Editor’s Note Non-Performing Loans : Curse for sustainable growth Now that Bangladesh has graduated to developing country all eorts should be made to strengthen the banking sector which is the backbone of the economy. e requirements and challenges of many to a developing country must not be ignored and the best way to do this is strengthening the capital & liquidity ratio of the banks. Non-Performing Loans (NPL) is one of the issues that is impacting capital adequacy of the industry specially the eight state-owned commercial and specialized banks. For decades, state-owned banks have been the prime leader to the large corporate borrowers particularly in the industrial sector of the economy. e prerequisite for the economic development of a country is smooth and ecient ow of e Executive Board saving-investment process. Bangladesh, being a developing country and with an underdeveloped capital market, mainly depends on the intermediary role of commercial banks for mobilizing internal saving and providing capital to the investor. us, it matters President how well our nancial sector is functioning. Mahbubur Rahman In Bangladesh six state-owned commercial banks account for about a quarter of total banking sector assets. ey are supplemented by two state-owned specialized development banks, 40 private commercial banks and nine foreign banks. Vice Presidents Capital adequacy is the primary indicator of the banks’ nancial tness and stability. A er Latifur Rahman successful implementation of Basel II guideline in regards to the adequacy of capital, Rokia Afzal Rahman Bangladesh Bank is now in the process of implementing Basel III guidelines which is an international regulatory framework for banks. Members According to a Bangladesh Bank study ve years (during CY2012 to CY 2016) average ratio A. H. Aslam Sunny of gross NPLs to total loans were about 27.1 percent, whereas, it was 4.9 percent for PCBs, 6.5 percent for FCBs & 22.56 percent for SCBs. e percentage of classied loan to total A. K. Azad outstanding stood at 10.1 percent in June 2016. e percentage was highest for the SBs 26.1 A. S. M. Quasem percent, for the PCBs 5.4 percent, for the SCBs 25.7 percent and for the FCBs 8.3 percent. A ab ul Islam Until September 2017, total banking sector loan amounted to Tk 7,527.30 billion, of which Anwar-Ul-Alam Chowdhury (Parvez) Tk 803.07 billion or 10.67 per cent was bad debt. And if restructured or rescheduled loans Kutubuddin Ahmed were included, NPL in the banking sector goes up to 17 percent of total outstanding loans. Mahbubul Alam By the end of September, the total bad debt of SCBs stood at Tk385.17 billion against the Md. Fazlul Hoque disbursed loans of Tk1,316.89 billion (29.25% of disbursed loan); total bad debt of specialized Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank stood at Tk55.18 Md. Siddiqur Rahman billion against the disbursed loans of Tk231.93 billion (23.79% of disbursed loan); PCBs had Mir Nasir Hossain default loans of Tk339.73 billion against the disbursed loans of Tk5,687.32 billion (5.97% of R. Maksud Khan disbursed loan) and FCBs had bad debt of Tk22.98 billion against the disbursed loans of Tk291.16 billion (7.89% of disbursed loan). Barrister Raque-ul Huq Rupali Chowdhury Naturally, these high NPLs have aected the protability and the overall capital to risk weighted assets ratio (CRAR), a key measure of bank strength and stability. According to Sheikh Kabir Hossain e Economist's Intelligence Unit, e CRAR at private banks was 12.2%, while that at the Tapan Chowdhury nine foreign banks was a healthy 23.9% , the six state-owned commercial banks was only 5.9% and that of the two specialised state-owned banks was an astonishing -35.23%. Further bad loans are routinely restructured to permit further lending to the same Editor borrowers. According to a study by the Bangladesh Institute of Bank Management (BIBM) Ataur Rahman an average banks rescheduled bad loans of Tk109.1bn annually during 2010–14. Secretary General According to a meeting of the parliamentary standing committee on nance ministry at the Jatiya Sangsad Bhaban on February 28 the amount of defaulted loans of top 25 defaulters Editorial Associate stood at Tk 96.96 billion as of September last year. e central bank submitted the list at parliamentary standing committee suggested forming a joint committee comprising BB Syeda Shahnewaz Lotika and nance ministry ocials. Deputy General Manager In contrast, to recapitalize banks over the past few years the government has provided large amounts to the sector. In the budget 2017/18 the government has earmarked Tk20bn to Contents recapitalise state-owned banks. e decision to provide funding has been criticized by the experts. As despite the regular infusion of budget funds, state-run banks have not improved ICC Bangladesh News 02 their NPL positions. ICC HQs News 09 Until now, only limited action has been taken to penalise defaulters, improve risk Bangladesh Economy 18 management and strengthen bank management. To tackle the sector's deep-rooted Regional News 38 problems of corruption and poor risk practices further eorts needed. WTO News 48 News Bulletin

ICC Bangladesh News Election of new First Vice–Chairman and Secretary General of ICC Hqs. e Extra-ordinary World Council eld of corporate sustainability. He ICC Secretary General John Dani- of ICC was held in Tokyo on 8 served as a member of the UN lovich upon stepping down from March. e Council unanimously Secretary General’s High-Level his current role at Corrs Chambers elected Paul Polman, CEO of Panel responsible for formulating Westgarth. He previously served

