By K. ANIS AHMED Sources :
As Chinese wages rise, other developing Asian nations have an opportunity to attract industries that are being priced out of the mainland. Vietnam and Indonesia are already benefitting from shifting investment, and Bangladesh should too. But the country is being held back by one critical shortcoming?hostility to the free market.

The Bangladeshi economy has plenty of other handicaps, to be sure. Some pin the blame for slow growth on political corruption and poor governance. Others cite power shortages and the lack of good roads and efficient ports. All this is true.

However, after decades of reform and tweaking policies, it’s time we admitted that the problem with the business environment goes deeper. Socialist thinking pervades public-policy circles and the public debate.

.This might surprise outsiders, as Bangladesh was never a communist state. But socialism was one of the country’s four founding principles, and many industries were nationalized in the 1970s. Leftist intellectuals who pushed Bangladesh toward socialism four decades ago continue to have an outsized influence in their new incarnations as heads of nongovernmental organizations, think tanks and media outfits.

These thought leaders mean well, and they don’t see themselves as opposing investment. Indeed, no one argues for outright socialism anymore; rather they agitate in the name of worthy goals such as “rights” or “social equity.” The dialogue goes awry, however, because the intelligentsia don’t recognize wealth creation as the ultimate solution to welfare.

The government often includes left-leaning civic leaders on committees to review laws, while excluding industry representatives. The resulting laws are hostile to investors. For example, new legislation in the higher education sector would impose harsh restrictions and penalties on the institutions. Private universities are forbidden from collateralizing any assets, even for the university’s development, though the same law requires them to build expensive campuses.

In the housing sector, a new “Detailed Area Plan” has finally been published. Almost two decades in the making, it has been outpaced by a doubling population and unplanned sprawl. It no longer answers the housing needs of one of the world’s most densely populated capitals. While the government is now trying to broaden the dialogue to find practicable solutions, a segment of the activists and media seem more interested in punishing developers.

More puzzling perhaps is a new telecommunications law that imposes astonishing fines and leaves little room for appeals. It also grants the ministry sweeping powers to change licensing terms. This sector has drawn millions in foreign investment in recent years. In all these cases, the regulators’ need for control seems to override any concern about investor reaction.

All this has created a culture in which companies can be attacked with impunity, with certain NGOs and the media stoking workers’ grievances. Last Friday, a mob of garment workers rioted in central Dhaka, smashing vehicles and attacking police. This despite the fact that the government just raised the minimum wage by 80%. A number of garment-industry owners have sold off their stakes in the industry citing violence by workers, even though their factories were compliant with local and international regulations.

The Bangladeshi people are naturally entrepreneurial. From the hundreds of garment factories to the innumerable workshops and tea-houses lining the roads and highways, the sheer irrepressible desire of the people to work is evident everywhere. Yet this urge is suppressed. It is almost as if the country is divided against itself.

Society puts the highest value on being an intellectual, so that the brightest students compete to get into the public universities. They then join a tiny elite, who imbibe the leftist ideology at school, enter the bureaucracy and NGOs, and keep promoting retrograde policies and ideas.

As long as most local intellectuals consider a capitalist identity or ideology a terrible stigma to avoid at almost all costs, there is little hope for a more pragmatic dialogue. No country that constantly disavows the principles of capitalism can become prosperous. The burden of anti-business laws affects millions of micro-decisions and actions that make up a day’s commercial activity. Even a tiny hesitation at every turn can add up to a large difference between competing economies.

Bangladeshis wonder why their country can’t attract even a fraction of the funds that flow to Vietnam. Fixing infrastructure and tackling corruption will help. But the country won’t succeed until deeply rooted hostility toward business is repudiated.

Mr. Ahmed is vice president of the University of Liberal Arts Bangladesh Foundation

• share:
• Bookmark on Delicious
• Digg this post
• Recommend on Facebook
• share via Reddit
• Share with Stumblers
• Tweet about it
• Subscribe to the comments on this post
• Tell a friend

Lower labour cost creating competitive benifit for Foreign Investment.(Sources)GAZIPUR, Bangladesh ? The eight-lane highway leading from the Bangladeshi capital, Dhaka, narrows repeatedly as it approaches this town about 30 miles north, eventually depositing cars onto a muddy, potholed lane bordered by mangroves and small shops.

But this is no mere rural backwater. It is the sort of place to which foreign manufacturers may increasingly turn, if the rising wage demands of factory workers in China prompt companies to seek new pools of cheap labor elsewhere.

Already, in factories behind steel gates and tall concrete walls, tens of thousands of workers, most of them women, spend their days stitching T-shirts, pants and sweaters for Wal-Mart, H&M, Zara and other Western retailers and brands.

One of the Bangladeshi companies here, the DBL Group, employs 9,000 people making T-shirts and other knitwear. Business has been so good that the company is finishing a new 10-story building with open floors the size of soccer fields, planted with row after row of sewing machines.

??Our family needed the money, so we came here,?? said Maasuda Akthar, a 21-year-old sewing machine operator for DBL.

