Bangladesh

9. Corruption

Corruption remains a serious impediment to investment and economic growth in Bangladesh.  While the government has established legislation to combat bribery, embezzlement, and other forms of corruption, enforcement is inconsistent.  The Anti-Corruption Commission (ACC) is the main institutional anti-corruption watchdog. With amendments to the Money Prevention Act, the ACC is no longer the sole authority to probe money-laundering offenses.  Although it still has primary authority for bribery and corruption, other agencies will now investigate related offenses:

  • Bangladesh Police (Criminal Investigation Department) – Most predicate offenses.
  • NBR – VAT, taxation, and customs offenses.
  • Department of Narcotics Control – Drug related offenses.

The current Awami League-led government has publicly underscored its commitment to anticorruption efforts and reaffirmed the need for a strong ACC, but opposition parties claim that the ACC is used by the government to harass political opponents.  Efforts to ease public procurement rules and a recent constitutional amendment that reduced the independence of the ACC may undermine institutional safeguards against corruption. Bangladesh is a party to the UN Anticorruption Convention, but it has still not joined the OECD Convention on Combating Bribery of Public Officials.

Corruption is common in public procurement, tax and customs collection, and regulatory authorities.  Corruption, including bribery, raises the costs and risks of doing business. By some estimates, off-the-record payments by firms may result in an annual reduction of two to three percent of GDP.  Corruption has a corrosive impact on the broader business climate market and opportunities for U.S. companies in Bangladesh. It also deters investment, stifles economic growth and development, distorts prices, and undermines the rule of law.

Resources to Report Corruption

Mr. Iqbal Mahmood
Chairman
Anti-Corruption Commission, Bangladesh
1, Segun Bagicha, Dhaka 1000
+88-02-8333350
Email: chairman@acc.org.bd

Contact at “watchdog” organization:

Advocate Sultana Kamal
Chairperson
Transparency International Bangladesh (TIB)
MIDAS Centre (Level 4 & 5), House-5, Road-16 (New) 27 (Old), Dhanmondi, Dhaka – 1209
+880 2 912 4788 / 4789 / 4792
Email: 
edtib@ti-bangladesh.org, info@ti-bangladesh.org, advocacy@ti-bangladesh.org

13. Foreign Direct Investment and Foreign Portfolio Investment Statistics

Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy

Economic Data Year Amount Year Amount USG or International Source of Data:
BEA; IMF; Eurostat; UNCTAD, Other
Host Country Gross Domestic Product (GDP) ($M USD) 2017 $249,700 2016 $221,400 https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=BD  
Foreign Direct Investment 2017 $2,200 2016 $2,300 UNCTAD World Investment Report 2018  
U.S. FDI in Partner Country ($M USD, stock positions) 2017 $460 2016 $458 https://www.bea.gov/international/factsheet/factsheet.cfm?Area=631  
Host Country’s FDI in the United States ($M USD, stock positions) 2017 $2 2016 N/A https://www.bea.gov/international/factsheet/factsheet.cfm?Area=631  
Total Inbound Stock of FDI as % host GDP 2017 0.86% 2016 1.05% https://unctad.org/en/pages/PublicationWebflyer.aspx?publicationid=2130  


Table 3: Sources and Destination of FDI

Direct Investment from/in Counterpart Economy Data
From Top Five Sources/To Top Five Destinations (US Dollars, Millions)
Inward Direct Investment Outward Direct Investment
Total Inward $14,091 100% Total Outward $328 100%
United States $3,316 23.5% United Kingdom $84 25.6%
United Kingdom $1,559 11.1% China, P.R.: Hong Kong $76 23.2%
Singapore $934 6.6% Nepal $44 13.4%
Australia $860 6.1% India $42 12.8%
South Korea $811 5.8% United Arab Emirates $31 9.5%
“0” reflects amounts rounded to +/- USD 500,000.


Table 4: Sources of Portfolio Investment

Portfolio Investment Assets (June, 2018)
Top Five Partners (Millions, US Dollars)
Total Equity Securities Total Debt Securities
All Countries $3,584 100% All Countries $10 100% All Countries $3,574 100%
-United States $587 16.4% Pakistan $10 100% United States $587 16.4%
Germany $581 16.2% N/A N/A N/A Germany $581 16.3%
United Kingdom $383 10.7% N/A N/A N/A United Kingdom $383 10.7%
Spain $235 6.6% N/A N/A N/A Spain $235 6.6%
France $201 5.6% N/A N/A N/A France $201 5.6%
Investment Climate Statements
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The Lessons of 1989: Freedom and Our Future