Briefly examine the trends in Bangladesh export trade since

independence and explain the need for further expansion and

diversification.
Export Tread in Bangladesh
Export is one of the most preferable and conventional way to perform international
business. In simplest word, export is traditional buying and selling across the border of
the country. In economics, an export is any good or commodity, transported from one
country to another country in a legitimate fashion, typically for use in trade. Export is an
important part of international trade. Its counterpart is import. Export involve anything
from transferring physical goods to intangible services with a view to earning profit,
sometimes it results from arbitrary practice. According to the Encyclopedia of Britannica,
export is To send or transport goods abroad out of a customs territory; to sever them from
the mass of things belonging to one country with the intention of uniting them to the mass
of things belonging to a foreign country.
Brief idea about the Export of Bangladesh
Like many other third-world developing countries, Bangladesh relies quite heavily on
exports to provide for the needs of its densely populated nation. Today the economy of
Bangladesh has largely depends on the export position of the country. Before the
independence and after the independence the main source of budget fund came from the
export revenue and till now it is the major indicator of countries growth and economic
stability for its principle role in exchange rate determination and GDP. In over three
decades, Bangladesh has witnessed substantial growth in its export of goods and services.
The volume of export, the no of exporting countries and as well as the range of exporting
goods have widen substantially. Bangladesh has experienced not only a substantial
increase in the volume of exports but also important changes in the composition of those
exports; moving away from traditional items such as jute and jute products and towards
new... Introduction Like its South Asian neighbors, Bangladesh began with a restricted
trade and exchange rate policy ostensibly to (a) conserve scarce foreign exchange; (b)
create industrial base through protective domestic environment; and (c) maintain the
balance of payments at a sustainable level. The outcome of such protective policies was,
however, disappointing: it created a distorted incentive structure resulting in AL locative
and productive inefficiencies. The policies also gave rise to anti-export bias discouraging
the growth of exports. To redress the anti-export bias, special incentive schemes were
designed which were also expected to minimize inefficiencies through domestic
competition. The outcomes of these inadequate and commodity-specific measures,
however, were not encouraging in terms of export development, balance of payments and
the development of the overall economy. Disenchanted with such autarkic external sector
strategy and also prompted and dictated by the Bank Fund conditional ties, the
policymakers in Bangladesh, as elsewhere in the South Asian countries, began to shift the
balance towards more openness of the economy since the late 1970s. The move was
gradual till early 1990s. Trade liberalization in Bangladesh in the early 1990s was rather
swift compared to many of its South Asian neighbors. Despite such a rapid transition, a
vibrant export-led growth was not achieved that could take care of chronic balance of
payments crises. It is, therefore, useful to examine the countrys external sector
performance and identify factors that inhibited the emergence of a viable external sector.


Need for further expansion and diversification
Diversification of export is a high priority area in the governments development
strategy. It is increasingly recognized that accelerated development and
diversification of countrys exports is needed for reducing the pressure on balance
of payment situation and for the growth of more viable and efficient agricultural
and industrial sectors for balanced development. Bangladesh has a sizable burden
of foreign debt and is in urgent of foreign exchange resources for debt servicing
and financing of expanded development projects.
Employment opportunities need to be created through expansion of exports for
alleviation of poverty. This will encourage savings and broaden the scope for
investment.
Export diversification is crucial for effective participation in the global trading
system. Expanding the countrys supply base is central to any export strategy.
While removal of constraints and improvements in the incentive structure will
enhance export performance of the country in the short to medium term, expansion
of production across industries along with adaptation and development and
diversification of products to compete in the overseas markets constitutes a
medium to long term priority.
Diversification of products
Upgrading design and quality of products and production of value added items
To adopt new strategy for expanding markets, to use computer technology and
e -commerce
To build up backward and forward linkage for maximizing production of
exportable
To create business friendly atmosphere and provide assistance to existing
exporters and induct new exporters
To develop skilled manpower in business
To create awareness in trade bodies, businessmen and concerned persons
about the global trading system
Govt. has formulated strategies for implementation of the objectives of export
policy which are given below:
o To assist in the production of exportable by creating product
development councils
o To provide assistance to producers and exporters in respect of market
intelligence and value addition
o To encourage export development by providing institutional support
to trade and export houses
o To assist in setting up seal of quality organization and similar
institutions to ensure quality
o To assist in setting up of international arbitration centre and similar
institutions for settlement of trade disputes within a short time
o To help the producers to use modern technology in the process of
design and production
o To familiarize the exporters with the work programme of the
successful exporting countries
o To provide assistance to the exporters in organizing single country fair
and to
o Participate in international fairs for introduction and marketing of
products