Bangladesh : Reduce Dependency On Garment Exports: Economists

The dependency on readymade garments (RMG) exports directed towards US market must be reduced according to the Economist of Bangladesh.

"Bangladesh is mainly dependent on external earnings, making it tructurally vulnerable. Once we were dependent on aid and now on trade," Prof Rehman Sobhan told a seminar on Impact of Anglo-American War on Bangladesh Economy yesterday in the city.

Bangladesh Economic Association (BEA) arranged the seminar with its Vice President MA Sattar Mondal in the chair. Prof Anu Mohammad and Prof Dr. Shafiquzzaman presented two separate papers. Secretary General of BEA Prof Abul Barakat also spoke, among others.

Bangladesh will face dangerous consequences after 2005 if it does not diversify its product base and market, Prof Sobhan warned.

Allaying concern of the audience that Bangladesh will not derive the benefit of its gas resources due to US's geo-strategic plan, the economist, also Executive Chairman of Centre for Policy Dialogue said value addition was the best way to get its return.

Explaining the reason why America went for a military conflict, Prof Barakat said US is weighed down with a huge external debt amounting to US$ 2 trillion accounting for 20 per cent of its GDP and its current account deficit stands at US$ 500 billion. Against this background, US launched attack on Iraq with a hidden agenda to occupy the Middle Eastern country possessing world's second largest oil reserves. Giving a rundown of the direct impacts of Iraq war on Bangladesh economy, Dr Shafiq said export sector and remittance inflow would be severely affected as a fall out of the war.

BSS adds: Speakers at a seminar on Iraq war today condemned its occupation by the US-British forces expressing fears that it would legitimise more aggression in an era of growing neo-colonialism.

Prof Rehman Sobhan told the seminar titled 'US-British War on Iraq and Bangladesh Economy' organised by Bangladesh Economic Association (BEA) that the US government wants to destroy OPEC. Held at the BIAM auditorium in the city he said Dhaka's position appears to be nowhere.

It can neither take a clear stand to condemn it due to its heavy dependence on the US market nor can it accept it in view its far reaching consequences in a new world order characterised by use of force.

He said its a game plan to reverse the gains of nationalisation of oil companies by nationalist forces in the Middle East. Following the Gulf war in 1991 they established control over Kuwait oil fields and this time they have taken over oil fields in Iraq.

Their next targets may be Iran and Libya to wrest control of their oil. What they will try to do immediately is to destroy OPEC to establish their control on oil production and its market prices, he said. Pointing to the rise of Shiite nationalist forces in South Iraq and its backing by Iran, Rehman Sobhan said the US may, however, face stiff resistance in implementing its plan.

United resistance by Iran, Iraq and Syria can only foil the US plan, he said, adding its move to establish Israel as the policeman of the Middle East will wrought havoc to the region.

Export of frozen food to the UK has slowed down, no export contracts signed after the beginning of war and its prices declined by 10 to 15 per cent in international market.

Exports of leather and leather goods worth Taka 200 crore remained suspended to Italy, France and Germany. Besides this, shipment of 87,000 tonnes of jute and jute goods worth Taka 25 crore has remained suspended. Delay in shipment of jute goods worth Taka 36 crore to Middle East occurred. Also shipment of 35,000 tonnes of jute goods suffered delay to European Union.

Remittances remained unaffected so far, he said pointing out, it happened because people in the Middle East and US have sent their savings. But there is a big risk awaiting, he apprehended.

Prof Anu Mahammad of the Jahangir Nagar University said the destruction of Baghdad Museum and burning of national library have exposed the brutish nature of the US aggressors showing their eyes fixed beyond Iraq oil to destroy the nation.

Explaining the nature of US economy, Prof Anu Mohammad said its expansion and growth are closely tied to expansion of war at various global points. War is part of the US economy, he said pointing to arms dealers and oil businessmen who are actually controlling the US establishments.

Prof Abul Barkat said imperialist war is enemy of the people, so also criminalisation of economics and politics is not good for the welfare of people. It is time to turn around, he said.