Bangladesh
13 February 1989, Calcutta

Bangladesh is an extremely poor country. It produces untanned hide and raw jute, which it sells in the international market, but it has virtually no metallic minerals and only some non-metallic minerals such as petroleum and natural gas. So we may say that Bangladesh is a deficit, undeveloped country with only few resources. For such a country barter is the best system of international trade.

If Bangladesh sells manufactured jute and tanned leather instead of raw jute and untanned leather, will it be better off? A huge capital investment is required to properly develop the jute industry, and as there are many synthetic fibres today which compete with jute, such a large capital investment is hardly worthwhile. Moreover, different types of synthetic leather which are more durable than leather products are also readily available. So on the one hand jute is being replaced by artificial fibre, and on the other hand leather is being replaced by synthetic leather.

The experience of India shows that the jute industry is a sick industry because it is not able to compete with synthetic fibres. Many Indian jute growers have stopped producing raw jute, so manufacturers now have less supply. The government started paying subsidies to the growers in Uttar Pradesh, Bihar and Assam to encourage them to produce more raw jute for consumption by the jute mills, but how long can the government continue to subsidize the jute industry? Obviously, government subsidies cannot continue for an indefinite period of time.

Thailand also produces manufactured jute, so if Bangladesh continues to manufacture raw jute it will have to compete with Thailand. The quality of the jute from Thailand is better than that from Bangladesh. Thailand is an ordinary developed country, not an undeveloped country, although its economy is based on agriculture. So if Thailand loses its jute market it can find alternatives by manufacturing other products. But if Bangladesh loses its market, it has no alternatives because its economy is undeveloped.

Previously, the British used to process Indian jute in Dundee in Scotland. At that time there were no jute mills in India. After the British left India, the Dundee jute industry had great trouble in getting raw jute, because India built its own jute mills. With much difficulty, the British transformed their jute mills to manufacture other commodities. Similarly, the Manchester cotton mills used to produce cotton cloth from Indian raw cotton, and they also had great difficulty in getting supplies of raw cotton to sustain their industry after Indian independence.

Take another example. India used to export indigo and get foreign exchange. When synthetic indigo was invented in West Germany, indigo exports stopped because the international market disappeared. Today indigo plants grow by the roadside in India and nobody bothers to collect them.

The lessons of history suggest that no country should invest huge amounts of money in industries which rely on supplies of raw materials from other countries. At present Japan is an exception to this rule. However, if the people in those countries which supply raw materials to Japan become politically conscious and start developing industries based on their own raw materials, Japan will face great difficulty. For example, the Paredeep Port in Orissa exports huge amounts of manganese and iron ore to Japan. If the poor people of this region become politically conscious, they will demand the establishment of their own industries and exports to Japan will cease.

Japan purchases scrap iron from other countries to supply its steel plants, but whenever possible the Japanese save steel and use alternatives. In their train bogies, for instance, there is virtually no steel, yet their trains are among the fastest in the world. In Rangoon there is a very large scrap yard which exports to Japan. Paredeep also exports coal to Japan. The most astonishing thing is that Japan imports these raw materials and is still able to manufacture relatively cheap steel. This is because Japan is an economically developed and technologically advanced country.

Orissa is one of the most backward states in India, yet the foolish leaders of the country export Orissa’s iron ore and coal. Instead they should develop many types of large-scale and small-scale industries in Hirakund in Orissa. The situation has not gone past the point of no return, and there is still time for India to develop industries based on its own raw materials.

Suppose Bangladesh stops the manufacture of jute and increases the production of rice, what will happen? It will become self-sufficient in food but it will not have any raw materials for commercial transactions with other countries. Without commercial transactions, a country cannot prosper. If commercial transactions are stopped, how will Bangladesh purchase essential items like dried chillies, pulses and oilseeds which it presently imports from India? This is a critical problem confronting Bangladesh today.

The time of jute cultivation is from the end of winter to the end of the rainy season. If jute is replaced, we have to consider whether anything else can be grown in this season. At this time, only sesame oil-seeds can be grown. Linseed cannot be grown because it is not a rainy season crop – it is a winter crop. If ways can be found through scientific methods to grow linseed in large quantities during the summer and rainy seasons, this will greatly help Bangladesh, because linseed oil has a huge international market as a lubricant, and it can be thickened to make thick oil. But this is not an immediate solution – it is only a long-term solution. As it is presently difficult to find an alternative to jute, it is not wise to discontinue jute production immediately.

So what is the way out for Bangladesh? Some people advocate that jute should be mixed with synthetic fibres and wool to develop demi-jute industries, or that ordinary nylon, not sophisticated nylon, should be extracted from the stem of jute plants. While such industries should be developed, if nothing more than this is done then the most that can be said of this approach is that it is only a partial solution.

Just after the independence of India, jute was a state item; that is, the West Bengal government had the responsibility of developing the jute industry. The Chief Minister, Bidhan Chandra Roy, urged the central government to make jute a central item, because he could foresee that the jute industry would face economic problems in the future.

The communists vehemently opposed this plan; nevertheless jute was made a central item. Today even the central government is not able to subsidize the jute industry sufficiently to make it healthy. If jute had remained a state item, how much more trouble would the jute industry be in today?

To solve the socio-economic problems confronting Bangladesh, there must be proper planning and the implementation of suitable developmental programmes, but these plans and programmes should be based on the availability of local raw materials. For proper planning one must have a thorough knowledge of the locality. One should not sit at some distant place and make plans without proper knowledge.

