globalization trade and commerce allover the world by creating a border less market

8/2/2019 Globalization Trade and Commerce Allover the World by Creating a Border Less Market

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Globalization and its impactOn Bangladesh


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Introduction


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Over the past decades, globalization has now become a new world order, which virtually

influences everything that comes in our mind. Developing countries like Bangladesh with

vulnerable geopolitical locations and weak economies are now looking at globalization to

strengthen their economy to fight any perceived threats. But the increasing role played by

the western dominated institutions such as, the World Bank (WB), International Monetary

Fund (IMF), and the World Trade Organization (WTO) in setting the rules under which

globalization is played, has placed developing countries in a much disadvantageous

position vis--vis the developed countries. However, a closer look at the globalization will

show that it has both positive and negative impacts on the economy of Bangladesh. A

thorough understanding of the effect of globalization is needed to use its advantages to

improve her economy. This may also help Bangladesh maintain a sustained growth in the

face of likely economic peril. This paper studies both negative and positive impacts of

globalization on some selected economic sectors of Bangladesh. It also studies some

ameliorative measures to overcome the negative impacts and also the ways to exploit the

opportunities created. Finally the paper recommends some measures for Bangladesh to

meet the challenges of economic globalization. Globalization trade and commerce all over

the world by creating a borderless market. With the development of hi-tech communication

media and rapid transportation facilities, the world has come closer. We can now learn in

an instant what is happening in the farthest corner of the world and travel to any country in

the shortest possible time. Countries of the world can even share their joy and sorrows like

next door neighbor. If one country is distress other can immediately come to its assistance.

If we could build up an atmosphere of mutual understanding and co-operation through this

globalization process, our world could certainly a better place to live in.

GLOBALIZATION: MEANING WHAT?


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1. No consensus regarding use of concept, and phenomena it is used to describe and/or

prescribe.

2. The removal of barriers to free trade and the closer integration of national

Economies..

But ... the way globalization has been managed, .. , need to be radically or

rethought(Stiglitz, Globalization & its Discontents 2002)

3. Worldwide interpenetration and interdependence of all sectorseconomic,political, social, cultural, and military (Barkat et.el 2002)

4. Globalization ... is perhaps the most profound source of international

transformation since the industrial revolution ... . The adjective global refers less

to a place than to a space defined by electronic flows and a state of mind (Kofi

Annan, 1997).

5. Encompasses diffusion of practices, values and technology that have aninfluence on peoples lives worldwide (Albrow 1997).

6. Shrinking planet phenomenon (Eastwood 2002).

7. Network society (Castells 1996).

8. A highly contested, complex, multidisciplinary discourse

Descriptive conceptdescribe global proliferation of cross-border flows oftrade, finance & information towards emergence of increasingly integrated global

economy.


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Prescriptive conceptcalls for liberalization or deregulation of nationalmarkets.

Effects of both are equated with

economic growth

increased personal income

improved living conditions

liberal democracy

9. Globaphiles (pro-globalization): it work for poor

Globaphobes (anti-globalization): (trade) is inherently bad for poor.

10. Supporters: Equate positively with openness, cosmopolitanism, integration.

Critics: Equate with Western imperialism, corporate domination, rampant

consumerism.

11. Globalization process involves:

costs

risks

challenges

conflict

potential benefits (WHO, Microeconomics & Health 2001)


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The positive impact of globalization:

Globalization can be explained as a major mean to increase the worldwide trade and

exchanges in an increasingly open, integrated, and borderless international economy. There

has been remarkable growth in trade and exchanges, due to globalization not only in

traditional international trade in goods and services, but also the different sector. like, exchanges of currencies

capital movements

technology transfer

people moving through international travel and migration

International flows of information and ideas.

One measure of the extent of globalization is the volume of international financialtransactions, with some $1.2 trillion flowing through New York currency markets each

day, and with the volume of daily international stock market transactions exceeding this

enormous amount.

