Political stability a must for investors' confidence: Barua
Tuesday, 30 November 2010
FE Report
Industries Minister Dilip Barua said Monday stable political environment is a must for generating confidence among both domestic and foreign investors, as rapid industrialisation largely depends on investment.
"It's urgent to bring about changes in our political culture right now."
Speaking as the chief guest at the inaugural session of a day-long workshop titled 'Implementation Strategy of National Industrial Policy' held at the Sonargaon Hotel, the Industries Minister called upon the business leaders and entrepreneurs to play effective roles in ensuring investment and industry-friendly political environment.
"You can exert influence over the government and political parties for avoiding negative political programmes. I hope, you won't step back in playing the desired role in this regard."
UNDP country representative Stefan Priesner, President of the Metropolitan Chamber of Commerce and Industry (MCCI) Anis Ud Dowla, Bangladesh Chamber of Industries (BCI) ATM Waziullah and Additional Industries Secretary ABM Khorshed Alam addressed the inaugural session of the workshop.
Industries Secretary KH Masud Siddiqui was in the chair.
Addressing the session, Mr Barua said proper attention is needed for the development of non-traditional industries, apart from traditional ones. For this reason, the government has identified cottage industries including small and medium enterprises (SMEs) as priority sectors in the National Industrial Policy-2010, he added.
"We've also identified the private sector as 'principal trust sector' and we hope the private sector will further be strengthened following the new industrial policy," he noted.
He sought proper directives and pragmatic recommendations from all to ensure proper implementation of new industrial policy directives.
Mr Barua said: "It is easy to formulate a policy but it is tough to implement it in right way. We had a number of policies in the past that could not be implemented properly simply because the desire of the people and the realities were not brought into consideration."
UNDP country representative Stefan Priesner sought cooperation from all stakeholders to look into the tasks for transforming the policy into action to reach the goal of the government.
"Very ambitious years are ahead as Bangladesh wants to become one of the Asian economic giants with 10 per cent growth by 2017," he said.
He said the new industrial policy will have to be implemented to stimulate labour-generating growth.
Mr Priesner admitted Bangladesh is facing many challenges including high capital cost, insufficient skills and inadequate energy supply.
"These challenges are urgently needed to be addressed."
He reaffirmed UNDP's continuous support to implement industrial policy and poverty reduction.
In his speech, president of the MCCI Anis Ud Dowla said his chamber could want to see the industrial policy go to parliament and get its approval so that its implementation becomes mandatory.
He said reforms relating to various industrial policy measures in the country were not effective and meaningful, because of inherent bureaucratic complexities, red tape and delays in decision-making.
"Such problems will need to be addressed."
He said the industrial policy suffers from a contradiction as it, on one hand, recognises the role of a vibrant private sector for industrial growth and plans to go ahead with SoEs (state-owned enterprises) and calls for raising their profitability, on the other.
"It is most unlikely that a SoE will ever behave like a profit-earning entity and improve its efficiency," he said.
The MCCI President said market economy cannot thrive in presence of a large number of SoEs and such SoEs will only increase the number of sick industries in the country. He referred to the accumulated experience of mounting losses of SoEs.
"A policy of speedy privatisation appears to us a proper solution of the problems of the ailing SoEs," said Anis Ud Dowla.
He said if the state machinery is able to discharge its responsibility for promoting of good governance, Bangladesh can expect to achieve a double-digit industrial growth in the coming years and move closer to achieving the target of raising the industrial sector's share in gross domestic product (GDP) to 35-40 per cent in the next decade as set by the Industrial Policy-2010.
The MCCI chief said industrial policy could not be implemented until the factors such as energy shortage, poor infrastructure, tighter bank credit, poor foreign direct investment and deteriorating law and order are addressed.
He said these factors vitiated the overall business environment, discouraged foreign investors and hindered industrial activity in the country.
Mr Dowla suggested downsizing the number of thrust and service industries list so that incentives could be channelled to the industrial sectors on their performance and contribution to the economy.
