According to the Global Competitiveness Index, Bangladesh’s competitiveness is eroding owing to weakening macroeconomic stability, deteriorating labor market conditions and inadequate progress in infrastructure. Complex administrative requirements and weak entrepreneurial culture have weakened business dynamism. Inadequate skills of the work force and lack of preparedness of the work force to face future challenges of technologies are the other weaknesses. And then there are emerging market risks: rise in energy prices, failure in urban planning, underemployment, failure in climate change adaptation and industrial pollution. Entrepreneurs complain of expectations of bribes in connection with tax payments and low ethical standards of politicians. The extent of corruption has further increased and has squeezed the scope for doing business particularly for the new entrants and micro, small and medium enterprises.
The country is ahead of Nepal and Pakistan but lags behind India and Sri Lanka. Corruption has become a major burden for businesses, which reduces competitiveness both in local and global markets. Though infrastructure has improved the level of improvement is still inadequate to ensure the accepted level of quality. There is some doubt about how sound banks are. A few business groups dominate major corporate activities. Complex administrative requirements and a weak entrepreneurial culture have weakened business dynamism.
