January - March 2017 January - March 2017
A Quarterly Newsletter of ICC Bangladesh Volume 20 > Issue 77 A Quarterly Newsletter of ICC Bangladesh Volume 20 > Issue 77
Public Private Partnership Public Private Partnership for Economic Integration for Economic Integration Editor’s Note Public-Private Partnership for Regional Economic Cooperation
Asia remains the fastest-growing region on the planet. Growth in developing East Asia and Pacific is expected to remain resilient over the next three years, according to a recent World Bank report. As a growing region, Asia is the future of the world. By 2030, the Region will represent two-thirds of the global middle class. Southeast Asia will play an increasingly important role in the world economy. Some countries of this sub-region have been categorized as middle-income economies, and have started to turn their attention towards avoiding the middle-income trap. However, the region still faces significant risks to growth and countries need to take measures to reduce financial and fiscal vulnerabilities. The Executive Board Asia’s long standing traditions has helped to promote regional cooperation, however progress is uneven and hence it has left many unrealized opportunities. Recent estimates suggest that Asia Pacific Region is only achieving 47 per cent of its integration potential, and among the President subregions, the largest untapped potential for integration is in South Asia and in North and Mahbubur Rahman Central Asia. Boosting regional integration has the potential to both create economic dynamism and Vice Presidents facilitate shared prosperity through promoting greater market integration, seamless Latifur Rahman connectivity, financial cooperation and stability and improved living conditions. The Rokia Afzal Rahman implementation of the 2030 SDG Agenda requires a fundamental rethinking to set regional integration processes on a path that incorporates sustainability. Further, infrastructure connectivity plays a crucial role in bridging different areas of the Asian Members Region and enabling them to reap the full socio-economic benefits of economic cooperation A. H. Aslam Sunny and integration. Nevertheless, further improvement of infrastructure in the region faces A. K. Azad major challenges due to the lack of effective mechanisms for coordination and dialogue on regional integration through funding infrastructure projects. A. S. M. Quasem On the other hand, infrastructure development is central to the 2030 Agenda for Sustainable Aftab ul Islam Development with at least 12 out of the 17 Sustainable Development Goals (SDGs) having Anwar-Ul-Alam Chowdhury (Parvez) a direct link to infrastructure. Across the Asia Region, economic growth as well as broader Kutubuddin Ahmed development of economies is hindered by a shortage of roads, mass rapid transit systems, Mahbubul Alam telecommunications, power plants, water and sanitation and other basic infrastructure, all of which are critical to achieve sustainable development. Md. Fazlul Hoque Recognizing the potential of the private sector for sustainable development, it is vital that the Md. Siddiqur Rahman Asia region develops new forms of partnerships with businesses that go beyond the delivery Mir Nasir Hossain of traditional government-to-government official development assistance and technical R. Maksud Khan support. Such partnerships must go deeper and should focus on key areas of inclusive Barrister Rafique-ul Huq and sustainable development that are of mutual interest, including science, technology and innovation, human resource development, infrastructure development and multi- Rupali Chowdhury dimensional South-South cooperation. Sheikh Kabir Hossain Governments must also take the lead in ensuring that frameworks and national action Tapan Chowdhury plans are in place to allow for greater business contributions to the SDGs and to regional Editor integration goals. Likewise, they must also take steps to eliminate hurdles preventing the private sector from operating effectively, such as irregular or unstable power supply, weak or Ataur Rahman limited property rights, and barriers to cross-border trade. Secretary General Bangladesh is uniquely positioned to take advantage of its location in the eastern sub-region Editorial Associate of South Asia. It can be a centre-point of different initiatives that seek to connect BBIN with Syeda Shahnewaz Lotika the Association of South East Asian Nations (ASEAN), Bangladesh-India-China-Myanmar (BICM) cooperation arrangement, and also with other East Asian countries. Deputy General Manager With deeper trade, investment and connectivity linkages within the sub-region, Bangladesh can benefit from new markets, new import sources of high-quality and better priced products, Contents increasing opportunities for transport and logistics services. Increased trade will contribute directly to investment and job creation in manufacturing, agriculture as well as services ICC Bangladesh News 2 which will facilitate to achieve its goal to become middle income status by 2021. Bangladesh Economy 39 The first ever UNESCAP Asia Pacific Business Forum was held in Dhaka during 8-9 February. Regional News 49 The Forum concluded with a call for deepening of regional integration in Asia and the Pacific ICC HQs News 52 with the view to lifting millions out of poverty, driving economic growth and achieving WTO News 59 sustainable development goals. ICC Bangladesh News Asia Pacific Business Forum 2017 held in Dhaka Asia Pacific needs to be more integrated : Speakers said he Thirteenth Asia-PacificBangladesh was the Chief Guestand Facilitation for Regional Integration.” TBusiness Forum was held at inaugurated the Forum held on 8 A side event on “Economic the Pan Pacific Sonargaon Hotel February at Pan Pacific Sonargaon in Dhaka, Bangladesh on 8 and Hotel. A keynote address on behalf of Outlook and Key Policy Challenges in 9 February 2017. The Forum was business was delivered by Dr. Victor K. Emerging Asia” was also organized. attended by up to 500 participants Fung, former global chairman of ICC Two pre-Forum events were fromand abroad representing and Chairman of Fung Group. Ms. organized:(a) ESBN ( ESCAP government, business, civil society, Shamshad Akhtar, Under-Secretary- Sustainable Business Network) academia and others. General of the United Nations and ndividual Task Force Meetings on 7 The Forum was organized for Executive Secretary of ESCAP and February (b) Thirteenth Session of the first time in Bangladesh by Mr. Mahbubur Rahman, President of ESCAP Business Advisory Council the International Chamber of ICC Bangladesh delivered a welcome (EBAC) and Third Session of ESBN Commerce (ICC) Bangladesh and address. H.E. Mr. Tofail Ahmed, M.P., on 8 February The event comes at United Nations Economic and Social Hon’ble Minister of Commerce of the a time when the 28-bloc European Commission for Asia and the Pacific Government of Bangladesh delivered Union, the model of economic (ESCAP) under the patronage of theopening address on behalf of the integration, is soul-searching the Ministry of Commerce of the Government. following the shock Brexit vote Government of Bangladesh.. and the new US administration's The overarching theme of the 2-day Partners and sponsors of the inward-looking trade policies. The Forum, “Regional Integration to Forum comprised of the following: International Chamber of Commerce Achieve Sustainable Development” Bangladesh Investment Development Bangladesh co-organised the event was discussed in a Ministerial Authority, Standard Chartered with the United Nations Economic (platinum partners);Bangladesh Plenary Session on: “Linking and Social Commission for Asia and Insurance Association, City Bank, Business with the Sustainable the Pacific (ESCAP) and Ministry of Shasha Denims Ltd. (gold partners); Development Goals: What Can We Commerce-Bangladesh. This is the BergerTrusted Worldwide, Eastland Do?”, two plenary business sessions first time that Bangladesh hosted the Insurance, Green Delta Insurance, on: “Supporting SDGs through event, which has been taking place Joules Power Limited, National Digital Financial Models by Inclusive since 2004. Housing, Navana Group, Reliance Business” and “Supporting and Insurance Limited, The Merchants Empowering Disadvantaged MSMEs The Forum concluded with a call for Ltd., Uttara Finance and Investments to Become More Competitive and deepening of regional integration in Limited (silver partners); The Daily Sustainable”respectively and three Asia and the Pacific with the view Star, The Financial Express, Prothom parallel sessions on the following to lifting millions out of poverty, Alo, Samakal, Channel i, Channel topics: “Devising Strategies for driving economic growth and 24, Maasranga Television were the Resilience: Role of Business in achieving sustainable development media partners and Centre for Policy Disaster Risk Reduction and Climate goals. The objective of the two-day Dialogure (CPD) was the knowledge Change Adaptation”; “New Energy conference was to discuss the role partner of the event. Realities: Building a Resilient and needs of businesses in achieving H.E. Mr. Md. Abdul Hamid, Hon’ble and Low-Carbon Future”; and inclusive, resilient and sustainable President of the People’s Republic of “Supporting Trade and Transport development. January-March 2017 January-March 2 ICC Bangladesh News
Opening Session
he Opening Session was as an important regional platform necessary but required a sacrifice TInaugurated by H.E. Mr. Md. for multi-stakeholder dialogue. in reduced national sovereignty. Abdul Hamid, Hon’ble President of He noted that the Asia-Pacific While emphasizing the importance the People’s Republic of Bangladesh. Region had great potential and of trade facilitation and energy for
Other Speakers of the Inaugural was characterized by rich diversity, development, he also noted the Session were H.E. Abul Maal Abdul abundance of natural resources, a investment and connectivity gaps. Muhith, M.P., Minister for Finance, wide range of markets and levels of Government of Bangladesh; H.E. development and human resources. In this regard, he noted that sub- Mr. Tofail Ahmed, M.P., Minister regional cooperation within for Commerce, Govt. of Bangladesh; However, he noted the persistence of the framework of the South H.E. Prof. Gowher Rizvi, Adviser too much poverty and, in this regard, Asian Association for Regional to the Hon’ble Prime Minister for emphasized the need for South- Cooperation (SAARC) held great International Relations, Government South cooperation, in particular of Bangladesh; H.E. Mr. Rishad for least developed countries such Bathiudeen, Minister of Industry as Bangladesh. It was particularly and Commerce, Government of important to boost investment Sri Lanka; H.E. Mr. Romi Gauchan in infrastructure, ICT and social development. Trade and foreign Thakali, Minister for Commerce, direct investment (FDI) were central Government of Nepal; Dr. to human civilization and should Mukhisa Kituyi, Secretary-General, be promoted to create jobs for the UNCTAD; Ms. Shamshad Akhtar, poor. ESCAP could play a role in this Under Secretary General ESCAP; regard. ICC Bangladesh President Mahbubur promise and required a consolidation Rahman; Mr. Latifur Rahman, He offered zero tolerance to of national institutions under one Vice President, ICC Bangladesh; terrorism and emphasized the umbrella to avoid duplication. He Dr. Wencai Zhang, Vice-President need for peace and prosperity. He called for enhanced integration (Operations), Asian Development described Bangladesh’s initiatives in in specific sectors, including in Bank (ADB); Dr. Victor K. Fung, developing infrastructure and the production and consumption, with Former Global Chairman of ICC challenges ahead. In particular, he the ultimate aim to eliminate poverty and Chairman of Fung Group; and noted his country’s vulnerability to from the sub-region. Datuk Seri Mohamed Iqbal Rawther, climate change as described in the Mr. Tofail Ahmed, M.P. Chairperson of the ESCAP Business ESCAP Economic and Social Survey. Advisory Council. Therefore, regional cooperation In his address, H.E. Mr. Tofail to address these challenges was Ahmed, M.P. noted that the global H.E. Mr. Md. Abdul Hamid, Hon’ble essential. He formally declared APBF scenario is changing and that the President of the People’s Republic of open. Asia-Pacific Region is increasing in Bangladesh Mr. Abul Maal Abdul Muhith, M.P. importance and leading globalization H.E. Mr. Md. Abdul Hamid, Hon’ble and regional integration initiatives. President of the People’s Republic H.E. Mr. Abul Maal Abdul Muhith, In this context, he welcomed the of Bangladesh in his inaugural M.P. noted that enhanced regional conclusion of the 4th Round of address recognized the role of APBF cooperation and integration were the Asia-Pacific Trade Agreement January-March 2017 January-March 3 ICC Bangladesh News
revolution in irrigation. Social such as climate change, natural development objectives in areas disasters, corruption, terrorism, such as health for all and rising cross-border crime, etc. GDP/capita indicators were high compared to its peers. Women In order to effectively address these development and empowerment challenges regional cooperation was and social safety nets had also required. In this context, he noted significantly increased. The country that his country, Nepal, should had built major infrastructure with optimize the use of its abundant (APTA) and ratification of four its own resources and no longer natural resources, as well as trade, framework agreements and the faced prolonged power cuts. investment, tourism, technology progress made under ASEAN. transfer, etc. and pursue enhanced Mr. Rishad Bathiudeen transport and ICT connectivity for However, he warned against economic growth and prosperity. complacency and that poverty remained a concern for the region. He noted that least developed In this regard, there was a need countries faced severe resource to continue the reduction of non- gaps, lack of effective market access, tariff barriers to boost trade and supply-side capacity constraints, investment as engines of growth. regulatory red tape, etc. However, He outlined the progress being Nepal had made progress in made in Bangladesh with economic improving the enabling environment development under the current for the private sector but increased government under Vision 21 H.E. Mr. Rishad Bathiudeen remarked investment in state-of-the art including digitization. Bangladesh that Sri Lanka was well on its way to technologies was still required. achieve middle income status and the had already achieved high growth He concluded by identifying rates and policies were implemented importance of PPPs in this process. In particular, PPPs had been successful opportunities for Nepal such in support of business, trade and as agriculture, tourism, natural investment. He noted that APBF in the areas of infrastructure, such as the development of transport, resources, and hydro-power which provided a useful platform for multi- required larger inflows of FDI. stakeholder discussions on issues of water, energy, sanitation, irrigation and urban development, including Capacity building and technical importance to the role of business in assistance was required to help Nepal achieving sustainable development. the development of port cities. He called for enhanced PPP initiatives realize its full potential. Prof. Gowher Rizvi and funding from the private sector Dr. Mukhisa Kituyi rather than from the Government. In other words, he called for private sector-led PPPs rather than public- sector led PPPs.
Mr. Romi Gauchan Thakali
H.E. Dr. Gowher Rizvi noted the Dr. Mukhisa Kituyi highlighted new reality of Bangladesh which three issues of importance: (a) did not match its reputation. In the importance of multilateralism particular, he noted that Bangladesh and engagement; (b) the need for had made remarkable progress in the Asia-Pacific region to provide economic development despite the H.E. Mr. Romi Gauchan Thakali leadership; and (c) the need for challenges and hostile international global investment and role of Asia- noted the role of APBF as a useful environment. It had a well- Pacific as the leading source and platform to promote private sector established democracy and political destination of greenfield FDI. stability which helped sustained cooperation and dialogue. He development. emphasized the importance of Dr. Shamshad Akhtar the SDGs, in particular as poverty Success was also helped by increased continued to persist in the region. Dr. Shamshad Akhtar, Under- remittances and an agricultural The region faced major challenges Secretary-General of the United January-March 2017 January-March 4 ICC Bangladesh News
costs of doing business needed to be contribute to inter-governmental reduced. In this context, she referred initiatives. In particular, the large to the regional framework agreement needs for infrastructure investments on cross-border paperless trade that required private sector contributions ESCAP member States had adopted and participation. He noted that and was now open for signature. the private sector also contributed to technology and innovation to She noted that the private sector meet social and environmental was interested in the SDGs and development goals, for instance, many businesses were embedding Nations and Executive Secretary through the development of the SDGs in their operations and of ESCAP opened her address by renewable energy technology. The acknowledging the role of EBAC pursuing business opportunities related to achieving the SDGs. private sector’s contribution to PPPs and ESBN in supporting APBF. She and expansion of global value chains noted that regional cooperation Initiatives such as the Global for inclusive growth was also noted. has renewed its significance though Compact helped business align their strategies with the SDGs and progress has been uneven. There Dr. Victor K. Fung were unrealized opportunities, selected ESBN task forces were especially in South Asia. The private helping develop responsible business sector played an important role conduct models. She called on in fostering regional cooperation business to pursue new and deeper and in financing infrastructure, forms of partnerships to boost global value chains, ICT and energy financing for development; science, networks to achieve seamless technology and innovation; human regional connectivity but barriers resource development, South-South to intraregional trade needed to be cooperation; and other forms of further reduced. cooperation. Dr. Victor K. Fung noted the She also called on EBAC to be She identified new drivers of regional achievements of Bangladesh under revitalized to allow it to play cooperation such as the 2030 Agenda the MDGs and current initiatives a productive role in achieving for Sustainable Development, the to achieve the SDGs. He observed sustainable development and ASEAN Economic Community, the with concern that there was a rise in regional integration. She concluded Chinese Belt and Road Initiative, global anti-globalization sentiments her address by noting that the the Eurasian Economic Union single but that protectionism was not the next APBF would be held in Hong economic space, APTA and the Kong in 2018 and hoped that the answer. Regional Comprehensive Economic outcome of the Forum would feed Partnership Agreement which was China had taken the lead in into the regional intergovernmental still under negotiation. ESCAP promoting globalization for joint processes and, ultimately, to the supported all these processes. Market prosperity. In this regard, the Silk global High Level Political Forum. integration played an important role Road project cum One Road One in fostering regional integration for Dr. Wencai Zhang Belt or Belt and Road Initiative (BRI) economic dynamism and this issue, held great promise for infrastructure along with seamless connectivity, connectivity and intraregional trade enhanced financial cooperation and, ultimately, for achieving the and increasing economic and SDGs. technical cooperation to address shared vulnerabilities and risks was China’s motive for the BRI was to discussed at the ministerial level in focus on social and environmental ESCAP. benefits rather than mere economic growth. Issues such as innovation, Ms. Akhtar emphasized the need high tech and robotics played an to harness the capacity of business Dr. Wencai Zhang noted the important role in the BRI. to support implementation of the importance of an enabling 2030 Agenda through financing, environment for the private sector He also observed that the new innovation and development of as driving force of economic normal in China entailed a shift new technologies but the enabling growth and ADB’s commitment to towards domestic consumption with environment for business, in harnessing the strength of the private reduced job opportunities in exports. particular at the national level, needed sector. The private sector contributed As demand from OECD countries improvement. In other words, the to regional integration and could was declining, developing countries January-March 2017 January-March 5 ICC Bangladesh News
could fill the gap through a rising they shape the future; (c) the SDGs "on behalf of Members of ICC middle class. are guiding force for the private Bangladesh we extend warmest sector and decent jobs and that, in felicitations to all our guests from Mahbubur Rahman this regard, business should adopt abroad". He particularly thanked principles of responsible business the Honourable Ministers from Sri conduct; (d) regional and subregional Lanka and Nepal for taking time off cooperation played a critical role for their busy schedule to join APBF the implementation of SDGs; (e) 2017. He thanked all the speakers legislation was required to make and discussants who have graciously all parties comply with achieving agreed to speak in the different SDGs. He concluded by noting sessions of the Forum. that Bangladesh had achieved most Millennium Development Goals and Datuk Seri Mohamed Iqbal Rawther ICC Bangladesh President Mr. was striving to achieve the SDGs. The Mahbubur Rahman in his welcome private sector remained engaged with the Government. APBF was a useful address noted that APBF has been platform to articulate strategies for the best platform for regional public-private partnerships (PPPs) multi-stakeholder dialogue since its to achieve the SDGs. inception in Shanghai in 2004. He observed that the world economy Mr. Latifur Rahman was not delivering desired social outcomes and that a new global architecture was required under Mr. Datuk Seri Mohamed Iqbal the 2030 Agenda for Sustainable Rawther noted that APBF was the Development that would leave product of UNESCAP under the nobody behind. UN system and that APBF 2017 had reached a new level which should As part of this architecture he provide the benchmark for future observed that: (a) the Asia-Pacific sessions of the Forum. With regard region is the powerhouse of the world to the China-led BRI he noted that and should take a lead; (b) young Mr. Latifur Rahman delivered vote there had been an Islamic precedent people deserve special attention as of thanks. In his address he said in the past. He thanked all speakers.
Ministerial Plenary Session Linking Business with the Sustainable Development Goals: What Can We Do?
he plenary session was moderated Mukhisa Kituyi, Secretary-General integration and more investment in Tby H.E. Mr. Tofail Ahmed, M.P., of United Nations Conference on infrastructure are needed to create Minister of Commerce, Government Trade and Development. By aligning an environment for more cross- of Bangladesh. Ms. Shamshad themselves with the SDGs, the private border investment, he said Akthar, Executive Secretary of sector stands to potentially benefit ESCAP delivered introductory from $12 trillion worth of business Wencai Zhang, vice-president of the remarks. In her remarks she said “It opportunities globally, which could Asian Development Bank, called for can make profound contributions to create almost 380 million jobs by implementation of the Bangladesh, regional integration and sustainable 2030. Bhutan, India and Nepal motor development.” Research indicates 71 vehicle agreement at the earliest. percent of the businesses are already “Such partnerships must go He also suggested developing more planning on how to engage with the deeper and should focus on key economic corridors inside the sustainable development goals, while areas of inclusive and sustainable country, like special economic zones 41 percent will embed the SDGs into development that are of mutual in Bangladesh, or along the border. their business operations, she added. interest, including science, The Manila-based multilateral lender technology and innovation, human will continue its support in different The private sector can play a vital resource development, infrastructure projects in this region and take up role in regional integration and development and multi-dimensional more projects. “Primarily, the private poverty reduction by creating jobs south-south cooperation,” sector should come forward first for for the young generation, said Mukisha added. Deeper regional implementing the projects", he said. January-March 2017 January-March 6 ICC Bangladesh News
Last year, the ADB as a regional the ministerial plenary session were Trade has increased through bank delivered $17.5 billion, where as follows: enhanced connectivity but South $14 billion was co-financed, he • Regional integration and Asia remains the least integrated said. It has extended $1.1 billion to connectivity are required to subregion in the world. Addressing Bangladesh and is trying to provide achieve the SDGs. Business led common challenges, in particular more funds such that the country trade and investment are essential reducing poverty, requires can implement the seventh five-year building blocks of regional cooperation, not confrontation; plan easily, Zhang added. integration; • Countries should move from promoting investment and trade Nepal, Bhutan, Bangladesh, the • Global challenges require to active investment facilitation north-east India and West Bengal are global solutions. Current anti- through their investment integrated, said Gowher Rizvi, foreign globalization trends and retreat promotion agencies; affairs adviser to the prime minister. from multilateralism are major “This sub-regional cooperation has challenges the world is facing • It needs to be recognized that a common desire to fight poverty, today. There is consensus that the individual countries have manage water resources and water benefits from globalization need different priorities and achieve problems.” The South Asian sub- to be more equitably distributed. their development objectives at regional cooperation agreed in The Asia-Pacific region could take different speeds; Business needs to numerous areas to provide seamless the lead in addressing weaknesses be on board to achieve the SDGs movement, he said, adding that the associated with globalization as not only through the adoption of government is working to upgrade it was both a leading source and enhanced production models and the existing transport infrastructure. destination of FDI; digitization but also through the Rizvi said the government can do • National policy agendas need to adoption of responsible business with a helping hand from the private be aligned with the SDGs. Various practices and conduct and a sector as upgrading of infrastructure SDGs have a link with business higher sense of business ethics needs massive investment. and trade; FDI and global value and accountability. Sustainable chains (GVCs) play an important business is good business; Besides, the following speakers made part in regional integration. In this • Industry-based sustainability statements: H.E. Mr. Romi Gauchan context, it is important to forge models could provide guidance Thakali, Minister for Commerce, effective integration of small land to help business contribute to Government of Nepal; Tan Sri Dato’ medium-sized enterprises (SMEs) the SDGs, such as responsible or Dr. Michael Yeoh, Chief Executive into GVCs; The development of “green” stock exchanges; Officer/Director of the Asian Strategy services in areas such as health, & Leadership Institute (ASLI); and • Achieving the SDGs needs to finance and tourism held great be part of corporate success and Mr. Abul Kalam Azad, Principal promise for achieving the SDGs; Coordinator, Sustainable Development growth. SDGs provide business Goals Affairs, Prime Minister’s Office, • Globalization and participation opportunities in areas such as Government of Bangladesh. in GVCs expose business to risks sustainable agriculture, energy and which can be reduced through cities; Business contribution to The main observations, conclusions, global and regional cooperation SDGs and adoption of responsible recommendations and outcomes of and public-private partnerships; business practices need to be January-March 2017 January-March 7 ICC Bangladesh News
monitored through mechanisms • There is no return to the important to achieve the SDGs such as the Global Compact; government-led development but to be effective they require an • In order to enhance regional paradigms of the 1960s/1970s. It is enabling environment, including connectivity, private sector now the turn of the private sector a proper regulatory framework investment in infrastructure is to take the lead in development. and While governments could required; Bangladesh can act as However, for that purpose, the ease the tax burden of business a bridge between South Asia and private sector needs the support they still required fiscal revenue to South-East Asia. However, the from governments and the provide public goods and services. country and other least developed international community; countries are in need of technical In particular, governments need to assistance and capacity building to • In particular, public-private-civil speed up regulation to keep pace help them achieve the SDGs; society tripartite partnerships are with technological progress.
