Reforms needed in economic governance, banking: ADB
Bangladesh needs reforms in its economic governance, banking sector, tax collection and public procurement practices to bring the economy back on track and quickly become a higher-middle-income country, according to the Asian Development Bank (ADB).
"I guarantee that the country would benefit from focusing on these as it would ensure healthy economic growth and boost investment," said Edimon Ginting, Bangladesh country director of the ADB.
Ginting made these comments while addressing a quarterly luncheon meeting with the Metropolitan Chamber of Commerce and Industry (MCCI) at the latter's Gulshan office in the capital yesterday.
He also said environment-friendly growth must be adopted with proper policies considering future demand. Also, sustainable investment should be facilitated as soon as possible for the country's continued economic growth.
Citing an ongoing discourse over whether governance or development should be given priority, Ginting said he believes it is the latter that should come first.
He emphasised the need for proper governance in development alongside policy reforms to facilitate investment considering the needs of investors.
According to Ginting, local institutions are slow to adopt change and also unfriendly towards investment.
Against this backdrop, he pointed out that China is getting a lot of foreign investment even amid the ongoing global financial crisis just because of the country's sincere efforts and hard work.
"So, I think the success of neighbouring countries like China and Vietnam in attracting investment are good examples for us [Bangladesh]," Ginting said.
"In my view, Bangladesh is already a middle-income country. But if we want to climb further, the people cannot be left as a silent audience and should rather be drivers of growth and productivity," he added.
According to him, the strength of the financial sector always depended on good governance in the banking and financial institution segments.
However, he said financing needs should not be completely dependent on the banking system, rather the capital market should contribute by a big margin.
For this reason, the capital market needs to become vibrant and should be the prime source of financing for private sector investment, he said.
Ginting appreciated the growing involvement of Bangladesh in the global economy and affirmed the ADB's determination to further enhance it.
He believed there was potential for increased investment flows, skills development and overall capacity building in the country.
However, a good competition policy is required to bring in new investments, he said.
Ginting also underscored the need for human resources development in the country, saying the ADB could work in those areas.
Before concluding his speech, he reiterated the ADB's commitment to helping Bangladesh progress sustainably amid various environmental challenges.
The ADB country director also said there was scope to work in ensuring quality education from the higher secondary level to the tertiary level to build up skilled human resources.
Kamran T Rahman, president of the MCCI, acknowledged the ADB's assistance in developing Bangladesh's climate resilience, infrastructure, social protection, job creation, and water and sanitation facilities.
He believes that the ADB's expertise, combined with the MCCI's understanding, offer a unique opportunity to address Bangladesh's business challenges.
Farooq Ahmed, secretary general and chief executive officer of the MCCI, moderated the event, where Nihad Kabir, former president of the MCCI, and Zaidi Sattar, chairman of the Policy Research Institute of Bangladesh, were present among others.
Comments