Bangladesh slips for the second year in Global Competitiveness Index (GCI). It came down by one position securing 108th rank in 2010 and where it was 107th in 2009. The Global Competitiveness Report (GCR) is an annual publication of World Economic Forum (WEF). CPD as a partner institute of the WEF has been conducting the Executive Opinion Survey (Bangladesh Chapter) since 2001. The report was released in a press briefing organised by CPD at its Dialogue Room on 8 September 2011, where Dr Khondakar Golam Moazzem, Senior Research Fellow briefed the print and electronic media on GCR 2011-2012 and the findings of Bangladesh Business Environment Study 2011. A total of 142 countries which includes Bangladesh have been assessed in the 2011 study. The survey ranks countries according to their business competitiveness environment based on the information provided by the business people as regards their perception on various contemporary issues of concern.
According to the survey, inadequate infrastructure, corruption and inefficient government bureaucracy were the main factors impeding business activity in the country in 2010. The report also says, though Bangladesh has dropped by one position its score has increased by 2.5 per cent. The areas where deterioration was observed are the education workforce, inflation, foreign currency regulation, crime and theft, and tax rates. Improvements have been observed in the case of financing, tax regulations, government stability and work ethics.
The top most problematic external factors are identified as global economic uncertainty, energy price volatility, trade barriers, exchange rate volatility and lack of natural resources. The problematic factors in the export and Import of Bangladeshi products are difficulty with proper identification of market/buyers, use of unsuitable technologies, poor access to imported inputs at competitive prices, burdensome import procedures, tariffs and delay in domestic transportation.
There are no major changes in the perception about the recent issues and domestic economy. Though positive changes were recognised, “but these changes were insignificant to create enough forces to run the economy at a required pace,” said Professor Mustafizur Rahman, Executive Director, CPD. Bangladesh should make a strategic target to lift its ranking upward slowly. To reach level 99 in GCI ranking Bangladesh needs to improve her GCI score from 3.73 to 3.84. Focus should be put in place on infrastructure development, creating efficient public institution, reducing corruption and human resource development in order to enhance productivity.
India also has failed to retain its last year’s position like Bangladesh. Top 10 countries in GCI 2011-2012 have been dominated by a number of European countries. Switzerland retained the 1st, Singapore moved to 2nd, USA moved backward to 5th position, China has improved and moved to 26th position, Brazil (53), India (56), Russia (66), and Sri Lanka (52). Other Asian and South Asian countries advanced well.
Senior CPD researchers were present during the briefing session.