As costs have risen in China, long the world??s shop floor, it is slowly losing work to countries like Bangladesh, Vietnam and Cambodia ? at least for cheaper, labor-intensive goods like casual clothes, toys and simple electronics that do not necessarily require literate workers and can tolerate unreliable transportation systems and electrical grids.

Li & Fung, a Hong Kong company that handles sourcing and apparel manufacturing for companies like Wal-Mart and Liz Claiborne, reported that its production in Bangladesh jumped 20 percent last year, while China, its biggest supplier, slid 5 percent.

??Bangladesh is getting very competitive,?? William Fung, Li & Fung??s group managing director, told analysts in March.

The flow of jobs to poorer countries like Bangladesh started even before recent labor unrest in China led to big pay raises for many factory workers there ? and before changes in Beijing??s currency policy that could also raise the costs of Chinese exports. Now, though, economists expect the migration of China??s low-paying jobs to accelerate.

And while workers in Bangladesh and other developing countries are demanding higher pay, too ? leading to a clash between police and protesters earlier this week in a garment hub outside Dhaka ? they still earn much less than Chinese factory workers.

Bangladesh, for instance, has the lowest garment wages in the world, according to labor rights advocates. Ms. Akthar, who is relatively well paid by local standards, earns about $64 a month. That compares to minimum wages in China??s coastal industrial provinces ranging from $117 to $147 a month.

??The Chinese firms that are beginning to get into trouble are producing textiles, rubber footwear and things like that,?? said Barry Eichengreen, a professor of economics and political science at the University of California. ??And there are lots of countries in South Asia and East Asia and in Central America that would like to fill this space.??

But Bangladesh has its own challenges to overcome.

China??s combination of a vast population of migrant workers, many with at least elementary school educations, along with modern roads, railways and power grids in its industrial provinces, has bestowed it with manufacturing capabilities that countries like Bangladesh cannot offer. Beijing also provides low-cost loans and other incentives to its industries that other countries have trouble matching for theirs.

Most of Bangladesh, meanwhile, suffers blackouts six to seven hours a day because it has not invested enough in power plants and natural gas fields ? deficiencies that the government is working on but that will not be eliminated quickly.

The country has a literacy rate of only 55 percent ? compared with more than 92 percent in China. As a result, workers in this country are only one-fourth as productive as the Chinese in making shirts, jackets and other woven clothes, according to a report by the Center for Policy Dialogue, an independent research organization based in Dhaka.

Despite its handicaps, Bangladesh nearly doubled garment exports from 2004 to 2009. And the industry now employs about three million people, more than any other industrial segment in this largely agrarian country of 160 million. From June through November last year, garment exports accounted for more than 80 percent of the country??s total exports of $7.1 billion.

Among developing countries, Bangladesh is the third-biggest exporter of clothing after mainland China, which exported $120 billion in 2008, and Turkey, a distant No. 2, according to the World Trade Organization.

And with nearly 70 million people of working age, Bangladesh could probably absorb many more of China??s 20 million garment industry jobs.

Still, some of the changes in China could prove to be mixed blessings for Bangladesh. If China allows its currency, the renminbi, to trade more freely, Bangladeshi exports would become more competitive.

But a stronger renminbi could also hurt Bangladesh by raising the price of machinery and fabric imported from China, its biggest supplier, said Ahmed Mushfiq Mobarak, an assistant professor of economics at the Yale School of Management. Over time, Bangladesh could buy more from other countries, like India, but those countries first would need to build up significant production capacity.
And as in China, workers in Bangladesh have started demanding higher pay. In recent weeks, labor protests have periodically shut down garment factories as thousands of workers battled police in Dhaka and other garment hubs like Gazipur. Late last month, police clashed with about 15,000 protesters on a busy Dhaka street lined with garment factories. In one exchange, a clutch of protesters lobbed bricks at police officers from an alley opposite the Outright Fashion factory, before fleeing as the officers charged at them with batons, tear gas canisters and the hot, colored water used to both disperse protesters and mark them for later identification.

Garment workers are demanding a 200 percent increase in the minimum wage, to 5,000 taka (about $71) a month ? which is how much workers with several years of experience now earn. The government, which plans to announce a new minimum wage soon, last increased it in 2006, to 1,662.50 taka (about $24). Since then, inflation has been as high as 9.9 percent a year.

??Most garment workers live in slum areas where one room costs 2,000 to 3,000 taka,?? said Mushrefa Mishu, president of the Garment Workers?? Unity Forum, an association that claims to represent more than 60,000 members.

Labor leaders want the government to make it easier for workers to form unions ? very few factories are unionized today ? and to require higher safety standards and better working conditions.

In January, H&M, Wal-Mart, Gap, Tesco and other Western clothing buyers asked the Bangladeshi government to raise the minimum wage and reset it every year, although the group did not specify what the wage should be. A spokeswoman for H&M, Malin Bjorne, said the company was willing to pay more for clothing to help support higher wages. It is unclear whether other companies would do the same.

