RMG being an important sector for the economy of Bangladesh in terms of job creation and earning foreign exchange all the steps of the value chain and the stake holders involved need to be brought under a linkage to derive the maximum benefit out of the process. The post MFA period pose a dangerous challenge to the sector, which would require timely intervention by the government and all the major stakeholders of the value chain to steer through impending crisis.
Oxfam's report (2005) shows that the WTO is the new battleground where poor countries are being forced to reduce tariffs on imports. The moves could increase their vulnerability, destroy farming communities, threaten food security and plunge millions into deeper poverty. Oxfam's report includes the following recommendations: a) Any new WTO deal must allow developing countries to regulate imports of products which threaten to undermine their farmers' livelihoods; b) Rich countries must stop negotiating bilateral trade deals to force open developing country markets; c) The IMF and the World Bank must stop forcing poor governments to cut their tariffs across the board; d) Developing country governments should ensure that their farm policies to promote poverty reduction .But Oxfam's report may not be effective as developed nations always motivated through their self interest. They always in favour of capital flight from underdeveloped nations to the developed nations i.e. capital outflow from peripheral to the centre.
Barriers to investment need to be reduced under multidisciplinary disciplines, just as barriers to trade have been reduced under GATT/WTO rules.
Muhammad Mahboob Ali, Truth About Trade & Technology
marketing@alchempro.com
