Employment generation must for economic stability: Economists
Private investment contribution to GDP is much lower in Bangladesh than in other developing countries
Employment generation is essential for the stability of Bangladesh's economy, and emphasis should be placed on the skill development of those who are already in and are entering the labour market, economists said at a seminar pn Thursday (4 April).
The private sector should also step forward alongside the government for employment generation, they said at the seminar titled "Is South Asia Experiencing Jobless Development?", jointly organised by the South Asian Network on Economic Modeling (Sanem) and the World Bank at BRAC Centre Inn in Dhaka.
Otherwise, it was felt that even if Bangladesh achieves development in the future, the number of unemployed people will increase, posing a challenge to the stability of the economy, according to them.
Economic experts, including the World Bank's chief economist for the South Asia Region Dr Franziska Lieselotte Ohnsorge, Sanem Executive Director Selim Raihan, Asian University for Women Vice-Chancellor Rubana Huq, and Sanem Research Director Sayema Haque Bidisha, spoke at the seminar on various issues regarding Bangladesh's economy.
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"There are various barriers to trade in Bangladesh. This is hindering Bangladesh's growth and employment opportunities"
Presenting an article at the seminar, Dr Franziska Lieselotte Ohnsorge, said, "Private investment in Bangladesh has stagnated. Its contribution to GDP is much lower than that of other developing countries. Bangladesh now needs to open up trade and raise institutional standards.
"There are various barriers to trade in Bangladesh. This is hindering Bangladesh's growth and employment opportunities."
She said, "Due to weak reserves of foreign currency, the value of the local currency may come under pressure again. When there is an exchange rate crisis in Bangladesh, the taka depreciates by 50% in the first one to two months. This devaluation puts pressure on borrowing costs and real incomes, reducing investment capacity."
She also noted that not everyone is playing the same role in dealing with the effects of climate change in Bangladesh, which also poses risks for the future.
Bernard Haven, senior economist at the Bangladesh office of the World Bank, said, "The number of quality jobs should be increased. There is no substitute for investment in job creation."
He pointed out that foreign investment in Bangladesh has decreased, noting that an increase in investment would result in more job opportunities.
Sanem Research Director Sayema Haque Bidisha said that discrimination has become evident in the country, and people are not in a good condition.
"Not only should employment be created, but quality of employment should also be improved. Diversification of the economy will need to be emphasised," she said.
On ensuring equal opportunities for men and women, she noted a significant gap in work opportunities between genders in Bangladesh. "While women's employment is increasing in rural areas, it is decreasing in cities."
Asian University for Women Vice-Chancellor Rubana Huq raised the question as to why the country's economy has been dependent on the garment sector for so long.
"Technology is being used in this sector, and how long the workers will stay at work is also a big question. Workers must be prepared now to survive in the future," she said.
Sanem Executive Director Selim Raihan said that the efficiency of private investment should be increased, and major reforms should be implemented in the tax sector.
He noted that private-sector investment growth in South Asia is not very encouraging, despite the significant role played by public-sector investment. He said that the most important priority in the upcoming budget for Bangladesh is to take initiatives to create macroeconomic stability.
