Political Stability Key to Improving Investment Climate in Bangladesh

Abstract

Bangladesh is a country with enormous potential to grow faster than any other least developed countries (LDCs) of the world. Its strategic geographic location has made it an attractive destination for the ancient merchants as well as the modern multinationals. This is because Bangladesh is located at the middle point of two fastest growing economic superpowers China and India. These two countries have about 2.6 billion populations having increasing purchasing power. Bangladesh has a domestic market of about 15 million consumers. It would be very much cost-effective to produce a product in Bangladesh and market it to India, China, and other countries under the SAARC and other international duty-free arrangements. Besides, all Bangladeshi products (other than armaments) enjoy complete duty and quota-free access to developed countries including the member-states of the European Union Japan, Canada and Australia. Bangladesh is a signatory to the Multilateral Investment Guarantee Agency (MIGA), the Overseas Private Investment Corporation (OPIC), the USA, the International Center for Settlement of Investment Disputes (ICSID), and the World Intellectual Property Organization (WIPO). It has bilateral agreements with 28 countries to avoid double taxation.