Global Visions for `Notun Bangladesh'
By
Ziaur Rahman, CEO, IITM
luckytoaccess@gmail.com
Introduction
Since 1971, Bangladesh had undergone many transformations and has
waded through unrelenting socio-economic and political shocks. It
has shown its resilience and unflinching desire to move forward even
with a population of 140 million and growing. The very idea of
a `Notun Bangladesh' has been reverberated many times and much to
our delight the present drive to put the horse before the cart has
begun, meaning the country has set a priority to eradicate
corruption, uplift the education quality, ensure accountable and
transparent governance at all levels and, finally, introduce
performance and efficiency across the board. These signs are
harbinger of a positive socio-politico and economic climate in the
years to come. While we transition to a sustainable, equity
driven `future state,' the path to glory has been difficult,
tumultuous and often the public support has swayed due to the
campaigns of vested quarters. The progress had stagnated at times,
but the `growth horse' in all spheres is leaving encouraging marks.
The focus of this article is on the climate of business, employment
and competitive strategy for Bangladesh to leave an indelible mark
in global trade and finance arena.
Effective Participation at the Global Front
A very necessary, yet not properly articulated, concept of branding
has been making its wave across Bangladesh. Very recently in early
2008, we noticed a high-impact NRB (non-resident Bangladeshi)
conference taking place where the Chief Advisor, other Advisors and
eminent personalities participated and deliberated on a `notun
bangladesh' that will be positioned in the global map. Their focus
was on brand augmentation and creation of an investor friendly
economy, beaconing an era of progress and prosperity. With equal
zeal, another conference and forum by the name of `Brand Forum' was
launched in Bangladesh with the idea of significantly altering and
improving the country's image. No doubt, these are innovative ideas
having global prospect if supported by evidence and a story that is
backed by facts and figures. While the national GDP per capital had
risen consistently over the last decade and now stands at
approximately $450 USD per capita, the price spirals have eaten away
the real value of the income of the people in Bangladesh. Many
recent articles in the press have been suggesting that the recent
price inflation, sometimes referred to as the `inflation tsunami'
has pushed at least 20% of our population back to the doors of
poverty; all the progress has been wiped out during the last year
and a half. These are facts that cannot be avoided and Bangladesh
needs to wrestle with these unsettling waves of price inflations in
food items and fuel and gas prices. Our economy continues to stay
overly dependant on importing food grains and fuel. Given the
contextual reality of a hard-pressed foreign currency draining
country, we need to think beyond cosmetic surgery and focus on the
real issues that need tweaking and improving. Brand building and
inviting the NRB to invest in open arms in Bangladesh also need to
be supported by friendly business environment and one-stop service
centers within a time-bound environment. Brand is the perception we
create among ourselves regarding a product/institution/country and
is a tenacious and long process. Let us not be confused by thinking
that putting together a wonderful CD with highfaluting words and
figures and casting some beautiful landscape and factory premises,
we shall achieve a branding status for Bangladesh. This may be a
start, but practically speaking, we need to look at developing our
brand by following a structure over an extended period. Extending
the logic of a `corporate brand,' we can safely suggest that a brand
needs to have quality products, high-visibility, brilliant staff,
reputation for exceeding market expectations, significant social
contribution, a name in product/service innovation, global
accolades, significant market coverage, high name recognition, a
long history of operation, solid global partnerships, a reputation
in research and development, renowned management practice, etc. Now,
some of the above issues directly map into branding a country while
some need modification. While the truth remains that if a country
needs to brand itself, it has to have a multi-pronged approach. Some
crucial points that need to be ensured during developing a brand
are: a functioning economy under a democratic climate, transparency
and accountability in governance in all spheres, a fully convertible
currency, a superlative educated work force with knowledge of a
major global language, city infrastructure of reasonable standing,
art and technology universities/centers of global repute, homegrown
multinationals with significant research and innovation, a
sustainable trade and commerce climate with free flow of capital,
and a network of cities of comparable standing. Can Bangladesh
afford to entertain these conditions at present?
The Way Forward
Every country in the history of civilization had to sweat and
persevere to achieve what they can happily claim as theirs now. In
this road to success, Bangladesh needs to devise its own strategy
and focus on a `home grown' strategy that can be based on global
knowledge but having localization. A much dialogued view in the
developing world has been that the international development
organizations like World Bank, IFC, ADB, Africa Development Bank's
strategy for a country had not reaped the desired benefits; some of
these countries had done better by shunning the dictates of these
institutions, namely Malaysia and some Latin American countries.
