According to Giddens “industrialization is the modern form of industries, factories, machines

and large-scale production process.” Problems and backwardness of industrialization are

given below:

I. Discuss the importance of industrialization in the economic development of Bangladesh.

II. Causes of industrial backwardness of Bangladesh or problems of industrialization of
Bangladesh.
III. Measures of rapid industrialization in Bangladesh or key activities for rapid
industrialization or suggestion for rapid industrialization in Bangladesh.
IV. Define nationalization of industry
V. What are the causes of nationalization of industry?
VI. What are the problems of nationalization of industry?
VII. What is the solution of problems of nationalized industries?
VIII. Discuss the role of small and cottage industries in the economy of Bangladesh.
IX. What are the problems of small and cottage industries?
X. Measures to solve the problems of small and cottage industries.
XI. Role of Medium industries in developing Bangladesh economy
XII. Role of large industries in developing of Bangladesh economy
XIII. What is BSCIC? Define the functions of BSCIC.

Extra: List of Small and large industries

1) Discuss the importance of industrialization in the economic development of

Bangladesh.
The industrial sector has historically been the sector that has driven growth as countries have
moved from low to middle income status. This is because industry can provide high-wage
employment for large numbers of workers and can raise social productivity by producing
high- value goods on a mass scale. Poor countries can earn valuable foreign exchange by
exporting manufactured products and the foreign exchange can be used to invest in newer
machines and technologies so that a rapid move up the technology ladder becomes possible.
The average productivity of industry is higher than in agriculture or most service-sector
activities, so as people move out of agriculture into industry, Gross Domestic Production
(GDP) increases.
Bangladesh has natural resources but that can be exploited, with the exception of natural
gas. Thus, industrialization and specialization in manufacturing is the obvious way in which
Bangladesh can raise its per capita income and social productivity. The industrial sector
consists of manufacturing, together with utilities (gas, electricity and water) and construction
main industries, textiles and apparel, jute, sugar, tea, leather, telecommunications,
pharmaceuticals, cement, ceramics, shipbuilding, fertilizer, food processing, paper newsprint,
light engineering, etc.
Some of the Key points of importance of industrialization is given below:
1. Rapid economic development
Bangladesh is an agriculturally based country but it is not possible to develop the economy
only by agriculture so industrialization is essential for rapid economic development of
Bangladesh.
2. Increase national and per capita income
National income and per capita income is so low in Bangladesh. it is impossible to increase
the national and per capita income by truly agriculture so increase national income and
political capital income is very much important.
3. Development of agriculture
To develop agriculture, it is needed to various agricultural machinery, chemical, irrigation etc.
these types of elements we get from industry. so, on behalf of the development of agriculture
it is really essential for rapid industrialization
4. Disguised unemployment problem
The importance of industrialization is to solve the gradually increasing unemployment
problem.
5. Development of living standard
To develop this living standard of people industrialization is essential the standard of living
of most people in our country is so low so rapid industrialization should be done for gradually
increasing people in Bangladesh
6. Proper utilization of natural resources
We have a lot of natural resources such as Jute, Paper and cement etc. The necessary goods
of available in there. so, these raw materials can utilize properly by industrialization.
7. Economic stability ensures
Every year our country affects various types of natural disasters, so our agriculture
production is always uncertain. so the industrialization can boost up the economic stability
 8. Reducing more dependency on agriculture
Bangladesh is mainly an agricultural country. As a result, it faces various difficulties in
economy. industrialization can reduce the dependency on agriculture.
9. Earning or increasing foreign currency
Throughout industrialization we can export various types of products to the foreign country.
Exporting products can increase foreign currency earnings.
10. Favorable situation in balance of trade and balance of payment
In case of Bangladesh economy, international trade comparability we import more than
export so we face lack of balance state to remove this problem we have to increase our
export and decrease our import.
11. Development of communication
It is also possible to develop transportation and communication system by rapid
industrialization
12. Socio economic development
But the result of industrialization per capita national income and consumption of goods will
increase as a regard to urbanization school college hospital road etc. The steps of
infrastructure advantage will organize and socio-economy will be developed.
13. Pressure of population
Industrialization can help our people to get job. As a result, the population pressure
depending on agriculture will be reduced.
14. Reducing dependency on foreign country
By industrialization we can develop our economy. So that we can deduce dependency on
foreign country.
15. Development of defense
Every independent country should have a strong defense power so they did a lot of
ammunition that can be produced in an industry so it health in developing defense power.

