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FDI inflow to Bangladesh dropped by over 50 per cent |
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October 4, 2000
Dhaka (UNB) – Foreign Direct Investment (FDI) inflow to Bangladesh dropped by over 50 per cent to USD 150 million in 1999 from the level of USD 308 million in the previous year. The figures were estimated using national and secondary sources, according to the “World Investment Report 2000:Cross-border Mergers and Acquisitions and Development” launched worldwide yesterday. In Bangladesh, the WIR 2000, one of the three flagship publications of United Nations Conference on Trade and Development (UNCTAD), was released at a press conference at CIRDAP auditorium. “The FDI inflow may have fallen due to 1998 flooding and lack of effective measures,” said Dr Debapriya Bhattacharya, executive director of Centre for Policy Dialogue (CPD) while introducing the report. The report said FDI inflow to Bangladesh declined after increase in the previous two years. The FDI inflow stood at USD 308 million in 1998 and USD 111 million in 1997, which was USD 45 million in 1996. In 1999, Bangladesh received only 0.02 per cent of the world FDI inflows of USD 865 billion that increased by 27 per cent over the previous year. The FDI inflows to south Asian countries declined by 13 per cent to USD 3.2 billion. India, however, remained the largest recipient to record at 2.2 billion or 45 per cent in 1999. Debapriya suggested political stability, economic reform and a regulatory framework to explore the country’s FDI potentialities. Replying to a question, he said Bangladesh lack a proper estimate of FDI inflow. The central bank figures are insufficient and the Board of Investment figures show only the registered figures, he added. He said BOI does not include the investment figures of the Export Processing Zones. The WIR 2000 used the figures of Bangladesh Bank, EPZs and other secondary sources, he said. International Chamber of Commerce (ICC), Bangladesh president Mahbubur Rahman observed that lack of good governance and investment-friendly environment were the main reason behind for poor FDI inflows to Bangladesh. “We have to address the matters, including combating terrorism that were not looked into,” he said. UN resident coordinator in Bangladesh Jorgen Lissner said quality of investment is more important for Bangladesh in the critical competitive world of global trade regime. “I think, Bangladesh has made a significant progress but it’s not enough. The country will have to reach a certain platform to compete,” he said. |