July - September 2016

A Quarterly Newsletter of ICC Bangladesh Volume 19 > Issue 75

Investment opportunities in Infrastructure Development Editor’s Note

Investment opportunities in Infrastructure Development

Bangladesh economy is moving on a stable path, despite external and internal challenges. With positive near-term macroeconomic outlook, declining inflation, rising reserve, contained fiscal deficit and stable public debt, which indicates brighter prospects. The country is among the top 12 developing countries, who achieved 6 plus percent growth in 2016. According to experts by any standards, Bangladesh economy is doing well and expected to achieve above 7% GDP this fiscal. The key challenges for Bangladesh in FY 16 were acceleration of private investments and The Executive Board the better use of public sector resources to implement important infrastructure. The decline in private investment/GDP ratio in FY16 gives rise to the concern about sustainability of the 7.0 per cent plus growth rate in the coming years. Private investment has remained President virtually stagnant at 22 per cent of GDP, with foreign direct investment (FDI) accounting Mahbubur Rahman for about 1.0 per cent of GDP, both being well short of their Seventh Five Year Plan (FYP) and Sixth FYP targets. However, infrastructure investment in the current fiscal is booming. Vice Presidents The government has given top priority to ten fast-track mega projects in the current FY Latifur Rahman budget and given Tk 187.27 billion fund allocations for eight out of total 10 fast-track Rokia Afzal Rahman mega-projects. The mega projects are the Padma bridge, Padma bridge rail connection, Metro rail, Sonadia Deep Sea Port, Rooppur nuclear power plant, Payra sea port, Rampal Thermal power plant, Matarbari power plant, LNG terminal, and Dohazari-Cox’s Bazar- Members Gundum rail line. Experts welcomed the government initiative and said it would speed up A. H. Aslam Sunny implementation of the priority projects. A. K. Azad During three months of the current FY many of the fast-track projects have attracted A. S. M. Quasem foreign investment. The Asian Development Bank announced $1.5 billion fund to build Aftab ul Islam a key train line from Dohazari in Chittagong to Cox's Bazar, in its largest investment in railways in the continent. ADB is funding this new railroad, which is part of the Trans-Asia Anwar-Ul-Alam Chowdhury (Parvez) Railway network, to improve Bangladesh's access to Myanmar and beyond. Kutubuddin Ahmed China Rail Group Limited has signed contract for Padma rail link, which is Tk 349.88 Mahbubul Alam billion. DP Rail a British company has proposed to invest $7.5 billion in the Dhaka- Md. Fazlul Hoque Payra seaport rail link project. The rail link between Dhaka and Payra is crucial, as the Md. Siddiqur Rahman government plans to build it as the main seaport of the country by 2022. Payra sits on the Mir Nasir Hossain Bay of Bengal and has all the potential to become an international seaport, but its road and rail links with Dhaka and other parts of the country are poor at the moment. R. Maksud Khan Barrister Rafique-ul Huq During last seven years $8 billion was invested in the power sector in public-private partnerships and another $13 billion are in the pipeline. The investment has resulted in Rupali Chowdhury access to electricity for nearly 80 percent of the population. “But still there are unlimited Sheikh Kabir Hossain opportunities of investment in the power sector, as we will need to generate some 24,000 Tapan Chowdhury MW power by 2021.“ Editor To achieve its goal of middle-income country status by 2021and to accelerate inclusive Ataur Rahman growth as well as reduce poverty and income inequality, the country will require a substantial increase in yearly investments from 29.0% of GDP in FY2015 to 34.4% of Secretary General GDP by FY2020. More than $11 billion in external resources will be needed for public Editorial Associate sector investment. For its strategic location Bangladesh has huge potential to attract more Syeda Shahnewaz Lotika foreign direct investment (FDI) as the central point of eastern part of South Asia, being a connector between South and East Asia. Senior Manager Bangladesh has also signed WTO Trade Facilitation Agreement, which is expected to allow Bangladesh to increase and diversify its export basket. The major three economy Contents of the region—China, Japan and India proposed to make huge investment, mainly in infrastructure development including energy. With the timely implementation of various ICC Bangladesh News 2 projects, Bangladesh will definitely be able to attract more FDIs in the very near future. Bangladesh Economy 13 In order to attract FDIs, the government agencies have to be more vibrant and proactive. Regional News 37 The recent merger of Board of Investment and Privatization Commission into one body ICC HQs News 46 – Bangladesh Investment Development Authority, in short called BIDA, hopefully will be WTO News 54 able long demanded “ONE STOP” service in real sense to attract FDI. July-September 2016 July-September 1 July-September 2016 July-September 2 ICC Bangladesh News Businesses condemned terrorist attack on 1 July in Dhaka Pays tribute to Faraaz Ayaaz Hossain for his values and principles etropolitan Chamber of Hossain and Waquer Hossain, could a game changer as the authorities MCommerce and Industry recite from the Quran, said freed and people woke up and got (MCCI) arranged a remembrance hostages. The brilliant student of united against terrorism. “We are meet in memory of those who lost Economics at Emory University in committed to this country…there is their lives in the terrorist attack at Atlanta, US, was given the choice no question of surrender,” he said, Holey Artisan Bakery in Dhaka on 1 of walking free. But he chose to stay referring to Faraaz.

MCCI President Syed Nasim Manzu ( centre) observing one minute silence along with US Ambassador Marcia Bernicat ( 7th from right), ICC Bangladesh President Mahbubur Rahman ( 6th from left), FBBCI President Matlub Ahmed ( 7th from left), Indian High Commissioner Harsh Vardhan Shringla ( 6th from right), European Union Ambassador Pierre Mayaudon (5th from right), British High Commissioner Alison Blake ( 3rd from right), Italian Embassy Charge d'affaires Giuseppe Semenza ( 2nd from right), Former FBCCI President A.K.Azad (4th from right), DCCI President Hossain Khaled( 5th from left), CCCI President Mahbubul Alam( 4th from left), FICCI President Rupali Chowdhury( 3rd from left), BTMA President Tapan Chowdhury( 2nd from left), MCCI Vice President Akhter Matin Chowdhury ( extreme left) and MCCI Secretary General Faruque Ahmed ( extreme right).

July. The event organized by MCCI with his friends -- Abinta Kabir, a Zaraif Ayaat Hossain, brother of in Dhaka on 10 August in memory of Bangladesh-born US citizen and also Faraaz, said, “I can proudly say, Faraaz Ayaaz Hossain, grand son of a student at Emory University, and standing here that Faraaz has outdone Transcom Group Chairman & ICC Tarishi Jain, an Indian student of the any ambition he ever dreamt of and Bangladesh Vice President Latifur University of California, Berkeley -- he has made an impact beyond any Rahman and the other victims of with whom he had gone to the café. success he wanted to achieve. “Today the July 1 Gulshan café attack. The For his choice, he paid with his life. his success, his significant impact on attackers killed 20 hostages, 17 of Bangladesh and beyond is not within them foreigners, and two police MCCI President Syed Nasim Manzur the confines of our world or a time. officers during the 12-hour siege. recalled all the great souls. “The final It will pass on with generations to In memory of Faraaz and the other question that we must all answer at c om e .” victims, all guests at the memorial the end is not who we were or what stood in silence for a minute. we were or how much did we have. The country's business community The final question is: what did we has urged foreign countries not Terrorists specifically targeteddo with our lives? Each one of the to put a red alert on Bangladesh, foreigners dining at the café. They victims was trying to do something assuring them that the government were looking for “infidels,” taking test with their lives in their own way,” he is doing everything to root out as to who could recite verses from the said. militancy and make it a safer place. holy Quran and who couldn't. Faraaz, “Bangladesh is now much safer than grandson of Latifur Rahman and Transcom Group Chairman Latifur it was before July 1,” said FBCCI Shahnaz Rahman and son of Simeen Rahman said the Gulshan attack was President Abdul Matlub Ahmad. July-September 2016 July-September 3 ICC Bangladesh News

The Bangladesh government has of the people of India, conveyed his should come forward to protect been making relentless efforts grateful thanks to the MCCI and militant and to establish secularity. to track down and try militants. other chambers for organizing the CCCI President Mahbubul Alam However, some countries still have memorial meeting. "I'll convey your urged all to work together to stop red alert that is hurting businesses condolences to the parents of Tarishi. such incident. FICCI President in Bangladesh, said Ahmad said. May she and the other victims of Rupali Chowdhury said “as a “We strongly urge them to kindly see the attack rest in peace," the Indian mother I can understand the mental that the Bangladesh government is envoy added. condition of Faraz’s Mom. She will doing its best…it [militant attacks] bear this sorrowfulness all of her life.” happens not only in Bangladesh but European Union (EU) Head of BTMA President Tapan Chowdhury in some other countries [too]”. Delegation Pierre Mayaudon said “those who are involved with said the EU was determined to Gulshan café massacre all of them US Ambassador Marcia Bernicat said must come under judicial.” they understood the concerns of the business community after the attacks Among others, Brithsh High in Gulshan and Sholakia. “I learned Commissioner to Bangladesh H.E. during my time in the private sector Ms Alison Blake; Italian Embassy that markets dislike uncertainty. Charge d'affaires Giuseppe Semenza However, the response to the current Former Ambassador Faruque situation requires input from all Ahmed, former MCCI President sectors of society, and the business Laila Rahman Kabir; Rokeya community plays an important Afzal Rahman; BGMEA President role.” Bernicat said she encouraged Siddiqur Rahman, BCI President the industry leaders, schools and A.K. Azad; one of the owners of communities to speak out and Holy Artisan Restaurant Ali Arslan condemn these acts of violence and were present the meeting. Former to oppose extremism. “The answer to Faraaz Ayaaz Hossain MCCI Vice President Nihad kabir the current uncertainty is not to shut conducted the programme. down business and to shut people remain engaged with Bangladesh. out,” she added. “By staying engaged and united, ICC Secretary General John we will teach them [militants] a Danilovich is his condolence Speaking on the occasion, Indian lesson,” he said, adding that the message to Mr. Latifur Rahman High Commissioner Shringla said EU's confidence to do business with wrote “ It was with profound sadness India looks forward to working Bangladesh remained unchanged. “I that I learned of the tragic passing with the Bangladesh government would argue for international unity. of your grandson, Faraaz Ayaaz in its efforts to defeat the forces of International unity can be in various Hossain. I have advised your fellow terrorism, and the ideologies of forms, including cooperation in Board members of this unspeakable fundamentalism and extremism. investigation,” he added. tragedy and we are all united in our "There can be no justification for grief for you and your family. These such senseless acts of violence (as ICC Bangladesh President Mahbubur violent acts are taking place with at cafe Holey Artisan), in the same Rahman, a close family friend of increasing frequency and they are way that there can be no good or bad Latifur Rahman recalled about his all the more devastating when they terrorists." He said that the terrorist recent trip to Moscow with the family directly involve our ICC family. attack in Dhaka on 1st July has left where Faraaz was his companion a deep and painful impact on many all the time. In a very emotionally The thoughts and prayers of the ICC of them gathered at the event and chocked voice Mahbubur Rahman global family are with you during for the families and friends of the said that it was difficult to believe that this extremely difficult time. victims of the attack, the loss has Fayaaz will leave in such a cruel way. been irreparable. One of the victims He described Fayaaz as the picture of ICC Saudi Arabia Chairman Yassin of the terrorist attack was a young Bangladesh and genuine believer of Al Suroor in his ,message to Mr. Indian national, Tarishi Jain. The Islam. His mom should be proud for Latifur Rahman said :” I am very Indian High Commissioner said her him, Mahbubur Rahman added. sorry to hear about the death of your death has been heavy on her family grandson as a result of the tragedy and all those who knew this young, DCCI President Hossain Khaled that took place in Dhaka. I would like cheerful individual full of potential said this is the first time Bangladesh to convey my sincere condolences to for the life ahead of her. He, on behalf faced such a situation. Now everyone you and your entire family. I share July-September 2016 July-September 4 ICC Bangladesh News my thoughts and prayers with your only a person of a certain faith would As Isam Vaid, Muslim religious life family during these difficult times. live. To the contrary, he believed adviser for Emory's Office of Spiritual I would express also my deepest in everyone’s right to live. He chose and Religious Life, sang a moving sympathy to the suffering brought to death to uphold this ideal. We want call to prayer, Emory President the entire Bangladesh community by to echo this message with Faraaz’s James Wagner lit a candle of hope, this tragic event.” mother. He has not only made his leading the way for a series of prayers mother and his family proud, but has for unity, comfort, strength, healing A commemorative garden was made all of us proud. Today Faraaz’s and peace from Emory and Oxford inaugurated on 15 July in Tunis, sacrifice and love is being lauded the students representing Buddhist, Tunisia. Five Muslim persons world over. Christian, Hindu, Jewish and Muslim have been honoured here for their faiths. sacrifice, courage and ideals. Faraaz Emory students Faraaz Ayaaz Hossain Ayaz Hossain is one of them. “We and Abinta Kabir were remembered At Oxford College, both Farraz salute you for setting an example for for the light they brought to campus and Kabir were widely recognized the world to follow. Faraaz, you have in their roles as “true servant leaders” for their campus leadership both always wanted to make me a proud at an interfaith vigil held on 7 July had served as chairs of the Student mother; today you have made me in Cannon Chapel. An overflow Activities Committee’s (SAC) the proudest mother in the whole crowd of Emory and Oxford College programming committee, tasked world,” wrote Simeen Hossain, the students, faculty, staff and University with planning a majority of the mother of Faraaz Ayaz Hossain. She leaders turned out for the hour-long college’s student social events. wrote this message to the Milan- vigil, which honored the lives of the based organization Garden of the 20 individuals killed in the terrorist Addressing their impact, Joseph Righteous Worldwide (GARIWO). attack in Dhaka. Kabir, 19, was a Moon, dean of campus life at Oxford rising sophomore at Emory’s Oxford College, read a letter from 2016 GARIWO Chairman Gabriele College from Miami, Florida. Oxford graduate Chase Jackson, Nissim wrote that a number of Italian who knew both students through his nationals were victims of a horrific Hossain, 20, a junior from Dhaka, work with the SAC. Acknowledging carnage at a Dhaka restaurant. was a fall 2015 graduate of Oxford the shock and heartbreak felt by Faraaz Hossain was there for dinner College who had begun studies at fellow students over the loss, Jackson at the time with friends Abinta and Goizueta Business School in January. recognized the extraordinary way Tarishi. The terrorists gave him Both were graduates of the American in which Kabir and Hossain had the chance to flee, but he could not International School of Dhaka “touched this community and accept such a Nazi mentality that (AISD). sparked so much light in our lives.” New office space for capacity building of ICC Bangladesh n order to enhance capacity of Bangladesh will provide IICC Bangladesh in providing 50% from its Reserve better services to its constituents, the Fund and the balance Executive Board of ICC Bangladesh 50% will be contributed decided to move its National by its Members. Secretariat to Gulshan Avenue and purchase a suitable office space The Agreement signing there. This was also endorsed by ICC Bangladesh the Members of ICC during the last President Mahbubur Annual Council Meeting (AGM) Rahman and the held on 30 March, 2016. owner Mr.Fahim Faruk Chowdhury As decided by the ICC Executive was attended by ICC Board, an Agreement was signed Bangladesh Vice on 9 August with the owner of President Rokia Afzal the property located at 5th Floor Rahman, Bangladesh measuring about 5,466 sft at “Rangs red Crescent Chairman FC Enclave”, Plot No.6/A, Road No. Hafiz A. Majumder, 32 (corner plot), Gulshan Avenue, ICE Technologies Dhaka. Of the total cost, ICC Limited Chairman New office space for ICC Bangladesh at Rangs FC Enclave Gulshan July-September 2016 July-September 5 ICC Bangladesh News

ICC Bangladesh President Mahbubur Rahman (sitting middle) signing the Deed of Agreement for purchase of the new office which were attended among othersby the owner Fahim Faruk Chowdhury (2nd from left), ICC Bangladesh Vice President Rokia Afzal Rahman ( 4th from right standing), Bangladesh red Crescent Chairman Hafiz A. Majumder ( extreme left sitting), ICC Bangladesh Executive Board Members A.K.Azad (second from right sitting), Rashed Maksud Khan ( extreme right standing) & Md.Fazlul Hoque (5ht from right standing) ICE Technologies Limited Chairman Mahbub Jamil (3rd from left standing), Green Delta Insurance Limited Managing Director Farzana Chowdhury (2nd from right standing) and ICC Bangladesh Secretary General Ataur Rahman (extreme right sitting). Mahbub Jamil, ICC Bangladesh Insurance Limited Managing others. In response to request from Executive Board Members Director Farzana Chowdhury and ICC Bangladesh Tk.40 million has A.K.Azad, Rashed Maksud Khan ICC Bangladesh Secretary General been contributed by the following & Md.Fazlul Hoque, Green Delta Ataur Rahman were present among Members:

Tk. 5.0 million by

Tk.2.5 million by the following :

Apex Footwear Limited

Evince Garments Group July-September 2016 July-September 6 ICC Bangladesh News

ICC Workshop on International Trade Finance held

day-long Workshop on Mr. Ataur Rahman, Secretary who is a Professor and Director AInternational Trade Finance General, ICC Bangladesh welcoming [Training] of BIBM; Mr. Mahmudur was held at Bangladesh Institute the participants mentioned about the Rahman, Senior Vice President of of Bank Management (BIBM) on ongoing programme for the bankers Islami Bank Bangladesh Ltd. and Mr. 6 August. Dr. Dr. Toufic Ahmad organized by ICC Bangladesh both ATM Nesarul Hoque, Sr. Assistant Choudhury, Director General, BIBM at home and abroad. He thanked Vice President of Mutual Trust Bank in his inaugural address said that Director General Dr.Chouhdury for Ltd. for accepting the invitation to banks being the largest financial attending the inaugural session and deliver lecture on various topics institutions around the world are for extending the all the support and related to the international trade playing the key role in promotion facilities of BIBM in organizing the finance at the Workshop. A total of international trade finance. In Workshop in BIBM. He also thanked of 202 participants from 40 banks the context of the on-going global Prof. Dr. Shah Md. Ahsan Habib attended the workshop. financial and economic crisis, banks and businesses need to take stringent measures to ensure that their sales transactions are watertight, he said.

Dr. Choudhury thanked the ICC Bangladesh for organizing the Workshop in BIBM and mentioned that BIBM would always be delighted to arrange such workshops jointly with ICC Bangladesh. The workshop, he hoped, will allow the participants to know about the application of various rules for international trade and discuss as well as get Dr. Toufic Ahmad Choudhury, Director General, BIBM delivering inaugural address. Also seen in the picture clarifications on different issues are: ICCB Secretary General Ataur Rahman (middle), Prof. Dr. Shah Md. Ahsan Habib, Professor and Director being faced by them in their day- to- [Training] of BIBM ( extreme left) and ATM Nesarul Hoque, Sr. Assistant Vice President of Mutual Trust Bank day operations. Ltd (extreme right). Meeting with UNDP Country Director s. Pauline Tamesis, Country UNDP in mapping of private Newage Textiles Ltd. Vice Chairman MDirector of UNDP called on companies and their corporate Asif Ibrahim, Chief Executive Officer ICC Bangladesh President Mahbubur social responsibility or relevant of BIAC Muhammad A. (Rumee) Rahman on 24 July. She was briefed development interventions. This Ali and ICC Bangladesh Secretary about ICC activities globally and also in Bangladesh by ICC Bangladesh President. The Country Director was informed about the Meeting of the Asia Pacific Business Forum to be held in Dhaka on 8-9 February 2017 jointly by ICC Bangladesh and UNESCAP under the patronage of the Ministry of Commerce, Government of Bangladesh. She assured all possible support of UNDP Bangladesh and also mentioned that she will assisting ICC Bangladesh in disseminating information to UNDP country offices in the Asia Pacific Region through the UNDP Regional; ICC Bangladesh President Mahbubur Rahman (2nd from right) is seen with Ms. Pauline Tamesis, Country Director Office in Bangkok. of UNDP (middle) during her visit to ICCB. Also seen in the picture are former DCCI President Asif Ibrahim (extreme left), Bangladesh International Arbitration Centre (BIAC) CEO Muhammad A. Rumee Ali (2nd from left) and ICCB Secretary General Ataur Rahman (extreme right). Ms. Pauline requested ICC Bangladesh to share information will be the basis of UNDP’s private General Ataur Rahman were also about member companies to help sector engagement strategy, she said. present. July-September 2016 July-September 7 ICC Bangladesh News

ICC Bangladesh Members received Exporters’ Excellence Award he Commerce Ministry and the the national export trophy-2013 compliance issues were considered TExport Promotion Bureau on 28 guidelines. The companies' export for the selection of the awardees. For August awarded the top exporters earnings, export growth, export fiscal 2011-12, 24 gold, 18 silver and during the FY 2011-12 and 2012-13 basket, access to new markets and nine bronze trophies were handed out. For the following year, 26 gold, 19 silver and 15 bronze trophies were given.

Prime Minister Sheikh Hasina urged businesspeople to explore new export destinations and new products to reduce overdependence on garments and a few markets. Had the global recession not taken place in 2008- 09 and the euro not gone through ICC Bangladesh Executive Board Member & Ha-Meem Group Managing Director AK Azad is receiving Export devaluation, Bangladesh would Trophy in Gold category from Her Execellency the Prime Minister Sheikh Hasina M.P. have earned more from exports, the

in recognition of their outstanding performance. Prime Minister Sheikh Hasina handed over the trophies and certificates to the exporters at Osmani Memorial Hall in Dhaka.

ICC Bangladesh Executive Board Members Board Messrs Kutubuddin Ahmed, AK Azad, Tapan Chowdhury and Mir Nasir Hossain received the

export awards. The awards were ICC Bangladesh Executive Board Member & Managing Director of Square Group Tapan Chowdhury is receiving given in 32 categories following a national export trophy from Her Excellency the Prime Minister, Sheikh Hasina, M.P.

Export thophies for fiscal 2011-12 Category Gold Silver Bronze Garment (women) Rifat Garments Ananta Apparels Sinha Industries Garment (knitwear) Square Fashions GMS Composite Knitting Four H Fashions All kinds of yarn Square Textiles Mosharaf Composite Textile Mills Viyellatex Spinning Textile fabrics Noman Weaving Mills Envoy Textile Paramount Textile Home and specialised Zaber & Zubair Fabrics Frozen foods Apex Foods Seamark (BD) Kuliarchar Sea Foods (Cox's Bazar) Raw jute Popular Jute Exchange FR Jute Trading Reja Jute Trading Jute goods Akij Jute Mills Janata Jute Mills Karim Jute Spinners Leather (crushed/finished) Apex Tannery SAF Industries Leather products Picard Bangladesh RMM Leather Industries Footwear (all) FB Footwear Al-Azmi Trade International Agricultural products (except tobacco) Agri Concern Farm Fresh Enterprise Pran Food Agro-processed foods (except tobacco) Pran Exports Pran Agro Flower and foliage Rajdhani Enterprise Capital Enterprise Handicraft Karupannya CORR the Jute works Plastic goods Bengal Plastics, Unit-3 Evan Bright Plastic Ceramic products RARR Ceramics Light engineering Uniglory Cycle Transworld Bicycle Other industrial goods Tanveer Polymer Industries Al-Habib Enterprise Phamaceutical products Beximco Pharma Computer software Service Engine Graphic People Garment under EPZ (knit and women) Universal Jeans Jeans 2000 Other products and services under EPZ Shasha Denims Packaging and accessories Montrims July-September 2016 July-September 8 ICC Bangladesh News

Prime Minister Hasina added. Commerce Minister Tofail Ahmed said Bangladesh has diversified both the export markets and products to reduce dependence on garment products and the limited number of export destinations. The Minister said the Government will increase the rate of cash incentives for export to new destinations. All markets except the US, the EU and Canada are considered new destinations by Bangladesh. Mr. ICCB Executive Board Member & Managing Director of Mir Group Mir Nasir Hossain is receiving a national Hedayetullah Al Mamoon, Senior Export Trophy from Her Excellency the Prime Minister, Sheikh M.P. Secretary, Ministry of Commerce and Prime Minister observed. “Seventy force. Bangladesh will be able to Mr. Tajul Islam Choudhury, Chairman three percent of the total population reach the export target of $60 billion of the Parliamentary Standing of Bangladesh is young. This is a big by 2021, of which $50 billion will be Committee on the Commerce workforce. We should exploit the contributed by the garment sector, Ministry, also spoke. opportunity of young workforce.” Said the Prime Minister.

