Vision-2021: The Role of Small and Medium Enterprises in Bangladesh Economy

Abstract

The present ruling party declared Vision-2021 before the 9th parliamentary election. It is not understandable why Vision-2021 is not much highlighted now. Maybe, it is because some of the goals of the document were supposed to be achieved by this time and they failed to do it. Vision-2021 is the first document of its kind in Bangladesh which presents a roadmap for the country’s economic development. It projects that contribution of the industrial sector to the Gross Domestic Product (GDP) would increase from 28 per cent (2008) to 40 per cent, contribution of the agriculture and services sectors would fall from 22 per cent and 50 per cent (in 2008) to 15 per cent and 45 per cent respectively by 2021. That means emphasis would be put on local industrialisation and rehabilitating the surplus labour force of the agriculture sector in the industrial sector. To implement Vision-2021 the Planning Commission has drawn up the Perspective Plan of Bangladesh (2010-21). Perspective Plan target of achieving the annual GDP (gross domestic product) growth rate of 10 per cent by 2021 is premised on a competitive manufacturing sector growing at or nearly a double-digit rate during the 2010-21 decade. Consequently, the broad industrial sector will continue to account for a much larger share of GDP, approaching 37 per cent by 2021, compensating for the decline in the share of the agricultural sector, which will fall to 15 per cent. For Bangladesh to reach the middle income threshold by 2021, industrial expansion must move hand-in-hand with highly productive farm and non-farm agriculture. Furthermore, a strong and competitive manufacturing sector is especially important for generating productive and high income jobs.