BoI lacks specialists to handle large, complicated proposals

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A Z M Anas
The Board of Investment (BoI) has a staff strength totalling over 250, but the state-owned agency has extremely limited experts to handle large, complicated investment proposals in an increasingly challenging global environment, according to a diagnostic study by the International Finance Corporation (IFC).
"Bangladesh urgently needs a strong and dynamic investment promotion agency to attract new and diversified investment," the study of the World Bank's private lending arm said.
"The agency finds itself in the very paradoxical situation of having over 250 staff but still lacks enough specialist staff equipped with skills to meet the demands of a rapidly changing world," the report added.
"The BoI needs, to the extent possible, staffers who have the ability to inject fresh and creative ideas into the investment promotion agency," the study said.
BoI officials declined to comment on the content and findings of the report, which is an updated version of that of Multilateral Investment Guarantee Agency (MIGA), another wing of the World Bank.
But they said the interim administration has taken initiatives to inject new life into the organisation. The caretaker government has endorsed the BoI's strategic plan to make it a more effective and private sector-friendly organisation.
A source said the bulk of the manpower serving the BoI was assimilated from the now-defunct Department of Industries, most of whom is low-ranking.
The MIGA, in its 2006 Investment Promotion Agency Performance Review, found Bangladesh at the bottom ladder, with BoI ranking 82 out of 114 agencies in the developing world.
One of the major weaknesses of the country's investment board, the report noted, is that it has kept itself confined to regulatory functions while overlooking its broader mandate-making it a real "one stop shop" for investors.
"Despite its broad mandate, the BoI can't function properly. It could do more to evolve into a true, full-service investment promotion agency," Robert White told this correspondent in an interview.
Mr Whyte, a World Bank official assigned to find a way forward for the investment board, catalogued a series of weaknesses impairing the BoI, including the absence of targeted promotional activities and investors' aftercare.
"Countries who scored higher, such as Thailand and Philippines , did well in part because they made a clear distinction between the regulatory role and the investment promotion role," the report said.
He said that the agency's promotional efforts overseas have provoked interests among potential investors but it lacks right tools and resources to ensure that "interests are converted into actual investments."
The World Bank official noted that the country needs to set target of investments and investment inquiries.
"Attract potential investors and pursue them to visit ( Bangladesh ). You can get one to two investments out of at least 10 inquiries," the investment analyst said.
Over the last couple of years, Bangladesh missed out the opportunity to translate multi-billion-dollar investment proposals into the actual investment, notably of India 's industrial giant Tata Group and UK 's Asia Energy.
In the financial year 2008, Bangladesh netted foreign capital worth US$650 million that accounts for less than 1.0 per cent of gross domestic product or GDP.
Mr Whyte listed investor facilitation, investment promotion, investor aftercare and investment policy advocacy as key areas to help expand the BoI's roles.
Underlining the need for policy advocacy, the study said it requires a policy capability to enable the BoI to represent investors' views better, becoming a focal point for assessing regulatory bottlenecks and identifying and advocating regulatory streamlining actions.