What sort of developmental programmes should be taken up by Bangladesh? Some people advocate the widespread establishment of the coconut industry in Dhaka district. Although the soil of Dhaka is very fertile, the salinity is very low. Saline soil is essential for good coconut harvests, so Dhaka is not an ideal place to grow coconuts. Rather, palmyra can be grown there very well. Coconut based industries should be established in the Noakhali district of Bangladesh. Plastic can be manufactured from the husks of coconuts.

Maymansingh district is not very suitable for coconuts and the coconuts that grow there are large. Coconuts grow best in Jessore district. Those districts in India which touch Jessore district – that is, Nadia and 24 Parganas – can also establish profitable coconut based industries, and in all these places the plastic industry can be developed.

What are the natural resources of Bangladesh? There are hardly any minerals in Bangladesh, thus there is little scope for developing ferrous industries. The whole economy has to be planned around non-mineral resources. However, some non-ferrous industries can be developed, as Bangladesh has supplies of oil and natural gas.

Before starting any industry, first the planners have to ensure that there is an adequate supply of power. In Bangladesh hydroelectricity is not possible because the rivers are in the deltaic stage. Hydroelectricity can only be generated when rivers are in the hilly stage and flow with much force.

Two types of power can be developed in Bangladesh – power from oceanic tides, and solar energy. Oceanic tides can be harnessed in the Bakargang subdivision of Noakhali district where the Meghana River enters the ocean, and in the Chandpur subdivision of British Tripura district where the Dakatiya River enters the ocean. Many waves and turbulences are created by the impact of these rivers when they enter the Bay of Bengal. Tidal power would be very cheap to harness there. Solar power can also be harnessed, but this source of power is not so developed yet. It will become increasingly important in the future.

There is not much opportunity for developing thermal power based on coal in Bangladesh. In the Maymansingh and Chittagong districts, coal which has not been fully metamorphosed can be found. However, this coal will take another 800,000 to 1,000,000 years to be transformed into good quality coal. At that time human beings will not live on this earth. To develop thermal power by importing coal would not prove to be a very wise plan!

However, bio-gas can be produced in large quantities. If bio-gas is developed it will also help alleviate the scarcity of manure which is chronic in Bangladesh. Manure derived from bio-gas plants is a natural manure which increases the fertility of the soil. It is especially good for growing vegetables, some pulses, and jackfruit.

Horticulture must also be developed. The soil in Bangladesh is not good for growing mustard seeds, cow pea or mangoes. Large mangoes can be grown, but due to the high rainfall, they will be easily infected by insects; but rice, lentil, bananas, supari and jackfruit can grow well. Bangladesh is a country with a damp climate, so crops which grow in the Mediterranean and tropical regions will grow best. The crops of the temperate zone, such as grapes and wheat for making pasta, are not suitable.

Previously Bangladesh was self-sufficient in fish, but now it is deficient. This is because there is no rotten vegetation in the ponds, streams and rivulets to provide food for the fish. Deforestation has caused this problem. In the past there were 2,400 square kilometres of forest in Bangladesh, but now it is doubtful if there are even 1,000 square kilometres. Today people are even cutting down all the vines and trees along the river banks to manufacture paper. This is causing the river banks to cave in, and consequently the rivers are losing their depth. If Bangladesh were self-sufficient in fish production, it could also extract calcium from fish bones. Bangladesh should immediately start large-scale afforestation and set aside some areas as reserve forests.

Large-scale pineapple production can also be undertaken throughout Bangladesh. Pineapples need sixty inches of rain per year. The average rainfall in Bangladesh is eighty inches per year, except in one district, where it is sixty-five inches. Medicine and thread can be produced from the leaves of the pineapple, and the thread can be used to manufacture very fine quality clothing for men and women. Thread can also be manufactured from the skin of pineapples. Lychee can be produced in Jessore district. Mulberry silk will grow well only in Rajsahi district, but endy silk can be produced in all districts. Cotton cannot grow well in Bangladesh.

Some of the land which is currently used for cultivating jute can be used for mulberry silk, and the wood of the mulberry tree can be used to manufacture wood products such as sports goods for export. Rayon can also be obtained from mulberry wood. If mulberry wood is hardened it becomes as hard as iron. Sal wood can be grown in very large amounts, and segun is also suitable. However, it is not wise to plant segun as it takes eighty years to reach maturity, while sal takes only twenty-five to thirty years. Kul trees, which provide tasar silk and shellac, can also be grown, but it is not wise to develop the shellac industry because plastics have taken the place of shellac, so it has no market.

Bananas can also be grown on a large scale. Bananas with seeds grow naturally on the banks of ponds throughout Bangladesh, but high yielding, good quality and well selected bananas should be cultivated instead to produce banana chips and dehydrated bananas. By burning banana trees, sodium carbonate or washing soda can be obtained. By hydrogenation, sodium bicarbonate or edible soda can also be manufactured. This industry has great potential, and Bangladesh can even supply sodium bicarbonate to the whole world.

Today all of Bangladesh is moving in a completely unplanned way, and as a result the people are becoming very agitated. To divert their attention, the government is taking advantage of their ignorance and seizing on non-issues such as declaring the country an Islamic state.

Proper planning is essential for Bangladesh. Until the people are educated, proper planning is not possible and mismanagement will continue. I am not saying you should make the people politically educated – it may or may not be possible for you to do this – but at least you should make them politically conscious.

13 February 1989, Calcutta
Published in:
Prout in a Nutshell Volume 4 Part 19 [a compilation]
Proutist Economics [a compilation]
File name: Bangladesh.html
Additional information about this document may be available here