Supporting SDGs through Digital Financial Models by Inclusive Business his session was moderated The country needs fast and cheap regulation. The same thing happened Tby Dr. Salehuddin Ahmed, payments, which will also help create in India as well, she added. former Governor, Bangladesh Bank. a digital currency; here, the last mile Technology, innovation and suitable access is very important, said Ali. Kamal Quadir, chief executive of regulations are the key to deepening bKash, said people earlier used financial inclusion, analysts said. Salehuddin Ahmed said the regulator to keep their money under their should not be extra cautious or mattresses, but they now go for “We need a grand alliance to create careless about any new technology. a digital format. Money is sent a new inclusive model where the “We can't stop technology but we from one mobile to another, government, mobile operators, need to be careful about it. We need which reduces the cost of human payment service providers, banks to try to find out the people behind intervention. It will lead to achieving and users will get a common the technology, their purpose and the SDGs before the targeted time of platform with only one objective in how they are using it. “The regulator 2030, said Quadir. “This innovation mind,” said Muhammad A (Rumee) shouldn't put everything on the gives advantages with some kinds of Ali, chairman of ICC Bangladesh bank's shoulder.” challenges. And just because there Banking Commission and CEO of are challenges, it doesn't mean that Bangladesh International Arbitration Barbara Meynert, chair of ESBN we shouldn't pursue the solutions.” Centre. Task Force on Digital Economy, said technological challenges do Mahtabuddin Ahmed, managing Mr. Ali said bKash, a mobile not create any barriers. Rather, it is director of Robi, said mobile financial service provider, did a regulation that is the main obstacle operators have the investment and great job in Bangladesh so far but to financial digitisation, she added. technological capability as well as the it is only a payment system, which platform to give financial services. helps to transfer money. He stressed Ten years ago, China was a cash- Arastoo Khan, chairman of Islami the need for proper identification driven economy but now 75 percent Bank Bangladesh Ltd, said digital of the customers for suitable wallets of their transactions happen through financial services will be the real and a balanced regulation regime. technology, because of a change in game changer and they are going January-March 2017 January-March 8
ICC Bangladesh News to concentrate on the issue, though Internet in some form or another • Though commercial banks there are some challenges. (e.g. cheap smart phones). Cash is and financial institutions face costly; Digitalization and digital technology disruption in their Sohail RK Hussain, managing finance provides affordability, services, there would still be a role director and CEO of City Bank convenience, security and for them as they have advantages Ltd, said digital banking will help efficiency to a wide range of in terms of financial expertise, establish a cashless society and customers, many of whom have no and having a strong customer that will play an important role in bank account; base and credit records. However, achieving further economic growth. • In order to achieve effective banks have to upgrade Internet- Besides, the following speakers digitalization of currencies based technologies, including the made statements: Prof. Dr. Naoyuki and money regulation needs expansion of smart branches; to be stepped up, including Yoshino, Dean, Asian Development • There is a broad scope of fintech, for enhancing cyber security. Bank Institute; Mr. George Kam Ho including blockchain and others. However, it is recognized that Yuen, Board Director, Industrial Financial technology needs to and Commercial Bank of China there are regulatory challenges that need to be effectively addressed; be combined with innovative (Asia); Mr. Phang Yew Kiat, Vice business models to achieve success Chair and CEO of Credit China • Effective digital financial platforms and growth; FinTech Holding Limited; Mr. Vineet for payments, settlements and Sachdev, Director, BOSS BPO (a unit storage need to be designed on • Fintech companies need to adapt to of Bahri Trading Company, Sachdeva the basis of a grand alliance which new regulation and fast-changing Group). brings together all stakeholders, technologies and digitization of such as retail agents, Internet currencies. At the same time, The main observations, conclusions, (e.g. e-commerce) companies, regulators need to adapt to allow recommendations and outcomes of government, regulators, customers fintech companies to deliver the session were as follows: and financers; and grow. Regulation needs to • As many people have no bank • Digital technologies can help be balanced with innovation. It account digitization of cash and the mobilization of start-up and should be neither over-cautious currency (digital liquidity) rather venture capital with Internet nor over-zealous; sooner than later is required to companies as intermediaries. Such • Mobile banking provides useful better address corruption and technologies should also enable services to non-bank people. black money, increase tax revenue companies to advertise and sell New digital applications, such and generally achieve the SDGs online on a trial basis; leaving nobody behind; as e-Wallet for online payment, • Internet companies can use big continue to emerge; • Digitization is consumer-friendly, data to extend effective credit and low cost and therefore pro-poor credit guarantees for SMEs with no • Artifical intelligence can be used as most people have access to the credit record; for business ratings. Supporting Trade and Transport Facilitation for Regional Integration his session was moderated by role of the NBR in facilitating trade benefits would be derived equally by TMr. Hedayetullah Al Mamoon, and said importance of cooperation, all irrespective of traders, producers, ndc, Senior Secretary, Ministry of coordination, coherence, workers and consumers. People-to- Commerce. Speakers at the session communication and courage are people connectivity in this regard highlighted the necessity of regional necessary to ensure trade facilitation works as a pillar for facilitation, he integration through investment for establishing regional integration. added. from public and private sectors and Highlighting the potential of uniform policies and system. They Bangladesh Bhutan, India and Nepal Country Manager, Bangladesh, said this would ease the cost of doing (BBIN) sub-regional forum, he said Bhutan & Nepal, IFC, World Bank business. The speakers were sharing NBR is also working on avoiding Group Wendy Jo Werner highlighted their views on major obstacles, role double taxation through intra- the need for private investment of governance and infrastructure regional dialogue. and private sector development needed for promoting trade and for improving trade and transport transport facilitation. Secretary (Asia and Pacific) Ministry arenas and said Bangladesh could get of Foreign Affairs Mahbub Uz benefit through improving logistic Senior Secretary, IRD and Chairman Zaman said trade and transport facilities and efficiency level in both of National Board of Revenue facilitation helps reduce cost of doing export and import. She hoped that Nojibur Rahman highlighted the business significantly. He hoped that some major transport projects taken January-March 2017 January-March 9 ICC Bangladesh News
under public-private partnership Though the Asia and Pacific region fish farming. He pleaded for a long- might bring changes in efficiency has champions like Singapore, he said term plan to get the benefit. He said level. In its absence, like many other it also has countries like Bangladesh a strategy should be to go for high- countries, Bangladesh remains which remain quite behind the rating quality production not only to get behind in export and import ratio. in trade facilitation. He suggested market in the Asia-Pacific region but She said all these are important opening up of single window at also in other parts of the world. for sustainable development national level, proper utilisation by increasing connectivity and of PPP in terms of financing and Mr Bipul Chatterjee pleaded for transportation. taking efforts to implement WTO regional integration for the ease of agreements. doing business and reducing the cost Dr Mustafizur Rahman, Executive of trade. Director of Centre for Policy Country Head of Banking, Standard Dialogue, laid importance to south- Chartered Bank Limited Naser Ezaz The main observations, conclusions, south trade to reduce cost of trade Bijoy laid importance to regional recommendations and outcomes of facilitation saying that it is still high integration for reducing cost and the session were as follows:
in South Asia. Pointing to other time in trade for economic growth • Trade, investment and transport regional integration in the name of and increasing purchasing power should be addressed in a holistic one belt, one region and BIMSTEC and said foreign banks can provide manner; free trade, he said integration with support to improving trade- • The ESCAP/World Bank Trade- South Asia and South East Asia related investment. He said trade Cost database revealed that trade is necessary to grab enormous and transport facilitation helps costs in the region were still quite opportunities of the 21st century and decentralisation and increases high, mostly policy-related, and reach the desired goal of becoming income generation activities for needed to be reduced; a middle-income country as well as the region's 1.7 billion population. upper middle-income country. He also laid importance to political • Integration and cooperation at consensus for overcoming challenges subregional and regional level Trade facilitation is the best way and setting priorities due to conflicts were required to facilitate trade to translate cooperative advantage among countries having close and transport. In this regard, into competitive advantage by borders. South Asia was lacking behind reducing tariff-related costs, he ASEAN and other subregions. In said also laying importance to Professor Sheikh Morshed Jahan particular, SAFTA should reduce comprehensive agreement on sought sustainable development for the negative list; inclusive growth in the region saying various issues including common • ESCAP’s Asian Highway and standard certification, harmonised that regional integration can ensure this by developing marketing system. Transnational Railway had border system, investment in human greatly contributed to transport resource development and integrated He, however, called for focusing connectivity and facilitation in electronic data system. efforts to avoid frustration that may be created in the process as producers the region. China’s Belt and Road Dr Ravi Ratnayake said trade and do not get fair prices. Initiative was also identified as an transport facilitation is neglected important modality for regional in the field of regional integration. Mr David Morris said the region has integration in addition to major The government has a role in trade massive potential for growth having regional and bilateral trade facilitation by reducing policy- common history, economic zones agreements among key countries related cost, he added. with quality food, blue ocean and of the region; January-March 2017 January-March 10 ICC Bangladesh News
• Trade and transport facilitation in regional and bilateral trade window), regional level (e.g. had to be addressed along three agreements should contribute to the ESCAP regional framework pillars: border documentation; trade facilitation and not constitute agreement), and global level border logistics; and behind-the- another NTB; (through WTO); border logistics; • In promoting trade and transport • Political commitment and the • In this regard, there was a need to facilitation, special attention setting of realistic agendas were reduce and harmonize customs should be paid to the landlocked important to achieve meaningful regulations and procedures among least developed countries; Trade trade and transport facilitation; countries through the adoption of and transport facilitation should Commercial banks played an single windows, and reduce other not only benefit traders but also important role in facilitating trade non-tariff measures both at and producers, workers and consumers as they provided trade finance; behind the border; and lead to inclusive growth; • Businesses need to adopt long-term • Trade and transport facilitation • People-to-people connectivity strategic thinking on products and required cooperation, was important to facilitate trade; markets to promote their growth coordination, coherence, Countries were encouraged to and sustainability and investment commitment and courage. It ratify and implement the WTO objectives. For instance, China’s also required the right policies, Agreement on Trade Facilitation infrastructure, institutions, and the regional framework growing middle class had led to procedures and regulations, agreement on cross-border demand for boutique products technologies, resources, data and paperless trade under ESCAP; from the Pacific and this, in turn, statistics; had led to expanding air-links • There was scope to reduce the between China and the Pacific, • Both a top-down (from lead-time for delivery of products opening up opportunities; governments) and bottom-up across supply chains, e.g. in ready- (from customers and business) made garments. In this context, the • Countries need to pursue approach was needed. ICT in role of intermediaries in the supply comprehensive Sanitary and particular played an important chain is critical and they should Phyto-Sanitary Agreements (SPS) role in facilitating trade; improve their efficiency. For that based on mutual recognition • Cross-country motor vehicle purpose, and to promote the role agreements (MRAs) to facilitate agreements among countries were of trade facilitation in achieving cross-border trade. At the national an important modality to facilitate the SDGs, sustainable market level, they need to improve transport. In addition, countries eco-systems that link all GVC standards and testing institutions should adopt the Customs actors (including regulators and to ensure compliance with Convention on the International facilitators) should be promoted; international standards; Transport of Goods under Cover Urban and rural development • There was a need to invest in could be boosted through the of TIR Carnets (TIR Convention) human resources development improvement of urban and rural and various countries, including of customs officials; Aid for trade transportation, respectively; China, had already done so; should target trade facilitation; • Countries were encouraged to • Trade facilitation had been Protectionism, including an establish joint trade and transport neglected in favour of trade increase in G20 trade restrictive facilitation committees or bodies liberalization but had slowly measures, should be actively fought and enhance knowledge sharing become centre stage of current in WTO; Avoidance of double among them; attention. Trade facilitation taxation agreements facilitated • While the need for value-addition measures were needed at the FDI and trade but in practice they is recognized, rules of origin national level (through single were not so easy to conclude. Supporting and Empowering Disadvantaged MSMEs to Become More Competitive and Sustainable his session was moderated by small and medium enterprises to support the growth of MSMEs for TMr. Md. Mosharraf Hossain (MSMEs) even though the firms poverty reduction and attainment of Bhuiyan, ndc, Senior Secretary, generally have a good track record of the sustainable development goals Ministry of Industries of the repayment. “SMEs are not defaulters by 2030. She said she has been with Government of Bangladesh. Mrs. and women entrepreneurs pay back a financial institution for the last 30 all the time,” Rokia Afzal Rahman Rokia Afzal Rahman, Vice President, years whose 80 percent of the loans added. ICC Bangladesh said access to are given to SMEs. “What I find is finance remains one of the major Rokia Rahman said the banks and that SMEs are not wilful defaulters. impediments to growth of micro, policymakers should come forward Sometimes they might get into January-March 2017 January-March 11 ICC Bangladesh News
serious problems. The borrower is also a problem for the SMEs, said with such schemes had dies or might get into some serious Sampa Banerjee, executive director demonstrated that poor people, problems.” If one SME does not pay of the World Association for Small women, and small borrowers back, it will not cause much of a dent and Medium Enterprises. She had better credit records than big to the bank's balance sheet. “But if suggested setting up an incubation borrowers. a big borrower defaults, your entire centre for SMEs to grow. money is gone.” • SME loans were not profitable Common facilities and common to banks. However, banks could She went on to suggest that banks standards can be set for the growth reduce risks by distributing loans should learn from the microfinance of SMEs in the region, said Md to a larger group of SMEs rather programme. “We have to sensitise Mosharraf Hossain Bhuiyan, senior than extending one loan to a single the bankers. We have to ask the secretary of the industries ministry. big borrower. Governments should government to come forward with Regulatory framework for SMEs help reduce the risks for banks. certain policies to support the SMEs,” should not be stringent, he added. Rahman added. • Only a small percentage of SMEs Besides, the following speakers made engaged in international trade Speakers said the segment is one of statements: Prof. Ken Yan Cheng but their involvement through the key drivers of the Bangladesh Pan, President, Trade & Industry value chains and e-commerce was economy and generators of jobs. But Association of Singapore and Mr. increasing. In this regard, major the enterprises suffer from various Sandro Calvani, Senior Adviser on challenges involved protecting constraints mainly inadequate access Strategic Planning, Mae Fah Luang intellectual property rights, to credit and lack of skill and training Foundation, Thailand. ensuring cybersecurity, facilitating and market access. The main observations, conclusions, access to trade finance, and facilitating trade through easier After agriculture, SMEs in Bangladesh recommendations and outcomes of the session were as follows: customs clearing procedures and constitute the largest segment of the formalities. Grassroots enterprises private sector economy, said Momtaz • SMEs are recognized as prime needed support most. Uddin Ahmed, director of SME mover of industrialization and Foundation. The SME sector employs engine of economic growth • Small social enterprises often 70-80 percent of non-agricultural and development. However, had a better record than other workforce. Ahmed, also an honorary they faced multiple challenges, SMEs as long as the focus was on professor at the University of Dhaka's in particular lack of access to high quality and professionalism, economics department, said 30-32 finance, technology, markets and making people the centre of the percent of the SMEs have access to knowledge, (market) information company factors of success as institutional lending. He suggested and expertise; standards evidenced by the experiences of a national database, formulation of compliance; access to testing; and the Mae Fah Luang Foundation of a law and a separate bank for SMEs. effectively utilizing ICT. Thailand.
ICC Chief Operating Officer Philip • Bangladesh had demonstrated the • In order to provide effective Kucharski said in addition to finance, importance and success of micro- assistance to SMEs, a uniform SMEs need wider access to market, finance schemes consisting of definition of SMEs was needed training and knowledge to flourish. collateral free loans to poor people, to collect meaningful data and A lack of information on the market in particular women. Experiences statistics and formulate relevant January-March 2017 January-March 12 ICC Bangladesh News
policies. On the basis of a uniform areas such as technology, skills, and other agencies had proved a definition, a national database of marketing and global networking. success in India. SMEs could be set up. • Generally speaking, SMEs • Special incubation platforms that were helped most through • Other modalities to assist SMEs helped start-ups and SME Centres the improving of an enabling included the adoption of an SME across the country that linked environment by an non-intrusive Law, a specialized SME Bank and SMEs with facilitators, business government, including reduction other specialized institutions in development service providers and streamlining of regulations. New Energy Realities: Building a Resilient and Low-Carbon Future his session was moderated by infrastructure investment for lot of people and enabled Bhutan TMr. Nazimuddin Chowdhury, alternative and renewable energy? to export considerable amount of Secretary, Energy and Mineral renewable and clean energy. • How can the poor’s energy access Resources Division, Government of issues be addressed? Bangladesh. The following speakers • Significant amount of investment made statements: Prof. Ainun Nishat, • Why isn’t sustainable energy being was needed to develop renewable Professor Emeritus, Centre for more widely promoted? and alternative sources of energy. Climate Change and Environmental To induce investors to invest in Research, Bangladesh; Mr. Abrar The main observations, conclusions, renewable energy generation, an A. Anwar, Chief Executive recommendations and outcomes of enabling regulatory framework Officer, Standard Chartered Bank, the session were as follows: was needed and investors should Bangladesh; Mr. Arbind Kuymar be protected by the government so • To meet energy demand, Mishra, Member of Nepal Planning that they were able to obtain decent Bangladesh needed to optimise Commission; Mr. Arunabha Ghosh, returns on their investment. Chief Executive Officer, Council on production of energy. A balance Energy, India; Mr. Karma Tshewang, of various sources including • Cross-border energy trade in Chief Engineer, Department of solar energy, wind energy, coal- which neighbouring countries Hydropower & Power Systems, based energy and development of engaged in export and importing Bhutan; Mr. Kensuke Tanaka, Head hydropower were required. energy from each other could of Asia Desk, OECD Development boost energy access to those • Hydro-power generation at the Centre; Prof. Dr. Badrul Imam, countries. Department of Geology, University regional level with Nepal, India of Dhaka, Bangladesh; Mr. Mahmood and Bhutan possessed huge • Nuclear energy emitted least Malik, Chief Executive Officer potential. Bangladesh could have amount of carbon among all of Infrastructure Development access to hydro power by allowing sources of energy and was less Company Ltd., Bangladesh. those countries to use Bangladesh’s costly than generating solar territory to transport hydro power. energy or wind energy. However, The session addressed the following As is known, hydropower was the nuclear waste could cause harm issues: jewel of Bhutan’s economy where it to mankind. Bangladesh should • How can business assist contributed 15 per cent of the GDP. develop the needed expertise in governments in energy This form of energy employed a managing nuclear waste. January-March 2017 January-March 13
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Devising Strategies for Resilience: Role of Business in Disaster Risk Reduction and Climate Change Adaptation
his session was moderated risk reduction and climate change disaster and climate risk reduction Tby Mr. Asif Ibrahim, Chair of adaptation? considerations into its business the ESBN Task Force on Disaster The main observations, conclusions, equation such as the disaster and and Climate Risk Reduction. The recommendations and outcomes of climate risk assessment during following speakers made statements: the session were as follows: the identification and selection Mr. Puji Pujiono, Regional Adviser • The Asia-Pacific region continued of sites and land acquisition; and on Disaster Risk Reduction, to witness the increasing disaster- ensuring the off-site infrastructure ESCAP; Mr. Emdadul Haque, induced economic costs that development and offering of Additional Secretary, Executive threatened the attainment of the incentive packages for developers. Member Planning & Development, SDGs. The business sector as one • The DBL Group in Bangladesh
Bangladesh Economic Zones of development pillars bore most was a major supplier of apparels Authority (BEZA); Mr. Daniel of the disaster-induced damage to globally renowned retailers, Gilman, Humanitarian Affairs and losses, and SMEs, due to their which cooperated with GIZ and Officer, Regional Partnerships peculiar characteristics, were the government, to implement Unit, UN OCHA, Regional Office- often most devastated by disaster the international standard on the Asia-Pacific; Mr. Md. Abdul impacts. Occupation Health and Safety Jabbar, Managing Director; DBL Assessment Series 18001. The Group; Mr. Nirvana Chaudhary, • Disaster-resilient business formation of a social team to Managing Director, Chaudhary strategies, approaches and oversee employee welfare and Group, Nepal; Ms. Madhura operations for business, safety translated to increased Mitra, Manager-Sustainability, particularly SMEs, were urgently worker retention and productivity, PricewaterhouseCoopers India; needed to ensure businesses’ own competitiveness and profitability as well as the mitigation of massive Mr. Jared Berends, Senior Director as well as to ensure that they cost burdens from accidents and and Operations and Resource contribute to the resilience of disasters. Management, World Vision, society at large. Bangladesh; and Mr. Karma C. • The Chaudhary Group in Nepal Nyedrup, Environment Specialist, • The international community suffered significant damage and National Environment Commission, initiated the Connecting Business business disruption from the Government of Nepal. initiative (CBi) for the private major earthquake in April 2015. As sector to coordinate and access the The session addressed the following the Group was recovering towards tools, resources and mechanisms issues: normal production, distribution to collaborate in a more holistic, and consumption, it leveraged • What is the role and potential more strategic, and permanent its business efficiency and of business in disaster risk way with the United Nations resources to deliver, in addition management in Asia-Pacific? system, national governments to its commitment to build • What are available measures and and civil society and through 10,000 transitional shelters, the tools for business to promote global coordination architecture reconstruction of more than 100 climate change adaptation? networks. primary schools and 1,000 low- • How can we facilitate public- • The Bangladesh Economic Zones cost homes in the mountainous private partnerships in disaster Authority (BEZA) took the affected districts. January-March 2017 January-March 14 ICC Bangladesh News
• Pricewaterhouse Coopers of the private sector and helped areas of cooperation that could continued to collaborate with companies leverage World Vision’s contribute to ESCAP’s programme UNISDR to create a long term 50 year international experience on disaster risk reduction and platform for public-private and expertise, on working with resilience building and areas collaboration on disaster risk communities to address disaster where the work of ESCAP could management. Learning that many and climate risk management. provide policy relevant analysis to companies made disaster risk • Bhutan as a global leader in support members promoting and reduction as their core focus and environmental conservation investing in resilience building in developed unique capabilities, and valued its partnership with the the communities in which they that there were largely untapped private sector. Large companies in operate as well as better integrate opportunities, the initiative Bhutan recognized the importance disaster considerations into their helps companies to understand of integrating sustainable operations and investments. disaster risks, to respond with a development into their core business strategy, a structure, a • The Task Force identified the scope strategies. There was scope for the process, people and technology, for the areas of interventions such greater involvement of the private and to establish both the needed as in addressing saline intrusion sector in policy-making and internal and external enabling in Bangladesh’s coastal areas, influence to integrate economic, environments. alleviating poverty and leveraging social and environmental ICT to strengthen disaster • World Vision International developments in order to attain, resilience. launched the Asia Public-Private ultimately, the happiness of the Partnerships Hub (Asia P3 Hub) • The Task Force circulated for a people of Bhutan. as a multi-sector incubator peer review purpose, a working that drives market-based • The ESCAP Sustainable Business draft of a regional guide entitled developmental solutions to bring Network (ESBN) Task Force “Roadmap to Business Engagement about transformational change. on Disaster and Climate Risk in Disaster Risk Reduction in Asia The Hub harnessed the expertise Reduction recognized the specific and the Pacific”. Economic Outlook and Key Policy Challenges in Emerging Asia
his session was moderated by Mr. Yoshino, Dean, Asian Development practical policy implications to the TMasato Abe, Economic Affair Bank Institute; Mr. Kondoker Molam region. Officer, Business and Development Moazzem, Additional Director, • Transition from a middle income Section; Trade, Investment and Research Centre for Policy Dialogue, country to a high income country Innovation Division of UNESCAP Bangladesh; Mr. Mohamed Macky would take about 20-40 years with and involved a presentation on Hashim, Founder President of structural and policy changes the OECD Economic Outlook for SAARC CCI; and Mr. Abul Kasem required. Southeast Asia, China and India Khan, President, Dhaka Chamber • To avoid the middle-income trap, 2017: Addressing Energy Challenges of Commerce and Industry, Asia-Pacific developing countries by Mr. Kensuke Tanaka, Head of Asia Bangladesh. should pay increased attention to Desk, OECD Development Centre. The main observations, conclusions, the quality and cost of education. The Outlook was jointly produced recommendations and outcomes of Instead, they have focused more by OECD, ESCAP and ERIA. The the session were as follows: on the access of education so far. following discussants provided • Discussants highly appreciated • Robust growth in Emerging Asia is comments: Prof. Dr. Naoyuki the joint publication that provides expected to continue though some January-March 2017 January-March 15
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key risks, such as slowing export more resources through effective solar and wind, must be promoted growth, low interest rates in the taxation for infrastructure perhaps through the carbon advanced economies and sluggish development in Asia and the pricing option, which has not been productivity growth, need to be Pacific where infrastructure is popular in Asia and the pacific but addressed. relatively low quality. can make fair pricing based on the • The quality of governance is also • Although regional integration has CO2 emission for users. For this an important factor in the capacity achieved significant progress in purpose, regional cooperation on to implement reform properly. a number of areas, such as trade renewable energy is crucial. For example, when the rule of tariff and transport infrastructure, • Quality of infrastructure, which law improves, the informal sector particularly among the ASEAN enhances connectivity among decreases. The governments are member states, it is still at a provinces and nations, associates encouraged to foster effective relatively slower pace. positively with spillover effects public and private dialogues for • Fossil fuels remain the main source (e.g., private investment, the enhancement of governance. of energy in emerging Asia where employment, SME development) • Governments should mobilize renewable energy sources, such as and increases tax revenue. Closing Session he closing session was moderated Pacific (ESCAP), in the concluding beacon of hope, not only because Tby Mr. Debapriya Bhattacharya, session. He said strategies have to be of India and China but also for Distinguished Fellow, Centre for better aligned for the private sector's new entrepreneurship and ongoing Policy Dialogue, Bangladesh. Session contribution. reforms in many countries even moderators or their representatives in the face of falling exports and delivered summaries of their Debapriya Bhattacharya, productivity, he added. distinguished fellow of the Centre respective sessions. Bhattacharya said the continent is innovating not only in cases of reforms, policies, institutions, enterprises and inclusive finance. “Asia is also innovating regional and sub-regional cooperation,” he said. “On one hand, you have the turbulent transition. On the other hand, we have the most ambitious programme, namely SDGs,” he said, adding that it remains to be seen how a bridge can be built between the turbulent transition and delivery of the ambitious 2030 Agenda.
