Lecture-07:

Regional Policy: The National Interest

and Regional Objective (Perspective

Plan of Bangladesh)

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March 02, 2015

URP 4223: Urban and Regional Economics

Course Teacher: Md. Esraz-Ul-ZannatAssistant ProfessorDept. of URP, KUET

ACKNOWLEDGEMENT

These slides are aggregations for better understanding of the topic

mentioned in the previous slide . I acknowledge the contribution of

all the authors and photographers from where I tried to

accumulate the info and used for better presentation.

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REGIONAL POLICY:THE NATIONAL INTERESTS AND REGIONAL

OBJECTIVES

FROM PERSPECTIVE PLAN OF BANGLADESH

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TOPICS TO BE COVERED BY THIS PRESENTATION

National Interests - Basic Issues and Economic Interests

Regional Policy

Perspective Plan of Bangladesh 2010-2021: making vision2021 A reality

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Think of your own life – what are the things in your life(what do you do) that are in your BEST interest (that aregood for you?)

We are motivated to action by what is best for us

Just like there are things that are best for people’sindividual lives, there are things that are best for nations.These are called National Interests

The national interest is primarily country's goals andaspirations whether economic (Economic/Money), military(Security/Safety), or cultural (Values/Beliefs)

National interests commonly include:

Self preservation (primary duty of any government)

Independence (Sovereignty)

Economic well-being

Military security

NATIONAL INTERESTS

A country’s national interests change over time

Each country has its own national interests, but allcountries have common SECURITY, ECONOMIC, andIDEOLOGICAL interests

Citizens can disagree on what are a country’s nationalinterests

A country’s leaders are ultimately responsible for definingthe national interests

A country’s national interest determine its Foreign Policy

BASIC ISSUES

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Promote the economic welfare of a country’s people

Broad economic interests shared by all nations:

Provide citizens with an adequate standard of living

Ensure economic development and growth

Establish trade relations with other nations

ECONOMIC INTERESTS

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REGIONAL POLICY

~ policy with the aim of improving the economic well-being of a particular regions and also toavoid regional disparities.

Regional policy is an investment policy. It supports jobcreation, competitiveness, economic growth, improvedquality of life and sustainable development.

Regional problems have differentiated nature

More nuanced view of the regional problem in manycountries: both global/national perspective and “close-upview”; tailoring of regional policy to specific regionalneeds.

Since 1971 there has been political instability which hindersthe development of the Bangladeshi national economy.

Inflation remains low and is under control

In 1998 floods devastated Bangladesh and they made astrong economic recover and the annual growth rate wentfrom 5% to 6% which may continue.

Bangladesh is still a developing country because More imports than exports

Substantially below average GDP / capita

More individuals working in the primary sector

High birth rate and high population growth

Extremely high population density

Majority of people in the active class with just a few in the

sedentary class

Poor infrastructure

Little natural resources

PERSPECTIVES

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Perspective Plan of Bangladesh 2010-2021: making vision2021 A reality

National interests and regional policies are majorly withinthe this plan up to 2021. A lot of national and regionalpolicies and proposals also supports simultaneously. Someof are as follows: National Agriculture 2009

National Water Policy

National Transport policy

New Agricultural Extension Policy

National Food Policy

Land Policy & National Land use policy

Coastal policy

Hill tract region Development policy

Many more……..

LONG TERM PERSPECTIVES

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The overarching vision of the Perspective Plan issuccessful national development. That encompasses allaspects of economic, social, cultural, political, and otherareas of development so that a high quality of life of allcitizens can be ensured. The vision embodies a shared viewof all citizens and a dream supported by will and action totransform it into reality.

Sixth (2011 to 2015 and seventh Five year Plan (2016 to2021) will be followed by the perspective plan.

VISION OF THE PLAN

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Economic growth and corruption free good governance(Institutional foundations of stability and prosperity)

Vision 2021 places strong emphasis on establishing alegacy of good governance by focusing on threefundamental principles of governance: ensuring the rule of law, avoiding political partisanship, and building a society free from corruption.

