London summit highlights Bangladesh’s potential::::::::: Bangladesh’s potential as a top destination for investment and the challenges it faces were highlighted at an international summit in London recently. The FinanceAsia Bangladesh Investment Summit, Europe at Grosvenor House in London on June 11 underscores Bangladesh’s steady journey towards greater affluence and economic growth. The first of its kind summit called for maintaining its progress to achieve the potential of becoming a ‘Next 11′ country. “Bangladesh is a special case. The South Asian country with a population of 160 million has maintained consistent 6 percent growth during the past decade despite the global financial crisis, numerous political upheavals andb several man-made or natural disasters,” according to a report of FinanceAsia. “Rather than a wretched basket case that keeps aid agencies employed, Bangladesh is increasingly attracting the attention of international investors and foreign companies.” In 2005, Jim O’Neill, former chairman of Goldman Sachs Asset Management and chief economist at Goldman Sachs, included Bangladesh among the ‘Next 11′ countries set to follow the BRIC (Brazil, Russia, India and China) nations to become some of the biggest economies in the world. O’Neill told delegates at the London summit that Bangladesh could eventually attain the level of affluence and development achieved by South Korea. “It will move up the value chain, and already its IT sector is growing rapidly. It needs to stay the course, which means tackling corruption, investing in infrastructure, improving labour conditions, encouraging entrepreneurs and instilling a respect for the rule of law.” Perhaps, the most essential requirement is that Bangladesh nurtures a business culture and institutional mindset that can attract sustainable investment, according to Lord Heseltine, a former British deputy prime minister and founder of the Haymarket Group. “The reliable, engrained recognition of the importance of the rule of law and the ability to find the right partners provide confidence for investors and anyone doing business in a country.” Bangladesh’s steady economic growth performance so far is due in part to its well-diversified economy, which helps insulate it from sector-specific shocks, Hassan Zaman, chief economist at Bangladesh Bank, told the summit. The report by FinanceAsia, Asia’s leading financial publishing company based in Hong Kong, said Bangladesh faces important challenges. “Political strikes and demonstrations ahead of this year’s elections could damage investor sentiment and economic growth.” “The Rana Plaza building collapse disaster in April where hundreds of people died underscores the need for more stringent enforcement of standards related to worker welfare.” In the financial sector, the fraud at a state-owned commercial bank should lead to a tighter focus on financial sector oversight, which will be helped by compliance with the terms of the IMF’s $1 billion extended credit facility agreed in April 2012, the report said. The conference was organised by FinanceAsia and AsianInvestor to explore the trade and investment opportunities in Bangladesh for Asia’s sovereign wealth funds, long-term foreign direct investors, public and private pension funds and other financial investors. Standard Chartered Bank Bangladesh was the main sponsor of the daylong event, which attracted over 300 investors, fund managers and executives from multinational companies. Mahfuz Anam, editor and publisher of The Daily Star, and Nirukt Sapru, head of growth markets for South East Asia and South Asia at Standard Chartered Bank, delivered plenary addresses and participated in panel discussions. Jim McCabe, chief executive of Standard Chartered Bangladesh, said the story of Bangladesh has remained untold to a large extent. “I hope our attempts will raise the interest of key decision makers in the financial sector to join the exciting journey that is the development of Bangladesh.”
Posted on: Tue, 18 Jun 2013 19:30:23 +0000
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