Mr. Hongjoo Hahm made a closing for Policy Dialogue, said the world is “It is the role of the private sector by statement on behalf of ESCAP. going through a turbulent transition. way of delivering and connecting the Mr. Mahbubur Rahman made a He said the scenario has totally two and implementing the SDGs. closing statement on behalf of ICC changed from what was five years It is much beyond the corporate Bangladesh. ago when the role of globalisation social responsibility and it is much was applauded and that now people more about ethical business,” he Speakers at the two-day event at are talking about its pitfalls. said. Bhattacharya said business the Sonargaon hotel in Dhaka leaders themselves have spoken recognised the significant role The noted economist said new types about the new partnership with the businesses can play in implementing of disasters are appearing, such government and the civil society, and the Sustainable Development Goals as those in the form of Ebola and strategic partnership across borders (SDGs) that go beyond just providing Zika, along with natural calamities. with. “That gives us the hope,” he decent jobs. “The role of the private Bhattacharya, however, also talked added. sector in implementing the SDGs about opportunities in times of Asif Ibrahim, chair of the is enormous,” said Hongjoo Hahm, trouble. “...it is temporary. But ESCAP's taskforce on disaster and deputy executive secretary of the those who survive are tough people climate risk reduction, presented United Nations Economic and and countries,” he said. During recommendations from one Social Commission for Asia and the turbulent times, Asia remains the of the sessions he moderated. January-March 2017 January-March 16 ICC Bangladesh News
The entrepreneur said a central under regional trade agreements. Cooperation) for giving a big push to network can be established where Schemes like "Everything but Arms" regional connectivity. Speakers said businesspeople will share their may be followed, it added. structural policy reforms need to be practical experiences in order to strengthened in areas of education, Speakers in the session recommended reduce disaster risks. completion of regulatory procedures governance and infrastructure, and The private sector, governments, civil in a single day and effective that regional integration and quality societies and development partners implementation of agreements under infrastructure are very critical for will have to work together to improve initiatives such as BBIN (Bangladesh- sustainable growth. quality of life, he said. Bhutan-India-Nepal), the BCIM Corridor (Bangladesh–China– Mahbubur Rahman, president of the The session on supporting trade and India–Myanmar Forum for Regional ICCB, and Md Mosharraf Hossain transport facilitation for regional Cooperation) and the BIMSTEC (the Bhuiyan, senior secretary of the integration advocated for not Bay of Bengal Initiative for Multi- industries ministry, also spoke at the keeping any sensitive list of products Sectoral Technical and Economic concluding session. Press Briefing he two-day Asia Pacific Business at the regional level with Nepal, related procedural issues, the TForum (APBF) ended with a India and Bhutan possessing huge delegates said. The forum proposed call on the private sector to play a potentials while Bangladesh could to establish a single window facility greater role in implementing the have access to such energy sources at the border points while ensuring Sustainable Development Goals if the country allows these countries that all the regulatory formalities (SDGs) said Mahbubur Rahman, to use its territory to transmit the were completed within one day. The President, International Chamber of hydropower. conference also called for creating a Commerce-Bangladesh at the press 'customs clearing facilitation body' to briefing on 09 February evening. It also called for greater investment in developing renewable and alternative arrange dialogues among the market In the statement Mahbubur Rahman sources of energy and an enabling and non-market economic agents said the business could play a regulatory framework to attract and try to come with actionable significant role in implementing the investment in renewable energy solutions. SDGs, going beyond just creating generation. Calling for supporting Speakers also observed that SMEs decent jobs, enhancing resources trade and transport facilitation for in the least developed countries and energy efficiency, generating regional integration, speakers at needed to be integrated with the income and reducing inequality. He the conference said the sensitive list international value and supply said the Forum called for promoting of trade must be reduced to zero foreign direct investment, improving under the regional trade agreements chains. They also called for initiating infrastructure and facilitating whereas the schemes such as regional financing schemes to be cross-border trade to ensure that 'Everything but Arms' should be the specific for the micro-SMEs. the private sector contributes to reference point. In the press briefing Mahbubur achieving the SDGs. The authorized economic operators Rahman also informed that the next "The SDGs has been designed in should be allowed to work as a third Asia Pacific Business Forum will be such a manner that private sector party agent to facilitate customs held early next year in Hong Kong. participation is essential to achieve these goals," said Mr. Rahman, who has become the new Chairman of UNESCAP Business Advisory Council.
Delegates observed that Bangladesh needed to optimise the production of energy to meet its growing demand. In this context, they called for a balanced mix of various energy sources, including solar, wind, coal and hydropower. The conference was told that hydropower generation January-March 2017 January-March 17
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Inaugural Speech of the Hon’ble President of the People’s Republic of Bangladesh H.E. Mr. Md. Abdul Hamid Asia Pacific Business Forum 2017 Venue: Pan Pacific Sonargaon Hotel Date: 8 February, 2017
Assalamualaikum Mr. Abul Maal Abdul Muhith MP, Hon’ble Minister for Finance; Mr. Tofail Ahmed, MP, Hon’ble Minister for Commerce; Mr. Rishad Bathiudeen, Hon’ble Minister of Industry and Commerce, Sri Lanka; Mr. Romi Gauchan Thakali, Hon’ble Minister for Commerce, Nepal; Prof. Dr. Gowher Rizvi, Adviser to the Hon’ble Prime Minister for International Relations; Dr. Mukhisa Kituyi; Hon’ble Secretary General of UNCTAD; Dr. Victor K. Fung, Keynote speaker and Chairman of Fung Group; Mr. Mahbubur Rahman, President, ICC Bangladesh; Dr. Shamshad Akhtar, Under-Secretary General of UN and Executive Secretary of ESCAP; Distinguished Guests; Ladies and Gentlemen A very good afternoon to you all. I am indeed very happy to be present amongst you at the inaugural Session of UN-ESCAP Asia Pacific Business Forum 2017 jointly organized by ICC Bangladesh, The world business organization and UN-ESCAP under the patronage of the Ministry of Commerce, Government of the People’s Republic of Bangladesh. I would like to congratulate the organizers for holding such an important business forum in Dhaka which is spearheaded to Sustainable Development Goals (SDGs) adopted by the UN General Assembly with a title `Transforming our world: the 2030 Agenda for Sustainable Development’. I believe this Forum is being held at an appropriate time of global economic recovery. We have to stand together and improve cooperation for building a better future for the generations to come.
Ladies and Gentlemen,
As we know that 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). This Forum has been providing the best platform for regional public-private sector dialogue on the role and needs of business in January-March 2017 January-March 18 ICC Bangladesh News achieving inclusive, resilient and sustainable development since its inception in 2004 in Shanghai, China. I am very proud that Bangladesh with its abundant potential is now working hand-in-hand with international and regional forum to create and promote global peace and harmony.
Distinguished Guests,
Asia Pacific region is one of the most potential areas in the world considering its geo-political location and diversity. This region is enriched with abundant natural resources, vast ocean, safe harbor and a wide range of market. It has also huge capable and efficient human resources who are inter-related with shared culture and history. The South-South and Triangular cooperation is necessary to promote and encourage global partnership and solidarity to transform the conditions of the Least Developed Countries and Land Locked Developing Countries. It is important to recognize the changing role of both state and market with varying country situations. In the past success has come through ensuring joint investments among nations in infrastructure and social sectors. We have to harness the prosperity and probability of this region for the socio-economic development of the people. Mutual trust and respect along with warm relations among the nations are essential to accelerate the pace of development. I believe, ESCAP can play a pivotal role in this regard.
Distinguished Gests Ladies and Gentlemen,
As you all know that poverty is the curse of human civilization. There are so many people in Asia and Pacific are living under the poverty line which must be addressed. Therefore, our focus should be given on this issue on priority basis for eradicating this menace with a view to building a happy and prosperous region. In line with SDGs, we have to work unitedly to free this region from the curse of poverty. I believe that socio-economic cooperation and integration including technical and information technology support are imperative among the countries of the region. Finding out the vulnerability, we have to give special attention and to undertake initiatives for boosting investment and production and creating job opportunity for the less fortunate people of this region.
Extremism and terrorism have been appeared before the human civilization as a concern of great threat. No country, oriental or occidental, north or south rich or poor, large or small is free from this threat. It is the greatest enemy of mankind, civilization and development. To build a congenial and healthy atmosphere not only for Asia Pacific region but also for global community for better living. We have to fight unitedly and coherently against this menace for the sake of entire mankind. The Government of Bangladesh is following “Zero tolerance” policy for combating terrorism. I urge the leaders of Asia pacific Region to come forward together to resist and fight against the terrorism for attaining continued peace, prosperity, stability and development.
Ladies and Gentlemen,
The Government of Bangladesh is focusing on initiatives regarding energy security, industrial ventures, water and waste management and infrastructure development. These will assist in achieving the 17 goals of SDGs that successfully uphold human rights and peace for reducing poverty, hunger and inequity.
The United Nation’s report on ‘Economic Social Survey of Asia and the Pacific’ had cautioned that almost all Asia- Pacific countries are highly vulnerable to climate change. It is the demand of time that we proceed towards our path of development together. Let us collaborate and cooperate with each other and then days of our success will not be far.
Hon’ble Ministers and Delegates from abroad,
I extend my sincere thanks and appreciation to you for attending this august gathering. I believe that your presence in this conference would surely open up a window of opportunity for exploring the potentialities of Asian countries and thus taking proper initiatives for better Asia. I wish you all a very successful stay in Dhaka.
Finally, I thank the National Committee of the ICC, UN-ESCAP and the Ministry of Commerce once again for taking the initiative to organize this Forum. I wish every success of the APBF and I hereby declare the ‘‘Asia Pacific Business Forum: Regional Integration to Achieve Sustainable Development’’ Open.
Khoda Hafez, May Bangladesh Live Forever. January-March 2017 January-March 19 ICC Bangladesh News
Address by Mr. Tofail Ahmed, M.P. Hon’ble Minister, Ministry of Commerce Government of the People's Republic of Bangladesh
Hon’ble President
Other Dignitaries
AssalamuAlaikum and a very good morning.
Let me begin by welcoming you all to the 3rd Asia Pacific Business Forum in the historic city of Dhaka. I would also like to take this opportunity to express my sincere appreciation to ESCAP and ICC Bangladesh for choosing this city as the venue for such an important meeting/ conference. It’s good to see again my dear friends ESCAP Executive Secretary and also Sri Lankan Commerce Minister whom I meet last month in Bangkok for the 4th Ministerial of the Asia Pacific Trade Agreement (APTA). I’m also happy to see the UNCTAD Secretary General, Nepal’s Commerce Minister and many others dignitaries who have come to Dhaka for this conference.
Hon'ble Delegates,
In the history of human being, global landscape of importance gets changed every time. The 21st century is said to be the Asia’s century. The impressive economic growth and development in the Asia Pacific region is a testimony to that. While the world witnessed a global a prolonged financial crisis, the Asia Pacific region proved almost resilient to the crisis. However, we need to prepare and we put our hands together to harness the full potentials of the region.
Dear Friends,
Globalization and regional integration is a fact and fashion in today’s politico-economic scenario. Asia Pacific countries are actually the front-runners in regional economic integration initiatives. Progresses in the ASEAN, APTA, SAFTA, BIMSTEC, BCIM, etc. are just a few instances in the big list of those initiatives. In the 4th APTA Ministerial held last month, 4th round tariff liberalization negotiation was accepted, which will bring more than 10 thousand tariff lines to be traded among the participating states either duty-free or with lesser duty in the coming days. To our information, the ASEAN FTA is running very well. IntraAsian trade and investment is also increasing day by day. But we should not be complacent. We need to go a long way in completely eradicating poverty from the Asian countries. To do so, the Asia Pacific countries need to take measures for addressing both tariff and non-tariff issues in order to boosting trade and investment among themselves and also outside Asia.
Dear Participants,
Let me take this opportunity to apprise you the recent happenings in Bangladesh. The present Government of Bangladesh came into office in 2009 following a landslide victory in election and was reelected in 2014. Bangladesh is moving ahead with the dynamic and visionary leadership of our Hon'ble Prime Minister Sheikh Hasina, the daughter of the Father of the Nation Bangabandhu Sheikh Mujibur Rahman, under whose leadership and sacrifice we earned invaluable independence in 1971. Bangabandhu dreamt of a 'Golden Bengal' (Sonar Bangla)where masspeople of Bangladesh would live in prosperity with equitable access to quality education, healthcare, rule of January-March 2017 January-March 20 ICC Bangladesh News law, standard of living and employment opportunities.
We inherited ainfrastructurally destroyed and devastated economy with almost no export income and foreign currency after our independence in 1971. Some world leaders regarded Bangladesh as a bottomless basket. But, the bottomless basket has turned into an emerging tiger, one of the fastest growing economies in the world with consistent growth rate above 6%, and in 2016 our growth rate was 7.11%. Bangladesh has already become a lower middle income countryas per the World Bank criteria. Today our export income has reached34.26 billion USD registering a growth rate of 9.77%. Recently, theeconomic and social progress of Bangladesh has been highly praised by Mr. Amartya Sen, Nobel Laureate, and Mr. Koushik Bose, Vice President of the World Bank. They stated that Bangladesh is a role model for many developing and least developed countries in terms of social and economic progress. The Hon'ble Prime Minister Sheikh Hasina has set Vision 2021 for Bangladesh to become a middle income and fully digitized country by 2021, when Bangladesh would celebrate its golden jubilee, the fiftieth anniversary of independence. Bangladesh dreams of becoming a developed country by 2041.
Dear Attendees,
Asia Pacific countries should put their best efforts to create a congenial atmosphere for flourishing trade. The policy makers should create appropriate mechanismwhile the business people and the entrepreneurs should strive to utilize that in augmenting business. I believe that exchange of views through the dialogue and conferences like this with participation of top policy makers, academics and business leaders will help to find the way forward.
I hope and wish that the two day-long conference will provide ample opportunity for the participants from the different countries to share their ideas on how the Asia Pacific business can have further momentum in moving forward. That will help us achieve the cherished goal of uplifting the lives of the millions of people in the Asia Pacific region out of poverty and attain the desired sustainable development.
Finally I wish pleasant stay in Dhaka of all the foreign country participants.
Khoda Hafez
Joy Bangla, Joy Asia Pacific Business Forum January-March 2017 January-March 21 ICC Bangladesh News
Address by Dr. Shamshad Akhtar Under Secretary- General of the United Nations and Executive Secretary of ESCAP
Hon’ble President of the People’s Republic of Bangladesh Distinguished Dignitaries, Excellencies, Ladies and Gentlemen, Welcome to the 13th session of the Asia-Pacific Business Forum hosted by the Government of Bangladesh and the International Chamber of Commerce Bangladesh. The ESCAP Business Advisory Council and its Sustainable Business Network need to be acknowledged for their steadfast support to his Forum along with ADB, CitiBank, IFC and the many other cooperating agencies for their contributions. Regional cooperation is a pertinent theme for this year and is assuming renewed significance. Asia- Pacific’s long standing engagement and traditions have helped promote regional cooperation, however progress is uneven and hence it has left many unrealized opportunities. Recent estimates suggest that our region is only achieving 47 per cent of its integration potential, and among the subregions, the largest untapped potential for integration is in South Asia and in North and Central Asia 1. The private sector can both influence regional integration, and be influenced by it. Private sector participation in infrastructure development, along with the provision of financing and new technologies is indispensable to create the cross-border transport, ICT and energy networks of the future. Governments cannot achieve this alone. In turn, this enhanced connectivity and reduced barriers to trade will open up new markets, reshape value chains and create multiple opportunities for private sector growth. New drivers of change will bring fresh impetus to regional integration efforts in our region and beyond. Key among these are the adoption of the global 2030 Agenda for Sustainable Development with its emphasis on addressing transboundary challenges; the formation of the ASEAN Economic Community; the implementation of the Belt and Road Initiative; and the move of the Eurasian Economic Union to form a single economic space. Adding to this is the renewed interest in moving forward on the Regional Comprehensive Partnership Agreement; and the adoption of fourth round of tariff concessions and framework agreements in investment, trade facilitation and services by the Asia Pacific Trade Agreement. Boosting regional integration in the Asia-Pacific has the potential to both create economic dynamism, and facilitate shared prosperity through promoting greater market integration, seamless connectivity, financial cooperation and stability, and improved living conditions. The implementation of the 2030 Agenda requires a fundamental rethink to set regional integration processes on a path that incorporates sustainability. If we are to deliver real solutions for sustainable development, we must harness the capacities of business and industries to innovate, bring new technologies to market and to scale up solutions. While the benefits of integration can be significant, they will not be realized without sustained efforts. An enabling policy environment needs to be put in place, and countries must deal with structural bottlenecks including infrastructure deficits, weak institutions and lack of capital. The private sector can make profound contributions to regional integration and sustainable development by driving productive processes to generate jobs and investment; and green growth to enhance social wellbeing and January-March 2017 January-March 22 ICC Bangladesh News the health of the environment. Indeed the private sector is interested in achieving the Sustainable Development Goals, or SDGs. Research indicates that 71 per cent of businesses are already planning on how to engage with the SDGs and 41 per cent say they will embed the SDGs into their business operations2. Through delivering on the SDGs, the private sector could stand to benefit from a potential $12 trillion worth of business opportunities globally, which could create almost 380 million jobs by 20303. It is clear the private sector cannot afford to ignore the SDGs. Several processes are also currently underway to ramp up private sector engagement with the Sustainable Development Agenda4. Among them, I would like to highlight the global SDG Compass5 initiative, which provides companies with an innovative guide to align their strategies with relevant sustainable development goals, or SDGs, and measure and manage their impacts. Additionally, ESCAP, through our Sustainable Business Network Task Force on Banking and Finance has also developed the Responsible Business Model 2.0, a framework to facilitate companies’ engagement with the SDGs and enhance their ability to address pressing global challenges.
Recognizing the potential of the private sector for sustainable development, it is critical that the Asia-Pacific region develops new forms of partnerships with businesses that go beyond the delivery of traditional government- to-government official development assistance and technical support. Such partnerships must go deeper and should focus on key areas of inclusive and sustainable development that are of mutual interest, including science, technology and innovation, human resource development, infrastructure development and multi-dimensional South-South cooperation.