ICC Bangladesh President Mahbubur Rahman, Vice-President Latifur Rahman & Secretary General Ataur Rahman are seen among other delegates at the ICC World Council held in Tokyo on March 8. Unilever as ICC’s new First Vice- the Sustainable Development Goal on ICC’s Executive Board and in Chair and John W.H. Denton AO – (SDGs) – launched in 2015 – and 2016 became the rst Australian to currently Chief Executive Ocer of was subsequently appointed as a hold the position of First Vice-Chair Australian law rm Corrs Chambers UN SDG Advocate responsible for of ICC. Westgarth as the next Secretary- promoting the “Global Goals”. e ICC World Council was attend- General. Mr Denton is a legal expert and ed by more than 50 Chairmen/Vice- Mr. Polman will succeed current adviser on global policy, internation- Chairmen/Secretary Generals of the ICC Chairman Sunil Bharti Mittal al trade and investment and infra- ICC National Committees from from 1 July, 2018, who in turn will structure. His advice is sought by dierent parts of the World. ICC take the position of Honorary Australia’s most prominent corpora- Bangladesh President Mahbubur Chairman of ICC. tions and by governments and Rahman, Vice President Latifur international bodies alike. Mr Polman is a globally recognized Rahman and Secretary General business leader and a pioneer in the Mr Denton will succeed outgoing Ataur Rahman also attended. ICC Bangladesh Delegation to ICC Asia Pacic RCG and 4th Asia Pacic CEO Forum, Tokyo. e ICC Asia Pacic Regional Forum. ICC Bangladesh President e Meeting was informed that the Consultative Group (RCG) Meeting Mahbubur Rahman, Vice President National Committee membership and CEO Forum was held in Tokyo Latifur Rahman and Secretary fees will remain unchanged for the on 8-9 March 2018. Both the meet- General Ataur Rahman attended all time being. An update on ICC ings were attended by almost all the the meetings. strategy and policy work, status of National Committee of the Region. Incoterms 2020, participation of In addition, representatives from ICC Asia Pacic RCG Coordinator Asia-Pacic NCs in the new Arbitra- ICC Belgium, Finland, Germany, Harsh Pati Singhania delivered the tion Incentive Scheme, promotion Mexico and Turkey and Chinese welcome address. ICC Japan Vice of the new ICC Dispute Resolution Taipei Business Council of ICC Chair Toru Ishida, ICC Secretary Bulletin, update on ICC activities attended as observers. Extra- General John Danilovich and ICC with regard to SMEs, ICC’ role at ordinary World Council of ICC was Secretary General Designate John UN, ICC Academy and 11th WTO held prior to ICC RCG and CEO Denton made introductory remarks. Ministerial Conference were made January - March 2018 2 News Bulletin ICC Bangladesh News by ocials from ICC. ICC Japan ICC Secretary General John Dani- Partners Securities PLC; Shujiro Urata, also made a presentation on Asia lovich, ICC Asia Pacic CEO Forum Professor of Waseda Univesity and Pacic Economic Outlook. ICC Task Force Chairman Raghu Mody Tetsuro Fukunaga, Director General Bangladesh Vice President Latifur and ICC Japan Chairman Mikio for International Cyber Economy Rahman also attended the ICC Sasaki made the welcome address Policy, Ministry of Economy Trade Executive Committee Meeting. at the beginning of the Forum. and Industry of Japan.

ICC Secretary General John Danilovich (extreme le ) moderating 2nd panel discussion on “Achieving the United Nations Sustainable Development Goals (SDGs) rough Innovation and Entrepreneurship”.

As a very active National Commit- ICC First Vice Chairman & CEO of e 2nd Panel was on “Achieving tee in the Region, ICC Bangladesh Unilever Paul Polman and Mr. Akio the United Nations Sustainable was requested to make a presenta- Mimura, Chair, Japan Chamber of Development Goals (SDGs) tion on its activities. ICC Bangla- Commerce and Industry, Senior rough Innovation and Entrepre- desh President briefed the Meeting Advisor & Honorary Chair, Nippon neurship” was moderated by ICC about the activities of ICC Bangla- Steel and Sumitomo Metal Corpora- Secretary General John Danilovich. desh which was followed by a power tion were the Keynote Speakers. e discussants were Takeo point presentation made by the ICC ere two panel discussions. e rst Harada, CEO of Institute for Inter- Bangladesh Secretary General. Panel was on “Transforming the future national Strategy and Information e CEO Forum held on 9 March –Technology, Trade and the future of Analysis. Inc.; Cherie Nursalim, was attended by some 150 CEOs work in the Asia Pacic” which was Vice President of Citi Group and form various multinational compa- moderated by ICC Secretary General Jemal Insishvilli, President of nies. ICC Bangladesh President and Designate John W.H. Denton and the Confederation of Asia Pacic Secretary General also attended the discussants were Kasemsit Pathomsak, Chamber of Commerce and Indus- CEO Forum. President and CEO of Merchant try (CACCI).

Technical Workshop on Private Sector Engagement through Development Co-operation: Opportunities for Business to bring solutions to scale-up for the SDGs e Government of Bangladesh, Co-operation, held a technical together public institutions, domes- Co-Chair of the Global Partnership workshop on private sector engage- tic and international private sector for Eective Development Co-oper- ment in Dhaka on 4-5 February. actors, civil society, trade unions, ation, ICC Bangladesh and the e Workshop was organized with parliamentarians, development Secretariat of the Global Partner- support from the Government of partners and research institutions. ship for Eective Development Germany. e workshop brought Representatives from India, Nepal January - March 2018 3 News Bulletin ICC Bangladesh News

and Sri Lanka also participated, ment to map the SDGs to govern- ship. e United Nations Develop- sharing experiences and promoting ment institutions and the Global ment Programme Bangladesh coun- peer learning. Partnership’s eorts to assess ways try oce is working on a mapping of

ICC Bangladesh Vice President Rokia A. Rahman ( 2nd from right) made the welcome address

ICC Bangladesh Vice President to adapt policies and approaches in private sector contributions to the Rokia A. Rahman attended the PSE by development partners. ey SDGs which can be shared going inaugural session and delivered called for a mapping of how the forward. Complementing these eorts, there is a need to identify welcome address. ICC Bangladesh private sector is contributing to the best practice in PSE through devel- Secretary General Ataur Rahman SDGs to complement these eorts opment co-operation to facilitate attended the 2-day workshop. and enable the identication of gaps, greater understanding of what PSE Participants at the workshop reduce duplication of eorts and means and identify opportunities to welcomed initiatives by the govern- highlight opportunities for partner- replicate and/or scale successes. Bangladesh –Austria trade and Economic Forum ICCB President urged Austria to ease visa & LC rules Local exporters on 27 February providing visa from Dhaka to facili- Vienna to participate in a global urged Austria to ease rules for visa tate promotion of trade between the conference on LC and bank guaran- processing and accept Bangladeshi two countries. He also said many tee coming June, said ICC Bangla- banks' letters of credit in order to Bangladeshi businessmen can't do desh President Rahman. expand bilateral trade. ey said the business with Vienna as Austrian e Business Initiative Leading move would also enable Bangla- banks don't want to conrm Development (BUILD), a public- deshi businessmen to frequently Bangladesh's LCs. private policy dialogue platform, the travel to the European country. So, Austria needs to relax the LC Federation of Bangladesh Chambers Currently, Bangladeshis have to processes as bilateral trade is of Commerce and Industry (FBCCI) obtain visa from Delhi in absence of expanding every year, he told the and the MCCI jointly organised the an Austrian embassy in Dhaka. “Bangladesh–Austria Economic forum on the occasion of a visit of a ICC Bangladesh President and Trade Forum” held at the 25-member Austrian business Mahbubur Rahman suggested to Metropolitan Chamber of Com- delegation led by H.E. Mrs. Brigitte the Austrian Ambassador to active- merce and Industry (MCCI) in Oppinger-Walchshofer Austrian ly consider opening a resident Dhaka. With a mission of easing the Ambassador to Bangladesh. e mission in Dhaka as bilateral trade LC rules, he will lead a delegation balance of bilateral trade is in is growing. is will also help in from the local banking sector to Austria's favour. January - March 2018 4 News Bulletin ICC Bangladesh News

