Download PDF by Shekhar Shah, Pradeep Mitra: Bangladesh: from stabilization to growth

By Shekhar Shah, Pradeep Mitra

ISBN-10: 0821332279

ISBN-13: 9780821332276

Bangladesh has accomplished a lot in its quest for monetary and social improvement, yet a lot is left undone. major achievements in inhabitants, foodstuff construction, and stabilization of the macroeconomy haven't been observed by means of the speedier fiscal development and employment iteration had to alleviate colossal poverty. elevating monetary development to a sustainable point drawing close 7 percentage over the medium time period is still the overriding coverage target for the rustic. How govt coverage and activities may help in attaining the objective of speedier development via selling an export push in production via the non-public zone is the elemental subject of this file.

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To further reduce the costs of policy uncertainty for the private sector, the Government's second priority should be to make the deregulation of the private sector much more effective, giving it the flexibility to make unfettered business decisions relating to investments, production, trade, international payments, and employment. The Government's third priority should be to enter into long-term arrangements with domestic and overseas private investors in infrastructure and the utilities to promote their entry, enhance competition, raise efficiency, and improve service quality; in the shorter term, the Government must rapidly complete the long-delayed privatization of state-owned enterprises in the manufacturing sector.

In attempting to put its private entrepreneurs on the same footing as their international competitors, rapid progress may not be possible on all fronts despite the best intentions of the Government. It is therefore imperative that the Government also explore the possibility of making more modest changes to the policy framework (akin to bonded warehouses and the back-to-back letters of credit for readymade garments) that can alleviate the one or more critical constraints that may be holding back the potential development of an export subsector.

The Government's first priority must be to raise investment: by giving the private sector the reform confidence necessary to invest in export-oriented manufacturing activities, and by urgently and substantially improving implementation of public investment in infrastructure and human resource development. Faster trade liberalization would go far toward increasing the private sector's confidence in the reforms. To further reduce the costs of policy uncertainty for the private sector, the Government's second priority should be to make the deregulation of the private sector much more effective, giving it the flexibility to make unfettered business decisions relating to investments, production, trade, international payments, and employment.

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Bangladesh: from stabilization to growth by Shekhar Shah, Pradeep Mitra


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