Syed Don
To make our economy more resilient in the long run, I had the following ideas.
I'm not an economist. So, it's just a layman's idea.
1. Reducing trade gap with the US (now at 23 billion surplus for BD) through:
- purchase of LNG - although US's LNG is of 3 times higher price than that of market. (already non-binding agreement signed by GoB)
- purchase of non-sophisticated (not high-end items like MRCA - F16 V) defense purchase (for which we don't have to sign GSOMIA and ACSA agreements).
- increase in cotton import from the US (already on GoB's agenda)
- import of soybean oil - although pricy (will need govt subsidy to keep its price stable and affordable at the retail level)
2. diversification of economy in terms of:
- diversification of export industries n commodity basket,
- diversification of forex currency basket, and
3. domestic growth and demand generation through serious incentivisation of MSME (micro & small and medium scale enterprises) and SMEs (small and medium scale enterprises),
4. development of industries particularly with import substitution in mind that can be set up in the economic zones.
Exports to the United States as share of GDP:
Vietnam: 30%
Taiwan: 5.3%
Thailand: 12%
Malaysia: 12%
Singapore: 6%
South Korea: 7%
Japan: 3.7%
India: 2%
China: 2%
Indonesia: 2%
Australia: 1%
Author: Saikat Bhattacharya