But factory owners here argue that a big increase in wages would make them uncompetitive against Vietnam and other big producers, which have higher labor costs but also have better infrastructure and are more efficient producers. If that happened, Bangladesh??s China opportunity could prove all too fleeting, they say.

??If it??s 5,000 taka, I would close all my factories,?? said Anisul Huq, a former head of the Bangladeshi garment industry??s trade group and a factory owner whose customers include H&M and Wal-Mart. ??Even if it??s 3,000 taka, lots of factories will close within three or four months.??

• share:
• Bookmark on Delicious
• Digg this post
• Recommend on Facebook
• share via Reddit
• Share with Stumblers
• Tweet about it
• Subscribe to the comments on this post
• Tell a friend

It is happening the positive . Goverment are now concious to procure the woman human resource .?who are our 50% manpower. Industries Minister Dilip Barua on Tuesday said the present government is pledged-bound to strengthen participation of women in mainstream business and commerce besides ensuring women empowerment.

The government expects that every woman in the country would contribute to the socio-economic development through their own capacity, he said while addressing as the chief guest the inaugural session of National Entrepreneurship Conference at Dhaka Sheraton Hotel here on Tuesday.

Bangladesh Bank Governor Dr Atiur Rahman and Whip of the Jatiya Sangsad Shagufta Yasmin MP addressed the function as special guests. Industries Ministry under its SMESDP Project organized the conference with Industries Secretary Dewan Zakir Hussain in the chair.

The minister said the government since its assumption to power has been putting emphasis on a women-friendly policy and for this women entrepreneurs have made significant progress. For ensuring women development in all development activities including in the rural areas and rural economy, various measures have already been undertaken, he said adding these measures include creating women entrepreneurs, providing soft loans, changing attitude of banks and financial institutes, presenting women- friendly budget.

The government is working with positive attitudes about allotting plots to women entrepreneurs on priority basis at the existing BSCIC industrial areas, allotting plots separately to women entrepreneurs at new BSCIC areas, establishing separate SME bank and other measures.

He said the government has taken special measure for providing trainings to women entrepreneurs and for this a special programme has been undertaken under BITAK for giving training to 10,000 women and men in five years. Pointing to Small and Medium Enterprises Development Programme (SMEDP) under the Industries Ministry, he said, programmes have been undertaken for the development of women entrepreneurs. Directives have been given to the scheduled banks for disbursing at least 10 percent of the SME loans to women entrepreneurs, he said adding directives have also been given from Bangladesh Bank to provide loans to women entrepreneurs at maximum 10 percent interest from Small Enterprise Fund (SEF), he said.

Bangladesh Bank Governor said the central bank has taken steps to overcome the problems in the SME sector, especially for removing obstacles for women entrepreneurs in getting loans. He said minimum 15 percent of the Bangladesh Bank’s refinancing scheme has been preserved for disbursing loans to women entrepreneurs and the interest rate for those loans have been fixed at 10 percent interest rate.

Steps were taken so that women entrepreneurs can avail a maximum Taka 50 lakh loans against personal guarantee and every bank has been asked for setting up Women Entrepreneurs Dedicated Desk, he said. He said a total of Taka 120 crore was allocated for financing women entrepreneurs under the refinancing scheme comprising Bangladesh Bank, IDA Fund and ADB Fund and so far 668 projects have been allocated Taka 49.23 crore loans (42 percent of total fund), which indicate that maximum fund for women has remained unutilized.

• share:
• Bookmark on Delicious
• Digg this post
• Recommend on Facebook
• share via Reddit
• Share with Stumblers
• Tweet about it
• Subscribe to the comments on this post
• Tell a friend

Sources: Bangladesh and China have signed an agreement on economic cooperation under which Beijing will provide US$5.8 million (40 million yuan) as a grant to Dhaka.

Chinese Vice Minister for Commerce Chen Jiang and Economic Relations Division Secretary Musharraf Hossain Bhuiyan signed the deal on behalf of their respective governments.

The deal was signed following an hour-long official talk between Prime Minister Sheikh Hasina and visiting Chinese Vice President Xi Jinpeng at the PM??s office in Dhaka Monday afternoon.

The two leaders held “fruitful discussions” about cooperation on trade, commerce, investment, education, culture and defense, Bangladesh Foreign Minister Dipu Moni told reporters after the talks.

Xi Jinpeng arrived in Dhaka Monday on a two-day official visit to Bangladesh visit aiming to strengthen bilateral relations between the two countries.

Xi Jinping, also a member of the standing committee of the Communist Party of China, is scheduled to leave Dhaka Tuesday afternoon. He will also visit Laos, New Zealand and Australia on a series of trips scheduled through June 24

• share:
• Bookmark on Delicious
• Digg this post
• Recommend on Facebook
• share via Reddit
• Share with Stumblers
• Tweet about it
• Subscribe to the comments on this post
• Tell a friend

Sources :WHEN the nation has been yearning for a piece of good news amidst the power, gas and water crunch, the news that Bangladesh has scored good figures in the first-ever global ratings on economy bears a special significance for all of us.

