Editorial
Global competitiveness
Going five notches up is good, but not enough
BANGLADESH'S standing has gone five notches up, according to the Global Competitiveness Report, which is an indicator of the overall investment and business climate prevailing in a country. It is good news since low global competitiveness has always been a stumbling block insofar as foreign investment here is concerned. However, the overall 106th position out of the 133 countries surveyed is still not satisfactory, as most of the other countries in the region have done better, with India finishing among the top 50.
As the report says poor infrastructure is the number one drawback faced by the investors. Obviously, investors look for facilities like efficient communications networks and reliable supply of power which remains a sore point in our scheme of development. The decision makers have to take note of the observations made in the report and take remedial measures. Of course infrastructure development is a longer-term issue which cannot be addressed overnight. But the report has indeed pointed out the areas the government must address on a priority basis.
The observations made by Dr Debapriya Bhattacharya, Fellow of Centre for Policy Dialogue, on this issue need to be examined closely. He has said that problems like weak infrastructure, corruption and an inefficient bureaucracy might become structural deficiencies unless these are addressed with a sense of urgency. What it boils down to is that we need a far more dynamic, efficient and corruption-free bureaucracy along with the much needed facilities for the investors to have a competitive edge over other developing countries. He further observed that the anti-corruption drive in 2008 was not that successful but still insisted on identifying poor infrastructure as an even greater problem than corruption. However, we believe that eliminating corruption should be as high on the government's agenda as building the infrastructure that would facilitate trade and commerce.
The country is now doing better in macro-economic management and has attained a measure of economic stability which have helped it improve its position. So, the picture is not all bleak. But the global competitiveness ranking should be regarded as something more than just a conceptual matter having little bearing on trade and investment. The countries today are fighting hard to attract foreign investment and make the best out of the limited basket through offering all kinds of facilities to foreign investors. That we still do not have the needed infrastructure makes it clear that the issue was never dealt with in light of global developments. We must now lay due emphasis on it.
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