Reduction in corruption can boost growth: BB governor

Bangladesh must reduce corruption and enhance good governance to elevate itself to a higher growth path, said Atiur Rahman, governor of the central bank.

Rahman spoke at the EBL Leadership Lecture Series at the EBL Nest (capacity enhancement centre) at Motijheel in Dhaka yesterday. Ali Reza Iftekhar, managing director and CEO of EBL, moderated the session.

Rahman said Bangladesh's biggest problem lies in deficiency of infrastructure and corruption rather than in the dearth of funds. Improved infrastructure can take the country to a 7 percent growth rate this year, he said.

"I don't agree that we are poor in infrastructure for shortage of money. We are ready to contribute $2 billion to the proposed sovereign wealth fund from the $26 billion forex reserve to develop infrastructure," Rahman said.

But there must be leadership skills within people who can execute the processes properly, he said.

For example, Rahman cited special economic zones that can accommodate foreign investors. The authorities say they cannot develop the zones due to lack of funds.

"But the problem lies with leadership, not with the money," Rahman said. Tackling corruption is the other major challenge for Bangladesh, he added.

Rahman began his speech by narrating events of his life that shaped his life. He said he has come to the present level after overcoming a lot of obstacles during his childhood.

The governor said he had faced obstacles from the BB when he became the governor in 2009. He said he wanted to make the BB a pro-people central bank, but some staffs and groups inside and outside the bank did not want it to happen.

The BB has witnessed lots of changes which comprises of-- digitisation, a surge in export development fund, launching of green banking-- in the last six and a half years despite resistance from some quarters.

"Leaders need to have the capacity to inspire others."

Iftekhar of EBL said transparency and stability are vital for the development of the banking industry.

Yesterday's lecture was the sixth of its kind by EBL. The bank's senior officials who are considered to be the future leaders attended the programme. EBL began the lecture with Latifur Rahman, chairman and managing director of Transcom Group, in June last year.