Governments must also take the lead in ensuring that frameworks and national action plans are in place to allow for greater business contributions to the SDGs and to regional integration goals. Likewise, they must also take steps to eliminate hurdles preventing the private sector from operating effectively, such as irregular or unstable power supply, weak or limited property rights, and barriers to cross-border trade. The Asia-Pacific is home to 17 countries ranked in the bottom half of the World Bank’s East of Doing Business index, including Bangladesh, which is ranked at 176 out of 190 economies. In this context, I would like to highlight the UN treaty on facilitation of cross-border paperless trade, which is currently open for signature, which will serve to cut cross-border trade costs by up to $7 billion per year within the region.
ESCAP supports dialogue among business leaders in our region on issues related to sustainable development, which feed into ESCAP’s normative and policy advice work. ESCAP’s Asia Pacific Forum on Sustainable Development and our Financing for Development Forum; coupled with our endeavors to strengthen regional economic cooperation and integration can serve as effective vehicles to promote dialogue and strengthen cooperation between member States and the private sector.
In this vein I hope to see EBAC reform and consolidate to help support ESCAP in support of the SDGs, and I look forward to the conclusions of the next APBF, which is to take place early next year in Hong Kong. This timing is crucial to enable the outcomes of APBF to feed into the Asia Pacific Forum on Sustainable Development and Financing for Development Forum I mentioned above, which in turn, feed into the larger global agenda in New York.
To conclude, this Forum provides an opportunity to further reflect on how the private sector can work with governments and the UN system to progress regional integration and sustainable development. I look forward to your views and perspectives, and hope they can be translated into concrete results and recommendations.
I thank you and wish the Asia-Pacific Business Forum 2017 every success. January-March 2017 January-March 23 ICC Bangladesh News
Address by Mahbubur Rahman President International Chamber of Commerce-Bangladesh
Bismillah-hir Rahmanir Rahim
Hon’ble President of the People’s Republic of Bangladesh
Distinguished Dignitaries,
Excellencies,
Ladies and Gentlemen,
Assalamu Alaikum Wa Rahmatullahi Wa Barakatuhu
On behalf of the Bangladesh National Committee of the International Chamber of Commerce-The world business organization, I would like to warmly welcome you all to the Inaugural Ceremony of the Asia Pacific Business Forum (APBF) 2017. Since its inception in 2004, the APBF’s mission has been to provide the best platform for regional public- private dialogue on the role and needs of business in achieving inclusive, resilient and sustainable development.
We are very glad and honoured to organise the first ever Asia Pacific Business Forum in Dhaka, at the request of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP). The theme of this year’s Forum is “Regional Integration to Achieve Sustainable Development”, as envisaged by the United Nations’ Agenda 2030.
We are grateful that his Excellency, the Hon’ble President of the People’s Republic of Bangladesh, has very graciously agreed to inaugurate the Asia Pacific Business Forum 2017. This is a tremendous source of inspiration for all of us.
I would also like to take this opportunity to gratefully thank H.E. Mr. Rishad Bathiudeen, Minister of Industry and Commerce, Sri Lanka; H. E. Mr. Romi Gauchan Thakali, Minister of Commerce of Nepal; Dr. Mukhisa Kituyi, Secretary-General of UNCTAD; Mr. Wencai Zhang, Vice-President ADB and Dr. Victor K. Fung, Group Chairman, Fung Group for being present at this occasion and support our case.
I extend my deep gratitude to the Hon’ble Minister for Finance, Hon’ble Minister for Commerce and Hon’ble Adviser for International Affairs & Special Representative of the Hon’ble Prime Minister of the government of Bangladesh for their whole-hearted support to us.
Finally, I would like to thank, all of our partners and distinguished delegates without whose unreserved support, organizing this event could not have been possible.
Ladies & Gentlemen,
The global economy delivered an impressive output of about US$75 trillion in 2016 and expected to reach $100 trillion by 2021. However, the existing outmoded operating system of the world economy is constrained in its ability to deliver adequately fair social outcomes and to protect the planet. Indeed, we need a new global economic architecture to overcome these structural challenges. January-March 2017 January-March 24 ICC Bangladesh News
In this context, I would like to put forward three prepositions before you.
First, this is an era where Asia has emerged as the powerhouse of world economy. The continent accounts for 4.44 billion people or about 60 percent of the world population inhabiting 30 percent of the world’s land mass. The young population of Asia has been the driving force behind the success of its labour intensive export sector. The demographic dividend enjoyed especially by South and South-East Asia is undoubtedly a force to reckon with. Hence, in the coming years, Asia will play the most critical role in sculpting the future of the world development. Moreover, The Asia-Pacific region requires about 40% of the world’s bio-productive capacity with China being the second greatest consumer in the world, using up 15% of the world’s total bio-capacity. Asia is also home to diverse societies, each with their own creativity and technological prowess.
Second, we are currently living in an era where the global development discourse will be guided by the sustainable development goals (SDGs) over the next decade and half. This comprehensive and transformative agenda reiterates the role of the private sector several times, particularly in ensuring sustained and inclusive economic growth, responsible consumption and production, and the creation of more decent jobs. The SDGs demand a committed private sector in conducting their businesses in a more responsible and accountable manner.
The third and final point. I would like to emphasise on is the critical role of regional and sub-regional cooperation in realising the potential of the Asia-Pacific region as well as implementation of the SDGs. While the private sector’s vital role in shaping and delivering regional cooperation is accepted as conventional economic wisdom, there is a need for necessary legislative and regulatory frameworks to attain its espoused objectives. However, a “one size fits all” model may not be applicable given the varying level of development and endowments as well as heterogeneous nature of markets in the Asia-Pacific. Our designs should be sensitive to contextual realities and geared to meet the diverse set of challenges.
Excellencies, Participants and Guests,
The UN 2030 Agenda addresses the needs of the people in both developed and developing countries, and emphasises that “no one should be left behind” in the course of delivering the Sustainable Development Goals. Bangladesh has been one of the star performers in achieving most of the Millennium Development Goals (MDGs). The country has been a front runner in integrating the SDGs in its Seventh Five Year Plan. The private sector along with other sections of the society remains engaged with the government in ensuring the SDGs are implemented in Bangladesh.
I would like to conclude by expressing my sheer optimism for platforms like the Asia Pacific Business Forum in addressing the emerging challenges and actualising the potential of the countries of the region. It is my firm believe, that this Forum 2017, which has brought together policy makers, business leaders, expertise from home and abroad – will contribute in articulating strategies for achieving SDGs in the Asia Pacific Region. Effective public and private partnerships will play a key role in this regard.
Thus, this Forum is also an expression of commitment of the private sector to work hand-in-hand with the Government in achieving higher accomplishments in the near future.
Friends,
I thank you all again for joining us. I extend to all the participants our very best wishes for a productive engagement in tomorrow’s sessions.
Mahbubur Rahman Dhaka, Bangladesh President February 08, 2015 ICC Bangladesh January-March 2017 January-March 25 ICC Bangladesh News
Keynote Address by Victor K Fung Bangladesh 8 February 2017
Your Excellency Mr. Mohammad Abdul Hamid, Honorable President of the People’s Republic of Bangladesh, Excellencies, my good friend ICC Bangladesh Chairman Mabubur Rahman, Ladies and Gentlemen. I am greatly honored to be addressing the distinguished participants of the UN ESCAP Asia Pacific Business Forum, held for the first time here in Dhaka. I would like to start by declaring my admiration for Bangladesh’s tremendous achievements under the Millennium Development Goals. I look forward to its continued achievements under the Sustainable Development Goals about which we will hear more at this Forum. For my address, I thought it would be useful to step back - and look ahead - to an economic initiative that, I believe has a major bearing on our region’s future over the next 10 years and beyond. It also promises to be a significant driver of the next era of economic development in China, as well as a powerful stimulus for regional and global economic growth. I refer to what is popularly called “the 21st Century Silk Road Project”. In China it is known as “One Belt, One Road”, or simply, the “Belt and Road Initiative”. Many people expressed surprise at President Xi Jin Ping’s robust defense of globalization at the Davos meeting last month, against a backdrop of rising anti-globalization sentiments in some parts of the world. But this should not be a surprise. For over three decades, China has been embracing globalization which has lifted hundreds of millions out of poverty and contributed to vibrant economic growth all over the world. Of course globalization has resulted in some dislocations and its benefits have not always been fairly distributed. But these are problems to be addressed, not reasons to replace globalization with protectionism and narrow nationalism. The Belt and Road is a visionary project which is very much in line with the world’s trend towards globalization over the last 30 years. President Xi outlined China’s “Belt and Road” vision during a seminal speech at the Boao Forum in March 2015, where a strategic framework was proposed to bring the concept closer to realization. A top priority is infrastructure connectivity, for which a US$40 billion Silk Road Fund has been established. This is in addition to the new Asian Infrastructure Investment Bank, whose initial capital base is US$100 billion. As the project is a work in progress, many details of the “Belt and Road Initiative” still need to be filled in. What we know so far is that the “Belt” refers to the overland route, to the north - the traditional Silk Road of Marco Polo’s travels. As in ancient times, it starts in Xian, traverses Central Asia all the way up to Russia and across to the Baltics, then down through Europe all the way – notionally - to Venice, where the original Silk Road terminated. The “Road” is to the south. It is basically the maritime route travelled by the famous Chinese Admiral Zheng He during the Ming Dynasty, some 600 years ago. It goes from the East Coast of China, where Zheng He set sail, down the coast of southern China to Hong Kong, then to Vietnam, Singapore and other ASEAN countries, through the Malacca Strait, across to the Indian Coast, then further across to East Africa, up through the Middle East, partially overland to Turkey and also ending up in Venice. Linking the north and south routes are a number of economic corridors. Of particular interest to us here is the Bangladesh-China-India-Myanmar Economic Corridor. This positions Bangladesh as a key country in this visionary project. In all, the “Belt and Road Initiative” will link some 60 countries and 4.6 billion people. According to research by the Fung Business Intelligence Centre, these countries jointly account for 37% of global GDP and nearly one-third of the world’s household consumption. January-March 2017 January-March 26 ICC Bangladesh News
Before I elaborate on the implications of those numbers, I would like to share my thoughts on China’s motivations behind this bold vision. To my mind, “the Belt and Road Initiative” is part of China’s overall response to a new and dramatically changed situation. After decades of high-speed growth, GDP growth is now around 6% to 7% - what Chinese leaders call “the new normal”. Of course, today’s slower growth is against a much bigger base. But China’s acceptance of this “new normal” is a significant statement that the leadership now values quality of growth, including inclusiveness and environmental protection, over speed of growth. In particular, “the new normal” means China being less dependent on investment and exports, and more on consumption in the domestic Chinese market. The big push now is also towards innovation and high-tech production across 10 industry areas, including robotics. There is also a major focus on integrating information and industry, including the use of big data. At macro level, China knows that “the new normal” means rebalancing its economy towards domestic consumption. Long-term, that is good news for the global economy because it heralds China’s coming of age as a consumer market. The challenge for China, though, is that such rebalancing potentially involves doing away with an estimated 200 million jobs in the export sector. How can China – or any economy, for that matter – generate that number of new or replacement jobs? A big part of the answer is for China to enlarge its services sector. Today, more than 50% of China’s economy is derived from services. Although that is quite remarkable when you consider that the figure was more like 20% in 1980, it is not enough. To my mind, China should be aiming for 60-70% by the middle of the century if it is to meet its aspirations to be a developed country and first-tier economic power. In other words, China needs to add up to 20% to the contribution of services to GDP in just one generation. Taken together, these directional changes – moving to higher-value industries, boosting domestic consumption and expanding China’s services sector – are monumental. They cannot be done with “business as usual”. That, to my mind, is the backdrop to China’s pursuit of important new economic initiatives like the Belt and Road Initiative. All these have enormous implications when you consider what is happening to global patterns of consumption. The OECD countries accounted for 83% of global consumption in 1980. Today, they still represent the bulk of consumption but their share has gone down to 67%. If you project out another 30 years to the middle of the century, that share will have dropped to below 50%. So who will pick up share from the OECD countries? Obviously, the answer is non-OECD countries, including China, India, and developing economies in ASEAN, the Middle East, Africa and Latin America. These are where a global middle class is rising, empowered as no other consumers before them by digital technology and mobile communications. According to an OECD study, this new middle class is expected to number 3.2 billion by 2020 – just three years away – and 4.9 billion by 2030. Almost all of this growth will come from Asia, which is forecast to represent 66% of the global middle class population by 2030. That is when consumer spending from the global middle class is expected to reach US$56 trillion, with Asia accounting for nearly 60 per cent. You can begin to see how all the pieces fit together. Global economic re-balancing; China, the world’s second-largest economy, changing direction; the rise of a new global middle class, anchored in Asia… And, the Belt and Road Initiative, physically linking and integrating the lion’s share of the non- OECD markets. Many of us at Li & Fung remember the days when flows were relatively simple. Containers packed with consumer goods headed West from China and other parts of Asia; empty containers headed East, returning from Europe and the US. In future, and with the added impetus of the Belt and Road, if you manufacture in China you will not export just to America and Europe. You will leave some goods in China, you will export others to Southeast Asia, some to India, plus you will continue to ship to Europe and America. The flows will be multidirectional and more widespread than ever. It is already happening. Although China is taking the initiative - with policy coordination, capacity building, trade facilitation and financial cooperation – the Belt and Road Initiative will be global trade’s equivalent of public goods. Once the physical networks are upgraded and expanded, they will be open to everyone. We can expect all countries along the route to trade more with each other. With some 60 countries in this super-connected network, it will potentially be one of the largest economic groupings in the world – maybe the largest. This offers exciting opportunities that are open to all who choose to participate. Ladies and Gentlemen, I would like to conclude by reiterating that the Belt and Road Initiative is underpinned by a deep commitment to globalization and the sharing of prosperity among nations through trade and investment flows. By participation in this project, let’s also be guided by the UN Sustainable Development Goals to ensure that growth will do no further harm to our planet, that it is inclusive and that prosperity can be shared equitably and even more widely. I wish all of you a productive discussion at this Forum and a most successful outcome. January-March 2017 January-March 27 ICC Bangladesh News
New EBAC Chairman Mahbubur Rahman, President International Chamber of Commerce (ICC) – Bangladesh, & Chairman & CEO, ETBL Holdings Limited. Mr. Mahbubur Rahman (1942) is the President of International Chamber of Commerce (ICC) – Bangladesh, The world business organization & the Chairman & CEO of ETBL Holdings Limited (Estd. 1962)- a conglomerate of 7 (Seven) wholly owned commercial & industrial affiliates and stake holder of 4 (Four) PLCs. He is the Founder Chairman of Eastland Insurance Co. Ltd. (plc) (Estd. 1986), Bangladesh International Arbitration Centre (BIAC) – The Institution for Alternative Dispute Resolution (2004) and International Publications Limited (Publishers of The Financial Express – The National English Financial Daily, 1993).
Mr. Rahman is a Founder Member of Business Advisory Council (EBAC) of UN-ESCAP; Vice Chairman of Bangladesh Foreign Trade Institute (BFTI), Member of the Board of Governors of Institute of Business Administration (IBA) of the University of Dhaka, Founder Member of the Independent University Bangladesh (IUB) and a Board Director of Karnaphuli Fertilizer Co. Ltd. (KAFCO).
Mr. Rahman was the President of the Federation of Bangladesh Chambers of Commerce & Industry (FBCCI) -- The Apex National Chamber of Bangladesh (1992-1994), The Dhaka Chamber of Commerce & Industry (DCCI) -- The premier Chamber of the country (1985-86 and 1991-92), Founder Vice President (1993-95) of 8-Nation SAARC Chamber of Commerce and Vice President (West Asia) of 57-nation Islamic Chamber of Commerce in 1993-95.
During 1972-79, Mr. Rahman represented Government of Sri Lanka in Bangladesh before Colombo setup its Diplomatic Mission in Dhaka. He was the Founder Director and Chairman of National Bank Limited (plc), (Estd. 1983) Former Board Member of BIMAN-Bangladesh Airlines (National Carrier of Bangladesh), The Dhaka Stock Exchange and Member of the Board of Governors of Bangladesh Open University (BOU).
Mr. Rahman was awarded The Lifetime Achievement Award in 2012, by the “DHL-The Daily Star” sponsored most prestigious ‘Bangladesh Business Award’.
Mr. Rahman was honoured as a “Presidential Friend of Indonesia” in 2012 at its 67th Independence Day in Jakarta by the President His Excellency Mr. Susilo Bambang Yodyono of Indonesia.
Mr. Rahman has been honoured by The Daily Star as eminent personalities for Lifetime Contribution to Nation- Building in 2016.
