Declining competitiveness
Sunday, 4 November 2007
BANGLADESH's scores in global surveys on corruption perception index or business competitiveness or on any other social as well as economic issue have been poor and, in some cases, embarrassing. The country was placed at the top of the list of the most corrupt nations for five consecutive years in the recent past by the global graft watchdog, the Transparency International. As far as the results of the international surveys on other social and economic issues are concerned, its positions have been like that of the proverbial monkeys attempt to scale up an oily bamboo pole- one point up this moment, two points down in the next. Notwithstanding the fact there are lots of questions about the methods and sources of information used in such surveys, their results do have an impact on the decision made by the international investors, financial institutions and bilateral and multilateral donors.
In keeping with the tradition, the position of Bangladesh deteriorated in both global competitiveness index (GCI) and business competitiveness index (BCI) prepared by the World Economic Forum(WEF) for the period between February, 2006 and January 2007. Its position went down by 15 points and 19 points respectively in GCI and BCI indices over those maintained in the previous year. While releasing the report last Thursday, executive director of the Centre for Policy Dialogue (CPD), Mustafizur Rahman, lamented that there was not even a single indicator where Bangladesh could improve its performance in 2006 compared to that of the previous year. Rather, in terms of some indicators such as institutions, higher education and training, according to the WEF report, Bangladesh was ranked among the 10 bottom countries.
There is no denying that high incidence of corruption at all levels made the situation unbearable in 2006 like the case in the previous years and the businessmen for securing contracts and other businesses had to be a part of the process. However, an improvement in the BCI ranking next year could be expected because of the ongoing anti-graft drive and other reform measures. But much would depend on the contents of the interviews of top Bangladeshi business executives that are taken as input for the WEF report. It is to be seen how the business executives look at the drive against corruption, the vice that they had blamed most for vitiating business environment and imposing an extra cost on them for doing business.
The WEF has taken into consideration a number of factors while deciding on the positions of various countries, including Bangladesh, in the GCI. The report noted that there had been deterioration in health and primary education, market-size, infrastructure, macro-economic stability, financial market sophistication, innovation and higher education and training. One may find it hard to accept the WEF observations relating to developments in some particular areas such as health, primary education and macro-economic stability. For, the claim made by the WEF about deterioration in those areas contradicts the findings of the multilateral lenders such as the World Bank and the Asian Development Bank and the United Nations Development Programme. Bangladesh has received accolades for its consistent improvement in human development index, which is even better than that of India, the regional economic superpower. Despite political turmoil in the final months, the macro-economic stability had remained unaffected and the country posted a 6.5 per cent GDP growth in the last fiscal. Despite all odds, Bangladesh has achieved an enviable success so far as its macro-economic stability is concerned. Since the annual report of an organisation such as the WEF leaves an impact on international investors and financial institutions, it is expected that it would try to get the real picture of the situation prevailing in the countries that are covered by the report.
In keeping with the tradition, the position of Bangladesh deteriorated in both global competitiveness index (GCI) and business competitiveness index (BCI) prepared by the World Economic Forum(WEF) for the period between February, 2006 and January 2007. Its position went down by 15 points and 19 points respectively in GCI and BCI indices over those maintained in the previous year. While releasing the report last Thursday, executive director of the Centre for Policy Dialogue (CPD), Mustafizur Rahman, lamented that there was not even a single indicator where Bangladesh could improve its performance in 2006 compared to that of the previous year. Rather, in terms of some indicators such as institutions, higher education and training, according to the WEF report, Bangladesh was ranked among the 10 bottom countries.
There is no denying that high incidence of corruption at all levels made the situation unbearable in 2006 like the case in the previous years and the businessmen for securing contracts and other businesses had to be a part of the process. However, an improvement in the BCI ranking next year could be expected because of the ongoing anti-graft drive and other reform measures. But much would depend on the contents of the interviews of top Bangladeshi business executives that are taken as input for the WEF report. It is to be seen how the business executives look at the drive against corruption, the vice that they had blamed most for vitiating business environment and imposing an extra cost on them for doing business.
The WEF has taken into consideration a number of factors while deciding on the positions of various countries, including Bangladesh, in the GCI. The report noted that there had been deterioration in health and primary education, market-size, infrastructure, macro-economic stability, financial market sophistication, innovation and higher education and training. One may find it hard to accept the WEF observations relating to developments in some particular areas such as health, primary education and macro-economic stability. For, the claim made by the WEF about deterioration in those areas contradicts the findings of the multilateral lenders such as the World Bank and the Asian Development Bank and the United Nations Development Programme. Bangladesh has received accolades for its consistent improvement in human development index, which is even better than that of India, the regional economic superpower. Despite political turmoil in the final months, the macro-economic stability had remained unaffected and the country posted a 6.5 per cent GDP growth in the last fiscal. Despite all odds, Bangladesh has achieved an enviable success so far as its macro-economic stability is concerned. Since the annual report of an organisation such as the WEF leaves an impact on international investors and financial institutions, it is expected that it would try to get the real picture of the situation prevailing in the countries that are covered by the report.