The prime minister urged the businessmen to export more agricultural products and agro- processed foods as they have more value-addition for the country. On the growth of regional trade, she said Bangladesh's regional trade will soar once the four-nation Bangladesh, Bhutan, India and ICC Bangladesh Executive Board Member & Envoy Group Chairman Kutub Uddin Ahmed is receiving Export Nepal transit agreement comes to Trophy in Gold category from Her Execellency the Prime Minister Sheikh Hasina M.P.

Export thophies for fiscal 2012-13 Category Gold Silver Bronze Garment (women) Rifat Garments Ananta Apparels Apparel Gallery Garment (knitwear) GMS Composite Knitting Square Fashions Interstoff Apparels All kinds of yarn Kamal Yarn Badsha Textile Mosharaf Composite Textile Mills Textile fabrics Saad Saan Textile Mills Envoy Textile Talha Fabrics Home and specialised Zaber & Zubair Fabrics Unilliance Textiles Terry towel Noman Terry Towel Mills Frozen foods Apex Foods Seamark (BD) Jalalabad Frozen Foods Raw jute Popular Jute Exchange Reja Jute Trading Uttara Jute Traders Jute goods Akij Jute Mills Janata Jute Mills Sadat Jute Industries Leather (crushed/finished) Apex Tannery SAF Industries Bengla Leather Leather products Picard Bangladesh RMM Leather Industries ABC Footwear Footwear (all) FB Footwear Lalmai Footwear Footbed Footwear Agricultural products (except tobacco) Al-Azmi Trade Internal Monsur General Trading Company Alin Foods Trade Agro-processed foods (except tobacco) Pran Dairy Pran Agro Pran Food Flower and foliage Rajdhani Enterprise Capital Enterprise Handicraft Karupannya CORR the Jute works Helal & Brothers Plastic goods Bengal Plastics, Unit-3 Bengal Plastics RFL Plastics Ceramic products RARR Ceramics Electric & electronics goods BRB Cable Industries Other industrial goods Marine Safety System Phamaceutical products Square Phrma Computer software Graphic People Service Engine Garment under EPZ (knit and women) Universal Jeans Pacific Jeans Other products and services under EPZ Shasha Denims Packaging and accessories Montrims Zaber & Zubair Accessories Uniglory Paper & Packaging Other services sector Mir Telecom July-September 2016 July-September 9 ICC Bangladesh News

ICC Bangladesh Member Plummy Fashions received National Award on Environment 2016 CC Bangladesh Executive Board Agriculture was the only other of 92 which made it the Greenest IMembers and Plummy Fashions recipient of this year Environment factory in the world. Managing Director Md. Fazlul Award. Environment Minister Mr. Located in Fatullah, Naraynganj, Plummy Fashions Ltd has been built on 6 acres of land which is sensitively landscaped with a combination of award winning designed buildings and very big tranquil gardens. They have installed a class leading natural water management system re-cycling and re-using both rainwater and surface water.A natural lake located inside the factory premises not only ensures a balanced eco system, but a feeling of relaxation and tranquility. Plummy has installed CFC free ICCB Executive Board member & Plummy Fashions Limited Managing Director Mr. Md. Fazlul Hoque is receiving cooling systems, efficient water National Award on Environment 2016 from Her Excellency Prime Minister Sheikh Hasina M.P. fixtures, LED lighting, low energy Houqe received the National Anwar Hossain Monju was also plant minimizing the companies Award on Environment 2016 from present in the ceremony among carbon footprint, the largest solar Prime Minister Sheikh Hasina on others. Earlier in September 2015, energy plant in Bangladesh and the 31 July. This is the highest award Plummy Fashions also earned LEED factory has utilized a state of the in the country on environment. Platinum certificate from USGBC art skylight system to trap natural Bangladesh Institute of Nuclear with world record breaking score sunlight for lighting its facilities. 66th ICCB Executive Board Meeting held he 66th Meeting of the ICC office space for ICC Bangladesh at Rahman and the following six TBangladesh Executive Board was Gulshan. Board Members: A.K.Azad, Aftab ul held on 26 July at ICC Bangladesh Secretariat The Executive Board was informed by the ICC Bangladesh President about the holding of UNESCAP Asia Pacific Business Forum (APBF) and ESCAP Business Advisory Council Meetings in Dhaka on 7-9 February 2017.He said that Ministers/business leaders from all the ESCAP member countries and international agencies are expected to attend these meetings. ICCB Executive Board Meeting is in progress In this regard a Committee was formed by the Executive Board to The Executive Board Meeting islam, Kutubuddin Ahmed, Rashed ensure organizing this big event in presided over by ICC Bangladesh Maksud Khan, Tapan Chowdhury a befitting manner. The Executive President Mahbubur Rahman was and Sheikh Kabir Hossain. BIAC Board also discussed about raising attended by ICCB Vice Presidents CEO Muhammad A Rumee Ali also necessary fund for the purchase of Latifur Rahman & Rokia Afzal attended on invitation.

New Members of ICC Bangladesh The Executive Board of ICC Bangladesh during its meeting held on 26 July accepted the Membership of M/s. Green Textile Limited as a member of ICC Bangladesh under Corporate Category. July-September 2016 July-September 10 ICC Bangladesh News

ICC Bangladesh to host Asia Pacific Business Forum (APBF) 2017 Theme : Regional Integration to Achieve Sustainable Development Date : 8-9 February 2017, Dhaka, Bangladesh Asia-Pacific Business Forum 2017 will be jointly organized by the International Chamber of Commerce (ICC) Bang- ladesh and the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) at the Pan Pacific Sonargaon Hotel, Dhaka, Bangladesh, on 8-9 February 2017. The Forum will be held under the patronage of the Ministry of Commerce of the Government of Bangladesh. The theme of the 2017 Forum is Regional Integration to Achieve Sustainable Development as envisaged by the United Nations’ Sustainable Development Goals (SDGs). APBF The Asia-Pacific Business Forum (APBF) is the flagship regional business forum organized by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP). With its 53 Member States plus nine Associate Members, ranging from least developed and Pacific Island countries, to countries with emerging markets, ESCAP secretariat as well as ESCAP Business Advisory Council (EBAC) and Sustainable Business Network (ESBN) are the driving forces behind APBF. APBF’s mission is to provide the best platform for regional public-private sector dialogue on the role and needs of business in achieving inclusive, resilient and sustainable development. APBF was first launched in 2004 in Shanghai, where it attracted over 2,000 participants from business, government, academia and civil society from across the re- gion. Over the course of one decade, it has helped form a pan-Asian multi-stakeholder network, and has been hosted in various locations, such as Almaty, Bangkok, Colombo, Jakarta, Kuala Lumpur and Kunming. ESCAP The Economic and Social Commission for Asia and the Pacific (ESCAP), located in Bangkok, Thailand, is the regional development arm of the United Nations for the Asia-Pacific region. It was established in 1947 to encourage economic cooperation among its member states and is one of five regional commissions under the administrative direction of United Nations headquarters. Made up of 53 Member States plus 9 Associate Members, the region is home to 4.1 billion people, or two thirds of the world's population. This makes ESCAP the most comprehensive of the United Na- tions five regional commissions, and the largest United Nations body serving the Asia-Pacific region. ESCAP provides a forum for its member States that promotes regional cooperation and collective action, assisting countries in building and sustaining shared economic growth and social equity. Overall, ESCAP's norm setting and policy work ultimately impacts people's lives in a positive way by helping countries shape and implement a more bal- anced and inclusive development agenda for the region. Sustainable Development People concerned about sustainable development suggest that meeting the needs of the future depends on how well we balance social, economic, and environmental objectives--or needs--when making decisions today. Many of these objectives may seem to conflict with each other in the short term. For example, industrial growth might conflict with preserving natural resources. Yet, in the long term, responsible use of natural resources now will help ensure that there are resources available for sustained industrial growth far into the future. The 2030 Agenda for Sustainable Development in Asia-Pacific region would be elusive if there is inadequate pace in the regional economic cooperation and integration to accelerate economic structural diversification and promote job-generating growth. Regional integration as a process by which two or nation-states agree to co-operate and work closely together to achieve peace, stability and wealth would require a renewed commitment on the part of gov- ernments to economic diversification specifically in priority areas such as cross-border infrastructure in transport, energy and ICT, as well as for additional policy reforms to support market-driven trade and investment-led diversi- fication and integration. The question for business sector is how it could seize a valuable window of opportunity that now exists towards the SDGs to revisit its development trajectory, and to effectively implement the; and how govern- ments would establish the necessary enabling regulatory environment for this to catalyze such integration, and how to incentivize the business sector to harness the regional integration for the social, environmental, and economic imperative. Registration is open now July-September 2016 July-September 11 ICC Bangladesh News

Images from the Gallery

Islami Bank Bangladesh Limited Managing Director Mohammad Abdul Mannan (5th from left) handing over a cheque of Tk. 5.00 million to ICC Bangladesh President Mahbubur Rahman (8th from left) as its contribution to ICC Bangladesh for capacity building of the National Secretariat. ICCB Executive Board Members A.S.M. Quasem (4th from right), R.Maksud Khan, Md. Fazlul Hoque (2nd from right) & ICCB Secretary General Ataur Rahman (6th from right).

Green Delta Insurance Company Limited Managing Director and CEO Farzana Chowdhury handing over a cheque of Tk. 2.5 million to ICC Bangladesh President Mahbubur Rahman (6th from left) as its contribution to ICC Bangladesh for capacity building of the National Secretariat. ICCB Vice President Rokia Afzal Rahman (5th from left), ICCB Executive Board Member Aftab ul Islam (3rd from left), ICCB Secretary General Ataur Rahman (4th from left) also seen in the picture.

Pubali Bank Limited Deputy Managing Director Mr. Mohammad Ali handing over a cheque of Tk. 2.5 million to ICC Bangladesh Secretary General Ataur Rahman as its contribution to ICC Bangladesh for capacity building of the National Secretariat. Abu Habib Khairul Kabir General Manager (extreme left) also seen in the picture. July-September 2016 July-September 12 Bangladesh Economy ADB approved record fund for Bangladesh railroad he Asian Development Bank or about $2.28 billion. The first part be connected in the medium to Ton September 28 announced a of the railroad will be 102km from longer term. $1.5 billion fund to build a key train Dohazari to Cox's Bazar and cost line from Dohazari in Chittagong to $2.01 billion. Of the sum, the ADB Initially, this will be achieved by Cox's Bazar, in its largest investment will provide $1.5 billion, with the improved road connectivity, similar in railways in the continent. In a government footing the remaining to the BBIN agreements between statement, the ADB said the new cost. Bangladesh, Bhutan, India and railroad, which is part of the Trans- Nepal. The ADB will provide the amount Asia Railway network, will also in four parts, and another $1 The railway lines will be dual-gauge improve Bangladesh's access to million in technical assistance tracks such that they can be used Myanmar and beyond. to help Bangladesh Railway with by broad-gauge and metre-gauge safeguards, safety awareness and trains. The railway lines in Western By the Numbers procurement. The ADB is preparing Bangladesh and India are broad- Total Fund : $1.5b to partially finance the second phase gauge, whilst those in eastern

Four installments : $3oom, $400m, of the project as well, which involves Bangladesh, Myanmar and Southeast $500m and $300 through 2022 laying extension to Gundum at the Asia are predominately meter gauge.

All loans for 25 years with border with Myanmar as well as The ADB is also financing the 5-year grace period connection to the new deep-sea port conversion of the Dhaka-Chittagong

Interest rate for all except $90m of rst in Matarbari. section of the railway to dual gauge. tranche will be based on libor Apart from laying down the rail line, The railway will transform $90m in special funds will carry 2% interest rate nine stations between Dohazari and southeastern Bangladesh and the Cox's Bazar will be built, according immediate benefit of the planned to ADB. The stations will integrate The loan is the largest amount of Dohazari-Cox's Bazar railway will design features that are friendly to funding by any multilateral lender be to bring tourism and trade to the elderly, women, children and southeastern Bangladesh. At present, on a single project in Bangladesh, people with disabilities. The railway superseding World Bank's around 1.9 million tourists visit the that ADB is building will end at Cox's beautiful coastline and area around commitments, which were all below Bazar. From there, it will be possible $1 billion. The Trans-Asia Railway is Cox's Bazar every year even though and easy for passengers and freight travel there is fairly difficult. The an initiative led by the United Nations to move by road to the Myanmar government is keen to develop the Economic and Social Commission border and beyond to Southeast Asia region into a tourism hub, and the for Asia and the Pacific (UNESCAP) and East Asia. with the view to providing seamless railway is expected to boost tourism rail links between Asia and Europe to The new project will connect the by at least 5 percent annually. better connect people and markets. southeastern Bangladesh to the Tourism growth will provide massive Trans-Asia Railway network, which opportunities for local businesses. In The Government has already already provides a continuous addition, better connections from approved a project to lay a 129 railway connection from Bangladesh Cox's Bazar to the port at Chittagong kilometres of rail track from through to India, Pakistan, Iran and and to big markets and businesses in Dohazari in Chittagong to Gundum Turkey towards Europe. The missing Dhaka will make it easier for final near the Myanmar border via Cox's links between Bangladesh, Myanmar and intermediate goods to move Bazar at a cost of Tk 18,034 crore and Southeast Asian countries will more easily. ADB come up with $275m to help upgrade Dhaka's water supply he Asian Development Bank July 18. Mohammad Mejbahuddin, rising rapidly,” said Country Director Thas come up with $275 million Senior Secretary of the ERD, and Higuchi in a statement. He said the in fresh loans for Bangladesh to help Kazuhiko Higuchi, ADB country project would help more than seven improve and expand the water supply director for Bangladesh, signed the million people in Dhaka to get access system in Dhaka. ADB and the deal. to safe, regular and affordable water government of Bangladesh signed services. Earlier, the ADB provided the loan agreement at the Economic “Dhaka city is expanding fast, and the Dhaka Water Supply & Sewerage Relations Division in Dhaka on the demand for safe drinking water is Authority with $400 million for July-September 2016 July-September 13 Bangladesh Economy

improving the water supply system The new project is targeting 24- conservation. Dhaka's demand for in the capital but physical water hour piped water supplies to an water is projected to rise to around losses still need to be reduced to additional 6.5 million people in the 2,616 million litres a day in 2020, further improve service delivery in new district metered areas by 2022. from 2,144 million litres a day in many areas. Non-revenue water losses will be 2015. cut to below 10 percent from the The new ADB assistance under current approximate rate of around Although the supply authority is the Dhaka Water Supply Network 30 percent. A range of actions will be taking steps to expand capacity with Improvement Project will be used taken to boost the capacity of the staff the ADB's help, it will not be enough to rehabilitate water distribution to manage and operate the network to meet projected needs without a pipelines and set up new district effectively. Training will be provided substantial cut in ongoing losses, metered areas. About 5,000 new to about 700 staff members, with 30 according to the ADB. Climate percent of them being women. and legalised connections will change, including rising sea levels be established in low income Assistance will also be given to help that could increase salinisation of communities, and 229,000 Dhaka WASA prepare an operational ground and surface water, is also connections will be upgraded for and financial improvement plan and expected to reduce available potable households and communities. to increase public awareness of water water. Revised Bangladesh GDP growth rate at 7.1pc for FY16 : ADB he Asian Development Bank depending on some prerequisites like Industrial growth is projected to Testimated Bangladesh's sustained improvement in private edge up to 10.2 percent on sustained economic growth at 7.1 percent investment, timely implementation strong domestic demand and some for fiscal 2015-16, which is higher of key infrastructure projects, and improvement in power supply and than the government's estimate. continued political stability. Bangladesh Bureau of Statistics easing of transport bottlenecks. The forecast the country's economic The report said agriculture growth services sector's growth is likely growth at 7.05 percent for the year, in fiscal 2016-17 is expected to to be lower at 6.3 percent on more while the previous estimate of the be moderate to 2.4 percent as low moderate expansion in agriculture, ADB was 6.7 percent. domestic rice prices discourage trade, transport, and public “Growth in fiscal 2016 exceeded farmers' expansion of crop area. administration. expectations, aided by revived exports and sustained domestic GDP Growth in %, South Asia consumption,” the ADB said in its Asian Development Outlook 2016 2015 2016 2017 Update released on September 27. Consumption continued to be the South Asia mainstay of growth as higher public sector salaries offset a decline in Afghanistan remittances, the Report said. Bangladesh Despite some statistical discrepancy, net exports are likely to have Bhutan contributed to growth, ADB said. However, for the current fiscal year India the ADB forecasts the country's gross domestic product growth at Maldives 6.9 percent, similar to its previous prediction. The government's Nepal forecast of GDP growth for the current year is 7.2 percent. Pakistan “For meeting the growth target of Sri Lanka the seventh five-year plan, timely completion of priority infrastructure 0 2468 projects is essential,” the update said. However, the GDP growth forecast is Source : Asian Development outlook database July-September 2016 July-September 14 Bangladesh Economy

According to the Report sectors, providing impetus to wholesale and retail traders into consumption growth is expected to business activity, the ADB said. The the tax net. The revised forecast for pick up, supported by higher public development of special economic export growth is 7 percent in fiscal and private sector salaries as well as zones, including some run by 2017, reflecting slower growth than continued ready access to consumer the private sector, further builds projected in Asian Development credit. While remittances are momentum for private investment. Outlook 2016 in the US and the euro unlikely to pick up in the near future, The budget of fiscal 2017 aims to area, the main textile markets. The healthy export and employment raise revenue equal to 12.4 percent import bill is revised to grow at 8 growth is expected with continued of GDP for financing a larger percent in fiscal 2017. The revision demand for the low-end garments annual development programme. takes into account modest import and fast fashion products exported Current spending will grow to 9.6 expansion in fiscal 2016 when higher from Bangladesh. percent of GDP with an increase in domestic production partly replaced public sector salaries and modestly imports. An upturn in private investment larger subsidies directed mainly to is expected to begin in fiscal 2017 agriculture and social welfare. Imports of capital machinery are with the predicted continuation of expected to pick up on higher political stability. A major catalyst The implementation of the new VAT investment, while a rebound in is the completion of public sector law, which had been scheduled for demand for raw materials and a energy and transport projects that July 2016, was deferred until July 2017 projected increase in oil prices reduce the cost of doing business. The to allow more time for the private were also taken into account. With new Dhaka–Chittagong and Dhaka– sector to adapt their accounting the low oil price environment Mymensingh four-lane highways systems and for greater outreach and continuing, remittance inflows are commissioned in July 2016 will save education to small business. New likely to decline by 3 percent in fiscal time, cut transportation costs, and revenue enhancing tax measures 2017. The imposition by Kuwait, ensure more timely shipments. in fiscal 2017 budget included Oman, and Saudi Arabia of taxes on raising rates on net wealth tax, remittances will further discourage Moreover, the government has fast- enhancing the minimum corporate them. Nonetheless, the current tracked several large infrastructure tax, and broadening the base of the account is expected to show a surplus projects in the energy and transport existing value added tax by bringing of 1 percent of GDP in fiscal 2017. Bangladesh Investment Development Authority starts journey to boost investment angladesh Investment in the private sector; there will be a certain area as industrial zone BDevelopment Authority (BIDA) foreign trade liaison branch offices as through gazette notification. started its journey on 1 September, well. Meanwhile, investment in a bid to rejuvenate the country's proposals under Bangladesh stagnant investment scenario. The Export Processing Zones new body has been formed by Authority, Bangladesh merging the Board of Investment Economic Zones Authority, and the Privatization Commission, private EPZ, Bangladesh as per the Bangladesh Investment Small and Cottage Industries Development Authority Act 2016 Corporation, and hi-tech passed in parliament in July. parks will remain outside BIDA's purview. Kazi Aminul Islam, former Secretary to the Prime Minister's Office, has The BIDA can privatize loss- been appointed as the Executive making state-owned enterprises It will also help the authorities Chairman of BIDA. A 17-member worth up to Tk 1000 million, but if concerned in land acquisition, Governing Board will be formed the value is more it will be sent to work for ensuring efficient use of for BIDA with Prime Minister as the cabinet committee on economic land, make list of unused land and the Chairman, Finance Minister as affairs for approval. A cabinet division structures and frame a policy for its the Vice Chairman and concerned official said the government wants utilisation, and frame a guideline Ministers as Members. Besides, there to ensure more efficient utilization for allotting and transferring plots. would be a six-member executive of unused lands and industries In 1993, the Privatisation Board was committee. under the public sector. BIDA will formed for privatising the public BIDA will conduct registration of determine import settlement, issue sector loss-making enterprises and the industrial units to be set up no-objection certificates, and declare later in 2000 it was turned into a July-September 2016 July-September 15 Bangladesh Economy

