Unpredictable Regulatory Practices
The current regulatory environment in Bangladesh discourages the entry of innovative businesses.Entrepreneurs face a myriad of regulatory barriers including an absence of laws and regulations that clarify the rules of the game for new activities (r...
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| Language: | English |
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/491021537444359455/Bangladesh-Policy-Notes-Unpredictable-Regulatory-Practices http://hdl.handle.net/10986/30553 |
| Summary: | The current regulatory environment in
Bangladesh discourages the entry of innovative
businesses.Entrepreneurs face a myriad of regulatory
barriers including an absence of laws and regulations that
clarify the rules of the game for new activities (regulatory
gaps), and conflicting definitions and interpretations
(regulatory ambiguity).Typically, rules and regulations are
announced without prior notice, consultation or impact
assessment. As a result, they do not benefit from the
practical knowledge that businesses have. Even welldesigned
rules and regulations cause problems if announced suddenly
and with immediate effect.There are inconsistencies and gaps
in rules and regulations.Government agencies often impose
their own rules and procedures without considering possible
conflicts with rules and procedures imposed by other
government agencies.Businesses find it difficult to find
information on existing rules and regulations.Regulatory
officials use undue discretion in dealing with
businesses.Many regulatory areas lack an effective grievance
redressal system.Insecure property rights also
dis-incentivize businesses from making
investments.Regulatory unpredictability hampers business
entry and day to day business operations; however, the
degree depends on the size of the business. |
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