Bangladesh competitiveness has notched up eight positions globally to the 110th from the last year’s 118th position among 148 countries thanks to improvement in some of its economic indicators like macroeconomic stability, infrastructure development and market efficiency.
“Few specific policies and initiatives (public and private investment in the energy and power sector) have contributed towards making positive changes (for Bangladesh) in the competitiveness,” additional research director of Centre for Policy Dialogue (CPD) Khondaker Golam Moazzem said while briefing about the outcome of the Global Competitiveness Report 2013-14 on Monday.
Switzerland emerged on top of the Global Competitiveness Index (GCI) followed by Singapore, Finland, Germany and the United States. Among the South Asian countries, India ranked 60th, while Sri Lanka 65th, Bhutan 109th and Nepal 117th.
Bangladesh, however, lags behind its big neighbour India that ranked 60. Slipping nine steps, Pakistan ranked 133, while Sri Lanka stood at 65, up from last year’s 68th position.
The Global Competitiveness Report (GCR) is an annual publication of the World Economic Forum (WEF). The CPD, a partner organisation of the WEF, released the report at a press briefing at its office in the capital.
However, Bangladesh’s progress has been slowed down particularly because of further weakening of the financial market and to some extent business sophistication, including industrial relations, according to the report.
“Corruption has returned as the lead constraining factor along with inefficient government bureaucracy… health sector has experienced a number of positive changes in 2013, including better access to public and private sector healthcare services,” it says.
During the last five years, the report says, Bangladesh’s competitiveness has made some progress, but not adequate enough that could facilitate targeted levels of growth and investment.
The global financial crisis and the ensuing developments have heightened the role of emerging economies in the global context.
“This has accelerated the major economic transformations already underway, which have fueled rapid growth and lifted millions of people out of poverty,” the report said.
Golam Moazzem said Bangladesh is still struggling with structural and governance weakness and these weaknesses are pulling down the economy in achieving higher level of competitiveness.
Political instability has emerged as a growing concern from the perspective of business competitiveness. Entrepreneurs perceived a significant economic slowdown in 2013 perhaps due to political unrest over the ongoing crisis centering the next parliamentary polls, he said.
As per the report, the World Economic Forum (WEF) made an index of 148 countries this year, evaluating 12 different issues known as ‘twelve pillars’ that include institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency and labour market efficiency.
Financial market development, technological readiness, market size, business sophistication and innovation have also been considered to prepare the competitiveness index.
The CPD, the civil society think-tank, also released the ‘Bangladesh Business Environment Study 2013’ at the press briefing.
CDP executive director Prof Mustafizur Rahman and other researchers attended the press briefing.
Source: UNB Connect
