Globalization and its impact On Bangladesh

Introduction

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?

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.
4.

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

trade, finance & information towards emergence of increasingly integrated global economy.

Prescriptive conceptcalls for liberalization or deregulation of national

markets. 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)

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 financial transactions, 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 the
costs of transportation and communication and dramatically lowered the costs of data processing and information storage and retrieval.

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 a
convergence 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. 2. 3.

The democratization of technology, The democratization of finance, and 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.

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 division of labor. and the

Specialization and the division of labor, with their implications for

production,

increases in

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,

 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 its
potential 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.

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 potential

regional 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 great potential mutual vulnerability of interconnected economies.

A third type of problem stemming from globalization is that the control of national
economies 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 globalization could 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.

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:

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
relates the political and cultural sector.

).

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

Impact:
Bangladesh's economy grew rapidly during the 1990s as the country liberalized its markets and 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 199596. 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

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.

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 mid1980s 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

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

In the wake of the 2001 global recession, Bangladesh's reliance on foreign countries as a market for exports and as a source of remittances has become obvious. If Bangladesh is to become less vulnerable to the economic fortunes of others, it will need to strengthen its domestic economy, creating jobs and markets at home. A strong domestic sector and an improved overall investment environment will provide a more stable source of income like what the garment industry has provided so far - and will rekindle and sustain Bangladesh's economic growth.

Globalization and its Impact on Poverty in Bangladesh:

Introduction:
The contemporary global debate on globalization and its multi-pronged impact has had a strong echo in the academic and political discussions in Bangladesh as well. After a hesitant start in the mid-1980s, Bangladesh moved decisively to embrace the wave of globalization in the 1990s. Ever since, the impact of globalization on the economy of Bangladesh and, more pointedly, on the lives of its people, has become a hotly debated issue. This paper attempts to take a fresh look at the impact of globalization on the evolving poverty situation in Bangladesh, and to draw some policy conclusions. For the purposes of present analysis, globalization is viewed purely in its economic dimensions defined as increasing integration of a national economy with the world economy through exchange of goods and services, capital flows, technology, information, and labor migration. Not all of these exchanges, however, figure equally prominently in the case of Bangladesh. The least advance has been made in respect of capital flow. By the year 2000, foreign direct investment (FDI) amounted to just 0.4 per cent of gross domestic product (GDP), which was low even by the standards of low-income countries (average 0.9 per cent). But significant advances have been made in some of the other spheres especially, exchange of commodities and labor. Aided by trade liberalization and export incentives of various kinds, the economy has become much more open in the last decade or so. During the 1980s, the shares of both imports and exports in GDP had remained virtually stagnant. By contrast, between 1989-90 and 1999-2000, the share of imports in GDP went up from 13.5 per cent to 20.0 per cent, and the share of exports went up from 5.7 per cent to nearly 13.4 per cent. The flow of labor migration and the concomitant inflow of migrants remittances have also gathered pace. The foreign exchange earnings from remittances now

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 till the end of the decade.

The increase in the openness of the economy did not translate significantly into any
enhancement 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 1980/811984/85 1985/861988/89 1990/911994/95 1995/96-

199920/00 1980/811989/90 1990/911999/2000 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

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 the

international 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 the global 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.

 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 and ensures competition Removes inefficiencies and leading to greater growth. Ensures specialization takes place in areas of comparative advantage. For labor abundant economies this means increased employment as well as growth.

Growth of the globalizers is associated with certain other characteristics These include:

Flexibility of the exchange rate regimes and the ability to exercise fiscal discipline Investment in research and adaptation Investment in skill enhancements The ability to re-adjust economic structures to bring these in line with comparative
advantage

Safety nets for those that are inevitably marginalized in the short run by this process.

Globalization has led to

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

This lack of uniformity in the poverty reduction impact of globalization is tied to

the absence of the other characteristics

Three Important findings from international review of globalization:

Integration - not feasible without a wide range of domestic reforms covering

governance, 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 (with around 2 billion people) are in danger of becoming marginal to the world economy over the past two decades.

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

International Experience with Globalization:

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

countries 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 national

institutional 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 of them

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

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 of 11.6 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

 Enhance social policies that protect the most vulnerable sectors Promote
economic and social advancement of women and men taking into consideration differences and special circumstances in countries needs, activities and ability to compete

Recognize and develop processes that seek to overcome the special constraints that
women 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 the
real wage rates.

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

The World Trade Organization has

formalized the global trading system provided, in principle, a structured framework for ensuring a level playing And a mechanism for dispute resolution

Several WTO agreements have a direct bearing on Bangladesh poverty reduction

efforts .some examples are:

Rationalizing the Tariff Structure:

 Some Progress has been made but the focus for trade liberalization during the next
one 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 sector
and negative on clothing.

This will result from the improvements in efficiency of its resource allocation and
in 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 developing
economies;

 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 agreements

and 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 the

consequences, particularly for market access, is lacking.

Maximizing Gains from the WTO:

Very few institution in Bangladesh where different stake holders can interact on the
WTO 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 the

country 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

 Upgrade Bangladeshs technological capacity

Promote skills development Reduce anti-export bias

Challenge 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.

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.