He hosted several International Business & Economic Events in Dhaka attended by Heads of many Multi-Lateral Agencies as well as Heads of Governments & led many Trade & Investment Delegations to a number of overseas destinations including heading a few Business Delegations as entourages of the President/Prime Minister of Bangladesh. January-March 2017 January-March 28 ICC Bangladesh News
Summary Records of the Twelfth Meeting of the ESCAP Business Advisory Council (EBAC) ntroduction Executive Secretary of ESCAP. dialogue should be enhanced. He I He informed the meeting that the also called on a review of funding The twelfth meeting of the ESCAP Executive Secretary of ESCAP would of EBAC/ESBN/APBF activities and Business Advisory Council (EBAC) leave at the end of May. He recognized the conclusion of partnerships and and the third meeting of the ESCAP the good work of the ESBN task forces recruitment of sponsors for this Sustainable Business Network but called for stronger alignment purpose. (ESBN) were held at the Pan Pacific of the work of ESBN with that of Sonargaon Hotel in Dhaka, on 8 ESCAP. He also requested EBAC and Mr. Mohamed Iqbal Rawther, Chair February 2017 prior to the opening ESBN to discuss leadership change, of EBAC, welcomed the remarks of session of the Asia-Pacific Business the DES and asked how to address including transitory arrangements Forum (APBF) 2017 in the same the DES views and meet expectations until a new Chair could be elected venue. The meetings were attended of ESCAP. He reminded the and to reflect on the mandate, by 24 EBAC/ESBN members and meeting that the basic and founding scope and membership of EBAC/ advisors, and three observers. The objective of EBAC was to provide ESBN. He proposed a core set of following ESBN Task Forces held recommendations to ESCAP and members of EBAC and broadening separate meetings at the same venue its member governments and that its geographical coverage to expand on 7 February 2017: Banking and this role should be strengthened. members from under or un- Finance; Pacific Islands-Asia; while Some form of consolidation between represented sub-regions of ESCAP. the Task Force on Digital Economy EBAC and ESBN could take place to and the Task Force on Green Business With regard to EBAC, he provide useful feedback to ESCAP. with update on the Task Force on looked forward to a smaller and In addition, he suggested to Young Entrepreneurship organized stronger group of senior business consolidate task forces and make a joint meeting. The Task Force on representatives that could advice them more aligned with ESCAP Disaster and Climate Risk Reduction ESCAP and the ES on ESCAP policies governance structure. He noted the organized a session as part of the and programmes. Its outcome role of certain champions of EBAC APBF titled as “Devising Strategies documents should feed in directly and the important contribution of for Resilience: Role of Business in to ESCAP’s inter-governmental Disaster Risk Reduction and Climate Bangladesh in particular. He called processes and meetings such as for a reduced number of task forces Change Adaptation” instead of a task those on Financing for Development force meeting. by consolidating some of them and and the Asia-Pacific Forum on noted that the time was opportune Opening and Welcome Remarks Sustainable Development, and for change, which should not be possibly the Commission and its drastic but aimed at continued Mr. Hongjoo Hahm, Deputy committees. He noted that EBAC renewal. Executive Secretary (DES) of ESCAP, was unique among all regional delivered his opening remarks on commissions of the United Nations Mr. Iqbal further noted that the behalf of Dr. Shamshad Akhtar, but that the level of multi-stakeholder private sector played a dominant role
Twelfth EBAC Meeting is in progress January-March 2017 January-March 29 ICC Bangladesh News
in economic development and that title to be determined) of EBAC. be proposed in due course by the it should be pro-active in working Detailed terms of reference for this Secretariat in consultation with the with governments to achieve the position would be presented for Chair, Vice-Chair, and Executive sustainable development goals adoption at the next EBAC/ESBN Director of EBAC; (SDGs) instead of merely reacting to meeting; governments. 8. EBAC welcomed the following 4. Mr. Iqbal Rawther and Mr. new members: Mr. Michael Yeoh, Finally, he informed the Meeting Chote Sophonpanich were made Co-Founder and Chief Executive that he was no longer seeking to Honourable Chairs and Advisers Officer of the Asian Strategy & extend his term as Chair of EBAC. of EBAC by acclamation; Leadership Institute (ASLI) of He concluded by thanking the Government of Bangladesh and the 5. Future elections of Chair and Vice- Malaysia; Mr. Fuad A.Hashimi, International Chamber of Commerce Chair could be conducted through Executive Director of the Centre (ICC) Bangladesh for hosting EBAC/ some form of voting though of Excellence in Responsible ESBN meetings and APBF 2017. consensus would be pursued on a Business of Pakistan; and Mr. Ken priority basis; Pan, President of the Trade and Four task forces made briefings: Industry Association of Singapore Task Forces on Green Business, 6. A meeting with the Task Forces (TIAS) subject to confirmation of Digital Economy and Young on Banking and Finance, Green the EBAC Membership Committee Entrepreneurship; Task Force on Business and Digital Economy and completion of due diligence by Agriculture and Food; Task Force on would be convened in Hong Kong the secretariat. Banking and Finance; Task Force on in April to discuss the preparations Disaster and Climate Risk Reduction for APBF 2018. Closing Session (DCRR). 7. The next EBAC/ESBM Meeting Mr. HongjooHahm and Mr. The twelfth EBAC Meeting made the would be held as part of the Fifth Mohamed Iqbal Rawther made following decisions: Trade and Investment Week of closing statements and congratulated 1. Mr. Mahbubur Rahman, President ESCAP, 30 October – 3 November Mr. Mahbubur Rahman, ICCB of International Chamber of which would allow EBAC to report President & Chairman ETBL Commerce, Bangladesh, was on its outcome to the fifth session Holdings Ltd. on his election as Chair elected Chairman of EBAC by of the Committee on Trade and of EBAC. The Meeting expressed its acclamation; Investment which would be held high appreciation to Mr. Iqbal for from 31 October to 2 November his long and outstanding service as 2. Mr. George Lam was elected Vice- 2017. The meetings would be held Chair of EBAC and to Mr. Chote Chair or EBAC by acclamation; on 29 and 30 October subject to as Vice-Chair. Mr. Chote delivered 3. Mr. Asif Ibrahim was elected confirmation from the secretariat. a brief closing statement wishing Executive Director (or alternative The agenda of the Meeting would EBAC all success. Roundtable Discussion on 'Digital Bangladesh: Transformation in Business, Finance and Banking' he Bonik Barta and IBM The world is now experiencing from different sectors expressed their Tjointly convened a Roundtable the greatest information and viewpoint and agreed they have to be Discussion on 'Digital Bangladesh: communication technology more conscious and tactful regarding Transformation in Business, Finance revolution in human history. acceptance of new technology and its and Banking' due to IBM Chairman Digital tools are invading the security. & CEO Mr. Randy Walker’s visit business environment, provoking Randy Walker said once the to Bangladesh on March 06 at Pan significant changes in the way we Pacific Sonargaon Hotel. Mahbubur technology was only practiced by work, communicate, and sell. This Rahman, President, International the people who were related to the has given rise to new opportunities Chamber of Commerce-Bangladesh specific sector but nowadays it is a Chaired the Round Table. Aftab and has triggered the growing common practice for everyone. Now ul Islam, Director, Bangladesh need of Digital Transformation everyone is talking about technology Bank gave the Welcome Address. of our enterprises. Besides all the and more importantly the security. Mr. Randy Walker IBM Chairman technological advancement security People want to get access to the most & CEO and Mr. Karan Bajwa, is the main concern for sectors like advanced technology but they don't Managing Director of IBM India business, finance, and banking. In have any idea what is going to happen were the Key-Note Speaker. the roundtable session, all the CEO's next if they have been attacked. Likely January-March 2017 January-March 30 ICC Bangladesh News a person, an organization also wants Mr. Aftab ul Islam said IBM can work Dhaka University & Chairman, security. He also said IBM is aware of as a partner for Digital Bangladesh. Sadharan Bima Corporation),
this and they are working to ensure Peoples of Bangladesh will appreciate Kamal Quadir, CEO, bKash, Mamun the security of the systems around the partnership of IBM with the Rashid, Managing Partner, PwC the world. He said IBM is working Government. Bangladesh, Mohammed Nasir on Artificial Intelligence (AI), Big Uddin Chowdhury, Managing Data, Data Cloud, & Lake and Mr. Karan Bajwa emphasized on two Director, Capital Market Group providing Data Cloud service. IBM specific questions. One; Do we have Operation, Lanka Bangla Securities enough trained human resources, expressed their interest in investing Limited), Mominul Islam, Managing Two; How fast can we learn from in health sectors of Bangladesh as it Director and CEO, IPDC Finance, the mistakes others making. These is a growing sector besides working M. H. Samad, Managing Director two questions are very important for in banking and finance service as & CEO, Central Depository transformation. well. Bangladesh Ltd., Syed Mohammad Kamal, Country Manager, Master Randy Walker also said that they Syed Waseque Md Ali, Managing Card Bangladesh, Md. Jalalul Azim, only can provide security for the Director, First Security Islami Managing Director, Pragati Life external threats but the organization Bank Limited, Md. Ataur Rahman Insurance Limited, Basab Bagchi, itself has to ensure security from the Prodhan, Managing Director, Rupali Chief Executive Officer, Thakral inside. As we know bad peoples are Bank Limited, Golam Hafiz Ahmed, Information Systems Pvt. Ltd., everywhere and they attack from the Managing Director and CEO, inside not from the outside. NCC Bank Limited, M.A. Halim Shahzaman Mozumder, Consultant Chowdhury, Managing Director Thakral Information Systems Pvt. The chairman of the session Mr. & CEO, Pubali Bank Limited, Ltd., Gurmukh Singh Thakral, Mahbubur Rahman said only Mohammad Shams-Ul Islam Managing Director, Thakral Brothers trained people should be appointed (Managing Director & CEO, Agrani Pte Ltd & Chairman, Thakral to deliver the service. IBM can give Bank), Shibli Rubaiat-ul-Islam Information Systems Pvt. Ltd. were us that support to train people. (Dean, Faculty of Business Studies, the other panel speakers. Farewell to Indonesian Ambassador CC Bangladesh hosted a farewell relations between the two countries, Presidential Friend of Indonesia. He Ilunch on 25 January for H. in particular in expanding trade and also referred to inviting the Former E. Mr. Iwan Wiranata-atmadja, investment. President Yudhoyono as the keynote Ambassador of Indonesia to Speaker at the Asia Pacific Business Bangladesh. ICC Bangladesh Mahbubur Rahman recalled his Forum scheduled to be held in President Mahbubur Rahman visit to Indonesia in August 2012 at Dhaka on 8-9 February 2017. thanked Ambassador Wiranata- the invitation of the then President atmadja for his continuous support of Indonesia H.E. Prof. Dr. H. Indonesian Ambassador Wiranata- and cooperation in furthering the Susilo Bambang Yudhoyono as the atmadja mentioned that Indonesia January-March 2017 January-March 31 ICC Bangladesh News
was among the first Asian countries decided to extend visa on arrival to The lunch was attended by H.E. that recognized the Independence of Bangladesh visitors to Indonesia, the Ms. Panpimon Suwannapongse, Bangladesh as a sovereign State on 25 Ambassador mentioned. Ambassador of Thailand to February 1972 and among the first Bangladesh; H.E. Ms. Nur countries that established diplomatic Ambassador Wiranata-atmadja Ashikin binti Mohd Taib, High relations, marked by official opening thanked ICC Bangladesh President Commissioner-designate of Malaysia of the Embassy of the Republic of for arranging the Lunch and giving to Bangladesh; H. E. Mr. Benoit Indonesia in Dhaka on 1 May 1972. him the opportunity of meeting so Pierre Laramee, High Commissioner many business leaders of Bangladesh. of Canada to Bangladesh; Mr. Darryl Indonesia sees Bangladesh as one of He also said that he and his wife Lau Kai Mun, Consul General of the its major trade partners in South Asia will always cherish the love and Republic of Singapore to Bangladesh; because of its unique geographical affectionate that they have received H. E. Ms. Yasoja Gunasekera, High location, which links the South from the people of Bangladesh Commissioner of the Democratic Asian Region with the ASEAN. during his tenure. The Ambassador Socialist Republic of Sri Lanka The similarities and commonly also said that he always remember to Bangladesh; Mrs. Rokia Afzal shared culture, religion, custom and the brotherly affection that ICC Rahman, Vice President, ICCB; ICCB social values, as well as historical Bangladesh Mahbubur Rahman has Board Members A.S.M. Quasem, R. background are other related extended to him and his family. Maksud Khan; Mr. Matiur Rahman, chapter of potentials that lead to the Chairman & Managing Director, peoples of the two countries to more Both the countries are activein Uttara Group of Companies; Mr. actively interact , mutually complete the Non Aligned Movement Mahbub Jamil, Chairman, ICE and share one to another in the (NAM) and are members of the , Technologies Limited; Mr. Abul framework of boosting the bilateral Organization of Islamic Countries relations and cooperation between Kasem Khan, President, Dhaka (OIC), D-8, ASEAN Regional Indonesia and Bangladesh. Recently, Chamber of Commerce & Industry Forum (ARF), Centre on Integrated the bilateral trade between Indonesia (DCCI); Mr. Rizwan Rahman, Rural Development for Asia and the and Bangladesh reached 1.40 billion Managing Director, ETBL Holding Pacific (CIRDAP), Partnership in US dollars showing an increase of Ltd.; BIDA Executive Chairman, Kazi Population and Development (PPD), over 32% over the previous year. M. Aminul Islam; BIAC Chairman Indian Ocean Rim Association Mohammad A. (Rumee) Ali and In order to promote further relations (IORA) and other international Md. Khalilur Rahman, Managing with respect to trade and to promote organizations inside or outside the Director, National Housing Finance tourism, Indonesian government has United Nations. and Investments Ltd.
ICCB President Mahbubur Rahman (4th from left) is seen with Indonesian Ambassador H. E. Mr. Iwan Wiranata-atmadja (middle). Also seen in the picture sitting from left to right Thai Ambassador H.E. Ms. Panpimon Suwannapongse; Malaysian High Commissioner H.E. Ms. Nur Ashikin binti Mohd Taib; Canadian High Commissioner H. E. Mr. Benoit Pierre Laramee; BIDA Executive Chairman, Kazi M. Aminul Islam; Sri Lankan High Commissioner H. E. Ms. Yasoja Gunasekera; Rokia Afzal Rahman, Vice President, ICCB and Mahbub Jamil, Chairman, ICE Technologies Limited. Standing from left to right Md. Khalilur Rahman, Managing Director, National Housing Finance and Investments Ltd.; Mr. Darryl Lau Kai Mun, Consul General of the Republic of Singapore to Bangladesh; Mr. Matiur Rahman, Chairman & Managing Director, Uttara Group of Companies; BIAC CEO Mohammad A. (Rumee) Ali; ETBL Holding Ltd., Managing Director, Mr. Rizwan Rahman, DCCI President Abul Kasem Khan; ICCB Board Members, R. Maksud Khan; A.S.M. Quasem and ICCB Secretary General Ataur Rahman. January-March 2017 January-March 32 Images from the Gallery at APBF Dhaka 2017
H.E. Mr. Md. Abdul Hamid, Hon’ble President of the People’s Republic of Bangladesh is launching Special Publication of APBF.
A partial view of audience at Inaugural Ceremony.
H.E. Mr. Md. Abdul Hamid, Hon’ble President of the People’s Republic of Bangladesh (middle) is seen with H.E. Mr. Tofail Ahmed, M.P. (3rd from left); H.E. Mr. Rishad Bathiudeen, Minister of Industry and Commerce, Sri Lanka (2nd from right); ICCB President Mahbubur Rahman (2nd from left); ICCB Vice Presidents Latifur Rahman & Rokia Afzal Rahman (extreme right & extreme left) and ICCB Secretary General Ataur Rahman (3rd from right) is seen by the sideline of the APBF. January-March 2017 January-March 33 ICC Bangladesh News
Images from the Gallery at APBF Dhaka 2017
ICC Bangladesh President Mahbubur Rahman is presenting Memento to H.E. Md. Abdul Hamid, Hon’ble President of the People’s Republic of Bangladesh.
Group Picture of the ICC Bangladesh Executive Board Members with H.E. Mr. Md. Abdul Hamid, Hon’ble President of the People’s Republic of Bangladesh with other dignitaries.
ICC Bangladesh President Mahbubur Rahman presented crest to the Dignitaries at the Inaugural Ceremony. January-March 2017 January-March 34 ICC Bangladesh News
Images from the Gallery at APBF Dhaka 2017
H.E. Mr. Tofail Ahmed, M.P. Minister of Commerce, Govt. of the People’s Republic of Bangladesh is addressing at Plenary Session.
H.E. Prof. Gowher Rizvi is addressing at APBF Inaugural Session.
A view of participants at Plenary Session. January-March 2017 January-March 35 ICC Bangladesh News
Images from the Gallery at APBF Dhaka 2017
H.E. Mr Tofail Ahmed M.P., Minister of Commerce, Govt. of the People’s Republic of Bangladesh (middle) is seen with Former Adviser to the care taker govt. of Bangladesh Dr. Mirza Md. Azizul Islam (3rd from left), Principle Coordinator, Sustainable Development Goals (SDG) Affairs, PMO Mr. Abul Kalam Azad (2nd from left), UNCTAD Secretary General Dr. Mukhisa Kituyi (3rd from right), Mr. Wencai Zhang, Vice-president (Operations) (extreme right), Dato Iqbal Rawther (extreme left) & Tan Sri Dato’ Dr. Michael yeoh, Chief Executive Officer/ Director, Asian Strategy & Leadership Institute (ASLI) (2nd from right).
Speakers at the Business Session on Supporting SDGs through Digital Financial Models by Inclusive Business. The session was Moderated by Dr. Salehuddin Ahmed, Former Governor, Bangladesh bank.
Speakers at the Business Session on Supporting and Empowering Disadvantaged MSMEs to Become More Competitive and Sustainable. The Session was Moderated by Md. Mosharraf Hossain Bhuiyan, ndc, Senior Secretary, Ministry of Industries (middle) Bangladesh. January-March 2017 January-March 36 ICC Bangladesh News
Images from the Gallery at APBF Dhaka 2017
Speakers at the Business Session on Supporting Trade and Transport Facilitation for Regional Integration. The Session was moderated by Mr. Hedayetullah Al Mamoon, ndc; Senior Secretary Ministry of Commerce (4th from left) Bangladesh.
Speakers at the Business Session on Economic Outlook and Key Policy Challenges in Emerging Asia. The Session was Moderated by Mr. Masato Abe, Economic Affairs Officer, Business and Development Section, Trade, Investment and Innovation Division, UNESCAP (extreme left).
ICC Bangladesh President Mahbubur Rahman is seen with UNCTAD Secretary General Dr. Mukhisa Kituyi . January-March 2017 January-March 37 ICC Bangladesh News
Images from the Gallery at APBF Dhaka 2017
Dr. Victor K. Fung, Former Global Chairman of ICC and Chairman of Fung Group (middle) is seen with Prof. Barbara Meynert, Chair of the ESBN Task Force on Digital Economy; Mr. George Kam Ho Yuen, Board Director, Industrial and Commercial Bank of China (Asia) (2nd from right); Mr. Carson Wen, Chairman, Sancus Capital Limited (extreme left) and Mr. Sebastian Shiu Wai, Chairman & CEO Chung Mei International Holdings Ltd. (extreme right).
Outgoing EBAC Chairman Dato Iqbal Rawther (2nd from left) is seen with Tan Sri Dato’ Dr. Michael yeoh, Chief Executive Officer/ Director, Asian Strategy & Leadership Institute (ASLI) (2nd from right); Mr. George Kam Ho Yuen, Board Director, Industrial and Commercial Bank of China (Asia) (extrme right).
A group picture of APBF organizing committee January-March 2017 January-March 38 Bangladesh Economy
$100m ADB loan for skills development of young workforce he government on February programme (SEIP). The remaining Upskilling training for Bangladeshi T14 signed an agreement for amount from the ADB assistance migrant workers overseas, especially a $100 million loan with the is expected to be utilised before the for managerial skills, is an important Asian Development Bank (ADB) period of the financing facility ends goal under the expanded programme, for upskilling young workforce, in 2024. ADB said. Over 240,000 people, 30 especially women, to enhance job percent of whom are women, will Kazi Shofiqul Azam, secretary of the be trained by 2021, according to the Economic Relations Division, and statement. Kazuhiko Higuchi, country director of the Bangladesh resident mission The SEIP tranche 2 programme of ADB, signed the loan agreement is estimated to cost a total of at a ceremony in Dhaka. The second $133 million. In addition to the tranche of the SEIP will support $100 million ADB assistance, the expansion of the training programme programme is complemented by to nine priority industries, bringing $25 million from the Bangladesh in three additional industry government, $4.5 million from the opportunities, expand economic base associations (Bangladesh Agro- Swiss government, and $3.5 million and boost income. The assistance processors' Association, Industry from the private sector. The second is the second tranche of the $350 Skills Council for Hospitality and tranche of the ADB loan will have million multi-tranche financing Tourism, and Bangladesh Women a 25-year term, including a grace facility approved by ADB in 2014 for Chamber of Commerce and period of 5 years, and an interest rate the skills for employment investment Industry), and 15 training providers. of 2 percent per annum. Fast-track projects to get more loans from ADB
he Asian Development Bank will billion to Bangladesh in five years. Bhutan is yet to rectify. “We are ready Textend credit support beyond “We may provide $1.8-$2 billion to support the implementation but its commitment if Bangladesh can by 2017 and we delivered over $1.1 it is not so easy.” About the impact improve its spending capability by billion last year.” of the coal-fired power plant at the accelerating project implementation, Sundarbans, he said: “I believe that The ADB will approve a project ADB Vice President Wencai Zhang super technology will be used to soon to support the energy sector to said on January 09. “We will increase minimise the negative effect of the our lending to Bangladesh, but it help Bangladesh in generating more power projects on environment.” depends on how many projects are power by 2021. Zhang shed light ready to implement in the country.” on regional co-operation for power Zhang said Bangladesh has achieved “We can do more if the Bangladesh export and import, in his meeting a good progress to graduate to a with the state minister for energy. government wants to borrow middle income country and the The ADB will help Bangladesh in from ADB; but it is not only about private sector has a significant role to approval. We want to make sure that building transmission lines to trade play. He suggested Bangladesh ensure the projects are ready,” he said. power with India and Bhutan, he good governance, strengthen capital said. Speaking at a press briefing at the market and remove infrastructure ADB's Dhaka office, Zhang said Three countries have already rectified bottlenecks to materialise the the ADB would like to provide $18 the draft of BBIN agreement, but graduation properly. $300m WB fund to empower local government bodies
he government on March 06 establishing national budget transfers projects, the Local Governance Tsigned a $300 million financing for all 4,550 union parishads, the Support Project–3 (LGSP3) will agreement with the World Bank to lowest tier of local government. Built mainstream the annual financial strengthen local governments by on the success of two predecessor audits of the union parishads and January-March 2017 January-March 39 Bangladesh Economy
will benefit over 115 million people Nepal. “Started in 2006, the LGSP based monitoring of union parishads across the country. The project will was the first nationwide programme functions developed under the also pilot a fiscal transfer system for to provide block grants to union predecessor project. 16 municipalities in eight divisions. parishads to spend at their own discretion.” “Bangladesh has made significant progress in moving forward the “With consecutive projects, fiscal decentralisation agenda as stated in transfer to union parishads for the Seventh Five Year Plan,” said Kazi discretionary spending has increased Azam, secretary-in-charge of the 11-fold to Tk 2.23 million per union Economic Relations Division. LGSP3 parishad in fiscal year 2016 from Tk will also continue community-based 0.2 million in fiscal year 2007,”Fan initiatives and strengthen women's said. “LGSP3 will continue the role in decision-making. At least 30 momentum, and the enhanced percent of the grants will continue to discretionary resources will enable be earmarked for schemes prioritised The eligible municipalities will local governments respond to local by women. receive expanded block grants needs more effectively.” Azam and Fan signed the financing to give them access to greater Since 2006, the World Bank has agreement on behalf of the resources to respond to local service been financing the union parishad government and the World Bank, delivery priorities. “Over the past block grants. From the fourth at the ERD. The zero-interest credit decade, the World Bank has been year of the LGSP3 project, the from the International Development supporting the government's vision government will fully finance the Associa-tion, the World Bank's of a stronger and more accountable union parishad block grants out of concessional arm, has a maturity of local governance system,” said national budgetary allocations with 38 years, including a 6-year grace Qimiao Fan, World Bank country all the principal features. LGSP3 period; and carries a service charge director for Bangladesh, Bhutan and will fully functionalise the web- of 0.75 percent.
