THE deeds of the incumbent government are battering its goal to achieve a GDP growth rate of 8.0 percent within 2015 by encouraging all pervasive corruption, limiting people’s participation and imposing oligarchic governance. The existing poor infrastructure and road connectivity, uneven regulatory framework, corruption, culture of impunity, and the lapsing rules of law have created the roadblocks to investment in the country. Referring to the country’s eminent economists, this daily on Monday said without accelerating investment in public and private sectors, Bangladesh may not achieve its targeted economic growth and poverty reduction according to its ‘Perspective Plan’.
The Perspective Plan (2010-21) targets annual real GDP growth rate to rise to 8.0 percent by 2015, and further to 10 percent by 2021, significantly improving living standards of the population by drastically reducing unemployment and poverty, riding on substantially higher output and export growth. Per capita income is projected to rise to about $2,000 by 2021, thus crossing the middle-income threshold. To achieve and sustain the high rates of growth, gross domestic investment will have to reach 38 percent of GDP, with gross national savings at 39 percent and headcount poverty dropping to only 13.5 percent. The principal goals of the plan will not be achieved without rapid improvements in infrastructure and necessary investment, experts opined.
A sustained democracy, good governance and energy security are also needed to achieve a higher scale of economic growth. Bangladesh fails to tap its economic potential mainly due to a recurrence of political turmoil, gas and electricity crisis and systematic corruption. Such odds have further blockaded local and foreign investment, hindering economic growth. The government is trying to attract foreign investment when the local entrepreneurs remained hesitant to invest in new ventures in the wake of enormous infrastructure deficits. We think the move may not yield any positive result unless confidence is restored in the minds of local investors. Initiatives should be taken to lure both local and foreign investors after addressing infrastructure and road connectivity deficits, so that it will take Bangladesh to the next level of socioeconomic development. The existing burdensome regulatory framework will have to be streamlined to facilitate investment. Besides, improvements are required in governance, human resource development, accountability, people’s participation in decision-making, and a truer people’s rule of democracy.
The prospect of the economy was badly hurt recently, mainly before and after of the January 5 elections, by political uncertainty along with the government’s reluctance to enhance road connectivity and improve poor infrastructure. Echoing economists’ suggestions, we urge the rulers to prioritize improvement on law and order situation, ensure uninterrupted energy supply to industries, develop skilled manpower, and facilitate an investment-friendly climate to boost economic growth.
