INVESTORS are refraining from making new investments in the country because of an absence of an investment-friendly environment – a Dhaka based research center has recently found. Investors are suffering from a lack of confidence and are abstaining from further investment in the absence of a friendly political situation in the country, revealed a report by Centre for Policy Dialogue (CPD). Political instability is the number one backdrop for lack of investment and thus is lowering the growth rate. It is indeed shocking and quite counterintuitive that the government has projected higher growth in service sectors though the sector suffered heavily in the first six months of the fiscal year due to political unrest in the country. Also the government’s projection on economic growth at 6.1 per cent for the current fiscal year is most probably not accurate, according to independent estimates. It is true that a brief respite has been achieved in terms of reduced political unrest, but, firstly it is not permanent until a representative and legitimate government comes and secondly, structural weaknesses are continuing to persist. Investors always fear that anytime their investments may face jeopardy emanating from political uncertainty. The CPD said that overall export performance in the first 10 months of the current fiscal year was better but a fall in exports to the US markets emerged as a matter of concern as Bangladeshi competitors including India did well in that market in the period. According to economists, the key challenges for the next fiscal year are to translate macroeconomic stability into accelerated growth, restore investors’ confidence, and to address the demand of infrastructure and structural reforms. We have no doubt that entrepreneurs, foreign or local, will not feel encouraged to make new investments until a favourable political environment is ensured. Long term political stability is the prerequisite of this favourable environment. Reiterating the economists concern, we too feel that unless and until a democratic transition is not achieved the gap between our potential and actual output will continue to grow. We have politics to remain in power, but not to worry about political certainty for economic welfare of the people. The retired technocrats led government is there to manipulate facts and figure to claim for the government that we never had it so good. Police power is good enough for legitimacy of the government. The Prime Minister Sheikh Hasina asked the army to build future leadership and she further asked the army officials to protect the Constitution and democratic process. So now according to her the army has the responsibility to see the Constitution and democracy remain safe. But in recent past she has been very vocal to warn them against “third force” for behaving undemocratically and unconstitutionally. It is an unfortunate situation that the political leadership is not in a position solve to political problems and what we have is voter less election and dysfunctional democratic institutions. The dangerous elements are free to have their ways. It does not matter that people have no security of life and the youngs no job prospects.