The US based global rating agency Standard and Poor’s (S&P) has assigned BB to Bangladesh, with a stable outlook for the financial sector. Moody’s Investor Service, another US based global rating agency, announced its sovereign credit rating for Bangladesh as Ba3 on April 12, just a week after S&P’s rating.

The BB and Ba3 of sovereign credit ratings have placed Bangladesh higher than Pakistan and Sri Lanka, and in the same rank as Vietnam, Philippines, Indonesia and Turkey. The rating agencies mentioned the resilience of the Bangladesh economy to external shocks as well as domestic stress as a positive indicator. The strong and resilient readymade garment (RMG) sector as well as the robust inflow of migrant workers’ remittances underpinned the economic growth.

Standard and Poor’s operates as a financial services company worldwide. Its products and services include credit ratings, equity research and providing information and workflow solutions to a particular debt security or other financial obligation. Over the years, its credit ratings have achieved wide acceptance of investors as convenient tools for differentiating credit quality.

Moody’s Investor Service also performs financial research and analysis on commercial and government entities. The company also ranks the credit-worthiness of borrowers through using a standardised ratings scale. Moody’s credit rating system is increasingly becoming sophisticated.

Bangladesh is a country globally known for its poverty, corruption, violence and natural calamities. But these are not all that the country is about. There are some positives that discerning eyes cannot fail to see. Bangladesh has made positive strides in education, life expectancy and rural development. Literacy rates have increased remarkably, though the quality of education is yet to be improved.

The country has made remarkable progress in human development. Each year since 1990 the Human Development Report has published the Human Development Index (HDI), which looks beyond GDP to a broader perspective of well-being. The HDI for Bangladesh (2009) is 0.543, which gives it a rank of 146 out of 182 countries. Among the medium human development in Asia, Bangladesh is ranked above Pakistan, Myanmar, Nepal, Cambodia and Yemen.

The HDI measures the average progress of a country in terms of human development. But the Human Poverty Index (HPI) focuses on the proportion of people below certain threshold levels in each of the dimensions of the HDI. The HPI value of 36.1 percent for Bangladesh ranks it 112th among 135 countries for which the index was calculated.

Bangladesh has advanced its position in global competitiveness, marked by a 5-stage leap from last year’s position. The Global Competitiveness Report (GCR) is a yearly report published by the World Economic Forum. The 2009-10 report, covering 134 major and emerging economics across the world, ranks Bangladesh 106th (from 111th in 2008-09), though the power and gas crunch are major hurdles to achieving better business competitiveness.

The country’s economic freedom score of 51.1 percent makes its economy the 137th freest in the global index of 2010. Its overall score is 3.6 points higher than last year’s. Bangladesh is ranked 29th out of 41countries in the Asia-Pacific region in economic freedom.

The US-based Heritage Foundation and the Wall Street Journal index of economic freedom 2010 ranks Bangladesh 137th out of 179 countries. The country has enjoyed impressive economic growth of around 6 percent per year over the last 5 years, driven mainly by its strong and resilient RMG sector.

Bangladesh has also performed well in the global environmental scene. The Environmental Performance Index 2010 ranks 163 countries on 25 performance indicators tracked across 10 policy categories, covering environmental public health and ecosystem vitality. Bangladesh, which is ranked 139th with 44.6 score, is placed above North Korea, Cambodia, Iraq and UAE.

The country was ranked 119 out of 135 countries in terms of the factors influencing FDI, in a study carried out by the renowned international magazine Forbes. It revealed that the capital hospitality of Bangladesh has been dragged down, scoring only 32.6 out of 100 in the Capital Hospitability Index. The Forbes study also said that Bangladesh slipped below its South Asian neighbours due to rampant corruption, poor competitiveness and technological backwardness.

The recent rankings and ratings of the economy give investors insight into the level of risk associated with investing in Bangladesh. To give investors confidence in investing in their country, many countries seek ratings from credit rating agencies like Standard and Poor’s, Moody’s, and Fitch to provide financial transparency and demonstrate their credit standing.

The country, for the first time, has got sovereign credit ratings from two global rating agencies, indicating a favourable position for investment compared with other South Asian nations. These ratings will create confidence and provide access to capital for development. This is a vital benchmark, which is likely to have positive impact on FDI.

Bangladesh has a number of positive attributes that can successfully attract the attention of foreign investors from both the developed and the developing countries. The increasing availability of skilled and unskilled labour at relatively low wages and the success in maintaining a reasonably stable macroeconomic environment have made the country an attractive destination for foreign investors.

Bangladesh, which has performed better in some global rankings and ratings compared to its neighbours, is poised for a good turn. It may soon emerge as yet another Asian Tiger if its positive indicators are put to optimal use.

