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Infrastructure
- The Way To
Bangladesh
's Heart
Bangladesh
's
infrastructure industry is
one of the most
underdeveloped in the world,
a factor which has impeded
economic growth in the
country. However, growing
bilateral ties between
neighboring
China
and
India
has brought with it
investments into the
country's infrastructure
industry.
In
the World Economic Forum's
Global Competitiveness
Report 2009-10, the
country's infrastructure
competitiveness was ranked
126th out of 133 countries,
the lowest ranking among its
South Asian neighbors, India
(49th), Sri Lanka (79th) and
Pakistan (101st). Transport
facilities are severely
lacking in
Bangladesh
, causing traffic
bottlenecks that drive up
the cost of business and
goods. The country's
capital,
Dhaka
, is notoriously crowded and
port congestion is a major
problem.
Power
shortages are also a major
drawback, illustrated by a
128th placed ranking for
competitiveness of
electricity supply in the
Global Competitiveness
Report the country's power
stations are unable to meet
the rising demand for
electricity from increasing
industrialisation, and its
natural gas reserves are
expected to dwindle over the
next decade. Power
brown-outs and black-outs
are frequent problems for
many industries and have led
to economic disruption and
public protests. This poor
level of infrastructure is
one of the contributing
factors for
Bangladesh
's low score in BMI 's
overall business environment
ratings, achieving only 30.9
out of 100.
Bangladesh
's
need for infrastructure has
not gone unnoticed by its
two largest neighbours,
India
and
China
.
Bangladesh
serves as a buffer state
between them, and both
countries have tried to
strengthen their bilateral
ties with it through
infrastructure investments.
In 2009,
China
was
Bangladesh
's biggest source of imports
at 17%, while 14% came from
India
.
China
has also used its massive
currency reserves to meet
many of
Bangladesh
's infrastructure needs. In
addition to a road link
between
Chittagong
and
Kunming
in the southern Chinese
province
of
Yunnan
,
China
has provided financing for
seven bridges in
Bangladesh
. The country has also
financed the construction of
two new terminals at the
port
of
Chittagong
.
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