Editorial
Bangladesh's global competitiveness ranking
Some basis to improve our position on
CLOSE on the heels of our dipping in the World Bank Doing Business and Unctad's Global Investment indices, our ranking in the Global Competitiveness Report (GCR) 2008-09 of the World Economic Forum (WEF) comes as an eye-opener to a bind we are caught up in.
There is a pattern to the downswing in our competitiveness standing: from 92nd position among 122 countries in 2006-07, we slid to 107th amongst 131 countries in 2007-08 and now in 2008 our ranking has dropped to 111th out of 134 countries. Even though there may be questions about the scientific basis and methodologies followed in working out such rankings, the fact that assessments are based on comparative studies make them useful indicators of business and investment climate and trends across the globe. Potential entrepreneurs could use them as a tool for making investment decisions; that's where its relevance lies for us.
It is ironical despite the reform measures by the caretaker government to enhance the efficiency of public institutions, the latter's performance is yet to improve significantly. Much as the implementation capacity of the institutions has not improved so also the gap between the government and the businesses has widened.
Admittedly, business confidence, shaken following the crackdown on corruption, is yet to bounce back fully. Despite the anti-hoarding and consumer protection moves, a few companies still control the market due to lack of proper policies. We suggest a competition policy be dovetailed to the consumer protection law.
While Chittagong Port's efficiency level has been markedly raised, the energy sector remains the Achilles heel. Besides, bank financing has been hard to come by and institutional corruption remains a barrier.
The Better Business Forum and the Deregulation Commission are yet to make their presence felt with their recommendations being still in the offing, let alone implemented. There is no doubt that bureaucratic procedures are too cluttered for quick decision-making on business and investment.
If political unrest had been a hindrance earlier on, the election having been on hold for nearly two years had had its bearing on investment. Now that the election dates have been announced, an environment congenial to investment should be engendered.
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