Violence and Insecurity Can Seriously Damage a Country’s Investment Prospects

A stable political environment, effective law enforcement and strong institutional governance are essential for attracting foreign investment. However, continued lawlessness, political unrest, violence and insecurity can seriously damage a country's investment prospects and discourage international businesses from establishing operations.

Economic experts and business leaders have repeatedly emphasized that foreign investors prioritize security, political stability, and the rule of law before making major investment decisions. No investor wants to risk millions of dollars in a country where businesses, factories, commercial establishments, and employees are vulnerable to violence, extortion, vandalism, or criminal activities.

Foreign direct investment (FDI) plays an important role in economic development. It creates employment opportunities, introduces modern technology, increases industrial production, strengthens exports, and contributes to national revenue. Countries seeking sustainable economic growth therefore need to establish a safe and business-friendly environment.

Unfortunately, persistent lawlessness can undermine these objectives. When businesses face threats, attacks, illegal demands, or uncertainty about their operations, investors may postpone expansion plans or move their capital to countries offering greater security and predictability.

Political instability also creates uncertainty about government policies, taxation, regulations, and investment protection. International companies generally prefer countries where laws are implemented consistently and commercial agreements are respected regardless of political changes.

Another major concern is the protection of property and business assets. Investors need confidence that law enforcement agencies and judicial institutions will protect their legitimate interests and resolve disputes fairly. Without effective legal protection, attracting long-term investment becomes extremely difficult.

Unemployment, poverty, and economic stagnation can also worsen when investment declines. Foreign companies contribute not only capital but also technical expertise, management skills, and access to international markets. Losing these opportunities can negatively affect local industries and employment.

Mob violence started in Bangladesh in a staggering way right after former Bangladesh Prime Minister Sheikh Hasina moved to India on 5 August 2024 and an interim government took oath on 8 August in the same year headed by Nobel Prize winner Professor Dr. Muhammad Yunus. Robbery, snatching, gang rape, beating up  political opponents, lodging fictitious police cases etcetera clutched whole Bangladesh at a lightning speed. Even US President Donald Trump slammed Bangladesh authorities for their failure to protect religious minorities in October 2024 during his election campaign.

The government must therefore take decisive measures to restore public security and strengthen the rule of law. Police and other law enforcement agencies should act professionally, impartially, and effectively against criminal activities. Those involved in extortion, violence, vandalism, and attacks on businesses must face appropriate legal consequences.

At the same time, political parties and social organizations should demonstrate responsibility by avoiding activities that threaten public safety and economic stability. Constructive dialogue and peaceful political engagement are essential for maintaining confidence among domestic and international investors. Improving infrastructure, reducing bureaucratic obstacles, ensuring transparent regulations, and fighting corruption are equally important for creating a competitive investment environment.

Ultimately, economic development cannot be achieved through promises alone. Investors need practical guarantees of security, political stability, and legal protection. Unless lawlessness is controlled and public confidence restored, attracting substantial foreign investment will remain a difficult challenge. A peaceful and orderly environment is not merely desirable; it is fundamental to building a stronger economy and a prosperous future.


Nasir Uddin Shah is Chief 
Reporter at The Asian Age.