"A better environment for business is important for the foreign investors," he said speaking at a monthly luncheon meeting of the Foreign Investors' Chamber of Commerce & Industry (Ficci) at Dhaka Sheraton Hotel yesterday.

The British envoy who is going to leave Bangladesh soon on completion of his tenure said a reduction in corruption will reduce costs and lead times of business.

He also pointed out that political interference, absence of a level playing field and shortcomings in the infrastructure are hindering business.

Carter put accent on promoting good governance, transparency and international standards of efficiency for boosting business.

Citing the example of the recent flag ordinance issue, which put the garment industry 'in jeopardy', he urged the leading business organisations to promote a common agenda apart from raising voice individually in pursuing their own sectional interests.

"The leading private sector trendsetter business organisations like Ficci can achieve what the politicians rarely do-- coming together in the national interest," Carter said.

The British High Commissioner emphasised promoting the common interest of creating a truly enabling environment for democratic development in Bangladesh and the region.

He suggested formation of a joint secretariat of the business groups to focus their reform activities. The 'dedicated and professional' secretariat would highlight the problems and bottlenecks in business and alert policymakers.

Speaking at the meeting, Ficci President Wali Bhuiyan said since the official aid pipeline is getting dried up day by day, larger volume of foreign direct investment (FDI) is the only alternative left with LDCs.

Each LDC will not only have to create an enabling environment to attract FDI but compete among themselves harder for the scare resource, he added.

"Most LDCs have not been able to benefit from the policy changes mainly because the reality in most LDCs is very different than what is written in their books."

To attract FDI, many LDCs including Bangladesh have brought in investment friendly policy changes, liberalised investment regimes and have in place attractive fiscal incentives and legislative reforms, the FICCI president said.

He felt regional co-operation and possible integration must be explored seriously by all least developed nations.

The process of globalisation has been uneven, Bhuiyan said, adding all countries are not getting benefitted from globalisation. "The LDCs account for only 0.5 per cent of global FDI inflows."