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types of business environment

types of the business environment

2.1 Geography
Bangladesh is a country in South Asia Pacific.
Bangladesh covers an area of approximately 147,570 square kilometers. It is
bordered by India on all sides except for a small border with Burma
(Myanmar) to the far southeast and by the Bay of Bengal to the south. Saint
Martin’s Island in the Bay of Bengal is a part of the territory of Bangladesh.
2.2 Population
Bangladesh is the Eighth most populous country out of 221 countries and is
among the most densely populated nations in the world. Bangladesh has a
current population of approximately 160.22 million and by end of 2020 it’s
expected to reach 167.50 million.
2.3 Language
The official mother tongue and most widely used language in Bangladesh is
Bengali or Bangla, an Indo- Aryan language of Sanskrit origin with its own
script. Bangladesh is the only country in whole over the world who fought
and has been martyred for their mother tongue. In 1999, United Nation
Educational, Scientific and Cultural Organization (UNESCO) declared
Bangla as an international language and announced 21st February as
International Language Day.
English is used as second language among the middle and upper classes and
in higher education. Since a President Order in 1987, Bengali is used for all
official correspondence except those sent to foreign recipients.
2.4 Political system
Bangladesh is a moderate, democratic and homogeneous country.
It is a constitutional republic with a multi-party parliamentary democracy.
Elections are held on the basis of universal suffrage. The president is the head
of state elected by the members of the parliament for a five-year term.
Executive power is exercised by the cabinet headed by the prime minister, who
is the leader of the house in the parliament. The president appoints the prime
minister and, on his/her recommendation, other ministers. He/she also appoints
members of the judiciary.

2.5 Industrial Policy – Key Features
The government has initiated various policy initiatives to promote socio-
economic development in Bangladesh. Key aims of the country’s industrial
policy are cited below:
• Swelling the production base of the economy by accelerating the level of
industrial investment
• Promoting the private sector for growth of industrial production and
investment
• Focusing the role of the government as the facilitator in creating an
enabling environment for swelling private investment
• To permit public undertakings only in those industrial activities where
public sector involvement is essential to facilitate the growth of the
private sector and / or where there are overriding social concerns to be
accommodated
• To attract foreign direct investment in both export and domestic market-
oriented industries to make up for deficient domestic investment
resources, and to acquire evolving technology and gain access to export
markets
• Ensuring rapid growth of industrial employment by encouraging
investment in labor- intensive manufacturing industries including
investment in efficient small and cottage industries
• Generating female employment in higher-skill categories through special
emphasis on skill development
• Raising industrial productivity and to move progressively to higher value-
added products through the upgrading of skills and technology
• Enhancing operational efficiency in all remaining public manufacturing
enterprises through appropriate management restructuring and pursuit of
market-oriented policies
• Encouraging the competitive strength of import-substituting industries for
catering to a growing domestic market
• To ensure a process of industrialization which is environmentally sound
and consistent with the resource endowment of the economy
• To encourage balanced industrial development throughout the country by
introducing suitable measures and incentives
• To coordinate with trade and fiscal policies
• To develop homespun technology and to swell production based on
domestic raw materials and also rehabilitate deserving sick industries.

2.6 The Economy:
Bangladesh's economy has seen vast improvements in the years following
independence in 1971.
Agriculture is one of the main sectors in the country's economy and
production has been increasing. The government has also made efforts to
create an 'investor-friendly' environment so as to attract foreign trade.
From 2000 RMG is the one of the most important sectors of the country and
From 2006 ITC is another important business sector of the country.
Sadly, natural disasters have had a negative impact on Bangladesh's economy.
Despite this, the country is showing greater self-reliance as foreign aid has
declined.

