President of International Chamber of Commerce -Bangladesh (ICC-B) Mahbubur Rahman said Bangladesh has done relatively well in developing its manufacturing sector, a key requirement for rapid economic growth.

However, in almost every field of economic activity, the binding constraint has been energy, he said adding Bangladesh is in the grip of a massive energy crisis.

“Mismanagement, inappropriate strategy, corruption, lack of professional approach, shortage of competent professionals, and politicisation of trade unions have created serious crisis in all segments of the energy value chain,” said Mr. Mahbubur Rahman while presenting the report of the executive board at the 14th ICC Bangladesh Annual Council 2008 Tuesday.

The council, before the start of the business session, condemned the brutal and senseless killings by the mutineers of the Bangladesh Rifles and offered prayer. The council extended heartfelt condolences to the members of the bereaved families.

He observed that more integrated private-public partnership was a sine qua non for facing ongoing world economic challenges. In this context, he observed that the business community had worked very closely with the government through the Bangladesh Better Business Forum (BBBF).

“Business leaders are hopeful that BBBF will not only continue to function effectively but will also be further strengthened under the able chairmanship of the honourable Prime Minister,” he added.

The report also observed that democracy must be allowed to function and flourish for a sustained development. Politicians must develop the culture of mutual respect and the development of institutions at all levels is also essential. Parliament has to be made effective, and the centre of all national decision-making processes.

About digital Bangladesh, Mr. Mahbubur Rahman observed that the new government had given ICT a high profile in its plans. In fact, “Towards a Digital Bangladesh by 2021” is an important commitment. The ICT industry has the potential of becoming a very important export industry, and employer of quality manpower. To achieve this, the emphasis on English, on computer and programming proficiency, and exposure to the outside world will be essential.

The annual report said the global financial crisis has now transformed the economies of many countries, pulling some into deep recession. Where Bangladesh has dealings with them, such as destinations of the country’s exports or expatriate workers, recession in those countries are also going to affect Bangladesh as a consequence. The issue is, whether Bangladesh can put in place appropriate policies that will guard the country against the fall-out of such recession. The range of policies should be chosen now, with triggers; the appearance of specific signs should lead to the immediate implementation of policies for those sectors.

The council has marked that the challenge for the country’s development is multifaceted. On the one hand, the reduction of poverty requires investment in the social sectors, such as education, health, rural development, etc. At the same time, without rapid growth of the economy, the reduction of poverty cannot be sustained; this requires an active trade and industrial policy. To reduce poverty from its present level over forty per cent to about fifteen per cent, Bangladesh needs to achieve a GDP growth rate of 8.0 per cent annually during the coming 20 years.

Despite all odds, the ICCB Council expects that Bangladesh will realise its goals and emerge as one of the next eleven fast developing countries, as predicted by Goldman Sachs. The business community’s demand is a business-friendly enabling environment. They expressed the hope that the nation should leave behind it all damaging activities such as hartals, street agitations, extortion, and rent-seeking.

Among others, ICCB vice presidents Latifur Rahman and Samson H. Chowdhury, ICCB board members A. S. M. Quasem, Aftab ul Islam, Kazi Mahmood Sattar, Kutubuddin Ahmed, Mahbub Jamil, Masih Ul Karim, BKMEA President Md. Fazlul Hoque, R. Maksud Khan, FICCI President Waliur Rahman Bhuiyan, ICCB members Rafique-ul-Huq, Dr. M. Zahir, MCCI President Abdul Hafiz Choudhury, Ajmalul Hossain QC, Syed Naser Bakhteyar, managing director of Agrani Bank Limited, Md. Badur Rahman Sarker, managing director of National Bank Limited, Debabrata Datta, regional head of State Bank of India, Laurent Therond, managing director of Nestle Bangladesh Ltd., M. Ghaziul Haque, chairman of Transmarine Logistics Ltd. as well as MD/CEOs and senior officials of many other banks and insurance companies, and national and multinational companies also attended the council.