Bangladesh has ranked 110th in the Global Competitiveness Report (GCR) 2005-06 covering 117 countries, eight notches down from last year's ranking.
India and Pakistan have improved their positions in the ranking to 50th and 83rd this year from last year's 55th and 91st. Bangladesh ranked 102nd among 104 countries in the GCR 2004-05.
The country's ranking would change marginally to 101st this year from last year's 102nd if the GCR would cover the same countries. This shows many new entrants to the survey are better placed than Bangladesh.
Releasing the GCR simultaneously with other countries, Dr Debapriya Bhattacharya, executive director of the Centre for Policy Dialogue, told newsmen at the CPD office in Dhaka the countries that are behind Bangladesh are facing conflicts or some other problems and volatility.
"Overall picture is deteriorating in Bangladesh compared to the global situation. Corruption and governance still remain major problems here," he mentioned. "There is no change in perception. We can change the perception by changing the reality."
The country is experiencing a deteriorating trend in investment and the business environment index, he said. The government is suffering from indecision, and policy instability is a cause for increasing concern about business environment.
Bangladesh ranked the lowest among 117 countries this year both in the corruption sub-index and the public institution index.
The Growth Competitiveness Index (GCI) of 2005 and 2004 shows change in the country credit rating in Bangladesh, which was negative five percent, had been the worst.
The CPD in collaboration with the World Economic Forum has been assessing the business competitiveness environment in Bangladesh since 2001. The GCR deals with two broad indicators the GCI and Business Competitiveness Index (BCI). This year's survey covered 93 companies in Bangladesh, which are contributing most to the national economy, Debapriya said.
According to the survey, the graft situation has further deteriorated. Most of the respondents cited corruption as the most important determining factor affecting the business environment. The overall composition of public spending is wasteful and the situation remains unchanged, they pointed out.
Public trust in the financial honesty of politicians is still very low but slightly improved in 2005. In terms of illegal payments to influence government policies, laws, regulations, and diversion of public funds to companies, the situation deteriorated, it mentioned.
Apart from corruption, four other top determining factors mentioned in the study are inefficient bureaucracy, inadequate infrastructure, policy instability and crime and theft.
About freedom of press, the study said ability to publish or broadcast news without fear of censorship or retaliation has slid to good from better and the judicial system is heavily influenced by political interference.
Debapriya mentioned that these are not the CPD's views. Rather, what the entrepreneurs are thinking has been reflected in the survey "It does not mean that Bangladesh did not improve in any area. We are doing good but not enough," he added.
Low cost of labor and natural resources still continue to be major competing factors for Bangladesh, the CPD executive director said. Investment, production and export are good but it is not better than last year's. Strengthening corporate governance has become essential.
The survey was designed to cover relatively large companies with total assets of at least Tk 10 crore. These include 46 manufacturing companies, 13 financial institutions, 7 Real estate and construction firms, 8 ICT enterprises, 7 transport and engineering firms and 12 others.
India and Pakistan have improved their positions in the ranking to 50th and 83rd this year from last year's 55th and 91st. Bangladesh ranked 102nd among 104 countries in the GCR 2004-05.
The country's ranking would change marginally to 101st this year from last year's 102nd if the GCR would cover the same countries. This shows many new entrants to the survey are better placed than Bangladesh.
Releasing the GCR simultaneously with other countries, Dr Debapriya Bhattacharya, executive director of the Centre for Policy Dialogue, told newsmen at the CPD office in Dhaka the countries that are behind Bangladesh are facing conflicts or some other problems and volatility.
"Overall picture is deteriorating in Bangladesh compared to the global situation. Corruption and governance still remain major problems here," he mentioned. "There is no change in perception. We can change the perception by changing the reality."
The country is experiencing a deteriorating trend in investment and the business environment index, he said. The government is suffering from indecision, and policy instability is a cause for increasing concern about business environment.
Bangladesh ranked the lowest among 117 countries this year both in the corruption sub-index and the public institution index.
The Growth Competitiveness Index (GCI) of 2005 and 2004 shows change in the country credit rating in Bangladesh, which was negative five percent, had been the worst.
The CPD in collaboration with the World Economic Forum has been assessing the business competitiveness environment in Bangladesh since 2001. The GCR deals with two broad indicators the GCI and Business Competitiveness Index (BCI). This year's survey covered 93 companies in Bangladesh, which are contributing most to the national economy, Debapriya said.
According to the survey, the graft situation has further deteriorated. Most of the respondents cited corruption as the most important determining factor affecting the business environment. The overall composition of public spending is wasteful and the situation remains unchanged, they pointed out.
Public trust in the financial honesty of politicians is still very low but slightly improved in 2005. In terms of illegal payments to influence government policies, laws, regulations, and diversion of public funds to companies, the situation deteriorated, it mentioned.
Apart from corruption, four other top determining factors mentioned in the study are inefficient bureaucracy, inadequate infrastructure, policy instability and crime and theft.
About freedom of press, the study said ability to publish or broadcast news without fear of censorship or retaliation has slid to good from better and the judicial system is heavily influenced by political interference.
Debapriya mentioned that these are not the CPD's views. Rather, what the entrepreneurs are thinking has been reflected in the survey "It does not mean that Bangladesh did not improve in any area. We are doing good but not enough," he added.
Low cost of labor and natural resources still continue to be major competing factors for Bangladesh, the CPD executive director said. Investment, production and export are good but it is not better than last year's. Strengthening corporate governance has become essential.
The survey was designed to cover relatively large companies with total assets of at least Tk 10 crore. These include 46 manufacturing companies, 13 financial institutions, 7 Real estate and construction firms, 8 ICT enterprises, 7 transport and engineering firms and 12 others.
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