2.7 What Is Fueling Bangladesh's Economy?
The garment industry is massive and one of the most impressive in the world.
This industry has created extensive numbers of jobs for the population and
particularly for women. Large numbers of garments and knitwear are exported
to the United States and Europe and Middle East.
Bangladesh is also the world's third biggest rice producer. Much of the
country's agricultural land is set aside for the cultivation of rice, as well as jute
and some wheat. This agricultural economy is, however, very dependent on
the monsoonal cycle where the country experiences cyclic flooding and
drought. Other exports include leather, ceramics, pharmaceuticals and shrimp.
Bangladesh has received over USD 50 (approx.) billion in foreign aid since
1971. Unfortunately, poverty is still a huge problem in the country and social
services are sadly lacking.
Encouraging foreign investment in Bangladesh has had significant success
–particularly in power generation, gas production, pharmaceutical, textile and
cellular telephony sectors.
More foreign investment still needs for us if the country's economy is to see
even greater improvements. With increased foreign investment and efforts to
reduce poverty.
The highlights of Bangladesh’s economy are as follows:
 A steady average annual GDP growth of 7.3% over the last decade
 Inflation has been kept in single-digit figures

 Key exports include the following major items:
− Raw jute, jute goods
− Tea
− Leather
− Frozen food/fish
− Handicrafts
− Readymade garments
− Chemicals
− Information Communication & technology
− Medicines
− Ceramic
 Exports have gradually shifted from traditional goods to more value-added
items
 Emphasis has been placed on manufacturing and the IT sector
 Bangladesh is in the process of transition from a predominantly agrarian
economy to an industrial and service economy. The private sector is playing
an increasingly active role in the economic life of the country, while the
public sector concentrates more on the physical and social infrastructure.
2.8 International Time
The international time of Bangladesh is Greenwich Mean Time +6.
2.9 Currency
The currency of Bangladesh is the taka, which is referred to by the acronym BDT
2.10 Actions to be taken
Elimination of the digital divide between rural and urban areas and between
Bangladesh and other nations is essential in order to be at par with middle-
income nations. A peaceful political environment is essential for intellectual,
social, cultural and economic development. Time and time again, the nation's
dream for Vision 2021 and Digital Bangladesh has been shattered by the
turbulent political situation. The country dearly needs a tranquil political
environment for the development of all sectors, including ICT, and for the
realization of Vision 2021 “Digital Bangladesh”.
2.11 The Legal Structure
In Bangladesh laws are loosely based on English common law, but family
laws such as marriage and inheritance are based on religious scripts, and
therefore differ between religious communities. Since 1971 Bangladesh's
legal system has been updated in areas of company, banking, bankruptcy and
Money Loan Court laws.
The Supreme Court of Bangladesh comprises the Appellate Division and the

High Court Division. It is the apex Court of the country and other Courts and
Tribunals are subordinate to it. There are a wide variety of subordinate courts
and tribunals. The civil courts are created under the Civil Courts Act of 1887.
The Act provides for five tiers of civil courts in a district, which bottom-up
are (i) Court of Assistant Judge, (ii) Court of Senior Assistant Judge, (iii)
Court of Joint District Judge, (iv) Court of Additional District Judge and (v)
Court of District Judge. The Code of Criminal Procedure, 1898 provides for
different Criminal Courts: (i) Courts of Sessions (ii) Courts of Metropolitan
Sessions (iii) Special courts/tribunals (Criminal) (iv) Courts of Metropolitan
Magistrate and (v) Courts of Magistrate.
Company matters in Bangladesh are dealt by the Company Bench of the High
Court Division.
2.12 Governing Commercial/Business Laws
 The Companies Act 1994
 The Partnership Act, 1932
 The Societies Registration Act 1860
 The Trade Organization Ordinance, 1961
 The Contract Act, 1872
 The Sale of Goods Act, 1930
 The Bank Companies Act, 1991
 The Bankruptcy Act, 1997
 The Islamic Development Bank Act, 1975
 The Money Loan Courts Act, 2003
 The Financial Institutions Act, 1993
 The Negotiable Instruments Act, 1881
 The Securities Act, 1920
 The Securities and Exchange Ordinance, 1969
 The Investment Board Act, 1989
 The Foreign Private Investment (Promotion & Protection) Act, 1980
 The Labour Code, 2006
 The Patents and Designs Act, 1911
 Trade Marks Act, 2009
 The Consumer Rights Protection Act, 2009
 The Imports and Exports (Control) Act, 1950
 The Patents and Designs Act, 1911
 Trade Marks Act, 2009
 The Insurance Act, 2010
 The insurance Development & Control Authority Act, 2010
 The Insurance Corporations Act, 1973
 Income Tax Ordinance 1984

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