Dhaka: The British government has released guidelines titled ‘Overseas Business Risk Bangladesh’ identifying some problems in terms of operating business in Bangladesh.

It highlighted political and economic, human rights, bribery and corruption, terrorism threat, protective security advice, intellectual property, organised crime, information on key security and political risks which UK businesses may face when operating in Bangladesh.

It says political and economic, democratic institutions, including Parliament and local government, are ‘weak’ in Bangladesh.

The guidelines mentioned that the opportunity for a renewed focus on democratic processes presented by the City Corporation elections in Dhaka and Chittagong in April 2015 was lost after the BNP withdrew partway through, citing widespread irregularities.

Despite political turmoil in the first three months of 2015 that led to major losses for the business community, economic growth remains strong, it said.

Human Rights

Bangladesh has ratified the core international human rights agreements, including the International Covenant on Civil and Political Rights (ICCPR), the International Covenant on Economic, Social, and Cultural Rights (ICESCR), and the Convention on the Rights of the Child (CRC), but implementation and enforcement under domestic law can be weak.

Access to justice in Bangladesh can be difficult. Implementation and enforcement of laws can be weak, and the court system faces a significant backlog, it claimed.

There are regular allegations of abuse, including extra-judicial killings, physical mistreatment and corruption, against members of the law enforcement agencies, the report mentioned.

Good Business

Implementing the UN Guiding Principles on Business and Human Rights makes clear the government’s commitment to protect human rights and sets out the clear expectations for UK companies in this area.

Bribery and Corruption

Bribery and corruption are entrenched in Bangladesh and, despite the best efforts of the media, civil society and the donor community, pervades many aspects of daily life. Corruption is often cited as a barrier to the effective development of the private sector and poses business risks that require pro-active management in the form of regular due diligence exercises and up-to-date risk strategies, according to the guidelines.

‘Procurement practices often lack transparency and are usually coupled with a significant bureaucratic burden. These risks require careful management.’

Politicians, bureaucrats and law enforcement officials often wield significant discretionary power and notable abuses have been brought to light, the document reads.

Terrorism Threat

There is a residual threat from terrorism in Bangladesh, although there have been no significant terrorist attacks since 2005. A number of small and fragmented terrorist groups continue to have a footprint within the country, with both a domestic and international focus.

Since 2005, the Bangladeshi government has tackled the terrorist threat with considerable effectiveness, arresting a large number of key individuals. However, allegations of human rights abuses by elements of Bangladesh’s security forces remain a serious concern, according to the guidelines.

About protective security, it advised that Bangladesh is a cash society although the use of credit and debit cards to pay for goods and services is increasing with the main hotels and restaurants accepting most international credit cards. The cloning of credit cards is not as prevalent as in other markets within the region.

Bangladesh and its burgeoning capital Dhaka are safer than many countries and large cities in the developing world.