• share:
• Bookmark on Delicious
• Digg this post
• Recommend on Facebook
• share via Reddit
• Share with Stumblers
• Tweet about it
• Subscribe to the comments on this post
• Tell a friend

Sources: Moody’s Investors Service has today assigned a first-time sovereign rating of Ba3 to the People’s Republic of Bangladesh. The outlook is stable. The Ba3 foreign and local-currency sovereign bond ratings broadly incorporate Moody’s assessment of Bangladesh’s reasonable degree of financial and balance-of-payments robustness which, coupled withprospects for continued macroeconomic stability, reduces the likelihoodof severe stress on the country’s creditworthiness. “The combination of a conservative institutional framework for managing the economy, supported by capital controls, has ensured better external balance and price stability than at many other emerging markets at a similar stage of development,” says Aninda Mitra, a Moody’sVice-President and lead sovereign analyst for Bangladesh. “Policy stability and underlying demographic shifts coupled with steadyincreases in trade openness have aided a remarkably steady rate ofeconomic growth averaging 6% over the past decade,” said theSingapore-based analyst, adding, “The economy has also ably withstoodseveral recent external shocks, periods of domestic political stress andsupply-side bottlenecks.” Mitra attributes this resilience to the robust growth of family-based remittance inflows and the growing role of micro-finance institutions.These have offset the vagaries of subsistence level per- capita income bysupporting domestic consumption and helping to develop a critical socialsafety net. Despite its medium-size economy and evidence of recent economic dynamism, Bangladesh’s relatively high industrial and export dependence on theready-made garments (RMG) sector is a ratings constraint. “However, in the medium term, a broader process of sustained industrialdiversification, supply- side and financial sector reforms, and regionaleconomic integration may help reduce infrastructure rigidities andalleviate concentration risks,” notes Mitra. Bangladesh’s relatively robust external position, and especially its strong foreign currency reserve adequacy, compares favourably with most other Ba and single-B-rated peers. According to Mitra, these reflect Bangladesh’s recent dynamic RMG exports, large remittance inflows,minimal foreign commercial borrowing, and advantageous external debtservicing profile. Mitra also notes that the government’s debt dynamics are supported by the gradual strengthening of GDP growth rates, a stable-to-appreciating realeffective exchange rate, and a readily finance-able budget deficit. “However, despite the generally positive trends in the government’s debt trajectory, debt affordability and fiscal flexibility face more pressure than do most of its rating peers,” he adds. Bangladesh’s low debt affordability is reflected by interest pressures inthe budget that exceed most Ba- and B-rated sovereign credits. Relativelyhigher interest payments as a percent of government revenue is derivedfrom low revenue collection which amounts to only 12 percent of GDP, andoccurs despite the sizable proportion of very low interest ‘concessionaldebt’ owed to official creditors. However, another reason for the highinterest to revenue ratio is the government’ ability to finance more thanhalf of its deficit in the local debt market, where financing costs arerelatively high. The lack of fiscal flexibility is also reflected in a high governmentdebt-to-revenue ratio of 350 percent, resulting, once again, fromshortcomings in revenue generation. Nonetheless, in the event of anunexpected fiscal shock, debt roll-over risk will likely be contained bythe government’s cash balances in the banking system and by the country’srespectable savings rates that should provide greater debt absorptioncapability than at most other single- B rated sovereign credits and evensome Ba3 peers. Bangladesh’s impending tax reforms in the forthcoming fiscal year are particularly important in supporting its credit outlook. “This will notonly support improved fiscal flexibility and debt affordability, but thereforms will also underpin much-needed expansion of public developmentexpenditure,” says Mitra. Contingent fiscal pressures from the performance of — or outstanding guarantees to — non- financial state-owned-enterprises are relativelylow. Although banking system fundamentals are relatively weak, though,improving, banks are not reliant on external funding and are unlikely topose serious contingent sovereign risks. “The government’s absolute parliamentary majority should support a broad emphasis on economic reforms, regional integration and political reconciliation” adds Mitra, noting, “nonetheless, narrow identity orideological politics, and capacity constraints in state institutions mayslow the pace of reforms but are unlikely to derail the economic policyframework.” In conjunction with the first-time sovereign rating, Moody’s has alsoassigned Bangladesh a foreign currency bond ceiling of Ba2 and a foreigncurrency bank deposit ceiling of B1. These reflect a medium likelihood ofan external payments moratorium in the event of a deterioration in thesovereign’s external creditworthiness, and a stronger likelihood of bankdeposit controls. Additionally, Moody’s has assigned Bangladesh long-term local currency bond and deposit ceilings of Baa3, reflecting the broader financial,political and legal country risks faced by locally-funded or domiciledcredit transactions.

More

• share:
• Bookmark on Delicious
• Digg this post
• Recommend on Facebook
• share via Reddit
• Share with Stumblers
• Tweet about it
• Subscribe to the comments on this post
• Tell a friend

PHARMACEUTICAL trade is one area that Brunei and Bangladesh could improve on, Bangladesh High Commissioner M Shameem Ahsan told The Brunei Times on Thursday.
sources :
The diplomat explained that Bangladesh has been exporting pharmaceuticals for the past nine years and earned some US$700 million ($983 million) annually from the industry, with some US$50 million ($70 million) being earned through pharma exports.

