Special economic zone
Bangladesh has had a good record in a number of macroeconomic indicators, but alas, when it comes to attracting large-scale investment, its record is wretched. So far, Bangladesh has been experimenting with Export Processing Zones for quite some time to attract investment. The county has had some success in attracting small-scale investments, mainly in the textile sector. The largest investment has been the construction of the fertiliser factory on the banks of the river Karnaphuli. Other than that, no other company made any significant investment. Recently, some large international companies have shown keen interest to invest in Bangladesh, but an apathetic attitude by the government has discouraged a number of those investors. Something needs to be done to encourage large-scale investment in Bangladesh, and the only way to do so seems to be the establishment of a Special Economic Zone (SEZ) in Bangladesh. Large-scale investment can help in employing a large number of people, establish ancillary industries, increase economic growth and provide new technology to Bangladesh.
A number of countries have been very successful in setting up SEZs to attract investment. China first set up an SEZ in the city of Shenzen and that helped to bring in a huge amount of foreign investment to that region. Our government can jumpstart foreign investment by setting up an SEZ in the south-eastern part of the country, preferably in the region that is encompassed by the towns Munshiganj, Jessore, Khulna and Madaripur. This quadrilateral region can be developed to attract foreign investment to Bangladesh. Why is this region suitable for an SEZ? First of all, the south-eastern part of Bangladesh is not as developed as Dhaka or Chittagong. A SEZ can help to spur economic activity in that region. Secondly, the seaport of Mongla and Jessore Airport are nearby and their facilities can be used to serve the SEZ. After the construction of the Padma Bridge, the region will be well-connected with Dhaka. These factors make that region suitable for an SEZ.
The government should draw up a master plan to develop this quadrilateral region. It can buy that region and then set up industrial plots there. It can expand Jessore Airport and Mongla Seaport to better handle the export and import of goods. Mongla can be privatised to increase dynamism in that seaport. A model town can be developed in that region to accommodate the workers. An eight-lane highway, like the new Airport Road in Dhaka, can be constructed to connect the SEZ with Dhaka. A technical college and a university can be located in that region to provide skilled workforce to the industries in the SEZ. A power plant can be set up to exclusively serve the SEZ. There should also be high-speed internet access in that region. All these facilities, including proper security, is bound to attract investment to this SEZ.
The government can organise fairs and seminars both at home and abroad to attract investment in that area. Tax breaks and other incentives can be given to both local and foreign investors. Bangladeshi missions abroad should be used to advertise the region. All these developments should make the SEZ very attractive for foreign investment and this can help Bangladesh attract large-scale foreign investment.
Countries around Bangladesh are well-ahead in attracting large-scale investment. Thailand is known as the “Detroit of the East” because of its vibrant automobile industry.
I would request the caretaker government to look into the matter and take appropriate steps to set up an SEZ immediately in Bangladesh.
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