Korea Development model worth emulating

http://www.koreatimes.co.kr/www/news/nation/2010/10/117_74724.html

Korea Development model worth emulating
Shahidul Islam

The remarkable economic development achieved by Korea within a short time has generated widespread interest about Korea’s development model.

After coming to Korea in 2008, I attended a number of seminars on Korea’s development experience to learn more about it. In my quest to learn about its development process, the series of articles published by The Korea Times under the title “Rags to Riches” has come in handy as the most comprehensive account of Korean development history.

By publishing this series on the eve of the G20 summit to be hosted by Korea, The Korea Times has done a great service to promote Korea’s image by helping foreign readers with a better insight into the Korean development history.

Unique elements of Korean development model

The most striking element of the Korean development model is the central role played by the government in the country’s economic development. The government did everything to ensure fast economic growth, even if that necessitated politically unpopular decisions.

However, it is not only the right policies that propelled Korean economic development; the thing that made the difference was the single-minded effort by its leaders and followers to implement those policies. The Korean development history is perhaps inseparable ― if not synonymous to ― from its charismatic leader President Park Chung-hee.

President Park wanted to transform Korea from a poor country into a prosperous and successful nation, for which he was prepared to go to any lengths. He successfully instilled this “will to change” among the Korean people, who in turn worked hard to achieve this objective.

What made the difference?

In the 1960s, a Korean delegation visited Bangladesh (then part of Pakistan) to see the implementation of our second five-year plan, which fueled industrial growth in Bangladesh. After five decades, Bangladesh still remains a poor developing country while Korea is a member of OECD and is going to host the next G20 summit. What made the difference?

While governments in both Korea and Bangladesh took a proactive role in their countries’ development efforts, their approaches were vastly different. Bangladesh lagged behind due to adherence to inward-oriented policies. Like many post-colonial countries, Bangladesh emphasized equity and justice in distribution of wealth as opposed to rapid economic growth.

Soon afterwards, frequent intervention by the military disrupted the growth of institutions needed to support development efforts, and a prolonged ideologically charged debate on development models defused actual economic progress.

Korea was pragmatic in resorting to more outward-oriented economic policies, adopting export-led growth strategy and encouraging private sector business and industries. Korea had had the privilege of following a singular policy model of development from the very beginning. The government concentrated on building large infrastructures while leaving business and industry to private entrepreneurs. Indeed, large businesses such as Hyundai, Samsung, LG and Daewoo created enormous wealth for a few families, but they also provided jobs to millions and helped rapid industrialization of the country.

In the 21st century, Korean government is still actively guiding and coordinating the economic development efforts. In order to ward off the malice of global crises, Korean government is focusing on new growth paradigm for future – low carbon growth. The government is prodding private sector to adopt more hi-tech energy efficient technologies.

Adaptability of the Korean Development Model

No development model can be entirely applicable in another situation, for every model has some elements that are country-specific or time-specific. The success of Korea economic model itself suggests that development may not necessarily come from outside. However, some development insights and experiences can be shared at any stage of development.

There are many elements in the Korean development model that are very much relevant to Bangladesh’s development efforts. The role of government as evident in the development model of Korea is the most relevant of all.

Indeed, in the wake of an ongoing global recession, the role of government in the economic life of its citizens is being reinvented. The emphasis on human resources development, the government’s lead role in building basic infrastructure, and favorable fiscal and monetary policies are some key elements that we can borrow from the Korean experience.

Bangladesh and the Korean Development Model

Bangladesh has almost similar underlying economic conditions that Korea had experienced in the 1960s: limited natural resources, population pressure, adverse land-man ratio, inadequate and underdeveloped infrastructure, and other constraints.

The first thing we can learn from the Korean development model is the importance of developing human resources. Bangladesh and Korea have already begun cooperation to develop human resources in Bangladesh. A number of ICT and technical training centers have been established in Bangladesh with the support of the Korea International Cooperation Agency (KOICA). Every year, our government sends officials and professionals to Korea to learn from the Korean way of development.

Belated though it may be, Bangladesh is by and large following the footsteps of Korea. Since the 1980s, Bangladesh has shifted its focus from import-substitution policy to export-led growth. This policy shift has already registered significant breakthrough in our export trade. Using the abundant labor force, Bangladesh has developed a large and competitive apparel and textile industry that accounted for export worth $12.5 billion in 2009.

While the government of Bangladesh will continue to spend a significant share of its budget on poverty alleviation, it is increasingly supporting the entrepreneurs and businessmen to achieve faster economic growth. Loan facilities have been expanded to encourage export-oriented industries. The government is now joining hands with private sector to leverage the effect of private fund and expertise through public-private partnership (PPP).

The government of Prime Minister Sheikh Hasina is giving high priority to meeting the growing demand for electricity by establishing many new power plants including a nuclear power plant. A massive drive to build basic infrastructure including construction of highways and bridges, expansion of existing port facilities and construction of a new deep seaport are well underway. We welcome leading Korean companies to join our efforts in developing infrastructure and investing in our key industrial sectors.

