Black_cats
ELITE MEMBER
- Dec 31, 2010
- 10,032
- -5
Bangladesh moves up seven spots on economic freedom index
Ibrahim Hossain Ovi
A partial view of Malibagh-Mouchak-Moghbazar flyover in Dhaka demonstrates the country's infrastructural development, which has helped Bangladesh move up in the economic index Syed Zakir Hossain/Dhaka Tribune
Heritage Foundation says Bangladesh’s economic freedom score is 55.6, making it the 121st freest economy in 2019
Bangladesh's ranking on economic freedom has moved up seven notches to 121st from 128th this year, according to the Heritage Foundation, a Washington-based think tank.
According to the 2019 Index of Economic Freedom released by the organization on Thursday, the government’s reforms have improved the freedom of doing business in the country. However, slower implementation of the reforms are undermining economic development.
“Bangladesh’s economic freedom score is 55.6, making its economy the 121st freest in the 2019 index,” said the report.
While the country's overall score has increased by 0.5 points, it scored higher in terms of property rights and "government integrity countering declines in investment freedom and fiscal health", the report added.
In the 2018 Index of Economic Freedom, Bangladesh’s position was 128th, with a score of 55.1 points.
Bangladesh also ranked 27th among 43 countries in the Asia-Pacific region, and its overall score is below the regional and world averages, showed the report. The world average freedom score is 60.8 points, while the Asia Pacific regional average stands at 60.6 points.
As per the report, robust annual economic growth of approximately 6% for two decades has been driven by a rapid increase in private consumption and fixed investment.
"Nevertheless, Bangladesh still grapples with poor infrastructure, endemic corruption, insufficient power supplies, and slow implementation of economic reforms," the report stated.
On the other hand, the report found that the "fragile rule of law" continues to "undermine economic development", while "corruption and weak enforcement of property rights" force workers and small businesses into the informal economy.
Furthermore, despite some progress in "streamlining business regulations, entrepreneurial activity is hampered by an uncertain regulatory environment and the absence of effective long-term institutional support for private-sector development", according to the report.
The report also stated that although a well-functioning labour market has not been fully developed yet, labour productivity growth has been slightly higher than wage hikes.
The index also revealed that in the South Asian region, Nepal ranked 136th, Sri Lanka ranked 115th, Bhutan ranked 74th, India 129th, Pakistan 131st, and the Maldives achieved the status of 141st economy.
Hong Kong, Singapore and New Zealand each logged increases in their index scores, finishing first, second, and third in the rankings, respectively scoring 90.2, 89.4, and 84.4 points.
The Index of Economic Freedom evaluates countries on four broad policy areas that affect economic freedom—rule of law, government size, regulatory efficiency, and open markets.
Additionally, property rights, judicial effectiveness, government integrity, tax burden, government spending, fiscal health, business freedom, labour freedom, monetary freedom, trade freedom, investment freedom, and financial freedom are also taken into account while measuring the economic freedom of a country.
Economists and industrialists have expressed almost identical views on the report, stressing on doing more regulatory and on-site initiatives to improve the ease of doing business to take the country to a faster and sustainable economic growth trajectory.
Speaking to the Dhaka Tribune, Abdus Salam Murshedy, managing director of Envoy Textile, said: “Access to finance and getting a business registered is now better compared to previous years. This is because of government initiatives ensuring faster services.”
He added that steady growth and political calmness have also helped Bangladesh in improving on the index.
“Some initiatives have been undertaken in recent times to improve the business environment. Bangladesh Investment Development Authority has taken steps to make vibrant the one stop services. But the implementation is not yet at satisfactory level,” former caretaker government adviser AB Mirza Azizul Islam told the Dhaka Tribune.
Since there is no significant improvement in regulatory efficiency and good governance, the rise in ranking does not mean significant improvement in the country’s overall “doing business” situation, said the economist.
He urged the government to implement the projects within the deadline to keep the costs within limits.
“Upward movement in the economic freedom index is a good sign, but it is not enough in terms of improving quality,” said Centre for Policy Dialogue (CPD) Research Director Khondaker Golam Moazzem.
