Graft serious barrier to BD economic growth: US

The United States has said Bangladesh offers opportunities for investment but corruption remains a serious impediment to its investment and economic growth. The US made the observation in its Investment Climate Statement 2015 on Bangladesh mentioning that Bangladesh witnessed over 6 per cent annual growth sustained over the past two and a half decades having a large, young and hard-working workforce, and vibrant private sector. The Department issued the first of its 2015 Investment Climate Statements, providing country-specific information and assessments on investment-related laws and other important factors for doing business abroad. US embassies and consulates prepare these public documents, which cover more than 175 foreign markets, to assist US companies to make informed decisions regarding investment in foreign markets. It says Bangladesh offers opportunities for investment, especially in the energy, power, pharmaceutical, information technology, telecommunications, and infrastructure sectors as well as in labour-intensive industries such as readymade garments, household textiles, and leather processing. Land registration has historically been prone to disputes over competing titles, and scarcity of land is a significant investment constraint, said the statement adding that political turmoil in the aftermath of the January 2014 elections and subsequent one year anniversary in January 2015 has resulted in some investment delays or cancellations. While the government has established legislation to combat bribery, embezzlement and other forms of corruption, enforcement is inconsistent, it said. The current Awami League-led government has publicly underscored its commitment to anti-corruption efforts and reaffirmed the need for a strong ACC. However, efforts to ease public procurement rules and a recent constitutional amendment that reduced the independence of the ACC may undermine institutional safeguards against corruption. Corruption, including bribery, raises the costs and risks of doing business. By some estimates, off-the-record payments by firms may result in an annual reduction of two to three percent of GDP, said the statement. “Corruption has a corrosive impact on the broader business climate market and opportunities for US companies in Bangladesh. It also deters investment, stifles economic growth and development, distorts prices, and undermines the rule of law,” it says. The government of Bangladesh actively seeks foreign investment, particularly in the apparel industry, energy, power, and infrastructure projects, according to UNB.