UNCTAD formally launched last week a detailed review of government rules, regulations, and strategies related to foreign investment in Bangladesh.
The Investment Policy Review (IPRs), as it is known, usually takes about a year to complete. It is the 36th such IPR undertaken by UNCTAD economists at the request of developing country governments. Countries that subsequently implemented the recommendations contained in IPRs have frequently seen increases in foreign direct investment (FDI) inflows. FDI is considered important for stable, long-term economic growth in poor nations.
The review for Bangladesh officially began with a workshop co-organized with the Ministry of Industries of Bangladesh and the United Nations Development Programme (UNDP) office in Dhaka. Some 80 representatives of Government and national business associations attended. The 15 March session was chaired by the Secretary of the Ministry of Industries, K.H. Masud Siddiqui, who said Bangladesh considers private investment, including foreign direct investment, to be at the centre of its development strategy.
UNCTAD economist Quentin Dupriez, who specializes in IPRs, described the main objectives of the review, summarized the substantive issues concerned, and explained the timeline for completion of the project. Richard Marshall, of UNDP’s Bangladesh office, said UNCTAD’s assistance on investment policy falls within the overall United Nations strategy for economic development in Bangladesh.
Participants then discussed how the review could be carried out so that it is most relevant and adapted to the needs of Bangladesh.
IPRs evaluate investment regimes and advise governments on how to maximize the development impact of FDI. A follow-up review is generally performed five years after an IPR is issued to see if the recommendations have been implemented and to determine the effects of altered government policies on FDI flows.
