Bangladesh has one of the world's worst legal systems for doing business, according to a new study.
The country ranked 16 among 197 countries that provide worst legal protection for foreign companies and investors due to uncertainty over their regulatory frameworks, said Maplecroft, an England-based risk analysis firm.
Maplecroft has developed the Rule of Law Index, published earlier this week, to enable multinational corporations to evaluate risks to investments.
The index evaluates countries on their judicial independence and efficiency, and measures the extent to which regulations and policies are implemented in a transparent manner.
Myanmar and North Korea are jointly listed on the top, followed by Somalia, according to the study published globally.
Maplecroft rates 19 countries as 'extreme risk' that includes Myanmar (rank 1), North Korea (2), Somalia (3), South Sudan (4), Turkmenistan (5), Cuba (6), Cambodia (7), Afghanistan (8), Syria (9), and Libya (10).
“Organisations investing in lucrative energy markets, such as Myanmar, Turkmenistan or Libya need to be extremely cautious,” said Mandy Kirby, associate director at Maplecroft.
“The rule of law serves as a check on abuse of private and state power and is important in the oversight of business regulation, including contract enforcement and competition laws,” she said.