BUSINESS leaders have called for a simplified legal support system to get increased flow of foreign direct investment (FDI) into the country to accelerate the pace of economic development. Speakers at the monthly luncheon meeting of American Chamber of Commerce and Industry (AmCham) at a city hotel Tuesday said the government has rightly prioritized to secure more FDIs but what is lacking is a right kind of legal framework, besides political risk and shortfall in infrastructure such as giving gas and electricity connection.
AmCham president’s suggestion that Bangladesh needs simplified laws and prompt support services deserves appropriate consideration of the government’s policy makers. Particularly when he said the one-stop service center must be helpful but not adequately available at the Board of Investment (BoI), he made no secret of the fact that the BoI is failing to serve investors needs. It is really sad that the government is spending lots of money to beef up BoI and FDI but as per the AmCham president it has so far failed to the task. It is noticeable that ministers and senior government officials are often holding ‘road shows’ at global business centers to highlight Bangladesh but back at home they are yet to frame and put in place appropriate laws and develop institutions. BoI with a chief executive at State Minister’s status is not enough to suggest that it is so powerful to solving problems, he is rather isolated by many restrictions to reach him.
AmCham leaders have rightly pointed out that business people must be consulted when the government enacts any laws which have bearing on business and particularly on inflow of investments. Unfortunately the practice is missing so far rendering many laws inappropriate. Another point they made is that government should not constantly change business policies, because without predictability of future of investment and sure about its sustainability, investors always remain shy in making long-term investment. We believe that the government would hear the suggestions and put in place appropriate laws and make sure that business rules and its environment will not quickly change. They are also right when they called for reducing corruptions at all levels.
Assurance of a just and free legal system is not what the government believes in. They want a judiciary politically obedient. That is not the kind of legal system good for boosting foreign investment. Then toll collection politics is also undermining foreign investment. False propaganda of success will not bring success.