Shubhashish Bose, Commerce Austria are readymade garments and number of Facebook users, and Secretary, said the ministry would textile while the main imports are 12,000 businesses are running via amend the Companies Act 1994 to energy equipment, boiler machinery Facebook in Bangladesh, he said. bring in provisions legalising both and chemicals. Besides, Bangladesh manufacture single director companies and the Mr. Saiful Islam, President of the shoes for globally renowned brands handing over of companies from Leathergoods and Footwear Manu- like Armani and the country is the one foreigner to another. Bose facturer and Exporter's Association largest consumer of Swiss Moven- invited Austrians to invest in the of Bangladesh, echoed Suggestions pick ice cream, Manzur said. 100 special economic zones being made by ICCB President Rahman. Bangladesh also spends billions of developed by the Bangladesh Every year, Bangladesh exports dollars for tourism, especially for Economic Zones Authority (BEZA) leather goods worth $3 million health tourism in India every year. across the country. He also said directly to Austria and if the LC “We need to show ourselves to the foreign investors, like their local people of the world,” he added. counterparts, enjoy zero-duty bene- issues are resolved, shipments will ts on exports from Bangladesh grow further, Islam said. Md Muntakim Ashraf, Acting Presi- under the European Union's Syed Nasim Manzur, former presi- dent of the FBCCI, and Oskar “Everything but Arms” scheme. dent of the MCCI, said a lot of Andesner, head of Advantage

ICC Bangladesh President Mahbubur Rahman (3rd from le ) attended at Bangladesh-Austria Trade and Economic Forum held in MCCI on 27 February. Also seen in the picture are former MCCI President Syed Nasim Manzur (3rd from right) & former DCCI President Asif Ibrahim (2nd from right).

In 2016-17, Bangladesh imported people around the world don't know Austria signed an agreement to goods worth $92.13 million and about Bangladesh and its business facilitate, strengthen and diversify exported products valued $66.48 potentials. Bangladesh is the second cooperation between Bangladesh's million, as per commerce ministry largest garment exporter in the apex trade body and the Austrian data. Bangladesh's main exports to world, Dhaka has the second largest Federal Economic Chamber.

Two ICC Workshops on Letters of Credit heald in Chittagong ICC Bangladesh organized two First Workshop on Letters of Credit by the local resource persons and Workshops on Letters of Credit in in Law and Practice. ICC Bangla- the London Institute of Baking and Chittagong on 10-11 February. Mr. desh Secretary General Ataur Finance (LIBF), UK approved 8 ATM Nesarul Hoque, CDCS, Rahman made the opening remarks (eight) PDUs for local workshop for CSDG, CITF, Vice President of and mentioned that both the work- re-certication of CDCS (Certied Mutual Trust Bank conducted the shop content have been developed Documentary Credit Specialists) January - March 2018 5 News Bulletin ICC Bangladesh News

and CSDG holders. A total of 68 Head of Import Settlement, Trade that the bankers have been able to participants from 30 Banks attend- Operations of BRAC Bank. discuss about various issues related ed the Workshop: to letters of credit and how to solve President of Chittagong Chamber of the problems. ICC Bangladesh Secre- e second Workshop on Commerce and Industry (CCCI) tary General Ataur Rahman thanked Advanced Documentary Credits Mr. Mahbubul Alam attended the CCCI President for kindly

Chittagong Workshops-I

Group picture of participants with CCCI President Mahbubul Alam (6th from right), ICC Bangladesh Secretary General Ataur Rahman (7th from right) and Resource Person K.M. Lutfor Rahman (5th from right).

and Guarantees for Specialists was the closing session as chief guest and accepting the invitation to attend the held in Chittagong on 11 February. distributed the certicates to the closing session and distribute certi- e Workshop was conducted by participants. He thanked ICC cates among the participants. A total Mr. K. M. Lutfor Rahman CSDG, Bangladesh for organizing the two of 65 participants from 29 Banks CAMS, DAIBB, Senior Manager & workshops in Chittagong. He hoped attended the Workshop. ICC Bangladesh - London Institute of Banking and Finance joint initiative for professional development of Bankers of Cambodia and Myanmar: e London Institute of Banking on international trade nance. ICC bankers. He also discussed providing and Finance (LIBF) and ICC Bangladesh Secretary General training to those who are going to Bangladesh have jointly taken the Ataur Rahman visited Yangon, appear at Certied Documentary Credit Specialist (CDCS) Examina- tions held globally by LIBF in every April and October. It may be mentioned that a few bankers from Yangon will be appearing at CDCS Examination in April. At the request of the Myanmar Institute of Bank- ing, ICC Bangladesh arranged a training in Yangon for the candi- dates on 24-26 March. Mr. ATM Nessarul Hoque CDCS, who is a

