A HUGE number in Bangladesh's workforce are currently unemployed or suffer from disguised unemployment. Therefore, it is imperative that governments in Bangladesh realise the supreme importance of addressing effectively the problem of unemployment. Government can do much to ease the pangs of unemployment by adopting right fiscal and monetary policies that would encourage greater investments in the economy. Generally, it is understood that more the investments, the greater the establishment of various types of enterprises, infrastructures and services to create employment opportunities. Insufficient investments have been frustrating the creation of new employment opportunities in Bangladesh. Therefore, government here needs to identify each of the factors that can contribute to a better investment climate.
The same would include improvement of law and order, much lowering the interest rate on borrowings, addition to and upgradation of infrastructures, fiscal policies that create level playing fields for local entrepreneurs in relation to foreign competitors, fiscal incentives such as tax reduction and tax exemption, etc. Government will need to act imaginatively and effectively in relation to each of the above factors and more to improve, overall, the investment climate in the country that in turn would accelerate economic activities and make the desired impact on the unemployment situation.
However, there is also a need to be clear about the policies to be pursued to create employment. New enterprises will absorb the unemployed. But capital intensive enterprises will employ a smaller number than labour intensive ones which will understandably employ a gareater number. Thus, enterprise with labour intensive character should be encouraged. New enterprises to produce horticultural products for export can be labour intensive. A natural silk-based industry depending on production of raw silk in rural areas can be similarly labour intensive. Small and cottage industries in different sectors can be also labour intensive in nature and directly contribute to creating employment among the preponderant poor population of the country at the grassroots of existence in the rural areas. Thus, more funding and institutional supports for such small and cottage industries should be made available. Government can make a big contribution toward reducing unemployment by also building and operating a large number of training institutions to train the jobless ones in different vocations for them to be fit enough to take up employment in the country, to go abroad with jobs or to engage in self-employment.
Attraction of more foreign direct investment can be another way of creation of employment opportunity. Efforts are, of course, on to do so. But frustrating law and order situation and inefficacious diplomacy are acting as impediments in the way of attracting foreign investment. In view of this, improvement of law and order and bringing about efficacious diplomacy are essential factors to ensure. Government needs to concentrate on these points in right earnest.
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