commission. The BoI was formed goal, due to which the government 14-storey new office building on way. in 1999 to attract local and foreign decided to merge them into one. Until the office is ready, the staff of investment. Both the institutions BIDA will be based at Agargaon in the two former institutions will work failed to achieve their expected the capital, with the construction of a in their former office premises. WB gives $200m to help improve health systems, living standards he government on June 20 particular, the financing will enable improve the living conditions Tsigned two financing agreements the poor access better health of the urban poor in selected worth $200 million with the World services.” “With about half a million municipalities, the WB said. Bank to improve health systems and new people arriving in the cities delivery of health services and the every year, the urban infrastructure, Around 40,000 low-income urban living standards of the urban poor particularly housing is under residents will have access to housing in selected municipality areas. The loans, while another 120,000 people $150 million additional financing will benefit from the improved roads to the Health Sector Development and drainage, it said. “Bangladesh Programme will continue to support has made remarkable progress in the government to mitigate health reducing poverty and accelerating sector challenges, the multilateral economic growth in the last decade,” lender said in a statement. said Kazi Shofiqul Azam, additional secretary of the Economic Relations The programme will also help Division. in sustaining and improving immunization coverage; further “To achieve its vision of reaching improving deliveries for pregnant middle-income status by 2021, the women at public health facilities; immense pressure. The Low Income country is focusing on key priority tackling multi-drug resistant Community Housing Support areas including improving health tuberculosis and strengthening project will take an innovative care and health systems as well as the health systems. “These two financings approach to address housing issues living conditions of the urban poor.” will help Bangladesh improve the among the urban poor.” The agreements were signed by lives and living standards of its Azam and Hussain at the Economic population,” said Zahid Hussain, In Bangladesh, around 62 percent Relations Division. acting World Bank country director of the urban population lives in for Bangladesh. slums, which is one of the highest The credits from the World Bank's percentages in Asia, according to International Development The additional financing for the statement. The $50 million Association, its grant to low-interest the Health Sector Development Low Income Community Housing loan arm, have a 38-year term, Programme will contribute to Support Project will pilot a including a six-year grace period, building a healthy nation, in community driven approach to and a service charge of 0.75 percent. $120m from WB for infrastructure he World Bank (WB) will provide The Ministry of Commerce will reduce time and cost in regional TBangladesh with $120 million implement the project on Bangladesh trade. It will also improve the capacity in technical and financial support side. Earlier four countries of traders by providing necessary under a project for development of Bangladesh, Bhutan, India and support and services to them," Mr infrastructure in the bordering areas Nepal (BBIN) had signed a deal to Fan said. "It will of course support the to increase regional connectivity facilitate regional trade and develop government's overall coordination and trade under the BBIN initiative. connectivity to foster growth. The for regional integration, and also Commerce Minister Tofail Ahmed project will promote investment aid the national trade and transport said this after an exchange of views to improve a couple of land-ports facilitation committee." meeting with a WB delegation led by under the Ministry of Shipping, and WB Country Director Qimiao Fan, will also support National Board of "Through this project, we can help at his secretariat office on August 09. Revenue to set up a single window Bangladesh enhance its regional for trade, which will connect the integration through trade, transport, Primarily, the Bangladesh Regional ministries concerned. power trade as well as in other Connectivity Project-1 will be aspects." Fan said. "Bangladesh is implemented involving Taka 10 "The project having a number of an important partner for the WB. billion. components will help Bangladesh Now we have a total investment July-September 2016 July-September 16 Bangladesh Economy commitment of about $10 billion for we are financing projects in a wide development, particularly in ensuring the country with about more than 40 range of areas that the government gender equality in education. I think projects," he added. sees as priority. We bring not only this is one of the very impressive funds but also experience from other stories of Bangladesh's development." He also said Bangladesh government countries," the WB country director Bangladesh will have to face a has been implementing a number said. number of challenges to be a middle- of projects in many areas like income country in a few years. The education, health, social protection, "Bangladesh has also made country has been facing challenges agriculture, rural development, and tremendous progress in terms of in infrastructure, particularly in water resource management etc. "So, poverty reduction and human energy, he mentioned. Bangladesh and Russia signed $11.38b loan for nuclear power plant ussia and Bangladesh on 26 for the 2,400 MW RNPP," Minister capacity will come into operation RJuly 26 an $ 11.38 billion loan for Science and Technology Yafes on 22 October 2024 while the final agreement, paving the way for the Osman said. takeover will be on 17 October 2025. main construction work of Rooppur Nuclear Power Project. The inter- Although the then East Pakistan To ensure security and physical governmental loan agreement was initiated the nuclear power project in protection for the mega project, signed in Moscow, according to the the 60s but it was in deep fridge for the national committee has formed Daily Star published on July 27. The more than five decades. The present a composite unit of the plant in Russian loan covers 90 percent of the government has taken up the fresh consultation with the Russian side project cost and carries an interest move to build the Rooppur Nuclear since there is a binding for following rate of LIBOR plus 1.75 percent. Power Project (RNPP) in 2010. the guidelines of the International The interest rate will not exceed 4 Atomic Energy Authority (IAEA). Quoting his Russian counterpart, percent. The repayment period is 30 Osman said, "In his speech (Russian Meanwhile, Bangladesh agreed to years, including a grace period of 10 minister concerned) he said that take the new version of VVER -1200 years. Disbursement will begin in Rooppur project is not a business technology (which has not been 2017. project rather a 'goodwill' gesture tested outside Russia). It however Deputy Minister for Finance of for them, the Russian Federation Sergei which was Anatolyevich Storchak and Mr. deeply rooted Mohammad Mejbahuddin, Senior between the Secretary of the Economic Relations two countries Department of Bangladesh, signed since the War the agreement. Speaking at the of Liberation.” event, Vladimir Sabushkin, senior This is the single vice-president of ASE Group of largest credit Companies, the general contractor in the history of the project said: “Now we have of Bangladesh both the legal and financial base for for a particular implementing the Rooppur nuclear project. power project.” As per the "This is a US$12.65 billion project agreement, the first unit of the plant complies with the IAEA standards (equivalent to Tk 101,200 crore). having power generation capacity and is an evolutionary version of Of the amount, Russia will give of 1,200 MW will be commissioned India's Kudankulum nuclear plant, US$11.38 billion (excluding US$550 on 19 October 2023 while the final to which the 'water cooling' was million for the feasibility study of takeover will be on 13 October 2024. added. This is considered to be the RNPP). However, Bangladesh will However, the second unit of the plant safest nuclear power technology with have to arrange US$ 1.27 billion having the same power generation active and passive safety systems. China clinches biggest 215 km rail through Padma Brigde angladesh Railway (BR) signed route from Dhaka to Jessore through Group Limited (CREC) Zhang Xuecai Bon 8 August the biggest contract the Padma Bridge. Director-General signed the commercial agreement in its history with a Chinese company of BR Amzad Hossain and Deputy at a ceremony at Rail Bhaban in to construct a 215-kilometre rail General Manager of China Rail the presence of representatives July-September 2016 July-September 17 Bangladesh Economy

from both sides. Railway Minister loan at an interest rate of 2.0 per cars as well as track- maintenance Md Mazibul Hoque witnessed the cent for 20 years and the CREC will equipment. signing of the deal. receive the amount as contractor. The government of Bangladesh will Speaking on the occasion, the Present among others were Railway pay the tax and VAT worth Tk 29.03 Railway Minister termed the signing Secretary Firoz Salah Uddin, Chinese billion on behalf of the contractor. significant for the development of Bangladesh Railway and hoped that the CREC would take all-out efforts to complete the project in time for allowing train movement over the Padma bridge on the day of inauguration in 2018.

"We would also hope that CREC would maintain international standards and quality in establishing the new rail link for its importance in both local level and regional connectivity," the Minister said.

The Chinese Ambassador assured the Ambassador H.E. Mr.Ma Mingqiang, According to the contract, CREC Chinese government's cooperation Chairman of CREC Li Changjin, will construct total 215.22-kilometre in implementing the Padma bridge Chief Coordinator of Construction tracks including 43.22km loops rail link project in time and said Supervision Consultant of Padma and sidings, 66 major bridges, 244 with the completion of the project Multipurpose Bridge project Abu minor bridges, culverts and road "a change in the livelihood in the Syeed Mohammad Masud and underpasses, 30 level crossings, southwestern region is expected". Additional Secretary of Economic 14 new stations and renovate six According to the Rail ministry Relations Division Asif Uz Zaman. existing stations and yards. Besides, official by 2018, construction of rail the Chinese company will construct tracks from Bhanga to Mawa will be Of the total project cost of Tk 349.88 21.85km viaducts and1.5km ramps completed to start rail movement billion, the Chinese government and supply 196 BG passenger through the Padma Bridge on the will provide Tk 247.49 billion in coaches, AC and non-AC chair day of inauguration. Chinese firm gets contract to build oil pipeline project to set up a pipeline to A high official of Eastern Refinery Acarry oil from tankers in the Ltd said the project first proposed Escalation of Bay of Bengal to storage plants on to build a single pipeline, but it was Project cost the mainland after a six-year delay later changed to a double pipeline. the cabinet committee on economic The first project design was faulty Initial cost: affairs on 31 August gave the go- and hence, a German consultant firm $159m ahead to China Petroleum Pipeline changed it, he added. (Approved by Ecnec in May 2010) Bureau under a government-to- The cost went up due to changes government deal to install the Cost at 2nd revision: in the design and extension of the pipeline. $327m timeframe, according to the official. The cost of the project now stands (Estimated by a consultant at Tk 5,426 crore or $694 million, Under the project, the Single Point in Dec 2013) with China's Exim Bank giving Mooring installation will be built in $550.4 million in low-cost loans. It the Sonadia Island area at deep sea, Cost at 3rd revision: is expected to be completed by 2018. where large oil tankers will anchor. $633m When the project was first approved As per the latest project design, one (Approved by Ecnec in Dec 2015) by the Executive Committee of the large 36-inch pipeline will be built National Economic Council in 2010, there to pump the oil to a storage Cost at 4th revision: the cost was estimated at $159 million plant 32km away on the Matarbari $694m and was set to be implemented by Island in Maheshkhali. Earlier, the (Approved by PM in Aug 2016) 2012. length was 16km. July-September 2016 July-September 18 Bangladesh Economy

There will be another 18-inch Other than time and cost, a lot of oil would be recovered in five to six pipeline that will be 188km long, is systematically stolen during the years. which was 94km long previously. process as well. One pipeline will pump crude oil It may be mentioned that the Islamic With the installation of the pipeline, and the other diesel. At present, Development Bank was initially it will take just two days to empty expected to finance the project, but large tankers anchor at deep sea and a vessel carrying such a volume of as the cost shot up, it withdrew. Later, smaller ships unload and bring the oil. This would cut cost and stop the oil to Eastern Refinery in Chittagong. pilferage, the official said. According the Chinese government expressed The process called lightering is an to ministry estimates, the pipeline its interest to finance the project expensive operation and takes 11 will save the government Tk 10,000 and nominated China Petroleum days to unload 00,000 tonnes of oil. million a year and the project cost Pipeline Bureau for the job. Bangladesh on elevated growth path: Citi angladesh has managed to set “Good domestic harvests, low that existing preferential terms are Bgrowth on a higher trajectory, international commodity prices maintained as the UK is one of the posting 7.05 percent economic and political stability helped keep major RMG export destinations for growth in fiscal 2015-16, on the back inflation manageable,” it said, citing Bangladesh.” of a surge in both private and public that food inflation dipped to 4.92 investment as well as an increase in percent from 6.68 percent last fiscal Import settlement during July-May consumption expenditures, reported year. last fiscal year grew marginally by Citi Bank in its half-yearly market 4.23 percent to $36.66 billion from update. Higher implementation of However, Citi said non-food $35.17 billion in fiscal 2015. “The the annual development programme, inflation surged to 7.45 percent from sluggishness is primarily due to higher consumption driven by a new 5.99 percent during the same period. continued low oil prices and a fall in pay-scale for public sector employees “The lagged impact of the new pay- food imports,” Citi said. and moderate inflation helped boost scale for government employees and In the first 11 months of the last the GDP growth. an upward adjustment of gas and electricity prices drove the non-food fiscal year, food grain and petroleum The manufacturing sector grew the inflation higher. However, a cut in imports dropped by 26.34 percent most by 10.1 percent followed by the fuel prices in April helped limit non- and 28.9 percent respectively. During services sector and agriculture, which food inflation during May and June.” this period, capital machinery grew 6.7 percent and 2.6 percent imports grew 12.87 percent, against respectively in the last fiscal year, Citi 20.76 percent in the previous fiscal said on 27 July. Referring to the 7.2 year, while industrial raw material percent GDP growth target for fiscal imports increased 2.61 percent 2016-17, Citi said it is imperative to against 3.52 percent a year earlier. reap the benefits of the favourable The trade deficit shrank by 12.14 demographic characteristics of a Exports posted a healthy 9.72 percent large working population to achieve growth last fiscal year to reach $34.24 percent to $5.52 billion in fiscal 2016 sustainable growth and investment. billion, mainly driven by the 10.21 from $6.28 billion in the previous percent growth in apparel exports. year, as export growth outpaced The investment-GDP ratio has Improvements in workers' safety import growth. The current account been set at 34.4 percent, up from an standards and gradual migration balance grew to $2.96 billion from existing 29.38 percent, to support to manufacturing of high-value $1.99 billion over the same period. growth this fiscal year, Citi said. apparel helped boost exports, Citi A higher current account surplus Given the importance of private said. “While the growth in RMG and an uptick in foreign direct investment growth in achieving the is commendable, it is also a cause investment helped grow the balance target, the government has planned of concern from a diversification of payments surplus to $5.06 billion on speeding up public investment on aspect, as it accounted for over 82 from $4.37 billion last fiscal year. infrastructure through its fast track percent of the earnings.” projects. Referring to the government's Exports to the US, the biggest single plan to set up 100 economic It said average inflation slid to market for Bangladesh, were resilient zones, Citi said in order to achieve a 12-year low at 5.92 percent in despite suspension of the generalised sustainable export growth, ensuring fiscal 2016 on the back of low food system of preferences. “Given the infrastructural support and a sound inflation, which was well below the UK's decision to leave the EU, it is business climate are key to attracting government's target of 6.2 percent. crucial for Bangladesh to ensure investors to the economic zones and July-September 2016 July-September 19 Bangladesh Economy

achieve the much-desired export other currencies in some of these rate stability and protect external basket diversification. countries in recent months also competitiveness. put a negative impact on inward It said Bangladesh Bank has remittance. The weighted average call money announced a pro-growth monetary rate has come down drastically, policy statement for July-December With a whopping 20.45 percent and the plunge in rates primarily 2016, setting a private sector credit growth year-on-year, foreign occurred from October 2015 when growth target of 16.5 percent this exchange reserves hit the $30 billion the central bank suspended reverse- fiscal year, up from 14.8 percent mark for the first time, reaching repo operations, which left the banks in the previous year's MPS. As $30.14 billion at the end June. overburdened with liquidity amid remittance declined 2.55 percent to low domestic private sector credit $14.92 billion last fiscal year, Citi said “Higher current account surplus requirements. the drop has primarily been due to a and higher foreign direct investment plunge in remittance from workers helped grow the reserves,” it said. It In January 2016, the central bank in the Middle East. said some noteworthy policies and cut the repo rate from 7.25 percent reforms were introduced in the first to 6.75 percent and the reverse-repo The Gulf countries that host a large half of the year, the majority of which rate from 5.25 percent to 4.75 percent, Bangladeshi Diaspora account for were aimed at providing a better dragging the overnight money over 65 percent of the country's investment framework. workers abroad and have been market rates further down. During bearing the brunt of continued Citi said a strong growth in exports the first half, Dhaka Stock Exchange low oil prices. “This has led to and a lull import side resulted in an remained dreary with a sporadic lower spending on infrastructure influx of US dollars during the first uptrend while market turnover was and construction projects, which half; Bangladesh Bank purchased stagnant, Citi said. “A trend of profit provides employment for most excess dollars from the commercial booking soon after a period of short Bangladeshi workers abroad.” In banks in line with its monetary rally was witnessed, which limited addition, Citi said the weakening of policy goals to maintain exchange the upward movement.” Bangladesh to be a 'growth outperformer' in 2016-25 : BMI Research to the World Bank's 2015 ranking. ageing populations, particularly The BMI analysis said three factors in Western Europe and Japan, will will be the key to growth. “Economic result in weak labour force growth. angladesh has been picked growth will be strongest in net Bup as a growth outperformer commodity importers that have Turning to demographics, the for the next decade riding on low positive demographic trends and research said countries with positive commodity prices, demographic economic reform momentum.” demographic trends will enjoy an dividend and expected measures endogenous boost to economic aimed at improving the business With regards to commodities, net activity. Of Bangladesh's 16 crore environment. London-based BMI commodity importers will benefit population, 10.5 crore, which is more Research has picked six countries -- from generally lower commodity than 65 percent of the population, are Bangladesh, Ethiopia, India, Mexico, prices over 2016-2025 compared aged between 15 and 64 years, said to 2006-2011, particularly for oil. Pakistan and the Philippines -- that the United Nations Development Bangladesh relies heavily on imports will be growth performers in 2016- Programme in April. 2025. for oil. BMI Research said commodity exporters will underperform in the With more youth entering the The countries “will rapidly climb the absence of other growth drivers, working age population, Bangladesh GDP country rankings between now while reformers will outperform, is poised to benefit from a and 2025,” it said. The six countries helping set apart otherwise similarly demographic dividend in the next 10 are expected to gain an average of 6.5 structured emerging markets. years, according to the World Bank. places each in global GDP rankings About reforms, BMI Research said by 2025, with Ethiopia (+12) and Developed markets will stagnate and countries that it expects to enact Bangladesh (+11) making the most generally lose ground to emerging economic and political reforms, gains, said BMI Research, which is markets in the GDP rankings, it said. specifically measures to improve owned by the Fitch Group. Economic growth in the developed markets will generally be capped business environment and unlock Bangladesh is the 47th largest by weak demographic trends and a economic productivity, will grow economy in the world in terms of lack of substantial economic reform. faster than those without such gross domestic product, according In terms of demographics, rapidly reform momentum. July-September 2016 July-September 20 Bangladesh Economy

Bangladesh to emerge as leader towards achieving SDGs: UNESCAP he United Nations hopes healthy situation. Bangladesh also the question whether regional TBangladesh would emerge has to create jobs.” Although each cooperation could play any role in as a leader in the sustainable country will have to tap the potential achieving the SDGs, as there was development goals, repeating its for generating more resources no regional approach in the MDGs. success in pulling off the millennium from domestic sources, the role of He, however, said the region could development goals. Bangladesh has official development become a role model in South Asia assistance for the and in the world in achieving the least-developed MDGs, the predecessor of SDGs, countries remains said Mr. Nagesh Kumar, head of UN- critical. “Bangladesh ESCAP South and South-West Asia should receive twice Office. the aid it receives now,” he said. “We believe Bangladesh would again lead the way in achieving the SDGs,” The government he told a seminar at the Prime has put in place Minister's Office in Dhaka on 17 resources such as August. He also praised the country's money, people and leadership and commitment towards intellect to achieve the SDGs, said develop infrastructure using money, SDGs. The Governance Innovation Mr. Abul Kalam Azad, Principal time and intellect. He also stressed Unit (GIU) of the PMO organized Secretary of the PMO. SDGs are good governance, law and order, the discussion styled “Achieving important for those who live in human rights and equity and justice sustainable development goals: key Bangladesh and those who are in accomplishing the SDGs. The rise policy priorities and implementation yet to be born in the country, said of militancy and terrorism is a threat challenges for South Asia and Mr.Gowher Rizvi, International to achieving some of the SDGs, said Bangladesh”. Affairs Adviser to the Prime Minister. Mr. Md Shahidul Haque, Foreign The government has adopted many Affairs Secretary. He also stressed the Despite their economic dynamism of the SDGs in its Seventh Five-Year need for new financing for achieving and remarkable MDG achievements, Plan before the UN adopted the 2030 the goals. South Asian countries account for agenda. “So, we are ahead of the 37 percent of the world's poor, and c u r v e .” Resources are available but it has to nearly half the world's malnourished be looked into whether the countries children. The countries also suffer The adviser, however, said achieving are able to maximise whatever foreign from a number of development and SDGs would be a difficult task as assistance is being received, said Prof infrastructure deficits, Kumar said in the goals are enormous. “And the Ainun Nishat, professor emeritus of a presentation. government alone can't do it. There Brac University. In Bangladesh, there should be joint efforts.” He urged is institutional framework in place With nearly one-fourth of the world's ministries to go beyond their set population, South Asia has a critical that can take the job creation agenda tasks and cooperate with each other forward, said Mr. Asif Ibrahim, role in the global achievement to speed up implementation. of SDGs. “If South Asia does not Former DCCI President. “We want achieve the SDGs, the world will Dr.Qazi Kholiquzzaman Ahmad, to work with the government on the not achieve it. The onus is on us to Chairman of Palli Karma-Sahayak 2030 agenda,” said Ibrahim.Skilled deliver,” Kumar said. Among some Foundation, called for policy and population is the key to achieving policy recommendations, the UN institutional cohesion. “We need SDGs, said Namita Halder, Private official said rapid economic growth reorientation of the development Secretary of the Prime Minister. The is necessary through sustainable administration and the approach has government has taken the SDGs industrialization. to be people-centric,” he added. seriously and aligned the Seventh Five-Year Plan and the Perspective “We have seen growth in the region Dr. Debapriya Bhattacharya, Plan of 2040 in line with the 2030 for a while but this growth is not Distinguished Fellow of the agenda, said Abdul Halim, Director creating enough jobs. This is not a Centre for Policy Dialogue, raised General of the GIU. Bangladeshis optimistic about economy: MasterCard

angladeshis are very optimistic economy, employment prospects and of 2016, according to a MasterCard Babout their outlook on the the quality of life in the second half survey. The country recorded a gain July-September 2016 July-September 21 Bangladesh Economy

of 4.3 points to stand at 71.6 points the most pessimistic and 100 the with consumers expressing optimism in MasterCard's Index of Consumer most optimistic; 50 is classified to be about economic prospects over the Confidence. It stood at 67.3 points in neutral territory. next six months. the second half of last year. In Bangladesh, respondents from “Even as emerging Asia continues Syed Mohammad Kamal, country Dhaka, Chittagong, and Sylhet took to drive the region's growth, manager of MasterCard, and part in the face-to-face survey. Save governments and businesses need Gitanka Datta, vice-president of the for the stock market, Bangladeshi to ensure stability and strong company, unveiled the results of respondents expressed optimism fundamentals in order to weather the survey on 11 August in Dhaka. regarding all the other factors of future external shocks,” he said in By and large, consumer confidence the economy. Respondents are a statement. Taiwan recorded the in the Asia-Pacific region has been pessimistic about whether the local largest gain of 16.3 points to stand at steady, with nine out of the 17 stockmarket index will go up over the 45.3 points -- a leap from being the next six months. lowest ranked of 17 in the previous Points in the Index As a result, the edition of the survey. 83.0 country has lost Employment 5.6 points in the Consumer confidence in China 79.8 index. (76) posted slight increases of 1.4 points. The developing markets of Economy 79.5 Bangladesh's India (97.6), the Philippines (95.2), 72.3 stock market has Vietnam (94.9) and Myanmar (99.8) been lack luster remain extremely optimistic in their Regular 84.6 since the 2010 outlook. Sri Lanka shed 4.2 points Income 77.6 stock market to stand at 38, dipping into the crash. DSEX, pessimistic territory, while South Stock 35.3 the key index of Korea, despite a 0.4 points increase, Market 40.9 the Dhaka Stock remained in pessimistic territory. Exchange, stood Declines were recorded in seven Quality 75.5 at 4,569 points out of the 17 Asia Pacific markets, of Life 65.8 on Wednesday. It with significant deterioration seen was 5,334 points in Indonesia (-14.7), Hong Kong H1 2016 H2 2015 even less than (-12.4) and Singapore (-10.7). two years ago. markets surveyed showing stability. Overall, male respondents were The decreases recorded in Hong With a negligible increase of 0.05 more optimistic compared to their Kong, Japan (-8.8) and Singapore points in the overall score, the Asia female counterparts. People below moved these markets from neutral to Pacific region continues to sit just 30 are also more hopeful compared the pessimistic territory. Introduced below the 60-point optimistic mark. to those above 30, Kamal said. in 1993 and released twice a year, the survey is considered as the For the entire survey between June Eric Schneider, senior vice-president longest running and the most and July, some 8,746 respondents of Asia Pacific of MasterCard comprehensive regional assessment aged between 18 and 64 were asked Advisors, said the overall consumer tracking consumer confidence. Over to give a six-month outlook on five confidence in the region has time, the index has evolved into a factors: the economy, employment shown marginal change, with some regional benchmark used by the prospects, regular income prospects, economies facing headwinds. But the business community. This was the stockmarket and their quality of region's emerging markets including 47th survey. Bangladesh was added life. The index is calculated on a China, India, Vietnam, Myanmar to the survey in the second half of scale of 0 to 100, with zero being and the Philippines remain resilient, 2012. Youth skills, education key to SDGs: analysts t is crucial for Bangladesh to ensure contribute to the country's economic Prothom Alo and the United Iquality education for the youth, growth by utilising their merit and Nations Population Fund or develop their skills and promote skills, they said. They spoke at a UNFPA organized the event at young entrepreneurship to achieve the newspaper's office in Dhaka. roundtable on “Way to achieve the the sustainable development goals, In September 2015, world leaders analysts said on 17 August. Besides, goals of 2030: Poverty reduction and gathered at the United Nations and women should be provided with ensuring sustainable production and signed off on the 2030 Agenda for equal opportunities so that they can consumption”. Sustainable Development Goals. July-September 2016 July-September 22 Bangladesh Economy

