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Trade in health services

Bangladesh-India bilateral trade: an investigation into trade in services

Bangladesh government must improve quality to stop flow of service seekers to India

Authors: M. Rahman
Publisher: South Asia Network of Economic Research Institutes , 2000

Report of a study exploring the phenomena of the growing number of Bangladeshi nationals seeking education and health services from various educational and health establishments in India. The report claims that absence of information in this area has undermined the GOB's policies in the areas of health and education services and has also seriously constrained research on related issues.

The objective of study was to generate data and information on such important variables as

  • number of Bangladeshi service importers
  • socio-economic background of service seekers
  • causes of imports of services from India
  • financial implications of importing the services
  • mode of transfer of money
  • policy initiatives required for strengthening import substitution activities in Bangladesh

Findings and recommendations include:

  • although investment in and provision of health and education services has increased in Bangladesh, there is awidespread perception that quality of services have seen considerable decline over the same period
  • trade has consistently tended to be one-sided (with Bangladesh importing services) and the widening deficit in this trade is contributing to further increase in the bilateral trade deficit between the two countries
  • Bangladesh is also importing the services through movement of natural persons mode, GATT agreement is likely to increase this
  • to contain the massive outward movement of health and education service seekers from Bangladesh to India, Bangladesh will obviously need to substantially enhance and improve the quality treatment and education services available domestically through public and private initiatives and joint programs with India
  • Bangladesh will need to pursue a proactive policy in order to ensure that this growing phenomenon is attacked not from the demand side, but from the supply side