Institutional capacity systematically weakened in past 15 years: Commerce Adviser 

The institutional capacity of various organisations in Bangladesh has been systematically weakened over the past 15 years, both in the public and private sectors, said Commerce Adviser SK Bashir Uddin.

This has significantly hindered the development of local industries and disrupted the natural competitiveness of the market, he said.

He made the remarks today at a seminar titled "Competition Policy in Bangladesh: Prospects, Challenges, and the Way Forward", held at the InterContinental Dhaka.

The event was jointly organised by the Bangladesh Competition Commission and the United Nations Development Programme.

"Since taking responsibility, I have faced numerous challenges," the adviser said.

However, due to several positive initiatives, improvements are now being seen in remittance inflows and exports, with success gradually extending to other sectors, he added.

"What we have observed is that the destruction of institutional capacity over the past 15 years has led to the rise of several cronies in our economy," he said.

"This has created an extremely unequal distribution of wealth and empowered certain cronies to block new competitors from entering the market," he added.

He noted that, like many other institutions, the capacity of the Competition Commission had also been dismantled, which is why the public has yet to see tangible benefits from its work.

"People want to see the benefits of competition reflected in their daily lives. The Commission must be strengthened to deliver on that front," he said.

The adviser also said many dishonest businesses are forming alliances to harm smaller enterprises, at times selling products at loss-making prices to eliminate competition.

"The Competition Commission must take action to penalise such offenders," he added.

Commerce Secretary Mahbubur Rahman said that in Bangladesh, five to six companies often procure and market products from the same source, resulting in similar cost structures and limited competition.

The government is taking steps to make the market more competitive, he added.

AHM Ahsan, chairperson of the Competition Commission, said the Commission not only imposes fines on companies but also offers protection.

"We are working to safeguard small businesses facing unfair competition in the market. Our aim is to break the syndicates of a few dominant companies and ensure fair competition for all," he said.