2) Causes of industrial backwardness of Bangladesh or problems of industrialization

of Bangladesh.
Bangladesh is trying to develop there every sector but various types of barriers affect in the
development. There are also some causes of industrial back coordinates of Bangladesh those
are given below:
1. Colonial policy of British govt.
The British government almost controlled the subcontinent for 200 years, but they had no
interest to set an industrial in this area. They used this area as a source of raw materials and
the market of manufactured goods. The colonial principles of British government is definitely
responsible for this backwardness
2. Pakistani exploitation before liberation
Bangladesh is the victim of negligence and exploitation principle of former government of
Pakistan. The government body of that time exploited this area like British. They
industrialized the former W Pakistan which money came from East Pakistan. As a result of
Bangladeshi’s undeveloped in industry.
3. Insufficient supply of capital
Bangladesh has fairly low rate of investment because of the property and population. The
entrepreneurs cannot collect necessary capital for growing the industry.
4. Insufficient supply of mineral
Mineral wealth is very necessary for industrialization. But Bangladesh is not fulfilled with this
wealth. Still Bangladesh is in disturb of shortage of iron coal and other mineral.
5. Lack of skilled and experience labour
Most of the labor of Bangladesh is unskilled. They do not have any educational knowledge
as well as don’t have any skilled experience.
6. Inadequate technical knowledge
Technology is upgrading day by day. But there is so much shortage of technological
knowledge in our country.
7. Inadequate skilled or experienced entrepreneurship
Lack of experienced entrepreneurship, exploits the whole management system. Which can
affect in industrialization.
8. Shortage of capital goods
As Bangladesh is very poor country, we don’t have enough words for the people.
9. Poor or week socio economic infrastructure
Under developed Transportation and communication system weeks socio economic
infrastructure.
10. Shortage of foreign currency
The International Trade Impressive of Bangladesh is very low. The import rate is higher than
export rate. That’s why there is a shortage of foreign currency.
11. Tendency to export raw materials
From the beginning our tendency is to export raw materials. As a result, we are affecting
shortage of raw material in the production.
12. Lack of proper management
Because of various limitation in management body, it makes a great problem.
13. Inadequate modern and sufficient communication system
We are developing our country in various sector but our communication method still in
traditional. Which affect in speed of workflow.
14. Political stability
15. Narrowness of market
16. Corruption and nepotism
 17. Lack of physible planning
18. Agriculture based economy
19. Small size in market
20. Insufficient supply of electricity

3) Measures of rapid industrialization in Bangladesh or key activities for rapid

industrialization or suggestion for rapid industrialization in Bangladesh.
Experience from successful industrialized countries suggests that industrialization brings
significant structural change in the economy which leads to considerable reduction in
poverty, large-scale job creation and substantial improvement in the welfare of the people
of a country.

1. Increase govt. patronization

The past industrialization process has interrupted the indifferent policy of govt. But at
present govt. has to play an active role for industrialization.
2. Encouragement of private sector
Private has developed management body. On the other hand, public sector losses day by day.
Private sector can make a better output in rapid industrialization
3. Sufficient capital formation
Because of Bangladesh is a very populated country. The investment of people is very lowers.
There’s creates the capital formation insufficient.
4. Sufficient credit supply
Sufficient credit supply can encourage entrepreneur to come forward to grow
industrialization.
5. Increase power wealth
We can increase our power wealth through earning money, developing better plans, saving
money’s investment, also protecting our assets.
6. Development of natural resources
Natural resource management deals with managing the way in which people and natural
landscapes interact. It brings together natural heritage management, land use planning, water
management, bio-diversity conservation, and the future sustainability of industries like
agriculture, mining, tourism, fisheries and forestry.
7. Supply of skilled manpower or labour
Skilled labour force can help in boosting the production of industry. Increasing production
can play vital role in economy of Bangladesh
 8. Increase technical knowledge
In present, technical knowledge is mandatory for rapid industrialization. Most of the
countries are using high developed machinery to increase their production.
9. Import of capital goods
For developing industrial sector, it is important to expand importing of capital goods.
10. Development of modern transportation system
The development of transportation systems is embedded within the scale and context in
which they take place, from the local to the global and from environmental, historical,
technological, and economic perspectives.
11. Increase foreign currency
To establish the large-scale industries, we have to import a lot of machinery from abroad. For
this we have to expand a lot foreign currency.
12. Political Stability
Since many years Bangladesh is facing this problem. Govt. should come forward to develop
political stability in Bangladesh
13. Creation of wide foreign market
14. Proper industrialization policy planning and decision
15. Ensure proper management
16. Removal of corruption and nepotism.

