Deadline must to restore business confidence

European Commission (EC) Ambassador Stefan Frowein yesterday said Bangladesh government must clearly state the duration of its anti-corruption drive if it wants to gain the confidence of the business community, maintain economic stability, and avoid uncertainties.
The government would also need to maintain political stability to allay foreign investors' fear of an unpredictable investment climate, said Frowein in reply to audience questions at the EU Information Day seminar in the capital.
The EC ambassador backed the government's anti-corruption drive, but warned, "It is clear from the business community that they do not know how far it goes and how long it goes; it contributes to the feeling of uncertainty, and uncertainty is the worst thing for businessmen."
He cited from his interactions with the business community, especially the representatives of ready made garments industry, to say that overseas orders are on the slide and, "I think certain things are going down and there is a kind of concern about order going down, and maybe, orders shifting away from this country due to political situation or perception of the situation."
He said if political actions hamper economic activity and creates economic uncertainty, the government must 'work it out'.
"If there is uncertainty and shortage of clear-cut information, foreign investors would not be interested in investing here," he said adding, "Without private sector and foreign direct investment, this country cannot get further -- it is so much desperately needed."
Frowein went on to say the international media is not reporting positive developments in Bangladesh, and that adversely affects the country's image abroad. He added foreign investors need to 'get the right information and perception' in order to be attracted to the country.
"If perception improves, order books will improve, and if order books improve, employment situation will improve," he quipped.
A number of EC staff also made presentations regarding trade and economic assistance, reporting that the EC will give a grant of 205 million euros to Bangladesh over three years for the fields of governance, human rights, economic development, disaster management, and food security.
The EU imported 5 billion euros worth of goods from Bangladesh in 2006, marking a 27 percent rise from the previous year.