Policymakers in Bangladesh need to address infrastructural deficits, raise efficacy of public institutions and reduce corruption through good governance for the country to score better in the Global Competitiveness Index (GCI).
With marginal improvement in the Global Competitiveness Report (GCR) 2014, Bangladesh remains rather motionless in terms of both business competitiveness in the global arena and GDP growth at the national level due to persistent failure to meet complex and diverse needs of businesses.
The GCR 2014, however, revealed that entrepreneurs in Bangladesh have envisaged better economic prospect in 2014 despite dull investment scenario and volatile political climate in recent times.
The observations emerged from the CPD dialogue on “Recent Update of Business Environment in Bangladesh and Launching of Global Competitiveness Report 2014-2015” held at BRAC Centre Inn on Thursday, 4 September 2014.
The GCR defines “Business Competitiveness” as “the set of institutions, policies and factors that determine the level of productivity of a country” and this year’s ranking placed Switzerland, Singapore, United States, Finland, Germany, Japan, Hong Kong SAR, Netherlands,United Kingdom and Sweden as the top ten economies.
In identifying performance of the world economies, survey respondents have indicated at three major global risks, namely political and social instability, fiscal crises in key economies and prolonged negligence in developing critical infrastructure.
During the dialogue, Professor Mustafizur Rahman, Executive Director, CPD noted that CPD has been partnering with the World Economic Forum since 2001 in preparing the Executive Opinion Survey (EOS) and Rapid Assessment Survey (RAS) in Bangladesh as part of the Global Competitiveness Report.
Based on opinions from 77 entrepreneurs and businessmen from medium and large enterprises in Bangladesh, this year’s survey revealed the business community’s perception on the economy, covering a number of key areas.
Dr Khondaker Golam Moazzem, Additional Research Director, CPD shared key GCR finding, analysis of business environment in Bangladesh and finding from the RAS in his keynote presentation. He stressed to rebuild the business-government relationship by putting in place collaborating platforms in association with the Private Sector Development Policy Coordination Committee (PSD PCC) in the Prime Minister’s Office (PMO). A number of reforms in public services, governance in the public sector, financial sector, corporate sector governance and Environmental and social issues were also suggested.
With the reforms addressed, Bangladesh could attain higher GCR ranking in future through broad-based consultation involving the government, private sector, civil society, politicians and other key stakeholders, he noted.
Chief Guest Mr Amir Hossain Amu, MP, Hon’ble Minister for Industries said that Bangladesh’s improvement from 110th to 109th position should be appreciated given the recent volatile situation. He urged the private sector to invest in higher-end products due to its attractiveness in local and global markets, investment in value-chain related products and services.
Special Guest Mr Amir Khosru Mahmud Chowdhury, Former Minister for Commerce, particularly highlighted that governance is the overriding issue as policy continuity and an accountable government would have helped Bangladesh achieve a better position.
Mr Syed Nasim Manzur, President, Leathergoods & Footwear Manufacturers & Exporters Association of Bangladesh (LFMEAB), addressed the dialogue as the Designated Discussant while Mr Syed Manzur Elahi, Former Advisor to the Caretaker Government, chaired the dialogue.
The event was also addressed by Dr Shamsul Alam, Member, General Economics Division, Planning Commission; Mr A K Azad, President, BCI; Mr Kamran T Rahman, Former Vice President, MCCI; Dr Ashikur Rahman, Senior Economist, Policy Research Institute of Bangladesh; Mr Md Shahidullah Azim, Vice President, BGMEA; Mr A H M Reazul Kabir, Secretary, Dhaka Chamber of Commerce & Industry; Brig General M Mofizur Rahman, psc,P Eng (Retd), Former Executive Chairman BEPZA; among others.