Service EconomyGroup Members

Sumaiya Afreen (ID#B1001014)Nazifa Nushrat (ID#B1001038) Anika Tasmia Shawki (ID B1001048) Zaharatul Munir Sarah (ID#B1001049)

Introduction

Its per capita income in 2010 was est. US$1,700 . the 44th largest economy in the world in 2011 in PPP terms and 57th

largest in nominal terms. Economy growth: 6-7% per annum . Major source: Exports of textiles and garments others are textiles, jute, fish, vegetables, fruit, leather and leather goods,

ceramics, ready-made goods. Remittances from Bangladeshis working overseas: mainly in the Middle

East important export sectors include ceramics, cement, fertilizer, construction

materials, fish, seafood, cane and leather products 45% of Bangladeshis are employed in the agriculture sector with rice as

the single-most-important product. Problems: political instability, poor infrastructure, corruption, insufficient

power supplies, and slow implementation of economic reforms

Economy Of Bangladesh

Service sector playing important role in GDP in most of the south Asia, Africa and the Caribbean region

Domestic Regulation. Doha Round points out national policy objectives to be

a valid concern as long as these are not used to restrict trade.

3.Service Economy

Entertainment Literature Music Painting Drama Dance

Service economy Leisure , Tourism and Entertainment

Fast foods Restaurants Food shops

Service economy Leisure , Tourism and Entertainment

Hospitality The capital’s hospitality industry has almost

doubled in size and earnings over the last four years, thanks to the addition of a few new five-star hotels, officials said Wednesday.

The luxury hotels in Dhaka have earned Tk 1.18 billion revenue as room rent in calendar year 2007 while it was Tk 577.29 million four years back in 2004, a top official of a five star hotel told the FE.

Service economy Leisure , Tourism and Entertainment

Tourism The hotel and tourism sector is growing

steadily in Bangladesh thanks to the political stability, growth in export earnings and high turn-up of tourists and corporate and business clients, sources said. The hotel industry is growing by at least 10 percent as the economy of Bangladesh is posting 6-7 percent growth per annual.

Service economy Leisure , Tourism and Entertainment

Tourism 2013 ANNUAL RESEARCH: KEY FACTS The direct contribution of turison in the GDP

was BDT 193.obn (2.1% of GDP ) in2012 and forcast to rise by 7.7 % in 2013 and rise by 6.8 % on the next year.

GDP: TOTAL CONTRIBUTION The total contribution of Travel & Tourism to

GDP was BDT394.8bn (4.3% of GDP) in 2012 and forcasted to rise by 7.5% on the next year.

Contribution in the GDP

Entertainment The contribution of cinema halls, cinema

production houses, tele films/drama production houses and private TV channels have been considered and added from FY 2004-05.

Contribution in the GDP

New horizon for service exports Eliminate the trade barriers Total trade deficit is increasing over the

year Average rate of growth of service export is

more than service import 16.16% and 15.89% respectively Good symptom for Bangladesh.

Trade of service and Trade Liberization

Population is an important source Bangladesh is a labor intensive country Average employment to total employment Agriculture- 58.89% Industry- 12.39% Service- 25.36%

Employment Opportunity in Service sector

Sharp rise in agricultural sector from 58.8 percent in 1982-83 to 66.4 percent in 1989-90

Share of the manufacturing sector rose to 13.7 percent in 2002-03

Service sector has been somewhat unstable during the last two decades

It declined from 24.2 percent in 1982-83 to 16.2 percent in 1989-90.

Telecommunication and financial intermediaries Major policy reforms, the employment share of

service sector grew substantially, which reached to 34.6 percent.

Employment Opportunity in Service sector

The level of market concentration -significantly higher

the market structure of most service industries -monopolistic or oligopolistic

Grameen phone- part of Telenor’s global mobile network.

Regulatory Framework

Health:Mode 1- no specific rule Mode 2- a valid visa holder can avail

servicesMode 3- a company, incorporated outside

Bangladesh with a valid license Mode 4- no specific rule

Regulatory Framework

Tourism Mode 1- are no specific rules and

regulations Mode 2- are no specific rules and

regulations Mode 3- no specific legislation

Regulatory Framework

Improving institutional and human

capacities

Manage the negotiating process

Developing infrastructure facilities

Evolving marketing and distribution facilities

Broadening the scope of aid for trade

Technical Assistance Require

Contribution of service sector :49.22% Growth rate of service sector : 6.175%. Prospects of promising service:

◦Development of Tourism◦Quality Financial Services◦Development of Education sector

Points for Service Sectors

Appropriate government policies and measures need to be designed for a sustained growth of the services sector.

Bangladesh needs to enhance the education and skill level of its workforce as it is important for the financial service firms to employ skilled workforce for delivery of their services to foreign clients or attract firms to employ skilled workforce foreign multinationals into the country.

Computer literacy level along with the general education level needs to be enhanced.

In sectors in which regulatory bodies exist, e.g., Securities and Exchange (SEC) etc. there is the need to strengthen the capabilities .

Recommendations

Different country experiences suggest that trade liberalization alone cannot result in growth and development. On the whole there are several issues concerning trade liberalization and domestic regulation in the services sector which require immediate attention. Some of these are as follows:

 Although Bangladesh has made some significant gains from trade liberalization, a rather slow and cautious approach is preferred by many stakeholders.

There is a need to strengthen the capacity for domestic regulation, the underlying rules to strengthen the process of trade liberalization in a number of services sectors.

There is a need to actively involve all stakeholders (civil societies, private sector, etc.) at every stage of the decision making process from assessment studies to formulation to actual policy formulation.

Conclusion