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The inexorable worldwide march towards far-right nationalism coupled with a slowing economy and recession is reducing the power of foreign direct investment (FDI) much to the dismay of countries such as Bangladesh where such policies are central to development. Mr Donald Trump has initiated attractive tax-rate cuts as a carrot for investors to remain in the US thereby creating new jobs and he has been successful at least so far. The disturbances in Europe, specially the more restless ones in France, Greece and Spain, are precursors to matters similar. It's just a matter of time the United Kingdom will wake up to the fact that an island trading nation is a thing of the past and do something likewise after sorting out the mess that Brexit is. That this will come sooner rather than later is like what with a third of companies either having relocated or announced their decision to relocate. On the heels of this comes trillions of sterling being transferred out of the UK to other European Union (EU) countries.
Jef Bezoz, the Amazon CEO, has just had his investment wings clipped having been forced to withdraw a decision to set up a plant in New York. The locals have put more emphasis on the eco system rather than the twenty-five thousand jobs it would have created. Ordinarily Bezoz would have been justified in seeking an overseas venue but it is doubtful whether he will lock horns with Mr Trump not least due to the personal embarrassments he is going through. Otherwise, Bangladesh could have used its diplomacy and lobbyists to offer Bezoz an absolutely safe investment at a fraction of the cost. As it stands, Bezoz will have to look elsewhere in the United States.
Bangladesh Prime Minister has tasked her Bangladesh Economic Zones with attracting new investors but the main targets - Japan and China have problems of their own. Japan faces a slowing economy and China the added prospects of the trade war with the United States. She will undoubtedly find a resolution but it is clear that further downward costs will be key to it all. Whether it can negotiate third-party sourcing to counter the increased costs of doing business may well be the clinching factor between industry relocation or not. How many Indian companies will utilise their exclusive economic zones for all the infrastructure investment in Khulna and Mongla is a golden question.
Bangladesh must seek sunrise rather than sunset industries and the restiveness in Europe is an opportunity that, if possible to be wrested away from Africa, will be a major coup. Given the world media's bonhomie about possibilities in Africa, a major media-branding exercise will be needed along with fast-track infrastructure development. Local investment in industries must also be ensured even if it requires arm-wrestling and much as this scribe finds it abhorrent, the loan defaulters must be forced to bring back their illegally trafficked funds from overseas. That's where the former Malaysian Prime Minister is headed, so why not us.