Group picture of participants with resource person A.T.M. Nesarul Hoque, Senior ocial of Mutual Trust Bank senior ocial of the Mutual Trust at a training programme for bankers organized by ICC Bangladesh in Yangon. Bank, conducted the training. initiative for professional develop- Myanmar on 21-24 February and Altogether 22 bankers attended the ment of bankers from Cambodia Phnom Penh, Cambodia on 4-6 training. Some of them are planning and Myanmar dealing with interna- March for discussion about training to appear at CDCS Examination to tional trade by conducting training needs with concerned institutes and be held in October. January - March 2018 6 News Bulletin ICC Bangladesh News 71st ICCB Executive Board Meeting held decided on holding Annual General Council 2017

e 71st Meeting of the ICC Bangla- Busyness Forum (APBF) scheduled and the following four Board Mem- desh Executive Board was held on to be held in Hong Kong on 10-11 bers: A.S.M. Quasem, Md. Fazlul 28 March at ICC Bangladesh Secre- April 2018. Hoque, Kutubuddin Ahmed, Mir tariat. e Executive Board conrmed the Minutes of the 70th Meeting of Board held on 26 December. e Executive Board also reviewed the activities of the National Committee and xed the date of 23rd ICC Bangladesh Annual General Meeting 2017 to be held on 10 May. e other agenda items discussed included :review of ICC Bangladesh activities during ICC Bangladesh Executive Board Meeting reviewed activities of National Committee during January-March 2018. January-March 2018; participation e Executive Board Meeting Nasir Hossain and R. Maksud at ICC Asia Pacic RCG and the 4th presided over by ICC Bangladesh Khan. Secretary General Ataur Asia Pacic CEO Forum held on President Mahbubur Rahman was Rahman and General Manager Ajay 8-9 March in Tokyo and participa- attended by Vice Presidents Latifur Bihari Saha also assisted the Presi- tion at UNESCAP Asia Pacic Rahman and Rokia Afzal Rahman dent in deliberation of the Agenda. ICC Bangladesh Banking Commission Meeting held ABB Chairman Syed Mahbubur Rahman attended as Special Guest A Meeting of the ICC Bangladesh Pubali Bank Managing Director Financial Market of Standard Char- Banking Commission was held on Helal Ahmed Chowdhury; Manag- tered Bank Alamgir Morshed; 15 February at ICC Bangladesh ing Director of Islami Bank Bangla- Former Managing Director of Secretariat. e Meeting Chaired by desh Mahbubul Alam; Prime Bank Sonali Bank Mohammed Hossain; ICC Bangladesh Banking Commis- Managing Director Rahel Ahmed; Executive Vice President of Mutual sion Chairman Muhammad A. Additional Managing Director of Trust Bank Md. Bakhteyer Hossain; (Rumee) Ali was attended by the Dhaka Bank Emranul Huq; Deputy Former IFC Consultant to Bangla- following members: Md. Ahsan Managing Director & Head of desh Bank on SME Financing Kamal Niaz Hassan, and ICCB Secretary General Ataur Rahman.

Syed Mahbubur Rahman, Chair- man of ABB & Managing Director of Dhaka Bank attended as Special Guest and shared his thoughts on the banking sector.

ICC Bangladesh President Association of Bankers Bangladesh Chairman Syed Mahbubur Rahman addressing the ICC Bangladesh Banking Commission Meeting as a Special Guest. Mahbubur Rahman also attended Ullah, Advisor, Financial Sector Corporate Banking of Eastern Bank and discussed with the members Support Project & Former Execu- Ahmed Shaheen; Deputy Managing about various ICC Bangladesh tive Director of Bangladesh Bank; Director & Head of Operations of activities as well as made a number BIBM Director General Dr. Touc e City Bank Mahia Juned; Sr. of suggestions for the Members to Ahmad Choudhury; BIBM Super- Representative Commerzbank AG consider for improving the banking numerary Professor & Former Bangladesh Tawq Ali, Head of sector operations. January - March 2018 7 News Bulletin ICC Bangladesh News Images from the Gallery

ICC Bangladesh President Mahbubur (middle), Vice-President Latifur Rahman (extreme le ), Secretary General Ataur Rahman (extreme right) are seen with ICC Secretary General John Danilovich and Mrs. Danilovich during gala dinner of ICC Asia Pacic CEO Forum in Tokyo on 8 March.

ICC Bangladesh Secretary General Ataur Rahman (le ) is seen with Dr. Sein Maung (middle), Chairman, First Private Bank, Myanmar and Ms. andar Htike Mary, Senior Manager, Trade Finance, United Amara Bank, Myanmar in Yangon on 23 February.

Chittagong Workshops-II

Group picture of participants with ICCB Secretary General Ataur Rahman (7th from right) & A.T.M. Nesarul Hoque (8th from right), Senior Ocial of Mutual Trust Bank Limited at ICCB Workshop on Letters of Credit in Law and Practice held in Chittagong on 10 February. January - March 2018 8 News Bulletin

ICC HQs News John Denton and Paul Polman to take up new leadership roles at world’s largest business organization John W.H. Denton AO – currently Mr Denton – who was unanimously Paul Polman, CEO of Unilever, has CEO of the leading Australian law elected by ICC’s World Council also been unanimously elected as rm Corrs Chambers Westgarth – following an extensive search ICC’s new First Vice-Chair. Mr on March 8 has been elected as the process – will succeed outgoing ICC Polman will succeed current ICC Chairman Sunil Bharti Mittal from 1July, 2018, who in turn will take the position of Honorary Chair. Mr Polman is a globally recognised business leader and a pioneer in the next Secretary-General of ICC, the Secretary General John Danilovich eld of corporate sustainability. Mr world’s largest business organiza- upon stepping down from his Polman served as a member of the tion. Mr Denton is a legal expert and current role at Corrs Chambers UN Secretary General’s High-Level adviser on global policy, internation- Westgarth. Mr Denton previously Panel responsible for formulating al trade and investment and infra- served on ICC’s Executive Board and the Sustainable Development Goal structure. His advice is sought by in 2016 became the rst Australian (SDGs) – launched in 2015 – and Australia’s most prominent corpora- to hold the position of First was subsequently appointed as a UN tions and by governments and Vice-Chair of the Paris-based SDG Advocate responsible for international bodies alike. organization. promoting the “Global Goals”. ICC Secretary General-elect John W.H. Denton AO to Sky News: e global trade context has “completely changed.”

In a live interview on March 14 with time, more than ever, to communi- taining the predictable and regular Australia’s Sky News, ICC Secretary cate the benets of world trade for all nature of world trade. “Having an General-elect John W.H. Denton and establish global trading rules for orderly system enabling world trade AO told presenter Ticky Fullerton the twenty-rst century. has been a key driver of economic that, as he takes the helm of an organisation with nearly a century of history, the political context surrounding world trade has reached a critical juncture. “I’m taking on a legacy of 100 years of business seeking to build better communities, create prot and drive economic growth, but the actual context in which we operate has completely changed,” Mr Denton said.

