Prospects and Challenges of Industrialization in Bangladesh

1 Prospects and Challenges of Industrialization inBangladeshM. A. Rashid SarkarAbstractIndustrialization is an essential pre-requisite for rapid and sustained economic development andsocial process in which a societyor country transforms itselffrom a primarily agricultural society intoanindustrialone based on themanufacturing of goodsand of Industrialization include theuse oftechnological innovationtosolve problems as opposed to superstition or dependency upon conditions outside human controlsuch as the weather, as well as more efficient division of labor and economic growthof economy.

2 The internal development of a nation depends upon the development is predominantly agriculture base and has limited industrial output industrial sector in Bangladesh is a huge contributor for the country s country faces severe competition in the world market to maintain and develop itstrade and balance of payment in its favor. The economy is not strong as the industrialinfrastructure and output are not diversified problems of ensuring primary energyservicesare of prime importance to industrial Government of Bangladesh hastaken steps to facilitate the Industrialization in Bangladesh .

3 Thepaperaddresses the prevailingproblems, Prospects and Challenges of Industrialization in Bangladesh andsome policyrecommendationsare :Industrializationis aprocessthat happens in countries when they start to use machines to dowork that was once done by people. Industrialization changes the society as it happens. Duringthe Industrialization of a country people leavefarmingwork to take higher paid jobs in factoriesin is part of a process where people adopt easier and cheaper ways tomake things.

4 Using bettertechnology, it becomes possible to produce more goods in a shorteramount of and structural transformation of theeconomy and diversificationof the economic base, increasing returns and economies ofscale, technological progress andproductivity increase, accelerated economic growth andemployment creation, increase inincomes and standard of living of the people are theuniversally recognized dynamic benefitsarising from industrial development. Industrializationis thus pursued as an overridingdevelopment objective in its own are the most important aspectof the refer to the production of an economic good or service with aneconomy.

5 Theprocessing of raw materials to finished goods and provision for services is done by the be classified as public and revolution led to the development offactories for large scale production withconsequent changes in is the extensiveorganization of aneconomyfor the purpose ofmanufacturing. Industrializationintroduces aform ofphilosophicalchange where people obtain a different attitude towards their perception ofnature, and asociologicalprocess of is considerable literatureon the factors facilitating industrial modernization and enterprise positivefactors identified by researchers have ranged from favorable political-legal environments forindustry and commerce, through abundantnatural resourcesof various kinds, to plentifulsupplies of relatively low-cost.

6 Skilled and adaptable labor s industrial workersincomes rise,markets for consumer goods and services of all kinds tend to expand and provide a furtherstimulus to industrialinvestmentand of Industrialization :Macro objectives of Industrialization are- To provide employment to working labour force To increase GDP To supply consumer, capital and intermediary goods To support agriculture and service sectors To improve balance of payment positive by promoting export industry and import substituteindustriesHistory of Industrialization in BangladeshIn 1947, the Indian subcontinent was divided into two parts.

7 One was India and the other onewas Pakistan. Pakistan had two parts. One was West Pakistan and the other one wasEastPakistan,which is now known as Bangladesh . The government of thenWestPakistan dominatedthe people of this country in different sectors. In the economic sector, the discrimination was themost. Mostof the industries of Pakistan were in this country. However, the profit from them wastaken to West progress in jute manufacturing started in that manufacturing sector is one of the oldest traditional manufacturing sectors of Bangladesh ,which emerged in erstwhile East Pakistan in the early 1950s.

8 During the1960s and 1970s majorshare of the manufacturing sector in national income and manufacturing employment wasaccounted for by this sector. Exports of jute and jute goods were the two most important sourcesof foreign exchange of Pakistan during Eastwassubjugated, as all the revenuewent to West 1971,withthe liberation war of 9 months, Bangladesh became after the war,the country was left in dire states, the industrial development was very ,ReadyMade Garments(RMG)started during in this sector, Bangladesh couldlayclaim toconsiderable success.

9 Today garment export is the main source of foreign exchangeearnings. Its success was not necessarily influenced by government policy but essentiallybyoutside originatedin the 1970s when the investors of other South East Asian nationsventured to set up garment factories in Bangladeshandto work around the export quotasimposed on their native countries by the United the 1980s,the pharmaceutical Sectormade advancement in one of the mostdeveloped hi tech sector which is contributing in the country's economy.

10 After the circulation ofDrug Control Ordinance-1982,its development accelerated. During the 80s,other sectors liketea manufacturing, leather factories etc also gained importance. In 1990s, sectors like shipbreaking,steel, cement and cold storage goods etc developed and gained momentum. From 2000to 2012, many industries started theirjourneysuccessfully,andcontributed to the economicgrowth of Bangladesh . Among them are-electronics, glass,aluminum, plastic, cycle, andceramic To sum up the whole thing, we can say that after 1971, Bangladesh isslowly and steadily turning itsattention to develop its economy, through industrial development,moving away from the agricultural Industrialization is Important in BangladeshThe industrial sector has historically been the sector that has driven growth as countries havemoved from low to middle income status.