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Investment-savings gap may reduce through FDI |
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October 1, 2000
Dhaka (UNB) – Speakers at a seminar yesterday (Saturday) suggested appropriate policy and removal of corruption and infrastructural problems to attract more investment in the country. The Centre for Advanced Research in Social Science of Dhaka University organised the seminar at the DU Lecture Theatre on “Importance of FDI in the Developing Countries with Particular Reference to Bangladesh”. The keynote paper presented in the seminar stressed the need for inducing foreign investors from the newly industrialised Asian countries rather than making aimless and scattered attempts across the world. Nahid Akhter Jahan, a Lecturer of the Institute of Health Economics (IHE) of DU, presented the keynote while Prof Ashrafuddin Chowdhury, Prof Monwar Ahmed and Prof Sushil Ranjan Hawlader discussed on the paper. “The magnitude of FDI in Bangladesh till now is insignificant despite all moves and policy changes towards opening up the economy and encouraging flows of FDI,” the keynote paper said. It observed that Bangladesh like many other developing countries has sought FDI inflows directly through the use of investment incentive packages, but policy changes alone may have a limited impact. “Experiences in many developing countries suggest that policy changes are less effective than adopting specific regulations,” it said emphasising on proper role of the Board of Investment and missions abroad. In the keynote, Nahid Akhter Jahan pointed out various problems including lack of socio-political instability, labour problems, limited base for export and limitations in domestic markets that hinder FDI inflow. Besides, she said, bureaucracy and corrupt practices, inadequate database, lack of appropriate provisions and information gap are among the other major obstacles in attracting FDI in Bangladesh. Prof Monwar Ahmed said if an investor takes any project worth Tk 100 crore, he has to pay Tk 85 crore to the high officials, policy makers, consultants and local influential persons before starting the project. “Only a little amount is actually invested for the development of the project,” he observed. Prof Ashrafuddin suggested that the country should reduce the gap between investment and savings through FDI. |