Seventeen goals and 169 targets aim food production system should Manufacturers and Exporters at putting an end to poverty and be corrected to minimise waste Association. fighting inequality and injustice. during production, said Golam Rahman, president of the Consumer Mustafizur Rahman, a member of UN Public participation with the Association of Bangladesh. Youth Advisory Panel, said the youth government development initiatives should be engaged in social work must be ensured to achieve the goals, The young entrepreneurs should be such as prevention of child marriage AHM Mustafa Kamal, Planning provided with sufficient financial and reproductive healthcare. Child Minister, said at the event. Inequity support for the country's economic marriage and unemployment are must be reduced in society, he said. growth, said Mr. Shafiul Islam acting as major barriers to achieving People of marginalised communities Mohiuddin, Vice President of the SDGs, Munir Hossain, UNFPA's must be incorporated with the Federation of Bangladesh Chambers national programme officer, said mainstream population for overall of Commerce and Industry. while presenting a paper in the development of the country, he said. function. The youth should also be trained in Dr. Nazneen Ahmed, Senior Research Fellow at Bangladesh Institute of technical education to enhance their Abdul Qayyum, associate editor Development Studies, said women skills, he added. of Prothom Alo, moderated the do not get equal opportunities in roundtable while noted economist Biren Sikder, state minister for Bangladesh, especially in rural areas. youth and sports, said his ministry MM Akash; Farhana A Rahman, vice is continuously arranging technical The government should set up more president of Bangladesh Association education and training for youths special economic zones, exclusively of Software and Information in every district on a regular for small and medium enterprises, Services, and Towfiqul Islam Khan, basis. There are around five crore said Mr.Mahmud Hasan Khan, Vice research fellow of the Centre for youths in Bangladesh, he said. The President of Bangladesh Garment Policy Dialogue, also spoke. Payra rail link to bring $7.5b FDI P Rail a British company has to Bangladesh Ms.Alison Blake, said potential to become an international Dproposed to invest $7.5 billion that the UK was keen to invest in seaport, but its road and rail links in the Dhaka-Payra seaport rail Padma Bridge-Kuakata railway link with Dhaka and other parts of the link project. The proposal came and Payra port. According to the country are poor at the moment. in response to shipping ministry's Ministry the British company in the invitation for Expression of proposal mentioned that it would do According to the DP Rail's website, Interest for investment in various the job together with China Railway the company is working to finance, components of the Payra seaport Construction Corporation Ltd. design, build, operate and maintain in Kuakata of Patuakhali. Five the Dhaka-Payra based upon FDI. companies, including DP Rail, had It said the DP Rail encompasses the submitted proposals for the 280km investment, engineering, operations, rail link project. planning and programming management expertise required. The shipping ministry primarily shortlisted the British firm as eligible. Interport BD Limited has 50 percent On September 17, Finance Minister share in DP Rail. The company wants AMA Muhith told a programme at to develop a freight railway linking The Daily Star Centre that British Dhaka with Payra and the rest of private investors would build a rail Bangladesh, and a possible link to line from Dhaka to Payra. "Payra the Seven Sisters region of India. is becoming a much better port in Interport is a specialist transport Bangladesh, which will be one of the and logistics company, based in best in the region. It is going to be Shropshire, England, although really a good seaport," the minister The DP Rail's proposal includes most of its activities are currently in said. Muhith later told The Daily construction of an Inland Container Bangladesh. Star that the money would come as Depot and a landing port at Payra. Foreign Direct Investment. The rail link between Dhaka and The company has recently completed Payra is crucial, as the government a technical and economic feasibility Earlier in August, Commerce plans to build it as the main seaport study of the proposed Payra port Minister Tofail Ahmed told the media of the country by 2022. Payra sits as a sub-consultant to British firm that the British High Commissioner on the Bay of Bengal and has all the HR Wallingford, and has recently July-September 2016 July-September 23 Bangladesh Economy

secured further consultancy studies after it was inaugurated by Prime include government to government in Bangladesh, according to the DP Minister Sheikh Hasina. Earlier, HR funding and FDI. The shipping Wallingford & Consortium prepared Rail website. ministry has sent a proposal to the a techno-feasibility study of the The Payra seaport became operational Payra port, having 19 components planning ministry for the Payra on a limited scale in August, with a total investment of $16 billion seaport project. Pvt. power cos get tax waiver until 2019 The government's revenuerecently. According to revenue and offering the tax exemption authority has extended the tax authority the deadline for availing the facility. Many investors responded exemption facility for the private tax exemption facility was extended to the offer. Bangladesh Power power generation companies by on a couple of occasions in the past Development Board (BPDB) has another three and half years, up through issuing SROs. The previous signed agreements with different to December 31, 2019. The private two deadlines ended on December private power companies under the 31, 2014 and June income tax rules with tax exemption 30, 2013. facility.

As per Income It is not possible for the ministry Tax Ordinance to cancel or suspend the existing 1984, private tender, invite fresh one or cancel power plants that existing agreements. will comply with the conditions The tax authority has extended the of the private timeframe for tax exemption facility sector power considering the issue. As per the generation policy existing income tax rules, foreign of Bangladesh, employees of the private power will be entitled companies can enjoy tax exemption power generation companies, except to enjoy the tax exemption on the for first three years after their arrival the coal-fired ones, that will go income generated from the power in the country. for commercial production by the production business. According to said period will enjoy 15-year tax officials a number of entrepreneurs The power generation companies can exemption facility. have shown their interest to invest in also enjoy tax exemption on interest power generation, being encouraged amount of foreign loan, payable Internal Resources Division (IRD) by the 15-year tax holiday facility. royalties, technical know-how and has extended the deadline that technical assistance fees, and capital expired on June 30 through issuing The power ministry invited tender by gain of the companies, generated a Statutory Regulatory Order (SRO) preparing request for proposal (RFP) following handover of their shares. BD placed 19th in global financial inclusion progress angladesh has been ranked 19th, account, causing major institutional Bangladesh do not appear to have Bscoring 66% in financial inclusion shifts in Bangladesh. A major been significantly disrupted by these progress among many countries in institutional shift in Bangladesh events. For example, as of spring the world while Kenya topped the list since the publication of 2015 FDIP 2016, the drafting of a national with 84% score, according to a global report was the resignation of then study report. The 2016 Brookings governor of Bangladesh Bank, Financial and Digital Inclusion Atiur Rahman, in March 2016, after Project (FDIP) report revealed on hackers allegedly stole more than 2nd week of August evaluates access $81 million from Bangladesh Bank to and usage of affordable financial by providing transfer orders to the services by underprivileged people U.S. Federal Reserve Bank in New across 26 geographically, politically York. and economically diverse countries. Fazle Kabir was appointed as The report also mentioned the largest the new governor of Bangladesh cyber heist that took away $81 million Bank in the same month. Thus far, from Bangladesh Bank’s reserve financial inclusion initiatives in July-September 2016 July-September 24 Bangladesh Economy financial inclusion strategy under a held the top five positions among The study report said Bangladesh’s committee chaired by the governor countries between 2015 and 2016. robust mobile capacity levels have of Bangladesh Bank was underway, contributed to the increasing take-up The 2016 report assesses these the report observed. of Mobile Financial Services (MFS) countries’ financial inclusion in the country, which as of 2014, The neighbouring country, India, ecosystems based on four boasted among the FDIP countries was ranked 12th, scoring 71% in the dimensions of financial inclusion development of financial inclusion. – country commitment, mobile in Asia. capacity, regulatory environment Pakistan scored 69% and was placed In fact, Bangladesh is one of the and adoption of selected traditional 14th among the countries under fastest growing mobile money Financial and Digital Inclusion and digital financial services. markets in the world when measured Project (FDIP) in the study. Bangladesh scored 89% on the country commitment, 83% on by the total number of accounts. The other top-scoring countries mobile capacity, 78% on regulatory There were about 131 million mobile include Colombia, earning 79%, environment and 39% on adoption phone subscribers of the total about and Kenya, South Africa, Brazil and while India scored 100%, 72%, 94% 160 million population as of March Uganda, each scoring 78%. They and 44% respectively. 2016. BD advances 12 spots in Global Innovation Index Organization (WIPO) jointly innovative economies, becoming the released the rankings on August first middle-income country to enter 15. The country placed in ahead of the top 25 of the index in its nine Pakistan which ranked 119 in this editions of surveying the innovative year’s rankings from 131 in last year. capacity of 128 economies of the India climbed 15 spots, from 81 last world. angladesh advanced 12 spots, year, to 66 in the global index. Bfrom 129 last year, to 117 in Last year report, however, covered the Global Innovation Index (GII). Switzerland, Sweden, the UK, the 141 countries. The reduction of US, Finland, and Singapore lead the countries also contributed to Cornell University, INSEAD and the 2016 GII rankings. This year, improvement of the rankings in the World Intellectual Property China joined the world’s 25 most- some countries. Basel Index on money laundering, terror financing risk BD position better in S Asia angladesh holds a better position with its score at 6.43 among 152 A total of 14 indicators that deal with Bamong South Asian countries countries. AML and Combating the Financing regarding risk of money laundering of Terrorism (CFT) regulations, and terrorist financing. The country The top 10 countries of highest risk corruption, financial standards, are Iran, Afghanistan, Tajikistan, has also improved its ranking two political disclosure and the rule of Guinea-Bissau, Mali, Cambodia, steps globally. Among six South law are aggregated into one overall Mozambique, Uganda, Swaziland Asian countries, Bangladesh has risk score, according to the Basel and Myanmar, according to the 2016 been placed 5th after India, according Index report. Basel index. Besides, Finland is the to the Basel Anti-Money Laundering lowest-risk country, followed by (AML) Index 2016 developed by the The Basel AML index does not Lithuania and Estonia. Basel Institute on Governance. assess the amount of illicit money "More countries improved their or transactions but is designed to In the fifth edition of the AML index ratings last year in the Basel AML assess the risk of money laundering 2016 that covered 149 countries, index, but the effectiveness in in order to indicate the vulnerability Bangladesh has ranked 54th with fighting money laundering remained of a country to the twin menace of its score at 6.40 followed by India weak," says the Basel Index report money laundering and terrorism with 5.69 (78th position). However, 2016. Based in Switzerland, the financing based on publicly available Afghanistan, Nepal and Sri Lanka Basel Institute of Governance has indicators. Meanwhile, outflow stand out with particular high- published the AML index since of dirty money from Bangladesh risk scores of 8.51, 7.57 and 7.16 2012, measuring the risks of money marked a phenomenal rise in recent respectively, the Basel AML Index laundering and terrorist financing of years despite various steps to help 2016 has revealed. In the Basel AML countries based on publicly available curb such acts by the government Index 2015, Bangladesh ranked 52nd sources. and the country's central bank. July-September 2016 July-September 25 Bangladesh Economy

Between 2004 and 2013, illicit funds and entities with banks in Switzerland Money Laundering Prevention Act amounting to $55.87 billion fled stood at around US$ 545 in 2014, it 2009. Apart from the adoption of out from the country to different revealed. laws, Bangladesh had also secured membership of the Egmont group, a Bangladesh global body of 131 member- nations government on to combat money laundering, 11 October 2015 amended the financing of terrorism and other Money Laundering financial crimes, in 2013. Prevention Act Moreover, in its third-round mutual 2012 to make the evaluation on Bangladesh's efforts to law more effective curb money-laundering and terror- and purposeful. The government financing activities, a team of the first adopted a law Asia/Pacific Group (APG), which styled Bangladesh advocates effective implementation destinations, mostly tax havens, Money Laundering Prevention of laws regarding anti-money according to the latest available Act 2002. It was replaced by the laundering and terrorist financing, reports of the Global Financial Money Laundering Prevention visited Bangladesh and sat with Integrity (GFI). Again, funds held Ordinance 2008. Subsequently, different authorities concerned directly by Bangladeshi individuals the ordinance was repealed by the including Bangladesh Bank last May. BB sets foreign currency rules for economic zones angladesh Bank on 10 August Besides, equity from foreign and repatriation of export proceeds. Bissued a new foreign exchange shareholders and loan received in regulations for enterprises and foreign currency from authorised Sales of permissible Bangladeshi developers in planned economic sources may be credited in the goods or raw materials to enterprises located in EZs must be against zones as the government seeks to foreign currency accounts of Type A convertible foreign currency only to attract more investors. The foreign and Type B units. In case of inward be received from foreign currency exchange regulations applicable remittance on account of equity, accounts maintained by the EZ units for units in the existing export banks may issue a certificate with the with ADs or offshore banking units processing zones will also be amount credited in foreign currency by Type A units. Moreover, selling of applicable for entities in EZs, if not account mentioning equivalent taka. otherwise directed by the BB. such goods including non-physical contents to enterprises against The central bank has divided payment in foreign currency shall be industrial units into three categories: treated as exports from Bangladesh. A, B and C. Type A units are 100 percent foreign-owned, including Therefore, normal foreign exchange those owned by Bangladeshi regulations related to declaration nationals ordinarily resident abroad. of exports in case of overseas sales Type B units are joint-venture in physical form and repatriation projects between foreign and local of proceeds shall be applicable for entrepreneurs. Type C units are exports to EZs from other areas of those fully owned by Bangladeshi Bangladesh. entrepreneurs who permanently reside in the country. Existing instructions will be Moreover, authorised external applicable for obtaining credit The units under the three types will loan proceeds may be credited in facilities by the units of EZs. maintain foreign currency accounts foreign currency accounts of Type However, if they want to obtain with authorised dealers. The Type A C units. Exporters of such areas may medium and long-term debt from units may open and maintain such maintain taka accounts in the same abroad or offshore banking units in accounts with offshore banking units manner, according to the central case of Type A units, applications of scheduled banks of Bangladesh. bank notice. Exports of goods from have to be submitted to the BB Proceeds from exports by entities EZs, including sales within EZ, to through the Bangladesh Economic of different types of EZs must be other EZs, EPZs or other areas of Zones Authority. ADs or offshore retained and used through the Bangladesh are subject to the usual banking units may remit dividends foreign currency accounts. requirement of declaration of exports favouring non-resident shareholders July-September 2016 July-September 26 Bangladesh Economy of Type A and B units without prior of imported machinery. It cannot Operation Department of the BB. permission of the BB. exceed 6 percent of previous year's Such transactions are also to be sales as declared in the income reported in monthly returns to the The notice said locally owned zone tax returns for ongoing projects. BB. The government plans to set up developers will have to follow the Remittance of such fees in excess of 100 economic zones in Bangladesh similar exchange regulations like the limit is subject to prior specific in the next 15 years. the entities outside EZs and EPZs. approval from the BEZA, said the Likewise, foreign-owned entities or central bank. The BEZA has approved proposals zone developers will follow similar for 22 economic zones and eight exchange regulations that are The notice said foreign nationals sites have been primarily selected to applicable for similar entities outside working in EZs, with valid work set up the parks. Exports will grow of the EZs and EPZs. permit from the BEZA, will be by $40 billion a year and one crore allowed to remit through an AD 75 jobs will be created if 70,000-75,000 ADs or offshore banking units percent of net salary, 100 percent of acres of land can be allocated to the may remit royalty, technical know- leave salary and actual savings and economic zones, according to an how and technical assistance fees all pension benefits without prior estimate by the BEZA. of enterprises from the foreign BB approval. Investment in EZs shall currency accounts for Type A units have to be reported to the central The BEZA aims to establish without prior permission from the bank. economic zones in all potential areas BB or BEZA if the total fees and in Bangladesh, including backward other expenses do not exceed a Besides, all foreign exchange and underdeveloped regions, with a certain amount. transactions of EZ units are to be view to encouraging rapid economic reported through online foreign development through increase For new projects, the amount exchange transaction reporting and diversification of industry, cannot exceed 6 percent of the cost platform of the Foreign Exchange employment, production and export. Bashundhara gets economic zone licences angladesh Economic Zones Mohammad Mahboob Haider Bashundhara Group has started BAuthority on 28 July awarded Khan at a programme in Dhaka. operation as a real estate venture in two prequalification licences to Upon satisfactory completion 1987. Today, it is engaged in many Bashundhara Group to set up two of the prequalification exercises, areas such as cement, paper and pulp, economic zones at Keraniganj in tissue paper, steel, LP gas bottling Dhaka. and distribution, and trading.

The group will set up the Bashundhara Beza has so far awarded licences to Special Economic Zone on 56 acres seven local private sector companies and the East West Special Economic to set up eight economic zones one Zone on 53.87 acres in Keraniganj, Bashundhara will get the full licence, each to AK Khan and Company, some 15 kilometres from the capital. which will make it eligible to enjoy Abdul Monem Ltd, Bay Group, tax exemption for 12 years. Aman Group, Maisha Group, United The sites will be suitable for setting up Group and two to Meghna Group. heavy and medium industries such as Apart from the developers, petroleum oil refinery, LPG cylinder entrepreneurs can also get fiscal The government is also setting up manufacturing and bottling, food and financial incentives and other four economic zones in the public and beverage, chemical products, benefits that industrial units typically sector: Mirsarai Economic Zone in ship-building and steel industries. get in export processing zones. Chittagong, Mongla Economic Zone in Bagerhat, Srihatta Economic Zone The economic zones will create By setting up a unit in an economic in Moulvibazar and Sabrang Tourism around 40,000 jobs, said Md zone, investors can get tax exemption Park in Cox's Bazar. Fakhruddin, chief operating officer for 10 years. They can also enjoy of Bashundhara Dredging Company, Bangladesh's significant market The government plans to develop a unit of Bashundhara Group. access to developed and neighbouring 100 such zones by 2030 on 75,000 countries, demographic dividend, acres with a view to creating jobs Beza Executive Chairman Paban the domestic consumer market and for one crore people and producing Chowdhury handed over the licences most importantly, the cheap labour products and services worth $40 to Bashundhara Group's Adviser force. billion. July-September 2016 July-September 27 Bangladesh Economy

Unique gets primary licence to set up economic zone angladesh Economic Zones substitute industries. Unique Group Dhaka-Chittagong highway and the BAuthority (Beza) on 24 August will now conduct an environmental Meghna river. awarded a prequalification licence impact assessment, a feasibility study and make a master plan by next year An economic zone is a designated in line with the licence requirements. area in a country with special It will be the 11th economic zone economic regulations that differ to be developed by a private sector from the rest of the country. An company. entrepreneur can enjoy various benefits, including tax incentives, Although the prequalification licence from the authorities by setting up an was for 55 acres, Unique Group industrial unit in an economic zone. plans to set up the zone on 300 acres, Beza Executive Chairman Paban to Unique Group to set up an which will gradually be expanded Chowdhury said they have selected economic zone in Narayanganj and to 600 acres. The zone—Sonargaon 77 sites and acquired 30,000 acres of attract investment mostly in import- Economic Zone—is close to the land so far. Exports hit highest record xports continue to be a beacon of other destinations and preferably to Exports of terry towels increased Ehope for the economy, raking in Bangladesh,” Rahman added. 14.33 percent to $47.80 million, $34.24 billion in fiscal 2015-16 -- the headgears or caps 130.69 percent highest in the country's history. Apart from apparel items, exports of to $148.70 million, engineering leather and leather goods increased products 14.10 percent to $510.08 The amount, which not only beat the 2.69 percent year-on-year to $1.16 million, furniture 18.80 percent to government's target of $33.5 billion but was an increase of 9.72 percent over the previous year, down to the H1 Export Trend ($BN) strong performance of the garment 20 RMG Total and leather and leather goods sectors, according to data released 15 by the Export Promotion Bureau on July 13. 10 Garment, which typically accounts

for more than 80 percent of the 10.26 11.77 12.60 14.68 14.91 16.08 country's annual exports, brought 5

home $28.09 billion, up 10.42 7.95 9.25 9.95 11.93 12.02 13.13 percent year-on-year. “We expect 0 even higher exports in the current fiscal year as we are receiving work 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16Source: EPB orders aplenty,” said Mr.Siddiqur Rahman, President of Bangladesh billion last fiscal year, and in doing $46.26 million and pharmaceuticals Garment Manufacturers and so, crossed the $1 billion-mark for 13.04 percent to $82.11 million. Exporters Association. the third year. Exports of agricultural products like tea, vegetables, tobacco, cut One of the reasons for the ever- Earnings from footwear stood at flowers and foliage, fruits, spices and swelling export receipts from the $219.18 million, up 15.69 percent year- dry foods increased 1.71 percent to garment sector is that it has now on-year. Jute and jute good exports started manufacturing high-value $596.06 million. are seeing a revival on the back of new items as well, Siddiqur said. demand of natural fibres worldwide However, earnings from the exports The country is also receiving the and for a return of business-friendly of shrimps and crabs decreased 7.33 work orders that are being shifted environment in some Middle Eastern percent to $472.37 million, plastic in bulk from China. “China is no countries, industry insiders said. In goods such as PVC bags, plastic more a favourite destination for 2015-16, jute and jute goods fetched waste and others 11.50 percent to $89 international garment retailers. They $919.58 million, up 5.88 percent from million and bicycle 21.35 percent to are shifting their work orders to a year ago. $99.15 million, the EPB data showed. July-September 2016 July-September 28 Bangladesh Economy

BGMEA unveils roadmap to $50b export angladesh Garment Bangladesh High Commissioner RMIT Professor and BGMEA BManufacturers and Exporters to Australia Kazi Imtiaz Hossain, International Affairs Advisor Sharif Association (BGMEA) has unveiled FBCCI First Vice President Safiul As-Saber were present on the a roadmap to attain $50 billion Islam Mahiduddin, Deputy Pro- occasion. export earnings by 2021 from the Vice Chancellor of RMIT University apparel sector. The roadmap will Speaking on the occasion, the Professor Geoff Stokes, BGMEA concentrate on the priority and BGMEA President said the roadmap required activities that should be Senior Vice-President Faruk Hasan, would give important directives done to achieve the goal. Vice-President Nasir Uddin and towards attaining the Vision-2021.