New Western Marine to build double hull tankers for local client

http://www.thedailystar.net/newDesign/news-details.php?nid=167183

New Western Marine to build double hull tankers for local client
Star Business Desk

Leading shipbuilder New Western Marine Shipbuilders laid keels of two double hull tankers for a local company to transport fuel oil across the country.

In September, the company signed a deal with Carbon Holdings and Coastal Gas Ltd to build two tankers for transporting fuel oil of Jamuna Oil Company through river routes.

Both the 64-metre tankers having a capacity of 1,350 tanker dead weight will be built under the supervision of international classification society Germanischer Lloyd (GL) and are expected to be delivered by September 2011.

The ceremony was held at New Western Marine’s shipyard at Kolagaon in Patiya where CF Zaman, country manager of GL, handed over keel-laying certificate to the shipyard and owners of the vessels, according to a statement released yesterday.

Bangladesh needs more tankers to transport oil through river routes to reduce traffic congestion on roads, said Sakhawat Hossain, managing director of New Western Marine.

These tankers will play a vital role in easing the power crisis in Bangladesh, as the tankers will be used to carry fuel safely and cost-effectively in various fuel generated production sites within the country, Hossain added.

Ezazur Rahman, managing director of Carbon Holdings, hoped the project will prove to be successful in future.

Mizanur Rahman, managing director of Jamuna Oil, said Western Marine should build more of such tankers to contribute to the economy.

Investment proposals mark big leap

http://www.thefinancialexpress-bd.com/more.php?news_id=120856&date=2010-12-24

Investment proposals mark big leap
Kamrun Nahar

New data show the number of investment proposals has shot up significantly in November, reflecting increased confidence in the country’s overall business climate, officials said.

The Board of Investment (BoI) said it received 165 investment proposals worth 190 billion taka in the penultimate month of the year, marking a 450 per cent increase over the planned investment amount of the previous month.

Officials said while most of the proposals may not bear fruits, it shows wider investors’ interest in the country’s infrastructure and manufacturing sectors such as power, garments, textile, pharmaceuticals and processed food.

“We can now say that local and foreign investors are more confident to invest here because of the government’s sincere efforts to improve infrastructure and business environment,” said a BoI official.

He said investors are convinced that government’s nine billion dollars investment programme in the power sector would cut crippling shortages. “Their morale got a boost after the government resumed electricity connections to new industrial ventures in October,” he added.

The BoI only keeps the data of registered investment proposals, but it does not track down whether the proposed investment eventually sees the day-light.

Of the proposals, 16 came from foreign and joint-venture investors, according to the BoI statistics. Most of these proposals contain sizeable investment amount and together they are worth 147 billion taka.

During the same month, local entrepreneurs planned to set up 149 industrial units with a total investment of 43 billion taka, which the investors said would create job opportunities for 30,442 people.

In October the BOI registered 154 investment proposals with investment worth 43 billion taka. The units would employ 42,523 people, the BoI said.

Officials said proposed investment from the foreign and joint-venture entrepreneurs in November show a 667 per cent increase from that of October.

Five foreign and 10 joint-venture proposals amounted to Tk 19.15 billion were registered in October.

Officials said foreign and joint-venture investors are mainly interested in the country’s fast-booming power and ICT sectors.

Economic growth likely to improve in FY’11: ADB

http://www.thefinancialexpress-bd.com/more.php?news_id=120838&date=2010-12-24

Economic growth likely to improve in FY’11: ADB
FE Report

The Asian Development Bank (ADB) has said Bangladesh’s economic growth is expected to improve in FY2011, if the trend of export growth observed so far can be sustained.

The country could grow at a higher rate, if the pressing infrastructure constraints in the power and energy, ports, and urban services sub-sectors are urgently removed and measures for enhancing labour productivity adopted,” said the ADB quarterly economic update, released Thursday.

Economic reforms, especially reforms in the trade regime, revenue mobilisation, and government development spending, and reduction of the cost of doing business, are essential for higher economic growth.

The Manila-based lender also said despite impacts of the global economic recession, Bangladesh attained reasonably a high 5.8 per cent GDP growth in FY2010, slightly higher than 5.7 per cent in FY2009.

“Although the late unfolding of the effects of the global crisis negatively affected Bangladesh’s exports and remittances in FY2010, a pickup in domestic demand neutralised the impact,” the donor said.

The ADB’s economic update during July-September ’10 said the better than expected growth was made possible by a boost in consumption, stimulated by credit expansion to the private sector and a rise in public sector wages.

In addition, robust growth in the agriculture sector along with satisfactory growth in the services sector more than compensated for the lower industry sector growth, the economic update said.

“Bangladesh needs to increase current investment to at least 30 per cent of GDP to attain the significantly higher economic growth needed to reduce the country’s massive poverty,” the ADB said.

