Slow progress in PPP draws criticism

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FE Report
Experts, academics and economists at a seminar on Friday came down heavily on the government for its failure to implement the much talked about public private partnership (PPP) policy for rapid industrial growth.
They observed that the government failed to implement any major project under the PPP over the past one and a half years despite its promise in the last budget.
They also termed it contradictory that the proposed industrial policy calls for raising state owned enterprises (SOE) profitability on one hand and recognizes the role of a vibrant private sector in industrial growth on the other.
They were speaking at a seminar on Industrial Policy 2010: A Critical Appraisal, organised by Islamic Economics Research Bureau (IERB) at the National Press Club.
Chaired by Shah Abdul Hannan, chairman of the IERB, the seminar was also addressed among others by columnist and engineer Fazle Ali, jouranalist Ershad Majumdar, Chittagong University law professor Humayra Islam, former Islami Bank chairman Kazi Harunur Rashid, former joint chief of planning commission Abul Kashem, International Islamic University Dhaka campus head Lokman Hossain and former Islami Bank managing director Abdur Rakib.
AR Bhuyan, former professor of economics department of Dhaka University, presented the keynote paper.
Shah Abdul Hannan said there are certainly good features in the proposed industrial policy, but the mode of their implementations have not been mentioned here.
"Good governance is necessary for successful implementation of industrial policy and industrial growth," said Mr Hannan.
He said no government should force any experienced official into retirement and promote any inexperienced official on political consideration.
In his keynote presentation AR Bhuyan said the government is not a businessman and it does not know how to turn a loss-making enterprise into profitable one.
It is known to all that there is hardly any possibility that SOEs will become profitable entities and improve their efficiency, he said adding: "Also a market economy cannot thrive if there is a large number of SOEs," said Bhuyan.
He said instead of running business the government should be a facilitator.
Necessary regulations pertaining to environment and workers' health and safety should be realistic and implemented efficiently with a periodic review.
Fazle Ali said whatever good policies exist they will be of no use if the basic elements like power, energy and infrastructure required for setting up an industry are not ensured first.
He said industrial growth, foreign direct investment and local investment were much higher five years ago than it is now as these basic elements were in abundance at that time.
"The way the government is awarding various contracts for setting up power plants without due procedure that it will boomerang for the government in future," he said.
Ershad Majumder said it is very unfortunate for the country's small entrepreneurs that the top industrialists are producing and selling consumer items like puffed rice or chanachur, which should be agro-based industrial products.
"Setting up agro-based industry in the rural areas to generate employment should be the thrust sector of the industrial policy, which should bar these big industrialists from owning all types of small and medium enterprises," said Mr Ershad.
Kazi Harunur Rashid said lack of leadership qualities of the politicians and failure to implement industrialisation friendly policies by the concerned officials are the factors responsible for a falling GDP growth since 2004.
He said the government should take a policy to set up labour intensive industries as Bangladesh is an over populated country.