private sector and 0. 4 million in the public sector) with an annual production capacity of 200 million kg.BOI sector Survey found that in 2004, about 3. 44 million spindles are producing 382 million kg of yarn for the textile industry (Exhibit 2). pic Challenges of and Supports to the Spinners The success of a robust textile sector largely depends upon an improved and reliable spinning sub-sector. If spinning sub-sector produces substandard / inferior yarn, its adverse effect persists right across the entire value chain. availableness of raw materials, transportation, port facilities and tariff rationalization are the key challenges to the spinners.The presidency has been supporting the spinners providing lower tariff for machinery spares and raw materials, cash incentives, reduced value rate, and inexpensive funding etc. Investment Outlook Textile & Clothing is the largest manufacturing sector of Bangladesh providing over 4 million jobs, accounting for 5% of GDP, 40% of manufacturing value addition and 75% of total foreign exchange earnings. The growing demands for yarn in the local market, relatively low cost of doing business, profitable incentive package, favorable investment policy regime etc are the main reasons for investment in this sustainable sector.Spinning could be ch osen. 4. 3 FROZEN FOODS The frozen foods export is the second largest export sector of the country. After some initial difficulties in terms of fictitious character achievement, exporters have earned credibility and trustiness in the global market. Assurance of reliable and continued product quality is a major challenge in this sector. Technology orientation, marketing perceptions, and quality improvement aspects invite foreign investment in this sector. The current challenges of multinational trading are largely dictated by price, quality, time and service.Industry placement Exporters have earned credibility and trustworthiness in the global market and are committed to maintaining a competitive advantage in product quality. Continuing investment in technology, marketing and quality remain at the forefront of the industries strategy to meet the challenges of planetary trade in price, quality, time and service. Industry Outlook Frozen food sub-sector has credible opportunities i n Middle East, EU and North American countries and Far Eastern countries. In 2004-05, total fish production was 2. 216 million careful tons of which 8. 2 metric . tons were shrimp. At present, there are 868 fish hatcheries and farm of which 218,000 hectors of shrimp farm. This export-oriented industry includes the following sub-sectors, which need proper attention for augmentation of production, get through foreign standard quality and export earnings. 1) Hatcheries, Sustainable aqua-culture technology. 2) Feed-meals plants, Processing unit for value-added products. 3) Investment in frozen food sector with new technology and equipment has a vast potential for growth. * LEATHER Industry SituationBangladesh leather industry is prevail substantially by the domestic investment which is mostly export-oriented. The leather includes some ready-made garments, although that aspect is continued mainly to a small export-trade in Italian-make garments for the US market. Footwear is more imp ortant in terms of value addition. This is the fast growing sector for leather products. Presently Bangladesh produces between 2 and 3 percent of the worlds leather market. Most of the blood base for this production is domestic which is estimated as comprising 1. 8 percent of the worlds cattle stock and 3. percent of the goat stock. The hides andskins (average annual fruit is 150 million sq. ft. ) have a good international reputation. Foreign direct investment in this sector along with the production of flagellation chemicals appears to be highly rewarding. Having the basic raw materials for leather goods as well as for the production of leather shoe, a large pool of low cost but trainable labor force together with tariff surrender facility to major importing countries under GSP coverage, Bangladesh can be a potential off shore location for leather and leather products manufacturing with low cost but high quality.In 2004-05 total export of leather goods was 220. 93 million US$ o n the another(prenominal) hand it is 257. 27 million US$ during 2005-06 FY. Industry Outlook Provision of newly announced infrastructural facilities through establishment of an integrated Leather Park and simultaneously, growth in the global demand, opportunities for investing in and setting up export-oriented leather industry in Bangladesh is definitely attractive. Foreign investors are welcome to capitalize on this opportunity. 4. 5 ELECTRONICS Industry Background The electronics industry in Bangladesh mostly produces consumer items.Home appliances like television, radio, VCD and CD players, refrigerator, air conditioners, oven, electronic fan, blenders etc. are being assembled to a large extent. To ensure the performance reliability, the key challenges in this sector are practiced assistance and proper technology orientation of the industry. Developing the significant capacity and skill in assembly and manufacture of a wide turn tail of electronic components and parts is curac ies. As yet, Bangladesh does not have any telecom equipment industry in the private sector.However, an urgent need for diversification and modernisation is felt among the existing entrepreneurs, government and professionals. judicature is keen to provide and ensure enabling assistance to the development of this sector. Industry Outlook and Opportunities Skilled, easily trainable and low-cost human resources are the main cost advantage of setting up electronic industry in Bangladesh. Growing domestic demand and international market access are some key attractive issues to the investors. In the economies like Malaysia, Singapore, Korea and Thailand, electronics contribute a major portion in the GDP.They are encouraging electronic industry to shift from low-end assembly operations with high import content of scuttlebutts to upstream