4) Define nationalization of industry

When the ownership of the industry is transferred to government hand from the personal
hand is called the nationalization of industry. As a result, the personal ownership is
terminated and organized the National Ownership by giving proper price government
undertake these industries and these industries are regulated by the direct control of
government. Nationalized industries are directed by government rather than personal
direction After the independence in 1972 in March, Bangladesh government has declared
the nation. The nationalization policy to introduce the socialism in this country, according to
this policy, the major industries in of Bangladesh are nationalized. Which type of industry was
nationalized the measure of them are jute industry, textile industry, sewer industry, pepper
industry, fertilizer industry, cement industry and steel industry besides. Those types of
industry, the government also nationalized more banks, more insurance companies rather
than foreign banks and insurance companies.
5) What are the causes of nationalization of industry?
In 1972 Bangladesh Govt has nationalized the major industries like jute mill textile mills, sugar
mill in Pakistan region. The minority person centralized the industry’s ownership. The
minority teacher was the owner of misjudging industry and assets. As a result, income
discrimination was increased and most of the people was deprived from the benefit of
economic development in society.
1. Termination of exploitation
Informer Pakistani age, the capitalists were exploited our people over the twenty years as
the name of the industrialization. To terminate this exploitation, nationalization decision was
taken.
2. Proper distribution of wealth
To distribute the wealth properly among the overall people, this decision was taken.
3. Sound and proper management
By nationalization of industry government will become the owner of this industries. So for it
will be very easy to make proper policy and sound management on behalf of government
research. The production will increase.
4. Termination of industrial dispute
But the result of nationalization of industry workers torture will be banned. The bad relation
between workers and owner will be improving.
5. Rapid economic development
But the result of nationalization production will not be run for increasing personal profit
Government will maintain the production management profile the economic development of
country will repeat.
6. Reducing income discrimination
In capitalist condition, there is existence of wealth discrimination between rich and poor. By
nationalization of industries, wealth may not be centralized in capitalists for this reason,
income discrimination will be reduced.
7. Introducing socialistic economy
Industrialization is essential for free expedition society. To rapid economic development of
the country by the limit resources and ensure. And to ensure the proper distribution of wealth
is essential to introduce socialism economy.
So the decision of nationalization of industries was taken to demonstrate the above issue and
to ensure the financial freedom of each people of the country.

6) What are the problems of nationalization of industry?

From the very beginning of the independence of our country, Bangladesh government
initialized the main industries. Those are due industry, textile industry, souvenir industry, prep
industry, etc. But there are some problems in nationalizations of industry, which has given
below.
1. Lack of organizational skill
At the beginning of nationalization nationalized industry faced at lack of organizational skill.
To maintain this vast nationalization sector properly, which type of organizational speed
needed is not built up.
2. Insufficient experience and honest administration
Which types of administrators are employed there to maintain the nationalized industry, they
are not so experienced in this way. Besides people have a lot of suspicious about their duties
and honesty.
3. Imperfect policy and planning
There is also lack of deliberate policy to nationalization of industry in Bangladesh. The
nationalization policy should be done When the production condition come back, general
condition.
4. Defective management structure
To develop any industry management body Should be very high standard. If it has any
defective then the whole sector will face loss.
5. Lack of mutual belief
Another main problem of nationalized industries are lack of mutual belief at the various level
of employed employee in an industry.
6. Corruption and nepotism
After the nationalization of industry, there are increased corruption and neutralism. Beyond
the current rules and regulations, there has given various advantages, like employment,
promotion, etc.
7. Labour unrest investment.
Labor dissatisfaction causes the relation between labor and management become fake and
production also decreased.
8. Lack of sound coordination
9. Lack of specific target
10. Increasing cost of production
11. Lack of socialistic outlook
12. Lack of sincere efforts

7) What is the solution of problems of nationalized industries?

Solutions are given below-
 1. To ensure sound management
The governance body of the nationalized industry should be delegated, rescued and
experienced person. Production should be increased by employing the skilled and
experienced person and to handover the management to their hand.
2. Removal of administrative complexity
We have to change the managerial body in such a way so that the present conflict decision
making is removed in case of production. For this, we have to build up two level management
in line of existing three levels management.
3. Rapid and physible decision making
To solve the problems of nationalized industries, we have to take rapid decision and to
remove the procrastination of various unit level in case of demonstration.
4. Removal of corruption and nepotism
Preventing or managing nepotism within the corporate world is an important component of
an employer’s leadership and crucial to the company’s organisational climate and long-term
health
5. Increase of training facilities
We also have to increase training facilities to nationalize industries labor. If we do that, the
skill of productivity will increase.
6. Ensure of participation and representation of labor
Employment of flavors has to ensure and for the encouragement of labours some award has
to give the labour for their performance they have done.
7. Proper policy making
For various matters like appointment of Labour’s transfer, promotion, leave, etc. Proper
implementation of principles has to be taken.
8. Increase of sufficient supply of raw material and machineries
Full goods use of power of production has to ensure by ensuring the regular supply of
important machinery and raw materials of state-based industries.
9. Proper coordination
Coordination has to done in all work and various levels of nationalized industry. It has to
create the mutual trust and belief among the existence labor and employees of nationalized
industries, and has to keep adjust effort for policy making and realization.
10. Reducing production cost
11. Increase labour management relations
12. Increase sincere effort

