2.

1: Country/Economy Profiles

Bangladesh
Key indicators, 2010

GDP (PPP) per capita (intl $), 19852010

Population (millions)...............................................164.4
GDP (US$ billions)...................................................104.9
GDP per capita (US$) ................................................638
GDP (PPP) as share (%) of world total..................0.35

Bangladesh

6,000

Developing Asia

5,000
4,000
3,000
2,000
1,000
0

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

Global Competitiveness Index

Rank
(out of 142)

Stage of development

Score
(17)

GCI 20112012 ...................................................... 108......3.7

Factor
driven

Basic requirements (60.0%).............................................112........ 3.8

Institutions...........................................................................112........ 3.3
Infrastructure......................................................................134........ 2.2
Macroeconomic environment ...........................................75........ 4.7
Health and primary education.........................................108........ 5.0

110

Transition
12

GCI 20102011 (out of 139)................................................107........ 3.6

GCI 20092010 (out of 133)................................................106........ 3.6

Transition
23

Efficiency
driven

Innovation
driven

Institutions
7

Innovation

Business
sophistication

Efficiency enhancers (35.0%)............................................99........ 3.7

Higher education and training.........................................126........ 2.8
Goods market efficiency.....................................................81........ 4.1
Labor market efficiency....................................................100........ 4.0
Financial market development ..........................................67........ 4.1
Technological readiness...................................................122........ 2.8
Market size ...........................................................................49........ 4.3

Infrastructure

Macroeconomic
environment

4
3
2

Market size

Health and
primary
education

Higher education
and training

Technological
readiness

Innovation and sophistication factors (5.0%) ..............113........ 3.0

Business sophistication .....................................................98........ 3.5
Innovation............................................................................124........ 2.6

Financial market
development

Goods market
efficiency
Labor market efficiency

Bangladesh

Factor-driven economies

The most problematic factors for doing business

Inadequate supply of infrastructure.................................21.8
Corruption..............................................................................18.5
Inefficient government bureaucracy................................17.3
Policy instability .....................................................................6.7
Access to financing...............................................................6.3
Inadequately educated workforce .....................................6.2
Inflation....................................................................................5.1
Foreign currency regulations ..............................................4.4
Tax regulations .......................................................................3.9
Crime and theft.......................................................................2.7
Tax rates ..................................................................................2.2
Government instability/coups..............................................1.8
Poor work ethic in national labor force.............................1.7
Restrictive labor regulations................................................0.9
Poor public health..................................................................0.3
0

10
15
Percent of responses

20

25

Note: From a list of 15 factors, respondents were asked to select the five most problematic for doing business in their country and to rank them between
1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings.

The Global Competitiveness Report 2011-2012 2011 World Economic Forum

30

The Global Competitiveness Index in detail

INDICATOR

VALUE RANK/142

INDICATOR

1st pillar: Institutions

VALUE RANK/142

6th pillar: Goods market efficiency

1.01
1.02
1.03
1.04
1.05
1.06
1.07
1.08
1.09
1.10
1.11
1.12
1.13
1.14
1.15
1.16
1.17
1.18
1.19
1.20
1.21

Property rights....................................................... 3.7 ............99

Intellectual property protection ............................. 2.4 .......... 129
Diversion of public funds ...................................... 2.6 ...........111
Public trust of politicians ....................................... 2.0 .......... 118
Irregular payments and bribes .............................. 2.5 .......... 138
Judicial independence........................................... 3.2 ............90
Favoritism in decisions of government officials .... 2.2 .......... 128
Wastefulness of government spending ................ 3.3 ............62
Burden of government regulation ......................... 3.0 ............89
Efficiency of legal framework in settling disputes 3.1 .......... 100
Efficiency of legal framework in challenging regs. 3.3 ............81
Transparency of government policymaking........... 3.9 ............97
Business costs of terrorism .................................. 5.2 ............96
Business costs of crime and violence .................. 4.2 ............99
Organized crime .................................................... 4.7 ............95
Reliability of police services.................................. 3.1 .......... 120
Ethical behavior of firms ....................................... 3.2 .......... 119
Strength of auditing and reporting standards ....... 3.8 .......... 122
Efficacy of corporate boards ................................. 4.1 .......... 114
Protection of minority shareholders interests...... 3.5 .......... 121
Strength of investor protection, 010 (best)* ....... 6.7 ............20

2.01
2.02
2.03
2.04
2.05
2.06
2.07
2.08
2.09

Quality of overall infrastructure ............................. 2.8 .......... 129

Quality of roads..................................................... 2.9 ...........111
Quality of railroad infrastructure............................ 2.5 ............73
Quality of port infrastructure................................. 3.4 .......... 113
Quality of air transport infrastructure .................... 3.5 ...........117
Available airline seat kms/week, millions* ........ 202.4 ............61
Quality of electricity supply....................................1.6 .......... 135
Fixed telephone lines/100 pop.* ........................... 0.6 .......... 135
Mobile telephone subscriptions/100 pop.* ......... 46.2 .......... 127

3.01
3.02
3.03
3.04
3.05
3.06

Government budget balance, % GDP*................ -3.7 ............72

Gross national savings, % GDP* ........................ 26.7 ............33
Inflation, annual % change*.................................. 8.2 .......... 120
Interest rate spread, %* ....................................... 5.9 ............ 76
General government debt, % GDP* ................... 35.2 ............51
Country credit rating, 0100 (best)* ....................31.8 .......... 105

4.01
4.02
4.03
4.04
4.05
4.06
4.07
4.08
4.09
4.10

Business impact of malaria ................................... 5.3 ............94

