First-ever rating of the economy

BANGLADESH'S potential as a reliable destination for putting in money and investing by international creditors and investors has been positively rated by the US-based credit rating agency Standard and Poor's (S&P).
As the agency that has done the rating is a prestigious institution of global standing, it can be said that its evaluation has put Bangladesh in a fresh light among the international business community. The good news is in the South Asian context, Bangladesh's scorecard with a 'BB- for a long term' is placed above Sri Lanka and Pakistan, though below India. On any account, this is no mean achievement so far as the rating reflects our economic status and prospect in spite of the constraints on its infrastructure and energy fronts.
Now, how does Bangladesh stand to gain from such rating by an international agency?
For one thing, this firstever rating of the country would certainly help dispel any misgiving that the international investors and creditors might have had about the country's real potential as a business partner and an investment destination. Rather than depending on hearsay and guessing, they would now be able take their decisions on the updates available from the S&P's data. For the other, Bangladesh itself will now know its actual position vis-à-vis other economies, be able to concentrate more on addressing the weak spots in its economic profile and chart out an appropriate course of action to improve its status in its dealings with international partners.
Though it has termed the economy's 'outlook' as 'stable,' the rating agency, however, has not failed to point to the fiscal constraints, the low-income status and the huge development needs that are still burdening the economy. So, according its prognostications, the durability of such 'outlook' depends on how prudently macro-economic policy is framed and maintained and the micro-economic reforms done to address the growth constraints.
As expected, the business community, especially the bankers, has been enthused by the positive rating of the economy. According to their view Bangladesh will benefit in respect of the pricing of cross-border risk by international financial institutions and that it would now get the opportunity to raise equity and debt required for large projects involving, for example, energy, power and infrastructure. What is more, foreign investors will now have a better insight into Bangladesh's potential as a good destination for Foreign Direct Investment (FDI).
So far so good. But just sitting on our laurels will not do. We need also to do the necessary homework to improve our conditions such as removing the bottlenecks in the infrastructure with particular stress on ensuring a steady supply of energy for the industries, improving overall political management and governance. For these are the necessary preconditions for attracting international creditors and investors on a sustainable basis.