Tue 28 Aug 2007
Recent UV blog entries has focused on Expatriate Disillusionments (mainly as it related to the potential to go back and work in Bangladesh), however it is probably also high time to look at disappointment by potential investors (NRB and foreign) also. For a country that desperately needs more investments (and not necessarily more aid, but that is a different topic altogether) it is beyond comprehension why the Board of Investmemt (BOI) in Bangladesh lacks the necessary funds and competent manpower to discharge its duties. As with many other state institutions in Bangladesh it is safe to say that corruption, nepotism and mismanagement has prevented the BOI from being able to bring about a positive change in Bangladesh. However it is not too late yet, maybe BOI can yet play a positive role in the Bangladesh economy much like its peer organizations in Pakistan and the Philippines to name a few. Today’s article in the Daily Star (see here) article may signal a welcome sign of change. But as Robert Frost once mentioned in one his poems “…I have miles to go before I sleep”, there is a lot of ground to cover for the BOI. The Daily Star article mentions that even the official BOI website needs help. That is easy to validate. For e.g. under the “Opportunities” tab of the BOI website, I found no mention of pharmaceutical related investment opportunities, although Bangladesh is one of a handful of developing countries with exemption from WTO restrictions regarding patent rights. Bangladesh and other developing nations will enjoy the exemption until 2016 while the other medicine exporting countries will be bound to have the patent rights from next year as per the rules of World Trade Organisation (WTO). As with most investment opportunities time is of the essence but this is a factor that the successive Bangladesh governments have failed to grasp.
Here is to hoping that institutions that can help the basic infrastructure of the Bangladesh economy receive the necessary attention and help that they deserve.
August 29th, 2007 at 12:23 am
I cant agree with the statement “maybe BOI can yet play a positive role in the Bangladesh economy much like its peer organizations in Pakistan and the Philippines to name a few. Today’s article in the Daily Star (see here) article may signal a welcome sign of change.” At best its a deep hope on your part. The article basically demonstrated here how the whole impetus of the BoI’s accomplishments came from the individual efforts of the *former* executive chairman.
If you read the previous four reports from this series (available in their archives from the past few days), it is easy to see how painfully rotten this body is. The malaise inside it is institutional, and to say that appointing a handful of individuals can turn the tide around dramatically once again opens us up to wishful thinking and irrational expectations. BoI should essentially no longer be a “state run body”.
It ought to be fully professional and independent from being tied to the BCS. As long as we rely on self-assured civil servants, I doubt it will ever be able to meet the competitiveness of a professional corporate body with proper logistics, communications, creative marketing, administrative, legal and fiduciary support services, relationship managers, etc that any foreign investor would want. They’re far away from providing “boutique” services that Singapore, Malaysia, Taiwan, Thailand, India and China provides.
August 29th, 2007 at 12:44 pm
More than a dynamic BOI what is required is the necessary infrastructure and environment for profitable and sustainable equity injection into the economy.
BOI’s marketing competency may attract investors interest but to materialise it we need stable political environment, and supportive policies.
In 90s Japanese ambassador said ‘ we can bring the horse to the river bank but we can not force it to drink’.
We can see almost 7 billion dollar investment proposals remains as idle. Domestic investment should come forward as well.
We need a good foreign policy, HRD policy. BOI merely a supporting organaisation yet poorly equiped and structured, so it’s effectiveness will remain illusionary.
we need to put our attention deep into the actual matter, infrastructure, capacity building and write thinking. Mere talking or making phony analyses will not help as these are may not intnded to help the matter, Rather aimless utterances.
August 29th, 2007 at 1:03 pm
AmmarK
I agree with you. Even as I was writing this I think I knew that BOI has a mountain to climb. In general I do not want to fall into the same old trap of negativity so I guess I turned to wistful thinking instead.
You stated that “It (BOI) ought to be fully professional and independent from being tied to the BCS”. Believe it or not I was actually contemplating exactly teh same thing. As I looked at the resume of the current Chairman I realized that starting from the very top BOI has probably very few individuals with enough finance/investment experience that is needed at an institution like this. In addition, you need to have sales experience too. After all you have to “sell” Bangladesh as a attractive investment destination! Just having administrative abilities will not get the BOI where it needs to be. Only when you open up the search to include everyone will you be able to attract the right individuals (note: that is what the Pakistan BOI did and they attracted a bunch of expatriate officers with MBA’s from Top Business Schools in the USA).
August 29th, 2007 at 1:38 pm
#1 - Thanks for pointing out that the Daily Star had a series on the BOI. Here are the relevant links for those interested:
http://www.thedailystar.net/story.php?nid=1358
http://www.thedailystar.net/story.php?nid=1451
http://www.thedailystar.net/story.php?nid=1588
http://www.thedailystar.net/story.php?nid=1681
August 29th, 2007 at 3:42 pm
Bloggers:
Read this article too, I am just sharing an information.Please don’t see the political part of the arguments but some important points are discussed by M.Rahman arise some question in the reader’s mind.
http://www.dailynayadiganta.com/fullnews.asp?News_ID=39808&sec=4
Last, we need collective effort for FDI.It has to come from the postion party and opposition party and from all the people of the country.
thanks
Kawser Jamal
Admin: The link is very much related to the thread, thanks)
August 29th, 2007 at 4:08 pm
Rahat,
Thanks for brining this issue to the forefront. You bring up some great points. This organization probably needs to be the most dynamic organization than any other in Bangladesh yet this is probably given the lowest priority after successive administration. I would think that the CA would place greatest importance on this. In Business perception is reality and no one has done to change the view of perception of poverty stricken Bangladesh with no business potential.