The country’s current investment-GDP ratio shows a stagnating trend with an average of 24.5 per cent since FY2005. The investment-GDP ratio rose by 0.6 percentage points to 25 per cent in FY2010 from 24.4 per cent in FY2009.

The Manila-based lender said stagnation in investment stems from shortages of power, energy, and other infrastructure facilities; poor investment climate reflected in the higher cost of doing business; underperformance of complementary public investment because of slow implementation of the annual development program (ADP) and weak governance.

“These factors impinge on the efficiency and profitability of domestic and foreign investment. Underperformance in public investment is caused by the lengthy and inefficient project approval process and lack of implementation capacity of the concerned ministries,” it said.

The government has made progress in developing a regulatory framework for investment through public-private partnerships (PPP), the ADB said stressing on the need for operationalisation of the PPP office and start implementation of a few flagship projects.

After moderating at the beginning of FY2011 from the rising trend observed in the previous year, year-on-year inflation has been rising again, reaching 7.6 per cent in September 2010 up from 4.6 per cent in September 2009.

“The steady growth in money supply over the past years appears to be the key contributing factor for the rising inflationary trends,” the report said adding “The steady rise in inflation is a concern.”

In addition, the effects of natural calamities on crop production in large producing countries created volatility in food stocks in the international market, leading to supply disruptions and pushing up prices, the ADB said.

Agriculture sector grew by 4.7 per cent in FY2010 up from 4.1 per cent in FY2009. “Favorable weather conditions along with broad-based government support are the major contributing factors,” ADB said.

Industry sector growth was 6.0 per cent in FY2010 down from 6.5% per cent in FY2009. Growth in manufacturing was lower at 5.7 per cent compared with 6.7 per cent in FY2009.

In the first half of FY2010, lower industry sector growth, particularly related to exports, and compression of domestic demand due to slowdown in remittance inflows affected services sector growth, especially transport and financial services, the ADB said.

“However, several compensating factors such as higher agriculture growth, pick up in imports and continued expansion of telecommunications, health and education services aided satisfactory services sector growth,” the report said.

Growth in services sector slightly rose to 6.4 per cent in FY2010 from 6.3 per cent in FY2009.

The lender said Bangladesh’s tax-GDP ratio (9.3% in FY2010) is still one of the lowest among South Asian and other developing countries despite improved revenue collection in recent years.

The strong revenue performance is attributed to expansion of domestic economic activities, broadening of the tax base, better compliance aided by tax reforms and publicity campaign, and commitment of the NBR officials, the quarterly report said.

Trade deficit widened to $1.3 billion during July-September of 2010, up from $739 million during the year earlier period because of the higher growth in imports compared with the growth in exports, it said.

The bullish trend in major stock market indicators continues during FY2011. The index rose 129.2 per cent year-on-year in October 2010, reaching 7,710.8 points, because of the significant involvement of institutional participants and retail investors in daily transactions, the report said.

The combined capital and financial accounts recorded a deficit of $646 million against the surplus of $258 million during the year earlier period because of the large outflows on account of trade credit.

Consequently, the overall balance of payments turned into a deficit ($426 million) in July-September of 2010, sharply lower than the surplus of $1.3 billion during the corresponding period of 2009, the report said.

Bangladesh ranked among 30 countries for offshore services

http://www.theindependentbd.com/business/others/25391-bangladesh-ranked-among-30-countries-for-offshore-services.html

Bangladesh ranked among 30 countries for offshore services
Staff Reporter

DHAKA, DEC 23: Bangladesh has been ranked among the world’s top 30 emerging nations where IT services could be shifted in 2010-2011. Gartner Inc. the World’s leading information technology research and advisory company, has included Bangladesh for the first time along with 29 other top countries.

In its report, eight new countries have made their debut among the Top 30, reported online news portal WEBWIRE.

Eight new countries have moved into the Top 30 – five for the first time – Bangladesh, Bulgaria, Colombia, Mauritius and Peru – along with three re-entrants – Panama, Sri Lanka and Turkey.

“This year the Top 30 countries are exclusively emerging nations,” said Ian Marriott, research vice president at Gartner.

Marriott said many organizations that choose to shift IT services to lower-cost countries are daunted by the task of determining which country or countries would best host their operations.

“As the pace of change is slower in developed countries we have chosen to focus on those locations that are still maturing and developing, domestically and internationally,” the Gartner vice-president said.

Nine countries from Asia/Pacific were represented in the 30 leading countries, compared with 10 in previous years.  These included the leading country in offshore services – India – and the greatest challenger in terms of potential scale – China.

Emerging nations have placed significant emphasis on IT and business process services providing a vehicle for their economic growth, as many potential trading partners are moving from recession to tentative growth, Marriott said.

Bangladesh along with other countries in the region was rated “very good” for cost, with the exception of Malaysia, which was rated “good”.