The roadmap as dubbed "Bangladesh RMG Roadmap: Targeting US$ 50 Billion Export by 2021" jointly prepared by the RMIT University of Australia and BGMEA was unveiled in Melbourne, said a BGMEA released on 30 July.

Chairman of the Parliamentary Standing Committee on Ministry of Home Affairs Tipu Munsi, BGMEA President Siddiqur Rahman, Export of logistics products fetches $6.0b hadow exporters of the country years along with the expansion of $ 12 billion by 2018 and $ 18 billion Shave bagged about US$ 6 billion the apparel industry. Of them, more by 2025. The industry comprises by exporting logistics products in the than 600 factories are producing 1,400 small and medium enterprises fiscal year (FY) 2015-16, according corrugated carton to support the manufacturing logistics products for to industry insiders. Of the total country's apparel industry. the RMG sector and directly exports amount, the packaging industries raw materials to other countries like The sub-sector of apparel has contributed about $ 1.5 billion. In acquired necessary skills and Vietnam, Middle-East countries and the FY 2014-15, the sector earned capacity to serve the major export South Africa. $ 5.6 billion and export earnings industries like frozen food, fish, Raw materials like corrugated sheets in the FY 2013-2014 were $ 4.7 meat, vegetables, furniture, are imported mainly from Korea, billion. The shadow exporters are pharmaceuticals and other products Taiwan, Sweden and the USA while exporting products like corrugated as the logistics industry. Most of the plastic raw materials from Malaysia, carton, carton, button, thread, labels, factories located in Dhaka, Gazipur, poly bag, hanger, zipper and other Narayanganj and Chittagong are Indonesia, and Dubai to support the accessories. supporting the apparel industry. apparel industry of the country.

Bangladesh Garments Accessories The sub-sector generatesIndustry insiders have demanded and Packaging Manufacturers and employment of about 0.3 million that Bangladesh Small and Cottage Exporters Association (BGAPMEA) with total investment of $ 30 billion Industries Corporation set up a having membership of about 1,357 and it adds value at a rate of 40 per special economic zone in Manikganj experienced a steady growth at cent. BGAPMEA has targets to to help develop the sector and boost the rate of 70-80 per cent over the reach the mark of growth of about growth Food products show great export promise ocally manufactured spices, 15, according to data compiled and that of juice and drinks about Lbiscuits, juices and drinks are by Bangladesh Agro-Processors' five times to $66.85 million. Bapa fast gaining ground abroad. In fiscal Association (BAPA). data shows the four items accounted 2009-10, food processers shipped $3.93 million worth of cooking Similarly, shipments of biscuits rose for about 65 percent of the total condiments. The amount swelled almost six times to $20.07 million in export earnings of $219.84 million in to $60.42 million in fiscal 2014- fiscal 2014-15 from five years earlier, fiscal 2014-15. July-September 2016 July-September 29 Bangladesh Economy

Exporters said the increase in the But the Middle Eastern countries, other food products to some retail number of processed foods makers, mainly the UAE and Saudi Arabia, chains in the West. There are 100 cash incentive benefits provided which are home to hundreds of manufacturers engaging as exporters thousands and nearly 250 firms involved in of migrant food processing, according to data workers, from Bapa and Bangladesh Bureau are the of Statistics. largest markets. The food processing sector in N e w Bangladesh is a $2.2 billion industry markets that grew at 7.7 percent on average have also a year between fiscal 2004-05 and emerged 2010-11, said a US Department of in recent Agriculture report. The growth of years. For food processing has benefited the instance, rural economy as many raw materials by the government, better pricing Pran, the country's largest food are collected from farmers. It has and the quality of the locally made processor and exporter, now ships to also created jobs and scope to earn foods facilitated the growth. Today, some African nations. foreign currency through exports. Bangladeshi foods are being sold The quality and packaging of locally in 130 countries, ranging from Exporters' agents abroad are also made food products have improved a Australia to the US. supplying Bangladeshi spices and lot over the years. GPH signs contract with Chinese co for gas plant angladesh is going to install In the contract signing event Shan Kai will produce purely 99.99 per cent Ba daily 250 metric ton (MT) said, "China's commerce, investment oxygen, 99.99 per cent nitrozen and production capacity cryogenic and financing relation in the public 99.99 per cent argon gas besides Air Separation Plant (ASP) of and private sector with Bangladesh producing liquefied gas. sophisticated technology and global is excellent. We are satisfied to have standard. This will be the first signed contract with the GPH ispat In Bangladesh, it will the first ever high capacity ASP plant in in the steel sector of Bangladesh." ever installation for buffering and Bangladesh. GPH ispat ltd is going cylinder filling station. The GPH to build the plant with the technical with the existing and additional support of a Chinese company. production capacity of the plant will one million MT of bars and medium Additional Managing Director of section steel. the GPH ispat ltd Md Almas Shimul Providing data and statistics Monday signed an agreement to Mohammed Jahangir Alam said For this huge quantity of production this regard with Shan Kai, Vice other Air Separation Plant such as the ASP Plant will produce 6000 cubic General Manage of Sichuan Air Linde Bangladesh Ltd (former BOC) metre oxygen in gas form, 650 cubic Separation Plant Group (SASPG) has a daily production capacity of 80 metre oxygen in liquefied form, 1500 Co Limited of China at the GPH MT on an average, while the GPH cubic metre nitrozen in gas form and corporate office at Asadgonj in the plant will produce 250 MT of gas per 150 cubic metre liquefied nitrozen city. Managing Director of GPH day. and argon, according to the GPH ispat Md Jahangir Alam, GM of official. 500 people will get direct SASPG Zhou Shumming, Director He said that they will produce and indirect employment in the new (Overseas) Yang Jianyong and GM industrial and medical gas in plant and the plant will deposit Tk Yang Meiyuan were present on the addition to the gas for the local 250 million as revenue per annum to occasion. marketing at a cheap rate. This plant the national exchequer. LNG terminal to go into production in 2018 etrobangla and US-based national grid from early 2018. “This separate agreements were signed PExcelerate Energy on 18 July marks the end of paperwork. We to set up the LNG terminal at signed the final deals to set up expect to start supplying gas by Moheshkhali in the Bay of Bengal. Bangladesh's first LNG terminal, the end of 2017,” said Dr.Tawfiq-e- Known as Moheshkhali Floating which will handle imported liquefied Elahi Chowdhury, Energy Adviser LNG Terminal, the scheme was natural gas and supply those to the to the Prime Minister, after two taken in 2010. The terminal is now July-September 2016 July-September 30 Bangladesh Economy one of the fast-track projects that day. Petrobangla will have to spend According to Power and Energy the government took to strengthen $1.56 billion a year to import the Ministry the government plans to set infrastructure. LNG from Qatar. In March this year, up four land-based LNG terminals Petrobangla and one or two floating storage and and Excelerate re-gasification units. An additional inked an initial 3,500 MMCF of gas will be required agreement to set in the coming years, especially for up the terminal. power generation and industrial The unit will purposes. supply gas to Mr.Zanendra Nath Sarker, Deputy Chittagong region that has Secretary of the Energy and Mineral been suffering Resources Division, and Mr. Daniel from an acute Bustos, Chief Development Officer The LNG terminal, also called floating gas crisis for a long time. Bangladesh of Excelerate Energy Bangladesh, storage and re-gasification unit, now produces 2,700 MMCF of gas signed the contracts. M.Marcia will have the capacity to supply 500 a day against the demand for 3,300 Bernicat, US Ambassador to million cubic feet (MMCF) of gas per MMCF. Bangladesh, was also present. Bangladesh has lowest internet penetration in South Asia: ITU angladesh has the lowest internet reliable,” Palak said, adding that Industry experts said most of the Bpenetration in South Asia, with the government will request the citizens remain offline in Bangladesh just 14.40 percent of the population ITU to update the report with the due to two major issues. The having connectivity to the internet, BTRC's figures. “We hope they will government is yet to transform the according to a report by the comply with our request,” he added. public services online, so the citizens International Telecommunication However, the ITU stated that the see no utility in being online. The Union. The country stands 144th in data was collected from the BTRC. other issue is the government's anti- ITU's ICT Development Index, up connectivity policy and regulations, BTRC Chairman Mr. Shahjahan from its 148 spot in 2010. due to which the private sector is yet Mahmood said the report does not Even Myanmar that introduced present the real scenario. “We need to expand their coverage throughout mobile phone services only a few to analyse it before making any the country. years ago came ahead of Bangladesh further comment.” Abu Saeed Khan, The Maldives, the smallest country in the rankings, at 142. Its internet senior policy fellow at LIRNEasia, in South Asia, has the highest penetration stands at 21.80 percent. a Colombo-based think tank, said: internet penetration in the region, of As of December 2015, Bangladesh “This is an official data that has 54.46 percent. The islanders secured has 38.67 lakh fixed broadband been provided by the Bangladesh the 81st spot in the ranking, which subscriptions, which is 2.41 percent government to the ITU.” The was topped by South Korea. After of the total population, according to telecommunication union never the Maldives, Bhutan, another small the ITU report. Earlier, the World runs any independent report for any country, scored a higher position Bank in its 'World Development country. Report 2016: Digital Dividends' in the ranking, of 119. Its internet said Bangladesh has the fifth largest “The ITU has nearly reproduced penetration is 39.80 percent. offline population in the world, with the data without any amendment. Therefore, it reflects the country's Sri Lanka's internet penetration stood about 148 million still not connected at 29.99 percent, enough to secure to the internet. However, the digital health, which is miserable,” the 115 ranking. Neighbouring government denied both the reports. said Khan, also a former general secretary of the Association of India's internet penetration was 26 Mr. Zunaid Ahmed Palak, Mobile Telecom Operators of percent; it came in at 131. Nepal State Minister for ICT, said the Bangladesh. As of June, the country's came in at 136 and Pakistan 143. government is satisfied with the total number of internet subscribers In terms of mobile penetration, Bangladesh Telecommunication is 6.32 crore, according to Palak. Bangladesh scored 86.36 percent Regulatory Commission's published “The report can damage us. I will sit with its 13.37 crore active SIMs as of numbers, which show the country's with the BTRC chairman and request December. India has 78.84 percent internet penetration is about 40 him to correct the report as early as mobile penetration, Pakistan 66.92 percent. “They are authentic and possible,” he added. percent and Nepal 96.75 percent. July-September 2016 July-September 31 Bangladesh Economy

Bangladesh Bank announces half yearly Monetary Policy (July-December 2016) his issue of Monetary Policy percent as of May 16 overshooting Bank would accordingly emphasize TStatement (MPS) outlines the targeted end June ceiling of 14.8 on stabilizing CPI inflation. Bangladesh Bank’s monetary policy percent. Bangladesh Bank’s monetary and stance for the first half (H1) of the financial policies will continue FY17 as the first leg of its monetary However, with government’s belated supporting inclusive, environmentally program for the FY17. The MPS small net bank borrowing at the sustainable growth; addressing its is drawn up in the backdrop of closing end of FY16, overall developmental role in the longer sustained spell of CPI inflation domestic credit growth remained term risks to macro-financial moderation gains in output growth below the targeted path and is likely stability. The following are the momentum upheld by cautious but to be within the 15.5 percent ceiling highlights of the stance of monetary explicitly growth supportive stance by end June 2016. Strong FY16 policies to be pursued in H1 FY17: of monetary and financial policies private sector credit growth and FDI • stabilizing inflation at a moderate pursued in the recent years. inflows helped the economy attain 7.05 percent real GDP growth while level targeted in the national As earlier, the FY17 monetary annual average CPI inflation dipped budget and other macroeconomic program and the monetary policy below the 6.2 percent target in June policy pronouncements, stance for the H1 of the FY17 have 2016; even as the pass through • supporting the public policy been chalked up drawing on the of global oil price decline to objectives of inclusive, experience with the preceding consumers was belated and environmentally sustainable program and on inputs from minimal. Government’s nearly entire growth, and stakeholders’ consultations. FY16 domestic borrowing in the costly route of high yield nonbank • stabilizing the market exchange rate Monetary Policy Performance : FY16 NSD instruments was noninflationary, of Taka around levels protecting external competitiveness while Available data (mostly up to May though afflicting banks with a liquidity also facilitating absorption of 2016) indicate attainment of glut and Bangladesh Bank with a high external inflows in output and almost all key objectives of the sterilization cost burden. investment activities in the real monetary program and policies Core Objectives economy. for FY16. Broad money (M2) growth remained below target ceiling until The main objective of Bangladesh As always, Bangladesh Bank May 2016 and is likely to remain Bank’s monetary policy is moderation formulates its monetary policy keeping within the ceiling of 15.0 by end and stabilization of CPI inflation in view the events and developments June 2016. Private sector credit grew alongside supporting output and continually unfolding in the domestic robustly throughout FY16, at 16.4 employment growth. Bangladesh and global economic scenes. Bangladesh- based solar project wins UN prize ground-breaking project based pollution. It also lowers the financial to harness the power of ICT in the Ain Bangladesh, which allows barrier represented by the high fight against climate change whilst villagers to earn by selling excess initial down payment required for benefiting local communities, and solar energy to neighbours, was acquiring a solar home system, and serving as a role model for other announced on September 29 as one brings clean energy to the non- countries. Together with the other of 13 winners of the United Nations bankable population. winning projects, it will be showcased climate change awards. at a series of special events during Founded in 2014 as a German- the UN Climate Change Conference With the help of SOLshare's Bangladeshi spin-off of MicroEnergy innovative technical solution, International GmbH, ME SOLshare in Marrakech, Morocco (November marginalised households without has successfully piloted the world's 7-18, 2016). the means to finance their own first swarm grid, an ICT-enabled The 2016 Lighthouse Activities were solar power systems are able to peer-to-peer electricity trading selected by an international advisory purchase clean electricity from their network for rural households with panel as part of the secretariat's neighbours at low cost, said a press and without solar home systems in Momentum for Change initiative, release on September 29. Shariatpur of Bangladesh. which operates in partnership with This contributes to displacing the The SOLshare project was awarded the World Economic Forum Global more expensive kerosene, responsible under the Momentum for Change Project on Climate Change and the for indoor and greenhouse gas ICT Solutions focus area for its work Global e-Sustainability Initiative. July-September 2016 July-September 32 Regional News G20 a success for China: broad consensus over sragile global economy hina is lauding its successful to sluggish growth," China's business in China, driven by concern Chosting of the G20 summit official Xinhua news agency said that new laws and policies are seeking in scenic Hangzhou, with open 5 September. "In order to build to effectively shut out foreigners or confrontation largely avoided and an inclusive, rule-based and open make life very hard for them. broad consensus reached over the world economy, protectionism must fragile state of the global economy be prevented from eroding the Several diplomats familiar with the and the need for a wide range of foundation for a faster and healthier summit said China had resisted policies to fix it. There was even a economic recovery." the idea of putting steel on the final communique, though it did make an appearance in the end with G20 leaders pledging to work together to address excess steel capacity.

For countries like Britain, whose steel industry crisis has been directly blamed on a flood of cheap Chinese imports, the issue is key.

An official from British Prime Minister Theresa May's office said they and the United States had pushed for language in the communique on the importance of working together at G20 to tackle excess production. joint announcement by China and In the run-up to G20, China has been "We have, despite resistance from United States that they would ratify particularly upset by what it sees as some countries, secured some the Paris climate change agreement, unwarranted suspicion of its overseas language on the importance of doing a significant step for the world's two investment agenda smacking of that," the official said. biggest emitters of greenhouse gases. protectionism and paranoia. Asked if China was one of those But scratch beneath the surface, A few weeks before the summit, resisting, she just repeated "in the and the gathering of the world's Australia blocked the A$10 billion face of some resistance". most powerful leaders was not all ($7.63 billion) sale of the country's biggest energy grid to Chinese plain sailing - from the distraction Another shadow over the G20 has bidders, while Britain delayed a $24 of a North Korean missile test to been the rise of popular opposition billion Chinese-invested nuclear the failure of the United States and to free trade and globalization, project. Behind the scenes, Western Russia to reach agreement over Syria, embodied by phenomenon like countries have been accusing China and diplomatic faux pas to double Britain's summer vote to leave of not sticking to its own goals. speak over protectionism. the European Union and Donald Chinese state media, while largely Before the summit, European G20- Trump becoming the Republican basking in the glory of a summit sources doubted that the Chinese presidential candidate in the United that happened without being too agenda would mark a real new States. overshadowed by disputes such as chapter to create more sustainable "We agree with the G20's analysis that the South China Sea, also let slip growth for the global economy. the benefits of trade and open markets Beijing's frustrations at what it China, asking in public for more must be communicated to the wider sees as Western efforts to stymie its openness and steps to counter public more effectively," said John economic ambitions. protectionism, is still giving Western investors only very limited access to Danilovich, Secretary General of the "For the world's major developed their market, a European official said. Paris-based International Chamber economies, they should curb rising of Commerce. "It's vital that business protectionism and dismantle A big concern for foreign investors and governments work together to anti-trade measures as economic in China is what they see as the explain how and why trade matters isolationism is not a solution increasing difficulty of doing for all." July-September 2016 July-September 33 Regional News

Eurozone growth slows as Brexit dangers threaten rowth in the eurozone halved The period covered by the gross growth ground to a halt in the April- Gin the second quarter, official domestic product (GDP) data largely June period, a disappointing result data showed on July 29, with analysts pre-dates the shock vote in late for the eurozone's second-biggest warning that the consequences of June by non-euro Britain, which economy. Brexit could harm the economy the European Central Bank warned further later in the year. The would negatively influence growth in Eurostat also announced that Europe for years eurozone consumer prices rose 0.2 to come. Signals percent in July after a gain of 0.1 so far are that percent in June as the single currency economic activity bloc edged further away from the in the eurozone is dangers of deflation. "The inflation proving resilient data is likely to be the start of a more despite the vote, sustained pick-up in price rises," said after strong initial Jack Allen, European economist at shocks rocked the Capital Economics. financial markets. The ECB last week refrained from "The goodadding more monetary stimulus news is that the to boost consumer prices in the economy still has eurozone, disappointing markets. Eurostat statistics agency said some momentum, though there is Slow eurozone growth has seen economic growth in the 19-nation little acceleration to be expected as inflation slide in and out of negative single currency bloc slowed to 0.3 long as the Brexit story continues territory, threatening a dangerous percent in the April to June period, to inject some uncertainty into the downward spiral of falling prices and with stagnation in France largely external environment," said Peter wages. The ECB aims to get inflation contributing to the poor data. Vanden Houte, chief economist back to its long-term target of two at ING Bank in Brussels. Looking percent or just below, a level it deems This was down from a far more ahead, "the third quarter started on healthy for growth. robust expansion of 0.6 percent in a good footing, but it is probably the previous quarter, though analysts too soon to start downplaying the Eurozone unemployment meanwhile had said that result was due to a potential negative impact of Brexit was unchanged at 10.1 percent surprisingly warm winter in Europe. on eurozone growth," he added. in June compared with May, but The latest figures were in line with down from 11 percent in June 2015, forecasts of analysts surveyed by In the eurozone, Spain managed Eurostat said. The agency said GDP data company Factset, and meant the to grow a solid 0.7 percent despite growth for the EU's 28 member states eurozone grew by 1.6 percent over 12 political deadlock since inconclusive as a whole stood at 0.4 percent, for a months. elections last December. But French year-on-year gain of 1.8 percent. Brexit is risk to global growth: G20 ritain's vote to leave the European see the UK as a close partner of the with the EU," he said. Before the BUnion heightens risks for the EU." The G20 cited several other meeting, the International Monetary world economy, finance chiefs from factors complicating the global Fund (IMF) downgraded its forecasts the G20 group of leading countries economic environment, among them for global growth this year and next said on 24 July. The outcome of "geopolitical conflicts, terrorism and by 0.1 percentage points, to 3.1 June's referendum "adds to the refugee flows". percent and 3.4 percent respectively. uncertainty in the global economy", "'Brexit' marks the materialisation of they said in a communique after But participants said Brexit was an important downside risk to global a meeting of central bankers and at the forefront of concerns at the growth," IMF staff said in a report, government officials in the Chinese meeting in Chengdu, the last before adding that as it was "still very much city of Chengdu. the G20 summit in September. unfolding, more negative outcomes Philip Hammond, Britain's finance are a distinct possibility". But they insisted that G20 countries minister, told reporters the subject were "well positioned to proactively had come up "a great deal". "The Officials in Chengdu said protracted address the potential economic and reality is there will be a measure of or acrimonious talks between the EU financial consequences" of the vote, uncertainty continuing right up to and Britain over the departure could adding: "In the future, we hope to the conclusion of our negotiations heighten the dangers. US Treasury July-September 2016 July-September 34 Regional News

Secretary Jacob Lew stressed to his widespread crackdown on public spending and cheap exports. European and British counterparts opponents. The communique repeated a pledge "the need for negotiations to take from an earlier meeting in the place in a smooth, pragmatic and Officials said the Turkish delegation Chinese commercial hub Shanghai transparent manner". "A highly had demanded an explicit statement in February, that G20 countries integrated relationship between the of support for Erdogan's government, would use "all policy tools", including UK and the EU is in the best interests of Europe, the United States and the global economy," he told journalists after the meeting.

Other challenges threaten: a slowdown in the Chinese economy, as well as terrorist attacks and the failed coup in Turkey. Earlier this month 84 people were killed in the French city of Nice when a Tunisian truck driver -- suspected to be inspired by the Islamic State jihadist group -- ploughed his vehicle through crowds.

