Containing inflation and handover of power to elected representatives should be the most important agenda for the government, the president of International Chamber of Commerce-Bangladesh (ICC-B) has suggested. The suggestion came at the 13th ICC-B Annual Council 2007 held in Dhaka on May 24, according to a press statement of the organisation.“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,” Mahbubur Rahman said presenting an executive board report.

Regarding Bangladesh economy Rahman observed against the estimated growth of 6.5 percent in FY07, the GDP growth for the FY08 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,” he said.

The ICC-B Annual Report also mentioned that the risks that Bangladesh economy will be facing in the coming years in general includes upward trend with considerable degree of volatility in the world economy. “Moreover, constraints in domestic revenue mobilisation with continuing dependence on international trade tax remain a major problem,” it said.

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,” the ICC-B chief 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 modernisation of the sector. “We hope that through an articulated and coordinated effort of the government and the private sector Bangladesh can achieve its targeted production to feed the millions in the years to come,” Rahman further said.

Concrete measures must be taken to ease 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 the 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.

It observed 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.

The report said the global economic watchdog — International Monetary Fund (IMF) – has cautioned that the global economy will post its weakest performance in 5 years. According to the IMF, growth will be about 4.1 percent, 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 report also warned food security will become an increasingly complex political and economic problem over the next few years.Despite all odds the ICC-B 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.

ICC-B vice-presidents Latifur Rahman and Samson H Chowdhury, members Rafique-ul-Huq, Dr M Zahir, FBCCI President Annisul Huq, DCCI President Hossain Khaled, BKMEA President Fazlul Hoque, BIA (Bangladesh Insurance Academy) Chairman AKM. Rafiqul Islam, BAB (Bangladesh Association of Bankers) 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 ASM Quasem, Bengal Fine Ceramics Chairman R Maksud Khan, Adviser to the Board of Berger Paints Masih Ul Karim, Chairman of Arlinks Limited Rokeya A Rahman, Citibank, NA Country Officer Mamun Rashid as well as MD/CEOs and senior officials of banks, insurance companies, national and multinational companies attended the council.