The government needs to create an enabling environment that will encourage individual initiatives to flourish and for economic activity to continue, says the International Chamber of Commerce-Bangladesh (ICC-B).

“During the last several months, we have witnessed a remarkable heightening of political activity and agitation. It is expected that before the elections there will be increased political activity — that is only healthy in a democratic society. Yet, regular elections are still six to nine months away; it is too early for a rise of pre-election political activity,” the ICC-B said in the recent editorial of its news bulletin.

The current ICC-B News Bulletin (Jan-Mar 2013 issue) of ICC-B was released Wednesday, reports UNB.

The bulletin said Bangladesh has been attracting positive attention globally, for its economic potential, competitive strength and its growing domestic market. Among investors, both foreign and domestic, there is a sense that the economy has come of age, and is on the march.

It said the year ahead poses major challenges as many wonder if the political tensions that have emerged will damage the countrys prospects.

The fundamental question is whether the countrys political leadership recognises the role that the government plays in economic development. Despite the enormous challenges, the people have taken the country forward on the economic front.

The major political parties have a responsibility to the nation. Bangladesh is foregoing non-party government for national election whereas, Nepal and even Pakistan are opting for interim non-political government to conduct elections.

“This issue must be laid to rest: the form of government to conduct future elections and ensure stable government and an effective parliament. The two major political parties must settle this issue, and move ahead to confront the other challenges facing us,” it said.

The bulletin said what the country is now involved in has the potential to engulf the country and society in clashes and polarisation. “Short-sighted policies, and lack of leadership and statesmanship, are leading us to what may soon be an inflection point for the country,”

“Which way we will be headed will require sagacity and commitment from our leadership; so far, we have seen no evidence to give us hope,” it added.

The hard-working common man must be given the chance to develop their potential and make Bangladesh a country that all can be proud of.

The ICC-B bulletin said that during the past decade, the economy has maintained a steady growth of about 6 percent despite all the obstacles. Human development indicators went hand-in-hand with economic growth, signaling a population base capable of sustaining the growth. Poverty dropped significantly, coupled with increased life expectancy, literacy, and per capita food intake.

More than 15 million Bangladeshis have moved out of poverty since 1992. At the same time, although the population growth rate has declined, every year there are more than two million entering to the job market. Sustained growth has also led to an exponential increase demand for energy, transport, telecommunication and other services.

Bangladesh targets to become a middle-income country by 2021. This will require herculean efforts in many fronts, particularly in investment, macroeconomic governance, and tackling energy and infrastructure deficits.

To achieve the desired objectives, Bangladesh needs to grow between 7.5 to 8 per cent per annum with a minimum investment of 25 per cent of GDP. The Bangladesh Bureau of Statistics and the Bangladesh Bank have recently projected 6-6.2 per cent growth during the current FY, whereas several agencies place the estimate below 6 per cent.