A Study to Identify Required Policy Support to Enhance Export Competitiveness of Major Bangladesh Export Goods (RMG, Textiles, Pharmaceuticals, Footwear and Leather)

The assignment involved conducting policy research to identify the policy support required to strengthen the international competitiveness of Bangladesh’s major export sectors, including ready-made garments (RMG), textiles, pharmaceuticals, footwear, and leather goods. The study assessed the capacity of these sectors to respond to increasing international competition, particularly in the context of Bangladesh’s Least Developed Country (LDC) status and the gradual changes in preferential market access, concessional trade terms, and other international trade-related benefits. The research examined existing trade support measures, their impact on national development and sectoral performance, and the policy, institutional, and capacity-building interventions needed to sustain and expand Bangladesh’s export competitiveness.

Scope of Services Provided
1. Assessment of Existing and Potential Export Sectors

Assessed Bangladesh’s leading export sectors and identified sectors with potential for further export expansion. The study focused on ready-made garments, textiles, pharmaceuticals, footwear, and leather goods, examining their competitiveness and capacity to respond to evolving international market conditions.

2. Review of International Trade Support Measures

Identified international support measures available to Bangladesh as an LDC, including existing and anticipated benefits over the following five to six years. Examined the utilization and impact of trade-related benefits on national economic development and the performance of the selected export sectors.

3. Analysis of Trade-Related Procedures and Future Support

Analyzed the technical and legal processes required for Bangladesh to access and benefit from international trade support measures. Assessed the country’s experience in meeting the relevant requirements and examined the expected continuation of such support over the subsequent five to six years.

4. Review of Sectoral Development Initiatives and Policies

Reviewed development initiatives, policies, and programmes undertaken by leading entrepreneurs in the selected export sectors. Identified weaknesses in national and sector-specific policies that could constrain the ability of Bangladeshi businesses to improve productivity, meet international requirements, and strengthen their competitiveness in global markets.

5. Identification of Policy Support Requirements

Identified areas where policy improvements and targeted support were needed to help major export sectors adapt to changing international trade conditions. Considered the implications of reduced or changing preferential trade benefits for Bangladesh’s export-oriented industries and the measures required to maintain their competitiveness.

6. Assessment of Business Support Organizations

Identified business support organizations requiring capacity-building assistance to improve their ability to serve the business community effectively. Examined institutional capacity needs and areas for strengthening organizational capabilities to support enterprises operating in an increasingly competitive international economy.

Key Deliverable
A policy research report identifying the policy, institutional, and capacity-building support required to enhance the export competitiveness of Bangladesh’s major export sectors. The report assessed international trade-related benefits, their utilization and impact, sectoral policy weaknesses, future trade challenges, and capacity-building needs of business support organizations.

Assignment Details
Client: Bangladesh Trade Support Programme (BTSP), jointly implemented by the European Commission and the Ministry of Commerce (MoC), Government of Bangladesh
Project Location: Dhaka and six other cities in Bangladesh
Client Address: Dhaka, Bangladesh
Approximate Contract Value: Not provided
Assignment Duration: 3 months
Start Date: June 2009
Completion Date: September 2009
Total Staff-Months: 4
Associated Consultants: N/A
Senior Professional Staff Involved
Name
Designation / Function
Mr. M. Zakir Hossain
Team Leader
Mr. Alim Haider
Researcher