Overall, the cost dimension for the Asia/Pacific region continues to offer an advantage over the Americans and EMEA.

In the remaining categories, however, the region is noticeably weaker. The political and economic environment remains a concern for many companies when moving work to offshore locations, and global and legal maturity is still an area of weakness for the region, with only India and Malaysia reaching a rating of “good”, Gartner said.

Bangladesh, China, India, Indonesia, Malaysia, the Philippines, Sri Lanka, Thailand and Vietnam are from Asia/Pacific region.  Argentina, Brazil, Chile, Colombia, Costa Rica, Mexico, Panama and Peru are from Americas.

Countries from Europe, the Middle East and Africa are Bulgaria, the Czech Republic, Egypt, Hungary, Mauritius, Morocco, Poland, Romania, Russia, Slovakia, South Africa, Turkey and Ukraine.

Bangladesh clothing show in London

http://www.theindependentbd.com/business/others/25375-bangladesh-clothing-show-in-london.html

Bangladesh clothing show in London
Economic reporter

Dhaka, Dec 23: The Bangladesh Clothing Industry is set to hold its first ever supplier exhibition at the heart of London, UK, at one of the most popular purpose built venues,  named Olympia 2, ground level, on Wednesday 23rd (10.00 am to 6.00 pm) and Thursday 24th (10.00am to 5.30pm) February 2011, says a press release. The Bangladesh Clothing Show is being jointly organised by GenX UK Limited and one of the recognized event organizer of Bangladesh, ALLIANT, in collaboration with the renowned business conglomerate of the country, KDS Group.

S M Shameem Iqbal, chairman, KDS Accessories Limited formally announced the launch of the event in Dhaka at a press launching event today amidst distinguished personalities of the sector and members of the press and media community.

The Bangladesh Clothing Show will showcase nearly 50 of the country’s most innovative and successful ladieswear, menswear, childrenswear and knitwear manufacturers, textile dyers, printers and finishers, buying houses, agents, apparel accessories, packaging and logistics providers.

The exhibition will allow fashion designers, buyers for retailers, brands, corporate clothing and mail order groups, wholesalers and relevant trade associations from the UK and Europe to see the extensive breadth and quality of product available from Bangladesh and discuss face-to-face their specific sourcing requirements.

In a message Malcolm Ball, President ASBCI, asserted “The ASBCI is the foremost trade association serving the textile and apparel retail supply chain in the UK, with key household named brands, retailers and fashion universities as members.  As such, we are delighted and honoured to be working with important organisations and suppliers from Bangladesh to showcase their wares and abilities to the retail buyers in London, at the upcoming Bangladesh Clothing Show.  We are looking forward to developing and improving working relationships across the supply chains for the benefit of all.”

Among others  Mahbubur Rahman, Director, GenX UK Limited, Rubaiyat Ahsan, CEO, ALLIANT, Mr. Debasis Daspal, CEO, Global Supply Chain Management, Mr. Al–Haj Habibur Rahman, 1st Vice President, BKMEA, Engr. Mr. Ahmed Ali, Vice President, BTMA, Mr. Prabir Kanti Das, Addl. Secretary, BGMEA, Mr. Qayum Reza Chowdhury, President, BGBA, and Mr. Asif Ibrahim, President Elect, DCCI were present at the press launching event.

Mobile user growth picks up again

http://www.newagebd.com/2010/dec/24/busi.html#1

Mobile user growth picks up again
Total subscribers reach 6.66cr in November
Aminul Islam

The growth in the number of mobile subscribers picked up again in November as the country’s six operators added 10.58 lakh new subscribers while the state-run Teletalk again went back to losing track.

The total number of active mobile subscribers increased to 66.62 million or 6.66 crore at the end of November from 65.56 million or around 6.56 crore in October, according to data released by Bangladesh Telecommunication Regulatory Commission on Thursday.

The number of active mobile subscribers increased by only 4.23 lakh in October, whereas the six operators netted 16.70 lakh subscribers in September, 16.30 lakh in August and 18.60 lakh in July.

The leading operator GrameenPhone, which lost 1.67 lakh subscribers in October, added 3.56 lakh subscribers in November to take its subscribers base to 2.88 crore in the month from 2.85 crore in October.

State-run Teletalk, which added 41,000 subscribers in October to take its subscriber base to 12.24 lakh, lost 20,000 subscribers in November.

The second largest operator, Banglalink, continued to be leader in netting subscribers for the second month by adding 4.35 lakh customers in November after it added 3.01 lakh customers in October.

The total number of Banglalink subscribers reached to 1.88 crore in November from 1.84 crore in October.

An official of the BTRC said that the calculation of the number of mobile subscribers was based on the connections that were active. ‘The number of connections, however, does not necessarily mean that the country had 6.66 crore mobile subscribers as many of the consumers, especially young people, use multiple SIMs,’ he said.

He said that the addition of subscribers was low in October because of Eid festival.

