Reform to root out corruption

FE Team | Published: November 08, 2024 22:28:31

It is common knowledge that the major obstacles to doing business in Bangladesh have perennially been bureaucratic foot-dragging, corruption, policy inconsistencies, poor infrastructures, to name but a few. However, there had never been any dearth of criticisms of and complaints against such state of affairs in the administration since independence with little effect. Hence is the current interim government that assumed office in the wake of a student-led bloody mass uprising with its pledges of effecting reforms in the different sectors of the economy and governance. Against this backdrop, some overseas investors and business entities that have been operating in this part of the world since long have conducted surveys identifying the bottlenecks negatively affecting business environment in the country and come up with their observations and recommendations to improve things.
Though it is too early to expect much from this hardly three months old interim government, still pinning their high hopes on it, stakeholders in businesses, especially those from abroad have expressed their expectations and concerns with a note of urgency. In this connection, mention may be made here of the experiences of a large number of private investors and businesses from Japan, which is a tested partner of Bangladesh in its development efforts since independence. Notably, through surveys conducted between September 19 and 29 last, some trade bodies representing these Japanese investors have pointed out that the most challenging among the complexities they faced while conducting business include the taxation procedures and customs clearance. No less problematic were the process of issuing visas and work permits, financial regulations and inconsistent policies, let alone corruption and institutional problems. Obviously, their recommendations to get around such roadblocks to doing business include carrying out urgent reforms as necessary. In this context, consider, for instance, the observation of Japan External Trade Organization (JETRO), a Japan government-related body working for Japan's trade and investment promotion abroad. Thanks to the encumbrances its (Japan's) entrepreneurs came up against, the percentage of Japanese companies thinking of expanding business in Bangladesh came down to 61.2 per cent in 2023 from 71.6 per cent in 2022.
Similarly, the quick study conducted by the Japanese Commerce and Industry Association in Bangladesh (JCIAD) on its members in September showed outcomes similar to that found by JETRO. For instance, 18 per cent of the companies thus interviewed identified taxation procedure as a major stumbling block, while 11.9 per cent respondents thought customs, visa and work permit, financial and banking regulations were the main problems. One should not be surprised when some five per cent of the companies suggested reform, particularly to the Registrar of Joint Stock Companies and Firms (RJSC) and the customs department. To be frank, they made no bones about the fact that these government departments asked speed money from the Japanese companies surveyed by JCIAD. This is unfortunate. Those government officials whose greed got the better of their morality did not only demean themselves but also put the entire nation to shame before foreigners. Needless to say, as the companies in question from Japan were not used to such dishonest practice in their country, they simply refused to comply with the outrageous demands from the government officials here leading to inordinate delays and other difficulties in launching and operating their business in Bangladesh.
What the surveys by the companies from Japan found out regarding barriers to doing business in Bangladesh is just the tip of the iceberg. The reforms the interim government has initiated should be thoroughgoing and all-encompassing. At stake here is the building of a proper image of the nation before the rest of the world.