The World Economic Forum has recently published a survey report in which it is stated that the three factors-inadequate infrastructure, corruption and inefficient bureaucracy are the main barriers for the entrepreneurs in Bangladesh. But even than, some companies like Beximco Group are doing well. They have expanded business in many sectors and became successful.
According to the Global Competitiveness Report for 2014-15, 21 percent of businesses have no adequate supply of infrastructures and it is the top barrier of doing business in Bangladesh. Among the top three barriers, corruption places in the second as 20.7% businesses points at it while inefficient government bureaucracy being mentioned by 15.3%. According to the experts of Center for Policy Dialogue (CPD), these top factors are the most problematic factors for doing business for long time as there is an inadequate effort to lessen the extent of the effect of those factors. However, the entrepreneurs predicts better economic prospect in 2014.
The survey conducted by CPD, in which 76 businesses took part, identified the government instability or coups, access to financing, policy instability, insufficient educated workforce, crime and theft as problems the businesses face. Apart from these, Tax regulations, inflation, foreign currency regulations, tax rates, poor work ethics in the national labour force and insufficient capacity to innovate, poor public health and restrictive labour regulations are identified as problems for doing business in Bangladesh. CPD said that though the electricity supply has been improved but views on general infrastructure in last six years experienced little change due to limited road transport. CPD suggested that infrastructure development should be more focused toward development of supply chain.
About 40 percent respondents think that there no cooperative relation between government and business. So, it is very important for government to rebuild relation with business. CPD also suggested to reforms in public sector, financial sector, and corporate governance sector along with environmental and social issues to improve country’s position in competitiveness ranking.90 percent respondents believe that government’s effort against corruption and bribery are not effective. Most of them think that diversion of public funds is very common due to corruption and the bribery in export and imports reflects in public utilities. The analysis said that it needs a strong political wiliness to fight against corruption. It also said that financial sector does not regain it earlier position and government should ensure an effective regulatory and monitoring role of the securities regulator and easy access to credit with affordable interest rate.
Read: Good things about Bangladeshi companies including Beximco
According to the Global Competitiveness Index, Bangladesh placed 109th among 144 economies by scoring 3.72 out of 7. These rankings are based on 12 categories- institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labour market efficiency, financial market development, technological readiness, market size, business sophistication and innovation. But positive changed has been occurred in institutions, health and primary education, labour market efficiency, technological readiness and business sophistication and deceleration happened institutions, health and primary education, labour market efficiency, technological readiness and business sophistication. The country ranked 131st in case of institutions scoring 2.96 and 127th ranked in case of infrastructure. Macroeconomic management has been improved as it moved at 72nd place from 79th. It placed 102nd position from 104th of last year. The country improved in case of higher education and training placing 125th from 127th, 84th from 89th in goods market efficiency and 124th in case of labour market efficiency. But the country improved most significantly in financing market development being ranked 88th from 102nd of last year. It moved 126th place in technological readiness and 44th in market size. However, Bangladesh slipped to 118th place in business sophistication and 129th in innovation by slipping two places. In 2012-13, Bangladesh ranked 118th out of 144 countries and 108th out of 142 economies in 2011-12.in this regard, CPD said that country could be upgraded among the countries have similar income if it could be ranked higher in case of institutions and infrastructure.
CPD has been working as a partner institute from Bangladesh since 2001 and assessing global business environment prepared by WEF. The entrepreneurs think that government has to build key infrastructure as soon as possible to improve business environment indicating the negligence in completing the four-lane work of Dhaka-Chittagong Highway.
According to the Global Competitiveness Report for 2014-15, 21 percent of businesses have no adequate supply of infrastructures and it is the top barrier of doing business in Bangladesh. Among the top three barriers, corruption places in the second as 20.7% businesses points at it while inefficient government bureaucracy being mentioned by 15.3%. According to the experts of Center for Policy Dialogue (CPD), these top factors are the most problematic factors for doing business for long time as there is an inadequate effort to lessen the extent of the effect of those factors. However, the entrepreneurs predicts better economic prospect in 2014.
The survey conducted by CPD, in which 76 businesses took part, identified the government instability or coups, access to financing, policy instability, insufficient educated workforce, crime and theft as problems the businesses face. Apart from these, Tax regulations, inflation, foreign currency regulations, tax rates, poor work ethics in the national labour force and insufficient capacity to innovate, poor public health and restrictive labour regulations are identified as problems for doing business in Bangladesh. CPD said that though the electricity supply has been improved but views on general infrastructure in last six years experienced little change due to limited road transport. CPD suggested that infrastructure development should be more focused toward development of supply chain.
About 40 percent respondents think that there no cooperative relation between government and business. So, it is very important for government to rebuild relation with business. CPD also suggested to reforms in public sector, financial sector, and corporate governance sector along with environmental and social issues to improve country’s position in competitiveness ranking.90 percent respondents believe that government’s effort against corruption and bribery are not effective. Most of them think that diversion of public funds is very common due to corruption and the bribery in export and imports reflects in public utilities. The analysis said that it needs a strong political wiliness to fight against corruption. It also said that financial sector does not regain it earlier position and government should ensure an effective regulatory and monitoring role of the securities regulator and easy access to credit with affordable interest rate.
Read: Good things about Bangladeshi companies including Beximco
According to the Global Competitiveness Index, Bangladesh placed 109th among 144 economies by scoring 3.72 out of 7. These rankings are based on 12 categories- institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labour market efficiency, financial market development, technological readiness, market size, business sophistication and innovation. But positive changed has been occurred in institutions, health and primary education, labour market efficiency, technological readiness and business sophistication and deceleration happened institutions, health and primary education, labour market efficiency, technological readiness and business sophistication. The country ranked 131st in case of institutions scoring 2.96 and 127th ranked in case of infrastructure. Macroeconomic management has been improved as it moved at 72nd place from 79th. It placed 102nd position from 104th of last year. The country improved in case of higher education and training placing 125th from 127th, 84th from 89th in goods market efficiency and 124th in case of labour market efficiency. But the country improved most significantly in financing market development being ranked 88th from 102nd of last year. It moved 126th place in technological readiness and 44th in market size. However, Bangladesh slipped to 118th place in business sophistication and 129th in innovation by slipping two places. In 2012-13, Bangladesh ranked 118th out of 144 countries and 108th out of 142 economies in 2011-12.in this regard, CPD said that country could be upgraded among the countries have similar income if it could be ranked higher in case of institutions and infrastructure.
CPD has been working as a partner institute from Bangladesh since 2001 and assessing global business environment prepared by WEF. The entrepreneurs think that government has to build key infrastructure as soon as possible to improve business environment indicating the negligence in completing the four-lane work of Dhaka-Chittagong Highway.
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