BANGLADESH’S recent economic surge has been remarkable, positioning it as a regional leader.
However, maintaining this momentum and achieving the ambitious 7 per cent annual growth target necessitates a focus on domestic capacity building.
The Asian Development Bank’s Country Director, Edimon Ginting, rightly emphasizes the need for strengthening domestic capacity across various sectors. A key concern lies in the banking sector, where limited capital availability for private investors and high non-performing loans restrict the flow of funds crucial for economic activity.
Reforming the banking system to enhance management and governance is vital to unlock its potential as a growth engine.
Beyond finance, broader capacity challenges require attention.
The Bangladesh Investment Development Authority (BIDA), with its broad mandate, struggles with limited capacity to deliver essential services. Streamlining BIDA’s operations and attracting both domestic and foreign investment are essential steps for fostering a growth-conducive environment.
While financial capital is important, human capital is equally crucial. Investing in skills development will bolster productivity and global competitiveness.
Equipping the workforce with the necessary skills will unlock new opportunities and drive innovation across sectors.
Mr. Ginting’s call for a strong competition law is both timely and pertinent.
A fair and competitive market not only attracts investment but also stimulates innovation.
Protectionist policies, though seemingly beneficial in the short term, can stifle long-term growth prospects by limiting international competitiveness.
Embracing competition will spur industries to strive for excellence, ultimately propelling overall economic growth.
Furthermore, Bangladesh must embrace economic diversification and prioritise sustainable growth initiatives. Investing in clean energy and sustainable practices not only mitigates environmental risks but also ensures long-term economic viability in a globalized and environmentally conscious world.
The Asian Development Bank remains committed to supporting Bangladesh’s development agenda. However, the onus ultimately lies with Bangladesh.
By implementing bold reforms, addressing domestic capacity constraints, fostering a competitive business environment, investing in human capital, and embracing sustainable practices, Bangladesh can achieve its growth targets and solidify its position as a global economic powerhouse.
This combined editorial condenses the information while maintaining clarity and incorporating key points from both versions.
It emphasises the importance of human capital development alongside financial considerations and highlights the need for a shift towards sustainable practices.