Globalization has involved greater openness in the international economy, an integration of

markets on a worldwide basis, and a movement toward a borderless world, all of which

have led to increases in global flows. There are several sources of globalization over the

last several decades. Such as,

One such source has been technological advances that have significantly lowered thecosts of transportation and communication and dramatically lowered the costs of data

processing and information storage and retrieval.


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A second source of globalization has been trade liberalization and other forms of

economic liberalization that have led to reduce trade protection and to a more liberal

world trading system.

A third source of globalization has been changes in institutions, where organizations

have a wider reach, due, in part, to technological changes and to the more wide-ranging

horizons of their managers, who have been empowered by advances in communications.

A fourth reason for globalization has been the global agreement on ideology, with aconvergence of beliefs in the value of a market economy and a free trade system.

Friedman in his book The Lexus and the Olive Tree attributes the explosive growth of

free market globalization to three factors;

1. The democratization of technology,2. The democratization of finance, and3. The democratization of communications.

The fact these three elements of economic growth are more accessible to most people to

explain why today, as Friedman says it, free markets and free trade produce far greater

incomes for a society as a whole.

Now this opportunity is open to so many more people through changes in

technology,

finance, and

communications,

but also in a speed at which the business can be accomplished today provides huge

opportunities to many who were not previously part of the global economy. Friedman

reports that according to the U.S. Treasury, in the 1990s, $1.3 trillion in private funds

were invested in emerging market economies, compared to a mere $170 million in the

1970s. These private investments are one of the elements that account for the

unprecedented prosperity in the world as we enter the twenty-first century.


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Along the way, as Friedman explains the democratization of technology, he introduces

those of us outside of high tech circles to the concepts of digitalization and bandwidth. He

provides an understanding of what is happening with the Internet, from technological,business, and stewardship standpoints.

As Friedman puts it,

We are responsible for making God's presence manifest by

what we do. And the reason that this issue is most acute in cyberspace is because no one

else is in charge there.

Globalization has led to growing competition on a global basis. While some fear

competition, there are many beneficial effects of competition

That can increase production or efficiency.

Competition and the widening of markets can lead to specialization and thedivision of labor.

Specialization and the division of labor, with their implications for increases inproduction,

Now exist not just in a nation but also on a worldwide basis. Other beneficial effects

include the economies of scale and scope that can potentially lead to reductions in costs

and prices and are conducive to continuing economic growth. Other benefits from

globalization include the gains from trade in which both parties gain in a mutually

beneficial exchange, where the gainers are parties, this parties can be,

Individuals,

Firms and other organizations,

Nations,


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Trading blocs,

Continents or other entities.

Example, Recently the most impressive gain had been in the poverty reduction associated

with the opening up of China and India. Globalization had spurred economic growth and

industrial productivity, and had helped China come to grips with the countrys major

challenge: employment. In India, the message was more mixed. There had been winners

and losers. The lives of the educated and the rich had been enriched by globalization. The

information technology (IT) sector was a particular beneficiary.

The negative impact of globalization:

Globalization involves not only benefits, but also has costs or potential problems that some

critics see as great perils. These costs could lead to conflicts of various types, whether at

The regional,

National, or

International level.

One such cost or problem is that of who gains from itspotential benefits. There can be substantial equity

problems in the distribution of the gains from

globalization among individuals, organizations, nations,

and regions. Indeed, many of the gains have been going

to the rich nations or individuals, creating greater

inequalities and leading to potential conflicts nationally

and internationally.


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Here the example of Tanzania by Pallast can be brought again. WB and IMF claim their

role in Tanzania a success but the rise in poverty indicator since their involvement and the

amount of annual government spending to pay off the interest of the debt does not really

support their claims.