higher- value-added activities. In this context, relocation, outward investment and joint venture with Bangladeshi companies could be gainful strategies . To capitalize on the comparative degree advantages, substantial foreign investment from those countries is highly encouraged. * AGRICULTURE Sector talllights Bangladesh has a tropical climate, a lot of fresh water, indeed a land interspersed with numerous rivers, fertile soil and possibility to cultivate crops round the year.So it is unique to supply raw materials for the agro-based industry. The abundance of natural resources available in Bangladesh supports a range of highly profitable investment opportunities in agribusiness. Over 90 varieties of vegetable are grown in Bangladesh, yet in this fertile land there is underutilization of the countrys agricultural capacity. This presents many opportunities for investors desire to export agricultural products, or to meet the rapidly growing local demand. Thriving in this sector arecanned juices,fruits, vegetables,dairy and poultry.The country offers 1) Huge supply of raw materials exists for the agribusiness industry. 2) A tropica l climate for all year growing, a lot of fresh water, indeed a land interspersed with numerous rivers, available land with fertile soil. 3) Government and NGOs have been conducting regular training programs to develop skillful manpower for agro-based industry. 4) Wide range of biodiversity exists for different crops. 5) Agricultural commodities have a comparatively higher value added than non-agricultural commodities.Investment opportunities There is a wide variety of investment opportunities including * Cold entrepot facilities serving the supply chain, especially fresh produce for export. * Fresh produce production for local and export markets. * Production of fertilizers and cultivation of seeds. * Eco-friendly jute production, supported by jute technology development institutes. * Shrimp farming, Halalfoods, Milk and dairy products. * High value-added foods for export, including herbs, spices, nuts and pulses.Industry Incentives The government encourages development of the agr icultural sector through measures to increase crop sector productivity and production of non-crop agriculture. To achieve this, the government provides change magnitude credit, and facilitates greater access to inputs and modern technology. Sector Background Being an agrarian economy, agriculture has dominated in the economy for years. It has fulfilled the preconditions of access to input and raw materials in setting up successful agro-based industries.Alluvial soil, a year-round frost-free environment, adequate water supply and abundance of cheap labor are available in Bangladesh. Increased cultivation of vegetables, spices and tropical fruits now grown in Bangladesh could supply raw materials to local agro-processing industries for both domestic and export markets. In 2005-06, Export of agricultural products accounted for about 1% of total export amounting US$ 76. 24 million. Industry Outlook To avail the competitive and comparative advantages, Bangladesh invites progressive agri cultural-practices, improved marketing technique and modern processing facilities.The government emphasizes development of the agricultural sector through appropriate measures to increase crop sector productivity and production of non-crop agriculture by providing increased credit, and facilitating greater access to inputs and modern technology. Investment interests in setting up agro-based industries in Bangladesh are highly encouraged. To promote agro-based industries and attract investment in this sector, get along of Investment organized Agri-Invest 2003 Bangladesh in December 2003.This first ever rendering created huge interest among the foreign and local investors. 4. 7 INFORMATION engineering science Sector Highlights 1) To investigate the IT industry robustly, deregulation of the telephone has been decided and penalize by mid-2003. 2) The extensive growth of mobile telephony resulted in significant opportunities. 3) The industry is at its introductory stage and has oppor tunity of capitalizing the potential. 4) Bangladesh has a well-educated, skilled, utilize and growing IT workforce. 5) There is a fast growing domestic market and export demand. ) Strong research assistance from the universities and research institutions are available. Industry Background Compared to the beside India, Pakistan and other South and South East Asiatic nations, Bangladesh is lagging behind in IT Sector. But it is true that the sector has vast potentiality to develop. Availability of substantial number of qualified and experienced unexampled people in various branches of engineering, science and technologies have opened up the scope of profitable investment in these sectors.Existing investment in IT sector is mainly small-scale and domestic in nature. Collaboration in the IT sector is mainly based on licensing agreements and representation. A growing number of computing machine training schools and institutes are being opened. Management of most of the IT firms is p rofessionally built with the Bangladeshis who have studied and worked in both North America and Europe, and returned home. The annual market size for IT including computer hardware, peripherals and software was estimated to be worth approximately US$ 20 million.The market is fast growing at an annual rate of about 25%. The country has over 400,000 PCs Submarine stemma Bangladesh has joined the consortium of SEA-ME-WE-4 submarine cable, which starts its commercial activities from 21st may, 2006. This will especially help prosperous data entry and software sectors. The get target of this cable is situated at Jhelong in Coxs bazaar. There are 14 countries of this consortium the countries are Singapore, Thailand, UAE, Bangladesh, India, Pakistan, Sri Lanka, KSA, Egypt, Tunisia, Italy, Algeria and France.It has connected 16 telecommunication organizations of 14 countries. With the direct help from submarine cable Bangladesh can earn more foreign currency by increasing international interpretive program circuit (e. g. submarine cable will give support to establish 100,000 voice circuits. Voice and data communication will be faster. family has created capacity pool, which we can sell also can manage IRV. wide-cut band service, data transmission, call centre, software export will be cheaper. Unemployed youths can easily engage themselves in those services by taking short term training.Bangladesh has right to land 15 landing station without charge. It will help smoother operation of E-commerce, E-governance, E-education, Telemedicine etc. So, there are huge chances of development of ICT sector and finally government will be financially benefited. 