Feature

Globalization: Prospects and challenges for Bangladesh Economy

Prof. Dr. Md. Entazul Huque

The term globalization is very familiar worldwide and is being used frequently during oral and written communication. So, it is a buzzword. But what it really signifies is required to be clearly understood. The origin of the word globalization is globe. We know the word globe means model of the eartha composite body that contains valuable animate and inanimate objects with multi-configuration in a space called universe. Human being is one of the superior animate objects. We, as the human being of the earth made our global efforts to globalize the various activities to satisfy the needs and wants. The process by means of which our activities are integrated and created interdependence globally is called globalization. Therefore, globalization can be defined as the on-going economic, technological, social and political integration of the world. Through the process of globalization the economic, cultural, social, political, and environmental interdependence level has been increasing day by day over the vast distances. However, the vast distances with the advent of science and technology have narrowed down to such a position that we consider the whole world as Global Village (single community linked by telecommunication and modern voyage diminishing cultural differences). The global village is the outcome of globalization.

Globalization indicates integration of the economics and societies to certain common norms that result in increased trade flows, movement of capital and labour, services and ideas beyond the national boundary. This results in a confluence of information, dissemination of technology and an open and uniform code in trade and related matters. Globalization also brings changes in values and cultures. The concept of globalization is multidimensional and does not tell the story of trade flows only, rather, encapsulates short-term and long-term capital flows, foreign investment, migration and the diffusion of technology.

There are four factors those are contributing to globalization namely, i) efforts towards global economic liberalization through the WTO and other international organizations, ii) changes in the perceptions of the role of governmentfrom participatory to regulatory, iii) large increases in FDI, and iv) cost reducing innovations and advances in transport, information, and communication technology.

We can assess the extent of integration of a country with the help of 'Globalization Index' into the global economy. The index consists of a combination of about a dozen of variables, including the percentage of trade as a share of country's gross domestic product (GDP), inward and outward Foreign Direct Investment (FDI), income payments and receipts as shares of GDP, the number of minutes of international phone calls, and the number of travelers per capita, the percentage of population with internet access, and the number of internet hosts and secure servers per capita. Singapore ranks first in the globalization index followed by the Netherlands, Sweden, Switzerland, Finland, Ireland and Austria.

Due to inception of some crucial globalize features like remittance or transfer from expatriate workers, membership in multilateral institutions and active participation in international forum, openness to trade and investment, presence of active and vocal civil society, signatory of WTO, participation in the UN in many international forum Bangladesh has been considered as 'rapid globalizers'.

Globalization is an irreversible process. The benefit to the developing countries rests on few fundamental assumptions in the political, economic, and social dimensions. The proper institutional base is a prerequisite for governance issues to deal effectively with the problems arising from liberalization in trade.The social agenda for human resources development is also important in adopting the technological breakthrough in the production process. The imperatives for Bangladesh are to address these issues and design appropriate course of action to face the contemporary competitive situation and the competitive world in the near future as well.

The following issues are considered as positive towards globalization for Bangladesh:-

1. Member of WTO, a milestone in the globalization process.

2. Bangladesh delivered speeches in favor of developing countries in the UN and many international forums and prove worthiness.

3. Developing multi-party democratic system and role of civil society on environmental issues, minority rights, and on gender equality.

4. The concept of Caretaker government.

5. Formation of regional forum like SAARC.

6. The role of NGO's in the development process through micro-credit to the poor people.

7. A political, economic and social aspect of life is evolving, accommodating the culture and norms of the international community in the process of globalization.

8. Incorporation of optical fiber cable in the IT sector and flexible policies in IT

9. Use of mobile phone at a faster rate in Business purpose as well as other purposes.

10. Initiatives of banks and NGO's for group-based micro-credit for poverty alleviation

11. Adoption of PRSP

12. Development of garment sector and survival in the competitive business environment after abolition of Quota system.

13. Eradication of corruption, institutionalization of democracy, and setting of good governance (The action of the present government)

14. There are discernible changes in both the value and composition of export items and imports items.

15. Cricket of Bangladesh in the international arena.

16. Participation of corps of Bangladesh in different country under UN peace mission.

17. Micro-credit concept of Bangladesh and its use in other country of the world.

Bangladesh is lagging in the field of Information and communication technologies, E- government, and transparency. FDI flow is another consideration for Bangladesh for improvement. To have positive impact of Globalization a country must have to answer the underlying reasons of marginalization due to trade and policies and should address employment situation and poverty alleviation strategy. We, the people of Bangladesh, should also be careful to the adverse effect from the race of globalization.

Globalization has appeared as an inescapable reality. It has created both challenges and opportunities for the nation irrespective of developing and developed. Globalization has not only created prospects for trade and investment expansions but also has created opportunities for accelerating economic growth. On the other hand, it unleashed competition that puts pressure on the industrial and business firms of the developing countries to be more productive and innovative if they are to survive in the competitive world environment, It poses a lot of formidable challenges to the economy of LDCs like Bangladesh. Bangladesh can successfully meet the challenges of globalization by encouraging productivity through the development of Human Resource. Bangladesh needs to build up a skilled labor force. In general, the educational system is geared to creating 'degree holders' with little value in implanting dynamism in the economy. It produces more 'generalists' than needed, but not enough professional and technical people. The system is oriented towards present 'societal needs' valuing degrees and certificates as a status symbol, rather than creating skills and expertise needed for combating globalization. It is to be remembered that skill is the passport not only to a good career but also to spread towards globalization.

The writer is Chairman & Head, Department of Business Administration, BU