The report is encouraging, especially when good tidings have been in short supply. It should help dispel doubts that crept in about the FDI inflow into the country largely because of lack of any authentic analysis based on comparative studies of situations prevailing globally. In fact, there were differing opinions on this issue at home. Bangladesh's FDI growth rate of 72 percent is better than that of all the South Asian countries except Pakistan, the UNCTAD report has asserted. This is an important development, since we have done better than some of our competitors, although in percentage terms.

The Unctad report has attributed the better FDI standing to improved investment environment in the country and privatisation of assets. This is a significant observation since the rules governing FDI have been greatly liberalised and there is now a highly competitive investment package available to the prospective investors. But imagine how much more could have been achieved if the country had not been gripped by lingering political confrontation and instabilities. The political parties, on either side of the divide, should address the issue and contribute significantly to improving our image as an investor-friendly country by making a common cause of economic development.

Bangladesh has also surpassed the global economic growth rate of 5.1 percent with an average growth rate of 5.4 per cent. But as the unresolved economic issues suggest, our performance must improve further to achieve the desired level of economic development.

The enhanced buying capacity of the people and macro-economic stability have been identified as reasons behind the greater FDI inflow. But people in general have to absorb the inflationary pressure which obstructs improvement of the standard of living. So the fruits of greater FDI are yet to be reaped by the masses.

Finally, the recent GCR report has placed Bangladesh down to 110 out of 117 countries in terms of competitiveness. This should not go unnoticed, because the country is paying a high price for corruption and lack of good governance. The FDI success could be greatly offset if the government fails to address these problems.