Industries Minister Dilip Barua said Monday stable political environment is a must for generating confidence among both domestic and foreign investors, as rapid industrialisation largely depends on investment.
"It's urgent to bring about changes in our political culture right now."
Speaking as the chief guest at the inaugural session of a day-long workshop titled 'Implementation Strategy of National Industrial Policy' held at the Sonargaon Hotel, the Industries Minister called upon the business leaders and entrepreneurs to play effective roles in ensuring investment and industry-friendly political environment.
"You can exert influence over the government and political parties for avoiding negative political programmes. I hope, you won't step back in playing the desired role in this regard."
UNDP country representative Stefan Priesner, President of the Metropolitan Chamber of Commerce and Industry (MCCI) Anis Ud Dowla, Bangladesh Chamber of Industries (BCI) ATM Waziullah and Additional Industries Secretary ABM Khorshed Alam addressed the inaugural session of the workshop.
Industries Secretary KH Masud Siddiqui was in the chair.
Addressing the session, Mr Barua said proper attention is needed for the development of non-traditional industries, apart from traditional ones. For this reason, the government has identified cottage industries including small and medium enterprises (SMEs) as priority sectors in the National Industrial Policy-2010, he added.
"We've also identified the private sector as 'principal trust sector' and we hope the private sector will further be strengthened following the new industrial policy," he noted.
He sought proper directives and pragmatic recommendations from all to ensure proper implementation of new industrial policy directives.
Mr Barua said: "It is easy to formulate a policy but it is tough to implement it in right way. We had a number of policies in the past that could not be implemented properly simply because the desire of the people and the realities were not brought into consideration."
UNDP country representative Stefan Priesner sought cooperation from all stakeholders to look into the tasks for transforming the policy into action to reach the goal of the government.
"Very ambitious years are ahead as Bangladesh wants to become one of the Asian economic giants with 10 per cent growth by 2017," he said.
He said the new industrial policy will have to be implemented to stimulate labour-generating growth.
Mr Priesner admitted Bangladesh is facing many challenges including high capital cost, insufficient skills and inadequate energy supply.
"These challenges are urgently needed to be addressed."
He reaffirmed UNDP's continuous support to implement industrial policy and poverty reduction.
In his speech, president of the MCCI Anis Ud Dowla said his chamber could want to see the industrial policy go to parliament and get its approval so that its implementation becomes mandatory.
He said reforms relating to various industrial policy measures in the country were not effective and meaningful, because of inherent bureaucratic complexities, red tape and delays in decision-making.
"Such problems will need to be addressed."
He said the industrial policy suffers from a contradiction as it, on one hand, recognises the role of a vibrant private sector for industrial growth and plans to go ahead with SoEs (state-owned enterprises) and calls for raising their profitability, on the other.
"It is most unlikely that a SoE will ever behave like a profit-earning entity and improve its efficiency," he said.
The MCCI President said market economy cannot thrive in presence of a large number of SoEs and such SoEs will only increase the number of sick industries in the country. He referred to the accumulated experience of mounting losses of SoEs.
"A policy of speedy privatisation appears to us a proper solution of the problems of the ailing SoEs," said Anis Ud Dowla.
He said if the state machinery is able to discharge its responsibility for promoting of good governance, Bangladesh can expect to achieve a double-digit industrial growth in the coming years and move closer to achieving the target of raising the industrial sector's share in gross domestic product (GDP) to 35-40 per cent in the next decade as set by the Industrial Policy-2010.
The MCCI chief said industrial policy could not be implemented until the factors such as energy shortage, poor infrastructure, tighter bank credit, poor foreign direct investment and deteriorating law and order are addressed.
He said these factors vitiated the overall business environment, discouraged foreign investors and hindered industrial activity in the country.
Mr Dowla suggested downsizing the number of thrust and service industries list so that incentives could be channelled to the industrial sectors on their performance and contribution to the economy.