Graft, red tape mar business activities in BD : WEF survey
September 09, 2011 00:00:00
FE Report
Inadequate infrastructure set-up, corruption and inefficient government bureaucracy were the top-most hazardous factors impeding business activity in the country in 2010, according to Global Competitiveness Report of the World Economic Forum (WEF).
The report was formally released Thursday at Centre for Policy Dialogue (CPD) in Dhaka. The flagship report of the WEF was globally unveiled September 7.
The CPD has been conducting the survey based on a questionnaire prepared by WEF since 2001.
The report also said global economic uncertainty, energy price and exchange rate volatility were the top-most problematic external factors in conducting business in Bangladesh.
It said lack of identification of market and buyers, not using technologies and poor access to imported inputs at competitive prices affected exports of the country.
The report, however, ranked Bangladesh at 108, one notch down from the last year's rating, out of 142 counties in the global competitiveness index (GCI).
Addressing the launch of the report, CPD executive director Mustafizur Rahman said: "Actually our position remained unchanged in 2010."
He said: "Bangladesh's scoring has increased to some extent, but this was not enough to pull the rank up."
The report was prepared basing on opinions of 70 leading businesses, covering ready-made garments, pharmaceuticals, jute, leather, financial institutions, real estate and ICT.
The reference period was calendar year 2010, and it was conducted during February-April 2011 period. Ninety per cent of the responding companies situated in the city.
Meanwhile, CPD also conducted a survey styled
'rapid perception survey 2011' while conducting the GCI (Global Competitiveness Index).
Eighty-three per cent of those surveyed were of the view that inflation was one of challenges for the country in 2011.
Sixty-one per cent observed supply of electricity would not increase significantly in 2011.
Fifty-two per cent of the respondents said public-private partnership would be one of the major ways to invest in infrastructure in 2011.
The WEF report said Bangladesh needs sufficient 'push' to the wheel of 'basic requirements'.
It noted that Bangladesh should set a target to lift its ranking upward in a gradual manner.
Bangladesh should set the target to upgrade its ranking to at least 90, it observed.
The report advocated that the first and the most important focus should be put in place on infrastructure, creating efficient public institutions, reducing corruption, and human resource development in order to enhance productivity.
WEF report said strong political stand is required against corruption, wasteful or delayed public spending and strengthening of the local government system.
It also said trade facilitation measures should be strengthened.
Sri Lanka and Cambodia have made substantial progress in their rankings within a short span of time.
A total of 142 countries were included in the survey with inclusion of Haiti, Yemen and Belize.
This year the top 10 ranks are occupied mainly by European nations. Switzerland retained its top position by maintaining the highest scores in basic requirements, efficiency enhancement and innovation and sophistication categories.
Singapore moved up to the second position from the third.
CPD fellow Debapriya Bhattacharya, senior research fellow Khandker Golam Moazzem and Dr Fahmida Khatun were present at the report launching programme.