French Finance Minister Michel but some other representatives had monetary easing, fiscal spending and Sapin told AFP that terrorism had demurred. Concerns about slowing structural change, to boost growth. become an economic risk: "Today growth in China, the world's second But it added action could be taken the frequency of attacks creates a largest economy, have receded into "individually and collectively" and new situation of uncertainty, which the background at the G20 in the called for "inclusive growth" to is at least as damaging as regional face of other threats. bring in those left out of economic destabilisations or a regional prosperity. Fiscally rigorous conflict." But the communique did Beijing is embarked on a Germany in particular is reluctant not mention the failed attempt to fundamental transition intended to to endorse the use of government depose Turkey's President Recep make domestic consumption the key spending to boost growth, seeing it Tayyip Erdogan or his subsequent economic driver instead of massive as ineffective. US, China ratify Paris climate agreement he United States and China on 3 change would "define the contours of where he is to host the G20 summit TSeptember formally joined the this century more dramatically than of the world's leading developed and Paris climate change agreement, with any other challenge". emerging economies. President Barack Obama hailing the accord as the "moment we finally The Paris accord aims to limit global Until September 03 only 24 of the decided to save our planet". The temperature increases to two degrees signatories had ratified the accord, move by the world's two biggest centigrade, and will be triggered after including France and many island polluters is a major step forward it is ratified by at least 55 countries, states threatened by rising sea for the 180-nation deal, which sets accounting for 55 percent of global levels but who only produce a tiny ambitious goals for capping global greenhouse gas emissions. The US proportion of the world's emissions. warming and funnelling trillions and China are together responsible Ban said there would be high-level of dollars to poor countries facing for some 40 percent of the world's talks in New York later this month to climate catastrophe. emissions, so their participation is push more countries to sign up, and crucial. told the two leaders they had "added Obama and his Chinese counterpart powerful momentum" to efforts to Xi Jinping handed ratification China's Communist-controlled bring the accord into force. documents to UN chief Ban Ki- parliament ratified the agreement moon, who said he was now and President Xi said the Asian Climate is one of the few areas where optimistic the agreement will be giant was "solemnly" committed the world's two most powerful in force by the end of this year. At to the issue. "Hopefully this will countries -- who are at loggerheads a ceremony in the Chinese city of encourage other countries to take on issues ranging from trade Hangzhou, Obama said climate similar efforts," he said in Hangzhou, disputes, cyberspying and the South July-September 2016 July-September 35 Regional News

China Sea -- are able to find common well below two degrees Celsius (3.6 although China is also obliged to cause. Campaigners welcomed the degrees Fahrenheit), and 1.5 C (2.7 have them peak by "around 2030". move, with WWF saying they had F) if possible, compared with pre- In its Paris commitment, the US sent "a very powerful signal that industrial levels. promised to cut its own emissions there will be real global action on For China, ratifying the agreement 26-28 percent below 2005 levels climate change". fits with Beijing's domestic political by 2025. During the negotiations agenda of being seen to make over the Paris deal Beijing stressed But some environmental groups say efforts to clean up the environment, the concept of "differentiated that the Paris pledges by China, the after years of breakneck industrial responsibilities" -- the idea that US and others fall far short of what development led to soaring air, developed countries should shoulder is needed to meet the goal of less water and the lion's share of the burden as ground pollution. they have polluted most since the The scourge is Industrial Revolution. estimated to have caused hundreds For its part the White House is of thousands of looking for the Paris accord to come early deaths, and into force during Obama's tenure, in is the source of part to burnish his climate legacy, mounting public but also to ensure it is not derailed anger. by the forthcoming US election. The administration has been careful to Under the Paris structure the agreement so that it can accord, China be enacted by Obama under existing has pledged to presidential authorities and without cut its carbon Congressional approval. than two degrees of warming. "This emissions per unit of GDP by 60- moment should be seen as a starting 65 percent from 2005 levels by 2030 Policymakers from Tokyo to point, not the finale, of global action and increase non-fossil fuel sources Stockholm have bitter memories of in primary energy consumption to George W Bush and his Republican on climate," said Greenpeace policy about 20 percent. Neither of those Party refusing to ratify the Kyoto adviser Li Shuo. The Paris pact requirements implies a commitment Protocol after it was agreed by Bill calls for capping global warming at to cut absolute levels of emissions, Clinton's adminstration. UK explores multi-billion pound free trade deal with China hancellor Philip Hammond has had been "global disappointment" I have heard here is very much that Cbegun discussions with China about the Brexit vote. this will mean more opportunity for on an ambitious free trade deal countries like China that are outside which could see greater access for Chinese state media reported earlier the European Union to do business major Chinese banks and businesses in the month that the Chinese with Britain," Hammond said. to the UK economy. The Chancellor Ministry of Commerce wants to do told the BBC it was time to explore a UK free trade deal. Hammond has "And as Britain leaves the European "new opportunities" across the now revealed that Britain is also keen. Union and is not bound by the rules world, including with China, one of It will be the first time the UK has of the European Union perhaps it the UK's biggest inward investors. embarked on such a major project will be easier to do deals with Britain with the second largest economy in in the future." I asked if that could That is despite a short term economic the world. And will raise concerns mean a free trade deal, bilaterally shock from leaving the European about cheap manufactured goods agreed with China which invested Union. He added that the EU is entering the UK more easily. over $5bn (£3.8bn) in the UK in not in "punishment mode" over the 2014. "Definitely I could see such Brexit vote. In return for greater access to the a thing," Hammond told me at the UK for its manufactured products meeting of G20 finance ministers in "What we now need to do is get on and investment, China would reduce Chengdu, China. with it in a way that minimises the barriers to Britain's service industries economic impact on the UK economy like banking and insurance as well "We already have a strategic in the short term and maximises as UK goods. That would be an partnership with China. "We have the benefit in the long term," Mr important source of export income hugely increased our trade with Hammond said, admitting that there for Britain. "The mood music that China, investment both by British July-September 2016 July-September 36 Regional News companies into China and by of finance ministers and central infrastructure projects is now a Chinese entities into the UK. "That's bank governors and, as you would global issue than Hinkley Point, about as far as we can go while we expect, they are very much focused the £18bn plan for a new nuclear are members of the European Union. on the economic challenges and the power station in Somerset backed "But once we are out of the European Union then I have no doubt on both sides we will want to cement that relationship into a firmer structure in a bilateral way that's appropriate. "That's something we will have to explore in the future."

Hammond said it would be "certainly appropriate" to start discussing a new deal over the next "couple of years" and the issue was raised here at Chengdu. What might a deal - which could only come after Britain had officially left the EU - look like? Senior government sources have told me that officials are looking at New Zealand's free trade agreement with China which took four years economic prizes available. "I have no by France's EDF energy company to negotiate and came into effect in doubt that everyone would want to and one of China's main nuclear 2008. see a very close relationship between suppliers.Hammond said that the the UK and the EU going forward government still supported the Care would have to be taken over because that will be good for the project, and that a final agreement security concerns and the possibility economies of the European Union would be signed "hopefully over the of China "dumping" cheap imports and the economy of the UK. in the UK - for example steel. As next few days" after an EDF board well as a positive reaction from "The challenge for us is to make sure meeting to agree the details. China, Hammond said that he did that other politicians who are not so At the G20 many countries are now not believe that the EU was trying to narrowly focused on the economic moving into practical mode - the teach the UK a lesson over the Brexit agenda also share that view and Chancellor campaigned against vote by making negotiations over recognise that it is important not leaving the EU and China argued trade difficult. just for Britain but for Europe as well that we continue working against it, but Hammond has clearly "I don't think they are in punishment closely together." No project better signalled that is now a matter for the mode," he said. "This is a meeting sums up how investment in major history books. ASEAN summit ends in Laos he Association of Southeast China has vowed to form a closer and Cooperation in Southeast Asia, TAsian Nations (ASEAN) community of shared future and the first to become ASEAN’s summit in Laos has ended with the with Southeast Asian nations strategic partner. In addition, China chairmanship of the ten member while commemorating the 25th was the first country to voice support bloc passing to the Philippines anniversary of their dialogue for the protocol of the treaty of in a brief ceremony. Philippines relationship. “If we say the past 25 Southeast Asia nuclear weapon free President Rodrigo Duterte said the years were a period of growth for zone, while being the first to start country was “ready and willing to the China-ASEAN relations, the free trade area negotiations with steer and guide the association”. upcoming 25 years will be a period of ASEAN. maturity, facing new opportunities “All these showcase China’s steady In a meeting of “ASEAN Plus Three”, as well as new challenges,” Chinese resolution to develop relations with ASEAN members Brunei, Cambodia, Premier Li Keqiang said. ASEAN” and “the two sides’ strong Indonesia, Laos, Malaysia, Myanmar, will of cooperation and their vision Philippines, Singapore, Thailand, China, which established a dialogue to lead regional cooperation,” Li said. Vietnam also met with leaders from relationship with ASEAN in 1991, China Japan and South Korea. was the first to ink the Treaty of Amity On the issue of financial security July-September 2016 July-September 37 Regional News

cooperation, Li said that countries called on countries to cherish the which includes ASEAN Plus Three should learn a lesson from financial current “generally stable” security and representatives from Australia, crises. He also said that China situation in Asia. He said China India, New Zealand, Russia, and the supports ASEAN’s leading role advocates common, comprehensive, United States.

In his final news conference in Laos on on September 08, Obama was asked about the U.S. military prison at Guantanamo Bay, which has still not closed despite the U.S. president stating that he would do so when he was first elected in 2008. Obama said a shrinking the population of the camp is priority and that the existence of Guantanamo Bay is “a recruitment tool for terrorist organizations”.

Obama was also asked about U.S. military actions in Laos during the in negotiations on the Regional cooperative and sustainable Asian Vietnam War. He replied that the Comprehensive Economic security, proposing to construct a dropping of cluster bombs was hardly Partnership (RCEP) and hopes security framework that benefits an effective method of winning over negotiations could be accelerated all sides so as to reduce repulsion, hearts and minds in the country. to promote free trade and trade avoid confrontation and properly facilitation. handle various sensitive issues to On his last day Obama also visited open a way of safe development a century-old Buddhist temple Li also said Asia’s prosperity and that conforms to regional reality. in Laos, talked to youngsters and development cannot do without As part of the ASEAN Summit, the attended the 11th East Asia Summit regional peace and stability and East Asia Summit also convened in the capital, Vientiane. Rise in cross-border trade to benefit businesses in South Asia: ADB mall traders and producers of well,” the report said. accounts for just 5 percent of total seasonal goods in South Asia trade, compared with 25 percent in S Allowing exporting customs to would see more benefits of regional the Association of Southeast Nations. exchange export declarations for integration, after the bloc moved to The ADB report said it is clear that commodities with the receiving enlarge the list of commodities that getting customs officials from the six importing customs on a daily basis could be traded. Customs officials countries of the SASEC programme leads to faster cross-verification of from Bangladesh, Bhutan, India, together reaps benefits. data such as declared value, quantity, the Maldives, Nepal and Sri Lanka classification, and so forth. Another project of the SASEC recently gathered in the Maldives Customs Subgroup has agreed that in May to discuss ways to help The countries had already agreed to field-level customs officials should companies and individuals do more allow exchange of export declarations meet at least once in every six cross-border business, faster and at for specific commodities with a months to talk about and decide the less cost. value of $15,000 or more at five next steps in improving cross-border border crossings. The crossings are: The officials agreed that more coordination and cooperation. Benapole, Bangladesh-Petrapole, commodities will be added to the “Boosting trade between the SASEC India; Banglabandha, Bangladesh- product list and the value of the countries would be a boon for all.” Kakarbitta, Nepal; Panitanki, cargo able to use export declarations India–Kakarbitta; Phuentsholing, The ADB report said countries in will be reduced, according to a Bhutan-Burimari, Bangladesh; and the sub-region trade amongst each write-up posted on the website of other much less than they trade Phuentsholing-Jaigaon, India. the Asian Development Bank. “This with countries outside South Asia, will benefit smaller-scale traders and South Asia is one of the most and much less than countries within producers of seasonal goods. And dynamic regions in the world, but it other sub-regions. Access to more more border crossings will be able is also one of the least economically markets throughout the region to exchange export declarations as integrated ones. Intra-regional trade provides opportunities for businesses July-September 2016 July-September 38 Regional News to grow, create jobs and ultimately Making sure that each checkpoint Bangladesh, Bhutan, India and helps create international economic along the route taken by the cargo Nepal, as it is gradually being ties that can outweigh geopolitical receives the data electronically means operationalised over the coming differences. truck drivers waste less time waiting months.” The agreement will allow for often numerous documents to a specific number of passenger and Bottlenecks for trade at the borders be processed in several offices. This freight vehicles to travel even more are common, cumbersome and automated data sharing is likely to easily between countries along expensive in much of South Asia. The be extended to Bhutan as well. India certain routes. number of import/export documents and Bangladesh and the time it takes to complete also plan to pilot them is high in the SASEC countries the electronic compared with global trends. It takes exchange of data an average 60 hours and costs $345 between their to export a standard container in the respective customs region, and 112 hours and $569 to administrations. import. This means, Time-consuming inspections among other and testing at borders delay cargo things, they can clearance, often meaning the loss ensure that cargoes of perishable goods like food and declared for export agricultural produce, and cause are the same as unnecessary congestion. Thethe goods that are actually imported In addition to these bilateral and ADB report said there has been on the other side of the border. This multi-country projects, the six some progress too. Officials from increased transparency will ensure countries of the SASEC Customs India and Nepal at the Maldives the right tariffs are charged and give Subgroup are also working on 20 meeting reported good progress in customs officials more time to target national projects. The national automating their customs systems potentially illicit cargoes. projects are supported by the ADB to allow electronic sharing of “Easier customs procedures mean training in areas such as customs customs transit data between the two that countries will be well placed valuation, risk management, trusted countries. They expect to test this to make the most of the landmark traders programs, national single system by end of 2016. Motor Vehicles Agreement between window and post clearance audit. Another step forward under BBIN deal he landmark BBIN motor vehicle Inland Customs Depot in east Delhi that had a GPS tracking device so Tagreement moved one step closer on 5 September. that the goods could be inspected for to reality after a trial run involving custom clearance in New Delhi, its The trial run was organised to a cargo truck from Bangladesh final port of call. The tracking system help develop the protocols for arrived in New Delhi on September allowed real-time monitoring of the implementing the agreement signed vehicle's journey. 05 without any glitch. The truck of by Bangladesh, Bhutan, India and Nazrul Transport Agency and Expo Nepal signed on 15 June last year to In India, the vehicle traversed more Freight Pvt Ltd from Bangladesh left facilitate cross-border movement of than 1,850km, through the states of Dhaka on 27 August and reached the both passenger and cargo vehicles in West Bengal, Jharkhand, Bihar, Uttar the region. On 28 Pradesh and Haryana to reach the August, the cargo ICD in Delhi. The truck was issued an vehicle reached e-permit for the trial run through an the Indian border online web-based system, according of Petrapole. to an official statement. A similar trial run of a cargo vehicle from India The consignment was conducted in November 2015 did not have from Kolkata to Agartala via Dhaka. to undergo any customs At present, cargo movement between clearance at Bangladesh and India has to go Petrapole. It was through trans-shipment process at fitted with an Benapole-Petrapole border, resulting electronic seal in delays and often damage of goods. July-September 2016 July-September 39 Regional News

Bhomra, Sheola, Thegamukh ports under BBIN to benefit region: Study evelopment of infrastructure at this port are developed properly, of the World Bank. This project has DSheola, Thegamukh and Bhomra businesses of both the countries will been taken for increasing the trade- land ports for regional connectivity highly be benefitted as import-exports commerce and export earnings, he under Bangladesh, Bhutan, India, costs will decrease considerably, said said, adding that there were only nine Nepal (BBIN) Initiative will not have the report conducted by China's land ports in the country but only any environmental and social impact, Yoohin and India's Vitti JV. Speaking two ports were in operation when the according to a joint China-India at the workshop shipping minister Awami League government came to feasibility study report. Shajahan Khan said the government power in 2009. Now there are 23 land "Economic activities will be expanded will develop Sheola, Thegamukh and ports in the country, he said. Bhomra land ports for the expansion and import-export costs will decrease Chairman of Bangladesh Land Port of regional trade and economic significantly. As a result, the people Authority (BLPA) Tapan Kumar activities. Development of three of the regional will be benefitted," Chakravorty chaired the opening ports will help expand Bangladesh's said the report placed in a National session of the daylong workshop trade with India, he added. Public Consultation Workshop on 6 on Environmental and Social September. The minister said the three land Assessment Studies of proposed Bhomra land port is very close to ports will be developed under BBIN Bangladesh Regional Connectivity India's Kolkata and if facilities of initiative with financial assistance Project. Asia's fintech hub: Singapore leads Hong Kong ingapore is rushing to reinvent industry. Singapore's fintech drive Britain's referendum vote to leave Sitself as Asia's financial technology, comes as its role as an offshore the European Union. "We already or fintech, hub to fend off a regulatory private banking centre is under threat have registered interest from UK- threat to its wealth management from a multi-billion-dollar money based companies to move to Asia industry and revive a sluggish laundering scandal in neighbouring as it's getting very crowded there," economy. State funding, light-touch Malaysia, and as Indonesia chases said Markus Gnirck, partner and co- founder of tryb, a fintech consultancy. "Brexit will probably accelerate a few of these conversations." Britain's soft approach to regulation and its influence on Europe would likely wane with Brexit and any new barriers that would create. A KPMG report said Singapore has been more aggressive in pursuing fintech opportunities, and tryb noted that all but a dozen of the around 210 fintech firms operating in Singapore have opened in the past two years - the fastest growth rate in Asia. However, Singapore's immigration laws are an obstacle, start-ups and consultants say, as measures to curb regulation and a recent move to allow undeclared money parked in the low- the number of foreign workers and start-ups to test financial products in tax city state. give priority to Singaporeans have left a controlled environment have put Also, Singapore's traditional shipping a shortage of talent. Singapore ahead of rival Hong Kong and manufacturing growth drivers to be Asia's fintech hotspot. And Singapore's banking regulations are faltering amid a global economic have created a risk averse culture Much like Uber, Airbnb and others slowdown and a slump in commodity that is at odds with the trial-and- have harnessed technology and prices and demand. Singapore is error approach of fintech start-ups. online social networking to disrupt attracting interest, too, from among But the city state's efforts are bearing taxi and hotel services, fintech the 60,000 or so fintech firms based fruit. SmartKarma, a start-up that firms are shaking up the traditional in London's near-$9 billion market operates a platform offering Asian banking and financial services - a trend likely to accelerate with institutional research and analysis on July-September 2016 July-September 40 Regional News demand, chose Singapore over Hong In Hong Kong, despite nearly $300 on account openings made it hard for Kong for its headquarters. million in fintech funding, start- the firm to take on customers. ups face tough regulatory hurdles In Singapore, any entity can operate Singapore state agency SPRING is say lawyers, consultants and fintech payment systems and e-wallets an investor in SmartKarma, and executives. There are fewer than government agency International 100 fintech firms in Hong Kong, without seeking approval, while rules Enterprise is helping the firm expand according to tryb. Hong Kong's rules introduced in Hong Kong last year overseas. With Moody's expecting and regulations make it difficult require firms to have a licence for Singapore's economy to grow at its to set up crowdfunding platforms, Stored Value Facilities, or a prepaid slowest pace since the global financial payment firms and peer-to-peer electronic cash or card. crisis, government officials are keen lending operations, and to secure Monetary Authority of Singapore to engage with new industries: one operating licenses. (MAS) managing director Ravi fintech entrepreneur in shorts and For example, Chinese peer-to-peer Menon said fintech firms would flip-flops says he keeps in touch by lender Jimubox spent nearly a year only be regulated when they grow WhatsApp with regulators and meets setting up in Hong Kong only to large enough to pose a risk to the them once a week. abandon the plan because strict rules traditional financial system. S. Korea rank 11th largest economy in 2015: WB outh Korea ranked 11th 2008 amid the global financial crisis. with $10.87 trillion and Japan with Sworldwide in Gross Domestic South Korea's advance was attributed $4.12 trillion. Germany, Britain and Product (GDP) in 2015, that makes mainly to lackluster performances by France followed with $3.36 trillion, the eleventh largest economy in the rival economies, such as Russia and $2.85 trillion and $2.42 trillion, world. They have ranked with its Australia, which were hit by plunging respectively. global standing rising two notches commodity prices. Rounding out the top 10 list were India from a year earlier, data showed on with $2.07 trillion, Italy with $1.81 16 August. trillion, Brazil with $1.77 trillion and According to the data by the World Canada with $1.55 trillion. Australia Bank, South Korea's nominal GDP came next to South Korea followed came to $1.38 trillion last year, up by Russia, with Spain ranking 14th from 13th place a year earlier. But with $1.19 trillion. Meanwhile, the the value was down 2.4 per cent from data also showed South Korea's per- $1.42 trillion the previous year. GDP, capita gross national income (GNI) the broadest measure of an economy's came in at $27,440 last year, or 46th performance, is the total value of Russia's GDP nose-dived 34.7 per worldwide, which was down four goods and services produced within cent on-year to $1.33 trillion in notches from the previous year. the economy in a given period. 2015, with the Australian economy South Korea's per-capita GNI in It is the first time in nine years that shrinking 7.9 per cent to $1.34 terms of purchasing power parity South Korea has regained its 11th trillion. The United States topped stood at $34,700 with its ranking place in the global GDP rankings. the global GDP list with $17.95 slipping six spots to 48th, according Seoul's standing tumbled to 15th in trillion last year, trailed by China to a news agency report. India to inject $3.4b in state banks to revive credit growth ndia will inject 229.15 billion required. Top lender State Bank of most state-run lenders - struggling Irupees ($3.41 billion) in 13 state- India will get 75.75 billion rupees in with a pile of stressed assets and run banks to help shore up the cash- capital, the finance ministry said in a strapped lenders and revive loan statement on July 19. Indian Overseas growth that has hit a two-decade Bank, which has the worst bad-loan low. The capital infusion is part ratio, is set to get 31.01 billion rupees. of New Delhi's plans to invest 700 A surge in bad loans and the full billion rupees in state lenders over implementation of global Basel III four years to March 2019. India's bank capital rules mean Indian banks Finance Minister Arun Jaitley has need billions of dollars of new capital. budgeted 250 billion rupees for bank While relatively better balance sheets recapitalisation this fiscal year, but are expected to make it easier for lower profits - are heavily reliant on he has committed to infuse more if private lenders tap financial markets, the government for funds. Rating July-September 2016 July-September 41 Regional News

