The Governance and Management of Trade Policy in Bangladesh
Abstract
Trade policy has been a cornerstone of Bangladesh’s development journey. The critical importance of trade policy has become even more pronounced recently, as Bangladesh faced external pressures on foreign exchange reserves and balance of payments. Traditionally, discussions around economic policy in Bangladesh have focused on fiscal and monetary measures, but the current climate reveals trade policy’s central role in ensuring macroeconomic stability. The governance of trade policy defines the broad direction of policy -- open or restrictive trade – while management refers to the effective coordination of multiple agencies in implementing trade policy. Currently, Bangladesh’s trade approach reflects an awkward mix of outward-oriented and inward-looking strategies, resulting in significant progress in RMG export but little diversification into other sectors. This lack of alignment calls for a renewed round of trade policy reforms to create a more industrialized, employment-driven economy based on strong export performance. Embracing these changes can propel sustainable development, while missing this opportunity risks stalling progress at a crucial moment for transformation.