‘The number of subscriber increased in November as the mobile operators went for vigorous campaign or advertisement ahead of the entry of Indian Airtel in the Bangladesh market,’ he said adding that the mobile operators had started competition to lure subscribers by giving bonus talk times, SMS and mobile phones.

The Bharti-Airtel officially re-branded Warid telecom to Airtel on December 20 after the Indian company acquired 70 per cent stake of Warid a few months back.

Airtel, previously Warid, added 1.31 lakh subscribers in November with its total number of subscribers reaching 37.97 lakh from 36.66 lakh in October.

Robi, the third largest operator, added 2.14 lakh subscribers to take its subscriber base to 1.20 crore.

The lone CDMA operator, Citycell, however, lost 60,000 subscribers in November when its total number of clients reached to 18.73 lakh from 19.33 lakh in October.

BARI develops new HYV onion to increase production

http://www.bssnews.net/newsDetails.php?cat=4&id=151474&date=2010-12-23

BARI develops new HYV onion to increase production

MAGURA, Dec 23 (BSS)- Bangladesh Agricultural Research Institute (BARI) has developed a high Yielding variety (HYV) of onion to meet the requirement Of onion in the country.

BARI sources said the production rate of the newly developed variety BARI onion-5 is three times higher than that of the existing varieties of onion.

Earlier, BARI developed four high yielding varieties of onion and with the new one, the total number of varieties developed by BARI has stood at five.

Chief Scientific Officer of Regional centre of BARI Moniruzzaman told BSS that the newly invented BARI-Onion-5 could be cultivated in both summer and winter seasons.

A total of 9 lakh tonnes of onion are produced in the winter season against the demand of 16 lakh tonnes.

Moniruzzaman hoped that the BRRI Onion-5 would help meet the demand for onion in the country.

Exports shine

http://www.thedailystar.net/newDesign/news-details.php?nid=166991

Exports shine
Refayet Ullah Mirdha

The export trend indicates a brighter future in overseas trade, as the main export destinations are recovering fast from recession, said business leaders yesterday.

In the first five months of the current fiscal year, Bangladesh exported goods worth $8.27 billion, logging 35.80 percent growth, compared to the same period a year earlier, according to data from state-owned Export Promotion Bureau (EPB).

“The export trend is very bright. We expect the December exports will go even higher, as calculation of the export figures is going on,” said Jalal Ahmed, vice-chairman of the EPB.

Exports to Eurozone will increase significantly in January because of the implementation of the zero-tariff facility for Bangladesh by the European Union (EU), he said.

The EU has relaxed the rules of origin (RoO) under the generalised system of preferences for the least-developed countries such as Bangladesh for a greater access to Eurozone.

Ahmed also said some exporters are now delaying their shipments to cash in on the duty-free facility from January. “They will export at the end of December or in early January,” he said.

Md Musa Meah, president of Bangladesh Frozen Food Exporters Association, said frozen food exports are maintaining growth with the recovery of the western world from recession.

During the July-November period, the export of frozen food grew by 40.30 percent from the same period a year ago.

“The exports will go higher in March when the EU is scheduled to relax its strict nitrofuran test on shipments of shrimps out of Bangladesh,” Meah said.

SM Jahangir Hossain, president of Bangladesh Fruits, Vegetables and Allied Products Exporters Association, said the exports of vegetables and allied products showed signs of recovery.

“The prospect of vegetable export is bright,” Hossain said. But, he said the export of lemon to EU is held up for the last one and a half years for some test-related problems.

Bangladesh exported vegetables and allied products worth $23.89 million in the July-November period, registering a 28.03 percent growth.

Mohammad Hatem, acting president of Bangladesh Knitwear Manufacturers and Exporters Association, said the prospect of his sector is also good, as the buyers are now shifting their focus from China to Bangladesh.

Moreover, Bangladesh has started exporting garments to new destinations: Japan, South Africa, Latin American countries, Australia, New Zealand and China.

The country exported knitwear products worth $3.6 billion in the first five months of the current fiscal year, registering 36.56 percent growth compared to the same period a year ago.

Bangladesh exported woven garments worth $2.89 billion in the July-November period with a 35.83 percent growth.

Abdus Salam Murshedy, president of Bangladesh Garment Manufacturers and Exporters Association, said: “It’s not impossible to reach $20 billion garment exports in three years if the current export trend continues.”

The government will have to ensure adequate supply of gas and power and smooth operation of port, he added.

reefat@thedailystar.net

Nine-day Digital ICT Fair 2010 from Dec 29

http://www.theindependentbd.com/business/others/25192-nine-day-digital-ict-fair-2010-from-dec-29.html

Nine-day Digital ICT Fair 2010 from Dec 29
BSS

DHAKA, Dec 22: The Digital ICT Fair-2010, an annual gala exposition of computer and its accessories, begins at the Multiplan Computer City at Elephant Road in the city on December 29.

