During a seminar organised by the South Asian Network on Economic Modelling (SANEM) and the World Bank, experts highlighted the optimistic growth outlook for South Asia compared to other emerging markets and developing economies. However, they pointed out significant hurdles in job creation, attributing these challenges to a lack of necessary policy reforms.
The seminar, titled “Is South Asia Experiencing Jobless Development?” took place at Dhaka’s BRAC Centre Inn Auditorium on Thursday, coinciding with the release of the World Bank's April 2024 report on "South Asia Development Update."
Dr. Franziska Ohnsorge, the World Bank's Chief Economist for South Asia, emphasised the urgent need for policy reforms to dismantle barriers to job creation in her presentation of the "Report Focusing on Job Resilience in South Asia in April 2024."
According to Dr. Ohnsorge, the lag in private investment and its minimal contribution to GDP, compared to other developing regions, is a critical concern for South Asia’s job market.
Trade openness and institutional quality were identified as pivotal factors to invigorate job opportunities in the region. Dr. Ohnsorge highlighted the low trade-to-GDP ratio in South Asia and pointed out specific areas of growth such as the Bangladeshi readymade garment (RMG) sector and the Indian IT industry. She criticised Bangladesh for imposing high barriers to trade, which she believes are stifling growth and employment opportunities.
The seminar also featured insights from SANEM Executive Director Dr. Selim Raihan, Vice-Chancellor of Asian University for Women Dr. Rubana Haq, Professor Sayema Haque Bidisha from the Department of Economics at Dhaka University, and Bernard Haven, the World Bank's Senior Economist in Bangladesh. The panelists discussed various aspects of job creation, the quality of jobs, and integrating vulnerable populations into the workforce.
Bernard Haven underscored the interconnection between job creation and macroeconomic issues, advocating for more foreign direct investment (FDI) and a favorable business environment. He emphasised the critical role of boosting productivity and investing in human capital to enhance worker and firm productivity.
Haven also highlighted the need for better firm management, support for women’s labor force participation, reduced migration costs, and expanded social safety nets to ensure a more inclusive and productive workforce.
The seminar concluded with a call to action for South Asian countries to adopt comprehensive policy reforms to address the persistent challenges of jobless growth and fully leverage their economic potential.