DHAKA: Bangladesh’s export lead economist on Trade and competitiveness Global Practices Sanjay Kathuria pointing to the Bangladesh’s export said that “Bangladesh is backing the wrong horse”.
He said those markets are not growing as fast as the neighboring Asian markets. “Growth is in the neighborhood. Successful countries are all there,” he said, giving examples of India, China, South Korea and Japan.
He said Korea became the fifth largest exporter in the world and over 60 percent of its exports go to Asian markets.
On the contrary, Bangladesh’s trade is mostly with the European and North American countries. It (the export) is miniscule in the South Asia and the Asia as a whole, he said.
Kathuria came from Washington to attend Bangladesh Investment Development Authority’s (BIDA) two-day strategic workshop with all relevant government agencies and private stakeholders at a Bahubal resort in the north-eastern Habiganj district with the support of World Bank Group.
Kathuria said India, China, Korea and Japan are the powerhouses of world economy now and Bangladesh has “insufficient engagement” both in trade and investment with those countries.
Both India and China make clothes which are the main export item of Bangladesh, but he said there are other products that Bangladesh can sell to those markets.
“People talk about issues of complementarities. It’s not true anymore. Countries like India and China – they become very bigger and diversified. They can import a vast range of products.
“India imports more than $400 billion worth of goods. If Bangladesh gets one percent of that market then that will be $4 billion compared to today’s exports of only about $600 million,” he said.
He said Bangladesh can diversify its export basket by encouraging investments from those Asian powerhouses.
Kathuria, however, said it is not easy to change the direction of the market quickly.
“It takes time and trade also depends on relations. But the process should start now,” he said, adding that Asia is the rising star, and Bangladesh must focus on those markets.