A second cost or problem stemming from globalization is that of major potentialregional or global instabilities stemming from the interdependencies of economies

on a worldwide basis. There is the possibility that local economic fluctuations or

crises in one nation could have regional or even global impacts. This is not just a

theoretical possibility as seen in the exchange rate and financial crisis in Asia,

starting in Thailand in 1998 and then spreading to other Southeast Asian economies

and even to South Korea. These linkages and potential instabilities imply greatpotential mutual vulnerability of interconnected economies.

A third type of problem stemming from globalization is that the control of nationaleconomies is seen by some as possibly shifting from sovereign governments to

other entities, including the most powerful nation states, multinational or global

firms, and international organizations. The result is that some perceive national

sovereignty as being undermined by the forces of globalization. Thus globalizationcould lead to a belief among national leaders that they are helplessly in the grip of

global forces and an attitude of disaffection among the electorate. The result could

be extreme nationalism and xenophobia, along with calls for protectionism and the

growth of extremist political movements, ultimately leading to potential conflicts.

The one issue that came to the forefront time and time again was employment and

livelihoods. While people largely favor more openness and interconnection between

societies, they are much less positive when asked about the impact on their jobs and

incomes.

For many, globalization was not delivering on its promises, and particularly not delivering

decent work.


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Workers can hardly trust the current model of globalization when

they see every day a growth of the informal economy, a decline in social protection and the

imposition of an authoritarian workplace culture, said a trade union leader.

But even in a country as successful as Costa Rica the participants in the dialogue felt that

the majority of citizens, regardless of their income level or social status, perceived more

threats than opportunities in globalization. Unstable global financial markets, in particular,

had had disastrous social consequences in many countries, due both to inadequate

government policies and to poor understanding of local conditions by the IMF and foreign

banks. The middle classes in Argentina and Uruguay had been hit particularly hard. In Asia

most participants of globalization sees it working selectively: beneficial for some countries

and people, but not for others. The most impressive gain had been in the poverty reduction

associated with the opening up of China and India. Yet some 1 billion people in the region

had hardly seen any reward. The process had to be managed to make it more inclusive.

Core Elements of Globalization:


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Basically, globalization rests on a tripod namely,

The expansion of markets(Economic),

Challenges to the state and institutions (political), and

The rise of new social and political movements (cultural).There are three main sectors where Globalization impacts occur. There are hues circles but

we discuss about the globalization impacts on economy because this is the sector where

relates the political and cultural sector.

Impact:

Bangladesh's economy grew rapidly during the 1990s as the country liberalized its marketsand became increasingly integrated into the world economy. Until the 2001 global

recession, Bangladesh ranked third for improvement of human development - behind only

Cape Verde and China - thanks in large part to exports from its blossoming garment

industry. Wahiduddin Mahmud, economist and former Minister of Finance and Planning

for Bangladesh, explains that despite these positive trends, the recession hit Bangladesh's

economy hard, and it seems unlikely that the country will soon regain the momentum it had

in the 1990s. The increasing competitiveness of the global garment industry, in particular,

threatens to undermine Bangladesh's growth. In addition to considering the overall

employment situation, the debate on globalization in Bangladesh has also focused on

manufacturing employment in particular. This has been inspired partly by high-profile

news stories about job losses in a number of large-scale import-substituting industries,

especially in the public sector. Mainly, however, the debate has been fuelled by the

findings of the Labour Force Surveys, which show that manufacturing employment has

declined in both relative and absolute terms in the 1990s. Thus, under the usual definition

of labor force of age 10 years and above, the number of workers engaged in manufacturing

seems to have declined dramatically from 7.0 million in 1989 to just 4.1 million in 1995-

96. This has raised concerns that globalization may be leading to de-industrialization in

Bangladesh, with all the deleterious consequences for poverty this implies. In addition, the

inflow of migrant worker remittances - one of the few saving graces during the economic


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slowdown - may also be in peril. These remittances rely strongly on the economic fortunes

and hospitality of host countries, some of which are now changing their policies and

attitudes towards guest workers.

