A decade ago, I made an effort to export recycled jute sacks to Australia and the United States. The process of obtaining a jute export license was complex, involving gathering numerous documents from various offices, navigating through multiple stages, and obtaining approvals from several officials. The cumbersome nature of the procedure led me to abandon the project. Upon recent review of the licensing requirements, it was evident that little had changed, except for the partial digitalization of the same intricate procedures.
A similar scenario unfolded with an Australian entrepreneur who intended to establish an export-focused opal jewelry factory in Bangladesh. Despite leasing premises and installing machinery, he decided to withdraw from the investment due to complications in the company registration and licensing process. Subsequently, the entrepreneur established a successful opal jewelry factory in the Philippines, now exporting millions of dollars’ worth of products globally.
These instances are not isolated incidents but rather unfortunate examples of how convoluted administrative processes can deter entrepreneurship, repel investments, and hinder Bangladesh’s potential for employment creation, exports, and economic advancement.
Bangladesh ranks approximately 168th out of 190 economies in the World Bank’s Ease of Doing Business index. Initiating or expanding a business often entails multiple approvals, frequent office visits, and substantial paperwork, resulting in a slow and costly process. This leads to increased business expenses, diminished foreign direct investment (FDI), and heightened corruption risks due to unnecessary delays and discretionary approvals. To address these challenges, Bangladesh requires three interlinked reforms: Business Process Redesign (BPR), thorough digitalization, and the establishment of a genuine One-Stop Service (OSS).
**Pillar one: Business Process Redesign (BPR)**
Merely digitalizing a flawed system is insufficient. Transitioning existing bureaucratic processes online without assessing their necessity can perpetuate inefficiencies. It is essential to evaluate each process comprehensively, considering if it serves a legitimate public interest, if information or approvals are redundant, and if required documents offer essential unique information not available elsewhere. Procedures and documentation failing these criteria should be streamlined, combined, or simplified.
Regulation should be risk-oriented, with low-risk businesses receiving simplified or automated approvals, while high-risk activities undergo rigorous scrutiny. New regulations should undergo a Regulatory Impact Assessment (RIA) to ensure that their benefits outweigh compliance costs. Task ownership should be clear, with decentralized authority to expedite decision-making. Documentation should be minimal and information should be sourced from trusted government databases to avoid redundancy. Processes should have defined processing times to ensure timely service delivery.
**Pillar two: Comprehensive Digitalization**
Digitalization plays a crucial role in enhancing business operations and reducing corruption. A comprehensive digital system should cover the entire process, from application to approval, integrating government databases for secure information exchange. Rule-based decision-making should automate routine approvals, reserving human intervention for complex cases. Digital signatures, electronic certificates, and secure payment channels should replace traditional methods, promoting transparency and reducing corruption risks.
**Pillar three: A genuine One-Stop Service**
A genuine One-Stop Service aims to streamline business services through a unified portal, facilitating coordinated responses. Applicants should submit information once, with the system routing applications to relevant agencies for parallel processing and delivering decisions within set timelines. This model, exemplified by Estonia’s X-Road infrastructure and Singapore’s GoBusiness platform, leverages digital identity systems to streamline processes and reduce redundancies.
Implementing these reforms—process redesign, digitalization, and a genuine one-stop service—requires sustained political commitment. With existing digital infrastructure and experience in online services, Bangladesh can gradually adopt these changes, starting with high-impact areas. Failure to act may lead to lost investments, diminished job opportunities, and perpetuation of corruption.
*Saifur Rahman is a senior IT specialist at the Australian Public Service.*
