Post Breakfast
Improving our image abroad
Our battered image has been the subject of intense discussion over the last two weeks. We have had the latest Transparency International (TI) World Corruption Perception Index Report and then the Global Survey Report entitled 'Doing Business' as prepared jointly by the International Finance Corporation and the World Bank. The publication of these reports more or less coincided with the visit to New York of our chief adviser. He was there to attend and participate in the 62nd Session of the United Nations General Assembly. He also used the opportunity of being in New York to address students and academics in the Columbia University.
In recent years Bangladeshi image abroad has been one of contrast. We have been buffeted by reports that the country is riddled with corruption and lack of governance. We have had reports of being subject to natural calamities and being mired in poverty. We have also had the national pride of Professor M Yunus and the Grameen Bank winning the Nobel Prize for Peace for his revolutionary concept of micro-credit. In addition, we have also gained very favourable publicity from the activities carried out by BRAC in the field of informal education and their efforts in promoting rural employment opportunities for women in traditional crafts and other non-traditional areas. However, the important thing to note here is that most of our favourable publicity and image building has been due to non-governmental sectors.
The last few years of political governance contributed very little to our international image. Every year, we topped the list of corrupt countries in the international corruption perception index and also gradually emerged as a significant terrorist prone country where extremist organisations had no hesitation in targeting and assassinating politicians, judges and ordinary citizens (all this with the indirect connivance of state machinery and politicians in power). Lack of transparency permitted wasteful expenditure of state funds in partisan causes. Lack of accountability allowed the government to appoint lobbyists who were charged with putting a spin on abuse of governance.
The past few months have however seen a desperate attempt to restore some order within the national paradigm. This has included many constructive steps -- re-constitution of the Election Commission, the strengthening of the Anti-Corruption Commission into a meaningful institution, the overhaul of the Central Public Service Commission, efforts towards the separation of the judiciary from the executive, the introduction of the national ID card scheme and the correction of the existing voters roll. These are significant. They will hopefully help to bolster better governance. These have been in the right direction, but much more still needs to be done.
Some of the analysts in the print media have quite correctly pointed out in this regard that Bangladesh might no longer be the 3rd most corrupt country but it is still in the tied position of being the 7th most corrupt in the controversial world corruption perception index (along with Cambodia, Central African Republic, Papua New Guinea, Turkmenistan and Venezuela). However what is important is that Bangladesh still retains the dubious distinction of being bottom of the South Asian scorecard with the same corruption perception score of 2 (of last year) despite the current intensive anti-corruption drive and institutional reforms undertaken within the country.
Relevant representatives of Transparency International in Dhaka have tried to explain that the score has remained unchanged because of the reports and statistical data pertaining to 2006. They have also mentioned that the effect of the anti-corruption drive undertaken since January this year will, in all likelihood, be reflected in the next report. I hope that our national optimism in this regard will be proved right next time the international reckoning comes along. If this happens, it will enhance our pride in ourselves and be an example to follow in the future. It will also be a source of great encouragement for those involved in governance so that we can climb the index quicker.
The other report to be referred to is the Global Survey 2008 on 'Doing Business' as prepared by the IFC and the World Bank. Bangladesh appears to have slid down 18 places to 107 among 178 countries in terms of ease of doing business in a country. What is even more depressing is that Bangladesh's standing deteriorated in nine indicators out of ten. It was disgraceful. It was reflection of the corruption, partisanship, lack of accountability and absence of due process of law that characterised the administrative activities of the past BNP government.
We have a real challenge in our hands.
The current interim administration, by the very nature of its formation and composition is technocratic in character. In their own way, they are trying to streamline the various facets of economic activity. In this context, they are trying restore some sanity within our regulatory mechanism. Special emphasis is being given to transport, energy, clearance facilities in ports and revenue generation.
The measures being taken in this regard however need to be expanded and intensified. The government should seriously consider setting up a Commission composed of representatives from the trading community, the entrepreneurial community, the workers, the banking community, the insurance community and the relevant institutions of the government to determine the areas where we are weak and the steps needed to overcome the obstacles. As in the case of the Board of Investment, it should be under the direct purview of the office of the chief adviser/prime minister.
The job of this commission should be to seriously examine and evaluate our existing drawbacks in important areas like starting a business, issuing of licences, principles pertaining to employment of workers and according them their privileges as expected under existing law, registration of property, obtaining of credit from financial institutions (both in the private and public sectors), facilitating protection of investors, payment of different kinds of taxes and duties, enforcement of contracts and in the closing down of businesses.
This Commission should meet on a regular basis and help in the resolution of problems. It should, if necessary, also have a complaints centre where concerned trading representatives can file complaints and expect answer in less than 72 hours. We have to get a move on in this competitive world. Otherwise we will fall behind. This report suggests that entrepreneurs have to spend 1,442 days for enforcing business contracts in Bangladesh. The world average requirement is 990 days. I am certain that this excess delay in our case is mostly due to corruption and therefore that much unacceptable.
We have made changes and improved ourselves in container handling at ports. That is good. However, we have to do a little bit more. We have to make the doing of business simpler by cutting red tape and reducing the number of stages and permissions that are required for this purpose. We have to strengthen property rights, enhance investor protection, increase access opportunities with regard to credit and ease tax processes. We have to expedite trade while reducing concomitant costs.
We are re-building institutions and re-laying the foundations for a meaningful and functional democracy. There is considerable interest all over the world in what we are presently doing, not only among human rights activists but also among academics and those interested in the upholding of the due process of law. There is also a degree of nervousness within the domestic arena, both within politicians and also among the industrial and trading community. Ours is an example of crisis management that will be studied very carefully throughout our region and also in the developing world in general. Consequently, there is very little room for error. On the efforts of the present government will depend the return of confidence in Bangladesh as a dependable international partner. It will ensure the overcoming of our present image crisis.
Muhammad Zamir is a former Secretary and Ambassador who can be reached at mzamir@dhaka.net
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