Business sector must be free from government, political influence

Mr Mostafa kamal, Chairman of Meghna Group of Industries (MGI), country's one of the largest corporate house, in an exclusive interview with the Daily Observer, discussed about the economic growth, potentials and challenges of the industrial sector. A self made business tycoon, he also talked about governance, politics and law & order situation. The interview is taken by Shahriar Feroze, Editorial Chief, Daily Observer

DO: Country is currently passing through a critical transformative period. As an established businessman what do you think should be the coping strategies for our businessmen - until the next general elections are held, and an elected political government assumes public office?
Mostafa Kamal: Since the Interim Government assumed power, it had to go through a sequence of challenges. Ranging from Law & Order crisis, printing money, tackling inflation to abnormal price hike of commodities to other economic challenges, the list is quite long. However, the government also managed to properly address and recover from some of the crises.
However, this critical situation and challenges, I feel, were inevitable because of long-term corruption, mismanagement, plundering of our banks, unimaginable money laundering, deliberately concealing facts while presenting fabricated details and statistics of the national economy. In short, the collective outcome of far too many anomalies had been brewing for some years and exploded through a bubble-burst.

What happened in the process is that the explosion occurred through the previous government collapsing in the face of a mass uprising with multiple effects directly affecting the state, economy and society.

DO: After taking responsibility as chief advisor on 8 August, Dr Yunus led Government had pledged to carry out reforms in multiple sectors. As a businessman what immediate and long-term reforms do you expect in the industrial sector?
Mostafa Kamal: I believe the Interim Government and the business community must engage in regular interactions to ensure mutual benefits. Unfortunately, it is missing. There are dialogues and interactions reported in the media, but the range and scope is fairly limited. Compared to other reform committees, I don't know what reforms the Interim Government will introduce, so to create a more business-friendly environment.

However, it will only be positive for the government to incorporate businessmen and all other stakeholders and jointly address the issue of introducing meaningful reforms in the business sector.

The key prevailing challenges must not continue for too long. Currently, loan disbursements from banks are limited while the interest rate is very high. Under these circumstances, it is not easy for an entrepreneur or a businessman to invest in a new business venture. At the same time, business laws must be favourable and change with the need of time.

DO: What is your opinion on relation between politics and business in Bangladesh? How should the two complement each other for national development?
Mostafa Kamal: I consider it as a very important question. However, the answer to this simple question is very wide in nature with multiple interpretations. The relationship varies under the categories of developed, under-developed and developing countries. Concurrently, the political culture has evolved differently under these 3 categories. Our political culture is not the same that in Europe.

However, I believe business and politics are two separate entities and must not mingle with one another. For instance, in my case, I had been approached numerous times to join politics, but I refrained from it. There are many ways to serve one's nation. A politician serves the nation by doing politics and a businessman also serves the nation by delivering product, service and employment. I chose to restrict myself purely within my business activities.

It is sad that in this sub-continent, a vested group has always attempted to control and manipulate politics in different capacities.

DO: Political instability, poor law-and-order situation and high loan interest rates - all 3 concerning issues continue to prevail while affecting the business environment in Bangladesh - what would you advise or suggest the Interim Government in this regard?
Mostafa Kamal: These 3 key prevailing challenges must not continue for too long. Currently, loan disbursements from banks are limited while the interest rate is very high. Under these circumstances, it is not easy for an entrepreneur or a businessman to invest in a new business venture. At the same time, business laws must be favourable and change with the need of time.

Energy cost is another concern with double the cost. Government can introduce a hike, but a price hike must be discussed and analysed by incorporating all stakeholders. A person with a fixed income becomes the final victim of such unanticipated price hikes. Moreover, unexpected and steep price hikes also triggers anarchy and chaos leading to crimes.

Most important here is to strengthen the state-run regularity authorities to oversee and promptly address the anomalies. Needless bureaucratic red tapes, in terms of establishing a business is another challenge. For instance, in Vietnam it takes maximum of 30 days to complete government formalities and documentation procedure of starting a business, in Bangladesh it takes no less than 120 days, and in some cases over 6 months. Removing needless bureaucratic red tapes, simplifying business set-up process and encouraging entrepreneurs with government intensives are important pre-conditions to foster a business friendly environment. Moreover, I also feel that fixing shorter time-frames for establishing any business is important.

Another point, I want to mention is that our bureaucrats must dutifully shoulder responsibilities instead of transferring or handing them out to other departments or ministries.

I expect the Interim Government to create a business and investment friendly environment based on regular joint consultations and dialogues for a win-win scenario.

However, Bangladesh Bank's governor has assured that situation would improve in the next six months, I am also optimistic.

DO: How can our business community, directly or indirectly assist the Interim Government, in terms of offering expertise in crisis management?
Mostafa Kamal: It is important to include all stake holders of a particular industry prior policy formulation. Industry experts can offer valuable insights and solutions to bureaucrats. However, it is up to the government to enthusiastically approach to the business community, only then the business community would come forward responding to the government's call. Currently, the government is exclusively focused to regularise and ensure smooth supply of essential items, I feel they have to go beyond and explore other avenues and untapped sectors together with the business community.