The formal go-ahead given to works on ten economic zones (EZs) in the country augurs well for attracting and promoting private investments, particularly those from the overseas. Here the presence of a good number of intending investors in such EZs at last Sunday’s formal launching of their works by Prime Minister Sheikh Hasina gives a positive signal. Such investors are certainly convinced of the potential of these EZs, after having done their homework before applying for approval of their investment proposals. Prime Minister Sheikh Hasina did rightly give proper and timely guidelines to them, particularly for involving local people, to the widest possible extent, while building their economic zones. All concerned would now like to see the completion of works for operationalisation of EZs and start of investment activities there as early as possible. The vision of the government on the economic zones is forthright and clear. With the investors acting upon their proposals at a faster pace in a congenial and eco-friendly environment, as has been highlighted by the prime minister, the country is expected to see a surge in investment activities in the private sector in the days ahead. Surely, ‘well-planned’ and ‘well-coordinated’ action plans will be needed for the purpose. A great deal of responsibilities now devolves upon the authorities concerned to develop the EZs without any foot-dragging. They have to ensure that the people are not unnecessarily displaced from their homes and cultivable lands. Likewise, there has to be a proper focus on environment-related issues while setting up mills and factories in the zones. Both the authorities concerned and the potential investors would be required to remain alert so that ‘industrial wastes’ are not dumped in rivers or farmlands. In this context, the prime minister has rightly laid emphasis on putting effluent treatment plants in place in the EZs. Admittedly, the EZs, as part of an essentially cluster-based approach to a dynamic industrial strategy, have been working well in many developing economies including those in South Asia and South East Asia. Given the right kind of policy support backed by a strong political will, there is no reason for being sceptical about sustainable economic benefits of such zones for Bangladesh. The EZs are now being built in the country as part of the government’s plan to set up a total of 100 of those for creating greater opportunities for investment, employment and industrialisation. Potential of various regions of the country merits a proper evaluation for effective implementation of this plan in phases. Encouragement of labour-intensive industries also deserves a priority attention, considering the situation about the country’s resource endowment. On its part, the government has set up the Bangladesh Economic Zones Authority (BEZA) as the regulatory body to see that the EZs are selected in areas having good communication facilities, along with provision for water reservoir and rainwater preservation system. The BEZA will have to work mainly as a facilitator and not as a muscle-flexing or problem-creating regulator, operating through a maze of rules and procedures. It should take care that investors do not feel frustrated by absence of facilities that are assured to them and their time and energy are not wasted on handling a complex web of regulations. The Bangladesh economy badly needs private sector investment to attain the status of a higher middle income country by 2021. The EZs should be considered conduits for attracting investors.
