Remasrks

Remarks by Chargé d’Affaires, a.i. Judith A. Chammas at U.S. Trade Show Welcome Dinner

Dhaka Sheraton Ballroom

February 7, 2006

I am very delighted to see you all here this evening.  Ladies and Gentlemen - Asalamu Alaikum, Namaskar and Good Evening.  This is my first U.S. Trade Show dinner, and I am honored to have the opportunity to speak to the business community in this forum tonight. 

Thank you, Andrew, for your kind introduction.  And thank you, Tarique Haque, for your remarks and for your generosity in sponsoring tonight’s dinner.  We have a very active American business community here and they always take the opportunity to support and promote Bangladeshi progress.  I am delighted to be able to share in this occasion and see the business community here.  Representatives of the American business community and other friends, welcome to the fifteenth annual U.S. Trade Show.  

In my time here in Bangladesh, the Trade Show has grown bigger and better each year, and the Embassy’s relationship with the AMCHAM even closer. 

I have now been in Bangladesh for more than two and a half years.  I have had the opportunity to learn a lot about the economic and business environment in Bangladesh.  What continues to strike me the most about this country is the exuberance for life that Bangladeshis exhibit.  I am also struck by the multinational business community that has struggled against immense odds to establish business enterprises in Bangladesh and succeeded in maintaining prosperous businesses.  I am also encouraged by the tremendous role that American businesses have played in supporting and developing Bangladesh and helping Bangladeshis realize their potential. 

Since independence in 1971, Bangladesh has made tremendous strides towards a vibrant democracy and an active market-based economy. Nonetheless, much work remains to be done to reinforce this trend and to prepare Bangladesh for the political and economic realities of the twenty-first century, including globalization.

Contemporary history has shown that countries with democratic, market-based systems are best equipped to respond to the challenges of globalization. Specifically, there are three essential aspects of democracy that have proved to be crucial to long-term economic and social development.  First, a stable democratic system is the best guarantor of political stability, which is essential for long-term economic growth.  Secondly, democratic practices such as transparency and accountability are essential for effective and responsive government and for efficient and prosperous economic activity.  The financial crises Asia and Russia experienced in the late 1990s are examples of what happens in the absence of such democratic practices.  Thirdly, sound legal and regulatory codes backed by the rule of law must exist if business is to thrive in a market economy.
As advocates for the private sector, business associations play a vital role in encouraging good governance and sound policymaking in industrialized nations.  In most emerging market economies like Bangladesh business associations like you are beginning to realize the importance of strength in numbers, and why it is in your interest to promote the democratic process.  Mobilizing small- and medium-size enterprises is especially important to create the critical mass that drives reform.  Associations are one of the most effective groups to carry out this effort.

Unless the business community participates in building reforms—-reforms that address the essential issues and deliver new jobs, economic growth, and widespread benefits for the people—-reforms implemented by the government would not lead to the desired results.
One of the key areas that business associations like you can address is ways to include the informal economy in this country in the formal economic structure.  Members of the informal sector are entrepreneurs who produce legitimate products without proper permits or legal status because they lack the resources to comply with burdensome, excessive, rules and regulations that are required for participation to participate in the formal economy.  According to some estimates, the informal economy in Bangladesh, according to some estimates, accounts for more than 30 billion dollars, an astounding 50% of the annual GDP.  These entrepreneurs are locked out of the formal economy and the political process as they work in low-income, low-growth business activities.  In order to ensure that such businesses get the opportunity to participate in the formal economy, government needs to eliminate the burdensome barriers that are often excessive and are breeding grounds for bureaucratic inefficiency and rampant corruption.  

Business communities, like you, realize that corruption in Bangladesh is costing you money, and that you must do something to eliminate it. Corruption not only economically hurts the business community and the citizens of Bangladesh, it also has a destabilizing effect on democracy and the general well being of the nation. Combating corruption can serve as a tool for bringing about broader reforms and improving the functioning of governance.
Issues such as combating corruption, fostering corporate governance, strengthening women’s business associations, and reducing barriers to formality can create limitless new opportunities in Bangladesh. Each serves as a starting point to push forward with market reforms and adopt democratic practices. Ensuring that women and entrepreneurs of modest means have access to the business system as participants and leaders helps to guarantee that an open market economy exists for all firms, not just for a favored few.  Associations like the American Chamber have the ability and, more importantly, the responsibility to ensure that your elected officials are working towards this reform agenda.
Gafur tells me that this is the largest U.S. Trade Show we have ever had with more than 80 companies participating with 127 booths.  This strong showing despite the recent events of political violence and terrorism, is indicative of the resilience of the Bangladeshis and of the business community here in Bangladesh.  Overcoming adversity through innovative solutions to tackle everyday problems is the trademark of many of the American companies that are represented here today.  It is refreshing to see that the business community in Bangladesh continues to thrive in adverse and difficult political and economic conditions.

The United States Embassy in Dhaka is working with the Bangladeshi government and with the business community to improve Bangladesh’s competitiveness in a global economy by improving business practices and encouraging legal and regulatory change.  Events like the US Trade Show and America Week help focus attention on the progress being made in Bangladesh, at the same time highlighting the room for improvements.  Our America Week this year will be in Chittagong from March 14^th to the 16^th.  Given Chittagong’s importance as the business center in Bangladesh, America Week will have greater focus on economic and commercial activities.  I hope that many of you will participate in making our America Week successful this year.  You, the participants, are the driving force for change and for helping improve Bangladesh’s business environment and its image internationally.

In closing, I would like to thank the American Chamber, once again for putting this Trade Show together and allowing me to be a part of it.  I am encouraged to see such a strong participation from the business community and I hope to see steady progress in the coming years. 

Thank You.

Note:  A Bangla translation of this article is also available from the American Center.  If you are interested in the translation, please call the American Center Press Section (Tel: 8813440-4, Fax: 9881677; e-mail: DhakaPA@state.gov; Website: dhaka.usembassy.gov