Ensuring right business environment

MIR MOSTAFIZUR RAHAMAN | Published: November 20, 2024 23:05:53

Creating a business-friendly environment in Bangladesh has been a persistent challenge for decades. One does not need to be an expert to recognise the barriers, starting from pervasive corruption to bureaucratic inefficiencies, entrepreneurs face. Despite repeated promises made by successive governments to address these obstacles, little has been achieved in reality. It is high time the policymakers addressed these issues through systemic reforms to ensure a sound and healthy business environment for both local and foreign investors. In the past decade, the government has frequently pledged to eliminate the bottlenecks impeding business activities. Yet, the reality paints a dismal picture. Five years ago, Bangladesh ranked 168 out of 180 countries in the World Bank's Ease of Doing Business Index. Since then, the ranking has shown little improvement, signaling stagnation in addressing the country's business challenges.
Recently, a leading economic think tank conducted a survey that highlighted the barriers to having a proper business environment. Unsurprisingly, corruption emerged as the most significant impediment, identified by most respondents. Other challenges include policy inconsistency, harassment in customs clearance, bureaucratic red tape, and inadequate logistics.
Under the last Awami League regime, a small group of politically connected oligarchs dominated the economy. This syndicate seized control of major industries and stifled competition, creating an unlevel playing field. Honest and hardworking entrepreneurs struggled to survive in an environment where political patronage mattered more than merit.
This crony capitalism was particularly evident in the banking and construction sectors. Powerful individuals misused their influence to plunder banks, pushing the financial sector into chaos. In the realm of public projects, they monopolized contracts, making it nearly impossible for others to compete. This system discouraged entrepreneurship, hampered innovation, and damaged investor confidence.
The current interim government has expressed its commitment to improving the business environment. Some initial steps, such as banking sector reforms, have been undertaken. However, significant challenges remain, particularly in reducing bureaucratic red tape and addressing policy inconsistencies.
For instance, foreign investors often face insurmountable obstacles while trying to expand their projects. A convoluted clearance process forces them to approach multiple government departments, increasing costs and delays. This inefficiency not only frustrates investors but also deters future investment. Streamlining these processes is crucial to reducing the cost of doing business and enhancing Bangladesh's competitiveness on the global stage.
Bangladesh's economic aspirations hinge on its ability to create a business-friendly environment. To achieve this, the government must initiate comprehensive reforms that address both structural and procedural issues.
Tackling corruption should be the top priority. Strengthening anti-corruption bodies, ensuring transparency in decision-making, and holding offenders accountable are essential steps.
Inconsistent policies discourage investors and create uncertainty. The government must adopt stable, long-term policies that align with the country's development goals.
Simplifying procedures for business registration, customs clearance, and project approvals will reduce delays and improve efficiency. Technology-driven solutions such as one-stop service centers can play a key role in achieving this.
Breaking the oligarchic grip on the economy is crucial. The government should enforce strict anti-monopoly regulations and create a level playing field where merit prevails over connections.
Setting up a committee comprising honest and seasoned businesspeople to oversee reforms can provide valuable insights and ensure a transparent process.
Attracting foreign investment is vital for Bangladesh's growth. However, the current environment poses significant challenges for international businesses. Addressing these issues will not only boost investor confidence but also position Bangladesh as a competitive destination in the global market.
Foreign companies have repeatedly highlighted the need for a streamlined approval process to reduce unnecessary delays. By addressing these concerns, the government can foster an environment that encourages innovation, employment, and economic growth.
The time for promises has passed-it is now time for action. Ensuring a sound business environment is not just about fostering economic growth; it is about building a fair and transparent system that empowers all entrepreneurs. With decisive reforms, Bangladesh can overcome its challenges and unlock its immense economic potential. Let us hope that the current government seizes this opportunity to create lasting change.
mirmostafiz@yahoo.com