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The Business Environment and the Role of Supporting and Regulatory Institutions: An Assessment of a District Town in Bangladesh
Erin Weiser and Franck Wiebe (Editors)
Economic growth in Bangladesh has benefited from two decades of liberalization policies that aimed to increase private sector activity. While reforms have eased licensing and regulatory burdens, particularly for the export sector, the domestic private sector continues to face formidable challenges to growth. This is particularly the case for small enterprises that account for the bulk of private business in Bangladesh. Weaknesses in financial markets, burdensome regulation, and prohibitive policies create market distortions that reduce local competitiveness. The combined effect of poor infrastructure, weak public service delivery, corruption, and security concerns constrain the ability of businesses to function efficiently. While many businesses depend on patronage links to survive, small business owners typically lack the resources and political connections to combat regulatory and informal barriers to business. As a result, a weak enabling environment imposes disproportionately greater constraints to small business growth. The findings of this report contribute to dialogue and debate on the policy environment for private sector development in Bangladesh and inform the strategies of Government and other development partners. The Mymensingh study and the recommendations that flow from it reflect The Asia Foundation's commitment to support private-sector led growth by easing policy constraints that affect the enabling environment and mobilizing domestic constituencies for reform from the private sector, civil society, and government.
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