"If Bangladesh is to become less vulnerable to the

economic fortunes of others," Mahmud concludes, "it will need to strengthen its domestic

economy, creating jobs and markets at home." YaleGlobal

Economically, technological changes and government deregulation have permitted the

establishment of transnational network in production, trade, and finance creating what is

referred to as a borderless world. The new production network describes firms and

multinational enterprises (MNEs) who use advanced means of communications and new

technologies to spread their activities across the globe.

Economic reform process has to be redesigned to boost industrialization. All stakeholders

specially the workers need to be involved in the decision making process.

Government should be fully committed to accelerate economic reforms that would lead to

faster economic growth and poverty alleviation. Necessary steps should also be taken to

maintain macroeconomic stability.


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Bangladesh Faces the Challenge of Globalization:

Reliance on exports and remittances exposes vulnerability:

DHAKA: Bangladesh faces the challenge of achieving accelerated economic growth and

alleviating the massive poverty that afflicts nearly two-fifths of its 135 million people. To

meet this challenge, market-oriented liberalizing policy reforms were initiated in the mid-

1980s and were pursued much more vigorously in the 1990s. These reforms were

particularly aimed at moving towards an open economic regime and integrating with the

global economy

While most low-income countries depend largely on the export of primary commodities,

Bangladesh has made the transition from being primarily a jute-exporting country to a

garment-exporting one.

While most low-income countries depend largely on the export of primary commodities,

Bangladesh has made the transition from being primarily a jute-exporting country to a

garment-exporting one. This transition has been dictated by the country's resource

endowment, characterized by extreme land scarcity and a very high population density,

making economic growth dependent on the export of labour-intensive manufactures.

It is not easy for a least developed Country like Bangladesh to specialize in manufactured

export

Although Bangladesh still does not rank among the most globally integrated developing

economies, the pace of integration has been quite rapid. Until hit by the global recession in

2001, there had been robust and sustained growth of export earnings, averaging about 15

percent per year in the 1990s. As a result, the ratio of export earnings to GDP had nearly

doubled to about 14 percent by the end of the decade. In 2001-02, however, export earnings


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declined in US dollar terms for the first time in nearly 15 years. Although there was a

recovery in the following year, the medium term outlook indicates that it will be difficult to

regain the export momentum of the 1990s.

The relatively strong growth of the Bangladeshi economy in the 1990s was underpinned by

the even stronger export growth. Unfortunately, the removal of the Multi-Fiber

Arrangements (MFA) quotas now threatens to increase competition in the global garment

industry and thus limit Bangladesh's growth. The strength of the industry depends on the

export quotas dictated by the MFA and preferential access in the major Western markets.

Moreover, other export industries are unlikely to take its place if the garment industry

shrinks; excluding the garment industry, the growth of the large-scale manufacturing

industries was a meager 4 percent annually in the 1990s.

It is not easy for a Least Developed Country (LDC) like Bangladesh to specialize in

manufactured exports. Having low wage costs can hardly compensate for its lack of

marketing skills and infrastructure and poor overall investment climate. Moreover, the high

degree of dependence of domestic industries on imported raw materials and industrial

inputs makes it difficult for Bangladesh to satisfy the so-called "rules of origin" in getting

preferential access for its exports in the markets of the developed countries. Thus, most of

Bangladesh's garment exports are not eligible for the tariff concessions given under the

Generalized System of Preferences (GSP) in the EU market. This problem has not received

adequate attention, since the other major players in textile trade among developing

countries are hardly affected by it.

Another issue of great importance to Bangladesh is that the free movement of temporary

workers across borders be expanded, for workers' remittances play an important role in its

economy. Indeed, a redeeming feature in the face of the export slowdown in Bangladesh is

the continued increase in the inflow of migrant workers' remittances, which grew from

about 2.5 percent of GDP in the beginning of the 1990s to above 5 percent in 2001-02

(amounting to about US$2.5 billion). Migrant workers are mostly unskilled or semi-skilled,

and most of them come from poor rural families, making their remitted savings an

important means for their families to escape poverty


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amount to nearly three-fourths of net export earnings. This paper will focus specifically on

the consequences of these two dimensions of globalization viz. trade openness and

workers remittances.