The Top business school MBA formula you described has been followed in many countries (i.e. Brazil, South Africa) and is in practice in Colombia at the moment.
If you one can sell a country that was synonymous with drug trades, military junta etc etc for the last quarter century then you can easily sell Bangladesh.
Please write a letter an open letter to the CA to highlight the point you raised. BOI should be given the outmost priority at the moment with competent leadership and team. Two programs that can be initiated by BOI is to implement an 2 month Internship or 1 year training program that allow NRB MBA candidates to spent their time in BOI.
We have enough MBA alum and current students to partner with top business schools make this program a possible option for Business School candidates in the U.S.
You have my support
August 30th, 2007 at 3:59 am
All,
We are concern of this news that Garments are not doing well it suppose to be. I like to blame all of us who worked hard to tarnish the image of Bangladesh in abroad in the name of military government, lati and botia violent movement, not supporting CTG and making them as villane for Bangladesh.
It’s like shot out own legs. If we fall behind in export, no body will come to us give free money, hey you guys have lost because Hasina and Tareq are in jail. Please take few billion dollars.
This is so pathetic that we could not wait and give them some times. We have started the all out campaign to fail them once the have taken the power. We could do this movement after their time is gone until December 2008.
We just remind foreign countries, please do not invest in Bangladedsh because we have military govt, we are violent, we can burn your companies in Bangladesh anytime we want. We will keep fighting until we all are dead for the power in Bagladesh.
There are conspiracies against Bangladesh all the time but we have to over come that. Nobody will help us unless we help ourselves.
I am not saying he or she is right or wrong, can we just wait and do not do any vilent stuff in Bangladesh and show foreign countries that we mean business and we mean development who ever is in power in Bangladesh.
-M. M. Chowdhury (Mithu)
Shortcut to: http://www.thedailystar.net/story.php?nid=1873
August 30th, 2007 at 7:32 am
could we follow up and set this in motion? we can also link students from dhaka on this. we need one good contact at BOI who will work with us on this. I understand govt is not requiring any visa for foreigners any more.
August 30th, 2007 at 8:35 am
MM Chowdhury,
i read the report and it says the report is for the financial year June 2006 to June 2007. I don’t think any protest, bhangchor happened against military gov till june?
As the report indicates, there are various factors like the labour unrest in October last year, weakened US economy etc were to be blamed.
We need fix our house first before we look for conspiracy. There are so many people inside US who are criticizing Bush. Are those Americans all enemy of America?
August 30th, 2007 at 1:50 pm
Asif,
I think a proactive and constructive move as you suggest is possibly the best way forward. I will see if I am able to get any contact info at BOI to help us help them (so to speak).
#6 (Concerned Citizen) - I like you idea about the open letter to the CA, my only concern is that with so many other pressing issue of national concern, our open letter may not get the attention it deserves. In any case I will try to draft one up over the weekend.
August 30th, 2007 at 4:15 pm
#Rahat
“my only concern is that with so many other pressing issue of national concern, our open letter may not get the attention it deserves”
This issue is also very pressing and above all economy drive politics, not the other way round.
We need young,energetic,dynamic,honest,business savy personals to represent us to the International Market.The young graduates could be the catalyst of change in this endeovor.One thing for sure I don’t belief that only the gradutes from named and famed school can do this any graduates from any where can do this as long as he has high grasp over the business knowledge on subject matters.
We need to aid our doors to the young and vibrant people to show their skills. If so many of us working for Fortune 500 companies, I am sure they have hired us for our skills and knowledge mostly not for our contacts.
You go ahead and draft a plan.We will all push for it to reach the right place. Together we all can make a differences as long as we are working together for a common goal.BOI has to listed to us.
I talked about this on other thread on the arrival of Intel Chief.I put the same question we need new blood of leaders and graduates and new generation to come forward and represent us than the old guards, who don’t even know about the world market or globalization but representing our country in their own manner with out any process or procudures or any proper business plan of action or institution.
Thanks and wish you all the best, I am with you on this too.
thanks
Kawser Jamal
August 30th, 2007 at 5:51 pm
#4 Rahat
The link to the last post is here Part V. I have read them all and its very nicely written and has some articulation.Hope this will help you on drafting a plan. If I could be of any help, let me know.My email:kawserjamal@gmail.com
http://www.thedailystar.net/story.php?nid=1822
August 31st, 2007 at 4:28 am
“We need fix our house first before we look for conspiracy. There are so many people inside US who are criticizing Bush. Are those Americans all enemy of America?”
Siraj,
I think that you are missing the point. Criticizing any leader or current Govt is your democratic right. But making voilent political movement, destroying public properties and involved in anti Bangladesh movement to tarnish her image are not your democractic right.
We can argue all day and nite what the cause of Garments industries fall, but the bottom line is that Garmenst buyers think that Bagladesh has political unrest and violent protesters can burn any industries, hortal can cause shipment dealy. Why do they will come Bangladesh to buy garments after all these obstrucles. So they moved to different countries for their products.
So blame goes on to us, it does not to the buyers. We keep them off from Bangladesh for our own craving for power in Bangladesh.
Best wishes,
M. M. CHowdhury (Mithu)