Bangladesh, with its robust economic potential, stands at a crucial juncture. The country’s business environment remains plagued by systemic inefficiencies that impede progress despite impressive GDP growth over the years. Corruption, organisational red tape, poor infrastructure and limited access to finance are among the critical challenges necessitating immediate and inclusive reform. The dialogue organised by the Centre for Policy Dialogue (CPD) on Sunday, titled “Business Environment Reform in Bangladesh: Agenda for the Interim Government,” has fairly brought these issues to the frontline, offering some recommendations to chart a path forward.
The CPD’s call for a regulatory reform commission is, in particular, timely and significant. Such a commission could serve as a watchdog and reform engine, detecting policy bottlenecks and proposing actionable solutions. This commission could create a participatory approach to business reform by engaging representatives from trade figures and stakeholders from the private sector. This initiative, if implemented, would modernise regulatory processes and build confidence among local and global investors. Complementing this, a better business forum could provide a well-structured platform for constant dialogue between policymakers and businesses, ensuring real-time solutions to emerging challenges.
A key barrier to business in the country, as highlighted by CPD’s survey, is corruption, cited by 17 percent of respondents as their foremost concern. Corruption enters various layers of management, increasing costs and delays for entrepreneurs. Digitisation of administrative processes, combined with stricter enforcement of anti-corruption laws, may considerably mitigate these issues. Furthermore, dropping management’s complexities, in particular, for new businesses, is necessary. Starting a business in the country must shift from being an untimely ordeal to a well-run, transparent process.
Bangladesh must adopt a brave and
forward-looking vision to
address these systemic challenges
Bangladesh’s business landscape also suffers from a lack of competition, with economic activities often controlled by a handful of influential groups. This attention stifles improvement and marginalises small and medium enterprises (SMEs), which are critical factors of economic growth. Policies aimed at improving access to glory, fostering improvement and supporting SMEs may help adjust economic opportunities and create a more competitive market.
Infrastructure, another long-standing bottleneck, continues to limit business growth. Poor transport systems, unreliable energy supply and inadequate logistics increase operational costs and reduce efficiency. Targeted investment in infrastructure development are essential to support local industries and attract foreign direct investment (FDI). Simultaneously, prioritising digital transformation will improve operational efficiency and enhance transparency and answerability.
Findings of the CPD also highlight the need for human capital development. Low productivity and poor skills in the labour force emphasise the importance of investment in education, training and healthcare. A robust, skilled workforce is crucial for sustaining economic growth and meeting the demand of a globalised economy.
Bangladesh must adopt a brave and forward-looking vision to address these systemic challenges. Although the government’s enthusiasm to engage with businesses is encouraging, sustained efforts are necessary beyond this transitional period. Transformative reforms in policy, management and infrastructure are not just needed but crucial for unlocking the country’s full economic
potential.
The country may position itself as a regional leader in economic competitiveness by tackling corruption, diminishing management’s efficiencies and fostering a comprehensive business environment. The time for action is now and the stakes could not be higher.
