Right conditions are to be created to sustain graduation process

ECONOMISTS have asked for easing the cost of doing business and implement massive regulatory reforms to create a business friendly environment in the country to sustain the graduation process from the LDC status to a developing one. The emphasis came for more homework to sustain the growth at a time when the government is taking up celebration of the UN recommendation in this respect. We must say the achievement that the country won so far is mainly based on the impressive performance of the country’s private sector economy and earning from expatriate workers working in inhuman conditions away from their families. Most government statistics claiming the breakthrough are on the high side and again the higher growth is not exponentially showing higher income for the common masses.

 If so much success can be achieved without good governance and in the midst of massive corruption, crisis in the banking sector and lack of investment then we have to think how much more we could have achieved if positive factors for growth were available

 The success of the country in terms of GDP per capita cannot disregard the overwhelmed unemployment now at 2,680,000 with ever-widening income gap and unbridled corruption at all level. But we must seize upon the opportunity to chalk out better development plans that would reduce income gap and bring improvement in the life of the common people. The per capita income is not the only major criteria for graduation; the welfare index of the common masses must also make sure that developing nation would mean development for all, not for few in the higher echelon of the society.

What experts have stressed at this moment is achieving the sustainability of the overall socio-economic environment that must grow and it must include achieving higher capacity and efficiency of the government and private sector to deal with an ever-expanding economy. It must be able to deal with growing arrival of external investment and domestic investment. The regulatory framework also need to be reformed and restructured to address the demand of foreign investors for facilities such as quick access to industrial land to set up plants, give them swift energy connectivity and deal tax issues comfortably. Corruption must be severely dealt with; which alone adds to cost of doing business to a large extent.

Economists have rightly called for maintaining a smooth graduation and associated momentum to prevent a slow down and fall into a middle-income trap. With the use of modern technologies in production, the country may lose jobs. There is also a high risk of erosion of preferential trade benefits such as zero tariffs Bangladesh now enjoy in the European Union.

Good governance, political stability and higher efficiency will be the main driving force in such situation to reduce business cost and loss to the economy from political chaos and such other troubles.