?This covers very-high-end products, including anti-cancer medication, anti-viral drugs and even the H1N1 vaccine,? said Ahsan.
He related that in a meeting with Minister of Health, he had the opportunity to tell him that if Brunei wanted to, it was possible at anytime and at short notice to import the H1N1 vaccine from Bangladesh.Asked what advantages importing pharmaceuticals from Bangladesh had, the High Commissioner said, ?Quality at a very cheap price. For example, the cost of one paracetamol tablet is four cents.?

The pharmaceutical manufacturing companies in Bangladesh have been certified by Medicines and Healthcare products Regulatory Agency from the United Kingdom, and the equivalent from Australia and Singapore, said Ahsan, ensuring that the products were of international-standard quality.

?For example, there are some companies that regularly supply Raffles Hospital in Singapore,? he added.

The High Commissioner said that while some trade between Brunei and Bangladesh does exist, it has not reached the extent that he would like to see. ?Singapore is the regional hub and it is surmised that some kind of re-export of Bangladeshi products is taking place,? he said.

?As for Bruneian products, we cannot confirm what is taking place, but we do see from some of the statistics we have been given that there is a trickle of exports from Brunei in the area of garment manufacturing.?

The High Commissioner believes that some components that go into the manufacturing of garments in Bangladesh came from Brunei, meaning that the finished products coming from Bangladesh used materials from the Sultanate.

While trade between Bangladesh and Brunei is not be as high as he would like it to be, Ahsan said that it was growing. ?Given the right amount of interest on both sides, it will increase. When I came over a year ago trade amounted to less than US$70,000 ($98,000). But in the last financial year ending July 2009, it has grown to US$100,000 ($140,000),? he said.

On the subject of tourism, Ahsan said that Bangladesh had a lot to offer in terms of historical and archaeological sites, but by looking at Bruneian preferences when going abroad, Bangladesh does not seem to offer the attractions that Bruneians find appealing.

?It?s competitive,? he said, adding that there were many contenders offering similar tourism products, such as India, Nepal, Sri Lanka and Myanmar.

?We are looking into eco-tourism, but it is not yet as developed as we would like,? he said.

In addition, there are currently no direct flights between Brunei and Bangladesh. ?It is difficult to say (whether direct flights will be introduced), we still have to look at profitability.

?But that doesn?t mean it will not happen one day. Hopefully, if it does, it will increase tourism between our countries,? he added.

• share:
• Bookmark on Delicious
• Digg this post
• Recommend on Facebook
• share via Reddit
• Share with Stumblers
• Tweet about it
• Subscribe to the comments on this post
• Tell a friend

Finance Minister AMA Muhith on Tuesday said that energy and power crisis is now holding up investment in the country. “There is a horrible crisis in energy and power sector. it’s also worst in the region and holding up investment right now,” he said while addressing the inaugural session of the 10th Annual SANEI Conference as chief guest at a city hotel.
The two-day conference was organised jointly by South Asia Network of Economic Research Institutes (SANEI) and Bangladesh Institute of Development Studies (BIDS).

Prime Minister’s Economic Affairs Adviser Dr. Mashiur Rahman was the special guest at the session, chaired by Prof. Nurul Islam, Emeritus Fellow IFPRI, USA. BIDS director general Mustafa Kamal Mujeri gave the welcome address.

Prof TN Srinivasan, Samuel C Park Jr., Professor of Economics, Yale University, USA, Mohsin S Khan, senior fellow, Peterson Institute for International Economics, Washington, USA, M Ali Khan, Abram Hutzler Professor of Political Economy, Johns Hopkins University, USA, and SR Osmani, Professor of Development Economics, University of Ulster at Jordanstown, UK, took part in panel discussion on the development challenges in South Asia.

Speaking on the occasion, Muhith said that gas remained totally unexploited for a long time and it has become a difficult challenge for the government to cope with the demand.

He said that the savings and investment rate are still the development challenges for Bangladesh. “National savings rate is not high, public savings rate is low and it’s now 3-4 percent.”

To meet these challenges, the Finance Minister said Bangladesh would have to increase its public expenditure to 20 percent in next three years, which is now 15-16 percent. “Bangladesh also needs to reach to an investment situation of 30 percent or more if we really want to live up by the dreams.”

Apart from increase in public expenditure, he also underscored the need for large-scale private investment, both domestic and foreign.

Mentioning Bangladesh as a victim of climate change, he said nobody comes forward for investment when the questions for mitigation and investment are raised. Besides, the existing infrastructures are not capable enough to tackle the situation.

In this regard, he stressed the need for migration saying that it is extremely important for global economic development.

On inflation especially on food, Muhith confidently said: “We’ll be able to handle it.”

