Editorial
Political unrest
Threat to foreign investment
The business community has been crying hoarse, and one cannot emphasise enough the need for both the major parties to ensure, that nothing by way of political programmes or counter programmes undertaken by them should impede the normal economic activities in the country. And very few would disagree with our businessmen that given the current trend, the business environment might get worse with the deterioration of the political atmosphere. And from all indications there are very little signs of a let up in the restive situation on the political front.
And in this regard one would like to most strongly reiterate the comments of the FBCCI President that political uncertainty creates fear and thus discourages new domestic investment. And when such is the case where domestic investors do not feel confident, it would be unwise to expect foreign investors to sink money under uncertain circumstances. Reportedly, the net FDI in the first half of the current fiscal year is USD 375 million, which one feels would have been far more had the situation been more conducive. At a time when we need to create more jobs, diversify exports and become a part of the global supply chain, external capital being shooed away due to political uncertainty is calamitous.
As it is, there are several avoidable impediments that exert negative influence on foreign investment in Bangladesh; the rather high cost of doing business, red-tape, inefficient and bad management of our ports are but a few of them. And in Bangladesh where poor domestic saving doesn't make for high domestic investment, and where some other positive factors, like cost of labour, should make Bangladesh a good destination for foreigners to do business in, it is the political situation that works as the greatest disincentive. This particular situation has also been highlighted by our development partners and friends as well.
It is a matter of regret that our politicians are unwilling to comprehend the situation. Had that not been so they would have ensured that the most important prerequisite for economic progress, a peaceful political environment, was not disturbed. That has not been the case, and the country is very much the worse for it.
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