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with more emphasis on private initiatives.

The policies thereafter implemented

included things such as opening up sectors which were previously reserved for the

state sector, including banking and insurance sectors, enterprises, beginning with smaller ones, and establishment

divestiture of state of export processing

zones, ensuring access

facilities.

In

addition,

for private enterprises the industrial policy of

to credit and foreign exchange 1982 stipulated the return of the

nationalised jute industrial policy

and textile mills to their former Bangladeshi owners. The revised of 1986 further provided for equity shares of public corporations

and

enterprises

to

be

floated

for

public

subscription

up

to

a

limit

of

49

percent.

Export promotion was one of the top priorities of these policy initiatives. Alongside liberal policies offered for foreign direct investment, including allowing 100 percent equity share ownership, export oriented units have been

offered with lucrative incentives such

and a duty drawback system.

Thus

became origin.

quite

favourable

for

export

as tax holidays, bonded warehouse facilities by the early 1980's the policy environment industries, whether of domestic or foreign

Nevertheless, the congenial policy environment would have remained unexploited without external actors ready to make use of it. As in many other countries and industries, foreign multinational companies played a catalyst role in promoting this particular industry in Bangladesh. They brought initial technology and other know-how with respect to the modern production of garments meeting international requirements. Simultaneously, through controlling product development and marketing operations, they have successfully linked Bangladesh

as a competitive production base contributed to diffusing technology spin-offs.

to the international market. and know-how to local firms

They further by generating

Behind the advent of foreign capital lies the economic restructuring that occurred in the foreign companies’ respective countries. The relocation of production bases necessitated by rising production costs in their home countries as well as in the countries to which they had already shifted was not limited to the developed

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