Four joint venture companies to invest $600m for 258MW solar power our joint venture companies are plant in the Teesta barrage area solar power plant will be set up in Fgoing to invest more than $600 under Nilphamari and Lalmonirhat Tangail. A consortium of Hanwha 63 million in different parts of the districts. The plant will be run on City Co Ltd and BJ Power Company country to generate 258 megawatts a built-own-operate basis. The Ltd of South Korea and Solar City of electricity from solar energy. The government will purchase each unit Bangladesh Ltd will construct the cabinet committee on purchase on of electricity at Tk 11.20. March 01 approved a proposal to set up the four power plants. The The consortium has offered a government will purchase electricity separate commitment letter on equity at Tk 10.40 to Tk 11.20 per kilowatt- financing, while China Development hour unit. Funds for the power plants Bank has submitted a letter of will be raised from international intent on debt financing, according banks and financial institutions. to the power division. Energon Technologies FZE of the UAE and The division has selected the China Sunergy Co will construct a companies based on their financial 100MW solar power plant at Mongla plant. The government will purchase strength and capacity to raise credit. in Bagerhat. Each unit of electricity power at Tk 10.40 a unit. The The figure on the actual investment will cost Tk 11.04. The power plant total project cost is $131 million, to be made by the companies will be will have three phases: 30MW in available after implementation of the the first phase, 30MW in the second according to the project proposal. projects, which have to be completed phase and 40MW in the third phase. An 8MW solar power plant will within 18 months of signing the be set up in Panchagarh by a joint agreements. Energon Technologies will finance 75 percent of the equity while some venture of Paragon Poultry Ltd and A consortium of Zhejiang DunAn 80 percent of the total project cost Parasol Energy Ltd of Bangladesh New Energy Co, China National will come as debt. Two banks have and Symbior Solar Siam Ltd of Hong Machinery Import and Export committed loans for the project. Kong. Each unit of electricity will cost Corporation, Solar Tech Power and Netherlands Bank is interested to Tk 10.40. Bangladesh now produces Amity Solar will set up a 100MW lend up to $725 million. A 50MW 190MW of electricity from solar January-March 2017 January-March 40 Bangladesh Economy energy, according to the Sustainable The government is diversifying its generation in the country. The and Renewable Energy Development energy sources amid depletion of contribution of renewable energy Authority. This represents 44 percent natural gas reserves, which account to overall electricity production is of the renewable energy produced in for more than half of 8,000MW about 2 percent. The government the country. to 9,000MW of actual electricity plans to raise it to 10 percent by 2020. Summit signs deal to build $500m LNG terminal ummit Group has signed an initial transfer the facilities to Petrobangla 600 megawatts of electricity. This is Scontract with Petrobangla to set after operating it for 15 years. the third LNG-related agreement the up a liquefied natural gas terminal Summit will implement the project government has signed so far. on Moheshkhali Island in Cox's jointly with US-based GE as equity In December, Petrobangla signed Bazar at a cost of about $500 million. investment partner, and plans to an initial agreement with India's Summit LNG Terminal Company, a implement the LNG terminal project energy company Petronet to set up unit of Summit Group, will develop with its own funds. the floating facilities in 18 months an LNG re-gasification terminal on after signing the final contract, the Kutubdia Island and a pipeline at an company said in a statement on estimated cost of $950 million. In January 04. July, the state-run corporation and US-based Excelerate Energy signed Energy Secretary Nazimuddin the final deals to set up Bangladesh's Chowdhury, Petrobangla Chairman first LNG terminal, which will Abul Mansur Md Faizullah, Summit handle imported LNG and supply Group Chairman Muhammed it to the national grid from early Aziz Khan, Vice-Chairmen Md “We want to ensure constant supply 2018. The terminal will be set up at Latif Khan and Md Farid Khan and of primary energy for the country by Moheshkhali in the Bay of Bengal. General Electric's Infrastructure implementing this project,” said Aziz Director Peter Mackey were present Bangladesh is looking outside to ease Khan. LNG will be the easiest, most its energy shortage largely caused at the signing of the initial agreement cost-effective, environment-friendly at Petrobangla in Dhaka on January by depleting domestic reserves and and quickest solution to meet the 03. rising demand. Gas supply stands primary fuel demand as the current at about 2,700 MMCFD against the The floating terminal will supply supply of gas will start declining in demand for 3,300 MMCFD. The 500 million cubic feet of natural 2018, he said. Khan also said the government aims to set up four land- gas per day. The LNG will cost the floating terminal will help Summit based LNG terminals and one or two government $0.45 per 1,000 cubic implement a large gas-based power floating storage and re-gasification feet of natural gas. Summit will plant, having a capacity of generating units. Offshore gas exploration: S Korean firm gets block-12 angladesh on March 14 awarded neighbouring Myanmar and has The Korean company would spend Ban offshore block to Posco discovered gas reserves last year. $3-5 million for carrying out a two- Daewoo Corporation of South Korea dimensional survey, $5-7 million for for gas exploration. Senior officials The block is adjacent to block-12 a three-dimensional survey, and $50- of Posco Daewoo and Bangladesh's of Bangladesh. Bangladesh has 100 million for drilling wells, said the Petrobangla and energy ministry 26 blocks in the Bay. Of them 15 CEO. Ahn Seong-doo, ambassador signed a production sharing contract are deep-sea blocks and 11 are in of South Korea to Bangladesh, said for the deep-sea block-12 in the Bay shallow waters. “We can find gas in offshore blocks could be a driving of Bengal at the headquarters of Bangladesh as well, as the petroleum force for Bangladesh's development Petrobangla in Dhaka. structure and geological setting as it has limited natural resources. is similar in the two blocks,” said As per the agreement, the two- Young-Sang Kim, chief executive Tajul Islam, chairman of the dimensional seismic survey would officer of Posco Daewoo, at the parliamentary standing committee begin this year, and based on the signing ceremony. on energy, said the settlement of outcomes of the survey, the real maritime boundary disputes with picture of gas availability could He said if gas was found, the block neighbouring countries has offered be known by 2019, according to would meet Bangladesh's energy Bangladesh a huge area to explore Petrobangla. Posco Daewoo is demands and stimulate its economic hydrocarbon resources. Nasrul also exploring gas at a block of growth. Hamid, state minister for power January-March 2017 January-March 41 Bangladesh Economy
and energy, said the country has not Supply (Special) Act-2010, which is production and average production been able to award offshore blocks used for speeding up the process of stands at 2,700 million cubic feet per for exploration for a long time. “It is contract signing. day. However, the demand stands at good that it has happened at last.” over 3,300 million cubic feet per day, Bangladesh would get 65 to 90 percent according to Petrobangla. Bangladesh's efforts to attract of the profits from the sale of oil and international companies for deep-sea condensate pumped out of the block. As the gas reserves are depleting and blocks explorations were delayed due For natural gas it would be between there were no new gas discoveries, to low oil price in the international 60 and 85 percent, according to a the government is awarding deep-sea market for more than two years. handout given at the programme by blocks to international oil companies to boost production. In 2014, the The low price discouraged oil government awarded shallow water companies from expanding in block-11 to Australian oil and gas new territories. Nasrul said the company Santos and Singapore- government would hold more based Kris Energy, and shallow water offshore block biddings in the next block-4 and -9 to India's state-owned couple of years. The government is Oil and Natural Gas Corporation working to buy a survey vessel, he Videsh Ltd. said. Under the amended model Tawfiq-e-Elahi Chowdhury, energy production sharing contract 2012, adviser to the prime minister, said the provision for exports has been the government is working on four kept. But Posco Daewoo would have areas, including onshore, offshore to offer the gas to Petrobangla first. and liquefied natural gas, to ensure If Petrobangla refuses to buy the gas, the country's energy security. Posco the Korean company would have to Daewoo's achievement in Myanmar find local buyers. Once the first two has encouraged the company to options were exhausted, they could explore gas in Bangladesh, said look for buyers outside the country. energy secretary Nazimuddin Chowdhury. As the company has Officials of Petrobangla said found gas in the adjacent block, Bangladesh has amended its Model we might get good news from our PSC 2012 keeping it in line with block,” he said. Petrobangla. The Korean company those in Myanmar and other countries in order to woo more Petrobangla Chairman Abul Mansur could get a maximum of 70 percent international companies to explore Md Faizullah said offshore accounts of the available petroleum per year to its vast waters. This has been done for a third of the hydrocarbon recover its exploration costs. as global oil giants were not keen on resources produced in the world. “So, In February last year, Petrobangla investing in projects that would not we are focusing more on offshore had sought expression of interest offer attractive incentives against resources.” Block-12 is over 3,560 for gas exploration in block-12, the investment risk they would be sqkm with depths between 1,000 and -16 and -21 and received proposals taking. 2,000 metres. from Singapore-based KrisEnergy Bangladesh had awarded deep-sea The initial exploration period is five (Asia), Posco Daewoo, and Norway's years and the subsequent exploration Statoil. But when the final offer was block-10 and -11 to US oil giant period is three years, according to a sought from the companies, only ConocoPhillips in 2011 under the Petrobangla press release. Daewoo came up with a proposal for model PSC 2008. But the company block-12. wound up its operations in late 2014 In the initial exploration period, the despite carrying out extensive survey, 2D survey would be carried out in Posco Daewoo now produces 500 as the government did not grant the the first two years over an area of million cubic feet per day of gas benefits of Model PSC 2012 to the 1,800 sqkm, the 3D seismic survey in from wells in Myanmar and in company, sources said. the third year over an area of 1,000 South Korea. The Korean company sqkm and one exploratory well will estimates that the Myanmar gas Joo Si-Bo, senior executive vice- be drilled in the fourth and fifth year. fields have 4.5 trillion cubic feet of president of Posco Daewoo, gas reserves, enough to cover three Khadiza Nasreen, deputy secretary This was the first time a production years of liquefied natural gas supplies of the energy ministry, and Syed sharing contract was signed under to South Korea. In recent years, Ashfaquzzaman, secretary of the Prompt Power and Energy Bangladesh has raised its natural gas Petrobangla, signed the deal. January-March 2017 January-March 42 Bangladesh Economy
Agriculture vital to poverty reduction: Brac-DFID study griculture plays a three times Citing the trend of diversification earn higher return through access Amore powerful role than non- of consumption, he said calorie to international markets,” he said. agriculture when it comes to poverty intake from potato, vegetables and To exploit the export potential, reduction, according to a joint study animal products increased gradually Bangladesh will need to enhance its of the Brac and the UK's Department between 1990 and 2010 and it will supply side capacity, improve value for International Development. The continue to rise between 2030 and chains and pursue a broad-based study, which was unveiled on January 2050. diversified agricultural production Food supply projections by 2030 and export strategy. Surplus (+), Decit (-); In millions of tonnes The marketing of paddy has BRAC-DFID study increased overtime despite farm size becoming smaller. Producers ish 1.8
t marketed 50 percent of rice in 2014, 1.2 ter F g 0.4 up from 26 percent in 1988. esh egetables ulses otato 0.1 Meat Fr Whea P P V Eg Wa
e The contribution of small farmers in ce ilk -0.7 Ri -0.7 ruits -0.8 M rice production has also increased -0.1 F -1 Maiz
-0.5 during the period, he said, adding that 30 percent of the marketed paddy comes from three-fourths of rural households who own up to one -2.6 acre of land. 31, found that a 1 percent increase in Bangladesh's agriculture, particularly agricultural income would reduce rice production, grew over the past In a paper 'Diagnostic Study on poverty by 0.39 percent. In contrast, decades for supportive policies for Bangladesh Agriculture', Andrew a 1 percent rise in non-agriculture fertiliser and irrigation as well as Jenkins, coordinator of Impact income will alleviate poverty by 0.11 liberalisation, said SM Fakhrul Islam, Assessment Unit at Brac, said percent. a consultant, in another paper. But Bangladesh could earn more than agriculture today faces challenges -- $1.8 billion in a period of about “Agriculture demands high attention scarcity of surface water for irrigation 18 years from exports of fresh and in future as far as poverty reduction and a decline in groundwater level, is concerned,” said Abdul Bayes, processed foods. arsenic pollution, yield gap and slow director of Brac Research and farm mechanisation -- for higher Subsequently, facilities for marketing, Evaluation Division. Bayes presented growth. storage and information especially one of the four papers of the study titled 'Strategic Agricultural Sector for perishable products should be Augmentation of surface water for and Food Security Diagnostic for extended he said. Citing the value Bangladesh' at a seminar held on irrigation through development of chain analysis, he said producers January 31 at the Brac Centre. water reservoir, reduction of use of suffer from low productivity and low ground water and adoption of water- quality of inputs. Subsequently, the government saving technology is necessary. policy and support to agricultural He also stressed the need for Mohammad Yunus, senior research productivity growth is essential for acceleration of farm mechanisation fellow of Bangladesh Institute of an effective poverty reduction and and improvement of market linkages Development Studies, stressed the food security strategy. The study also and development of the value chain need for ensuring fair prices of farm projected that Bangladesh might to boost agriculture productivity and produce so that growers stay with produce 38.7 million tonnes of rice growth. farming. by 2030 against the demand for 37.6 million tonnes, indicating a surplus In a separate paper styled “Arable land is shrinking. It is a of the staple. 'Competiveness of Bangladesh reality. Based on that we also need Production of wheat, maize and Agriculture, Commercialisation and to know that farmers will till land non-cereal crops, especially potato, Value Chain', he said Bangladesh as long as it is profitable,” he said, pulses, vegetables, fruits, eggs, meat, has comparative advantage in suggesting letting the rice market milk and fresh water fish will also rice production. “It could export function properly through reduced rise but there would still be a deficit. surplus rice and the farmer could government intervention. January-March 2017 January-March 43 Bangladesh Economy
Powering Bangladesh : HSBC he government of Bangladesh in the power sector of the country projects which will generate about Thas set a target to bring the whole under the ECA arrangement in the 10,700MW electricity, the country country under electricity coverage last five years, establishing ECA as an will require a total investment of by 2021. To achieve this target, the alternative financing mode. Under $15.5 billion, out of which the public country requires multibillion dollar the arrangement, power plants get sector is investing $8.2 billion and investments in the power sector. a grace period in the first two to the private sector investment will As a result, the government is three years while the unit is under be $7.3 billion. The government also increasingly diversifying the sources construction. The loans are repaid in has a plan to generate 60,000MW of of investment. instalments in the next 10 years. electricity by 2041 - a move that will require further investment worth Investment requirements in generation & transmission $20 billion. Tatal $53 billion Source: SREDA Transmission $7.53b The investment opportunities are not restricted to generation of power: the Renewable Energy $4.5b country will require another $20 Hydro & RE $0.5b billion of investment in transmission Diesel $0.56b and distribution, said Tawfiq-e-Elahi Furnace Oil $5.89b Chowdhury, the prime minister's Natural Gas $7.63b adviser on power, energy and mineral Imported Coal $12.47b resources, last year. The government, Domestic Coal $13.92b which has trebled the installed power generation capacity as well as “We are attracting innovative funds. ECAs are government departments the actual generation in the last six One of the big innovative ways or government-sponsored years, has also enabled and created is Export Credit Agency (ECA) institutions with sovereign status in the environment for international financing,” Nasrul Hamid, state developed countries, established to financiers and arrangements to minister for power, energy and support the export of capital goods become part of the effort. mineral resources, told reporters and services from its country to the In 2013, Bangladesh Institute of at the Dhaka Reporters Unity developing nations. Some ECAs have Development Studies carried out on January 21. Under the ECA direct lending programmes which a study to find out the average cost arrangement, the agencies involved can increase the competitiveness of of unserved energy, which was in the project implementation will the funding to the project. It follows calculated using the share of energy mobilise finances, said the minister. a common set of guidelines and consumed by different sectors. It characteristics known as the “OECD showed a weighted average of Tk Small power projects are attracting Consensus”. private sector investment while the 26.73 per kWh. The average bulk government is seeking innovative ECA funding is not only a matter of tariff on electricity in the country financing through joint venture and credit risk mitigation, it also enables at present is less than Tk 5 per the ECA backed financing for large projects to access a much larger pool kWh which indicates that the cost power projects. of liquidity. What is popularly known as suppliers' credit in Bangladesh is Key Points The Hongkong and Shanghai basically a form of export credit in $1.14b of ECA-backed nancing arranged Banking Corporation (HSBC) the international financial market. by HSBC for 5 power plants had pioneered the ECA financing Country’s rst ECA-baked deal in power in the country's power sector in A total of $6.9 billion ($3.1 billion sector for $420m arranged by HSBC
2012 arranging $420 million credit in the public sector and $3.8 billion Country’s rst power import of 250MW facility for Ashuganj Power Station in the private sector) of investment facilitated by HSBC
Company Ltd. Since then, HSBC has been made for setting up power Country’s rst commercial nancing in power has arranged about $1.14 billion of plants in the country for generating transmission sector arranged by HSBC financing to implement five major 7,200 megawatts (MW), according power projects in the country. Other to Bangladesh Power Development of unserved energy was more than international banks followed the suit. Board (BPDB). To implement five times the country's average About $4.5 billion has been invested the proposed ongoing power electricity tariff. January-March 2017 January-March 44 Bangladesh Economy
According to the World Economic fiscal year. Being the leading trade HSBC has one of the largest global Forum's Global Competitiveness finance bank in the globe, HSBC has export and specialised finance teams Report 2014-2015, inadequate been facilitating international trade and has arranged ECA supported and unreliable energy and power in Bangladesh. To note, HSBC has facilities across diverse business supply appears to be the most worked as the trade bank for the first sectors worldwide, with almost all binding constraint on the country's cross-border electricity trade of the the ECAs globally. competitiveness. The cost of power country. outages has been estimated to Today, HSBC is in a leading position equal 0.5 percent of gross domestic In 2013, the prime minister of in arranging ECA financing around product. Bangladesh inaugurated the first the world, raising $5.23 trillion in electricity import of 250MW from ECA-backed financing with more Bangladesh has one of the lowest India. HSBC has also arranged low than fifty deals in 2015. per capita power consumptions in cost foreign financing for the state- the region which stands at roughly owned electricity transmission HSBC Bangladesh believes that the 350kWh compared to 1,075 kWh in authority to implement a investment gives a very positive India, 527 kWh in Sri Lanka, and 495 61-kilometer inter-district electricity message to international investors kWh in Pakistan. Bangladesh needs transmission line and substation about Bangladesh, which is very more credible power supply to bring project. The bank sees infrastructure important. Experts, however, the remaining one-third population as the backbone of development said, when projects such as public under its electricity coverage. for a country. HSBC's expertise infrastructure are funded with Electricity demand in Bangladesh is and international network give the external finance – concessional or growing due to underlying economic bank the capability to help support non-concessional, such as export growth which averaged more than the Bangladesh government's credits, suppliers' credits and buyer 6 percent over the last decade and infrastructure development plans, credits, it is absolutely essential to climbed above 7 percent in the last Tawfiq-e-Elahi Chowdhury added. focus on cost recovery-related issues. Exports robust despite dismal global trade xports registered 7.11 percent the third largest export destination Some Asian markets such as Japan, Egrowth in 2016 to $34.93 billion for Bangladesh after the US and China and India are showing good on the back of higher shipments of Germany. Bangladesh typically ships promise and exports to Japan have garment items. The amount would more than have been more if the country's $3 billion Export trend in 2016 in billions of dollars major export destinations had not worth of 3.6 3.3 gone through an uncertain political garment 3.18 3.02 3.1 2.85 2.83 2.24 2.71 2.89 time in 2016, according to exporters. products to 2.68 2.53 Garment shipments, which typically the UK in a Jan FebMar AprMay Jun Jul AugSep OctNov Dec account for 80 percent of the export year. earnings, brought home $28.61 already crossed the $1 billion mark With the uncertainty surrounding billion last year, up 7.89 percent year- in 2016. However, 2016 ended on a Brexit, the election of Donald J Trump on-year, according to data from the somewhat dismal note, as exports Export Promotion Bureau. as the 45th president of the US, and the scheduled polls in Germany slid 3.11 percent in the month of In 2016, the unit price of garment and France, the outlook does not December from a year earlier. In items decreased by 2 percent year- look too promising. Although December, exports raked in $3.11 on-year and the depreciation of according to experts it is not a major billion, which also missed the the pound as a result of the UK's cause of concern as exports to new month's target of $3.35 billion. shock decision to withdraw from destinations have been on the rise as Garments raked in $2.58 billion last the European Union on June 23, a result of relaxation of the Rules of month, down 3.73 percent year-on- 2016 affected the receipts. The UK is Origin. year.
Bangladesh overtakes China as top denim supplier to EU
angladesh has overtaken China -- a development that would give exports by 2021.In the January-June Bto become the largest denim confidence to the country's garment period of 2016, Bangladesh exported supplier to the European Union sector as it looks to hit $50 billion in €567.97 million worth of denim January-March 2017 January-March 45 Bangladesh Economy
products to the 28-nation bloc -- that the local denim fabrics makers Bangladeshi entrepreneurs supply enough to secure a 21.18 percent invested to set up state-of-the-art denim products to major global market share, the highest. facilities in their plants. Currently, retailers including Levi's, Diesel, Bangladesh has 30 G-Star RAW, H&M, Uniqlo, Tesco, denim mills for Wrangler, s.Oliver, Hugo Boss, Walmart, and Gap. The denim sub- which investment sector could play a significant role to the tune of $1 in achieving the $50 billion export billion was made. target by the end of 2021. Annually The collective2.1 billion pieces of denim are sold production globally, according to Bangladesh capacity of the mills Denim Expo, the organiser of the is 435 million yards exposition. a year. In 2014, the size of the global The country has also become the Almost 70 percent of the population denim market stood at $56.20 third largest denim supplier -- in the US wear denim products billion, Mostafiz said. By 2020, the after China and Mexico -- to the global denim market will reach regularly, according to industry US. It exported $186.30 million $64.1 billion, while Bangladesh's insiders. An average consumer owns worth of denim products to the US, denim export is forecasted to reach registering a 12.03 percent market seven denim products at any given $7 billion by the end of 2021. It is share, eclipsed only by China (26.04 time, they said. Over in the UK, estimated that the global denim percent) and Mexico (25.40 percent). one of the largest clothing markets market will grow by about 8 percent The headway has been possible in Europe, each consumer owns an a year until 2020, Mostafiz said citing because of the millions of dollars average of 17 denim garments. data from the Cotton Inc USA. China Harbour to build economic zone in Anwara hina Harbour and Engineering plant and power distribution lines in Chittagong. The committee gave CCo. Ltd will develop an economic will be set up with financing from a go-ahead to the agreement to be and industrial zone dedicated for China. signed with PowerPac-East West Chinese investors at Anwara in GasMin consortium for developing Chittagong. The cabinet committee Offices and commercial buildings the Mirsharai economic zone under on economic affairs awarded the job will be constructed as well. The public private partnership. to the Chinese company on February 08. The government has sought $281 million in soft loans from China for building the infrastructure of the economic zone and providing various services. A memorandum of understanding was signed for the soft loan during the visit of the Chinese president to Bangladesh last year.
According to an official of Bangladesh Economic Zones Authority 774 acres cabinet committee on January 03 It also approved signing of an have already been acquired for the approved another proposal for the agreement with POSCO Daewoo proposed zone. Connecting roads appointment of a developer for Corporation for gas exploration and will be widened and water treatment another economic zone at Mirsharai extraction at deep-sea block DS-12. Global yarn makers see Bangladesh as a potential market lobal textile and yarn makers United States and Europe. Though local spinners meet over 90 percent see Bangladesh as a potential G fabrics and yarn are being locally demand for raw materials of the market despite the country's apparel made, Bangladesh still needs to export is facing challenges in some import a good quantity to meet the knitwear sector and over 40 percent of its strong markets, including the growing demand. In Bangladesh, demand of the woven sector. January-March 2017 January-March 46 Bangladesh Economy
“Bangladesh is a good market for “Bangladesh is our future market target to increase the customer base us as the demand for fabrics here is as China has been losing its market to 100 by the end of 2020. rising from the garment makers,” share in the global said Lavender Zhang, manager apparel business,” of Jiangsu Wulong Knitting Co, a Zhang said. She knitwear fabrics maker. Zhang spoke said the demand at the 11th Dhaka International for specialised Yarn & Fabric Show 2017—Winter textile like linen Edition and Dhaka Int'l Denim Show is very high in Bangladesh, which 2017. is quite capable of Mirza Azam, state minister for supplying fabrics in textiles and jute, inaugurated the bulk to the garment fair jointly organised by CEMS makers. “We have a plan to open a Global and CCPIT (CCPIT-TEX) “Achieving the target of 100 sales office in Dhaka in future as the at International Convention City customers is not difficult in business is growing,” said Zhang, Bashundhara in the capital. Around Bangladesh, as there is huge demand who came in Bangladesh for the first 180 companies from six countries time to take part in the fair. for linen products,” Dewan said. showed their products at the three- His company produces nearly 60 day event. “The fabrics and yarn market in million yards of fabrics a year. Ma Bangladesh is growing riding on the Mingqiang, ambassador of China Bangladesh's apparel exports to the higher demand from the customers,” to Bangladesh; Shubhashish Bose, US, its single largest destination, said Arifur Rahman Dewan, secretary in charge of the ministry declined 1.96 percent year-on-year manager for sales and marketing at of textiles and jute, and Faruque to $5.49 billion in 2016, due to the Huaren Linen Group (Bangladesh), Hassan, senior vice-president of volatile US economy and the recent a major supplier of linen fabrics Bangladesh Garment Manufacturers presidential election. Exports to from China worldwide. Dewan said and Exporters Association, also the UK and some other European currently his company supplies linen attended the opening ceremony of markets also fell last year. fabrics to 15 customers and it has a the fair. Aman Group invests Tk 2,700cr to set up 3 plants in economic zone man Group has put in about Tk Aman Group got the final nod for the Aman Group completed the A2,700 crore for setting up three economic zone from the Bangladesh environmental impact assessment factories at its economic zone in Economic Zones Authority on March and feasibility study and prepared Narayanganj. Cement manufactured 16, making it the third company from a master plan on the economic at the unit will hit the market the private sector to do so. Meghna zone as per the conditions of a within the next couple of days, prequalification licence it received in Group was the first private sector while commercial production at the February last year. packaging unit will start next month, The zone is situated on 83 acres of said Rafiqul Islam, chairman and land at Sonargaon in Narayanganj, managing director of Aman Group. which is in close proximity to the The group has set up a shipbuilding Dhaka-Chittagong highway and the plant at the zone, where the Meghna Ghat river port. The zone, manufacturing of 12 vessels is going however, can be extended up to 150 on in full swing and the group has acres. plan to set up an LPG plant, food and player to receive the final licence Beza Executive Chairman Paban beverage unit and power plant in the from the Beza. Abdul Monem Ltd Chowdhury said they are planning economic zone. An economic zone is is the other player to get the final to offer 4,000 acres of land for a designated area in a country with development under private or special economic regulations that licence. Other local and foreign entrepreneurs from various sectors public-private initiatives in the next differ from the rest of the country. one month. An entrepreneur can enjoy various including construction materials, benefits, including tax incentives, light engineering, petrochemical, Beza has so far offered about 1,300 from the authorities by setting up an garments and textiles, shipbuilding acres of land for development in industrial unit in an economic zone. and IT can invest in the zone. its four economic zones. “We will January-March 2017 January-March 47 Bangladesh Economy
provide all the necessary support to 10 other local private companies to to create jobs for one crore people the private sector for economic zone set up 13 economic zones. It is also in 100 economic zones by 2030 and development,” he said. Beza has so far setting up four economic zones in the produce goods and services worth awarded pre-qualification licences to public sector. The authority is aiming $40 billion. India plans to invest $3b in Bangladesh nvestments from India worth over Indian companies such as Marico, good participation from both the I$3 billion have been registered CEAT, Tata Motors, Godrej, countries. Around 60 companies with the Bangladesh Investment Sun Pharma, Asian Paints have from India and Bangladesh, from Development Authority (BIDA). made substantial investments in diverse sectors like automobiles, More investments in the power, Bangladesh, the high commissioner pharmaceuticals and chemicals, are liquefied natural gas and port sectors said. India has also been offered participating in the fair. This also in Bangladesh are in the pipeline as exclusive sites by Bangladesh to includes business delegations from Confederation of Indian Industry and Bengal Chamber of Commerce and Industry, Kolkata. Tofail Ahmed urged the Indian government to remove the tariff, para-tariff and non-tariff barriers for a higher export of goods from Bangladesh to India.