Multiplan Centre Shop Owners Association is arranging the nine-day fair with the slogan ‘Bangladesh in the Light of Technology’. In this connection, the association today held a view-exchange meeting with the journalists at its office at the Multiplan Computer City where different aspects of the fair were highlighted.

Speaking on the occasion, Tawfique Ehsan, convener of the fair, said State Minister for Science and Information and Communication Technology (ICT) Architect Yafesh Osman will inaugurate the fair, the biggest in Bangladesh.

“The fair has been arranged to make popular the use of computers throughout the country and spread its fruits to the grassroots level as well as build Digital Bangladesh, as envisioned by Prime Minister Sheikh Hasina, through ICT,” he said.

Tawfique said about 400 shops will be set up from the third floor to 10th floor on an area of about 100,000 sft, displaying different brands of computer and its accessories within the range of buyers’ capacity.

Both brand and cloned PCs, laptops, LCD monitor, mouse, keyboard, CD, speaker, DVD, CD ROM drive, calling card, internet card, mouse pad, pen drive, memory card, printer, scanner will be available at cost-effective prices, Tawfique said.

He said people could buy a complete multimedia PC at a minimum price comparison to other markets as the shops would give special discounts on various computers and accessories.

Besides computer products, Tawfique said, mobile phone and its accessories, MP3, MP4 and digital camera will be displayed at the show.

Monwar Hossain Talukdar Shyamol, convener of the media sub-committee, said they have arranged painting competition for children, debate, SMS and quiz competitions for students to give an otherwise look to the event.

Besides, there will be raffle draws and gaming zones and free internet browsing centers, seminar, symposium, free online ticket booking and internet browsing for the visitors side by side with showcasing latest computer and ICT products that are available in global market, he said.

Marketing Manager of Qubee Shovan Chakratbarty, Convenor of Event Management Committee Engineer Subrata Sarkar and Covenor of Security Sub-Committee Alhaj Nazrul Islam Hazari also spoke at the view-exchange meeting, among others.

The fair which will remain open for all from 10 am to 8 pm every day will continue till January 6.

The entry fee has been fixed at Tk 10 but the school students have free access to the fair, the organisers said.

They said Qubee, a WiMax service provider, is the Platinum Sponsor of the fair, while Samsung and Toshiba are its Gold Sponsor and Asus, Gateway, Norton and Hyer are the Silver Sponsors.

Satellite TV channel ATN Bangla will telecast the inaugural function of the fair live as the media partner, while Radio Today will provide live update in every hour during the fair, the organisers said.

Investment board goes online

http://www.thedailystar.net/newDesign/news-details.php?nid=166994

Investment board goes online
Star Business Report

The Board of Investment (BoI) yesterday introduced online registration system to help investors get their proposals approved faster and with less paper works.

With the web-based automation, the prospective investors will be able to complete registration within just a day compared to six days in the existing manual system.

Currently, the investors also need to go through 13 stages to get approval from the state-run agency, but in the new system they will face only three steps, officials said.

Industries Minister Dilip Barua inaugurated the web-based application at a ceremony at the BoI office in Dhaka.

“The system has been designed to reduce time and documentation burden on the investors, and to simplify the processing within the BoI,” said Shamsul Islam Chowdhury, director (communication) of the board, while making a presentation on the system.

He said, under the new system the investors will submit applications to the BoI for verification. After verifying, the state-run agency will give approval. “The system will increase transparency and accountability and enhance performance.”

The online platform will enable the investors to complete the entire registration process, including submitting an application, attaching documents, tracking status, providing interactive feedback and seeking approval, without visiting the BoI office or using an intermediary.

International Finance Corporation (IFC), a member of World Bank Group, is helping the board simplify the investment registration procedures for the local and foreign investors.

The online service is supported by Bangladesh Investment Climate Fund, which is managed by IFC in partnership with the United Kingdom’s Department for International Development and the European Union.

Dilip Barua said the initiative is a landmark improvement in creating a congenial environment for business in the country. “I hope it will help attract more investors from home and abroad. Once the system starts functioning, it will make the registration process faster than we can imagine.”

Ian Crosby, manager of IFC Advisory Services in Bangladesh, said: “Our support to the BoI’s new registration system is in line with our initiative to increase the ease of doing business for the local and foreign investors.”

He said Bangladesh has tremendous growth prospect in attracting investments, but the country lacks a simple window for wooing the investors. “There are a number of obstacles. But the online registration will definitely benefit the investors,” Crosby said.

Syed A Samad, executive chairman of BoI, said they have introduced the online system to improve the delivery system.

M Anis Ud Dowla, president of Metropolitan Chamber of Commerce and Industry, Dhaka, said the board has a big role in attracting the investors. A friendly BoI will benefit the investors much, he added.

Joint Stock Companies and Firms’ Registrar Ahmedur Rahim and Bangladesh Women Chamber of Commerce and Industry President Selima Ahmad also spoke.

