Changed India and changing Bangladesh
Sayed Javed Ahmad
Sayed Javed Ahmad
javedahmad@yahoo.com
In the 70s and 80s, when we were young and upbeat to take up pretty much any challenges in life India was seen as a nation with strong patriotic feelings that is capable of making anything from a needle to an aero-plane. The Ambassador car of Hindustan Motors, a flagship company of the CK Birla Group was a status symbol of Indian politics and pride.
In the 70s and 80s, when we were young and upbeat to take up pretty much any challenges in life India was seen as a nation with strong patriotic feelings that is capable of making anything from a needle to an aero-plane. The Ambassador car of Hindustan Motors, a flagship company of the CK Birla Group was a status symbol of Indian politics and pride.
Here in Bangladesh, we too were holding some patriotic dreams of making our nation self-sufficient one day. In the early 70s Bangladesh also introduced its first car "Viva" at an International Trade Fair in India. But somehow that car did not survive the political priority in the local market nor could it find a place in the foreign market. It simply disappeared.
India today, as it seems like, is struggling between patriotism and globalism. Since opening up the doors to world economy India has shifted its priorities focusing on global agendas. Compared to Bangladesh, India has made considerable progress in the arena with a stronger international presence in different industries.
Although late, Bangladesh too is making progress in the international arena. Bangladeshi entrepreneurs are now pondering on establishing and expanding their business presence in foreign countries and therefore asking the Bangladesh Bank (BB) or the Central Bank to allow foreign investments. In response, BB is also considering the request.
As our businesses gear up for a multi-national presence on the globe, we need to ponder on what benefit it would bring to Bangladesh as a nation economically. If we are to invest our hard earned foreign reserves for foreign expansion, that might limit our internal development of infrastructures and other economic agendas. We need to keep in mind that Bangladesh is entering the global market at a time when the market is in turmoil, exports are low, foreign remittances are also low and the prices of essentials are on the rise. Establishing a manufacturing industry at an overseas location would mean it would create jobs in a foreign country, not in Bangladesh and the government would lose out on tax revenues as well.
In comparison, India has taken up a smart strategy. They have created the environment and welcomed foreign investments instead of spending their forex in foreign economies. Today we find presence of many multi-national companies in India creating jobs for local people and bringing in more and more foreign investments and technological exposure. Comparatively, Bangladesh economy attracted only a few multi-national businesses.
Compared to size of population India has an advantage with vast land mass, which Bangladesh does not have. Bangladesh is over burdened with population in a small land mass. This limitation makes us unable to compete with India in many different areas. But then again we should look at the economies of Singapore, Hong Kong and Malaysia that managed to flourish despite all limitations. What Bangladesh is missing is a long term planning for a sustained economic growth.
Recently, I have had an opportunity to visit Mumbai, India to attend a training program on "Emerging Dimensions of Corporate Governance" organized by the Centre for Corporate Governance, Research and Training (CCGRT) at the Institute of Company Secretaries of India (ICSI). A delegate of six members from Bangladesh went there. We represented Bangladesh in discussing the problems and prospects of corporate governance. To our amazement we have discovered that most of the problems in India are very similar to our problems in Bangladesh, and that helped us to relate and understand the discussions better that our Indian participants also appreciated and valued. I felt that instead of going to European or Western countries for trainings on non-technical matters Bangladeshis should go to India as we could relate to the problems and the solutions that we would figure out together could also be applied in Bangladesh. Besides, attending a program in India would also be cost effective.
From the presentations of the resource persons who came for lecturing we have clearly noticed that they are all highly qualified in their respective fields as well as highly professionals in their exposures that we hardly find in Bangladesh. They were very open-minded and unbiased in their presentation acknowledging the problems in order to address them properly with sound understanding and knowledge on the subject; almost all of them stressed highly on their moral and ethical work standards and importance of it to maintain professionalism with an uncompromising attitude. Unfortunately, we do not see this among our professionals in Bangladesh.
It may come to a surprise to some of you to know that in some areas, Bangladesh is ahead of India! For instance, International Financial Reporting Standards (IFRS) has already been introduced in our country, whereas India is just going to implement in few phases. My personal discovery of interest was however to learn that the basics of corporate governance has not changed since the first corporate charter for the East India Company in 1601. In that consideration, UK still rules!
We have a lot of similarities than dissimilarities between us and India that justifies a close relationship with this regional power. Instead of seeing India as a political rival, we should see them as our potential economic partner sharing some common goals that would benefit us mutually. If we show our willing to see them as an ally, then they too would change their view and see us as an ally. With economic harmony, we would also achieve cultural and political harmony not pressuring one another on any views and norms. Our government should focus on developing mutual partnering with not just India, but also with China, Myanmar, Nepal, Bhutan and Thailand as we are geographically close with more or less with similar problems, standing firm in cooperation for peace and prosperity with mutual respect and harmony.
References:
India's Ambassador carmaker hit pothole: http://www.thedailystar.net/newDesign/print_news.php?nid=137724
BB to loosen control on capital transfer: http://www.thedailystar.net/newDesign/news-details.php?nid=137729
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