Get to grips with the institutional barriers which deter investors, both domestic and overseas
The World Bank and IFC’s Doing Business Report 2014 ranks Bangladesh 173rd out of 189 states for ease of doing business.
On average, it takes twice as long and twice as many procedures to open a business in Bangladesh as in leading developed nations, and our performance is noticeably worse than other members of Saarc.
The opportunity costs inflicted by barriers to doing business in Bangladesh are huge. The ranking of our economy, which according to the World Bank is worth around $130bn and the 57th biggest in the world, (or 41st largest and worth $400bn in purchasing power terms), gives an indication of the gross under-performance caused by our failure to lower barriers to doing business.
Another illustration can be seen by the fact that, although FDI has reached $1.6bn this year, our neighbour Myanmar expects to see overseas investors put $5bn into their economy by the end of 2014.
While the government is making some efforts to improve power supplies and to encourage Chinese and Japanese investment in special economic zones, it must get to grips with the institutional barriers and delays which are holding our economic growth back.
Lack of reliable power connections and barriers to business development, such as slow property registration procedures, corruption, and difficulties in enforcing contracts, are huge deterrents to businesses, both domestic and overseas, which wish to invest in the country.
The government must undertake more effective efforts to make the country attractive for investment. We cannot afford the economy’s potential to be held back.
Source: Dhaka Tribune