On economic growth and other improved economic and social indicators, Bangladesh’s status is comparable to other developing countries, but the ease of doing business is comparable only to African nations, said Moazzem.
https://www.dhakatribune.com/busine...oves-up-seven-spots-on-economic-freedom-index
Ibrahim Hossain Ovi
- Published at 09:58 pm January 27th, 2019
A partial view of Malibagh-Mouchak-Moghbazar flyover in Dhaka demonstrates the country's infrastructural development, which has helped Bangladesh move up in the economic index Syed Zakir Hossain/Dhaka Tribune
Heritage Foundation says Bangladesh’s economic freedom score is 55.6, making it the 121st freest economy in 2019
Bangladesh's ranking on economic freedom has moved up seven notches to 121st from 128th this year, according to the Heritage Foundation, a Washington-based think tank.
According to the 2019 Index of Economic Freedom released by the organization on Thursday, the government’s reforms have improved the freedom of doing business in the country. However, slower implementation of the reforms are undermining economic development.
“Bangladesh’s economic freedom score is 55.6, making its economy the 121st freest in the 2019 index,” said the report.
While the country's overall score has increased by 0.5 points, it scored higher in terms of property rights and "government integrity countering declines in investment freedom and fiscal health", the report added.
In the 2018 Index of Economic Freedom, Bangladesh’s position was 128th, with a score of 55.1 points.
Bangladesh also ranked 27th among 43 countries in the Asia-Pacific region, and its overall score is below the regional and world averages, showed the report. The world average freedom score is 60.8 points, while the Asia Pacific regional average stands at 60.6 points.
As per the report, robust annual economic growth of approximately 6% for two decades has been driven by a rapid increase in private consumption and fixed investment.
"Nevertheless, Bangladesh still grapples with poor infrastructure, endemic corruption, insufficient power supplies, and slow implementation of economic reforms," the report stated.
On the other hand, the report found that the "fragile rule of law" continues to "undermine economic development", while "corruption and weak enforcement of property rights" force workers and small businesses into the informal economy.
Furthermore, despite some progress in "streamlining business regulations, entrepreneurial activity is hampered by an uncertain regulatory environment and the absence of effective long-term institutional support for private-sector development", according to the report.
The report also stated that although a well-functioning labour market has not been fully developed yet, labour productivity growth has been slightly higher than wage hikes.
The index also revealed that in the South Asian region, Nepal ranked 136th, Sri Lanka ranked 115th, Bhutan ranked 74th, India 129th, Pakistan 131st, and the Maldives achieved the status of 141st economy.
Hong Kong, Singapore and New Zealand each logged increases in their index scores, finishing first, second, and third in the rankings, respectively scoring 90.2, 89.4, and 84.4 points.
The Index of Economic Freedom evaluates countries on four broad policy areas that affect economic freedom—rule of law, government size, regulatory efficiency, and open markets.
Additionally, property rights, judicial effectiveness, government integrity, tax burden, government spending, fiscal health, business freedom, labour freedom, monetary freedom, trade freedom, investment freedom, and financial freedom are also taken into account while measuring the economic freedom of a country.
Economists and industrialists have expressed almost identical views on the report, stressing on doing more regulatory and on-site initiatives to improve the ease of doing business to take the country to a faster and sustainable economic growth trajectory.
Speaking to the Dhaka Tribune, Abdus Salam Murshedy, managing director of Envoy Textile, said: “Access to finance and getting a business registered is now better compared to previous years. This is because of government initiatives ensuring faster services.”
He added that steady growth and political calmness have also helped Bangladesh in improving on the index.
“Some initiatives have been undertaken in recent times to improve the business environment. Bangladesh Investment Development Authority has taken steps to make vibrant the one stop services. But the implementation is not yet at satisfactory level,” former caretaker government adviser AB Mirza Azizul Islam told the Dhaka Tribune.
Since there is no significant improvement in regulatory efficiency and good governance, the rise in ranking does not mean significant improvement in the country’s overall “doing business” situation, said the economist.
He urged the government to implement the projects within the deadline to keep the costs within limits.
“Upward movement in the economic freedom index is a good sign, but it is not enough in terms of improving quality,” said Centre for Policy Dialogue (CPD) Research Director Khondaker Golam Moazzem.
On economic growth and other improved economic and social indicators, Bangladesh’s status is comparable to other developing countries, but the ease of doing business is comparable only to African nations, said Moazzem.
https://www.dhakatribune.com/busine...oves-up-seven-spots-on-economic-freedom-index
