In the latest edition of Geneva-based World Economic Forum's (WEF) Global Competitive Index (GCI), Bangladesh has slipped a notch and has been ranked 103rd out of 140 economies covered. This year the GCI was prepared using a new methodology and applied globally. Last year, the country ranked 99 out of 137 countries (using the old method). This year three new countries have been added to the Index. We have scored badly in nine out of the 12 indicators and the two poorest scores were in business dynamism and product market development.

As the study points out, we are lagging behind South Asian countries in these two areas. Indeed, Bangladesh is trailing other South Asian countries in institutions, skills, labour market, financial system and business dynamism (India ranked highest at 58, Sri Lanka came 86th and Pakistan 107th). Though we have taken steps to ensure better macroeconomic stability, health and ICT adoption, corruption remains one of the biggest hindrances to doing business in Bangladesh, which is followed by inadequate infrastructure and inefficient bureaucracy.

Although corruption has always loomed large in our ranking, we are now experiencing other problems, i.e. access to finance and policy instability. Weak institutions and poor regulatory implementation have resulted in poor performance of the financial sector. These are but some of the more pressing issues that require attention if we want to improve our score in the GCI. We need to get a move on with our economic zones, which, if commissioned on time, could prove to be game-changers for us. Furthermore, Bangladesh needs to prioritise skills development as a means to upgrading its vast, but largely unskilled labour force to become more productive. There is no alternative to overhauling public institutions to make them more efficient and accountable. In this competitive world, Bangladesh cannot be left behind and must move to overcome these nagging problems.