On the issue of regional cooperation, he hoped that Bangladesh will be taking “pioneer steps in really energizing regional cooperation.”

The Finance Minister termed education and information technology (IT) as the most powerful tools against corruption.

Speaking as special guest, PM’s adviser Dr. Mashiur Rahman said the region needs rapid growth to address poverty.

Differing with the position of Mohsin S Khan on the Planning Commission, he said that planning has an important role to play even now as it still serves a useful purpose.

Giving emphasis on investment and resource mobilization, Prof SR Osmani said: “Unless you raise your investment to promote growth you are not anywhere.”

Terming energy crisis and inflation as the major economic crisis for Pakistan, Mohsin S Khan suggested that the time has come to abolish the Planning Commission in order to meet the development challenges.

But, opposing with his opinion, Finance Minister Muhith said that he would have gone for redefining the functions of the planning commission not for abolishing it.

The two-day conference will have separate sessions on international migration, migration: domestic and international, domestic migration and trade in health services, trade in health services and health care, employment and poverty reduction in South Asia, addressing the challenges of regional economic cooperation, cost effectiveness of health care, international migration and climate change, public expenditure accountability in education, health and water.

Some 100 participants from India, Nepal, Sri Lanka, Pakistan and Bangladesh are taking part in the conference.

• share:
• Bookmark on Delicious
• Digg this post
• Recommend on Facebook
• share via Reddit
• Share with Stumblers
• Tweet about it
• Subscribe to the comments on this post
• Tell a friend

From our childhood we have learned that jute is the main cash crops of Bangladesh. We called jute the golden fiber. But from many years we are facing lots of obstacle of jute growing . Jute cultivation may face a setback in Jhenidah district this year as farmers are purchasing Indian low quality seeds at high prices due to acute crisis of locally produced seeds in the sowing season.

A section of dishonest traders are supplying smuggled Indian substandard seeds to the market using names of different brands as Bangladesh Agriculture Development Corporation (BADC) fails to supply adequate seeds for the farmers in the district, local seed dealers said.

A one kg-packet of Indian low quality seeds is selling between Tk 200 and Tk 250 whereas the government rate for BADC produced seeds is Tk 87.

There is a target to bring about 12,000 hectares of land under jute cultivation in six upazilas of Jhenidah this year, said sources at Department of Agriculture Extension (DAE).

Farmers will start sowing seeds in full swing within the next 10 days (from the last week of Falgun to the first week of Chaitra), and jute cultivation might exceed the target this season as farmers received fair price of it last year, DAE officials said.

But the farmers are likely to incur huge losses as the local markets have been flooded with substandard Indian jute seeds, the officials said.

When contacted, Khasruzzaman, senior additional director of local BADC office, told this correspondent that they earlier sent a letter to the head office in Dhaka seeking allocation of 1,500 kg jute seeds for Jhenidah but they are yet to receive any response.

A DAE official of Jhenidah, preferring anonymity, said jute plants on 1,000 hectares of land in six upazilas got damaged at a very early stage last year as the seeds were supplied from India.

“Failing to understand the quality of seeds, I sowed Indian seeds on two bighas of land last year and incurred a huge loss,” Altaf Hossain of Enayetpur village under Kaliganj upazila said.

The Indian seeds are being smuggled into the district through different bordering areas in Sadar and Alamdanga upazilas of Chuadanga, local sources said.

Rashidul Hasan, a fertiliser dealer appointed by BADC in Shailkupa, said, “Now different companies are selling Indian low quality seeds in the local market. No companies other than BADC produce jute seeds locally in Bangladesh.”

“BADC has appointed 90 seed dealers for Jhenidah but Indian substandard seeds are selling at different shops openly. If the government does not take necessary action immediately the farmers will be cheated again like the previous year and incur huge losses for sowing these low quality seeds,” Nur Hossain, president of Jhenidah Seed Dealers Welfare Association, said.

• share:
• Bookmark on Delicious
• Digg this post
• Recommend on Facebook
• share via Reddit
• Share with Stumblers
• Tweet about it
• Subscribe to the comments on this post
• Tell a friend

A mobile phone operator raised $102m through Bangladesh?s biggest corporate bond deal, in another sign that the country?s capital markets are flickering back into life.

Orascom Telecom Bangladesh, a subsidiary of Egypt?s Orascom Telecom, smashed the previous record just four months after Grameenphone, its larger rival, sold shares for $71m in the country?s largest initial public offering.

The two deals, while small in global terms, are an indication that investors are becoming more confident in Bangladesh, a country identified by Goldman Sachs as one of the N-11 (?Next Eleven?) markets to watch in the 21st century.

?Investor confidence is coming back,? said Shams Zaman, of Citi Bangladesh, which arranged the deal. ?The Orascom bond shows that it?s possible to raise sizable amounts of financing from the local market.?

Other local companies are likely to sell bonds in the coming year, he added, from sectors including telecommunications, finance and pharmaceuticals.