At a moment when new taris “President Trump and his adminis- growth and taking people out of imposed by the United States on tration are not fans of multilateral- poverty. e crown jewel of this steel and aluminium imports have ism,” Mr Denton noted. “What system is the way in which disputes spooked markets and sparked we’re saying is that there is still have been resolved in a predictable renewed fears of a looming trade great value to be had for the manner through the WTO [World war, Mr Denton argued that it was world—and for the US—in main- Trade Organisation] dispute process.” January - March 2018 9 News Bulletin ICC HQs News

Twenty-rst century trade agenda and the US economy have been net organisation and any system, needs beneciaries of a successful and to reinvent itself on a continual Asked what steps should be taken to functioning WTO” said Mr Denton. basis, and it’s trying to.” move beyond current stalemates on trade and globalisation, Mr Denton Second, the WTO needs “a new An extraordinary opportunity identied three elements. agenda that makes sense for the Finally, business needs to be twenty-rst century”, and which First, stakeholders should issue a engaged in economic policymaking demonstrates the institution’s robust defence of the multilateral at every level, sharing its expertise positive role in enabling job trading system but in a good faith to develop holistic solutions to creation, economic growth and environment “where measured global challenges. “ere is a sustainable development. For discussions can take place”. is realisation that states themselves instance, a dening challenge of our means noting real institutional or time is how to better share the gains can’t solve everything,” Mr Denton market challenges to current trading of globalisation and make trade said. “ICC has now been identied relationships while upholding the more inclusive. Solutions to this as the representative throughout fundamental importance of the challenge, Mr Denton argued, will the United Nations for all of the WTO—something clearly necessarily come through new global private sector. recognised by the global business rules for the digital economy, partic- “It’s an interesting recognition by community. ularly regarding e-commerce. the international community that “Businesses want to maximise their “You’re not going to get that on a they need the voice of the private supply chains with eciencies that bilateral basis [but] only through a sector. What it says is that public come through having access to an multilateral agreement and the policy is richer when the private open trading system. US businesses WTO is best. e WTO, like any sector is engaged in its formation.” WTO and ICC select three more ‘Small Business Champions’ proposals e proposals were put forward by Institute will provide support, train- online commerce presents for them the Institute of Export and Interna- ing and the online tools to help small as independent companies to broad- tional Trade (UK), eBay (US), and businesses put together a ‘global en their customer base. To that end, the National Confederation of the initiative seeks to help MSMEs in Industry (Brazil). Latin America, the Middle East and ICC and the World Trade Organisa- North Africa leverage the eBay tion (WTO) on March 14 marketplace to reach developed announced the selection of three market consumers. e initiative more proposals submitted under the will be executed in partnership with ICC-WTO Small Business Champi- growth action plan’. e businesses export promotion and development ons initiative. e proposed activi- with the best action plans will then agencies. It will target export-ready ties, including a range of training, have the opportunity to present and motivated MSMEs—identied capacity-building initiatives and them to a panel of judges at the through application campaigns— competitions for micro, small and WTO Public Forum in October. e providing training on key online medium-sized enterprises (MSMEs), 20 nalists will receive training in commerce issues (marketing skills, will be carried out over the coming export skills and the winning entries access to international payments, months. will receive support from the cross-border logistics, tax/regulatory Institute to put their plans into processes). e initiative will also Under their proposal, the Institute of action. oer a package of promotional eBay Export and International Trade will services and support and showcase run a competition called the ‘Open e proposal from eBay, the ‘eBay successful project participants. to Export International Business Emerging Markets Initiative’, aims Awards’, aimed at encouraging small at raising awareness among small e proposal from Brazil’s National businesses around the world to business communities in emerging Confederation of Industry aims to begin trading internationally. e countries of the opportunities that provide a series of tools to support January - March 2018 10 News Bulletin ICC HQs News

MSMEs, to better understand, Confederation will conduct a range ty-building roadshows in nine identify and overcome barriers to of activities, including: launching a Brazilian states; and providing infor- doing business in foreign markets. survey of small businesses to identify mation and training through Under this project, titled ‘Small the diculties they face as they trade brochures, guides, online courses, Business Without Barriers’, the internationally; conducting capaci- and videos. ICC appoints new Chair of the Commission on Environment and Energy

ICC is pleased to announce the partnerships. He brings his strong is is a key appointment for the appointment of Justin Perrettson leadership skills and rich experience Commission on Environment and from Novozymes as the new Chair of of business engagement to the role. Energy as it continues to evolve its the Commission on Environment strong and unique oering to the and Energy—eective from 1 March international business community. 2018. Mr Perrettson is Head of Mr Perrettson will be responsible for Global Engagements at Novozymes, ensuring ICC’s leading role on the world`s leading bio innovation responsible business engagement company, where he leads a series of that promotes sustainable, inclusive policy and stakeholder interactions economic growth in line with the that support its sustainability United Nations Climate Change and agenda. He also has broad interna- Sustainable Development Goals. tional policy experience from Mr Perrettson takes over from consulting, nance and Kersten Karl Barth, who has led the not-for-prot sectors and has served work of the Commission on as an active member of the ICC Environment and Energy for the Commission on Environment and past ve years. ICC expressed Energy over the past seven years. gratitude for Mr Barth’s time, Mr Perrettson has been instrumental commitment and stewardship in leading the business voice for the Mr Perrettson is a British citizen during his time as Chair and looks Sustainable Development Goals on based in Copenhagen and speaks forward to his continued engage- climate change and public-private English, Danish and French. ment in ICC’s policy work.

ICC announces 2017 gures conrming global reach and leading position for complex, high-value disputes

