Bangladesh had experienced a very difficult time both economically and politically during 2006. It had to face serious challenges man-made and otherwise. Political dilemma, erratic power supply, increasing prices of essentials, inflation, deteriorated law and order situation and governance problems pushed the country into a political brinkmanship which led to the Declaration of State of Emergency, according to the Editorial of the current News Bulletin of International Chamber of Commerce-Bangladesh (ICCB) released today.

Despite political upheavals and various other shortcomings, Bangladesh economy has been achieving a 5.5 per cent growth year after year, with the GDP reaching to 6.7 per cent in the FY 2005-06. It is evident that the economy is on a right track mainly due to resilience of the private sector. As a result living standard has improved with a steady growth in employment. Bangladesh is in the process of integrating itself with the world economy and will continue to do so irrespective of changes at the domestic front, observed ICCB Bulletin.

The Asian Development Bank (ADB), in its annual development outlook, has revised its earlier forecast of 7 percent growth to 6.5 percent for Bangladesh, while the central bank estimated that it may reach up to 7 percent during FY2007. However, in our view both the projections are well below than the ADB’s projected growth rate of over 8 per cent for other South Asian countries. Thus, Bangladesh would be trailing this projection of regional growth which only underlines the need on its part to accelerate its growth momentum.

There are no reasons now for Bangladesh not to post higher GDP in the backdrop of the peaceful conditions that has been created after January change-over. Even under chaotic and awfully disruptive political conditions that gripped the country earlier, the economy continued its impressive growth. Why then the trend shouldn’t continue in a favourable atmosphere?

However, the experts rightly sounded caution about a declining trend and link it with the government’s tough actions that perhaps created a panic that has led to a slower business operations or new investment.

The Business leaders have conveyed their support to the positive steps taken by the Care-taker government when they met the Chief Adviser and Adviser for Finance and Commerce recently. They, however, opined that drive against corruption should continue without creating unnecessary panic among the businesses. Praising the recent decision of reconstituting the Anti-Corruption Commission (ACC), separation of judiciary, the anti-hoarding policy, improving power generation and Chittagong port operation, the leaders have suggested for reforms of the National Board of Revenue, strengthening the country’s trade negotiations capacity and capital market development. We strongly believe that all these suggestions were timely.

Business leaders have voiced their concern over empowering the ACC to arrest suspects and freeze their assets without any court order under a non-bailable section. The leaders also expressed their apprehension that the proposed new provision of law can be used as a tool for harassment and therefore, suggested that if within the ‘Emergency period’ such a provision cannot be dispensed with, then its implementation should at least be made contingent upon ‘approval of all the Commissioners of the ACC’, which is very much logical.

Tax evasion has taken a serious proportion. ICCB in its editorial endorsed the business leaders’ suggestion that a time bound ‘exit route’ may be considered for those who evaded taxes; at penal rates. However, unscrupulous politicians and their cronies who had indulged in large scale corruption should not be spared.

The Editorial endorsed business leaders appreciation of the timely initiatives by the government for bringing in political stability, streamlining the administration, bringing the corrupt politicians and their cronies into task. The country will be indebted to this government for presenting a free, fair and credible election for bringing back much needed stability for sustained growth and prosperity to match with the other members of the region, said the Editorial.