8) Discuss the role of small and cottage industries in the economy of Bangladesh.
Small and Medium Enterprises (SMEs) are accounting for 25 percent of GDP, 80 percent of
industrial jobs, and 25 percent of the total labour force in Bangladesh even though the
prospective sector gets negligible facilitation from different support service providers. There
are various constraints that hinder the development of SMEs in Bangladesh, such as lack of
medium to long-term credit, limited access to market opportunities, technology, and
expertise and business information
1. Additional profession of farmer
In our country, as far as possible, industry is a helpful provision for farmer. These types of
industry is very easy to handle by the uneducated farmers, so they can’t extra income from
this profession and its source of income is very helpful is their standard of living.
2. Creation of employment opportunities
This industry can help in removing the unemployment problem. Also, it helps the
entrepreneurs to come forward to participate in the economy of Bangladesh.
3. Creation employment of Women
There are mostly 50% women in our country among them. Most women do not get enough
opportunity to engage any job sector. But small and cottage industry creates enough
employment for women in our country.
4. Reduction of population pressure of agriculture
Agriculture is the main profession of population. So, population only depends on agriculture
in field of agriculture. Its small and coating industry reduce the pressure of population.
5. Proper utilization of raw material
We have a lot of raw materials and natural resources that is suitable to use in cottage industry
in Bangladesh, which is very easy to set up cottage industry with these raw materials.
6. Proper distribution of wealth
Small and cotton industries have played a vital role to proper distribution of national assets.
Assets is centralized to the monetary capitalist and by the causes of large-scale industries. As
a result, wealth discrimination is seen in our society. On the other hand, cottage industry is
village industry became the general people of village involved to this profession. So, for the
wealthy distributed property.
7. Savings of foreign currency
We established the large-scale industries we have to import a lot of machinery from abroad.
For this, we have expanded a lot of foreign currency, but it is not needed to import missionary
to establish small and courtesy as a result, we can save huge amount of foreign currency.
8. Protection of unhygienic environment of large-scale industry
Generally, the large skill industries are established in the special area. So, for the many people,
come here to do job as a result. As a result, the area is become like slum. Besides these
industries also use various chemicals so that they are. Environment is becoming unhygienic.
But this type of disadvantage is not in small and indium industries.
 9. Proper utilization of byproduct of large-scale industry
There are many waste materials come from this industry. So, if we use these wastes as raw
material for byproduct, then we can also improve our economy.
10. Cottage industry are not easily destroyed
11. Production according to taste and demand
12. Preservation of national tradition
13. Proper development of coordination

9) What are the problems of small and cottage industries?

1. Primitive or old method of production

Steel small and cottage industry follows the ancient method of production. As a result, more
production cannot be pieced easily. So, it is one of the most important problem of small and
cottage industry.
2. Shortage of capital
Capital is the blood of settings up an industry, but small and cottage industry needs more
capital to set up its widely.
3. Lack of Loan facility
Small and cottage industry is called property line industry. In this industry, general people are
involved to set up it, but lack of enough loan it cannot be set up easily.
4. Low rate of education
As Bangladesh is a highly populated country, the exhibition rate is very low, but small and
cottage industries do not run rapidly because of lack of education.
5. Shortage of efficient and trained technical manpower
In our country, we have lots of educated manpower, but we don’t have any efficient or skilled
manpower. We do not need only educated, but also educated and skilled manpower.
6. Insufficient supply of raw material
To set up a small and cottage industries and continue its product production, raw materials
is needed, but lack of raw material is does not possible to increase production of this industry.
7. Insufficient supply of power supply
Though there are many sources of power resources in our country, but it does not utilize
effectively in this case, the small and cottage industry need more power resources, such as
gas, electricity, water, etc.
8. Narrow market
The produced course of small and cottage industry do not get actual market. The market of
this produced products is limited. For this reason, small and cottage industry cannot continue
their production.
9. Unhealthy competition with large scale industry
10. Inadequate communication and transportation system
11. Defective market
12. Low quality of product
13. Lack of govt. patronization

10) Measures to solve the problems of small and cottage industries.