M-banking to take a full shape soon

http://www.thedailystar.net/newDesign/news-details.php?nid=166998

M-banking to take a full shape soon
Star Business Report

Bangladesh will enter a full-fledged mobile banking network within the next three months, and the shift will be implemented within a bank-led model, the central bank governor said yesterday.

“The upcoming mobile banking has to be led by the banks,” Atiur Rahman said at a discussion at the National Press Club in Dhaka.

The model will ensure proper regulatory monitoring and transparency in the related transaction processes and help reach banking services to the grassroots, he said.

The discussion on ‘financial inclusion and impact of ICT’ was organised by NeoSTAR Alliance, an association of the students of American International University-Bangladesh.

“Already we have given licences to a number of banks towards that goal and a few banks have started their operations,” the governor said.

He called upon the telecom operators to give the banks access to their USSD (unstructured supplementary service data) networks soon so both the sectors can communicate with each other.

“The telecom operators will be encouraged to form partnership with the banks under the mobile banking system but they themselves will not be the bankers,” he added.

Chairman of the Parliamentary Standing Committee for the Ministry of Post and Telecommunications Hasanul Haq Inu stressed reducing the bandwidth price to less than Tk 10,000 to easily bring the rural people under connectivity.

He also emphasised collaboration between banks, telecom companies, regulators and content developers to build a strong domestic ICT base.

President of the Association of Mobile Telecom Operators of Bangladesh Zakiul Islam proposed a ‘hybrid model’ for the upcoming mobile banking where ‘both banks and mobile operators will have an equal role’.

Biogas for northern Bangladesh

http://www.thedailystar.net/newDesign/news-details.php?nid=166826

Biogas for northern Bangladesh

A generator lights up a poultry shed in the northern district of Rangpur. People in the region now opt for biogas to produce electricity.Photo: Rafique Sarker

Rafique Sarker, Rangpur

“Using the biogas, he runs a generator to light the poultry shed. The workers of the poultry farm cook food by lighting a fire by using the biogas”

Infrastructure Development Company Ltd (IDCOL), German Technical Co-operation (gtz) and Grameen Shakti have expedited activities to increase the number of biogas plants for renewable energy in the Northern region.

IDCOL, a government owned investment company, has fixed a target to set up 37,669 biogas plants in Bangladesh by 2012, under its National Domestic Biogas and Manure programme (NDBMP). It has also set a target to set up 25 percent of the total target of biogas plants in the northern region, which is yet to be brought under the national gas grid.

Nazmul Hoque Foysal, senior programme manager of IDCOL, said in a seminar recently, “We have achieved almost 60 percent of the target in the northern region. We hope we’ll fulfill the target in next two years.”

Both IDCOL and gtz, in collaboration with their partner organisations, are setting up the biogas plants in the eight northern districts.

Though Grameen Shakti is a partner of IDCOL, it has its own biogas programme.

Other partners of IDCOL, which are working under NDBMP, include Development of Poor (DOP) and Gram Bikash Kendra.

Foysal said Grameen Shakti is a major partner of IDCOL, which set up 1,652 biogas plants in the eight northern districts since 2006. Each of these plants is capable of producing 1.6 to 4.8 cubic metres of biogas.

The construction of a biogas plant that can produce 1.6 cubic metres to 4.8 cubic metres of biogas costs about Tk 25,000. IDCOL donates Tk 9,000 for each plant. The beneficiary spends 25 percent of the total cost. The partner NGO that helps with construction spends the rest of the money. As per contract, the beneficiary will have to refund the money taken from the NGO in instalments.

Grameen Shakti Rangpur Divisional Manager Delwar Hossain said Grameen Shakti targets to set up 100 biogas plants every month in the region.

“We set up 350 large biogas plants that are capable of producing 6 cubic metre to 30 cubic metres of biogas. This is Grameen Shakti’s own model. Grameen Shakti and the users themselves funded construction of the plants.”

There is a biogas plant constructed by Grameen Shakti at Parbotipur market, he said. Using biogas from the plant, Parbotopur municipality produces electricity that is being supplied to eight shops in the market.

Hossain said, “Wastage from the market, including blood from the slaughter houses and chicken litter, are damped in a chamber. These are used to produce biogas to operate the generators.”

Parbotipur Municipality Mayor Minhajul Islam said eight shopkeepers in the market do not have to worry about electricity as they can use biogas to run the generator continuously.

There are eight big biogas plants in Lalmonirhat district, each of which also produces 30 cubic metres of biogas. Generators using biogas from these plants are producing electricity, said Hossain.

Nurul Islam of Mohendranagar in Lalmonirhat sader upazila said he constructed 8 biogas plants by using the litter from his poultry farm that has 62,000 birds. Using the biogas, he runs a generator to light the poultry shed. The workers of the poultry farm cook food by lighting a fire by using the biogas, he added.

“I also have plans to set up more generators to produce electricity for a husking mill.”

