Bolstering enterprise growth for new jobs

Also available in Bangla

A Government initiative to create jobs through private sector enterprise growth and promote speedy reforms within State Owned Enterprises (SOEs) and the Nationalized Commercial Banks (NCBs) is moving ahead.  The Enterprise Growth and Bank Modernization Project (EGBMP) of the Government, supported by the World Bank with a commitment of US$ 257.63 million, is helping the private sector to create more jobs through its efficient financial sector performance.

Since the start of this initiative in 2004, a Small Enterprise Fund (SEF) was set up to promote private sector small enterprise growth and it has so far disbursed more than Taka One billion to 1,337 small enterprises, creating additional jobs for 2,527 people. It has converted Adamjee Jute Mills into an Export Processing Zone, creating jobs 34,000 people till now, while this number is likely to increase to 70,000 in future. The Karnaphuli EPZ, being built at Chittagong Steel Mills, is expected to create 24,000 new jobs, and eventually will generate some 50,000 jobs when fully completed.

Through this initiative, the Bangladesh Export Processing Zone Authority and Board of Investment have strengthened their institutional capacity in the areas of investment promotion, training, and computerization programs.  BEPZA Counselors are now equipped with sound labor management practices and took mitigating steps during last year’s labor unrest.

Under its Voluntary Retirement Schemes, 27,000 retrenched workers of closed down/privatized SOEs received payments and its safety-net program provided counseling, retraining, and access to credit for the retiring workers. It also provided stipend and training for children of the retiring workers. Of the 1,054 retrenched workers registered with Job Information Bank, 185 people have already got alternative jobs and 811 children have received education stipends. 

After slow progress, the Bank Modernization component of this initiative is finally catching up. The privatization of Rupali Bank Limited is at the final stage now, and the Government has already decided to corporatize the other three NCBs – Sonali, Janata and Agrani Banks.  A new NCB-restructuring plan of the Government will also be financed under this initiative.

 

April 2007

Contacts:
Rezwan-ul-Alam (8802) 815-9015, Ext 4242,      E-mail:  salam3@worldbank.org
for more information on the World Bank in Bangladesh, please visit: www.worldbank.org.bd & www.worldbank.org