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close this bookDeveloping the non-farm Sector in Bangladesh: Lessons from other Asian Countries (WB, 1996, 116 p.)
View the document(introduction...)
View the documentForeword
View the documentAbstract
View the documentAcknowledgements
View the documentSummary
View the documentImperatives and models
View the documentMacroeconomic trends in Bangladesh
close this folderWhat drives growth?
View the document(introduction...)
View the documentGross domestic savings (GDS) (as a percentage of GDP).
View the documentGross domestic investment
View the documentForeign direct investment
View the documentPublic finances
View the documentHuman capital
View the documentHealth
View the documentMessage from indicators
close this folderPattern of development
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View the documentHow does Bangladesh compare?
View the documentDevising a strategy for agricultural intensification
View the documentChoosing appropriate technologies
close this folderOther lessons from comparative experience
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View the documentLesson 1: Take advantage of location
View the documentLesson 2: Promote exports
View the documentLesson 3: Develop infrastructure
View the documentLesson 4: Encourage local government entrepreneurship
View the documentLesson 5: Preparing for industrialization
close this folderRural industry in Bangladesh
View the document(introduction...)
View the documentRural infrastructure
View the documentMechanical and biochemical technology
View the documentNeighborhood effects
close this folderRural industry and export-led growth
View the document(introduction...)
View the documentPossibilities for foreign investment
View the documentDomestic hardles
View the documentFinancing of new enterprises
View the documentNiche exporting
View the documentGrowth poles
View the documentConcluding observations
View the documentTables and chards
View the documentBibliography

Lesson 2: Promote exports

Given Bangladesh's economic characteristics and resource poverty it must receive a substantial boost from exports of manufactures and processed agricultural commodities to attain rapid growth. The importance of exports to East Asian countries is unequivocal. In Taiwan (China), Thailand, the Philippines, and China rural industries have been in the forefront of the export push. The spread effects from this push have been critical for improving rural welfare. Thus, once rural industry has made a strong start, an export orientation can make a vital contribution (Rants and Stewart 1993). China provides an excellent example of the export potential of rural enterprises especially those that have been primed by foreign direct investment. By 1994, there were some 25 million rural manufacturing enterprises, employing over 120 million workers and responsible for a third of rural production as well as nearly half of all manufacturing output. Rural enterprises, primarily the 10,000 that have been the recipients of foreign investment, account for 40% of total exports in 1994. Rural manufacturers active in the export market produce a broad spectrum of products but they dominate the trade in woven textiles, garments, silk products, handicrafts and other light manufactures (Yen Shanping, 1995, Oxford Analytica, August 30, 1995).