Dhaka: A taskforce of the interim government has put forward a recommendation to encourage foreign direct investment (FDI) in Bangladesh’s health and technical and vocational education sectors. “The recent closure of the Indian medical market has accentuated the urgent need for high-quality healthcare within Bangladesh. To address this demand effectively, liberalising FDI in the tertiary health sector is essential,” says a report from the taskforce.
According to Bangladesh Sangbad Sangstha, Education and Planning Adviser Professor Wahiduddin Mahmud presented the taskforce’s report, titled “Re-strategising the Economy and Mobilising Resources for Equitable and Sustainable Development,” to Chief Adviser Professor Muhammad Yunus on January 30. The report highlights the necessity for the government to revisit the idea of FDI in these sectors, despite past resistance from vested interests.
The report suggests that allowing foreign investments will significantly benefit local communities by providing access to quality medical services domestically, thus reducing the need for expensive medical tourism abroad. Additionally, fostering competition in the healthcare sector is expected to enhance services, facilitate skills transfer among local healthcare providers, and establish vital linkages with international and local health networks. “The time has come for this market to be liberalised,” the taskforce observes.
Regarding attracting FDI in the technical and vocational education sector, the report indicates that the technical skill level of the workforce is a critical constraint to the country’s economic growth. “FDI into technical and vocational education could make a huge difference to the quality of the labour force. Establishing or upgrading polytechnics that can award internationally recognised ‘foreign’ certifications will elevate the perception and quality of technical education,” the report reads.
The taskforce suggests that this approach will address bottlenecks in acquiring essential technical skills, improving employment prospects and increasing wages for graduates. A viable strategy could involve converting existing polytechnics into colleges under the National University framework, allowing them to offer a two-year BA (Tech) degree. Such changes are expected to upgrade the quality of education and equip students with the necessary competencies required in a rapidly evolving job market. “These measures will have a strong, much needed, ‘gentrification effect’ on the skilled-labour market.”
The taskforce has also recommended enhancing the One Stop Service (OSS) system to improve Bangladesh’s investment climate. The OSS, designed to expedite investment proposal approvals, currently involves four different entities, creating bureaucratic delays and complexity for investors. The taskforce proposes consolidating all responsibilities under a single authority, specifically the Bangladesh Investment Development Authority (BIDA), to enhance accountability and provide clear guidance for investors. Additionally, integrating the PPP Authority’s functions within BIDA would further simplify the investment landscape. “A separate OSS focused on Micro, Small, and Medium Enterprises (MSMEs) is highly recommended to ensure that the sector receives the tailored attention it requires to foster growth,” the report says.
The 12-member taskforce was formed on September 10 to reframe development strategies, identify financial system leakages, and restore discipline in project implementation.