The balance of trade between the two countries is heavily tilted towards India because Bangladesh imports a there is great business potential here, establish special economic zones, he lot of raw materials and food items said the top Indian diplomat at the said. These zones may be at Mongla from there. India has given duty- inauguration of the three-day Indo- or Chittagong, he added. “With free access to all Bangladeshi goods Bangla Trade Fair 2017 at Sonragaon the India-Bangladesh trade and except 25 alcoholic and beverage Hotel in Dhaka on February 16. commercial relationship growing at items. a substantial pace, Bangladesh is now Commerce Minister Tofail Ahmed India's biggest trade partner in South Abdul Matlub Ahmad, president of opened the fourth version of the Asia.” Federation of Bangladesh Chambers fair as chief guest. The India- of Commerce and Industry, Taskeen Bangladesh Chamber of Commerce In the last 15 years, Bangladesh's Ahmed, president of IBCCI, Abhijeet and Industry (IBCCI) organised exports to India have grown tenfold Chakravorty, country head at State the fair to display products and and India's exports to Bangladesh Bank of India, Ambarish Dasgupta, services from both countries to the six times. Bilateral trade in 2015- customers. Companies from both 16 stood at $6.14 billion. In leader of the Bengal Chamber of India and Bangladesh explored new November last year, IBCCI had Commerce and Industry Delegation, opportunities for investments and to organised a fruitful discussion and Pankaj Tandon, leader of the set up joint ventures in each other's on enhancing India-Bangladesh Confederation of Indian Industry countries. Waterways Connectivity, which saw Delegation, also spoke. Norwegian fund's investment in Dhaka bourse rises six-fold orway's sovereign wealth The wealth fund first made fund, several global investment Nfund invested $112 million in investment in Bangladesh in 2015 banks such as Morgan Stanley, Bangladesh's stockmarket in 2016 with a modest amount of $19 JPMorgan and Goldman Sachs as -- a six-fold rise compared to the million, according to the Norwegian well as asset management firms such previous year. The Government embassy in Dhaka. The huge growth as BlackRock have presence in the Pension Fund Global, the world's in investment in Bangladesh by the capital market of Bangladesh. biggest wealth fund, made the Fund is very positive, it said. investment in 15 companies that are Net foreign investment was Tk 1,340 listed on the Dhaka Stock Exchange, The fund gained $53 billion last crore in 2016, up from Tk 185 crore the premier bourse. year. Apart from the Norwegian in the previous year. January-March 2017 January-March 48 Regional News Asia must spend $26tn on infrastructure by 2030: ADB sian nations must spend $26 each year -- from 2016 to 2030 -- is embark on a protectionist agenda Atrillion by 2030 on infrastructure twice the $881 billion invested at that would batter world trade. to battle poverty, boost economic the moment, the Bank said. ADB growth and fight climate change, the suggested the bulk of the cash, And while several countries around Asian Development Bank warned on $14.7 trillion, should go on power, the region have promised hundreds February 28. In its "Meeting Asia's while $8.4 trillion should be spent of billions for new building infrastructure needs" report, the on transport and $2.3 trillion on programmes -- including India, lender said governments in some of telecoms. It indicated $800 billion for Indonesia and the Philippines -- the poorest countries in the world water and sanitation. problems such as bureaucracy and should invest in everything from corruption act as a drag. transport, telecommunications, Analysts also say governments power and water and sanitation. should look to private finance for It added that despite dramatic help. "Mobilising private capital flows infrastructure growth in recent to fund the financing gap that cannot decades, more than 400 million be met by public financing is still a people have no access to electricity, major challenge," said Rajiv Biswas, 300 million lack safe drinking water Asia-Pacific chief economist at IHS and around 1.5 billion are without Global Insight in Singapore. The basic sanitation. "The demand for lender, set up in 1966, is owned by 67 infrastructure across Asia and the member-countries, 48 of which are Pacific far outstrips current supply," Its report also said that of the total in Asia. It approved a record $16.3 ADB President Takehiko Nakao said annual amount, $200 billion should billion in loans and grants to the in a statement released alongside the be invested in mitigating climate region in 2015. report. change,renewable energy and public transport. But it said a substantial In a separate report, the Organisation "Asia needs new and upgraded infrastructure gap still remains in the for Economic Co-operation and infrastructure that will set the 45 countries included in the report. Development said India's rapid standard for quality, encourage However, the warning comes as many economic growth has lifted 140 economic growth, and respond to economies in the region continue million people out of poverty in the pressing global challenge that to struggle with a global slowdown the past decade but large parts of is climate change," Nakao said. while there are growing concerns the population still lack access to The more than $1.7 trillion needed US President Donald Trump could electricity and toilets. Eight richest as wealthy as half of humanity : Oxfam ust eight individuals, all men, own for action to curtail rewards for those humanity, rather than 62 estimated Jas much wealth as the poorest half at the top. As decision makers and at the time. In 2010, by comparison, of the world's population, Oxfam many of the super-rich gather for it took the combined assets of the 43 said on January 16 in a report calling this week's World Economic Forum richest people to equal the wealth of (WEF) annual meeting in Davos, the poorest 50 percent, according to the charity's report suggests the the latest calculations. wealth gap is wider than ever before, Within the labour share, wage with new data for China and India disparities have been growing. Wages indicating that the poorest half of in low-skill sectors in particular have the world owns less than previously been falling behind productivity in estimated. emerging economies and stagnating in many rich countries, while wages Oxfam, which described the gap as at the top continue to grow. "obscene", said if the new data had been available before, it would have A CEO of a company, which is part of shown that in 2016 nine people the Financial Times Stock Exchange owned the same as the 3.6 billion 100 Index, earns as much in a year who make up the poorest half of as 10,000 people working in garment January-March 2017 January-March 49 Regional News
factories in Bangladesh, according to in China, Indonesia, Laos, India, pays out disproportionately to the the report. The CEO of India's top Bangladesh and Sri Lanka have rich. information firm earns 416 times the seen their share of income increase salary of a typical employee. by more than 15 percent, while the While many workers struggle with poorest 10 percent have seen their stagnating incomes, the wealth of The squeeze on employment and share of income fall by more than 15 the super-rich has increased by an wages for the lowest-paid workers percent. average of 11 percent a year since results in people working for poverty 2009. Bill Gates, the world's richest wages in precarious employment. Due to a combination of man who is a regular at Davos, has Wage workers in Nepal earned just discrimination and working in low- seen his fortune rise by 50 percent or $73 per month in 2008, followed pay sectors, women's wages across $25 billion since announcing plans by $119 in Pakistan (2013) and Asia are between 70 percent and to leave Microsoft in 2006, despite 90 percent of men's. Many women $121 in Cambodia (2012). Due to his efforts to give much of it away. the low wage levels, the latter two struggle to survive as the national countries are also among those with minimum wage in many Asian While Gates exemplifies how the highest incidence of working countries -- where it is paid -- is outsized wealth can be recycled to poverty worldwide. on average a quarter of the amount help the poor, Oxfam believes such required for a decent standard of "big philanthropy" does not address In many countries, even the legal living. the fundamental problem. Oxfam minimum wage fails to meet the bases its calculations on data from wage required for a decent standard Inequality has moved up the agenda Swiss bank Credit Suisse and Forbes. of living. The minimum wage for in recent years, with the head of the The eight individuals named in the banana workers in the Dominican International Monetary Fund and report are Gates, Inditex founder Republic is just 40 percent of a living the Pope among those warning of its Amancio Ortega, veteran investor wage; in Bangladesh it is nearer 20 corrosive effects, while resentment percent of that required to live a of elites has helped fuel an upsurge Warren Buffett, Mexico's Carlos Slim, decent life. in populist politics. Oxfam called Amazon boss Jeff Bezos, Facebook's in its report for a crackdown on tax Mark Zuckerberg, Oracle's Larry Over the last two decades the dodging and a shift away from "super- Ellison and former New York City richest 10 percent of the population charged" shareholder capitalism that mayor Michael Bloomberg. Women in business to thrive on access to finance: study trong supporting conditions such of the level of women advancement women business ownership, a high Sas access to financial services and outcomes, knowledge assets and quality of governance and ease of ease of doing business pave the way financial access and supporting doing business. On the other hand, for businesses owned by women entrepreneurial factors. lower-income economies such as to progress, according to a study Uganda, Bangladesh and Vietnam “The prevalence of ambitious, by MasterCard. These enabling resourceful women should be conditions are pivotal in overcoming regarded as a prime business the two main obstacles -- cultural opportunity. As society addresses biases and fewer opportunities -- that existing cultural bias, we will do our discourage women the most from part to help create those conditions becoming entrepreneurs, according that will strengthen the foundation to the study “MasterCard Index of for personal and economic growth,” Women Entrepreneurs”. said Martina Hund-Mejean, chief have some of the highest percentages financial officer of MasterCard. The index uses 12 indicators and of women entrepreneurs, driven 25 sub-indicators to look at how Developed markets top the index. mostly by necessity as opposed 54 economies in Asia, Africa, The top-ranked countries have the to being inspired by business America and Europe differ in terms strongest conditions that support opportunities. India becomes front in global e-commerce proxy war lobal tech giants are heading for intention of the Chinese behemoth one of the tech big boys will emerge Ga proxy war in India. Alibaba is to take on Amazon, which is victorious. leading a $200 million investment aggressively ramping up, investing into Paytm's marketplace, creating a $5 billion into its local operation as The $255 billion Chinese group and new Indian unicorn. It confirms the other homegrown rivals flail. Only Paytm have already invested together January-March 2017 January-March 50 Regional News to build a dominant mobile-wallet lead; investors now reckon it is contrast to China where foreign payment business, now worth around worth as little as one third of its $15 companies have struggled. But there $5 billion. Their smaller e-commerce billion peak in 2015. Meanwhile, isn't room for everyone to financially unit is now being separated out to the founders of Snapdeal are cutting succeed. Alibaba's new commitment meet Indian regulations. After the costs and headcount; an email to to Paytm E-commerce, following latest fundraising, Jack Ma's Alibaba employees admits and its own payments affiliate Ant errors in executing Financial will effectively control the its strategy. Talk of e-commerce company and continue a possible merger to own a large stake in the payments between Snapdeal arm, which must be majority Indian- and Paytm keeps owned. surfacing in local media. That makes Local rivals Flipkart and Snapdeal, sense, given backed by New York investment firm SoftBank already Tiger Global and Japan's SoftBank, owns a near 30 respectively, helped to establish the percent stake in domestic e-commerce industry. But Alibaba and could lose a fortune its success in building out a local their future roles look uncertain fighting head-to-head to build mobile wallet business, puts it in a as these global tech giants, with market share. strong position. Fold in Snapdeal, deeper pockets, get stuck into the and Amazon's Jeff Bezos would face market. Privately owned Flipkart is For now, Indian e-commerce has a significant obstacle in the road to fighting hard to maintain a narrow become a free-for-all, and a stark global domination. Chinese bank opens 6 Grameen-style branches Chinese bank in collaboration Fuzhan, secretary of the Communist half-day conference on the progress Awith Grameen China has Party of China in the province, at the of Grameen microcredit in China. It opened six branches in the party office in Zhengzhou. Fuzhan was attended by all the microcredit country's Henan province which said he was delighted to see the leaders in the country. will follow the microcredit model of collaboration between Zhongyuan Grameen Bank. Nobel Laureate Prof Bank and Grameen China. The session was addressed by Muhammad Yunus attended the Yunus, Prof H Latifee, managing launch as the chief guest on February He thanked Yunus for his work on director of Grameen Trust, which 26. Zhongyuan Bank and Grameen behalf of the poor around the world, has been implementing microcredit China have teamed up to provide and especially for his efforts aimed in China since 1994, and the senior financial services to the rural poor of at supporting the poverty alleviation representatives of the Chinese the province, Yunus Centre said in a initiative in China. He said Prof Association of Microfinance such as statement on March 05. Yunus and his work and philosophy Du Xiaoshan and Bai Chengyu. are well-known and admired Zhongyuan Bank is a new bank in throughout China. Fuzhan Henan that was created in 2014. Last pledged his support for the year it posted a profit of $3 billion, programme and introduced according to the statement. The bank, Yunus to the senior members which will provide the loan capital of the party who, he said, and bear the operational expenses of would be at the economist's the new initiative, invited Prof Yunus disposal for any help to run to its headquarters at Zhengzhou in the microcredit activities. Henan to meet with the top officials of the bank and discuss about the Yunus congratulated the secretary Yunus also attended the launch of the collaboration. Grameen China will for China's commitment to poverty first Yunus Social Business Centre implement the initiative. reduction and for its success in at a leading university in Beijing. lifting 300 million poor people out The centre is collaboration between The opening ceremony was addressed of poverty in the last three decades. Renmin University and Yunus by the secretary of Henan provincial The founder of Grameen Bank said Centre, Bangladesh. The university government and the bank's chairman he would be delighted to support organised a daylong conference to in presence of about 250 dignitaries. China's goal to eradicate poverty discuss the progress and prospects Earlier, the Nobel laureate and his by 2020. On the previous day in for microcredit and social business delegation were received by Xie Beijing, Grameen China hosted a in China. January-March 2017 January-March 51 ICC HQs News ICC releases new guidelines on tax principles for multinational businesses n response to a growing lack effective dispute resolutionprinciples. Beyond transparency Iof trust between multinational processes. In order for business to and reporting, the guidelines companies and the general public behave responsibly, there needs to be cover principles for tax planning, over tax matters, ICC has released a clear rules and conditions applied by legislation, pre-clearance systems new set guidelines on tax principles both parties. and dispute resolution—all of which as business seeks to publicly commit aim to pave the way towards a itself to international standards of Rebuilding trust conducive fiscal environment. transparency and cooperation. In a global climate where trust Global expertise in institutions is fading, it is important that business promotes By providing principles guiding an understanding of its strategic the behaviour of multinational decisions to the general public. companies as well as the principles According to a 2017 Edelman study, that need to be followed by the tax 66% of the general population authorities, ICC seeks to enhance consider that a company paying its co-operation, trust and confidence “fair share of taxes” is important for between tax authorities, business building trust. taxpayers and the public concerning the operation of the global tax Responding to this increasing system. public demand for multinationals Business should comply fully with all to disclose their tax policies, the The ICC Commission on Taxation applicable tax laws and regulations, ICC document provides a series comprises more than 150 taxation the guidelines state, utilising tax of guidelines for transparency and experts from companies and business incentives that are “transparent, reporting principles, for instance associations in approximately 40 published and/or endorsed” by having companies release a statement countries from different regions of the host nation and refrain from describing measures they have the world and across all economic claiming exemptions not granted adopted to ensure their management sectors. Its mandate is to promote according to statutory, regulatory or of tax risks and improve their transparent and non-discriminatory administrative frameworks. transparency towards shareholders. treatment of foreign investment and earnings that eliminates tax Moreover, recognising that tax The ICC guidelines highlight the obstacles to cross-border trade and cooperation is a two-way street, the fact that international businesses investment. The commission analyses guidelines include principles for wishing to implement progressive developments in international tax authorities that multinationals tax principles need the cooperation fiscal policy and legislation and believe would smooth interactions, of fiscal authorities in establishing puts forward business views on such as clarity of legislation, an environment that is conducive government and intergovernmental transparency of enquiries and to the effective application of these projects affecting taxation. ICC Banking Commission launches questionnaire for 2017 Global Survey on Trade Finance he International Chamber of finance industry, allowing banks, Commission may also help banks TCommerce (ICC) Banking traders and government officials to comprehend their trade finance Commission has released the gauge global trade expectations. status against the market trends questionnaire designed to gather reported in ICC’s market intelligence data for its flagship annual trade The participation in this survey of report. Finally, participants who finance report—urging banksbanks providing trade finance will fully complete the questionnaire globally to participate before the enable the ICC Banking Commission will be provided with an additional 20 April deadline. One of the most to analyse likely developments comprehensive data-rich report comprehensive market intelligence to the ever-changing landscape. with the survey results, containing publications, the report—entitled The process of identifying the further more detailed information “Rethinking Trade & Finance”— information required in the survey obtained from a deep exploration of provides a snapshot into the trade and submitting it to the ICC Banking the survey data. January-March 2017 January-March 52 ICC HQs News
The 2017 survey will delve into trade in international trade, new trade finance industry, the ICC Banking finance and supply chain finance corridors, and structural and Commission has also created a new key trends, strategy, evolution, as geographic changes in trade patterns, editorial board and strengthened its well as operational, product and amongst other topics. focus on delivering genuine market sales-related areas. The Rethinking Trade & Finance report will also To ensure the project’s strategic intelligence. The questionnaire analyse the global architecture for orientation and alignment with closes on 20 April and the report will trade – focusing on new patterns the complexity of the trade be released in June 2017. 2017 Business for Peace Award winners named CC Secretary General John Compact (UNGC) and United automotive industry and for efforts IDanilovich joins Governing Nations Development Programme in tackling some of the world’s most Mayor of Oslo Raymond Johansen (UNDP) local offices assist in the complex challenges. in the Norwegian capital on March global nomination process by Harley Seyedin (Iran/USA) 28 to announce the four winners leveraging their respective networks of the 2017 Business for Peace in the search for outstanding business An Iranian immigrant to the US, Awards. The Awards recognise people who have been able to achieve Mr Seyedin receives the Award for outstanding business people who business success while acting in an “businessworthy” entrepreneurship. have been able to achieve business ethically responsible way. He is also recognised for promoting success while acting in an ethically 2017 Business for Peace Award societal inclusiveness and responsible way. Past Business for winners are: opportunities for the poor and Peace Award winners include Paul building a multinational electricity Polman, CEO of Unilever; Richard Durreen Shahnaz (Singapore/ and low-carbon infrastructure Branson, CEO of Virgin Group and Bangladesh) development He has spent more than Ouided Bouchamaoui, Nobel Prize Ms Shahnaz spearheaded the 20 years in China, always seeking to winner and ICC Tunisia Honorary transformation of the way financial promote a development model that Chairman. and capital markets work; moving is being socially, environmentally beyond profit maximising to and economically sustainable. Mr maximising purpose and impact. Seyedin has been President of the Having overcome obstacles and American Chamber of Commerce in challenges unknown to most South China for the past nine years. successful business people, Ms Murad Al-Katib (Canada) Shahnaz began her career at Morgan Stanley (New York) and Merrill The son of Turkish immigrants to Lynch (Hong Kong), before moving Canada, Mr Al-Katib is recognised to Grameen Bank (Bangladesh). for his leadership in sustainable agriculture and for his contribution In 2009, Ms Shahnaz founded Impact Investment Exchange (IIX), the to feeding millions of refugee families world’s first public trading platform during the on-going Syrian crisis. The 2017 Business for Peace dedicated to connecting Impact honourees will be celebrated at the Mr Al-Katib is President, CEO and Enterprises with mission-aligned Business for Peace Award Ceremony board member of AGT Food and investment. IIX Foundation (formerly on 16 May at Oslo City hall. Gro Ingredients Inc., which buys lentils known as Shujog) was established Harlem Bruntland former Prime and other pulses from producers shortly after, complementing the Minister of Norway and former and sells them around the world. work of IIX by fostering growth, Director-General of the World The company has grown into one of innovation and market readiness of Health Organization will deliver a the world’s largest lentil companies, SEs. keynote address. handling about a quarter of global Elon Musk (South Africa/USA) supplies. Honourees are selected by an independent jury of Nobel Prize Mr Musk is recognised for advancing AGT is a major partner of the United winners in Peace and in Economics. the technology frontier to address Nations World Food Programme ICC regional offices (national the systemic challenges of climate through its operations in Canada committees) as well as local change and building societal and Turkey. AGT estimates that its chambers of commerce, members of trust in sustainable energy and supplies to the programme feeds the ICC World Chambers Federation transportation. The Award also more than 4 million refugee families (WCF), United Nations Global recognises his leadership in the each year. January-March 2017 January-March 53 ICC HQs News
ICC Merchants of Peace recognised
