Bangladesh Country Profile

Snapshot of the Bangladesh Country Profile


Bangladesh is one of the poorest countries in the world and has struggled to attract foreign investment in a business environment marked by pervasive corruption, cumbersome regulations and an inconsistent and politicised approach to the rule of law. The country has been at or near the bottom of numerous accountability, transparency and corruption indices for several years. Encouragingly, Bangladesh's 2007-2008 military-backed government implemented a programme of widespread institutional reform and, in an unprecedented move, set out to aggressively tackle the country's high levels of corruption, resulting in the conviction of corrupt businesspeople, politicians and high-ranking officials. Nevertheless, corruption continues to be widespread at all administrative levels. Companies report inadequate supply of infrastructure as the biggest constraint to investment in Bangladesh, followed by corruption and an inefficient government bureaucracy. The vast majority of companies expect to pay bribes to public officials in order to do business, while just one in four companies perceive the judiciary to be fair, impartial and uncorrupted.

Positive developments in relation to corruption and investment:

  • The latest amendment of the Criminal Procedure Code Ordinance in February 2007 separated the judiciary from the executive branch of the government, securing the legal framework for an independent judiciary.
  • Since 2007, the Anti-Corruption Commission (ACC) has had a remarkably good record of investigations leading to trials and convictions. The ACC also ran a year-long awareness campaign against corruption together with Transparency Bangladesh.

Risks of corruption:

  • Foreign companies report that they are at times subjected to costly and unnecessary licence and permit requirements, while e-governance is not yet developed in Bangladesh. Face-to-face encounters with public officials are therefore inevitable and facilitate the solicitation of bribes.
  • Encounters with police forces are frequently marked by corruption.
  • There is no legal mechanism to deal with business-to-business corruption.
  • Reports of corruption in the awarding of public and private tenders are frequent. Collusion between political leaders and bureaucrats in public contracting occurs in order to favour particular bidders.
  • Lawsuits and commercial disputes are often delayed and the parties are subsequently encouraged to pay 'speed money' in order to obtain a ruling.