Foysal of IDCOL said reduction of workloads, especially for women; improvement of health and sanitation conditions; increase in agriculture production with proper utilisation of slurry; employment generation; protection of conventional fuel sources; and reduction of green house emmision are also their objectives.

Programme Officer of gtz ANM Zobayer in the same seminar said, “gtz generally gives support for construction of big biogas plant. We are yet to construct any in the northern district but we have contacts with Kazi and Kazi of Thakurgaon to construct a big biogas plant.”

“The objective of the programme is to further develop and disseminate biogas plants with an ultimate goal to establish a sustainable and commercial biogas sector in Bangladesh.”

He said gtz, through its partner organisations, has been trying to increase the number of biogas plants of 6 cubic metres each since 2005 across Bangladesh.

gtz is giving training and technology support to its partner organisations to set up biogas plants for renewable energy.

Bangladeshi RMG show in London on Feb 23

http://www.thedailystar.net/newDesign/news-details.php?nid=166878

Bangladeshi RMG show in London on Feb 23
Star Business Report

A two-day show of Bangladeshi readymade garments will begin in London on February 23.

European buyers, retailers, wholesalers, fashion houses and leading brands will take part in the fair to be organised at Olympia 2 conference centre, the organisers said at a press conference at the Westin Dhaka yesterday.

Genx UK Ltd and Alliant will organise the fair styled Bangladesh Clothing Show.

Mahbubur Rahman, team leader of the fair, said the main objective of the exhibition is to promote the Bangladeshi RMG to the UK market.

Rahman expected around 60 Bangladeshi organisations to participate in the fair.

Representatives from different trade bodies were also present at the press meet.

Garment scraps head for Western living rooms at Christmas

http://www.thedailystar.net/newDesign/news-details.php?nid=166827

Garment scraps head for Western living rooms at Christmas

Photo: AFPAfp, Hatibandha, Bangladesh

Women make handloom rugs in a factory in Hatibandha. There are up to 600 large garment factories in Bangladesh — defined as a factory which employs over 1,000 people — out of a total 4,500 factories overall

Every year, Bangladesh’s garment sector produces billions of dollars worth of high-street clothes for major western brands — and generates mountains of fabric offcuts in the process.

While an informal recycling sector has sprung up to deal with the scraps of leftover jeans and T-shirts churned out by the country’s 4,500 garment factories, it produces only low-value products for domestic consumption.

But one Bangladeshi entrepreneur has found a new, more lucrative way of dealing with the estimated 100,000 tonnes of scrap fabric the garment sector produces each year: making rag-rugs for export.

“The rags produced by the garment factories are seen as worthless waste but I saw that they could be a way to build a business — then Kik picked up my products and everything started to take off,” Tauhid Bin Salam told AFP.

Tauhid set up his company, Classical Handmade Products Bangladesh, in 2008 and has now built it into a successful business with an annual turnover of 80 million taka (1.2 million dollars) and a workforce of 530, mostly women.

Tauhid’s first buyer, German company Kik Textilien, is one of Europe’s largest textile discounters with a presence in six European countries. It primarily sources its low-cost goods in China and Bangladesh.

His four factories are stretched across the impoverished north of Bangladesh, where non-agricultural work is scarce and his rag-rug factories provide a valuable source of jobs, especially for rural women.

Traditional garment waste processing units tend to be concentrated in Dhaka, where nearly 11,000 people are believed to work in the informal sector, recycling garment factory waste into cheap clothes for domestic sale.

Tauhid’s factories are now producing some 80,000 rugs a month, all of which are exported and sold in Germany, where Kik is preparing for the usual Christmas surge in sales at its stores.

“We are now planning to increase the volume of our orders and begin selling those rag-rugs in other European countries such as Austria and Slovenia,” Petra Katzenberger, Kik’s corporate social responsibility manager, told AFP.

The rugs have proved a big hit in Germany, as they are cheap, unique, handmade and environmentally-friendly, said Daniel Seidl from the Bangladesh German Chamber of Commerce and Industry.

“Nearly three percent of all Germans now own one of these rugs,” Seidl told AFP, adding that this was about two million people.

Tauhid uses only 100-percent cotton scraps from the best quality clothes to produce his rugs, saying that the company could easily expand as there is so much scrap waste to use up thanks to Bangladesh’s booming garment sector.

Fabric scraps are collected in huge bales from garment factories, taken to Tauhid’s factories where they are sorted into different colours and trimmed into long, thin strips of cloth.

These strips of cloth are then woven by hand into rugs using a traditional wooden hand loom, and while the size — 60 cm by 90 cm (about two feet by three feet) — is uniform, each rug’s pattern is unique.

“Every year, a large garment factory will produce enough scrap material to make one million rugs,” Tauhid said.

There are up to 600 large garment factories in Bangladesh — defined as a factory which employs over 1,000 people — out of a total 4,500 factories overall.