Global Business Environment in Bangladesh
GLOBAL BUSINESS ENVIRONMENT IN BANGLADESH
Bangladesh is a small country in Asia having a parliamentary democratic form of government. Their country has experience famine, food scarcity and political turmoil during 1970’s war somehow they have recovered during the recovery of democracy during the early 1990’s in a better economic standing. Bangladesh still faced various difficulties including political problems of corruption and unemployment that leads to poverty, overpopulation and various economic and environmental distresses that makes them on the level of less competitiveness in International Market.
Their Gross Domestic Products has not shown an upward movement up to the present condition. Recently this month of September 2011 the Global Report for Competitiveness (GRC) provided by World Economic Forum (WEF) this reports shows a slow growth performance especially in infrastructure which is an indication of weaknesses that among the nations they have gotten the 107th to 108th position compare to 106th last year. Infrastructure is one of the most important indicator of competitiveness has fallen down however in the area of education, labor market and financial efficiency has a good standing.
The government reports shows that it is the transportation and shortage in gas and power problem in land and seas that has been the problem in reaching areas, this has been the results of slow growth in business from other places still could not move from one place to another so they need to pay too much for transportation, gas and labor cost that causes additional prices to their goods and services to raise up their price until it reaches the final market. The government still shows a strong positive reaction that they can survive but the people has been asking about the actions not just only survival to ease the burden and helplessness in transportation. The problem in transportation increases due to heavy rains and floods, the government continue to plan the construction of the largest sea port in South Asia and with the budget of $ 7.5 billion USD it will also include the largest airport in South Asia with an area wide large capacity but this plan not been finalized and still under study.
In the area of Information Technology they have raised position significantly from 130 last 2010 to 118 these 2011. Students and businesses have enjoyed this area and they step up in computer education and better services in their government sectors. If this continues the government can reach their envisioned campaign of 2020 they call it “Digital Bangladesh” for better ICT services and governance in information and communication sustainability to provide their people a competitive benchmark to generate a world class IT’s in their country.
Corruption has somehow decrease to mark the position of 139th out of 180 countries that shows a strong position compare to 147th in 2010 reported by Transparency International (TI). During the start of 2001 to 2005 they have shown a very corrupt standing that they always belong to the top 10 status. The government has shown continuous reforms in their parliamentary government, they aim to continuously fight corruption as a sustainable solution for economic growth. The anti corruption practices and organizations will dwell into fighting and execute the opportunist who will be found guilty in practicing illegal operations in any forms within the government sectors. If the political stability will continue the other problem in their economy will follow to uphold a greater chance of recovery. (Sheikh Hasina Wajed )
In their Business Sectors shows a stable area in agricultural, industrial and domestic production of fiscal year in 2010 a good 5.9 Gross Domestic Products compare to 5.5 last few years, they are expected to grow even more in the coming year although they have predicted a steep competition from other Asian nations especially in agricultural products will be one of its major components of growth determinants in 2011. This should be good news to the most of their farmers that attracts foreign investors to their export products and the clothing industry will also be included. If they continue to suffer from gas and power shortage their production in textile which comprises almost 3 million workers of mostly women will also suffer. Other industrial products will be highly affected especially in the demand of their export industry so they expect the government to release a better budget in gas and power generation for the next fiscal years.
Bangladesh paved its way in a dramatic increase in foreign investments, a number of International Business and Organizations have been establishing their offices and factory in the last few years in Bangladesh these includes Dragon groups, Chevron, Akij Groups, KDS group of company among others. The remittances from their domestic and professional workers abroad shows a good sign to stimulate growth in Bangladesh, their exchange rate is expected to have a stable to slow growth in the next few years, their (taka/USD) should maintain its position from the current year as expected. Their sector in tourism is slowly gaining attention in International scene contributing additional dollar earning opportunity and employment generation. Finally they have decreased their based ratings in foreign grants and dependency of loan in 2010.