Trade – both domestic and overseas – is the barometer of a country's economy. So the cliche of 'ease of doing business' is overused as a marker of trade facilities existent in a country. Infrastructure and logistics together are a sure indicator of the facilities to drive trade particularly export and import as well as foreign investment. There is an institutional shape of the state of logistical support called Agility Emerging Markets Logistics Index that measures the emerging countries' related scores. The Kuwait-based global logistics company published its 15th annual edition on February 6 last in which Bangladesh moved two notches up but still lags behind the other three South Asian economies. India ranks second in the Agility Emerging Markets Logistics Index 2024 followed by Sri Lanka at a distant 26th, Pakistan at 29th position and Bangladesh at 33rd – two notches up from 2023's 35th. China duly holds the pole position.
The good news is that the poor performances have prompted Bangladesh to frame a business-friendly logistics policy, first of its kind. One wonders why the country had to wait so long for this broad guideline aimed at reducing the lead time for customs clearance and other formalities for export and import to the minimum. That 20 government agencies and nine ministries are involved with the logistics sectors speaks volumes for the bureaucratic lengthy process through which the system is at work. Similarly, yet to be automated fully, customs clearance falls short of overcoming complicated procedures as 20 manual signatures are still required to accomplish the job, causing delay. In this age of digitisation when the government is determined to build a smart Bangladesh, such backwardness inherent in the system is contrary to the aspiration of the administration and the people. There has to be a paradigm shift in the mentality of the bureaucratic behemoth if the country has to stay competitive in business at least among the emerging nations.
There has been some phenomenal infrastructure development by this time but logistics support means more than mega projects. Enabling policy complemented by removal of bottlenecks that unduly delay release of the exportable and importable goods and capital machinery at ports can bring down the lead time – a key to giving an edge over rival competitors. As long as the bureaucratic tangles remain intractable, this lead-time will remain elusive. Development of appropriate logistics with duly taken care of the knotty points should be the objective of the policy now underway of finalisation.
To that end a lead-time coordinating authority must be set up. It will be manned with knowledgeable and smart people well versed with the complicated procedures of customs clearance, export and import and at the same time know how to handle sophisticated gadgets to detect false import-export declarations. Making the process easier for trade does not necessarily mean that the dishonest and motivated black sheep in the business community will get away with their nefarious business. In a nut shell, such a dedicated lead authority will be expected to provide institutional support and coordination for facilitating the country's overall business.
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