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THE new industrial policy (NIP) is now in its final shape. It is waiting for the approval of the ministerial cabinet. The preparation of this new industrial policy, called the Industrial Policy 2004, has undergone a rather long process to reach its final stage. So, all concerned would expect that this policy would have fewer discrepancies and hence be more foolproof. One may recall that two more such industrial policies were formulated since the restoration of democracy after the fall of the authoritarian regime - the first one in 1991 by the then BNP government and the second one in 1999 by the Awami League government. As before, the government in this new policy has stressed that the private sector would be the prime mover of the economy. In line with this emphasis on the private sector, the proposed NIP aims to further expedite the process of disinvesting the state owned enterprises (SOEs), especially those incurring huge losses. However, the new policy is silent on the fate of the SOEs that are running on profit. But the government needs to have an unambiguous policy about all the SOEs, at least for consistency's sake.
The NIP looks forward to a bigger role of the manufacturing sector in the economy. Accordingly, it envisages a larger contribution of the industry to the nation's Gross Domestic Product (GDP), which at the moment (FY 2003-04) hovers around 16.25 per cent. It is worthwhile to note that a decade back, that is, in FY 1993-94, industry's share in the GDP was 14.35 per cent. To say the least, this is a very poor show by the country's manufacturing sector. Notwithstanding this not-so-enviable past performance, one, therefore, needs to be cautiously optimistic about the NIP's assumption that the industry will contribute 35 to 40 per cent to the GDP within the next ten years. Oddly though, while the prevailing situation compels one to be cynical about even such a modest goal, the global circumstances demand that the country should do more and ensure a still higher growth in the industry if it wants to simply survive in the present-day world. For at this point in time, the terms -- industry and economy --have become all but exchangeable. And so it is not enough to say that the government will in its proposed new policy be able to address the issue of the industry with more seriousness. In fact, industry should be the single most vital issue before the government now.
But to return to the country's own situation, it has still to go a long way towards even dreaming a modest dream. On this score, the decision to raise the number of thrust sectors to 33, which was only 16 before, and putting special emphasis on the agro-industrial sector -- for example, intensive shrimp farming, commercial plantation, light engineering, pharmaceuticals, ceramics, high fashion value-added RMG, etc. -- are certainly commendable. It is also appreciable that the proposed NIP has expanded the scope of foreign direct investment (FDI) beyond the export processing zones (EPZs) and well into the garment sector. That would definitely help this threatened export sector, which is bracing for the rough sea of the quota-deprived post-MFA era. Recognition of the service sector as industry is another good move on the part of the government. But while creating new opportunities for investment, the policy should also discourage overheating a particular sector of the industry. The proposed NIP, according to a report published in this paper the other day, has also other redeeming features, for example, the idea of creating specialised economic zones and industrial parks. All concerned would cherish the hope that it would help create the a congenial environment for new entrepreneurs, both indigenous and foreign, to put in their money.
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