Preliminary statistics released on sented in 2016. Newly-registered e statistics also revealed a record March 7 by the International Court cases represented an aggregate number of dra awards approved of Arbitration of the International value in dispute of over US$ 30.85 by the ICC Court (512) and a rise Chamber of Commerce (ICC billion in 2017, Court) reveal a record number of while the average countries represented in ICC amount in dispute Arbitration cases led in 2017. in new cases stood According to the latest gures, a at US$45M with total of 810 new cases were led in over 60% of all 2017 – slightly lower than the 966 cases led having cases led in 2016, which included an amount in 135 cases related to a set of very dispute exceeding small claims in a collective dispute. US$2 million. e 1,548 pending in the number of arbitrators Cases led in 2017 involved 2,316 cases at the end of 2017 represented appointed or conrmed by the ICC parties from a record 142 countries, an average value in dispute of US$ Court – from 1,411 in 2016 to 1,488 compared with 137 countries repre- 137,325, 630. in 2017. January - March 2018 11 News Bulletin ICC HQs News New ICC report conrms trade & export nance are not risky business e low credit risk level of trade Overall risk in export nance also nance ows. e trade nance and export nance products remains very low despite a slight products in the register are import continues to compare favourably to increase in expected losses driven letters of credit, export letters of by a small rise in default rates, credit, loans for import/export, and especially considering its backing performance guarantees. by export credit agencies. “e A strong basis for smart regulation 2017 Trade Register reiterates what As the scope and depth of nancial we have seen year on year since the regulation has expanded following project was initiated in 2009: that the global nancial crisis, some new trade nance is a reliable and rules have had the unintended low-risk asset class that should be consequence of making it dicult looked upon favourably by regula- for banks to viably provide trade tors, industry stakeholders and nance services, which are none- investors,” said Daniel Schmand, theless vital for economic growth Chair of the ICC Banking Commis- and development. Regulations sion and Global Head of Trade published by the Basel Committee, Finance at Deutsche Bank. for instance, have the potential to 20 million trade nance transactions that of similar asset classes, shows increase the capital requirements the 2017 ICC Trade Register. Default Initiated in 2009, ICC’s Trade for banks, even for activities like rates for a range of trade nance Register is the only authoritative trade nancing with negligible products ranged from 0.03% to source of trade nance and export levels of risk. 0.24%, demonstrating the extremely nance-related credit risk and “ICC’s new data on the low credit low level of credit default risk such default data. Published annually, risk of trade and export nance activities present banks and other the report aims to underpin an products comes at a crucial time, as nancial institutions, according to objective dialogue on trade nance Basel III rules will need to be trans- the 2017 ICC Trade Register—the policies between practitioners and lated into national law in the authoritative annual report from the regulatory authorities around the run-up to their implementation in ICC Banking Commission. world. 2020,” said Krishnan Ramadurai, is compares favourably to the e 2017 report, produced with the new Chair of the ICC Trade credit risk posed by other banking support from ICC’s project Register project. activities, such as enterprise partners—e Boston Consulting “e Trade Register data provides a lending, despite the inference from Group and Global Credit some nancial regulations that Data—draws on information from strong basis for a dierential these asset classes are equally risky. 22 member banks to present a treatment of trade and export e 2017 Trade Register also found global view of the credit risk nance products under banking that time to recovery—the period it proles of trade and export nance regulation,” added Mr Ramadurai. takes banks to recover their transactions. It is based on over As the Trade Register project loans—is exceptionally short for US$10.5 trillion of exposures and continues to evolve in the future, trade nance products. e average more than 20 million trade nance ICC will seek to bring new banks time to recovery for trade nance transactions from 2008 to on-board, as well as to extend its products is 120 days, compared to 2016—constituting approximately coverage to new products, such as 437 days for other asset classes. 40% of global traditional trade supply chain nance. January - March 2018 12 News Bulletin ICC HQs News ICC Court launches Belt and Road Initiative Commission e International Court of Arbitra- is already a world leading provider of from a construction and infrastruc- tion of the International Chamber arbitration andmediation services, ture initiative of this scale.” of Commerce (ICC Court) has with tried and tested mechanisms ICC is planning a series of events announced the establishment of a and a strong pool of arbitrators over the next year to spotlight its commission to address dispute resolution potential in relation to China’s Belt and Road Initiative. Alexis Mourre, President of the ICC Court announced the establishment of the commission during the ICC Court’s working session last autumn. e commission will drive and mediators. It is ideally placed to Belt and Road capabilities. Events the development of ICC’s existing provide appropriate, eective dispute are planned in diverse locations dispute resolution procedures and resolution services to parties all along including China, Kazakhstan, infrastructure to support Belt and the New Silk Road.” Road disputes. Justin D’Agostino, Kyrgyzstan, Nigeria, Southeast Global Head of Disputes at Herbert e Belt and Road Initiative commis- Asia, Japan and Hong Kong, with Smith Freehills and Hong Kong’s sion has been established to consider more to come. alternate member of the ICC Court, how ICC can best respond to dispute “We recognise the importance of has been named commission chair resolution opportunities arising from engaging key stakeholders within while Mingchao Fan, ICC Director the Belt and Road initiative, which is both corporates and governments all for North Asia, will act as secretary. estimated to have US$900bn in along the Belt and Road, to ensure projects planned or already underway. that we are oering the best possible Underscoring that ICC’s existing “ICC is unique among arbitral service to parties on all sides,” said procedures are well-suited to Belt and institutions in that it has truly inter- Mr Mourre. “Our main objective is Road disputes, Mr D’Agostino said: national coverage, with secretariats to ensure that where disputes arise, “ere is no ‘one-size-ts-all’ method and/or national committees in over they are resolved eciently and with of resolving Belt and Road disputes. 100 jurisdictions,” Mr D’Agostino minimal damage to the parties’ But there is a concerted eort to said. “Many of these lie along the commercial relationships. e Belt encourage mediation clauses in Belt Belt and Road route, giving ICC the and Road is a long-term initiative; and Road agreements, with provision regional expertise to resolve the many of these relationships will last for arbitration if mediation fails. ICC disputes that will inevitably arise for decades.” Global business concerned by “trade war” threat In view of growing global trade hit by any new taris which will alternative means to address the tensions – following the US admin inevitably push up prices at the till longstanding issue of excess capacity istration’s announcement in the steel and aluminium of plans to impose new markets. Recent years have duties on imports of steel seen a notable decline in and aluminium – ICC has trade distorting measures issued the following in these sectors and further statement: progress can only be made- through enhanced multi- ICC Secretary General lateral dialogue. Rising John Danilovich said: trade tensions must not “ere will be no winners from a and restrict consumer choice. In a become an excuse for recklessness: trade war. Open markets are – and globalized world trade is not a we urge all governments to act remain – the key driver of economic zero-sum game – and policy within the bounds of existing WTO growth, prosperity and job creation decisions must reect this reality. rules and to commit to accelerated across the world. Families struggling “We encourage the US administra- talks under existing international to make ends meet will be hardest tion and its trading partners to seek processes.” January - March 2018 13 News Bulletin ICC HQs News Commission on Arbitration and ADR Vice-Chairs announced e International Chamber of Com- Moscow); Xiaohong Liu, Shanghai Committee of the commission’s merce (ICC) has announced the University of Political Science and leadership. appointment of 11 new Vice-Chairs Law (China; based in Shanghai); Each Vice-Chair will serve a to the ICC Commission on Arbitra- Jenni Lukander, Nokia Corporation three-year term, with the exception tion and ADR, ICC’s leading think (Finland; based in Espoo); Caline of Christopher Newmark and tank and rule-making body for Mouawad, King & Spalding LLP Xiaohong Liu who serve for one year international dispute resolution. (Lebanon, United States; based in each. New York); Christopher Newmark, Formally appointed by ICC Secre- Spenser Underhill Newmark LLP e Commission membership tary General John Danilovich (United Kingdom; based in comprises approximately 850 following a proposal by Commission London); Melanie van Leeuwen, practicing lawyers, arbitrators, Chair Carita Wallgren-Lindholm Derains & Gharavi (e Nether- mediators, in-house counsel and and in consultation with the ICC lands; based in Paris) and Sharif Ali academics. It includes members, International Court of Arbitration Zu’bi, Ali Sharif Zu’bi Advocates & and its Secretariat, the new from more than 90 countries, of the Legal (Jordan; based in Amman) Vice-Chairs are: commission’s task forces estab- e new Vice-Chairs – together with lished to undertake study of a Babatunde Ajibade, SAN, S. P. A. Commission Chair Ms Wallgren- particular aspect of dispute resolu- Ajibade & Co (Nigeria; based in tion or sector to set a standard Lagos); Jose Ricardo Feris, Squire Lindholm, President of the ICC within the international dispute Patton Boggs LLP (Dominican Court Alexis Mourre, Secretary resolution community. Republic, Guatemala, Spain; based General of the ICC Court Alexander in Paris); Susanne Gropp-Stadler, G. Fessas, Chair of the Institute of e commission holds two meetings Siemens AG (Germany; based in World Business Law Yves Derains, per year, generally in spring and Munich); Dyala Jiménez Figueres, Chair of the ICC International autumn, with the next meeting DJ Arbitraje (Costa Rica; based in Centre of Expertise James Nicholson scheduled to take place on 10 April San José); Vladimir Khvalei, Baker & and Commission Secretary Helene in Paris during Paris Arbitration Mckenzie CIS (Russia; based in van Lith – constitute the Steering Week 2018. ICC releases global outsourcing guide e International Chamber of Com- outsource to reduce costs, focus on increasingly detailed and risk-fo- merce (ICC), the world business core business areas and solve capaci- cused for business operations in a organization, has released a practical ty issues. Outsourcing also creates number of historically regulated guide on how to create successful opportunities for increased global sectors. Half of all the private sector respondents in the 2016 Deloitte survey say that government legisla- tion aects their outsourcing decision process, with 41% saying it makes them more cautious. is practical guide, created by ICC’s Commission on Commercial outsourcing solutions—available trade between companies and for Law and Practice, aims at facilitating free of charge for download. international relationships between and supporting regulated businesses countries. In a globalised world, companies when they outsource their activities seek partners for cooperation and While outsourcing is widely expect- and oers a tool for interpreting outsourcing in markets and regions ed to grow—especially in functions quality-based rules such as ‘sound suitable for their business. Accord- such as human resources, informa- governance’ and ‘proper risk ing to a 2016 survey by consulting tion technology and nance—regu- management’. With the guide, ICC rm Deloitte, most companies latory environments are becoming hopes to strengthen self-regulation January - March 2018 14 News Bulletin ICC HQs News in outsourcing, complementing other “All business activities involve risk ICC’s outsourcing guide provides self-regulatory initiatives. but outsourcing vital business general principles and guidelines for functions—especially in a context both the Outsourcing Party and “Outsourcing is key to global open where standards and requirements Service Provider and is intended to markets as access to new markets is be applicable in any jurisdiction. e are not always regulated—can o en dependent on the possibility to guide is designed to be particularly compound risk, giving companies outsource,” said Christina Strandman useful when the outsourcing party is pause. We hope that this guide will Ullrich, Senior Compliance Adviser a regulated entity, such as where at CSU Compliance and Member of build condence and trust in the nancial companies are required to ICC Sweden’s Committee on Finan- outsourcing process, with the end ensure sound management of their cial Services and Insurance, who led goal of facilitating trade and invest- business regardless of whether their the outsourcing guide project. ment.” activities are outsourced or not. ICC Special Counsel named recipient of prestigious diversity award Mireze Philippe, Special Counsel at foreground that date back over two Expressing gratitude to colleagues the International Court of Arbitra- decades to an era when debate and who had nominated her, Ms tion of the International Chamber of awareness around such issues was Philippe who joined ICC in 1984, Commerce has been named as a not commonplace. said: “While I have invested time, recipient of the International energy and eorts in the last 25 years Institute for Conict Prevention and to promote women in dispute Resolution (CPR) 2018 Awards for resolution and equality for equally Outstanding Contributions to qualied female practitioners, I Diversity in ADR. Ms Philippe and never thought I would be ocially international arbitrator Lucy Green- recognized for this work. I feel wood were selected for the Awards honoured by this Award.” by a three-member panel compris- ing Co-Chairs of CPR’s Diversity e awards formally presented at Task Force. CPR’s Annual Meeting, taking place March 8-10, 2018, in Atlanta. Ms Philippe is a founding co-presi- dent of ArbitralWomen, an interna- Founded in 1979, the International tional non-governmental organisa- Institute for Conict Prevention & tion with the primary objective of Resolution (CPR) is a New York advancing the interests of women based independent non-prot and promoting female practitioners organization providing both admin- ose nominating Ms Philippe in international dispute resolution. istered and non-administered noted her decades of work research- She is also a member of the Steering arbitration services. Created 10 years ing and publishing data about the Committee of the Equal Representa- ago, the CPR diversity award is the lack of diversity in arbitrator tion in Arbitration Pledge and a only award to recognize the work of member of the Board of Advisors of appointments in international practitioners who have undertaken Arbitrator Intelligence. e Award arbitration contributing to greater initiatives towards change and acknowledges Ms Philippe’s dedicat- transparency and understanding towards achieving equality for all ed eorts to bring diversity to the around the issues. dispute resolution practitioners. 5 ways tax policy can help achieve the UN Global Goals Determining how to best mobilise e UN Sustainable Development indispensable requirement of public funds is essential for sustain- Goals (SDGs)—or ‘Global sustainable development. However, able development—particularly for Goals’—serve as an ambitious and translating the vision of the SDGs developing countries. A holistic essential set of universal goals and into action remains a major approach to tax policy, centred on targets, recognising that it is the challenge. Tax is intrinsically linked economic growth, is key. greatest global challenge and is an to development, providing the January - March 2018 15 News Bulletin ICC HQs News