CC Executive Board member of March, ICC Secretary General successes, welcoming global trade ISheikh Khalifa Bin Jassim Bin John Danilovich said: “With their and investment and providing a wide Mohammed Al Thani and former commitment to ICC’s founding range of services and support to Board Member of ICC UK Kenneth mission of peace and prosperity the local and international business Gardener have become the latest through world trade Sheikh community. recipients of the prestigious Khalifa and Ken Gardener are true Sheikh Khalifa was instrumental ICC Merchants of Peace Award. Merchants of Peace and thoroughly in supporting the launch the ICC Merchants_of_Peace_award deserving of this Award.” World Trade Agenda initiative in established by the world business Sheikh Khalifa Bin Jassim Bin 2012 which helped secure the first organization in 2012, the Award Mohammed Al Thani multilateral trade agreement in two recognizes members of the business decades in 2013. community who have made a significant contribution to advancing Kenneth Gardener ICC’s mission to promote peace and Alongside senior roles in a range prosperity through international of international corporations, Mr trade and investment. Gardener has worked with ICC for Award recipients are chosen by almost half a century in a number of the ICC Chairmanship following important roles. He was a member of nomination from the ICC global ICC UK’s Governing Body for over network of national committees, 40 years – for much of that time as its the World Chambers Federation, Honorary Treasurer, finally stepping individual companies and the down from that role in 2016. ICC Secretariat. The Award is named after ICC founders, known A long-standing member of the ICC Mr Gardener was instrumental as the “merchants of peace”, who family, Sheikh Khalifa is a member of in the development of ICC’s first recognized the powerful role the ICC Executive Board, Chairman set of principles for international trade and investment could play of ICC Qatar and a member of the investment – a landmark product in fostering peace and prosperity ICC World Chambers Federation which has shaped government policy among nations. General Council. Sheikh Khalifa and corporate behaviour in the years Awarding the ICC Merchants of is also the Chairman of the Qatar since. Mr Gardener also served as Peace medal to the two recipients on Chamber of Commerce and Industry. a member of ICC’s World Council the side-lines of ICC governing body Under his leadership, the Qatar and the organization’s Finance meetings in London on 3rd week Chamber has achieved numerous Committee. Kazakhstan to join ATA Carnet System he ATA Carnet System is set to of organisations already affiliated We are very much looking forward Texpand to 77 countries on 1 April with the ATA guarantee chain. to Carnet holders, from both 2017, when Kazakhstan officially Kazakhstan’s entry into the ATA Kazakhstan as well as the existing joins the international system. chain will significantly facilitate ATA world, successfully conducting The Chamber of International trade relations between Kazakhstan their business missions thanks to the Commerce of Kazakhstan will businesses and their foreign partners. smooth processing of ATA carnet become the 76th guaranteeing organisation member of the ICC Ruedi Bolliger Chair of the World Chambers Federation (WCF) ICC WCF World ATA Carnet ATA international guarantee chain. Council (WATAC) said: “The implementation of the ATA Situated in Central Asia and Eastern system shows the commitment of Europe, the Republic of Kazakhstan Kazakhstan to promoting economic ranks as the ninth largest country growth and trade facilitation. in the world and is the world´s Throughout the ATA world, there largest landlocked country. It has is a sense of achievement in having long been identified as a priority completed this first step in opening target countries by the network new opportunities for business. January-March 2017 January-March 54 ICC HQs News formalities at all national borders.” businesses importing, temporarily, that have been appointed by their “We are very much looking forward professional equipment for projects national customs authorities to issue to Carnet holders, from both and events, providing samples to and guarantee Carnets. Kazakhstan as well as the existing customers or exhibiting at trade ATA world, successfully conducting fairs. They improve opportunities Prior to Kazakhstan, Brazil joined the their business missions thanks to the for businesses by reducing customs ATA Carnet system on 28 June 2016 smooth processing of ATA carnet procedures and minimising heavy after Indonesia who joined on 15 May formalities at all national borders.” deposits. 2015. More than 180,000 Carnets The ATA Carnet is an international WATAC is the ICC working body are issued every year worldwide, customs document that allows for responsible for administering the for goods with a total value of over the duty-free and tax-free temporary international guarantee chain for US$21 billion. Carnets cover all import of goods for up to one year. ATA Carnets. The chain includes goods traded internationally, with Carnets are particularly useful for chambers and business organisations the exception of perishable items. ICC hails entry into force of WTO Trade Facilitation Agreement CC has welcomed the entry two decades-aims to make trade private partnership supported by Iinto force of the WTO Trade easier and simpler by cutting red- a number of donor governments Facilitation Agreement (TFA)—a tape at borders. ICC has estimated and international businesses. The landmark global trade agreement that the deal could support the which could provide a boost to global creation of some 20 million jobs trade flows of over US$1trillion. worldwide- the vast majority in developing countries. More than two-thirds of WTO member states have now ratified the ICC has been a leading proponent agreement, with Chad, Jordan, Oman of the TFA, playing a key role in the and Rwanda the latest countries to 2013 negotiations that led to the do so as part of an almost two-year agreement and working closely with process. Reaching this threshold the WTO and other international means the TFA now becomes an organizations to coordinate and official part of the multilateral support the deal’s implementation. trading system which covers more Alliance is currently rolling out trade than 96% of global GDP. ICC is actively supporting the implementation of the TFA facilitation projects in Colombia, The TFA-the first multilateral trade through the Global Alliance for Ghana, Kenya and Viet Nam based agreement to enter into force in over Trade Facilitation-a major public- on TFA standards. New ICC Court Secretary General & Deputy Secretary General CC has appointed Alexander G. was an associate at Stelios Koussoulis arbitration and comparative law. IFessas as Secretary General of & Partners, an Athens-based law firm Aside his native Greek, Alexander the ICC Court and Director of ICC until 2007, and a sole practitioner speaks English and French. Dispute Resolution Services and Ana thereafter. Serra e Moura as Deputy Secretary The appointment of Mr. Fessas General of the ICC Court. He acted both as counsel and was made upon unanimous administrative secretary in recommendation by a selection Alexander G. Fessas, a Cypriot international and domestic committee chaired by ICC Court national born in Athens, currently commercial arbitration cases Governing Body Chairman Karl serves as Managing Counsel and in construction, energy and Hennessee and composed of ICC is the third most senior member telecommunications disputes. Secretary General John Danilovich, of the ICC Court’s Secretariat. He He had also undertaken other ICC Court President Alexis Mourre, started his career with ICC working roles including as editor-in-chief and ICC Court Vice-Presidents as Deputy Counsel in the Eastern of the Revue hellénique de droit Anne-Veronique Schlaepfer and European team in 2011. He was international . Alexander is admitted Eduardo Zuleta. later promoted to Counsel, first in to the Athens Bar. He obtained his charge of the North American team undergraduate and postgraduate Ana Serra e Moura, in turn, currently and later in charge of the Eastern degrees from the Faculty of Law of serves as Counsel in charge of Latin Mediterranean and Middle East the University of Athens, having America and the Iberian Peninsula. team. Before joining ICC, Alexander specialized in conflict of laws, She joined ICC as Deputy Counsel of January-March 2017 January-March 55 ICC HQs News
the same team in 2011. Ana is also Católica Portuguesa in Lisbon and in both commercial and investment the project manager of the opening of furthered her studies at the Instituto arbitration, as well as commercial the ICC Court Secretariat’s office in de Empresa Law School in Madrid. and corporate law. Sao Paulo, which will be announced Before joining ICC, she worked with shortly. She is admitted to the Juan Fernández-Armesto, founding The appointment of new leadership Portuguese Bar. She obtained her partner of Armesto & Asociados comes as the ICC Court prepares for law degree from the Universidade in Madrid and CCA Advogados the entry into force of the revised ICC Ontier in Lisbon. Arbitration Rules which include new In addition to Expedited Procedure Provisions. The Portuguese, her incoming and outgoing leadership native language, she speaks will work hand in hand during the English, Spanish next three months to ensure a smooth and French. Ms transition and implementation of Serra e Moura has the new Rules and other on-going ample experience projects. ICC Academy debuts first export & import programme he International Chamber of said: “In a complex, rapidly-changing The EIC is the third training TCommerce’s (ICC) globally environment, it pays to be up-to- programme introduced by the ICC recognised e-learning platform, the date with global export standards Academy, which seeks to assist ICC Academy, has launched its first and strategies. This comprehensive companies looking to expand certification on export and import ICC Academy programme provides internationally. operations. a foundation in export/import practices and terminology.” Developed to support the needs of companies operating in complex Taking 25 hours in total, the international environments, EIC interactive e-courses include: e-courses provide learning on the International Trade and Export- full cycle of import and export Import Transactions ; International procedures. The certification offers Business Transactions and Contracts training on issues ranging from ;Export/Import Finance – Payment negotiating contracts to resolving and Security Devices ; International cross-border disputes. Logistics, Shipping, and Sourcing The ICC Academy earlier introduced and Global Business Management: As ICC is the international the Global Trade Certificate (GTC) organization that sets global terms Strategies and Structures. Each and Certified Trade Finance and rules for transactions worldwide, course incorporates video examples, Professional Programme (CTFP) the EIC is an authoritative case studies, structured lessons, , both of which are aimed at certification programme for best self-assessments and a virtual professionals in the global trading export and import practices. All coach to ensure participants are sector. Additionally, they worked courses were developed by leading well equipped to become active with IE Singapore to produce trade expert Guillermo Jimenez- actors on the international trading theInternational Trade Associate author of the best-seller, ICC stage. The EIC was launched today Programme (ITAP) adapted for Guide to Export/Import: Global at a high-level event hosted by IE polytechnic students and the Standards for International Trade Singapore. The half-day ceremony Professional Conversion Programme . The programme is built around included a roundtable discussion (PCP) for mid-career professionals five core modules that focus on on capacity building in global pursuing new career opportunities the practical aspects surrounding trade, with senior executives from in international trade. These international business. Former KPMG, Michael Page International, certification programmes have ICC Head of Division and current Singapore Management University reached over 1,150 learners from 77 university professor Mr Jimenez and Temasek Polytechnic. countries. College of Law and Business secures place as 12th ICC Mediation Competition champion
ith 147 mock sessions under Law and Business walked away from winners of the 12th International Wtheir belts, the College of the mediation table last night as the Commercial Mediation Competition January-March 2017 January-March 56 ICC HQs News of the International Chamber of final was written by Working Group first time the College of Law and Commerce (ICC). The KMPG- Chair, Alan Limbury. The spirited Business has been represented at the sponsored final was held on February dispute dealt with a well-known wine prestigious event. 08 in Paris at the Maison du Barreau. association and its less then bubbly reaction over a retailer’s questionable Second place team, V.M Salgaocar Five days ago, the biggest educational use of its wine appellation. College of Law Goa, Goa University, event of ICC kicked off with 65 was represented by Sidney Cardoso eager and excited university teams, The professional acting asand Bernard Fernandes. They also representing 33 countries. Each had the mediator during the 2017 competed without the guidance of a put months and hundreds of hours Competition Final was Peggy coach. into perfecting their problem-solving Lansbach O’More. Ms Lansbach skills in cross-border commercial O’More is also a mediator During the final award ceremony, disputes. who mediates on employment Fernando Cusado, Partner at KPMG discrimination and labour- Advisory (Forensic) in Madrid, However, it was the brilliance and management conflicts for the United Spain, the headline sponsor of the expertise of the College of Law States Government Sharing Neutrals 12th edition of the Competition, and Business (Israel) that locked in Programme. Speaking about the extended his company’s admiration the victory against V.M. Salgaocar final session between the teams from of the global capacity building College of Law Goa, Goa University Israel and India, Ms Lansbach event. KPMG has been a long-time (India). The winning team included Rachel supporter of the ICC Mediation Among the eight Competition cases Rhodes and Daniel Winer, who Week, for which the world business drafted by an international team participated in the Competition organization is thankful for their of experts, the one selected for the without a coach. This was the continued contribution. Global impacts of counterfeiting and piracy to reach US$4.2 trillion by 2022 new report released on February The report from Frontier Economics The results show once again that in an A06 indicates that the global , an internationally recognised interconnected economy, consumers economic value of counterfeiting and economics research firm, was and governments suffer alongside piracy could reach US$2.3 trillion by commissioned by ICC’s Business legitimate businesses from the trade 2022. Action to Stop Counterfeiting in counterfeit and pirated goods.” and Piracy (BASCAP) and the Titled, The Economic Impacts of International Trademark Association Frontier’s analysis builds on a 2016 Counterfeiting and Piracy, the report (INTA). It was launched today in report published by the Organization provides estimates on the wider social Hong Kong during INTA’s 2017 for Economic Cooperation and and economic impacts on displaced Anticounterfeiting Conference. Development (OECD) and the economic activity, investment, European Union Intellectual Property public fiscal losses and criminal “This new study shows that the enforcement, and concludes that magnitude of counterfeiting and Office (EUIPO), which estimated the these costs could reach an estimated piracy is huge, and growing,” said value of the international trade in US$1.9 trillion by 2022. Amar Breckenridge, senior associate counterfeit and pirated products at at Frontier Economics. “Our US$461 billion in 2013, or as much Taken together, the negative impacts objective is to as accurately as possible as 2.5% of all international trade. of counterfeiting and piracy are characterise the magnitude and projected to drain US$4.2 trillion growth of this illegal underground This represents an increase of more from the global economy and put 5.4 economy and its impacts on than 80% over the findings in OECD’s million legitimate jobs at risk by 2022. governments and consumers. ground breaking 2008 report. International trade organisations release compliance guidance for trade transactions he Banking Commission of ICC and BAFT Trade Finance required by global and regional Tthe International Chamber of Principles. financial institutions of all sizes Commerce (ICC), the Wolfsberg The guidance document updates the in the financing of international Group, and the Bankers Association Wolfsberg Group’s Trade Finance trade. The document was updated for Finance and Trade (BAFT) Principles paper last revised in to reflect the growing regulatory jointly announce on 24 january the 2011. This broader industry edition expectations, as well as the more publication of The Wolfsberg Group, now addresses the due diligence stringent application of existing January-March 2017 January-March 57 ICC HQs News
regulations faced by the industry financial crimes compliance for of more than two years of work today. The collaborative effort will trade transactions. The publication undertaken by the organisations and help standardise the practice of of this document is the culmination their members. Sustainable business opens major economic opportunity says new report he International Chamber of inspiring business leaders to drive mobility systems through to circular TCommerce (ICC) has welcomed implementation of the United manufacturing. the findings of a landmark report Nations’ Sustainable Development by the Business & Sustainable Goals – often known as the “SDGs” Many companies are already taking Development Commission (BSDC) or “Global Goals”. action to support implementation of which reveals that sustainable the Global Goals – but as the BSDC business models could open The BSDC’s headline finding is that report highlights, more widespread economic opportunities worth at putting the SDGs at the heart of the business action is required to address least US$12 trillion – creating up to world’s economic strategy could global challenges such as climate 380 million jobs a year by 2030. unleash a step-change in growth and change and forced migration. productivity. Analysis presented in The new report – Better Business, the report suggests that SDG-related Better Business, Better Better World – has been developed markets have the potential to grow World was launched at the by a group of over 35 CEOs and two to three times faster than average Philanthropreneurship Forum civil society leaders including ICC GDP over the next five years – with in Vienna, Austria, and will also Secretary General, John Danilovich. many “unicorns” (start-ups valued be discussed at this week’s World The BSDC initiative was launched at over US$1 billion) already finding Economic Forum in Davos, one year ago with the aim of major success in these sectors from Switzerland. ICC Academy and ADB join forces to help close skills gap in developing Asia he International Chamber of provides online certification and challenging markets, it provides fast, TCommerce (ICC) Academy and professional development services to reliable and responsive assistance. the Asian Development Bank (ADB) meet the needs of banks, corporates have partnered to offer online global and other organisations at the ADB’s head of trade finance trade and trade finance training. forefront of international trade. Steven Beck said: “The ADB Trade Through ADB’s Trade Finance Finance Programme is committed Programme (TFP), the e-courses Commenting on the recent to providing partner banks with will use the Academy’s international partnership, ICC Academy General the knowledge required to give training model and be accessible via Manager Daniel Kok said: “Together companies the best possible support its innovative digital platform. with ADB, the ICC Academy is to reach their potential through proud to have taken a step forward international trade.” The ADB Trade This coming February, the first to train and progress capabilities in Finance Programme is committed e-course will be made available with developing countries. With ADB as to providing partner banks with more e-courses to follow throughout our partner, we pledge to help fill the the knowledge required to give the first half of 2017. The initial ever-changing skills gap.” companies the best possible support phase will benefit 150 bank staff to reach their potential through from approximately 80 TFP partner Together with ADB, the ICC international trade.” banks. It will include the Academy’s Academy is proud to have taken a two industry-backed certification step forward to train and progress TFP complements its financial capabilities in developing countries.” programmes, the entry-level Global backing with a regular series of Trade Certificate (GTC) and the workshops and seminars to increase advanced Certified Trade Finance Backed by ADB’s AAA credit rating, the ADB TFP provides guarantees understanding and expertise in trade Professional (CTFP). Through this finance products and operations, risk capacity-building initiative, the and loans to over 200 partner banks management and fraud prevention. TFP will allow its partner banks to to support trade. The programme Since 2009, TFP has supported more provide better financing options to permits companies throughout than 8,600 small- and medium-sized local export and import companies. Asia to engage in import and export activities. With dedicated businesses across developing Asia– The Academy is the world business trade finance specialists and a 24- through over 13,000 transactions organization’s ground-breaking hour response time, the TFP has valued at over US$25.5 billion–in e-learning platform. Established in established itself as a key partner in sectors ranging from commodities 2015 to address the global shortage of the international trade community. and capital goods to medical supplies trade finance expertise, the Academy To close gaps in the region’s most and consumer goods. January-March 2017 January-March 58 WTO News WTO members welcome entry into force of the Trade Facilitation Agreement TO members hailed the and their amendments, signed the Agreement's implementation. Many Wentry into force of the Trade official depositary notification of the also remarked that the TFA's entry Facilitation Agreement (TFA) as a TFA's entry into force. He handed into force demonstrated members' historic achievement at a meeting of over the notification to General collaboration across various levels the General Council on 27 February. Council Chair Ambassador Harald of development and could serve as a In welcoming this milestone, Neple (Norway) at the meeting. “The model for more WTO agreements in members pledged to advance work Agreement on Trade Facilitation is a the future. on implementing the TFA so that the defining multilateral achievement of full benefits of the Agreement can be our time,” Ambassador Neple said. “It The Agreement is unique in that reaped. is practical, modern and global and it it allows developing and least- symbolizes the essence of the WTO: developed countries to set their own The TFA, the first multilateral deal members from all corners of the timetables for implementing the TFA concluded in the 21 year history globe coming together, overcoming depending on their capacities to do of the WTO, entered into force on differences and responding to so – and it provides for support to 22 February after the organization pressing trade issues for the benefit help them develop their capacity. The obtained the needed acceptance of all,” he said. Trade Facilitation Agreement Facility from two-thirds of its 164 members (TFAF) was created at the request for the agreement to take effect. The The chair called on members who of developing and least-developed TFA seeks to expedite the movement, have not yet ratified the TFA to do so countries to help ensure they receive release and clearance of goods across soon and to deposit their instruments the assistance needed to reap the full borders and creates a significant of acceptance. All members, the benefits of the TFA and to support the boost for the multilateral trading chair added, must work together to ultimate goal of full implementation system. fully implement the Agreement. All of the new agreement by all delegations taking the floor at the In his address to WTO members, members. The TFA further provides meeting—representing developed, Director-General Roberto Azevêdo developing and least-developed for the establishment of a Committee said: countries (LDCs)—welcomed the on Trade Facilitation to periodically review the Agreement’s operation “By ratifying the agreement, members TFA's entry into force. and implementation. have shown their commitment to the Cambodia, speaking on behalf of multilateral trading system. You have the least-developed countries (LDC) Full implementation of the TFA is followed through on the promises group, said the milestone marked a forecast to slash members' trade made when this deal was struck in very important start to members' costs by an average of 14.3 per cent, Bali. And by bringing the deal into with developing countries having force we can now begin the work of work to achieve results in trade the most to gain, according to a turning its benefits into reality.” DG facilitation. Cambodia, along with 2015 study carried out by WTO Azevêdo also thanked the members several other delegations, emphasized economists. The TFA is also likely for their considerable efforts to the need of developing countries to reduce the time needed to import reach this historic juncture. “This and LDCs for implementation goods by over a day and a half and achievement belongs to all of you,” assistance. Several delegations he said. meanwhile echoed the chair's call to export goods by almost two days, for the remaining members to ratify representing a reduction of 47 per The Director-General, in his capacity the TFA while also offering their cent and 91 per cent respectively as depositary of the WTO Agreements support for capacity building for the over the current average. Roberto Azevêdo reappointed WTO Director-General; second term begins in September t a meeting of the General 2017, earlier outlined his vision for 3 November 2016 at the outset of ACouncil on 28 February, WTO the future and took questions from the selection process. He was the members agreed by consensus to the membership on challenges facing only candidate nominated for the appoint Roberto Azevêdo for a the organization. Director-General post when the process closed on second four-year term as Director- Azevêdo confirmed his willingness 31 December 2016. In thanking General. Mr Azevêdo, whose second to serve a second term in the role members for their support, DG term will begin on 1 September in a letter to WTO members on Azevêdo said he believed the WTO January-March 2017 January-March 59 WTO News
“is on the right path. We have with you all to that end.” DG Azevêdo cooperation and solidarity among achieved a great deal over the last few also encouraged members to speak nations. DG Azevêdo also took years. The WTO is stronger today up for the WTO. “I ask you to stand questions from the membership than it was in 2013.” up and make the case for the value regarding the management of the that you see in trade and the trading WTO, how to advance negotiations “But we can do much more — system. and ensure a successful outcome at particularly for the smaller players the organization’s upcoming 11th and those who feel cut off from This organization is here for a Ministerial Conference in December the economic benefits of trade. We reason — to support economic 2017, the challenges currently facing must build a more inclusive trading development, growth and job the multilateral trading system, and system. I look forward to working creation, but also to support peace, other issues of interest to members. 2017 Public Forum theme to be “Trade: Behind the Headlines” he WTO’s 2017 Public Forum, At this year’s Forum, discussions best to tackle the challenges of the Tto be held on 26-28 September, will focus on how to make trade changing trade landscape. will present an opportunity for work for more people and address Sessions for the Public Forum more effectively the challenges participants to go beyond the rhetoric are organised by civil society, trade can generate. It will provide and examine the opportunities academia, business, governments, a platform for engagement and trade offers and the challenges it parliamentarians and deliberation on how trade and the can bring. Entitled “Trade: Behind intergovernmental organizations. WTO can contribute to attaining the The call for proposals will open soon. the Headlines”, the Forum comes Sustainable Development Goals, how at a time when anti-globalisation the benefits of trade can be shared Registration for those wishing to sentiment and rising protectionism more widely among countries, attend the Forum is due to open on call into question the role of trade. businesses and individuals and how 15 May 2017. DG Azevêdo inaugurates WTO’s first Young Professionals Programme irector-General Roberto knowledge, skills and experience personally witnessed the entry into DAzevêdo welcomed the first during the 12-month placement at force of the TRIPS amendment to cohort of young professionals the WTO, and to help spread the ease access to affordable medicines. at an inauguration ceremony of knowledge of the WTO back home. the WTO Young Professionals “You can be the ambassadors of the Fernando Bertran, another young Programme on 6 March.The WTO WTO, and encourage others who professional from Chile, said he Young Professionals Programme are interested in the Organization would like to help raise awareness was launched in 2016 with the to come here”, he told the young about WTO issues back home. aim of enhancing the knowledge professionals. “Coming from the private sector and skills on WTO issues of young in Latin America, people around Leticia Caminero, a young professionals from developing me are not fully aware of what the professional from the Dominican and least developed countries — WTO does, and it is a real privilege Republic, shared her impression of especially from WTO members to witness first hand things of such that are not currently represented the programme: “It has been amazing to experience the international importance, to which we normally at the professional level in the WTO would not have access.” Secretariat. spectrum of intellectual property policies, to learn about the WTO Fernando is currently working in the “By allowing these young Secretariat’s work and how countries Legal Affairs Division of the WTO professionals to get to know our work come together and try to better the Secretariat. Before, he worked in a and to contribute to our activities, this system.” private law firm in Chile. Programme can help to widen the Leticia is currently working in the pool of qualified applicants for future The first cohort of five young recruitment exercises at the WTO, Intellectual Property, Government Procurement and Competition professionals has been selected and elsewhere,” said DG Azevêdo. from a total of 848 candidates after “I think this is an important step to Division. Before joining the Young a competitive, merit-based selection help increase diversity and broaden Professionals Programme, Leticia process. They started working in the representation of the membership in ran a law firm in the Dominican WTO in early 2017 and will spend the Secretariat.” Republic advising artists and movie producers on intellectual property one year in the WTO Secretariat to DG Azevêdo encouraged the young rights. She said that the last month learn about the WTO’s work and to professionals to develop their had been remarkable, as she contribute to its activities. January-March 2017 January-March 60 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 January-March 2017 January-March 61