Inefficient bureaucracy has been identified by the local business community as the main hurdles to doing business in Bangladesh, suggests the Global Competitiveness Report 2020.
Even though corruption and infrastructure were the main issues earlier, the highest 72 per cent of local businesspersons identified bureaucratic inefficiency as the main issue facing businesses now.Some 68 per cent businesspersons have blamed corruption, while 66 per cent see limited financing scope as the second and third major problems local businesses are facing.
Local think tank Centre for Policy Dialogue (CPD) unveiled the report of the World Economic Forum (WEF) along with Bangladesh Business Environment Study at a virtual media briefing on Thursday.
“A specific business problem comes at the top to the business community from time to time. Once upon a time corruption was seen as the main problem, which later changed to infrastructure,” CPD’s research director Dr Khandaker Golam Moazzem said while presenting the highlights on the report.
“Now, inefficient bureaucracy is considered as the main business problem,” he added.
Entrepreneurs, surveyed for the report, think that inefficiency of bureaucracy and extra time and cost for public services increase the overall cost of doing business, he pointed out.
This year WEF in its report has not published any global competitiveness ranking like previous years because of global coronavirus pandemic.However, opinion survey has been conducted among the business community in the reporting countries to get the picture of the business climate of that country.
CPD, on behalf of WEF, has surveyed CEOs of top 55 companies of the country each those have over Tk 100 million assets. For making local businesses more competitive, 12 important areas should be prioritized, according to the report.
The areas include governance, infrastructure, technology, human resource, financing environment, external trade, competition among local businessmen, business operation and security risk.
“Government officials have to be allowed for work free for sake of making an efficient bureaucracy,” CPD’s Distinguished Fellow Prof Mustafizur Rahman.
He suggested taking precaution in adopting technology to strengthen competitiveness so that technology does not lead to jobless growth.
CPD’s executive director Dr Fahmida Khatun stressed on more easing of the business climate in the country for an efficient and development-oriented economy.
In the context of coronavirus, businesses should go through various types of transformation, she also suggested.