Businesses keen to see futuristic economic policies to become attractive regional economy
Ibrahim Hossain Ovi and Niaz Mahmud
- Published at 10:26 pm November 18th, 2018
Pledge for strengthening key monetary institutions, eliminating corruption, long-term investment policy
Industrialists and economists urged major political parties to come up with strong political agenda to turn the local economy into a regional business hub, with pledges to address institutional weakness of key monetary institutions, pervasive corruption and deliver a long-term investment policy in their election manifestos.
While the main political parties are in the process of drafting manifestos in the run up to the December 30 national elections, the chamber leaders urged to prioritise economic policies over political issues to steer the economy to double-digit growth trajectory.
“The economy needs massive investment to take the country to a middle income nation. To allure the local and foreign investment, the next government must have a vision to improve the ease of doing business index with holistic reforms in bad regulations,” FBCCI president Shafiul Islam Mohiuddin told the Dhaka Tribune.
“The enhanced investment will turn our local economy into an attraction for regional business, which eventually creates jobs opportunity for millions of unemployed youth.”
Another chamber leader said as the incumbent government opened the Chittagong sea port for Indian business people, the opportunity should equally apply to other South Asian economies. If election manifestos focus on the transborder business model, foreign investors would be lured to invest in Bangladesh to grab huge local and mammoth Indian consumer market.
“You need a policy for an economic transformation; you need a vision to go beyond the territory to improve the lots of your voters, and draw a optimistic future for the youth,” the chamber leader said.
He said like the recent corporate tax cut in the USA was announced in the election manifesto of the Republican Party,
Bangladesh political parties also should focus on lowering corporation tax to expand business and open door for huge job creation.
“Crucial economic agendas and taxation policies should get a room in the election manifestos of main political parties.”
Ahead of 11th parliamentary election, the Dhaka Tribune talked to the country’s leading business people and economists about what they want to see in the election manifestos of major political parties.
Meanwhile, the economists stressed on more investment on human resource development to meet the demand of skilled and technical experts, the need for the industry to escalate the value addition in manufacturing sector.
They also wanted to have political commitment on carrying reforms to ease the rules and regulations centring business and investment.
In addition, both economists and business leaders called for continuation of current infrastructure development projects and enhance policy supports to become a developed country.
As per the latest data of the World Bank (WB), in the index of ease of doing business Bangladesh ranked 176th out of 190 countries, the lowest among South Asian nations.
FBCCI President Shafiul Islam Mohiuddin
Bangladesh already has achieved 7.86% GDP growth. It is on the right track of achieving the vision 2021 and 2041. The next government should focus how to take the economy to double-digit growth.
The economic policies towards higher growth should be reflected in the election manifestos of competing political parties.
In making the country poverty free, we have to concentrate on industrialization and double the production capacity to this end.
In keeping the development pace up, the political parties have to have clear indications in their election manifestos, Mohiuddin said.
In addition, focus should be given for proper and timely implementation of mega projects to overcome the infrastructure deficit. We do not want to remain at 176th in ease of doing business index.
In the last fiscal year, Bangladesh investments ratio to GDP was 31.23%, which was 30.51% in the previous year.
Of the total, private investment was 23.26% and public investment was 7.97%.
Meanwhile for the current fiscal year, government has set target scaling up total investment to 33.54% of total GDP.
Of the total, private investment will be 25.15% of GDP while 8.39%will come from public investment.
The president of the apex chamber said the political leaders should focus on transforming the local economy into an everlasting attraction for regional investment to help create job opportunities in the economy.
Centre for Policy Dialogue Research Director Khondaker Golam Moazzem
Corruption is a big factor in doing business as it creates obstacles especially for new entrepreneurs. So, strong political pledges are of paramount importance on reducing the barriers that bar investors to start a new business. Getting a trade license, electricity and gas connection is still time consuming.
Increasing the institutional capacity of the government, so that investors can get services such as credit, utility connections within shorter time, while reform in rules and regulation is a must as the country cannot improve ease of doing business index due to outdated and obsolete laws.
Large infrastructure has taken a shape in the country to some extent. In meeting the demands of skill human resources, there must have political commitment in their manifestos to attract enough investment for creating skilled workforce through training and proper education.
DCCI President Abul Kasem Khan
Bangladesh is the lowest in ease of doing business among South Asian countries. This is because of inadequate infrastructure, lack of good governance and irrational taxation system that encourage irregularities and harassments.
These are the problems for business community, hindering the business as well as new investment. That is why the political parties have to ensure in their manifestos that they would simplify the taxation process and stop corruption of tax officials if voted to power.
For a sustainable development, a long term business policy and continuation of policy should be ensured by political parties in the run up to the ensuing elections and beyond.
The politicians should be very positive in engaging the private sector in policy formulation.
Former MCCI president Nasim Manzur
Providing trade facilities to existing foreign investors, while offering sweetened recipes for the new investors in increasing the investment are needed for attaining the targeted GDP growth.
Development projects should based on long term instead of a five-year-tenure and all the political parties have to have commitments that whoever comes to power the continuation of the ongoing development projects will not be hampered.
In setting the election manifesto, political parties can hold dialogue with the business community, so that they can give inputs to their thoughts in the national development.
Former BGMEA president Abdus Salam Murshedy
Bangladesh economy is an export driven one. So, political stability is crucial in retaining the confidence of global buyers. I think the commitments of political parties should be framed in the way that their political activities would not hamper production in the manufacturing industry and tarnish the country’s image to the global retailers.
He urged the major political parties to prioritise economic policies over political issues to steer the economy to double-digit growth trajectory.
Former caretaker advisor AB Mirza Md Azizul Islam
Due to lack of good governance, discrepancy has increased in the society. So, there is a need for political commitment of their manifestos to reduce the income disparity between rich and poor.
To create massive job opportunity especially for the young generation, there is no alternative to investment. In attracting new investment, infrastructure development is a key issue.
Focus should be given on how the investment environment can be improved as the country is ranked in the lowest category in South Asian countries, according to the World Bank’s ease of doing business index.
Establishing good governance and fixing the major economic institutions would definitely woo both local and foreign investors towards investment and expansion.
https://www.dhakatribune.com/busine...olicies-to-become-attractive-regional-economy