The paper is structured as follows. Section II provides an overview of growth and poverty

in Bangladesh in the last two decades and presents an analysis of the growth-poverty

nexus, i.e. the mechanisms through which growth impacted on poverty.

Trade to GDP:

Bangladeshs Experience

The trade sector has on an average grown only slightly faster than the growth of

the economy.

The overall growth of the economy and the social sector development indicators,particularly for the decade of 1990s, does not show any significant gains from the

liberalization process.

Poverty which was increasing till the early 1980s started to increase thereafter tillthe end of the decade.

The increase in the openness of the economy did not translate significantly into anyenhancement of growth and subsequent decline in poverty

Table 1. Annual average growth rates of the Bangladesh economy, 1980/81 to 1999/2000

Five-year average Decadal average Sector

1980/81-

1984/85

1985/86-

1988/89

1990/91-

1994/95

1995/96-


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199920/00

1980/81-

1989/90

1990/91-

1999/2000

GDP 3.72 3.74 4.40 5.21 3.73 4.81

Population 2.13 2.19 1.98 1.60 2.16 1.79

Per capita GDP 1.59 1.55 2.41 3.61 1.57 3.01

Source: Computed from BBS (2000, annex table 8) and BBS (2001a, annex table 8).

Faster growth of income was accompanied by some widening of income inequality, in both

urban and rural areas. Inequality had also widened in the earlier decade, but it did so much

more sharply in the 1990s. Thus, the Gini coefficient of consumption expenditure for urban

areas had gone up from 0.30 in 1983-84 to just 0.32 in 1991-92, but then rose sharply to

0.38 by 2000. Rural areas also experienced a similar trend. After remaining roughly

constant around 0.25 during the 1980s, the rural Gini rose steeply to 0.30 by 2000. Despite

the worsening of income distribution, however, poverty declined in the 1990s, and what is

more, it declined faster than in the preceding decade. In the 1980s, the extent of poverty

was virtually static from 52 per cent in 1983-84, the proportion of people in poverty fell

to just 50 per cent by 1991-92. But the rate of poverty reduction accelerated in the 1990s,

and by 2000 the proportion had fallen to 40 per cent. As in the case of growth, the

acceleration in the pace of poverty reduction was nowhere as spectacular as in much of

East and South-East Asia, but it did mark a significant improvement over the 1980s. Not

just the proportion of poor people, also the depth and severity of poverty declined faster in

the 1990s, indicating that even the poorest of the people enjoyed a slightly accelerated

rateof poverty reduction in this decade.

POVERTY & INEQUALITY FEATURES OF GLOBALIZATION

Rich countries with 14% worlds population command over 75% global GDP


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For every 1 $ generated through global exports in international trading system, low

income countries account for only 3 cents.

Export growth with highly exploitative employment practices

From Globalization to Poverty Reduction .

The whole process is predicated on increased efficiency arising out of theinternational competition.

Requires the poor to constantly seek to improve their skills and human capital.

Investment in Quality control and standards

This also requires a set of specific interventions by the Government.

Increasing competitiveness is at the heart of the whole process.

This requires

Competitiveness of the domestic enterprises in theglobal economy

Reasonably good investment climates in which firms canstartup, prosper and grow

Good governance

control of corruption,

well functioning bureaucracies and regulation,

contract enforcement,

protection of property rights .

Strong forward and backward linkages of markets within a country and globally e.g. transport and telecommunications infrastructure - not just for a good

investment climate but also for including the poor.