Malaria cases/100,000 pop.* ......................... 1,906.9 .......... 113
Business impact of tuberculosis ........................... 5.0 ............83
Tuberculosis incidence/100,000 pop.* .............. 225.0 .......... 114
Business impact of HIV/AIDS ............................... 5.5 ............55
HIV prevalence, % adult pop.* ...........................<0.1 ..............1
Infant mortality, deaths/1,000 live births*............41.2 .......... 109
Life expectancy, years*....................................... 66.6 .......... 108
Quality of primary education................................. 2.8 .......... 119
Primary education enrollment, net %* ............... 86.3 .......... 113

5.01
5.02
5.03
5.04
5.05
5.06
5.07
5.08

Secondary education enrollment, gross %*....... 42.3 .......... 119

Tertiary education enrollment, gross %* ...............7.9 .......... 116
Quality of the educational system ........................ 3.4 ............85
Quality of math and science education ................ 3.3 .......... 106
Quality of management schools ........................... 3.9 ............90
Internet access in schools..................................... 2.5 .......... 128
Availability of research and training services ........ 2.7 .......... 133
Extent of staff training .......................................... 3.3 .......... 121

2nd pillar: Infrastructure

3rd pillar: Macroeconomic environment

4th pillar: Health and primary education

5th pillar: Higher education and training

6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08
6.09
6.10
6.11
6.12
6.13
6.14
6.15
6.16

Intensity of local competition................................ 4.5 ............92

Extent of market dominance................................. 3.3 .......... 102
Effectiveness of anti-monopoly policy................... 3.5 .......... 105
Extent and effect of taxation................................. 3.7 ............47
Total tax rate, % profits*..................................... 35.0 ............53
No. procedures to start a business*........................ 7 ............65
No. days to start a business* ................................ 19 ............ 74
Agricultural policy costs ........................................ 4.7 ............13
Prevalence of trade barriers .................................. 4.2 ............93
Trade tariffs, % duty*.......................................... 13.1 .......... 127
Prevalence of foreign ownership........................... 4.0 .......... 115
Business impact of rules on FDI........................... 5.2 ............25
Burden of customs procedures ............................ 3.4 ...........117
Imports as a percentage of GDP* ...................... 30.2 .......... 112
Degree of customer orientation............................ 4.5 ............77
Buyer sophistication.............................................. 3.1 ............94

7.01
7.02
7.03
7.04
7.05
7.06
7.07
7.08
7.09

Cooperation in labor-employer relations................ 4.0 ............97

Flexibility of wage determination .......................... 5.2 ............66
Rigidity of employment index, 0100 (worst)* ... 28.0 ............75
Hiring and firing practices ..................................... 4.7 ............20
Redundancy costs, weeks of salary* .................. 104 .......... 130
Pay and productivity .............................................. 3.6 ............95
Reliance on professional management ................. 3.8 ............96
Brain drain ............................................................. 2.9 .......... 101
Women in labor force, ratio to men*.................. 0.73 ............88

8.01
8.02
8.03
8.04
8.05
8.06
8.07
8.08

Availability of financial services............................. 4.1 ............92

Affordability of financial services .......................... 4.0 ............84
Financing through local equity market .................. 4.5 ............22
Ease of access to loans ........................................ 2.6 ............80
Venture capital availability ..................................... 2.3 ............94
Soundness of banks.............................................. 5.0 ............85
Regulation of securities exchanges....................... 3.7 .......... 100
Legal rights index, 010 (best)* .............................7.0 ............39

9.01
9.02
9.03
9.04
9.05
9.06

Availability of latest technologies .......................... 4.6 ............95

Firm-level technology absorption .......................... 4.4 ............95
FDI and technology transfer.................................. 4.1 .......... 101
Internet users/100 pop.*....................................... 3.7 .......... 130
Broadband Internet subscriptions/100 pop.* ........ 0.0 .......... 127
Internet bandwidth, kb/s/capita*........................... 0.1 .......... 118

2.1: Country/Economy Profiles

Bangladesh

7th pillar: Labor market efficiency

8th pillar: Financial market development

9th pillar: Technological readiness

10th pillar: Market size

10.01 Domestic market size index, 17 (best)*.............. 4.3 ............41
10.02 Foreign market size index, 17 (best)* ................. 4.5 ............63

11th pillar: Business sophistication

11.01
11.02
11.03
11.04
11.05
11.06
11.07
11.08
11.09

Local supplier quantity .......................................... 4.6 ............81

Local supplier quality............................................. 4.4 ............ 76
State of cluster development................................ 3.9 ............45
Nature of competitive advantage .......................... 2.3 .......... 139
Value chain breadth ............................................... 3.4 ............80
Control of international distribution....................... 3.6 .......... 106
Production process sophistication ........................ 2.9 .......... 115
Extent of marketing............................................... 3.4 .......... 112
Willingness to delegate authority ......................... 2.9 .......... 126

12.01
12.02
12.03
12.04
12.05
12.06
12.07

Capacity for innovation.......................................... 2.4 .......... 121

Quality of scientific research institutions .............. 2.7 .......... 115
Company spending on R&D.................................. 2.4 .......... 128
University-industry collaboration in R&D............... 2.6 .......... 127
Govt procurement of advanced tech products..... 3.0 ...........117
Availability of scientists and engineers ................. 3.9 ............78
Utility patents granted/million pop.* ..................... 0.0 ............90

12th pillar: Innovation

Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section How to
Read the Country/Economy Profiles on page 89.

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