World Bank country director Johannes Zutt on Wednesday said improving political and economic governance and developing institutions to manage the growing economy in the country were required to accelerate growth and to reduce poverty.
Bangladesh also needs to undertake reforms in energy and transport sectors and develop more economic zones to expedite economic growth, he said.
At a luncheon meeting of the American Chamber of Commerce in Bangladesh at the Ruposhi Bangla Hotel in the capital, Zutt also underscored issues like removing infrastructural deficit, improving labour skills, ensuring compliance of labour issues, diversifying export and increasing revenue generation for attaining accelerated growth.
He said that businessmen alleged that the cost of doing business increased at all level in the country due to ransacking of business establishments during political confrontation that affected their investment decision.
‘Confrontational political situation is a major impediment to economic growth while cost of doing business hurts investment,’ he said.
Speaking as the guest of honour on ‘key priorities for accelerating growth and poverty reduction in Bangladesh’, the WB country director said that Bangladesh performed better than expected in terms of economic growth, poverty reduction, human development and macrocosmic stability since its independence.
But the country needs to do more to move forward to be a middle-income country, he said.
He also pointed out that there were severe problems in managing state-owned commercial banks that were needed to be addressed as financial sector was one of the major growth enabler.
He suggested diversification of export beyond readymade garment items and markets to tap more export market share.
‘Bangladesh has tremendous opportunities to tap its share in the international trade through increasing competence in pharmaceutical, shipbuilding, bicycle, jute and some other products,’ he said.
Zutt also emphasised on regional power trade among Bangladesh, India, Nepal and Bhutan for meeting its power shortage.
He said that the government must have to improve liveability of Dhaka through decentralisation of financial activities and services as the capital city is very much important for growth generation.
He said that Bangladesh would have to develop many more economic zones for creation of better and more jobs.
The country has only eight economic zones while China has more than 1,000 economic zones, he said.
At the meeting, AmCham president Aftab Ul Islam said that financial mismanagement, fear, threat, political and economic uncertainties and lack good governance were now major impediments to the growth of private sector investment.
‘That’s why the country is failing to attract investment from local and foreign investors despite having huge opportunities in the field,’ he said.
US ambassador to Bangladesh Dan W Mozena, AmCham executive director A Gafur, former vice-chancellor of North South University Hafiz GA Siddiqui spoke, among others, while leaders of business community attended the meeting.
-With New Age input
