FDI inflow rises, but inadequate for SDGs attainment

Strict regulations, bureaucratic complexities, inadequate infrastructures, and lack of one-stop service are impeding FDI inflow

Lenin Rahman

The Foreign Direct Investment (FDI) increased significantly in recent months which is good news in the post-pandemic period, but the current FDI inflow is inadequate for SDGs attainment.

Bangladesh is not getting the expected level of Foreign Direct Investment (FDI) inflow mainly for a lack of political harmony, imposing an artificial crisis to gain SDGs (Sustainable Development Goals) and to maintain steady growth of the country.

According to Bangladesh Bank data, the country received US$2.91 billion FDI last year, but experts mentioned that Bangladesh needs at least $10 billion in FDI inflow annually to reach the SDGs by 2030.

FDI inflow increased in the post-pandemic period, but the traditional FDI inflow is contradictory to SDGs attainment. The central bank data dissed that FDI in Bangladesh rose by 50.14 percent to $ 888.48 million in the first quarter (January-March) of the ongoing 2022, compared to the same period in the previous year.

Actually, Prime Minister Sheikh Hasina- led government already adopted multifarious bumper offers for the foreign investors to set up their business in the economic zones including the application of hassle-free, one-stop service, online facility, tax reduction, and rewarding policy, but the overseas inventors are investing a nominal investment in special economic zones, capital market or anywhere else.

The incumbent government adopted a zero-tolerance policy against corruption, but it is prevailing in most of the social, political, and economic dealing. Such a hostile situation is demoralizing foreign investors to invest in Bangladesh.

Poor democratic practices in the leading political parties always impose a negative conception among the overseas investors and the much-awaited stakeholders are being forced to apply a go-slow policy in connection with the large investment in the country.

Bangladesh is going to hold its 12th national parliamentary pool next year and the top leaders of the major political parties are just applying the negative political culture by delivering an unwanted vulgar speech to the rival parties.

Experts mentioned that strict regulations, bureaucratic complexities, inadequate infrastructures, and lack of one-stop service are impeding the adequate FDI inflow.

While talking with the Daily Tribunal, Mirza Walid Hossain, Jubo Economist Forum President underscored the need for applying international standard democratic practices to attain higher FDI inflow in the country.

A true democratic practice in the political parties is a time-befitting demand to prevent widespread corruption, discouraging adequate foreign investment in the country. Disrespectful manner of the political leaders on their rival parties is creating an unfriendly investment situation, representing the country’s political maturity to the foreign investors, he opined.

“Idealistic contradiction is a natural process, but we are opposing each other in enacting laws and policies. We will have to change our mindset to gain national benefit in line with SDGs attainment or beyond”, Mirza added.

He laid emphasis on ensuring political harmony and discipline to secure the desired level of FDI ahead of the upcoming 12th parliamentary election.

Professor Mustafizur Rahman, Distinguished Fellow at the Centre for Policy Dialogue (CPD) underscored the need for ensuring ease of doing business.

The authority is eager to attain higher FDI, but we need to adopt more proactive policies for creating and maintaining an FDI-friendly business environment”, he added.