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Municipal Competitiveness Index (MCI) Unlocks Investment Potentials to Build Stronger Local Economies

Bangladesh
Reskilling and upskilling, Labour market insertion

Rahnuma Shabiba, PRABRIDDHI, Bangladesh 20.08.2025
The introduction of the Municipal Competitiveness Index (MCI) is a remarkable data-driven tool to guide policymakers, municipal leaders, and private sector stakeholders to make municipalities more attractive for investment. 

Developed under the Bangladesh Investment Climate Improvement (BICI) programme and implemented by the Policy Exchange Bangladesh, the MCI is informed by nationwide consultations. The Bangladesh Investment Development Authority (BIDA) and PRABRIDDHI project co-organized a high-level workshop in Dhaka to highlight the role of the MCI to enable municipalities for investment. The event also paid attention to the potential of MCI in strengthening local governance in municipalities.

The event was graced by the presence of policymakers, municipal representatives, development partners, and private sector leaders to discuss reformation requirements that impact directly on the ease of doing business in secondary cities.

The discussions were centered on reform opportunities in business entry, infrastructure, taxation, dispute resolution, and access to finance. These key indicators are vital to provide MCI a roadmap for local governments to identify gaps, implement reforms, and set priorities that will ensure improved entrepreneurship and private investment in the economy.

Panel Discussion on MCI  
Ashiq Mahmud Bin Harun Addressing the Significance of MCI in Building a Stronger Investment Environment.
"This index helps spotlight the potential of municipalities as viable investment destinations. If we can strengthen local capacities and improve inter-agency coordination at the grassroots level, these areas will become significantly more attractive to investors."
Ashiq Mahmud Bin Harun, Executive Chairman, BIDA and the Bangladesh Economic Zones Authority.

Dr. M. Masrur Reaz, the Chairman of Policy Exchange Bangladesh Speaking about How the Successful Collaboration with Swisscontact Expanded the Scope of More Business Investment to Municipal Level

"The integration of MCI into the BICI program reflects the shared commitment of Policy Exchange, BIDA, and Swisscontact to promote local economic development and enhance the business environment across Bangladesh. While earlier indices—such as the World Bank’s Ease of Doing Business—focused only on two major cities,this initiative, supported by Swisscontact, enables us to expand that lens to the municipal level. It offers a more holistic understanding of the country’s investment landscape."
Dr. M. Masrur Reaz, Chairman of Policy Exchange Bangladesh

PRABRIDDHI project- funded by the Governments of Switzerland and Bangladesh supported Polity Exchange Bangladesh to conduct series of workshops with BICI in 2024. The MCI was developed to identify how business-friendly and investment ready Bangladesh’s municipalities are.

2020 - 2025
Bangladesh
Growth entrepreneurship
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