Germany hopes for peaceful power transition
German Ambassador to Dhaka Frank Meyke yesterday said Berlin hopes next month's elections will usher in a peaceful and successful transition to parliamentary government in Bangladesh.
He said the lack of a political climate congenial to investment has been the biggest obstacle to foreign investment in Bangladesh.
The ambassador was speaking at a discussion organised by Foreign Investors' Chamber of Commerce and Industry (FICCI), at a city hotel.
"We expect and hope that after the elections Bangladesh will achieve sustainable democracy free from the confrontational politics of the past," he said.
Ambassador Meyke said the political development is required to boost investment from German businessmen.
"Constructive parliamentary work, renouncing and banning hartals, corruption curbed, building on the structural reforms and achievements of the caretaker government--these would be positive signals for German investors and for tapping the full potential of our bilateral trade."
Germany is the second biggest destination for Bangladeshi products. Bilateral trade between the two countries doubled between 2002 and 2006, with Bangladesh currently enjoying an estimated trade surplus of 1.3 billion euro.
Despite the trade growth, German investment in Bangladesh is still poor.
"The assets and potentials of the country are concealed behind a number of negative perceptions, including image problem and confrontational politics," the ambassador said.
He however added that he has seen some changes in German investors who are now seriously thinking of Bangladesh as an investment destination.
He pointed to some of Bangladesh's positive sides: huge domestic consumers, massive workforce and a good legal framework for investors.
"It (Bangladesh) is considered to be among the best in Asia in terms of tax holidays, repatriation of profits and fiscal incentives of various kinds," Ambassador Meyke remarked.
He said investors still dig in their heels because of a string of negative factors ranging from non-transparency to corruption, unaccountability to severe infrastructure constraints.
Noting that Bangladesh has come a long way since January 2007, he said the structural reforms and corruption-busting drives of the caretaker government did not go unnoticed abroad.
"However, investors will wait to see how these initiatives will be implemented and built upon in the future, under parliamentary government," he added.
FICCI president Wali Bhuiyan chaired the monthly luncheon programme attended by diplomats and businessmen.
He presented a crest to Hossain Khaled, president of Dhaka Chamber of Commerce and Industry, for successfully organising an international conference on the chamber's golden jubilee recently.
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