National image and FDI flow
Tuesday, 20 November 2007
THERE are many determinants of foreign direct investments (FDIs) such as a positive macro-economic environment, sound state of infrastructures, easily trainable workers, good terms and conditions for repatriation of capital and profit by the investors, etc. Bangladesh is not lacking so much in these aspects in relation to its neighbours. In fact, its labour cost is lower than even China or other countries in the South Asian region. Its infrastructures need upgrading and improvement but are not so bad as to divert foreign investments on a large scale. Its macro-economy, excepting some slumps, has been stable on the whole for a long period. The macro-economic indicators have improved in recent years. Besides, the aptitude of its workforce to adapt to the requirements and training of foreign funded enterprises is noted to be relatively good. Certainly, the conditions for FDIs in Bangladesh can be further improved or need to be improved. But the same can be no reasons for greater foreign investments not coming into the country.
Bangladesh should have been a coveted investment destination for foreign investors by now from whatever opportunities it presently extends to them. As to why the investors have not responded yet to these opportunities, one main answer is, it could be that potential investors are mainly ignorant about what this country has on offer for them or they are demotivated by an image problem of the country that does no do justice to it. There is much information gap about Bangladesh abroad. It is not known by many intending investors that Bangladesh has developed a world class export-oriented apparel industry, that it exports high quality shrimp and frozen foods, that it has much potential to make and export a wide range of environmentally friendly products which have rising demand in the world market and that the biggest components of production costs, wages to be paid to labour, are the cheapest by world comparisons in Bangladesh that should help them to be very competitive.
The local press and local correspondents of the foreign media, operating from Bangladesh, should take the lead in reporting extensively the success stories of Bangladesh in the economic spheres instead of emphasising only the negative sides of the country. The chamber bodies should also work together to project the country regularly in favourable light through organising international seminars, publicities in international business media, holding of exhibitions of Bangladeshi products abroad in greater number and circulation of information about the good rates of return from investment in Bangladesh.
The publicities ought to counteract the canard that Bangladesh is a singularly a country riddled with law and order problems and credibly expose it to the foreign investors that law and order conditions in Bangladesh are at least equal to, if not better, other countries of South Asia. A special image polishing drive needs to be launched by all concerned to rub out all negative images that have been created about Bangladesh. There is no denying that Bangladesh is a disaster-prone country. Cyclones and floods do visit the country at regular intervals. So many other countries are also exposed to such natural disasters. But the most positive thing about Bangladesh is the tremendous resilience of its people. But this aspect is hardly noted by the media.
Md Obaidullah
Gulshan, Dhaka
Bangladesh should have been a coveted investment destination for foreign investors by now from whatever opportunities it presently extends to them. As to why the investors have not responded yet to these opportunities, one main answer is, it could be that potential investors are mainly ignorant about what this country has on offer for them or they are demotivated by an image problem of the country that does no do justice to it. There is much information gap about Bangladesh abroad. It is not known by many intending investors that Bangladesh has developed a world class export-oriented apparel industry, that it exports high quality shrimp and frozen foods, that it has much potential to make and export a wide range of environmentally friendly products which have rising demand in the world market and that the biggest components of production costs, wages to be paid to labour, are the cheapest by world comparisons in Bangladesh that should help them to be very competitive.
The local press and local correspondents of the foreign media, operating from Bangladesh, should take the lead in reporting extensively the success stories of Bangladesh in the economic spheres instead of emphasising only the negative sides of the country. The chamber bodies should also work together to project the country regularly in favourable light through organising international seminars, publicities in international business media, holding of exhibitions of Bangladeshi products abroad in greater number and circulation of information about the good rates of return from investment in Bangladesh.
The publicities ought to counteract the canard that Bangladesh is a singularly a country riddled with law and order problems and credibly expose it to the foreign investors that law and order conditions in Bangladesh are at least equal to, if not better, other countries of South Asia. A special image polishing drive needs to be launched by all concerned to rub out all negative images that have been created about Bangladesh. There is no denying that Bangladesh is a disaster-prone country. Cyclones and floods do visit the country at regular intervals. So many other countries are also exposed to such natural disasters. But the most positive thing about Bangladesh is the tremendous resilience of its people. But this aspect is hardly noted by the media.
Md Obaidullah
Gulshan, Dhaka