Private sector needs a level playing field
Sunday, 19 April 2009
Any sensible person, on surveying the conditions for the private sector in Bangladesh, would realise that the monetary and fiscal policies of the country are yet to be geared up adequately in the interest of its development under the private sector.
The last elected government borrowed heavily from the banking system and the public through savings certificates. This widened the fiscal deficit, making it difficult to ensure proper fiscal and monetary discipline. The private sector has also been suffering from shortage of funds to take on entrepreneurial activities while precious resources are diverted to unproductive administrative expenditures of the government.
Systematic policies are now needed to channel funds into the private sector to stimulate it. In many countries, the entrepreneurs are allowed a level playing field, which is vital. They are not spoon-fed, but government policies at least try to keep them competitive. This means that they are given vital supports in areas where they deserve such supports. But our entrepreneurs here are sweepingly or blatantly accused of defaulting on loans when the government's corporations and the state-owned enterprises (SOEs) under them are the worst defaulters in their payments. Why then are the private sector entrepreneurs singled out for blame? Law, to be fair, should apply equally to all.
Government officials get promoted, though the bodies they serve are too burdened with debts not repaid, whereas private sector entrepreneurs are dragged to court in many cases for defaulting on loans due to adverse business conditions and for no lack of intention on their part to repay loans. The lending rates charged on loans are also high. Entrepreneurs are plagued by regular extortion activities, insecurity, insufficient and unreliable power supply, poor infrastructure, inefficient port conditions, etc.
An enabling environment has, therefore, to be created first for the entrepreneurs. They are not to be always made the whipping boys, unfairly.
Saiful Karim
Eskaton, Dhaka
The last elected government borrowed heavily from the banking system and the public through savings certificates. This widened the fiscal deficit, making it difficult to ensure proper fiscal and monetary discipline. The private sector has also been suffering from shortage of funds to take on entrepreneurial activities while precious resources are diverted to unproductive administrative expenditures of the government.
Systematic policies are now needed to channel funds into the private sector to stimulate it. In many countries, the entrepreneurs are allowed a level playing field, which is vital. They are not spoon-fed, but government policies at least try to keep them competitive. This means that they are given vital supports in areas where they deserve such supports. But our entrepreneurs here are sweepingly or blatantly accused of defaulting on loans when the government's corporations and the state-owned enterprises (SOEs) under them are the worst defaulters in their payments. Why then are the private sector entrepreneurs singled out for blame? Law, to be fair, should apply equally to all.
Government officials get promoted, though the bodies they serve are too burdened with debts not repaid, whereas private sector entrepreneurs are dragged to court in many cases for defaulting on loans due to adverse business conditions and for no lack of intention on their part to repay loans. The lending rates charged on loans are also high. Entrepreneurs are plagued by regular extortion activities, insecurity, insufficient and unreliable power supply, poor infrastructure, inefficient port conditions, etc.
An enabling environment has, therefore, to be created first for the entrepreneurs. They are not to be always made the whipping boys, unfairly.
Saiful Karim
Eskaton, Dhaka