Competition is heating up in Bangladesh?s telecoms sector ? in January, Bharti Airtel, the Indian telecoms group, bought 70 per cent of Bangladesh?s Warid Telecom for an initial investment of $300m.

That followed a high-profile IPO by Grameenphone, Bangladesh?s biggest telecoms company, which raised $71m from local retail investors and a further $70m from selling shares to the country?s institutions.
Nobel Prize winner Muhammad Yunus

Grameenphone is a joint venture between Norway?s Telenor and local microfinancier Grameen Bank, launched by Nobel Prize winner Muhammad Yunus.

Orascom Telecom Bangladesh, which trades under the name Banglalink, plans to use the proceeds of its bond sale to invest in network equipment and expand in rural Bangladesh.

The amortising senior secured bonds are denominated in the Bangladeshi taka. They have a 13.5 per cent coupon rate payable every six months and are due in 2014.

The size of the offering was increased from Tk4.25bn ($62m) to Tk7.1bn due to ?huge interest? from investors such as mutual funds, insurance companies and commercial banks, Mr Zaman said.

About Oracom
About Us

Orascom Telecom Holding S.A.E. (?Orascom Telecom? or ?OTH?) was established in 1998 and has grown to become a major player in the global telecommunications market. OTH is considered among the largest and most diversified network operators in the Middle East, Africa, and South Asia. Orascom Telecom is a leading mobile telecommunications company operating in eleven emerging markets having a population under license of 498 million with an average mobile telephony penetration of approximately 46% as of December 31st, 2008. Orascom Telecom operates GSM networks in Algeria (“OTA”), Pakistan (“Mobilink”), Egypt (“Mobinil”), Tunisia (“Tunisiana”), Bangladesh (“Banglalink”), and North Korea (?Koryolink?). OTH has an indirect equity ownership in Globalive Wireless which has been granted a spectrum license in Canada. OTH was also awarded the management contract of one of the two Lebanese mobile telecommunications operators (“Alfa”) from the government of the Republic of Lebanon. Through its subsidiary Telecel Globe, OTH also operates in Burundi, the Central African Republic, Namibia and Zimbabwe. Orascom Telecom had over 88 million subscribers as of September, 2009.

OTH’s first operation was the Egyptian Company for Mobile Services commonly known as (?Mobinil?). Mobinil is a market leader serving over 24.2 million subscribers representing a market share of 43.6% (as of September 2009). Mobinil is one of Egypt’s five largest companies on Cairo & Alexandria Stock Exchange (?CASE?) in terms of market capitalization.

OTH witnessed success as Orascom Telecom Algeria SPA (?Djezzy?) was launched in February 2002. It grew to become the market leader in terms of both subscriber numbers as well as the quality of telecommunications services provided. Djezzy serves over 14.7 million subscribers on its network and has a 62.9% market share (as of September 2009).

Orascom Telecom Tunisie (?Tunisiana?) launched its services in December 2002, and serves over 4.8 million subscribers on its network with a growing market share of 53% (as of September 2009).

In Pakistan, the Pakistan Mobile communications Ltd (?Mobilink?) started its operations in 1994. In April 2001, OTH took over management control of the company. As the market leader, Mobilink serves over 30 million subscribers, representing a market share of 30.9% (as of September 2009).

In September 2004, OTH purchased 100% of Sheba Telecom (Pvt.) Limited in Bangladesh. OTH re-branded and launched its services as “Banglalink” in February 2005. Immediately after the launch, OTH started its aggressive plans to develop Banglalink into a leader in the mobile sector by rapidly expanding its GSM network to provide high quality communications services at affordable prices. Banglalink serves over 12.1 million subscribers with 24.2% market share (as of September 2009).

In the beginning of 2009 OTH has been awarded the management contract of Alfa, one of two Lebanese mobile telecommunications operator, owned by the Republic of Lebanon. The management contract extends for one year and is renewable for another year. Under this contract, OTH is required to increase the number of subscribers of Alfa from around 600 thousand at the end of 2008 to around 1 million at the end of 2009.

Koryolink is the first 3G mobile network to operate in the Democratic People’s Republic of Korea (?DPRK?) and is established as a joint venture between OTH (75%) and Korea Posts and Telecomm Corp. (KPTC) (25%). OTH was awarded the license to establish a 3G mobile network in DPRK in January 2008. Koryolink will deliver world-class voice and data communication services to the people of the DPRK.

OTH established a strong presence in the GSM Association (the world’s leading wireless industry representative body) only five years after its inception. OTH’s Chairman and CEO, Mr. Naguib Sawiris, was selected to join the GSM Association’s CEO Board in 2002. OTH is traded on the Cairo & Alexandria Stock Exchange under the symbol (ORTE.CA, ORAT EY), and on the London Stock Exchange its GDR is traded under the symbol (ORTEq.L, OTLD LI).

• share:
• Bookmark on Delicious
• Digg this post
• Recommend on Facebook
• share via Reddit
• Share with Stumblers
• Tweet about it
• Subscribe to the comments on this post
• Tell a friend