Kazi Zahidul Hasan :
Bangladesh is lagging far behind its regional competitors in developing basic infrastructure as well as improving the dilapidated communication network, posing serious challenge to its economic development and productivity, observers said on Friday.
They said the lack of adequate infrastructure hinders the country’s growth potential, weakens international competitiveness and productivity of local industries and adversely affects poverty reductions efforts.
“Poor physical infrastructure has been identified as major constraint on long-term economic growth. But, we are yet to address the problem,” former adviser of a caretaker government Dr AB Mirza Azizul Islam told The New Nation on Friday.
He mentioned that infrastructure deficiency is limiting productivity and capacity of the local industries. They have to pay huge amount in freight cost every year, finally harming their competitiveness in global arena, he added.
Mirza Aziz, a noted economist of the country, also emphasized the critical importance on speedy implementation of the ongoing infrastructure development projects for ensuring an inclusive growth.
“Delays in implementation of the projects, including Dhaka-Chittagong and Dhaka Mymensingh four lanes, are also holding back the country’s economic growth,” he observed. He further said that both local and foreign investors kept them away in making fresh investment here due to lack of basic infrastructure. “They may not go for further investment if the situation is not improved rapidly,” he added.
“Our economy has expanded on an average 6.0 percent over the last one decade. But, the aim of achieving an inclusive growth stalls as the successive governments fail to address the country’s infrastructure deficiencies and maintain a congenial investment climate,” he said.
Dr AB Mirza Aziz also emphasized the need for a significant rise in government spending on the key infrastructure projects to cope up with its regional governments.
“Costly and unreliable roads, ports, communication systems and electricity have made our business unsustainable,” said BGMEA Vice-President Riaz Bin Mahmood.
He said, poor road and rail communication, inadequate port facility, low and unsustainable access to electricity and gas have raised production cost and weakened international competitiveness of local export industries.
“We are no more competitive in the global apparel market because of rising cost of production. Our competitors could have maintained a lower production cost had there been a reliable infrastructure and energy supply.
Due to our unsustainable facilities many buyers left Bangladesh for other apparel manufacturing countries, leading to closure a good number of small and medium apparel industries”.
Riaz Bin Mahmood said that we need to rebound our communication systems and power grids immediately in order to reduce shipping cost and transport expenses. Such initiatives will also help increase competitiveness of local industries in the global arena.
“Although a good quality infrastructure is key ingredient of sustainable economic development, we are yet to develop it,” observed Executive Director of Center for Policy Dialogue (CPD) Dr Mustafizur Rahman.
He said developing a sophisticated transport network is necessary to create a platform for modern economy. It will lead to a dramatic rise in trade and commerce and made transportation faster, safer and less expensive.
“Many projects are stalled and are not seeing day light because the government does not have the available funding. We recognized the reality that there are budget limitations at every level of the government.
It should come up with fresh and innovative ways to unlock capital and get more projects underway. That means the government has to work more closely with the private sector and channel more private investment into the infrastructure projects,” he noted.