4. 8 PHERMACEUTICALS 1) Pharmaceutical products have huge demand both in local and overseas market. 2) There are huge demand-supply gap in pharmaceutical products. 3) Bangladesh offers a good number of qualified, skilled pharmacists, bio-chemists, micro-biologists, and chemists for pharmaceutical industries. ) Governme nt offers support for importing raw materials for production. 5) Present Government has taken initiatives to modernize, expand and attract foreign investment in pharmaceutical industries, and for this adopted national medicine policy (revised) 2005, which will help to oblige with the changing world under WTO/TRIPS. pic Outlook Considering the overall demand, pharmaceuticals is one of the emerge sectors in Bangladesh. Government offers different incentives for importing raw materials pharmaceutical industries. This concomitant sector has huge potential of growth in the future.For sustainable return, pharmaceutical sector could be a rational choice. Chapter-5 Conclusion 5. 1 Summary of Major Findings The economic sector has tremendous impact on socio-economic structure of the country. It also brings economic prosperity for the any country. We believe that there must be a saturation point for any industry. But for our economic sector, still we are away from it. The economy is credib ly to grow at a similar pace as experienced over the last ten years of around 6. 2 percent in monetary 2009-10, despite the continued global economic slowdown, Bangladesh Bank said . Most indicators in the first quarter of monetary 2009-10 point to a more moderate level of economic expansion, the BB said in its latest every quarter review. The BB projection means that the growth is likely to fall short of the governments original target of 7. 2 percent GDP growth for the current fiscal year. Bangladesh Bank will produce forecasts for economic growth on a regular basis, in line with the common practice in other central banks across the world The significant remittance growth is likely to have positive consequences for both domestic consumption and investment .The third development centres around the healthy growth in private sector credit, which during the first quarter this year grew by 19. 9 percent against a target of 18. 4 percent. This suggests that the credit envelope will not be a constraint towards achieving the overall economic growth targets. Gross domestic agricultural production is expected to be 2. 2 percent higher than that of the previous year, of 65. 6 million tones, on the back of government incentives and higher agricultural credit disbursement. The industrial sector is projected to grow between 7. percent and 7. 75 percent in fiscal 2009-10, down from the 9. 47 percent seen last fiscal year, but in line with the average industry sector growth rate over the last ten years Economic growth was also steady in the outmatch year despite some clouds over export earning. The GDP (gross domestic product) growth was 6. 32 percent in FY 2009-10, which was marginally lower than the 6. 71 percent of the previous FY 2008-09, but higher than many other neighboring countries. The GDP for the current FY 2010-11 has been targeted at 7. 2 percent. 5. 2 Economic Performance A steady average annual GDP growth of 5% over the last decade. * Inflation has been kept in single-digit. * Exports have been gradually shifted from traditional goods to more value added items. * Emphasis has been put on manufacturing of backward linkage of Readymade Garments, Pharmaceuticals Industries and IT sector. * The private sector is playing an increasingly active role in the economic life of the country, while the public sector concentrates more on the physical, social infrastructure and policy making. 5. 3 Policy RecommendationThe restructuring measures taken so far are definitely not sufficient considering the temperance of the situation. Based on the above discussion the following steps may need to be taken as reform or restructuring measures to upper berth up the progress The problem of excess liquid asset of the banks should be handled with due attention. In order to utilize the excess liquidity A number of measures were taken to strengthen the legal framework. However, in order to attain the benefit of improved legal framework, enforcement of leg islations should be ensured.Legal procedures should be uncomplicated and brass of case should be speedier. Government interference, political involvement, pressure from the trade unions has to be reduced for the smooth function. For developing the asset utilization ratio, portfolio of asset structure should be rearranged by removing the non-earning assets or transforming the non-earning assets into earning one. Technological up-gradation of the banking system is needed furnished with state-of-the-art infrastructure and logistics. Lastly, the problem of Bangladesh financial system is widespread and not related to banking system only. Therefore the scope of the reform measures should also be applied to the non-bank financial institutions. Reference list * Released beat-up report of World Bank, in 2007, estimated Bangladesh. * Bangladesh Garment Manufacturers and Exporters Association (BGMEA) * Bangladesh Export statistics 2009-10, Dhaka, Bangladesh. * A report of Garments publish ed in the magazine, April 2008. * Economic Review 2010 * Review of Bangladesh Development 2009 * A report of economics published in the magazine, April 2011