The rapid growth of trade has turned Bangladesh into a 'trade-dependent country', earlier dubbed an 'aid-dependent' one. The trade-GDP ratio, a measurement of the openness of trade regime, stood at 42 per cent in 2015 which was 23 per cent in 1980, 19 per cent in 1990 and 29 per cent in 2000. Both merchandise exports and imports are increasing annually. Thus trade bodies or trade promotion organisations are also becoming more important, especially in helping the government formulate trade and economic policies.
In fact, chambers of commerce and associations of different manufacturers and traders are the only bodies who can tell the inside stories of businesses and industries. They are quite active to protect their own business interests and frequently lobby with the government for fiscal and monetary incentives and pro-industry policy supports. While there is nothing wrong in these, it is important to substantiate demands and claims with facts, figures and perspectives. Moreover, the wide difference between local manufacturers and finished good importers usually puts the policymakers in a dilemma over fiscal or other policy decisions. They need to review the demand and rationale of all the parties very carefully before taking decision.
Such decision, however, requires sufficient information about the real status of the industries and a clear idea about the future prospects. For these, intensive research is a must. The trade bodies have responsibilities to conduct such research to provide comprehensive inputs to the policy makers.
In Bangladesh, there is a dearth of research in business and trade bodies. The leaders and members of these trade bodies are yet to appreciate the importance of research and its long-term impact. So, there is limited budget and logistics for research which ultimately discourage the recruitment and development of sufficient manpower for conducting research. In most cases, leading trade bodies are dependent on local think-tanks, research organisations and universities for conducting their research. While such outsourcing is essential, it doesn't reduce the importance of building the own capacities of the trade bodies to conduct independent research. Instead of fully outsourcing, there should be joint effort to conduct research.
It is, however, not true that there is no research initiative at all among the trade bodies. The Dhaka Chamber of Commerce and Industry (DCCI), country's one of the old and leading trade body, is running a business institute for two decades to provide trade and business related trainings. Started as a training centre in 1991, it was upgraded as DCCI Business Institute (DBI) in 1999. While training and business education is its prime objective, it can also focus its activities more on research and analysis in collaboration with the research wing the chamber. Some good works have already been done by the DCCI research unit. During the early 2000, with the help of Washington-based Centre for International Private Enterprise (CIPE), the chamber produced around three dozens of economic policy briefs. The book titled Commercial History of Dhaka is a wonderful publication of the chamber.
Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) has an economic research cell which produce important analysis and inputs. The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the apex trade body of the country, has a research division. But the works of the division are mostly confined to preparing suggestions for the national budget, analysing tax related matters, drafting speeches and talking points and reviewing different trade policies. The FBCCI is yet to produce some intensive research and extensive analyses like its regional peer, Federation of Indian Chamber of Commerce and Industry (FICCI). The Indian apex trade body is quite rich in research, and conducts regular studies and has regular publications on different trade and economic issues.
Acknowledging the lack of research by the country's trade bodies, DCCI has taken an initiative to create an independent dialogue, research and advocacy platform. DCCI, along with MCCI and Chittagong Chamber, formally launched the Business Initiative Leading Development (BUILD) in 2013. The initiative was, however, taken in 2011 which was facilitated by the International Finance Corporation (IFC). So, BUILD emerges as a fully private-sector lead body to conduct business-related research and promote interactive dialogues with the policymakers.
Again, two trade bodies of the country's top two largest export sectors, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), have their own research wings to cater for the demand of these sectors. Being younger, research wing of BKMEA appears more vibrant. Nevertheless, these two trade bodies need to put more attention on research focusing labour related issues and market exploration. Research unit of the Bangladesh Textile Mills Association (BTMA) is also doing some regular work.
But, the trade bodies alone are not responsible for the lack of quality research in their areas. Attention on quality and comprehensive research is still not on the priority list of the country's policy makers. Lack of quality data and statistics are there. Most of the government agencies care little for comprehensive, diversified and updated data. Only few government bodies are doing their research works without appropriate incentive.
Thus the overall situation is not research-conducive. Research is not only writing a report by collecting and analysing data, but also initiating debate and discussion on data, analysis and findings. It is an exercise of knowledge.
Regarding trade bodies research effort, one positive thing is that a group of young people are now getting wider space in these organisations like FBCCI. Collaboration with different government bodies like Bangladesh Tariff Commission is also slowly increasing. Private-public initiative like Bangladesh Foreign Trade Institute (BFTI) is also trying to become more active. Thus, there is ample scope to enhance the research and analytical works for the trade bodies by extending financial and logistic support to these initiatives. The government should also provide the assistance. To face the emerging and unseen challenges of the global trade regime as well as the geo-political risks, good research is a backup tool for the trade bodies.
[email protected]
- Thursday, 25 April 2024 |
- Today's FE |
- e-Paper |
- Beta Website
