Dwindling export of tea
Tea exports have decreased over the years as rising prices and low
production rates have seen international buyers turning to Vietnam and Malaysia
as preferable sourcing options. Once a
major foreign currency earner, the tea industry is suffering deeply as deficits
in production has resulted in the country importing supplies to match
demand. To revive the industry, the
Bangladesh Tea Board is investing in new tea gardens in several locations
throughout the country.
While this is good news for the country’s trade, it is also a very
critical time for the nation’s workers. With the recent Savar tragedy, there is
greater scrutiny of worker rights and workplace safety. The tea industry
currently suffers from problems such as shortage of labor and lack of training
in tea related issues. If the tea
industry wants to create a sustainable industry, these new expansion plans,
still in its early stages offer a good opportunity to ensure that regulations
are strictly applied and hazardous practices avoided before the industry
expands further. Workers’ welfare must be a key priority, as Bangladesh cannot
afford to suffer from accusations of negligence in yet another sector of the
export economy.
Green Banking and the New Bangladesh
The banking industry in Bangladesh has taken a step towards sustainable
development with the initial implementation of the Bangladesh Bank’s Green
Banking guidelines. A fund has been created to help finance business ideas that
specially focus on renewable sources of energy or efforts to develop
environmental friendly practices. So far the response has been very positive
with several banks dedicating significant funds for what is both a socially
responsible and profitable cause.
If Bangladesh is to become a middle income country in the near future,
this is the right way to go about it. By encouraging environmental friendly
practices and offering special concessions to those who abide by them, BB is
not only creating awareness but backing it up with financial incentives. However, to ensure success in the long run,
the cooperation of all banks is essential, as they are the main medium though
which borrowers have access to funds. While the initiative is positive, it is perhaps
still too highly focused on large scale project loans, whereas the future of
the country likely lies with SMEs. Moreover, there seems to be insufficient understanding
on exactly what the banks are likely to gain from this initiative other than
goodwill. This may hamper the sustainability of the initiative, as the
initiative must not only be socially desirable but also profitable.
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