The fate of the much-hyped ‘Garment Village’ project at Gajaria in Munshiganj, by all indications, is sealed for now. The reason behind the move falling through is high prices of land. The Chinese company that had signed a memorandum of understanding (MoU) in June, 2014 for building the village at an estimated cost of $1.2 billion, as reported in this paper late last week, has lately been showing all signs of backing out from the project. There was much foot-dragging on initiating its works and subsequently a feasibility study was commissioned. The study has reportedly found that the project is not financially feasible because of high prices of land at its proposed site. Moreover, the apparel unit owners have also expressed their unwillingness to buy land at prices higher than the running one in the market. Thus, the official initiative to set up an industrial park having all the necessary facilities exclusively for the export-oriented garment factories is facing a premature death. Now officials concerned are hoping to accommodate the apparel units in the economic zones (EZs) that the government plans to set up across the country. However, the execution of the EZs might also face a daunting challenge because of land scarcity and its high prices. Land is the scarcest resource in this country and the people do not transfer the same unless situation compels them to do so. Under such circumstances, the land prices – and that too in areas near the capital city – have shot up to a prohibitive level. The move to get all the garment units in and around Dhaka in one place was a great idea, for the factories would have then got all the utility and other services, effluent plants, accommodation for workers, factory sheds etc., ready and without any trouble. From the management perspective, the ‘Garment Village’ concept would have also made things rather easier for the government. Keeping constant watch over 4,500 garment units, located sporadically in Dhaka and its adjoining areas and in Chittagong, remains a tough job particularly during any restive situation. The proposed ‘Garment Village’ would have solved this problem to a great extent. Meanwhile, the scarcity of land and its high prices are driving away many prospective investors, both local and foreign. There are, of course, other shortcomings. But the land issue has emerged as the number one. This is obviously so in a country where the land-man ratio is the lowest in the world—0.06 hectare per person, according to 2013 FAO estimate. Here the problem is that the country did never have appropriate land administration, land use plan and land management policies in place. There have been enough of talks about improving the situation. But because of the built-in systemic deficiencies and widespread corruption, no notable progress has yet been made to this end. Notwithstanding this, the government cannot give up efforts and remain a mute spectator to an otherwise lacklustre investment situation in the private sector, largely because of scarcity of land. Investors would not certainly go to all the places the government would select for building industries or economic zones. They would do their own arithmetic, prior to choosing locations for putting in their money. Land is a basic factor of production and the policymakers would be required to take all possible and also feasible steps to facilitate the entrepreneurs getting it at an affordable cost.
