Regulatory predictability is the key to reducing the cost of doing business and spurring domestic and foreign investments in the country, experts have said at a programme.
The government should identify areas of redundancy, conflict, jurisdictional overlap and regulatory gaps in all existing laws, acts and rules and prepare a time-bound action plan to address them, they observed.
However, the authorities concerned should consult with other stakeholders, especially the private sector, before bringing any change to the existing regulations and policies, they suggested.
They were speaking at a policy dialogue on 'Regulatory Predictability & Private Sector Development' organised by the Business Initiative Leading Development (BUILD) at a city hotel on Thursday evening.
The dialogue mainly discussed the regulatory unpredictability hampering economic diversification, productivity improvement, technological development and achieving of Sustainable Development Goals (SDGs).
Principal Secretary to Prime Minister's Office (PMO) Md. Nojibur Rahman addressed the programme as the chief guest.
IFC country manager for Bangladesh, Bhutan and Nepal Wendy Werner delivered the opening speech with BUILD chairman Md. Mahbubul Alam in the chair.
Findings of a survey conducted by the BUILD with support from the World Bank Group (WBG) and the International Finance Corporation (IFC) in September, 2017 were unveiled at the programme.
The survey identified different sources of regulatory unpredictability.
Delivering his speech, Mr Rahman said regulatory unpredictability was one of the major concerns for the private sector as it could make business costly and investment uncertain.
Referring to better partnership build-up between the public and private sectors, he said regular dialogue among the stakeholders could help address the regulatory issues.
However, he said there were people both in the government and in the private sector who could try to secure personal interests by bringing changes to the policies and regulations.
Terming the country's business community very intelligent and smart, he said, "The business leaders have to be very watchful so that those public and private elements can't form unholy alliance that makes good things worse."
Welcoming the survey by the BUILD, the Principal Secretary said the possibility of setting up a Regulatory Impact Analysis (RIA) unit at a central ministry to help in the law-making process of the country should be examined.
Addressing the programme as a resource person, Policy Research Institute of Bangladesh (PRI) executive director Dr. Ahsan H. Mansur said, "Prior consultation regarding any policy changes should be an imperative on the part of a government department or ministry which is undertaking the initiative."
He said many of the good policy initiatives could not sustain because there was no prior consultation before making it effective.
There are many inconsistencies and loopholes in the laws and services which are not very difficult to sort out, as it can be done by subcommittees and small working groups of the government, he observed.
He suggested establishment of a formal feedback group serving the government and businesses and coordinating the two parties in finding out the loopholes in the policies.
Presenting the keynote paper, BUILD CEO Ferduas Ara Begum said policy consistency must be maintained for at least five years with regular review of rules and regulations to make them updated as required by new types of businesses.
Coordination among the concerned ministries for supporting sectoral issues followed by inclusive and continuous dialogue with the private sector is a must, she pointed out.
She said the private sector would need to take some responsibilities and put forward their opinions in time.
Backing the BUILD recommendations for ensuring regulatory predictability, she said the government needs to identify areas of redundancy, conflict, jurisdictional overlap and regulatory gaps in all existing laws, acts, and rules and prepare a time-bound action plan to address them.
Regulators should make it mandatory to use the existing e-platform (ministry websites) for soliciting feedback from stakeholders on regulatory issues, she said.
She called for an automated system to publish all the new laws, regulatory amendments and statutory regulatory orders (SROs) on a dedicated website within a week of their enforcement.
The BUILD CEO suggested a systemic online mechanism to address grievances over all government-to-government, business and citizen services.
In the opening remarks, BUILD chairman Mahbubul Alam said one of the major reasons for the slow pace of growth in private investment is the existing regulatory unpredictability, having impact on the cost of business.
The adoption of rules and regulations by the government without prior consultation with stakeholders and discretionary behaviour of the regulatory body mainly create regulatory unpredictability, he said.
The survey found six types of regulatory unpredictability - framing rules and regulations without prior notice, consultation or impact assessment; conflicting rules and regulations; difficulties with finding information on existing policies; discretionary enforcement by the government officials; lack of effective grievance mechanism; and insecure property rights.
Finance Division secretary Mohammad Muslim Chowdhury, FBCCI president Md. Shafiul Islam and WBG Investment Climate Advisory Services practice manager Dahlia Khalifa attended the programme as special guests.
Bangladesh Bank deputy governor Abu Hena Md. Razee Hassan, WBG senior economist Dr. M. Masrur Reaz, former BUILD chairman Asif Ibrahim and Commerce Ministry secretary Sharifa Khan also spoke at the programme as resource persons.
