Editorial
Better ranking on FDI
Focus should be on real growth
According to United Nations Conference on Trade and Commerce (Unctad)'s World Investment Report (WIR) for 2011, in 2010, the index of FDI in Bangladesh has moved six notches up from what it was in 2009. Its ranking has risen from 120th to 114th position. Calculated in percentage terms, compared to 2009, the FDI inflow grew by 30 per cent in 2010.
Comparisons are often deceptive. For if we compared the FDI figure of 2008 at $ 1.086 billion with those of 2009 at $ 700.16 million and 2010 at $ 913. 32 million, the negative trend in FDI inflow would become obvious. However, the comparisons between 2009 and 2010 undeniably demonstrate that the FDI curve has made some positive gains. Given the dichotomy, it would then be wiser to look at the growth trends in a more critical light.
In the regional context, the WIR report shows that Bangladesh has fared better compared to other South Asian countries like India and Pakistan. But in absolute terms, the amount of FDI that flowed into Pakistan in 2010 was $ 2.016 billion. And it was lower than the 2009's figure at $ 2.387 billion. On the other hand, the same for India was $24.640 billion and $34. 613 billion respectively.
Whether on a falling or a rising curve, the sheer sizes of the FDIs they could attract hardly make any comparisons with those of ours.
The comparisons should actually provide us with the arguments for bolstering our efforts towards attaining a quantum leap in FDI flow in absolute terms.
And as it is with local investment, which have reportedly been very upbeat in years in question, FDI's further growth will necessitate removing the existing infrastructural constraints in the areas like land, power, gas and so on.
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