Certain mega trends are sweeping across the world and Bangladesh
needs to smarten up and quickly identify the opportunity that passes
by. If we are to look at what are the perils of the present, we can
identify the opportunity set that awaits Bangladesh. These are:
1. Food security shocks across the globe
2. Rising Fuel prices
3. Rising health hazards and costs
4. Rising Valuation for particular/proprietary knowledge
5. Communication through all media increasing significantly
6. Increased Global Movement of humans
7. Knowledge Gap rising
8. Rising and receding technology and research costs
9. Depletion of minerals and climactic changes
10. Internet focused economy and trade on the rise
11. Scarcity of resources significantly altering the role of
government
The eleven broad categories paint the global picture; an astute
student of interpreting the future may deduce with some
predictability what holds true in future; based on calculated
hypothesis, the strategy for Bangladesh needs to be evolved. While
these eleven thrust areas need to be handled separately, they are
also inter-connected. For example, due to rising value for
particular/proprietary knowledge (Point 4), the knowledge gap across
the lower income spectrum of society rises (Point 7). Similarly the
rising cost of essential food and commodity (Point 1) is pushing a
greater number of people to compromise on their food nutrient
intake, which is increasing the propensity for heath-related
illnesses and subsequent costs (Point 3). Rising Fuel prices (Point
2) and depletion of minerals and climactic changes (Point 9) have
become significantly thorny points of global contentions. With the
advent of better transport system, migration and tourism, greater
number of people are globe trotting these days and increased global
commerce (Point 6) has accelerated this phenomenon. Research and
technology costs are rising in some spheres like health-care while
costs are dropping in telecom and ICT sectors (Point 8). The
communication media has seen unbridled growth with the advent of
ICT, telecommunication and video revolution (Point 5). With the pace
of society rising spontaneously, news, events/packaged information,
business constructs have become a global commodity and based on the
wings of communication, hundreds of media focused business entities
have spawned and some even challenging the stalwarts in the more
mature and conservative news media markets. The dawn of a digital
civilization has taken root globally and the new media market has
become a market reality commanding billions of dollars in valuation
in certain advanced economies, also signaling a shift in mindset
to `value' business based on its market cash-flow potentials.
Similarly, on the global front, trade and commerce is gaining
momentum and relevance through using the Internet (Point 10) and
many businesses have migrated significant portions of their
portfolio on this platform.
The cost of harnessing certain knowledge is rising precipitously and
its acquisition cost has gone beyond the budgets of the middle class
and sometimes the upper middleclass. This gap is widening the
competitiveness between the knowledge achievers and the knowledge
impoverished, tilting the economic might in favor of the person
having the reign on the knowledge repository.
All of the above issues have created global stress and no government
can singularly handle the situation (Point 11); they have to work
with the community, the social organs within the community and the
corporations representing these communities. The idea of Public
Private Partnership (PPP) has become a necessary appendage in
managing the affairs of a country or a community.
The Strategy
On the global frontier, each country tries to jockey for a
competitive space and a larger share of the trade & commerce based
on its collective drive, intellectual capacity, product and service
support, global reach and network and myriad of strategic alliances.
Bangladesh has to tow the same line. For greater global integration
and acceptance, it needs to build its base of alliances,
partnerships and position its products and services. It needs to
project as a country with its uniqueness while advocating a positive
culture of change and be open to invite strategic investments that
do not signal any future security risks. All investment proposals
can be brought to public scrutiny allowing for a free and candid
debate and looking at the merits and demerits, we can proceed
forward in accepting the FDI (foreign direct investments). A case in
point may be the FDI proposed by the TATA corporation. Bangladesh
may open up on areas where there is no direct threat of depletion of
resources; similarly, where there is significant internal market to
support, Bangladesh should not entertain FDI for external
consumption.
As a nation, if we can take stock of the effects of the eleven mega
trends cited above, Bangladesh should have a national prioritization
strategy addressing each of these trends or threats, investing
requisite resources and logistics to play a change agent's role and
ultimately ride the surf of global trends. Scarcity is an economic
condition, but the tools to address `scarcity' are a strategic
consideration. The mega trends clearly suggest that environment,
education, health care and addressing the knowledge gaps can situate
our citizens in the right footing. Therefore, the government of
Bangladesh and the private sector should increase their collective
thrust in strengthening these drivers of change.
The mind set of Bangladesh is focused on a product culture and
everything that is a `product' can be monetized or securitized in
banking nomenclature; however, if someone speaks of an idea, share a
particular management construct or discuss matters within the
purview of the intellectual domain, there are no financial
institutions or any institution for that matter to put a price on
the potential success of the `idea or concept' being communicated.
While the global `knowledge horse' gallops at blazing speed, we, in
Bangladesh, have been comatose even to contemplate that `knowledge
can be packaged into a product, let alone a value-adding revenue
center.' The age of knowledge revolution has matured into at least a
decade old phenomenon but trifle significance of the `knowledge era'
has been absorbed into the national psyche. While global
universities like MIT, Carnegie Mellon and corporations like
Microsoft, General Electric, Siemens, Sony, etc. are focused
on `knowledge ants,' knowledge archives,' knowledge engineering and
innovation,' we are focused on status-quo and driven by `old is gold
type of mentality.' While we must learn from the past and indeed
respect the `old,' we as a nation, need to breathe a culture
of `openness, innovation and adoption.'
