“Syndication” in Bangladesh: A Glaring Example of Business Malpractice and Weak Market Supervision

Abstract

Purpose: Syndication in this paper refers to the agreed and unified effort of all the leading producers, importers, and dealers in a market to control the price of a specific product. This paper aims to explore the term "syndication", its nature, procedure, and consequences in the context of Bangladesh. It also provides a few recommendations for the policymakers for curving or preventing such practices.

Design/Method: In this paper, syndication has been represented as a negative business practice prevailing predominantly in Bangladesh. The study is mainly based on data from secondary sources, as well as my (the author's) own observation and real-life experience. Secondary data were collected particularly from newspapers.

Findings: In the pre-planned trap of syndication practices by dishonest businessmen, the final consumers are the ultimate losers as they have to pay the premium price.

Implication: It is expected that upon proper utilization of the recommendations made, the responsible authorities or parties can take proper steps to make the consumer market free from such malpractice, at least to some extent. The paper is also anticipated to become a foundation for the researchers and academicians wishing to investigate more regarding this fairly unexplored phenomenon.

Originality/Value: According to my knowledge, this paper is the first attempt to unveil the true nature of syndication practiced in Bangladesh. The term “Syndication” used in this paper has a meaning which is totally different from the same word used for other purposes. Therefore, this conceptual paper is believed to be the founding block for further research investigations in the Bangladeshi consumer market scenario. I strongly believe that upon proper utilization of the recommendations made, the consumer market will be free of such malpractice.

Limitations: This article is limited to the consumer market scenario of Bangladesh only. Thus, the term cannot be generalized for the same meaning elsewhere.