DHAKA and SAN FRANCISCO—The Bangladesh private sector is severely limited in its ability to grow and create jobs because of government barriers and constraints, according to an extensive study released today by The Asia Foundation. In a first of its kind survey in Bangladesh, 3,800 firms in 19 districts were asked to comment on the business-friendliness of their local authorities. They were polled on measures such as entry costs, transparency, informal charges, tax administration, and land security; and their provinces were then ranked in order of business friendliness. According to the 2010 Bangladesh Economic Governance Index, or EGI, Faridpur, Dinajpur, and Kushtia are the most business-friendly districts in Bangladesh. Tangail, Chittagong, Barisal, and Rajshahi are the least business-friendly.

Created by The Asia Foundation, the EGI is a tool to measure the business-friendliness of local governments and is already in use in countries across Asia, including Cambodia, Vietnam, Indonesia, Sri Lanka, and now, Bangladesh. The 2010 Bangladesh EGI is a collaborative effort between the Foundation and the Bangladesh Investment Climate Fund (BICF), managed by IFC (a member of the World Bank Group), in partnership with the U.K. Department for International Development and the European Union.

The survey was released to leaders in government and the private sector in a symposium on August 1, 2010, in Dhaka.

The private sector in Bangladesh, particularly micro, small, and medium-sized enterprises (MSMEs), plays a critical role in generating income and employment opportunities. Conducted prior to the survey, a sample listing of more than 55,000 businesses in 19 districts confirmed that Bangladesh’s economy is dominated by micro-enterprises—more than 97 percent of the firms employ less than 10 workers, and less than 1 percent of the firms have 20 or more employees. The private sector in Bangladesh is dominated by men, with less than half of one percent of the firms owned by women.

“In Bangladesh, where The Asia Foundation has helped inform economic reform at the local district level for more than four years, business people often complain about the local economic and administrative environment,” said Syed Al-Muti, Director, Bangladesh Local Economic Governance Program at The Asia Foundation. “The 2010 Bangladesh EGI identifies good practices and highlights areas for improvement for local governments. The survey provides an economic baseline and strengthens the advocacy capacity of business leaders to engage local government officials.”

The Asia Foundation is recognized in the international community for using empirical data as a basis for economic reform and development. In Cambodia, the EGI is used as an official barometer to measure the country’s business-friendliness.

“The EGIs present a picture of what is working and what is not,” said Dr. Bruce Tolentino, Director for Economic Reform and Development Programs at The Asia Foundation. “Across Asia-Pacific, governments have embraced the EGIs as a sophisticated, empirical tool to measure local reform and government performance. As a result, healthy competition has grown between local provinces, and business leaders and entrepreneurs have relied on the EGI as a useful tool for deciding where to set up businesses.”

The Center for U.S.-Korea Policy, Korean Economic Association, and Korean Political Science Association will co-host a public forum on the Korean development model. During this two-day conference, panels of distinguished international experts will convene to discuss various aspects of the South Korean development experience as a market economy and democracy. Panelists include Kookshin Ahn, Korean Economic Association; Katy Oh, Institute for Defense Analyses; and In June Kim, Seoul National University. Marcus Noland, Peterson Institute for International Economics and Randall Morck, University of Alberta, Canada will serve as keynote speakers. To RSVP please contact Jacqueline Cho at jcho@asiafound-dc.org with name and affiliation.

The Asia Foundation is pleased to announce:

Building Institutions for an Asian Economic Community

with

Barry Eichengreen
George C. Pardee and Helen N. Pardee Professor of Economics and Political Science, UC Berkeley

Srinivasa Madhur
Senior Director, Office of Regional Economic Integration, Asian Development Bank

Tuesday, June 15, 2010
Program with Brown Bag Lunch Noon- 1:00 p.m.

Please arrive early for registration

World Affairs Council Auditorium
312 Sutter Street, Second Floor
San Francisco, California 94108

Asia has been successful in expanding its domestic economies, integrating them, and linking them to the global economy. Market-led integration backed by national efforts and regional cooperation has greatly benefited the region and helped it to sustain high growth. But why, despite a dense network of arrangements and institutions, does Asia remain “institution-lite” — marked by few formal or explicit commitments from member countries in terms of agenda for cooperation? Two distinguished economists will present on the Asian Development Bank’s new flagship study “Institutions for Asian Regionalism: Enhancing Cooperation and Integration in Asia and the Pacific.” Eichengreen and Madhur will lay out a framework to strengthen the region’s institutional architecture to achieve the goal of an Asian Economic Community.

Check-in: 11:30 AM, Program with brown bag lunch: 12:00 PM
Program includes lunch. Seating limited.
Reservations required.
This event is co-sponsored by The World Affairs Council

As a guest of The Asia Foundation
please click here to be redirected to the WAC website
and register at the reduced “TAF member” rate.

The Asia Foundation is pleased to announce:

Institutions for Asian Regionalism: Enhancing Cooperation and Integration in Asia and the Pacific
with

Barry Eichengreen
George C. Pardee and Helen N. Pardee Professor of Economics and Political Science, UC Berkeley

Srinivasa Madhur
Senior Director, Office of Regional Economic Integration, Asian Development Bank

Monday, June 14, 2010
Program with Lunch
Noon- 2:00 p.m.
Please arrive early for registration

Federal Reserve Bank of San Francisco
101 Market Street
San Francisco

Asia has been successful in expanding its domestic economies, integrating them, and linking them to the global economy. Market-led integration backed by national efforts and regional cooperation has greatly benefited the region and helped it to sustain high growth. But why, despite a dense network of arrangements and institutions, does Asia remain “institution-lite” — marked by few formal or explicit commitments from member countries in terms of agenda for cooperation? Two distinguished economists will present on the Asian Development Bank’s new flagship study “Institutions for Asian Regionalism: Enhancing Cooperation and Integration in Asia and the Pacific.” Eichengreen and Madhur will lay out a framework to strengthen the region’s institutional architecture to achieve the goal of an Asian Economic Community.

Check-in: 11:30 AM, Program with lunch: 12:00 PM
Program includes lunch. Seating limited.
Reservations required.
This event is co-sponsored by the Federal Reserve Bank of San Francisco and the California-Asia Business Council (Cal-Asia)

To register, please RSVP to Cal-Asia by June 7, 2010:
jeremy@calasia.org