Bangladesh needs to accelerate and capture the real essence of the
new ways and means of business, learn quickly to adopt and be a
player in the ocean of new changes, only then we shall meander
through the `jungle of global competition.' The bricks and mortar
industry of the past has been the engines of growth in the
industrial West for approximately one century. During the last 20
odd years, a new group of industrial giants have stolen the show.
The names like Microsoft, Yahoo, CNN, Sony, Merrill Lynch,
Amazon.com etc. have exploded into the market space with extremely
high market valuations. The products of these companies are mostly
knowledge, software, entertainment and information. In the immediate
past, technology companies (IBM, ORACLE, SAP) and internet/e-
commerce companies (Yahoo, Yutube, Google, AOL, Ebay) and internet
socials (Linked In, Facebook, Myspace, Xing, Ning) etc. have
exploded into the market with deep financial pockets supported by
venture finance and seed capital firms. A fledgling institutional
framework has evolved over the years in many of the Western
countries to support the introduction of new ideas and approach. The
business mavericks have been supported by these financial houses in
mainstreaming the `new idea businesses and concepts' into the market
space and invest on potential cash in-flows that the companies
project in making. The underlying financial analysis is
significantly sturdy, driven by market logic and market sentiments
are tested by research and surveys. Bangladesh needs to create at
least around 2.5 million new jobs each year (in addition to the
already existing jobless 7 million) to absorb the growing population
base and unless we accelerate in building new institutions and
businesses, we will fall short dangerously in providing jobs - a
fundamental right for citizens of a civilized nation wanting to
build its brand value globally.
The Bangladesh strategy cannot be summarized within the structure of
a short article; therefore, a compilation of broad areas to
highlight are shown below.
a. Notun Bangladesh needs to extend globally. Bangladeshi
ownership of foreign businesses in other countries has to be taken
as a necessary survival strategy.
b. Invite FDI with serious component of knowledge transfer.
Offer very solid opportunities for investment in the field of
technology, ICT, bio-technology, agro-technology, bio-informatics,
etc.
c. Significantly bolster the public universities and create
positive incentives for education in basic sciences and arts. We are
draining students each year from advancing education in basic
sciences and arts.
d. Bangladesh Bank may mandate a certain portion of commercial
bank funds and funds of corporations (SEC/GOB may take this lead) to
be injected as venture capital fund for new and innovative
businesses to spawn and prosper without owners' pledging equity as
mortgage. Over dependence of financing based on mortgaged property
has to be averted.
e. Accept `knowledge as a product' and allow businesses to be
introduced on various verticals of knowledge domain. This will kick-
start the revolution in business based on selling a great idea.
f. Revalue local currency against all major currencies.
Bangladesh is an importing country and spends heavily on importing
food grains and fuel so the taka has to be strengthened over a
period of time (learn from the Chinese currency re-valuation
strategy).
g. The government and the private sector should clearly
articulate and assign a portion of its Annual Development budgets on
alternative fuel sourcing, development of the solar energy sector,
migrating towards energy efficient lighting nationwide, etc.
h. The government and the private sector need to invest in
agriculture, fishery and livestock sector, especially in combination
with technology offering practical solutions.
i. The country should invest in better seed and livestock
incubation technology for higher yield.
j. Integration into WTO has to be judiciously handled with
special research cell for understanding the competitive positioning
and negotiating points
k. Move Bangladesh forward with significantly more sustainable
public-private partnership concepts.
l. Allow the internal stock markets to flourish by reducing tax
rates for companies joining the local capital markets and also allow
cross-listing
m. Focus heavily on improving the service sector performance
delivery, especially in health and education.
n. Migrate towards an e-enabled and equity driven society and
provide incentives for companies and government entities coming
forward.
o. Reduce the barrier to business by creating a positive
culture of transparency and open currency conversions and remittance
to and fro.
p. Introduce mandatory provisions for skills and capacity
building training across the board/have a national HR policy for non-
resident Bangladeshi and overseas workers.
q. Offer sizeable tax breaks for establishing social business
enterprises.
r. Increase global fraternity through trade linkages supported
by efficient Bangladeshi embassies abroad.
s. Expand cultural visits, promote and fund Bangla Language
trainings for international citizens and children coming from
parents of Bangladeshi origins.
t. Move aggressively into mainstreaming educational institutes
of all levels and communities with programs of digital inclusion.
Conclusion
Bangladesh has been cited in global platforms as a country brimming
in potential. The Morgan Stanley's of the West have voiced the same
sentiment that many believe is within the grasp of Bangladesh. We
have the human resource base and the internal economy to push
forward our agenda of growth and not only achieve the MDGs before
2015 but also accelerate into a developing country if we play our
cards right and deploy competitive, time-bound and relevant strategy
locally and globally. With education, sincerity, strategy and double
digit growth we are poised to catapult our nation into the ranks of
the middle tier countries and stride towards a Bangladesh that shall
be branded as country of change, innovation and sublime culture
under multi-ethnic and pluralistic society.
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