Enhancing the business competitiveness
Saturday, 11 October 2008
Enayet Rasul
THERE is hardly scope to read much -- either negative or positive -- in the global business competitive index that was released last Wednesday. It found Bangladesh sliding down by some four stairs from the previous rating. But more countries were included in the latest rating since then. That means the slide, a relatively small one, signifies more a situation of 'stagnancy' in these international comparisons that measures business competitiveness. However, there is no room for complacency from noting that there has not been a major slide or conditions have not deteriorated in a concern raising manner. The running of the country by a government committed to reforms and anti-graft measures, plus its claimed technocratic nature, certainly created a great deal of more expectation in this area. The same has not been fulfilled and, therefore, the big need is take stock of what are the greatest factors holding back upward movement in the business competitiveness and to work on them harder.
The incumbent government still has some months to go before giving up power. It will remain busy with the holding of the high priority national elections. But doing that task would not mean that it would have no capacities to try and complete as much business related reforms, as possible, within the time left to it. After all, it has set up institutional mechanisms such as the Better Business Forum (BBF) and the Regulatory Reforms Commission (RRC) to that end. Government should go ahead and implement fully the proposals that have been made through these forums at the fastest. In other cases, where the proposals are in the process of formulation, the same can be speeded up.
Although the report on business competitiveness of Bangladesh did not highlight it, it should be obvious that the present energy starved conditions pose the greatest immediate damper to business aspirations. Functional industries or enterprises remain under a severe pressure to operate well under the present situation of dearth of power and gas supply. In many cases, industries which have been set up are failing to go into production because of the energy crunch. Potential investment plans are getting shelved for the same reasons. Thus, the highest priority needs to be put on urgently improving energy supply.
The present government will not have time to do anything dramatically to increase energy supply. It has clearly performed poorly during the last nearly two years in this respect. But it can at least embark on a crash programme in its remaining days to leave behind conditions for the successor government to be able to go for gas and power related projects at a faster pace.
Political certainty is also a very big factor. Once businesses get clear signals about the surety of holding the national polls, the peaceful nature of that event and the equally peaceful transition of power to an elected government without the hiccups that the new government would soon face a challenge of legitimacy to its rule, the sooner confidence rises about such positive developments, businesses then can be expected to respond strongly and favourably to such a scenario with more investment activities. Therefore, the government needs to remain very focused on this goal not only for brightening the political horizon but the business one as well.
THERE is hardly scope to read much -- either negative or positive -- in the global business competitive index that was released last Wednesday. It found Bangladesh sliding down by some four stairs from the previous rating. But more countries were included in the latest rating since then. That means the slide, a relatively small one, signifies more a situation of 'stagnancy' in these international comparisons that measures business competitiveness. However, there is no room for complacency from noting that there has not been a major slide or conditions have not deteriorated in a concern raising manner. The running of the country by a government committed to reforms and anti-graft measures, plus its claimed technocratic nature, certainly created a great deal of more expectation in this area. The same has not been fulfilled and, therefore, the big need is take stock of what are the greatest factors holding back upward movement in the business competitiveness and to work on them harder.
The incumbent government still has some months to go before giving up power. It will remain busy with the holding of the high priority national elections. But doing that task would not mean that it would have no capacities to try and complete as much business related reforms, as possible, within the time left to it. After all, it has set up institutional mechanisms such as the Better Business Forum (BBF) and the Regulatory Reforms Commission (RRC) to that end. Government should go ahead and implement fully the proposals that have been made through these forums at the fastest. In other cases, where the proposals are in the process of formulation, the same can be speeded up.
Although the report on business competitiveness of Bangladesh did not highlight it, it should be obvious that the present energy starved conditions pose the greatest immediate damper to business aspirations. Functional industries or enterprises remain under a severe pressure to operate well under the present situation of dearth of power and gas supply. In many cases, industries which have been set up are failing to go into production because of the energy crunch. Potential investment plans are getting shelved for the same reasons. Thus, the highest priority needs to be put on urgently improving energy supply.
The present government will not have time to do anything dramatically to increase energy supply. It has clearly performed poorly during the last nearly two years in this respect. But it can at least embark on a crash programme in its remaining days to leave behind conditions for the successor government to be able to go for gas and power related projects at a faster pace.
Political certainty is also a very big factor. Once businesses get clear signals about the surety of holding the national polls, the peaceful nature of that event and the equally peaceful transition of power to an elected government without the hiccups that the new government would soon face a challenge of legitimacy to its rule, the sooner confidence rises about such positive developments, businesses then can be expected to respond strongly and favourably to such a scenario with more investment activities. Therefore, the government needs to remain very focused on this goal not only for brightening the political horizon but the business one as well.