agency Fitch reckons Indian banks Fourth-biggest state-run lender lender, will get 17.84 billion. Bank would need $90 billion in new capital Punjab National Bank, which stocks rose after the announcement, to meet Basel III requirements, with reported a record loss in the March with the state-bank index trading 0.4 about two dozen state-run banks quarter, will get 28.16 billion rupees, accounting for 80 percent of that the finance ministry said. Bank of percent higher in a Mumbai market figure. India, the third-biggest state-run that was down 0.1 percent. Canada approves $36b LNG project, eyes Asia anada approved on 27 and indigenous groups have opposed Prime Minister Justin Trudeau has CSeptember a massive Can$36 the plans. repeatedly said that the economy billion ($27 billion USD) project and environment should be pursued "The government approved the by Malaysia's Petronas to build in parallel, without sacrificing one Pacific Northwest LNG project," said a liquefied natural gas pipeline for the other. The project includes a along its Pacific Northwest coast, Environment Minister Catherine pipeline and two Petronas terminals targeting Asian markets. The project McKenna. "As the prime minister to ship gas to Asia. The gas terminals is the first deal by Canada's year- has emphasized, the only way to are to be built on Lelu Island, near old Liberal government that goes get resources to market in the 21st Prince Rupert on the Pacific coast. against environmentalists in the century is if it is done sustainably and Each will have a capacity of six million name of the country's economic responsibly. Today's announcement tons per year, with the possibility of interests. Environmental activists reflects this commitment," she said. adding a third down the road. Drop in Child Mortality : South-East Region ven a decade ago, child mortality Chan and Regional Director Dr statistics. Another driver has been Erate in the WHO South-East Asia Poonam Khetrapal Singh. the reproductive, maternal, newborn region was the highest and maternal mortality rate second highest among the six regions of the world health body. But due to continued efforts by the governments, timely interventions and growing public awareness, the region has performed better than the global averages over the years. Between 1990 and 2015, the region saw a 69 percent drop (the highest among the six regions) in maternal mortality rate and 64 percent fall in under-five child mortality rate, according to the WHO. In recognition of the region's efforts by all the 11 member In Bangladesh, maternal mortality and child health coverage. In the last states including Bangladesh, the came down to 176 per 100,000 live WHO on September 06 handed the five years, child immunisation and births in 2015 from about 399 in family planning coverage reached 94 achievement certificates to the health 2000 -- the fourth highest drop in ministers of the members states in percent and 73 percent respectively, the region, WHO data shows. Over which is among the highest in the Colombo, Sri Lanka, where the five- the same period, the mortality rate of day South-East Regional Committee region. However, challenges remain children aged under five fell to nearly for Bangladesh and the WHO South- meeting is underway. 38 from 88 per 1,000 live births, East Asia Region, which accounts for The certificates were given for and that of neonatal to 23 from 42. 26 percent of the world's population successful elimination of maternal One reason is that more and more and about 36 percent of the total and neonatal tetanus. In WHO term, mothers are now being attended annual births reported globally. The elimination does not mean zero cases, by skilled health personnel during regional decline in maternal and child but achieving a set target. Zahid pregnancy. Last year, 42 percent mortality rates still fall short of the Maleque, Bangladesh state minister births were attended by such skilled MDGs target of 75 percent reduction for health, received the award from professionals, up from 18 percent in of maternal mortality and 67 percent WHO Director General Dr Margaret 2007, according to the WHO country reduction of child mortality. July-September 2016 July-September 42 ICC HQs News Business issues recommendations on new global agreement to support e-commerce for SMEs usiness recommendations holistic package of trade disciplines, capacity building for e-commerce, Bon a proposed World Trade rules and assistance to boost micro, enabling MSMEs to get goods sold Organization (WTO) agreement small- and medium-sized business online to consumers more efficiently on e-commerce have been unveiled (MSMEs) e-commerce, with an (trade facilitation 2.0) and digital today at WTO headquarters in overriding objective to promote rules. Geneva, as part of the on-going inclusive growth. WTO business dialogue process International Chamber of launched in May this year. Commerce’s (ICC) Secretary General John Danilovich presented E-commerce for MSMEs the proposal on behalf of the world The proposal echoes calls from business organization during a business leaders for the WTO to play meeting of the ICC-led business a central role in underpinning an focus group, established by the WTO open, reliable and secure global digital to seek private sector views on new economy, and calls for the WTO to The proposal from business is built ways to strengthen the multilateral consider launching new talks on a around three pillars: connectivity and trade agenda. ICC Incoterms® rules: The mightiness of three capital letters ho would have guessed that limited to six commonly used terms 1967: Misinterpretations corrected a collection of three-letter in just 13 countries. The findings W ICC launched the third revision of the acronyms would have had such were published in 1923, highlighting Incoterms® rules, which dealt with an impact on the development disparities in interpretation. misinterpretations of the previous of international (and domestic) commercial transactions? 1928: Clarity improved version. Two trade terms were added to address delivery at frontier (DAF) To examine the discrepancies We can thank a group of industrialists, and delivery at destination (DDP). financiers and traders whose identified in the initial survey, a determination to bring economic second study was carried out. This 1974: Advances in air travel prosperity to a post-World War I time, the scope was expanded to the The increased use of air transportation era eventually led to the founding interpretation of trade terms used in gave cause for another version of the of the International Chamber of more than 30 countries. popular trade terms. This edition Commerce (ICC). With no global 1936: Global guidelines for traders included the new term FOB Airport system of rules to govern trade, it (Free on Board Airport). was these businessmen who saw the Based on the findings of the studies, opportunity to create an industry the first version of the Incoterms® This rule aimed to allay confusion standard that would become known rules was published. The terms around the term FOB (Free on Board) included FAS, FOB, C&F, CIF, Ex as the Incoterms® rules. We journey by signifying the exact “vessel” used. through 80 years of milestones for Ship and Ex Quay. 1980: Proliferation of container the commercial trade terms that 1953: Rise of transportation by rail have transformed the global trade traffic industry. Due to World War II, supplementary revisions of the Incoterms® rules were With the expansion of carriage 1923: ICC’s first sounding of suspended and did not resume again of goods in containers and new commercial trade terms until the 1950’s. documentation processes, came the need for another revision. After ICC’s creation in 1919, one of The first revision of the Incoterms® its first initiatives was to facilitate rules was then issued in 1953. It This edition introduced the trade international trade. In the early 1920’s debuted three new trade terms for term FRC (Free Carrier…Named at the world business organization set non-maritime transport. The new Point), which provided for goods not out to understand the commercial rules comprised DCP (Delivered actually received by the ship’s side but trade terms used by merchants. This Costs Paid), FOR (Free on Rail) and at a reception point on shore, such as was done through a study that was FOT (Free on Truck). a container yard. July-September 2016 July-September 43 ICC HQs News

1990: A complete revision Airport). It was considered sufficient 2010: Reflections on the contemporary trade landscape The fifth revision simplified the Free to use the general term FCA (Free Carrier term by deleting rules for Carrier…at Named Point) instead. Incoterms® 2010 is the most current Other provisions edition of the rules to date. This accounted for version consolidated the D-family of increased use rules, removing DAF (Delivered at of electronic Frontier), DES (Delivered Ex Ship), messages. DEQ (Delivered Ex Quay) and DDU (Delivered Duty Unpaid) and adding 2000: Filling a DAT (Delivered at Terminal) and gap in United DAP (Delivered at Place). Other States legislation modifications included an increased As a result of the obligation for buyer and seller to removal of the cooperate on information sharing 1941 definitions and changes to accommodate “string sales.” of the trade terms from the Uniform 2020: Looking ahead Commercial To keep pace with the ever evolving Code, the global trade landscape, the latest Incoterms® update to the trade terms is currently rules were able in progress and is set to be unveiled in to fill the gap. 2020. The Incoterms® 2020 Drafting Additionally, Group includes lawyers, traders changes were and company representatives from made to the around the world. The overall process clause DEQ will take two years as practical (Delivered Ex input on what works and what specific modes of transport (i.e., FOR; Quay) so that the could possibly be improved will be Free on Rail, FOT; Free on Truck, seller was no longer responsible for collected from a range of Incoterms® and FOB Airport; Free on Board arranging import clearance. rules users worldwide and studied. Celebrate International Day of Peace: nominate a Business for Peace candidate

he International Chamber of business success while acting in an the positive impact they could TCommerce (ICC) is celebrating ethically responsible way. collectively have on society.” International Day of Peace, a day Honourees are devoted to strengthening the ideals selected by an of peace, both within and among all independent nations and peoples. To mark the occasion, ICC and the Business for jury of Nobel Peace Foundation have announced Prize winners the opening of nominations for the in Peace and in 2017 Oslo Business for Peace Awards. Economics after a global nomination ICC national committees as well process by the as local chambers of commerce, Business for Peace members of the ICC World Chambers Foundation, ICC, Federation (WCF), United Nations UNGC and UNDP. Global Compact (UNGC) and United Nations Development Programme 2015 Business for (UNDP) local offices assist in the Peace Honouree Sarah Beydoun, Each year the International Day global nomination process for Creative Director of Sarah’s Bag said: of Peace is observed around the the Business for Peace Award by “If every small or medium enterprise world on 21 September. The Day’s leveraging their respective networks has a purpose that goes beyond theme for 2016 is “The Sustainable in the search for outstanding business profit and a mission to benefit the Development Goals (SDGs): Building people who have been able to achieve community it thrives in, just imagine Blocks for Peace”. The notion that July-September 2016 July-September 44 ICC HQs News business is a genuine force for good agenda.” During the event, Mr. This year, Nobel Prize winner and in the world is woven into the very Danilovich and over 60 prominent Honorary Chairman of ICC Tunisia, fabric of the UN’s 2030 development business leaders personally pledged Ouided Bouchamaoui, has joined agenda. to tune their respective business the award committee that also includes Peace and Economics Nobel Recognising the role of the private activities to support the Global Goals. Laureates Shirin Abadi, Leymah sector in implementing the SDGs at “The Oslo Business for Peace Award Gbowee and Michael Spence. the 2016 Business for Peace Summit in May, ICC Secretary General John is a vital recognition of global The deadline to receive nominations Danilovich said: “The notion that business leaders who unlock the online is 20 December 2016. The business is a genuine force for good positive power of business for the 2017 Honourees will be celebrated at in the world is woven into the very benefit of peace and prosperity,” Mr an Awards Ceremony in Oslo on 16 fabric of the UN’s 2030 development Danilovich said. May 2017. Business continues to support SDGs one year after entry into force

ast year, 20 of the world’s leading Goal 2: No hunger Ericsson partnered with the Earth Lbusinesses called on world leaders Institute and Millennium Promise to commit to working actively and to launch “Connect To Learn” - an constructively with the private sector education initiative that has provided to achieve the United Nations’ (UN) scholarships and ICT technologies Sustainable Development Goals to schools in remote, impoverished (SDGs) by 2030. areas worldwide. The project has been implemented in 22 countries Writing in the Financial Times at and has improved the lives of 50,000 the initiative of the International Nestle made a global commitment in students, especially girls. Chamber of Commerce (ICC), 2012 to help reduce the risk of under- Goal 5: Gender equality business leaders made it clear that nutrition through micronutrient fortification by delivering 200 billion effective implementation of the servings worldwide by 2016. In 2014, SDGs would require widespread the company delivered 183 billion support from the private sector. servings worldwide.

As heads of states gather 3rd week in Goal 3: Good health September in New York for the 71st UN General Assembly - a year after the formal adoption of the goals - Walmart aspires to train 1 million here are 17 examples of how business women around the world in delivered on its promise to provide agriculture, manufacturing and expertise and innovation to foster retail trade in emerging markets. sustainable development. By the end of 2015, the Walmart Pfizer has partnered with Gavi, an Foundation and Walmart helped Goal 1: No poverty international vaccine alliance, to fund the training of 540,102 women increase access to immunizations globally - 297,655 of them in the on an accelerated, affordable and agriculture value chain. sustainable basis. The company has committed to supply up to 740 Goal 6: Clean water and sanitation million doses of PCV13 to countries that carry the greatest burden of pneumococcal disease.

Goal 4: Quality education DuPont is working to improve the livelihoods of at least 3 million farmers and their rural communities P&G launched the not-for-profit by the end of 2020. The company water programme “Children’s Safe directly touched more than 347,000 Drinking” and has been working farmers in 2013. with a network of partners for July-September 2016 July-September 45 ICC HQs News

10 years to improve the health of Goal 10: Reduced inequalities billion gallons in 2014, which falls children in developing countries. In slightly below the company’s baseline 2014, 7 billion litres of clean drinking of 6.93 billion gallons. water were provided for children and families in need. Goal 13: Climate action

Goal 7: Renewable energy

MasterCard has partnered with UN Women to provide half a million Nigerian women with identity cards enabled with electronic payments IBM and AECOM worked together functionality. with the UN Office for Disaster Risk Novozymes has made considerable Reduction to develop a scorecard to investments in energy efficiency. The company works to reduce measure cities’ resilience to natural The company has reduced its CO2 economic inequality through the disasters. emissions by 100,000 and saved power of identity. $US12 million per year by deploying The scorecard will help cities 188 energy-saving projects across its Goal 11: Sustainable cities and improve preparedness to disasters by global sites between 2009 and 2014. communities reviewing policy and planning in 80 assessment categories. Goal 8: Good jobs and economic growth Goal 14: Life below water

Citi has developed an initiative called “Citi for Cities” to identify and implement innovative solutions Dow has collaborated with the Ocean Bechtel and partners have injected that help cities thrive during this Conservancy for more than 30 years more than US$78 million on local period of unprecedented urban to remove debris and pollutants from goods and services in 16 Peruvian transformation. oceans and waterways. In 2014, Dow towns through their “Las Bambas” volunteers in Taiwan helped remove project. The company helped raise US$862 more than 6,600 pounds of waste in The initiative has delivered thousands million to help finance the Panama Taipei, Hsinchu and Chiayi. of training hours to indigenous Metro, Central America’s first urban Goal 15: Life on land entrepreneurs. rail system.

Goal 9: Innovation and infrastructure Goal 12: Responsible consumption

Syngenta is promoting conservation practices based on minimum soil disturbance, crop rotation, Disney is planning to maintain permanent ground cover, and Pirelli aims to further reinforce potable water consumption at 2013 biodiversity enhancing landscape its commitment to research and levels at existing sites by 2018, and management. The company has development in all business segments develop water conservation plans projects in over 30 countries in Asia, in order to develop safer, lower for new sites. The company’s water Europe, Latin America and North environmental impact products. consumption was recorded at 6.89 America. July-September 2016 July-September 46 ICC HQs News

Goal 16: Peace and justice The Framework provides guidance Chevron established the “Angola on how business can respect and Partnership Initiative” in 2002, support the rule of law. partnering with international aid Goal 17: Partnerships for the goals agencies such as USAID and the UN Development Programme (UNDP) to help rebuild Angola after years of civil war. Baker & McKenzie has partnered with corporate leaders to develop a Business for the Rule of Law Framework document. Countdown begins to the 10th World Chambers Congress to not only showcase the country’s Chairman of Bharti Enterprises, capabilities and expertise but also Sunil Bharti Mittal; 2015 Nobel Peace boost essential two-way trade efforts. Prize Joint Winner and President of the Tunisian Confederation of eptember 19 marks the official Mr. Mihok will deliver a celebratory Trade, Industry and Handicrafts, Sone-year countdown to the 10th address to the Australian attendees, Ouided Bouchamaoui; Founder and World Chambers Congress (WCC). encouraging them to join the global Executive Chairman of the Institute Organised by the International forum next year. Following the for Economics and Peace, Steve Chamber of Commerce (ICC) World lunch, Mr. Mihok will meet with Killelea; and Chairman of CPH Chambers Federation (WCF) and the NSW Minister for Trade, Tourism Management and Deputy Chairman Sydney Business Chamber (SBC), the and Major Events and Minister for of Melco Crown Entertainment, next edition of the first-class chamber Sport, the honourable Stuart Ayres James Packer. and business networking event will MP. take place in Sydney, Australia from The engaging three-day programme The two leaders will discuss the 19-21 September 2017. is set to cover social, political, harbour city’s many competitive economic and environmental In celebration of the significant advantages and how business topics. The depth and breadth of milestone, WCF Chair Peter Mihok events, such as the Congress, are an the agenda makes the Congress a will join Australian bi-lateral important vehicle for boosting global valuable platform that collectively chambers and regional business trade. tackles today’s chamber and business council leaders at a lunch reception Also coinciding around the one- challenges. on 29 September 2016. The event year countdown is a groundbreaking will place at the New South Wales Through informative plenary partnership between the Business Chamber (NSWBC) office sessions, lively debates and interactive Confederation of Asia-Pacific in North Sydney. workshops, delegates will have the Chambers of Commerce and chance to gain new perspectives, SBC Chief Executive Officer Stephen Industry (CACCI), WCF and SBC. acquire industry insights, share Cartwright, host of the reception CACCI will incorporate its annual knowledge and exchange know-how. said: “The Sydney Business Chamber conference with the Congress and is honoured to be the co-organiser of become a strategic regional partner. Those prospecting unique ways such a prestigious event. The partnership will be showcased of reaching key decision-makers during CACCI’s 50th anniversary can also consider the Congress’s This is an excellent opportunity event in November 2016, which will numerous sponsorship options. A for SBC, as well as all Australian take place in Taipei, Taiwan. new feature for 2017 is a chance Chambers, to not only showcase the to sponsor one of the four World country’s capabilities and expertise The 10th World Chambers Congress Chambers Competition categories. but also boost essential two-way has attracted more than just a trade efforts.” strategic partner. Four world- The only awards programme of its renowned thought leaders have kind, the Competition recognises the “The Sydney Business Chamber is already been confirmed. As keynote most innovative projects undertaken honoured to be the co-organiser speakers, they will address some by chambers of commerce and of such a prestigious event. This is of the most pertinent and pressing industry from around the world. an excellent opportunity for SBC, global challenges. Speakers include Applications to participate are open as well as all Australian Chambers, Chairman of ICC and Founder and as of 4 November 2016. July-September 2016 July-September 47 ICC HQs News

How can business help tackle the refugee crisis rd week of September the “Increasingly we are hearing the United Nations (UN) hosts voice of the private sector in the its first high-level summit in discussion about refugees. We can 3response to the global refugee crisis and should draw on its resources and unfolding across Europe, the Middle the innovation it can bring. East and Africa. According to the UN High Paul Polman Commissioner for Refugees CEO (UNHCR), 60 million people, Unilever including 19.5 million refugees, ThyssenKrupp AG have been displaced by conflict “Employing refugees is not a in 2015. Next week’s summit will solution to the shortage of skilled quite rightly - focus on government Filippo Grandi workers, but it is an extremely efforts to diminish the suffering of High Commissioner for Refugees important contribution to successful people forced to flee conflict and integration and part of our corporate support solutions for the resulting United Nations responsibility. Training is key to widespread societal disruption. United Nations this as the commitment needs to be But the role of the private sector in worthwhile for both sides in the long tackling the refugee crisis should not term.” be understated. “States and the private sector must help to create jobs both for refugees Companies of all sizes and from and natives through investments in all sectors have already pledged to and free trade regimes.” respond to the refugee crisis through a series of initiatives - from funding campaigns through to delivering Peter Sutherland essential training programmes. As Special Representative of the the world business organization, Secretary-General for International ICC is encouraging companies to do Migration Heinrich Hiesinger more where they can based on their United Nations CEO own assets and capabilities. Vodafone ThyssenKrupp AG International Chamber of Commerce Here are nine views that pinpoint “The Vodafone Foundation Instant how business can take action to Classroom puts the best technology “This is an important moment assist refugees and help manage mass that educators have to offer into for expanding private sector migration. the hands of children and young involvement in tackling the short- people living in the toughest of and long-term impacts of mass World Bank Group environments.” migration. We are committed to “We need much more than political working with governments to help solutions to end conflict. We need mobilise private sector resources and to create jobs first and foremost… expertise in addressing the global Boosting economic growth and refugee crisis.” creating jobs in fragile settings is an urgent task.”

Andrew Dunnett Director Vodafone Foundation Unilever John Danilovich “The Unilever Foundation has Secretary General developed a more strategic International Chamber of Commerce Jim Yong Kim approach to support our partners Corrs Chambers Westgarth President on humanitarian response. We are World Bank Group working with them on preparedness, “It’s time for us to focus on the United Nations High Commissioner relief and rehabilitation post an enormous potential of our fellow for Refugees emergency.” human beings so cruelly forced from July-September 2016 July-September 48 ICC HQs News their homes and families. Enough CEO EU countries.” of the blame game. Let’s get on with Corrs Chambers Westgarth doing what we do best - helping those who need a hand.” First Vice-Chairman International Chamber of Commerce International Monetary Fund “Migrants can boost a country’s labour force, encourage investment and boost growth. Preliminary IMF Christine Lagarde calculations show a modest positive Managing Director John WH Denton AO impact on growth from migrants in International Monetary Fund Four ways to boost global trade his year’s G20 Leaders Summit delay. using online platforms to be five concluded 2nd week of times more likely to export than T 2. Stop protectionism in its tracks September in Hangzhou, China. The those in the traditional economy, event took place against a backdrop A recent WTO report cited that ICC believes efforts to level the of sluggish GDP growth and growing between mid-October 2015 and global trading field must start with a concerns about stagnating living mid-May 2016, G20 economies had concerted push to address remaining standards - leading G20 leaders to introduced new protectionist trade barriers to Internet-enabled place a heavy emphasis on global measures at the fastest pace seen commerce. trade as an engine of inclusive since 2008. growth and job creation in their 4. Make the case for why trade ICC has been clear that tackling annual communiqué. matters protectionism should be a first order ICC, the world business organization, priority for the G20 and has called on ICC couldn’t agree more with the commended the G20’s focus on the G20 to lead by example when it G20’s analysis that the benefits of strengthening the global trading system, but turning words into action has not always been a strong point for the G20 when it comes to trade. Here are four ways we think the G20 can take meaningful action in the coming months to revitalise world trade as a driver of growth, opportunity and jobs: 1. Ratify the WTO’s Trade Facilitation Agreement Four G20 countries are yet to ratify the World Trade Organisation’s comes to refraining from introducing trade and open markets must be landmark Trade Facilitation new trade barriers. communicated to the wider public Agreement forged in 2013. more effectively. But amid souring 3. Spearhead talks on digital trade ICC has called for the deal to be public opinion on trade in many of ratified and implemented without In a letter to the Financial Times the world’s largest economies what is delay to facilitate access to global published Monday, ICC Secretary the best way to explain how and why markets by reducing unnecessary red General John Danilovich said trade matters for all? tape at borders. that spearheading talks on a new Launched earlier this year, ICC’s e-commerce agreement under The deal could add more than US$1 #TradeMatters campaign aims to the auspices of the World Trade trillion to global trade flows, creating promote a balanced and evidence- Organisation could “unleash a new 20 million jobs in the process. based debate on the role of trade in era of genuinely inclusive growth”. G20 governments need to lead by today’s economy. One based on fact example in ensuring this agreement With studies showing the growth of and experience rather than the myth is implemented without further small- and medium-sized enterprises and hearsay of political campaigns. July-September 2016 July-September 49 ICC HQs News

As part of the campaign we want your business? Where do you need us including a one-line description of to tell your trade story: what does help to better access international your company and why trade matters importing or exporting mean for markets? To submit your story, email to you: [email protected] 3 steps to enable e-commerce for small business ith global trade flows flat lack exposure to information, as well SMEs could see their cross-border Wlining, the Internet and digital as technology products and services. sales increase by 60-80% in some technologies have a key role to play They possess little awareness of the economies. in boosting global commerce in e-commerce ecosystem as a whole. support of inclusive growth. The In the United Kingdom for example, 3. Simplify rules and regulations Internet is rapidly breaking down 38% of small business owners with Did you know that 46% of European traditional barriers to international no website say they lack knowledge companies that export cross-border trade, making it easier for small on how to use digital technology. say the legal framework is one of the businesses to go global for the first More development in training most difficult barriers to overcome? time. programmes across the globe is Dealing with different rules and International Chamber of required to increase digital literacy regulations for VAT tariffs, import Commerce (ICC) Secretary General among consumers and businesses. John Danilovich is in Silicon Valley duties, data privacy and protection 2. Facilitate speedy and cost-effective at the 1st week of Auguat for a series is a daunting obstacle for many small delivery of high-level meetings with tech businesses. giants and startups on how we can When it comes to exporting products Standardization and simplification accelerate the development of digital via online platforms, SMEs continue of legal requirements could boost trade for the benefit of all. to face trade facilitation challenges. e-commerce sales and allow more Such challenges include burdensome Here is our vision on how to promote SMEs to go online. According to small business growth through customs administration and long and the Information Technology and e-commerce and digital trade in expensive delivery. In Europe, 15% three simple steps. of companies selling domestically Innovation Foundation (ITIF), refrain from going global because decreasing barriers to cross-border 1. Enhance awareness and training of excessive transportation costs. data flows would increase GDP in Many small businesses worldwide By simplifying customs procedures, the United States by 1%. ICC and UN Global Compact align efforts to mobilize business on SDGs

he International Chamber of The signing took place on the side- Global Compact were lead organisers TCommerce (ICC) and the United lines of the High-level Political Forum of the SDG Business Forum along Nations (UN) Global Compact on July 19 announced a partnership to improve awareness, opportunities and participation of the private sector in support of the UN 2030 Agenda for Sustainable Development and the achievement of the Sustainable Development Goals (SDGs). Following the opening of a special SDG Business Forum , John Danilovich, ICC Secretary General and Lise Kingo, Executive Director of the UN Global Compact, signed a Memorandum of Understanding (MoU), stressing, among other things: the need to enhance UN on Sustainable Development (11-20 engagement with business around the with the United Nations Department July 2016), a now annual platform SDGs, and the potential for further of Economic and Social Affairs and increasing business and industry for reviewing progress and guiding engagement in the implementation global efforts on the achievement of the ICC-led Global Business Alliance of the 2030 Agenda. the SDGs by 2030. ICC and the UN for 2030. July-September 2016 July-September 50 ICC HQs News

