November, 2006
 

| ICT |
Qualified ICT Workforce
can be the Economic
Liberator for Bangladesh
A. Imran Shauket
In October 2002 the Government of Bangladesh issued its National Information and Communication Technology (ICT) Policy, which affirmed the importance of this sector and referred to the Prime Minister's designation of ICT as a thrust sector. With this document the government voiced the intention to utilize the ICT sector as a tool to increase the "socioeconomic" development of the country. Looking across the border at India and its $17 billion share of the global offshore Business Process Outsourcing (BPO) market and targeted employment of 4 million in 2008, it is easy to see the attraction and follow the line of thinking. However, entering the ICT sector and ensuring success, sustainability, and widespread benefit is far more complex than a simple declaration of intent.

If Bangladesh were to join the ICT revolution, a highly skilled and internationally recognized workforce is the first requirement. Without this, no amount of investment in economic growth activities will have a substantive impact in this country with a population of 140 million-more than half of which is under the age of thirty. With expanded ICT human resources development options Bangladesh has the potential to not only "staff" domestic growth in the ICT sector among others, increasing exports and creating more jobs, but to also create skilled manpower as an export itself.

The introduction of a comprehensive, ICT-focused, educational campaign would make it possible for the country to become a source of high-value, skilled ICT workers, boosting remittance levels and offering opportunities to untold numbers of Bangladeshi citizens.

Research shows that the remittance flow into Bangladesh by the three million non-resident Bangladeshis (NRBs) may have reduced poverty in Bangladesh by as much as 6%. In 2005, the total NRB remittance inflow was approximately $3.2 billion. Remittances from Bangladesh's external aid and grants stood at half that amount ($1.6 billion) in 2004.

Given the figures cited above, increased remittance flow from ICT professionals working abroad has marked potential to further reduce poverty in Bangladesh. One estimate shows if Bangladesh were to provide 50,000 qualified ICT working abroad, in a global market which anticipates a 3 million worker shortage by the year 2010, it could generate between $2.5 to 3 billion in NRB income alone. If more highly specialized ICT professionals were to add to that remittance flow, Bangladesh's economy could see even further growth.

Bangladesh's population of nearly 140 million is stricken with a 40% unemployment rate, necessitating a clear focus on job creation. However, employment creation on its own will have only marginal economic impact.
Traditional manufacturing, which has thus far been driving Bangladesh's economy, will no longer suffice, particularly in light of China's growing success in the garment industry. As the pace of trade liberalization continues and competition promotes production efficiencies, Bangladesh can no longer rely on its cheap labor force as the sole incentive for international sales, nor should it want to.

Unless Bangladesh begins to develop high-tech capabilities, it faces the possibility of becoming stuck in a cycle of low quality, low profit-margin production that will not support its ever-increasing population. Recent episodes of worker unrest and violence in the garment industry, which accounted for approximately 80% of Bangladesh's....
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