Forge 'genuine coalition' for dev, prosperity: EU
Thursday, 27 November 2008
FE Report
Bangladesh should prioritise actions to help improve stability and infrastructure in a bid to attract foreign investors who have 'choices,' a European Union's senior diplomat said Wednesday.
Dr Stephen Frowein, head of the delegation of the European Commission in Dhaka , also said that the country would win back the developed world's confidence and business opportunities if it can forge 'a genuine coalition' for development and prosperity, backed by democracy, governance and commercial dynamism
"You (investors) can't take extra risks," he told the monthly luncheon meeting hosted by American Chamber of Commerce (AmCham) in the city.
"There is a lot of money in the world. Investors have choices-they'll put money here (Bangladesh ) or there. (But) they have objectives to make more money and have good return on their investments. So, factors of stability and good infrastructure are critical to them," he added.
"If this country can assemble a genuine coalition for development and prosperity characterized by sustainable democracy, good governance, string institutions and commercial dynamism, I'm convinced that Bangladesh would win renewed confidence and business opportunities in the EU, US and other markets," he told the business audience.
"And ( Bangladesh ) would take its rightful place amongst middle-income countries far sooner than is presently expected," he added.
Speaking at an AmCham luncheon meeting, Mr Frowein said that stability is one factor to a foreign investor and policy predictability is equally important.
Underlining the importance of infrastructure, the delegation chief added foreign investors want 'a manageable environment' where exists good infrastructure and supply of utilities such as gas and power.
Despite sustaining a near 6.0 per cent growth rate over the last five years and developing a good incentive system, Bangladesh cannot draw in substantial foreign capital. Last fiscal to June, the country netted US$650 million in investments-a figure far below the average of new-emerging Asian tigers such as Vietnam .
The country is also facing serious shortage of power and gas, making it difficult for investors to invest in a big way.
Referring to Bangladesh's interim administration's efforts to restore democracy and the history of confrontational politics, the delegation head said dysfunctional and unstable democracies lose out, by frightening off potential investors and undermining the cultivation of trade links that are essential for survival in a globalised world.
He also referred to the caretaker government's a host of initiatives to foster a congenial business environment and said that the establishment of Better Business Forum, Truth Commission, Regulatory Reform Commission and the reform in Chittagong port must be recognized and applauded.
"It's of course important to acknowledge that the story of Bangladesh in recent years has not been all doom and gloom," the German-born EU diplomat said.
The country has sustained a credible GDP growth rate, millions of new jobs have been created in the apparel sector, he said, adding that real efforts have been made to create a sustainable and prosperous future for other industries in order to ensure that the economy does not remain over-specialised on garments.
"Democracy is helpful and prerequisite to development. And election is an important element of democracy. But that doesn't mean no country can prosper without democracy," he said, responding to a question whether democracy is prerequisite to development.
Bangladesh should prioritise actions to help improve stability and infrastructure in a bid to attract foreign investors who have 'choices,' a European Union's senior diplomat said Wednesday.
Dr Stephen Frowein, head of the delegation of the European Commission in Dhaka , also said that the country would win back the developed world's confidence and business opportunities if it can forge 'a genuine coalition' for development and prosperity, backed by democracy, governance and commercial dynamism
"You (investors) can't take extra risks," he told the monthly luncheon meeting hosted by American Chamber of Commerce (AmCham) in the city.
"There is a lot of money in the world. Investors have choices-they'll put money here (Bangladesh ) or there. (But) they have objectives to make more money and have good return on their investments. So, factors of stability and good infrastructure are critical to them," he added.
"If this country can assemble a genuine coalition for development and prosperity characterized by sustainable democracy, good governance, string institutions and commercial dynamism, I'm convinced that Bangladesh would win renewed confidence and business opportunities in the EU, US and other markets," he told the business audience.
"And ( Bangladesh ) would take its rightful place amongst middle-income countries far sooner than is presently expected," he added.
Speaking at an AmCham luncheon meeting, Mr Frowein said that stability is one factor to a foreign investor and policy predictability is equally important.
Underlining the importance of infrastructure, the delegation chief added foreign investors want 'a manageable environment' where exists good infrastructure and supply of utilities such as gas and power.
Despite sustaining a near 6.0 per cent growth rate over the last five years and developing a good incentive system, Bangladesh cannot draw in substantial foreign capital. Last fiscal to June, the country netted US$650 million in investments-a figure far below the average of new-emerging Asian tigers such as Vietnam .
The country is also facing serious shortage of power and gas, making it difficult for investors to invest in a big way.
Referring to Bangladesh's interim administration's efforts to restore democracy and the history of confrontational politics, the delegation head said dysfunctional and unstable democracies lose out, by frightening off potential investors and undermining the cultivation of trade links that are essential for survival in a globalised world.
He also referred to the caretaker government's a host of initiatives to foster a congenial business environment and said that the establishment of Better Business Forum, Truth Commission, Regulatory Reform Commission and the reform in Chittagong port must be recognized and applauded.
"It's of course important to acknowledge that the story of Bangladesh in recent years has not been all doom and gloom," the German-born EU diplomat said.
The country has sustained a credible GDP growth rate, millions of new jobs have been created in the apparel sector, he said, adding that real efforts have been made to create a sustainable and prosperous future for other industries in order to ensure that the economy does not remain over-specialised on garments.
"Democracy is helpful and prerequisite to development. And election is an important element of democracy. But that doesn't mean no country can prosper without democracy," he said, responding to a question whether democracy is prerequisite to development.