Towards middle income economy (towards a prudentmacroeconomic policy framework for growth and stability)and Promoting human development GDP growth rate to rise to 8.0 per cent by 2015, and further to

10.0 per cent by 2021, significantly improving living standards of the population by drastically reducing unemployment and poverty, riding on substantially higher output and export growth, while maintaining macroeconomic stability

INSIDE THE PLAN

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Strategy for food security: agriculture and ruraldevelopment Self-sufficiency in food: 2012

Ensuring food security: 2017(a+a+n)

Middle Income Country: 2022

*(a+a+n=Availability, accessibility and nutrition)

Water Resources Management

Energy security for development and welfare

Towards a digital Bangladesh by 2021

Transport and communication for the future

Addressing the urban challenge

Addressing challenge of poverty eradication

Environmentally sustainable development

INSIDE THE PLAN

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Promoting industrialization and trade policy regime Plan target of reaching 10 percent annual GDP growth by 2021

is premised on a prolific and competitive manufacturing sectorgrowing at or near double digits during the 2010-21 decade

Broad industrial sector will continue to account for a much largershare of GDP, approaching 37% by 2021, compensating for thesecular decline in the share of agricultural sector, which falls to15%.

In order to get the maximum leverage out of manufacturing sectorand its competitiveness in the global marketplace, the governmentwill focus on four strategic approaches: (a) export diversification, involving product and market diversification; (b) seizing opportunities in export markets created by eroding

competitiveness of Chinain low cost labor intensive products; (c) restructuring export production by seizing opportunities from

globalized production chains and forging intra-industry linkages in aglobalized economy; and

(d) working on market access issues in multilateral, bilateral andregional fora

INSIDE THE PLAN

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Policy Regime: Trade policy regime is the backbone of ahigh-performing manufacturing sector. Over the next decade, trade openness will deepen further so that

only those manufacturing enterprises that remain globallycompetitive are expected to survive and prosper.

To that end, Bangladesh will need, among other things, to reduceaverage tariffs to levels already reached by countries such asVietnam, Malaysia, India and China. This has to happen ideally bythe close of the Sixth Plan in 2015, well before 2021.

INSIDE THE PLAN

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Globalization and regional cooperation challenges(Opportunities from globalization and regionalcooperation)

Regional cooperation: In recent years, proposals for sub-regionalcooperation between Bangladesh, India, Nepal and Bhutan havebeen gaining ground. Bangladesh, India, Nepal, Bhutan andMyanmar are endowed with rich complementary resources that offersignificant opportunities for cooperation in several sectors. Long-term strategies for strengthening regional cooperation include (a) more vigorous efforts in multiple forums to make SAFTA,

APTA and BIMSTEC more effective organizations, (b) forging effective cooperation in trade, cross-border investment

and all the other areas of mutually beneficial activities, (c) initiatives to resolve cross-border issues and undertake joint

projects, such as production and distribution of electricity, gas,coal, fertilizer and other products, all on a win-win basis, and

(d) participation in the grand Asian Highway and Asian RailwaySystems that generate win-win outcomes.

INSIDE THE PLAN

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Opportunities from Globalization: Globalization presents opportunities as well as challenges for

Bangladesh. What is clear is that missed opportunities in an age ofglobalization could be costly.

Besides strengthening our balance of payments position,remittance inflows have had significant impact on povertyreduction. Remittance inflows in 2011, at $11.5 billion, were about10 per cent of GDP

INSIDE THE PLAN

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WHAT WE HAVE COVERED….National Interests - Basic Issues and Economic Interests

Regional Policy

Perspective Plan of Bangladesh 2010-2021: making vision2021 A reality

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WHAT WE LEARNT

Understanding of the National interests, regional policy, andregional objective from Bangladesh Perspective Plan 2010-2021

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What Next?

Lecture 8:Nature of Urban Problems: Land Use, Housing, Urban

Transportation, Urban Environment and Urban Poverty.