1. Ensure modern method of production

Using modern method of production in a small and cottage industries. Production problem
can be solved. Because more production can be possible by using modern method of
production.
2. Sufficient formation of capital
By increasing capital supply in small and cottage industry, lack of capital problem can be
solved.
3. Increase rate of education
Education is the backbone of a nation. So to solve the problem of small and cottage industry
development of education must be needed.
4. Increase supply of raw material
To post the production of small and cottage industry, the availability of raw material supply
is needed.
5. Grading and quality control of product
To solve the product selling problem on small and cottage industry, grading and
standardization must be needed because grading and standardization increase the
attraction of product.
6. Minimization of competition
Forgetting the actual price of product market minimization is very much needed for a small
and copies industry.
7. Mass promotion or publicity
The produced product of small and cottage industry can be possible to introduce together
kanji by widespread advantage meant. So to solve the product selling problem, more
advertisement is presidential.
 8. Sells promotion
Because there is very low rate of sales profession in small and cottage industries, that’s why
they do not get the authentic price for their product.
9. Increase govt. patronization
The enhancement of setting up in small and cottage industry may depend on government
support to. Solve the problem of small and cottage industry, the increasement of government
health must be needed.
10. Average proper training facility
We can see small and cottage industry do not get any training facilities from government.
The if they get the facilities is very low.

11) Role of Medium industries in developing Bangladesh economy

Economic development is one of the most common terms used in commerce, and it refers to
the transformation of the economy from the condition of underdevelopment to the condition
of development.
Medium enterprises bring about greater equality of income distribution. As most of the
medium enterprises are either proprietary or partnership concerns, the relations between the
workers and the employees are more harmonious in medium enterprises than in large
enterprises.
Some key role of medium industries given below:

1. Creation of employment opportunities

This industry can help in removing the unemployment problem. Also, it helps the
entrepreneurs to come forward to participate in the economy of Bangladesh
2. Reduction of population pressure of agriculture
Agriculture is the main profession of population. So, population only depends on agriculture
in field of agriculture. Its small and coating industry reduce the pressure of population.
3. Proper utilization of raw material
We have a lot of raw materials and natural resources that is suitable to use in cottage industry
in Bangladesh, which is very easy to set up cottage industry with these raw materials.
4. Proper utilization of byproduct of large scale industry.
There are many waste materials come from this industry. So, if we use these wastes as raw
material for byproduct, then we can also improve our economy

5. Help to release scarce capital towards productive use

6. Proper development of coordination
 7. Savings of foreign currency
8. Protection of unhygienic environment of large-scale industry
9. Help widespread equal distribution of income and wealth
10. Mitigating the problem of imbalance in the balance of payment accounts

12) Role of large industries in developing of Bangladesh economy

Large scale industries are referred to as those industries that are having huge infrastructure,
raw material, high manpower requirements and large capital requirements. Those
organizations having a fixed asset of more than 10 crore rupees are considered to be large
scale industries.
Some of the key roles of large industries are given below:
1. Create opportunities for small and cottage industries to evolve and flourish.
2. Capable of generating funds for the research and development of new technologies.
3. Helps in rapid industrialization
4. Adequate remuneration and other benefits to the employer
5. Creating employment opportunities
6. Development of a skilled workforce in the country
7. Use of large-scale raw materials

13) What is BSCIC? Define the functions of BSCIC.

Bangladesh Small and Cottage Industries Corporation (বিবিক) (BSCIC) provides
comprehensive support services to small, rural, and cottage industry of Bangladesh,
particularly in the small and cottage industries sector. It was created through an Act of
Parliament in 1957 which was later amended in 1992. BSCIC has country-wide institution
network to provide doorstep services for entrepreneurs.
Functions of BSCIC:
1. Promotion and registration of small and cottage industries
2. Conducting advisory and industrial promotion services including training of
entrepreneurs
3. Skill development for artisans and craftsmen
4. Creation of jobs for SCIs
5. Construction and development of industrial estates with necessary infrastructural
facilities for SCI Development of linkages between SCIs and large and medium-sized
industries.
6. Online Service for registration of Industry, Application for Industrial plots, Application
for Training facilities will be provided very soon.
List of Small and cottage Industry:
• Handloom Industry
• Bamboo industry
• Cave industry
• Lather industry
• Handcraft industry
• Jute industry
• Hand spring industry
List of Medium and large-scale industry
• Cotton industry
• Textile industry
• Tea industry
• Paper news print industry
• Chemical industry
• Sugar industry
• Medicine industry
• Light engineering
• Silk industry