Political Environment in Bangladesh and its Impact on International Trade
The interface between international trade obligations and domestic regulation of trade, health, safety and the environment, special and differential treatment of developing countries dictates whether a country will be able to gain from trade, commerce which contributes to development of a country. Since, independence, the political environment of Bangladesh has been fragile due to its lack of proper democratic practice, self fulfilling prophecy and decision making with inadequate knowledge of international relations. Therefore, it is a dire need to know the impact of political foresight to gain advantage in international trade.
Overview of Political…show more content…
So, contribution by Bangladesh Awami League, the Jatio Party and BNP has been immense in increasing international trade.
The potential areas for investment in Bangladesh include: agriculture, fisheries, agro-based industries, chemicals, light industries, natural gas and oil exploration, textile, tourism, energy sector, telecommunications, etc. Although the prospects for foreign investment in Bangladesh are otherwise bright, we have at the same time some barriers to investment. Such barriers include mainly Political instability a common problem in Bangladesh. Though we expected substantial change in our political environment, we are not observing any positive signs yet. This is a major disincentive for foreign investors.
Most of the trade unions of the country have political ties with the parties in power and opposition. This hampers industrial production and pollutes the with environment. As a result, production target fail, the industry incurs losses.
The country has liberalized its banking and telecommunication sectors. Although, Bangladesh did not make any commitment in financial sector under GATS but the rate of liberalization in the financial