Productivity can be boosted by 10-15 pc: Wahiduddin Mahmud
Poverty shouldn't be base to remain competitive in global market, he says
Dhaka, July 4 (UNB) - Utilisation of technology, enhancing workers’ skills through proper training and wage hike can help raise productivity by 10 to 15 percent in the export-oriented industrial units, said a leading economist on Wednesday.
“Poverty apparently has become the base for us to be competitive in the market. It’s not good at all. We need to increase workers’ wages and improve their productivity and skills gradually,” Chairman of Institute of Microfinance and Economic Research Group Dr Wahiduddin Mahmud said at a report-launching ceremony at the World Bank office in the city.
But, he said, it needs to be decided whether Bangladesh will remain competitive by keeping wages low or increase the productivity of workers by reducing other expenses of investment, infrastructure development. “It’s very important and a big challenge. With low wages, workers can’t come out of poverty line.”
Lead Country Economist for the World Bank, Bangladesh Sanjay Kathuria and Task Team Leader Abul Basher jointly presented the summary findings of the new WB report titled ‘Consolidating and Accelerating Exports in Bangladesh.’
Executive Director of Centre for Policy Dialogue (CPD) Prof Mustafizur Rahman, Executive Director of Policy Research Institute of Bangladesh Dr Ahsan H Mansur and entrepreneurs, bankers and government officials made their observations on the report.
In his concluding remark, Wahiduddin Mahmud said the workers cannot be taken out of poverty line with the low wages. “There needs to be coordination between these two -- wage and skills, and productivity.”
About the economic growth of the country, he said the economic growth rate of the country will largely depend on the growth of readymade garment exports. “There’s an uncertainty about how much growth will be achieved. Export growth is important for overall GDP growth.”
He also said Bangladesh needs to accelerate export for the survival giving a boost to the GDP growth which will help reduce poverty.
On diversification of exports, the renowned economist said, “Diversification of exports is possible in mid- and long-term. We can’t say which product will bring good outcome. If a product turns out successful once, required support can be provided for its expansion like RMG.”
He, however, said diversification of industrial products is difficult to some extent. “We’ve infrastructural challenges.”
He emphasised product development as Bangladesh has limited resources and higher population.
Making his remarks on the report, Prof Mustafizur Rahman said there is a scope for PPP (public private partnership) initiative for the skill development of the workers as the government cannot do it alone.
He also pointed out weak enforcement of monitoring labour standards and criticised the Industrial Police for its poor performance and siding with the owners instead of giving priority to the workers’ interests.
“From day one, it (Industrial Police) is perceived as the police force of entrepreneurs. It was supposed to be looking at both sides – workers and entrepreneurs. Workers-owners good relationship is very important.”
About export diversification, he said there is enormous opportunity to diversify exports and give a boost to export earnings. “We can export another 100 products to the global market.”
“Poverty apparently has become the base for us to be competitive in the market. It’s not good at all. We need to increase workers’ wages and improve their productivity and skills gradually,” Chairman of Institute of Microfinance and Economic Research Group Dr Wahiduddin Mahmud said at a report-launching ceremony at the World Bank office in the city.
But, he said, it needs to be decided whether Bangladesh will remain competitive by keeping wages low or increase the productivity of workers by reducing other expenses of investment, infrastructure development. “It’s very important and a big challenge. With low wages, workers can’t come out of poverty line.”
Lead Country Economist for the World Bank, Bangladesh Sanjay Kathuria and Task Team Leader Abul Basher jointly presented the summary findings of the new WB report titled ‘Consolidating and Accelerating Exports in Bangladesh.’
Executive Director of Centre for Policy Dialogue (CPD) Prof Mustafizur Rahman, Executive Director of Policy Research Institute of Bangladesh Dr Ahsan H Mansur and entrepreneurs, bankers and government officials made their observations on the report.
In his concluding remark, Wahiduddin Mahmud said the workers cannot be taken out of poverty line with the low wages. “There needs to be coordination between these two -- wage and skills, and productivity.”
About the economic growth of the country, he said the economic growth rate of the country will largely depend on the growth of readymade garment exports. “There’s an uncertainty about how much growth will be achieved. Export growth is important for overall GDP growth.”
He also said Bangladesh needs to accelerate export for the survival giving a boost to the GDP growth which will help reduce poverty.
On diversification of exports, the renowned economist said, “Diversification of exports is possible in mid- and long-term. We can’t say which product will bring good outcome. If a product turns out successful once, required support can be provided for its expansion like RMG.”
He, however, said diversification of industrial products is difficult to some extent. “We’ve infrastructural challenges.”
He emphasised product development as Bangladesh has limited resources and higher population.
Making his remarks on the report, Prof Mustafizur Rahman said there is a scope for PPP (public private partnership) initiative for the skill development of the workers as the government cannot do it alone.
He also pointed out weak enforcement of monitoring labour standards and criticised the Industrial Police for its poor performance and siding with the owners instead of giving priority to the workers’ interests.
“From day one, it (Industrial Police) is perceived as the police force of entrepreneurs. It was supposed to be looking at both sides – workers and entrepreneurs. Workers-owners good relationship is very important.”
About export diversification, he said there is enormous opportunity to diversify exports and give a boost to export earnings. “We can export another 100 products to the global market.”
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