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Proper management of the process of reform including sequencing of reforms.Also requires social safety net policies to catch the marginalized

Because

the process by definition produces winners and losers the inability to protect the losers can not only increase the damage It can shatter national confidence and lead to a reversal towards

protectionism

Competing in the globalized world requires:

New institutions and processes.

A new culture of doing business

Increasingly sophisticated research requirements in order to stay competitive

Building awareness and consensus

Supportive Policy Environment

Theoretically

Globalization opens up markets andensures competition

Removes inefficiencies and leading togreater growth.

Ensures specialization takes place in areas of comparative advantage.

For labor abundant economies this meansincreased employment as well as growth.


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Growth of the globalizers is associated with certain other

characteristics

These include:

Flexibility of the exchange rate regimes and theability to exercise fiscal discipline

Investment in research and adaptation

Investment in skill enhancements

The ability to re-adjust economic structures tobring these in line with comparativeadvantage

Safety nets for those that are inevitablymarginalized in the short run by thisprocess.

Globalization has led to

A reduction in the number of poor people in certain parts of Asia, but not in otherparts of the world.

This lack of uniformity in the poverty reduction impact of globalization is tied tothe absence of the other characteristics

Three Important findings from international review of globalization:

Integration - not feasible without a wide range of domestic reforms coveringgovernance, the investment climate, and social service provision and international

action, which provided access to foreign markets, technology and aid

Inclusion varies both across countries and within. A number of countries (witharound 2 billion people) are in danger of becoming marginal to the world economy

over the past two decades.


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Homogenization popular fears at cultural and social level - despite the fact thatsocieties that are all fully integrated into the global economy differ enormously

International Experience with Globalization:

Examples of Successful integration Chinese provinces, Indian states, and thecountries of

Pakistan and Vietnam.

Looking at the number of poor people rather than average national poverty levels,we find that the number of people who live in poverty (defined as those who live on

less than $1 per day in terms of 1985 PPP) decreased significantly over the past two

decades, but most of this decrease occurred in China

Most important barriers to globalization:

institutional and jurisdictional discontinuities and the diversity of nationalinstitutional arrangements and not

Traditional border-type measures such as import tariffs, quantitative restrictions,and restrictions on the flow of foreign capital Elimination of these discontinuities,

especially those in the area of labor mobility can provide large benefits

Globalization creates pressures to increase public spending to:

upgrade the countries infrastructures

improve institutions

finance eventual costs of corrections in policies

compensate some of those most affected by rapid globalization and retrain some ofthem

replace the traditional primitive and inefficient system of social protection with aminimum, modern safety net


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Increased efficiency of resource use and reform of the tax systems to increase revenues to

finance this increased public spending are important preconditions

Why did Bangladeshs trade sector not grow significantly during the

1990s despite the liberalization?

Narrow range of export markets and export products;

Modest short-term demand responsiveness for major

Bangladesh export categories:

Small foreign direct investment in tradable sectors;

Anti-export bias in the trade policies of Bangladesh;

Inadequate infrastructure in certain potential growth sectors;

Absence of trade risk mitigation structure to support the entry of new exporters and

Inadequate development of non-traditional markets

As the Commerce Minister stated in this years Trade Policy Speech the inability to

develop an export culture characterizes a major impediment development of the right

market oriented attitudes is required

Things are looking up!

Exports have picked up in the last few years Grew by 54.4 percent at a compound rate of11.6 percent. Exports in 2004-05 were recorded at $14.1 billion and Projected to grow to

$17.0 billion in 2005-06

Gender perspective - important that trade policies, programs and mechanisms..

Promote sustainable human development


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Enhance social policies that protect the most vulnerable sectors

Promote economic and social advancement of women and men taking intoconsideration differences and special circumstances in countries needs, activities

and ability to compete

Recognize and develop processes that seek to overcome the special constraints thatwomen face in the economy and trade relations due to gender biases and gender

inequalities.

Direct Poverty Reduction will come from Increased employment The

Labour.

