President of International Chamber of Commerce-Bangladesh, the world business organization Mahbubur Rahman said that on top of everything else, the most important agenda for the government should be to take effective and long-term measures to contain inflation and hand over power to the elected representatives, as promised, by the end of 2008 through holding a free, fair and credible election.

While presenting the Report of the Executive Board at 13th ICC Bangladesh Annual Council 2007 held at the Conference Hall of MCCI, Dhaka on May 24, 2008 Rahman further observed that a democratic government is a pre-requisite for any sustained development of a nation.

Regarding Bangladesh economy Rahman observed that against the estimated growth of 6.5 percent in FY07, the GDP growth for the FY’08 was projected at 7 percent. However, recent domestic and global developments including natural calamities, temporary disruptions in domestic production, and adverse price developments in the international market, have adversely affected the growth performance of the economy requiring a downward adjustment of the earlier projection.

The Annual Report mentioned that the risks that Bangladesh economy will be facing in the coming years in general are upward trend with considerable degree of volatility in the world economy. Moreover, constraints in domestic revenue mobilization with continuing dependence on international trade tax remain a major problem.

As a result of expected bumper ‘Boro’ harvest, the country will probably be able to overcome immediate food crisis. However, considering the overall food situation that the world is currently facing and expected to face in the years to come, Bangladesh has no option but to become self-sufficient in food. Being the 4th largest rice producing country of the world, Bangladesh has all the capabilities and potential to meet its own food requirement, Rahman said.

Therefore, Bangladesh must draw up a Master Plan having sufficient investment in agricultural research, provision of appropriate incentives to farmers to go for cereal production as well as ensuring proper management and modernization of the sector. We hope that through an articulated and coordinated effort of the government and the private sector Bangladesh can achieve its target production to feed the millions in the years to come, the Report observed.

ICCB Report marked that the latest World Bank and IFC publication on “Doing Business 2008: Bangladesh”, has ranked Bangladesh as 107 out of 178 economies. The report mentioned that it requires 8 procedures, takes 74 days, and costs 46.20% GNI per capita to start a business in Bangladesh.

As such, concrete measures must be taken to ease our various procedural complexities for investment as well as improve the country’s image for creating a business and investor friendly environment. Besides, in order to attract further investment which we need desperately for our growth and development; we should be able to offer at least same if not better incentives so that the investors

could make their long-term plan. For all these, we feel it is of utmost importance to have public-private partnership and continuous dialogue for taking comprehensive steps instead of piecemeal approach to improve business climate, the Report said.

The Report observed that the year 2007 witnessed a slowdown in investment activities both in private and public sectors. The changeover of 1/11 had brought an immediate sigh of relief to everyone, including traders-big and small- and owners of industrial units and financial institutions, who took the main brunt of the violence on the streets. Despite positive gains and improvement in different areas in the country, especially governance, the changeover has also taken some tolls on business and economy of Bangladesh. The economic indicator more or less reflects the trend.

According to ICCB Report, the global economic watchdog — International Monetary Fund (IMF) – has cautioned that the global economy will post its weakest performance in 5 years. According to IMF, growth will be about 4.1 per cent, the worst performance since 2003 when growth was 3.6 percent. Whereas, the World Bank report projected that the world economy will slow down in 2008, but strong growth in developing countries like China and India will offset weakened developed economies like the USA.

The Council marked that the World Economic Forum in its report, released in January, 2008 highlighted the need for new thinking and concerted action on a number of problems. The report also warns that food security will become an increasingly complex political and economic problem over the next few years. Global Risks 2008 focuses on four emerging issues, namely Systemic Financial Risk, Food Security, Supply Chain Vulnerability and Energy.

Despite all odds the ICCB Council expects that the various reform measures that have been taken by the Caretaker Government would definitely contribute in forming a strong base for the future economy.

Among others, ICCB Vice Presidents Latifur Rahman & Samson H. Chowdhury, ICCB members Rafique-ul-Huq, Bar-at-Law, Dr. M. Zahir, Bar-at-Law, FBCCI President Annisul Huq, DCCI President Hossain Khaled, BKMEA President Md. Fazlul Hoque, BIA Chairman A. K. M. Rafiqul Islam, FCA, BAB Vice-Chairman Muhammad A. (Rumee) Ali, Former BAB Chairman Syed Manzur Elahi, Former FBCCI President Mir Nasir Hossain, Former BIA Chairman Nasir A. Choudhury, Newage Garments Chairman A. S. M. Quasem, Bengal Fine Ceramics Chairman R. Maksud Khan, Adviser to the Board Berger Paints Masih Ul Karim, Chairman Arlinks Limited Rokeya A. Rahman, Citibank, N. A. Country Officer Mamun Rashid as well as MD/CEOs and senior officials of banks, insurance companies, national and multinational companies also attended the Council.