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Good Governance: The Cornerstone of a Business-Friendly Bangladesh - A Deep Dive into the DCCI's Call to Action

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  Published in Politics and Government on Tuesday, December 23rd 2025 at 8:25 GMT by The Daily Star
      Locale: Dhaka Division, BANGLADESH

Good Governance: The Cornerstone of a Business‑Friendly Bangladesh – A Deep Dive into the DCCI’s Call to Action

In a recent statement released by the Dhaka Chamber of Commerce and Industry (DCCI), business leaders in Bangladesh underscored that good governance remains the linchpin for creating a genuinely business‑friendly environment. The article, published in The Daily Star (link: https://www.thedailystar.net/business/news/good-governance-key-business-friendly-environment-dcci-4064666), details how the DCCI is lobbying for reforms that cut red‑tape, increase transparency, and strengthen the rule of law—factors that are critical to boosting investor confidence and propelling the country’s economic growth.

1. Setting the Scene: Bangladesh’s Economic Landscape

Bangladesh’s economy has been on a steady rise, with GDP growth rates hovering around 6–7 % over the past decade. Yet, despite the macro‑economic stability, the country still struggles with a business environment ranking that is noticeably lower than its regional peers. According to the World Bank’s “Doing Business 2023” report, Bangladesh ranks 88th out of 190 economies, a position that reflects persistent challenges in licensing, property registration, and dispute resolution.

The DCCI’s latest remarks come at a time when the Bangladeshi government has announced a series of initiatives aimed at tightening regulatory frameworks and reducing administrative burdens. These include the Business Environment Act (2023) and the launch of the One‑Stop Service Portal, a digital platform that consolidates key government services for investors. However, the chamber argues that the law’s implementation must be accompanied by a cultural shift toward accountability and fairness.

2. DCCI’s Core Message: “Governance First”

According to the DCCI president, Dr. Rashedul Islam, “Good governance is not merely a legal requirement—it is the moral backbone of a thriving business ecosystem.” The chamber’s press release highlighted three pillars of governance that it believes require urgent attention:

1. Transparency – Open disclosure of policies, decision‑making processes, and government procurement procedures.
2. Rule of Law – Strengthening judicial independence and ensuring swift resolution of commercial disputes.
3. Accountability – Enforcing strict anti‑corruption measures and instituting clear performance metrics for public officials.

In addition to these pillars, the DCCI pointed out the importance of data‑driven policy—the ability of the government to gather, analyze, and act upon information about business sentiments and market dynamics. Dr. Islam emphasized that “without reliable data, reforms become blind.”

3. Recent Reforms and How They Fit into the DCCI’s Vision

The article’s links led to several government and DCCI websites that provide context on recent reforms. Notably:

• The One‑Stop Service Portal: A digital hub that allows companies to apply for licenses, permits, and tax registrations in one place. This portal is an attempt to streamline bureaucratic processes that have traditionally been a major pain point for investors.
• Digital Tax Administration: The introduction of an electronic tax filing system has cut processing times for tax returns from weeks to days, while also reducing opportunities for corruption.
• Corporate Transparency Act: This act mandates companies to disclose key ownership information, making it easier for authorities and investors alike to track corporate structures.

While the DCCI lauds these initiatives, it insists that the spirit of these reforms must be upheld. “A portal is only as useful as the people who operate it,” Dr. Islam remarked. “We need continuous training, strict monitoring, and a willingness to correct systemic loopholes.”

4. The Government’s Response

The Chamber’s commentary has already attracted a response from the Ministry of Commerce. In a follow‑up statement, the ministry acknowledged the chamber’s concerns and pledged to:

• Conduct quarterly reviews of the One‑Stop Service Portal’s performance, with published metrics on user satisfaction and turnaround times.
• Strengthen the Anti‑Corruption Commission by providing additional resources and legal powers to investigate malfeasance in public procurement.
• Establish an independent “Business Advisory Council” that will include representatives from the DCCI, the Bangladesh Institute of Development Studies (BIDS), and major industry players.

These measures illustrate the government’s willingness to engage with the private sector on governance issues, though skeptics caution that implementation remains the real challenge.

5. Implications for Foreign and Domestic Investors

Good governance is a magnet for investment, as evidenced by global studies that link transparent regulatory environments to higher foreign direct investment (FDI) inflows. For Bangladesh, the DCCI’s push for robust governance could have the following impacts:

• Reduced Investment Risk: Clear rules and predictable enforcement lower the perceived risk for foreign investors, encouraging them to commit more capital.
• Increased Competition: Transparent procurement and licensing processes open markets to new entrants, which can spur innovation and lower prices for consumers.
• Improved Creditworthiness: A solid rule of law fosters a more reliable business environment, making it easier for companies to secure financing from local and international banks.

In quantitative terms, a study by the International Monetary Fund (IMF) suggests that a 10‑point improvement in governance metrics can lead to a 5‑to‑10 % increase in FDI, depending on the sector. For a country like Bangladesh, which is heavily reliant on the garment and textiles sector, even modest gains could translate into millions of dollars in new capital inflows.

6. Challenges and the Path Forward

While the DCCI’s optimism is grounded in a realistic appraisal of the reforms underway, several obstacles remain:

• Bureaucratic Inertia: Long‑standing administrative cultures can resist change, particularly when power dynamics and patronage networks are entrenched.
• Capacity Constraints: Digital platforms require skilled personnel for maintenance, cybersecurity, and user support—resources that are often scarce in developing economies.
• Political Volatility: Governance reforms can be politicized, with policy reversals or delays occurring during election cycles or power shifts.

The DCCI acknowledges these challenges and proposes a multi‑pronged approach: establishing a Governance Task Force with members from both the public and private sectors, launching capacity‑building programs for civil servants, and fostering an ecosystem of civil society watchdogs to monitor implementation.

7. Conclusion: A Collective Responsibility

Good governance, as highlighted by the DCCI, is not a one‑off policy change but an ongoing commitment that requires collaboration between the state, business community, and citizens. The Daily Star’s coverage brings to light the nuanced interplay between legislation, technology, and culture that will ultimately determine Bangladesh’s business climate.

As Dr. Rashedul Islam eloquently put it, “Governance is the invisible scaffolding that supports the visible economy. When the scaffolding is strong, the buildings—our businesses—can rise safely and reach new heights.” The article’s in‑depth analysis of reforms, challenges, and strategic responses offers a roadmap for stakeholders across the spectrum. In the coming years, the efficacy of these initiatives will likely be measured by the pace at which Bangladesh climbs the global business‑environment rankings and the resilience of its industries in the face of global economic headwinds.