revenue that states need to mobilise are essential for cross-border trade, productivity and output can rise, resources and reinforce national business investment, jobs and enabling both decent work and infrastructure. growth—all of which enable the economic growth. mobilisation of resources through ICC has released a position paper on Goal 10: Reduced inequality revenue collection. tax and the UN SDGs to mark the First Global Conference of the In developing countries, the tax Platform for Collaboration on Tax, revenue accrued from private sector which kicks o on 14 February in investment is especially valuable. New York until 16 February. e governments of African coun- tries, for example, depend on A key misconception, detailed in the foreign corporate payments for 14% ICC paper, is that development Tax policies are instrumental in of their budget funding. e UN could be entirely funded by ‘cracking reducing inequality both within Conference on Trade and Develop- down’ on tax practices such as base and among countries. ICC believes ment estimated the total contribu- erosion and prot shi ing, which that tax policies should be designed tion of multinational foreign ICC is working with other partners to support sustainable economic aliates to government budgets in to address. According to UN development, reduce inequality developing countries at US$730 estimates, total revenue lost on and promote inclusive growth. billion annually. account of base erosion and prot Moreover, tax policies should be shi ing amounts to around US$100 is revenue collection contributes exible enough to adapt to billion—a sizeable sum yet not to national treasuries, which nanc- socio-economic shi s and changes nearly enough to fund implementa- es national development plans and in the scal environment in which tion of the SDGs. Moreover, these in turn works towards reducing they operate. revenues would likely not accrue to poverty. Goal 16: Promote peace, justice and those countries most in need of Goal 8: Decent work and economic strong institutions development funds. growth Rather, the most important source of revenue for funding the SDGs is economic growth, and here tax policy can play a pivotal role. Here are ve Global Goals where eective tax policies can facilitate economic growth and fuel progress towards sustainable development:

