Unpopular decisions are best made shortly after democratic governments come to power. It doesn’t always work that way. The long-standing social imbalances were so lop-sided, the government had to take a call in priorities. A functional city was lower in the pecking order and though there was reluctance of the government to hand over the utility departments, the new Mayors have Dhaka are progressing as best they can. While the illegal occupation of roads and terminals have been met head-on by Annisul Huq and Syed Khokon, the government appears to have finally intervened in a major but controversial area — businesses in residential areas. Hotels and guest-houses in the posh areas of Gulshan, Banani and Dhanmondi have been asked to relocate in a major cabinet decision. Predictably proprieters are not amused. Pointing to employment of nearly 100,000 and major investments in property and refurbishment, they have asked for a reconsideration. That will no doubt be followed by strikes and rallies and end at a time-extension. What has emerged is a bigger issue; Rajdhani Unnayan Kartipakkha’s (Rajuk’s) approval of such accommodation. It resonates with the foolhardy decision to allow commercialisation of the three residential areas without any of the facilities such as parking being available or demanded. In a way, the six hundred and eighteen factories shut and another 319, on the verge of closing down, are also grim statistics. As explained by the Bangladesh Garments Manufacturers’ and Exporters’ Association (BGMEA) these are essentially because they can’t compete internationally. And the usual culprits are infrastructure, high bank interest rate and taxation on machinery imports. Though details on employment losses or the nature of the factory operations aren’t known the statement suggests, the BGMEA is calling out for help. Targeted growth figures of exports are 10 per cent per annum but achieved figures are down in the last two years and 3.0 per cent down in the current fiscal year (FY). What hasn’t been said but often privately admitted is that many factories have come up against a solid wall in attempting to fulfil their side of factory safety. Difficulties in relocation and balancing the cost haven’t been easy, nor has it to face up to factory inspections. The industry has synthesised its backward linkage and this has had its impact on smaller linkage concerns. That what was previously sub-contracting is no longer attractive given that buyers want to see evidence of capacity. Until recently the industry was upbeat in taking up the challenge to bring in $ 30 billion from exports. Now the second largest exporting industry in the world isn’t too sure. The BGMEA went on record recently to say it could not support members whose operations did not comply with the new agreed safety requirements. Whether the near-thousand shut or to be closed factories fall within this gamut or other considerations it’s not news that can be met with good cheer. The days of small units tucked into non-description buildings are over. With clout comes responsibility not just from an inner sense of goodwill but also in terms of how companies are perceived. Synthesis has to happen and there will be collateral damage.