Content of Bangladeshs Trade:

Economic growth and poverty reductionare linked through employment and thereal wage rates.

A rising trend in wages is also likely toresult in better income distribution.

The World Trade Organization has formalized the global trading system

provided, in principle, a structuredframework for ensuring a level playing

And a mechanism for dispute resolution

Several WTO agreements have a directbearing on Bangladesh poverty reductionefforts .some examples are:

Rationalizing the Tariff Structure:


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Some Progress has been made but the focus for trade liberalization during the nextone to three years should be on reducing tariff dispersion, increasing transparency, making

indirect taxes trade neutral, and closing loopholes in exemptions

The Agreement on Agriculture provides significant opportunities for Protecting Food and

Livelihood Security and Rural Development Opportunities through the designation of

Special Products and Special Safeguard Mechanisms. Agriculture sectors played a vital

role to increase the economy by providing or manufacturing the foods and goods.

Why have they not been able to take advantage of Bangladeshs Agricultural potential in

Trade

Inadequate Research

Structural problems within Bangladesh's agri-food economy;

Barriers encountered in accessing export markets; and

Competition from other countries' exporters.

Implications for Pakistan of Abolishing the Textile and Clothing

Export:

the overall short run impact of MFA abolition will be positive on the textiles sectorand negative on clothing.

This will result from the improvements in efficiency of its resource allocation andin world market prices outweighing the loss of quota rents

Despite liberalization/WTO there are several challenges to increased

market access:

exceptionally high tariffs on the products of the export interests of the developingeconomies;


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tariff escalation impacting adversely the exports of value added products;

subsidies on agriculture sector,

indiscriminate use of anti-dumping and countervailing duties, etc.

The Biggest Constraint

Significant absence of capacity to analyze the emerging issues in WTO agreementsand the implications for Bangladesh.

The general knowledge of the Agreement and its provisions is high among officials,traders and non-governmental organizations.

However, detailed practical understanding of the Agreements and theconsequences, particularly for market access, is lacking.

Maximizing Gains from the WTO:

Very few institution in Bangladesh where different stake holders can interact on theWTO issues

Most of the positions taken on WTO issues in

Bangladesh lacks an empirical research basis and are most often based on assumptions.

A clear policy perspective emerging through consultations is necessary before thecountry commits itself to any position at the international level.And before it does

any of the above

Bangladesh needs to improve its competitiveness situation

Bangladesh should:

Set out a clear national competitiveness strategy

Improve the general business climate


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Upgrade Bangladeshs technological capacity

Promote skills development

Reduce anti-export biasChallenge of Globalization in private Sector:

To face the challenges of globalization, cooperation between the public and private sectors

are essential. Bangladesh lacks an institutional framework to foster meaningful cooperation

between the two. There is no system of regular consultation between government and

representatives from the private sectors. Bangladesh needs to establish institutional

mechanisms for building co-operative relations between the government and private

sectors.

Ways Ahead For Bangladesh:

In this age of information revolution, Bangladesh cannot remain static in the race to catch

up with the fast moving diverse modes of global change. She has to be ready with

multifaceted means to follow multifaceted tracks of growth for the well being of her

people. She has to chart a policy destiny and strategic course of action to confront the

complex and multidimensional problems of globalization. Following are the areas, which

Bangladesh must pursue to exploit the benefits of globalization.

Final comment:

Globalization has a very far-reaching effect on almost every sphere of life. In the question

of economic development and growth it is even more being in this era of globalization.


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Developing country like Bangladesh must take the advantages of globalization and attempt

to improve her economy. Friedmans concept of golden straitjacket can work as a good

start point in this wise effort. Bangladeshs potentials to economic globalization is highly

promising. I believe that the recommendation made in this paper if implemented well will

take Bangladesh to a point of sustained economic growth and development.

globalization trade and commerce allover the world by creating a border less market

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