Although the existing investment and trade related policies of the government on paper and the incentive package for foreign investors are attractive and macro-economic indicators are favourable, yet, the inflow of FDI into the country remains much below the expected level, vis-à-vis other countries of the region, in spite of campaigns and road shows to the effect held by relevant quarters of the government for long.

The situation remains unchanged because of factors like mismatch between written policies of the government and ground realities at the implementation stage, disturbing political and law and order situation, absence of good governance, rampant corruption at almost all levels of the administration and judiciary, inadequate infrastructure and last, but not the least, non-observance of contract sanctity.

Of late, some new factors like dramatic rise of terrorism and religious militancy coupled with procrastination dally-dallying on the part of the government in taking prompt decisions with regard to FDI proposals have added to the country's woes, thereby, adversely impacting on the already existing image problem of Bangladesh. This is worrisome for the country because such a phenomenon has been sending the wrong signals to prospective foreign investors, and the non-resident Bangladeshis abroad, willing to participate in the development process of their home country.

In addition, unstable fiscal and monetary policies of the government, bureaucratic procrastination coupled with inefficiency and corruption, lack of negotiating skills and time consuming judicial dispensation process also create road blocks to investment in general, and foreign direct investment in particular, and frustrate existing investors, both foreign and domestic. The fiscal and monetary policies of the government change quite frequently and at times dramatically, thereby, seriously disturbing the business plans of the investors.

Although it has been more than three decades since Bangladesh appeared on the global map, yet, basic infrastructures like power, port facility, surface and air transportation and, in the present day context, high speed data transmission facility, which are vital for development, remain in shambles.

Visible lack of determined efforts on the part of the government and its apathy towards improvement of the situation are frustrating. Repeated wakeup calls by the country's business community, civil society and its development partners so far appear to have fallen on the deaf ears of the relevant quarters of the government.

There is no denying that there has been marked improvement in the infrastructure sector of the country over the last three decades in spite of severe resource constraints. But, simultaneously, one can see that the improvement process has failed to keep pace with the demands of the time. It is also true that there has been a significant inflow of foreign direct investment during the last decade and a half. But these are peanuts compared to the volume of FDI inflow to other countries of the region. According to a recent UNCTAD report, Bangladesh ranks ninth in respect of FDI flow to LDCs which also below countries like Chad and war torn Somalia. In respect of per capita inflow it ranks some where between 16th and 20th.

There have been some missed opportunities over the years as far as attracting FDI is concerned due to lack of political will, failure in taking timely decisions and the myopic view of successive governments coupled with short sighted group and self interests of the vested quarters. Complacency in this regard would lead the country nowhere. Of late the fate of two substantially big investment proposals, from industrial giant Tata of India, and Asia Energy of U.K. respectively, have become uncertain apparently due to indecision and lack of farsightedness of the incumbent government.

It may be noted here that, in the not too distant past, another big investment proposal from SSA of USA for constructing private container terminals at Chittagong and Narayanganj had to face a similar fate as successive governments failed to withstand undue resistance of the vested quarters and ultimately the investors had to abandon the projects. Had these projects been implemented, efficiency of cargo handling at the Chittagong port would have improved manifold to the benefit of the national economy.

It is obvious that unless the government takes appropriate measures to correct the situation without any further delay, Bangladesh could miss the bus and prospective FDIs will move to other favourable locations of the region. Posterity may not forgive us for the current inaction.

Jahangir Bin Alam is former Secretary, Foreign Investors' Chamber of Commerce & Industry.