Editorial
How free is our economy?
Dynamism and vibrancy still missing
BANGLADESH has been ranked 143rd among 157 countries in terms of economic freedom by Heritage Foundation, an ultra conservative American organisation, which is believed to have its own political agenda. So we have to take its evaluation with a grain of salt.
However, whatever might be the value of the ranking, we are yet to overcome many impediments that prevent the essential operational aspects of a market economy coming into full play and are still way behind the standards set by the advanced economies. The number one barrier is a decision making process that is cluttered with bureaucratic rules and regulations, leading invariably to undue procrastination. That is how the element of dynamism is nipped in the bud and the whole process involves too many stages, and the resultant loss of both time and energy, before a project or plan is finally approved or disapproved. So, we have a long way to go before our economy becomes vibrant and competitive enough in today's global context.
Entrepreneurship and investment in our setting designed, at least theoretically, to be conducive for such a purpose have to be promoted through addressing the practical problems that entrepreneurs still face in our country while starting or running any enterprise. Therefore, any reform process has to give top priority to creating an enabling business environment, with the ultimate objective of attracting foreign investment while at the same time boosting the local capital market. Entrepreneurs in highly developed economies are given a lot of freedom despite there being a regulatory framework to ensure social good through maintenance of certain ethical standards. The reference made to corruption being a major area of concern is another reminder of the need for further intensifying the oversight but that without upsetting the equilibrium of the business environment by any fear psychosis.
It is essential to realise that only good rules and regulations won't see us through: what is needed is a buoyant and secure environment at the operative levels. The investors and entrepreneurs need the freedom to translate their innovative ideas into projects. But what they need even more is quick action on the part of the bureaucracy to make the best utilisation of all available resources. We certainly are lagging behind most of our competitors in this particular area.
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