Dhaka, Bangladesh, February 29, 2012
—IFC, a member of the World Bank Group, is helping the Bangladesh government simplify and standardize municipal business regulations of small and medium enterprises to boost trade and investment, create jobs, and contribute to inclusive growth.
Under the initiative, the Ministry of Public Administration and Bangladesh Investment Climate Fund, managed by IFC, in partnership with the U.K. Department for International Development and the European Union, will design and implement pilot programs in three municipalities to establish systemic and transparent procedures by which businesses approach the government.
The Ministry of Local Government and Rural Development will work with the municipalities of Cox’s Bazar, Gopalganj, and Habiganj to implement new procedures for selected services. Based on the experience gained in these cities, procedures and regulations will then be streamlined in other municipalities.
“Municipal business regulations that follow international best practice will promote small and medium enterprises at the local level,” said Abdus Sobhan Sikder, Senior Secretary, Ministry of Public Administration. “Cooperation between the Local Government Division and our ministry will open a new opportunity for civil service officers to deliver fast and efficient service.”
According to the joint IFC and World Bank
Doing Business
parameters, Bangladesh ranks 122 out of 183 economies, indicating that it is a comparatively difficult market in which to run a small or medium business. Additionally, regulations and policies in the capital, Dhaka, tend to be more favorable to businesses, while regulations in small towns create distinct impediments to entrepreneurs.
“Supporting business in rural Bangladesh helps foster the country’s growth and development,” said Paramita Dasgupta, who leads IFC South Asia Investment Climate work. “Easing the regulatory burden on small and medium enterprises in small cities is especially important as those businesses provide the majority of formal employment.”
A seminar hosted in Dhaka by IFC and the Ministry of Public Administration offered a chance to discuss issues related to local business regulation and licensing procedures. Participants included senior government officials, mayors from the three pilot municipalities, and representatives from the Mayors Association of Bangladesh and the private sector.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
.
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