More chambers join ICC WCF CO Accreditation Chain lose to 20 chambers of commerce - Chambre de Commerce et - Abu Dhabi Chamber of Commerce Chave received approval to d’Industrie de Colmar et du and Industry become the most recent additions Centre-Alsace - Ajman Chamber of Commerce to the International Certificate of Origin (CO) Accreditation Chain. In Italy (UnionCamere as NCB): - RAK Chamber of Commerce Stockholm Chamber of Commerce, - Chamber of commerce industry, The international CO verification the Commercial Association of handicraft and agriculture of website underpins the CO chain Paraná (Associação Comercial Bologna and is a service which is exclusively do Paraná ACP (Brazil), Tehran available to accredited chain Chamber of Commerce (Iran), and - Chamber of commerce industry, local chambers from France, Italy and the United Arab Emirates were all announced as new members during a recent ICC WCF International CO Council meeting which brought together more than 50 CO experts from 37 countries. The Council’s new chairmanship, led by Peter Bishop, Deputy CEO of the London Chamber of Commerce and supported by Martin Van der Weide, Policy Manager on export documents at the Netherlands Chamber of Commerce and Chair of the CO Accreditation committee, made the announcement. members. The site allows Customs Welcoming the new members, Mr. handicraft and agriculture of authorities to verify online the van der Weide said that the CO Genova authenticity of COs issued by Chain was evidence of how the - Chamber of commerce industry, participating chambers. global chamber community worked handicraft and agriculture of together and provided a robust Lucca Further development of the site will structure for the chain’s operations in be led by Luc Dardaud, Manager of - Chamber of commerce industry, countries like France, Italy and UAE the Trade Facilitation department at handicraft and agriculture of through the creation of national the Paris Ile de France Chamber of Padova coordinating bodies (NCB). Commerce, who chairs the electronic The new members are: - Chamber of commerce industry, CO Task Force, helping chambers handicraft and agriculture of to address their progression to - ACP - Associação Comercial do Udine electronic CO and e-customs issues. Paraná (Brazil) - Chamber of commerce industry, The next International CO Council - Tehran Chamber of Commerce handicraft and agriculture of meeting takes place in Rome on 16 (Iran) Arezzo November 2016. Council chairman - Stockholm Chamber of Commerce - Chamber of commerce industry, Peter Bishop has urged as many (Sweden) handicraft and agriculture of CO issuing chambers as possible to attend. In France (Paris Ile-de-France Ferrara Chamber of Commerce as NCB): - Chamber of commerce industry, "Issuing documents relating to origin is a crucial element of world trade - Chambre de Commerce et handicraft and agriculture of Vicenza and chambers have an important d’Industrie de la Vienne role to play," Mr van der Weide said. - Chamber of commerce industry, - Chambre de Commerce et " By sharing knowledge and best d’Industrie de Strasbourg et du handicraft and agriculture of practices, and making systems as Bas-Rhin Rome easy and efficient for business, we - Chambre de Commerce et In UAE (Dubai Chamber of are playing our part in growing and d’Industrie Sud Alsace Mulhouse Commerce as NCB): harmonizing world trade." July-September 2016 July-September 51 WTO News Bangladesh ratifies Trade Facilitation Agreement angladesh has ratified the Botswana, Trinidad and Tobago, the the request of developing and least- BTrade Facilitation Agreement, Republic of Korea, Nicaragua, Niger, developed country members to help becoming the 94th member of the Belize, Switzerland, Chinese Taipei, ensure that they receive the assistance WTO and 12th least developed China, Liechtenstein, Lao PDR, needed to reap the full benefits of the country (LDC) to do so. Bangladesh’s New Zealand, Togo, Thailand, the TFA and to support the ultimate goal WTO ambassador Shameem Ahsan European Union (on behalf of its 28 of full implementation of the new submitted his country’s instrument member states), the former Yugoslav agreement by all members. Further of acceptance to WTO Director- Republic of Macedonia, Pakistan, information on TFAF is available at General Roberto Azevêdo on 27 Panama, Guyana, Côte d’Ivoire, www.TFAFacility.org. September. Grenada, Saint Lucia, Kenya, Myanmar, Norway, Viet Nam, On 8 June the WTO hosted an Concluded at the WTO’s 2013 Bali Brunei, Ukraine, Zambia, Lesotho, experience-sharing event to help Ministerial Conference, the TFA Georgia, Seychelles, Jamaica, Mali, members identify best practices contains provisions for expediting Cambodia, Paraguay, Turkey, Brazil, and the challenges faced by the movement, release and clearance Macao China, the United Arab WTO members in establishing of goods, including goods in transit. Emirates, Samoa, India, the Russian or maintaining national trade It also sets out measures for effective Federation, Montenegro, Albania, facilitation committees. It was the cooperation between customs and Kazakhstan, Sri Lanka, St. Kitts and first such event to discuss how best other appropriate authorities on trade Nevis, Madagascar, the Republic of to implement specific commitments facilitation and customs compliance Moldova, El Salvador, Honduras, under the TFA. Experts from issues. It further contains provisions Mexico, Peru, Saudi Arabia and more than 20 countries and five for technical assistance and capacity Bahrain. international organizations made building in this area. presentations at the workshop; the The TFA broke new ground for presentations and other information The TFA will enter into force once developing countries and LDCs on the event are available here. two-thirds of the WTO membership in the way it will be implemented. has formally accepted the Agreement. For the first time in WTO history, Implementation of the WTO Trade Bangladesh’s acceptance means the requirement to implement the Facilitation Agreement (TFA) has over 85 per cent of the ratifications Agreement was directly linked to the the potential to increase global needed for entry into force have now capacity of the country to do so. In merchandise exports by up to $1 been received. addition, the Agreement states that trillion per annum, according to assistance and support should be the WTO’s flagship World Trade In addition to Bangladesh, the provided to help them achieve that Report released on 26 October 2015. following WTO members have capacity. Significantly, the Report also found also accepted the TFA: Hong Kong that developing countries will benefit China, Singapore, the United States, A Trade Facilitation Agreement significantly from the TFA, capturing Mauritius, Malaysia, Japan, Australia, Facility (TFAF) was also created at more than half of the available gains. Trade in 2016 to grow at slowest pace since the financial crisis orld trade will grow more Main Points World merchandise major developing economies as well Wslowly than expected in 2016, trade volume is expected to grow as in North America. expanding by just 1.7%, well below 1.7% in 2016, accompanied by real the April forecast of 2.8%, according GDP growth of 2.2% at market Trade in 2017 is expected to grow to the latest WTO estimates. The exchange rates. between 1.8% and 3.1%, a range being provided to reflect potential forecast for 2017 has also been This would be the slowest pace of changes in the relationship between revised, with trade now expected to trade and output growth since the trade and output. grow between 1.8% and 3.1%, down financial crisis. from 3.6% previously. With expected Certain trade-related indicators have global GDP growth of 2.2% in 2016, Trade growth was weaker than improved, including export orders this year would mark the slowest expected in the first half of 2016 and container port throughput, but pace of trade and output growth due to falling import demand and overall momentum in trade remains since the financial crisis of 2009. slowing GDP growth in several weak. July-September 2016 July-September 52 WTO News

World merchandise trade volume 15 but has decelerated since then. countries and the shift in the ratio is expected to grow 1.7% in 2016, The latest figures are a disappointing of trade and GDP growth makes it accompanied by real GDP growth development and underline a recent more difficult to forecast future trade of 2.2% at market exchange rates. weakening in the relationship growth. Therefore, the WTO is for This would be the slowest pace of between trade and GDP growth. the first time providing a range of trade and output growth since the Over the long term trade has scenarios for its 2017 trade forecast financial crisis. Trade growth was typically grown at 1.5 times faster rather than giving specific figures. weaker than expected in the first than GDP, though in the 1990s world As Chart 1 below shows, the current half of 2016 due to falling import merchandise trade volume grew trend in the relationship between demand and slowing GDP growth in about twice as fast as world real GDP trade growth and world GDP is several major developing economies at market exchange rates. In recent lower than observed over the last as well as in North America. years however, the ratio has slipped three decades. towards 1:1, below both the peak of Since the WTO’s April 2016 Chart 1: Ratio of world merchandise the 1990’s and the long-term average. trade volume growth to world forecast was issued, some important real GDP growth, 1981-2016 If the revised projection holds, 2016 downside risks have materialized, (% change and ratio) will be the first time in 15 years that most notably a period of financial turbulence that affected China and other developing market economies early in the year, but which has since eased. Recent movements in trade by level of development are illustrated by Chart 2, which shows seasonally- adjusted quarterly merchandise trade indices in volume terms (i.e. adjusted to account for fluctuations in prices and exchange rates.)1

Import demand of developing economies fell 3.2% in Q1 before staging a partial recovery of 1.5% in Q2. Meanwhile, developed the ratio between trade growth and economies recorded positive import Trade in 2017 is expected to grow world GDP has fallen below 1:1. growth of 0.8% in Q1 and negative between 1.8% and 3.1%, a range being Historically strong trade growth growth of -0.8% in Q2. provided to reflect potential changes has been a sign of strong economic in the relationship between trade Chart 2: Volume of merchandise growth, as trade has provided a and output. Certain trade-related exports and imports by level of way for developing and emerging indicators have improved, including development, 2012Q1-2016Q2 economies to grow quickly, and export orders and container port Seasonally adjusted volume indices, strong import growth has been throughput, but overall momentum 2012Q1=100 in trade remains weak.

The downgrade follows a sharper than expected decline in merchandise trade volumes in the first quarter (-1.1% quarter-on- quarter, as measured by the average of seasonally-adjusted exports and imports) and a smaller than anticipated rebound in the second quarter (+0.3%).

The contraction was driven by slowing GDP and trade growth in developing economies such as associated with faster growth in Overall, world imports stagnated in China and Brazil but also in North developed countries. However the first half of 2016, falling 1.0% America, which had the strongest the increase of the number of in Q1 and rising 0.2% in Q2. This import growth of any region in 2014- systematically important trading translated into weak demand for July-September 2016 July-September 53 WTO News

exports of both developed and mostly reversed by a 3.2% rise in Effects over the longer term remain developing economies. For the exports in Q2. to be seen. Economic forecasts for year-to-date, world trade has been the UK in 2017 range from fairly essentially flat, with the average of There are some indications that optimistic to quite pessimistic. Our exports and imports in Q1 and Q2 trade may be picking up in the forecast assumes an intermediate declining 0.3% relative to last year. second half of 2016, although the case, with a growth slowdown next pace of expansion is likely to remain year but not an outright recession. These results are largely in line with subdued. Container port throughput the signals given by the WTO’s World has increased (Chart 4), export Table 1 below summarizes the WTO’s Trade Outlook Indicator (WTOI), a orders have risen in the United revised trade forecast. According to new tool launched in July to provide States, and nominal trade flows in these estimates, world merchandise “real time” information on trends in US dollar terms have stabilized, but trade volume will grow more slowly global trade. At that time the WTOI numerous risks remain. than world GDP at market exchange indicated that world merchandise rates in 2016 (1.7% compared to The outlook for the remainder of this trade might rebound in Q2 but 2.2%) would likely remain below trend. year and next year is affected by a number of uncertainties, including Exports of developed countries Chart 3: Volume of merchandise financial volatility stemming from are expected to outpace those of exports and imports by region, changes in monetary policy in developing economies this year, 2012Q1-2016Q2 Seasonally adjusted developed countries, the possibility 2.1% compared to 1.2%. On the volume indices, 2012Q1=100 that growing anti-trade rhetoric will import side, developing countries are expected to register sluggish growth of 0.4% compared to 2.6% for developed countries..

The biggest downward revision to imports from our April forecast for 2016 applies to South America (-8.3% compared to -4.5% previously) as the recession in Brazil intensified. This was followed by North America, where import growth was revised down from 4.1% to 1.9% as GDP growth came in below earlier projections. Asian import growth The stagnation of world merchandise increasingly be reflected in trade was also scaled back to 1.6% from trade disguises strong shifts at the policy, and the potential effects of the 3.2%, while our forecast for Europe regional level, which are illustrated Brexit vote in the United Kingdom, was revised upward from 3.2% to by Chart 3. The most striking feature which has increased uncertainty 3.7%. of this chart is the steep decline about future trading arrangements in in imports of resource-exporting Europe, a region where trade growth Chart 4: Container shipping regions over the last two years, has been relatively strong. throughput index, January 2007 - driven by falling commodity prices July 2016 Seasonally adjusted trend and declining export revenues. The UK referendum result did index, 2010=100 South America and Other regions not produce an (comprising Africa, the Middle immediately East and the Commonwealth of observable downturn Independent States) arrested their in economic declines in Q2 of 2016 while imports activity as measured of North America and Europe by industrial both dipped in the latest quarter. production or Meanwhile, Asian imports declined employment; the by 3.4% in Q1 against a backdrop of main impact was concerns about slowing growth in a 13% drop in the China, before rebounding to 1.3% exchange rate of the growth in Q2 as these concerns pound against the eased. The 3.3% decline in Asian US dollar and an 11% exports in Q1 mirrored the drop in decline in its value Asia on the import side, but this was against the euro. July-September 2016 July-September 54 WTO News

Export growth in 2016 was Table 1: Merchandise trade volume particularly commodities such downgraded for most regions, with and real GDP, 2012-2017 a as oil. If this trend continues for the strongest revisions applied to Annual % change the remainder of the year, world Asia (0.3% compared to 3.4% in April) and North America (0.7% compared to 3.1%). Meanwhile, South America’s export growth is expected to be stronger than previously forecast (4.4% compared 1.9%), benefitting from favourable exchange rate movements. Even with the downward revision to our estimates, risks to the forecast remain mostly on the downside.

A range of estimates have been provided for 2017 to reflect the increasingly uncertain relationship between trade and output growth. World trade growth could be as high as 3.1% next year if it regains some of its earlier dynamism. However, it could also be as low as 1.8% if the ratio of trade growth to GDP growth continues to weaken.

Estimates of export growth range from 1.7% to 2.9% for developed countries and from 1.9% to 3.4% for developing economies in 2017. On the import side, developed countries could see trade growth of between 1.7% and 2.9% while developing countries expand by between 1.8% It should be noted that the trade merchandise trade growth in dollar and 3.1%. forecasts in Table 1 relate to changes terms could exceed trade growth in the quantity of goods traded rather in volume terms in 2016. Trade A number of reasons have been than changes in their dollar value. In developments in current dollar terms advanced to explain the decline in the 2015, merchandise trade volumes are shown for selected economies in ratio of trade growth to GDP growth continued to grow slowly despite the Chart 6. in recent years, including the changes sharp 14% decline in the dollar value in the import content of demand, of world trade, which was largely due Chart 5: Effective exchange rates and absence of trade liberalization, to the appreciation of the US dollar. crude oil prices, Jan. 2012 - Jul. 2016 creeping protectionism, a contraction As chart (Indices, January 2012=100). of global value chains (GVCs), and 5 below possibly the increasing role of the shows, the digital economy and e-commerce, dollar has but all have likely played a role. started to Whatever the cause, the recent depreciate run of weak trade, and economic, again in growth suggests the need for a the first better understanding of changing half of global economic relationships. 2016, with The WTO, and other international an inverse organizations, are working hard to effect on understand this current evolution values of and its implications for continued traded growth. goods, July-September 2016 July-September 55 WTO News

WTO opens new Reference Centre in Bhutan new WTO Reference Centre Regional Trade and Industry Offices, institutions and the general public. Awas inaugurated by H.E. Lyonpo representatives of Bhutan’s Chamber Lekey Dorji, Bhutan’s Minister of of Commerce and Industry and The Department of Trade in Economic Affairs, at the Department other agencies. collaboration with the WTO also of Trade in Thimphu, Bhutan, on 14 organized a day-long seminar on September 2016. The Reference Centre was established the multilateral trading system and with technical assistance from the provided two days of training on The inauguration was attended by WTO and will serve as a centre of WTO databases, document search Gerardo Thielen and Juneyoung Lee information on WTO issues and facilities, trade-related information from the WTO, various government international trade for government and other resources available in the representatives, directors of officials, the private sector, academic Reference Centre. WTO announces outcome of 2016 Essay Award for Young Economists he winner of the 2016 WTO 2016. The paper by Matthieu Bellon trade liberalization, inequality TEssay Award for Young focuses on the dynamic effect of trade initially increases and peaks after Economists is Matthieu Bellon of liberalization on wage distribution. three years, but eventually falls back Columbia University. His paper, to half of its peak level in the longer entitled “Trade Liberalization and It develops a dynamic general term. Inequality: a Dynamic Model with equilibrium model with worker and The paper by Eunhee Lee investigates the effect of international trade on inequality and shows the mechanism through which a reduction in trade costs can increase inequality in developing countries.

This paper shows that although the reduction of trade costs produces overall welfare gains for a country as a whole, inequality between skilled and unskilled workers increases because wages for high-skilled occupations rise more than wages in low-skill occupations.

The paper shows that inequality between workers with different levels of education increased due to trade shocks in both high- and low-income countries between 2000 Firm and Worker Heterogeneity”, firm heterogeneity. The paper finds and 2010. Although the paper does that trade liberalization increases was ranked first by the Selection not address policy implications, it overall welfare and provides firms Panel. He receives a prize of CHF highlights that understanding these with both new export markets and 5,000. mechanisms and effects is key to new sources of competition. The panel also awarded an crafting better policies to avoid or honourable mention to Eunhee Expanding high-paying firmsminimize the negative social impacts Lee of Yale University for her increase wages to recruit better of trade opening. work entitled “Trade, Inequality, workers at a faster rate. Workers in Developing and implementing such and the Endogenous Sorting of the firms threatened by competition policies would provide a better Heterogeneous Workers”. accept wage cuts to delay their employers’ exit from the market and chance of maintaining support for The outcome of the Essay Award was to keep their job. open trade since trade continues to announced at the annual meeting be beneficial overall for all countries of the European Trade Study Group Using firm-worker data from France, and all occupations and types of in Helsinki on 8-10 September the author shows that, following worker. July-September 2016 July-September 56 About ICC Bangladesh International Chamber of Commerce (ICC) - The world business organization was founded in 1919 by a few visionary business leaders of Europe immediately after the First World War; having its HQrs. in Paris. ICC has been promoting Free Market Economy, formulating various rules and guidelines for cross border trade and investment. ICC’s 6.5 million member companies in over 130 countries have interests spanning in every sector of private enterprise. ICC works in close cooperation with national governments and multi-national institutions such as G-8/G-20, World Bank, WTO, Asian Development Bank, UNCTAD, OECD and several UN agencies for promotion, protection and development of world economy. Bangladesh National Committee of ICC, established in 1994, is comprised of major Chambers of Commerce & Industry, Business Associations, Stock Exchange, Banks, Non-banking Financial Institutions, Insurance Companies, Trans-national companies, Law Firms and large Corporate Houses having significant interest in international trade. The activities of ICC Bangladesh include promotion of foreign trade and investment, trade policy reviews, business dialogues, seminars & workshops both at home and abroad on related policy issues, harmonization of trade law & rules, legal reforms, updating businesses with the ICC rules & standards for cross border business transactions. ICC Bangladesh has so far organized following regional & international conferences. • 10-11 November 2000: ICC Asia Conference on "Investment in Developing Countries: Increasing Opportunities" organized in Dhaka was inaugurated by the Prime Minister of Bangladesh and attended by a number of high profile dignitaries including the Thai Deputy Prime Minister & WTO Director General Designate, ADB President, UN-ESCAP Executive Secretary and Chinese Vice Minister for Foreign Trade & Economic Cooperation. More than 250 participants from 24 countries participated in this event. • 17-18 January 2004: International Conference on "Global Economic Governance and Challenges of Multilateralism" was held in Dhaka, coinciding with 10th Anniversary of ICC Bangladesh. The Conference was inaugurated by the Prime Minister of Bangladesh and Thai Prime Minister was the Keynote Speaker. WTO Director General, EU Commissioner for Trade, UNESCAP Executive Secretary, Governor of Japan Bank for International Cooperation, six Ministers from three continents, Bangladesh Ministers, ICC Chairman, ICC Vice Chairman, ICC Secretary General and more than 500 participants from 38 countries attended this event. • 27-28 September 2005: Regional Seminar on "Capital Market Development: Asian Experience". The Seminar held in Dhaka was inaugurated by the President of the People's Republic of Bangladesh and attended by Chairmen/CEOs of securities & exchange commissions, stock exchanges, capital market operators, financial institutions and investors from 15 Asian countries. • 13 April 2010: Conference on "Energy for Growth" was held in Dhaka coinciding with the 15 years of ICC's presence in Bangladesh. The Conference was inaugurated by the Finance Minister of Bangladesh and attended by ICC Global Chairman, Minister for Commerce of Bangladesh, Minister for Development Cooperation of Denmark and Adviser to the Bangladesh Prime Minister for Energy & Mineral Resources. Some 800 delegates from home and abroad including energy experts and international financiers from Australia, China, Denmark, India, Germany, Japan, Singapore, Switzerland, UK and USA. • 25-26 October 2014: International Conference on “Global Economic Recovery: Asian Perspective”, coinciding with the 20 years of ICC's presence in Bangladesh. The Conference was inaugurated by the President of the People's Republic of Bangladesh H.E. Mr. Md. Abdul Hamid. Minister for Finance & Minister for Commerce of Bangladesh, UNCTAD Secretary General, Ministers from Myanmar and Nepal; ICC Vice Chairman; ICC Secretary General; ICC Research Foundation Chairman; Director of ICC National Committees and more than 500 participants attended this event. As part of its activities, ICC Bangladesh has been organizing Workshops/Seminars on International Trade Finance, mainly for bankers Bangladesh, in various countries since 2014. So far such events have been organized in Kuala Lumpur in April, 2014; in Colombo in February 2015; in Kunming in August 2015 in Yangon in November 2015 and in Hanoi in February 2016. ICCB also organizes Certified Documentary Credit Specialist (CDCS), Certificate for Specialists in Demand Guarantees (CSDG) and Certificate of International Trade Finance (CITF) Examinations in Dhaka, conducted worldwide every year by ifs University College and endorsed by ICC Paris. ICC Bangladesh participates in most of the World Chambers Congress & ICC World Congresses held every two years and WTO Ministerial Meetings as well as ICC Regional Consultative Group Meetings.

National Secretariat International Headquarters Suvastu Tower (6th Floor), 69/1, Pantha Path 33-43 Avenue President Wilson Dhaka- 1205, Bangladesh, Fax: +880-2-964 1287 75116 Paris, France Tel: +880-2-964 1286, +880-2-967 66 98 Tel : + 33 1 49 532828 E-mail: [email protected] Fax : + 33 1 49 532859 Website: www.iccbangladesh.org.bd Website: www.iccwbo.org July-September 2016 July-September 57