Corruption is the main problem for businesses in the country. Around 68 per cent of businesspersons in the country see corruption as the topmost problem for trade and commerce. The second ranking problem is an inefficient bureaucracy, as perceived by around 55 per cent. And 46 per cent of the businesspersons identify foreign exchange instability as the third ranking problem.
These problems were highlighted in the executive opinion survey 'The State of the Business Environment in Bangladesh'. The survey was conducted in Bangladesh by the Centre of Policy Dialogue (CPD) with support from the World Economic Forum. The survey findings were released yesterday, Wednesday, at a press briefing held at the CPD office in Dhanmondi of the capital. CDP's research director Khondaker Golam Moazzem shed light on various findings of the survey.
CPD broadly identified 17 problems in the business environment of the country. Other than the top three, the other problems included inadequate infrastructure, high inflation, funding constrictions, limitations, complex tax policy, frequent changes in policies, lack of skilled workforce, lack of innovative capacity, weak ethics in the workforce, high tax rates, climate change, instability of the government, crime and pilferage, prohibitive labour law and poor a public healthcare system.
Among South Asian countries, Bangladesh ranked at the bottom in business environment. It also lagged behind Vietnam, India, Indonesia, Thailand and other competitor countries of Asia
CPD's survey was based on the opinions of businesspersons. The survey was basically conducted to assess and analyse the business environment of 2023. During the survey conducted in May-July last year, the opinions of top officials of 71 different business establishments in Dhaka, Gazipur and Savar were taken. The survey was conducted in partnership with the World Economic Forum. CPD also gathered data for the Bangladesh part of WEA's Future of Growth Report 2023. The 17 problems for business mentioned in the survey findings, are applicable to other countries of the world too. The scale of the problems varies from country to country.
Addressing the media briefing, Khondaker Golam Moazzem said that a businessman had informed them that he had submitted an application for utility service connection, but the size of bribe he was asked to pay was the same as his planned investment. While big businesses manage to somehow deal with the bribes and corruption, it is a serious problem for the small and medium entrepreneurs.
The CPD research director went on to say that along with the old challenges to business, new challenges have cropped up too. He cited the foreign exchange crisis in this regard. All this makes the business environment even more complex. He said that the capacity of some businesspersons had increased, but they were few in number. Unless these problems to trade and commerce were resolved, disparity would increase. The corporate establishments would advance, but the small and medium entrepreneurs would fall back.
According to Khondaker Golam Moazzem, the will to bring an end to bribery and corruption, and to resolve the problems in business, was reflected in the top political echelons, and this was committed in the election manifesto too. Now implementation was required.
The report said that among South Asian countries, Bangladesh ranked at the bottom in business environment. It also lagged behind Vietnam, India, Indonesia, Thailand and other competitor countries of Asia.
CPD put forward 10 recommendations to improve the business environment. Significant among these were drawing up and implementing 100-day, one-year, three-year and five-year plans in various government offices to improve the business environment; establishment of an office of ombudsman; forming certain short-term sector-wise commissions for reforms in banks, the share market and regulatory authorities; setting up an integrated financial transaction sector; modernising the public purchase system, etc.