Goal 1: No poverty Increasing predictability and trans- Tax policies that promote invest- parency are o en the most eective

ment and innovation, particularly ways for tax administrations to in developing economies, go a long encourage revenue growth. Tax way towards attracting foreign systems that are clear and reliable direct investment (FDI). Research encourage investment which, as Eective tax policies should ensure shows that FDI plays an o en seen above, fuels productivity and that prots are taxed where critical role in driving productivity growth. e experience of ‘coopera- economic value created and that and output growth in both devel- tive compliance’ systems is proof of corporate income tax is levied oped and developing economies. As how eective a relationship of trust according to where economic activ- companies invest in capital goods between business and governments ity takes place. Predictable tax rules and machinery, for example, can be. January - March 2018 16 News Bulletin ICC HQs News

Rather than adopt adversarial strate- Goal 17: Partnership for the Global the economic growth that any gies, governments should agree on Goals solutions to these global challenges acceptable forms of tax competition will necessitate. As a driver of and avoid labelling business as ‘tax economic growth and employment avoiders’ when using legislated incen- and an important source of invest- tives. In return, businesses should ment, business has an integral role adhere to rules and principles agreed to play in strengthening domestic upon by and between countries. resource mobilization. Just as the global challenges facing To achieve a balanced and ecient us from a rapidly growing popula- Collaborative and meaningful tax system that provides for the tion—from the strain on natural action by business is fundamental eective, accountable and transpar- resources to employment to achieving the SDGs and—as is ent institutions that the SDGs call needs—aect us all, all stakeholders the case with tax matters—this will for, greater cooperation between in society must play a role in only come through trusting governments and the business addressing them. Tax collection is partnerships between public and community is essential. an important tool in encouraging private actors. E-commerce can make trade more inclusive, but greater coordination is needed e rise of e-commerce holds huge many of these sales are international. platforms are more than ve times potential for inclusive growth and According to a recent report from more likely to export than those in development, but the absence of the United Nations Conference on the traditional economy. global rules and concerns of some Trade and Development, 7% of A recent Google video competition national border administrations business-to-consumer e-commerce taking place within the ICC-WTO could curb the gains for those who in 2015 crossed national borders, Small Business Champions initiative need them most. amounting to a total value of around challenged SMEs from around the US$189 billion. Over 1,500 stakeholders from across world to show how the Internet had the globe met at the rst ever Moreover, recent cross-border e-commerce confer- cross-border e-com- ence in Beijing, China from Febru- merce growth in many ary 9-10, 2018. e goals of the markets has been conference were to discuss recent nothing short of developments, challenges, and breathtaking. In China opportunities, as well as the alone last year, e-com- enormous potential of digital trade. merce exports surged 41.6% while imports Co-hosted by China Customs and increased by 116.4%. the World Customs Organization (WCO), the Global Cross-Border e emergence and rapid growth of allowed them to trade. e resulting E-commerce Conference featured cross-border e-commerce is all the entries, which can be viewed on remarks from key public and more exciting because of its poten- YouTube, speak volumes as how private sector voices, such as Yu tial to make world trade more inclu- digital technologies help entrepre- Guangzhou, Chinese Minister of sive. Traditionally, trading over a neurs connect with clients, promote the General Administration of distance has come with signicant their products and balance their Customs; and Jack Ma, Founder costs, limiting the ability of small- books. and Executive Chairman of the and medium-sized enterprises Alibaba Group. (SMEs) and companies in develop- However, as participants at the ing countries to benet. e Inter- Beijing conference made clear, a Changing the game net, however, has changed the number of factors are currently Worldwide e-commerce sales game. Data from eBay for instance limiting the positive potential of reached US$25.3 trillion in 2015 and shows that SMEs that use on-line cross-border e-commerce. January - March 2018 17 News Bulletin

Bangladesh Economy

Bangladesh eligible for UN ‘developing country’ status e UN Committee for Develop- according to the standard set by “e increase of GNI and develop- ment Policy (CPD) gave a letter Ecosoc, the UN’s Economic and ment of social sectors including announcing Bangladesh’s eligibility Social Council. health and education has made it easier for the committee to recom- mend for Bangladesh’s graduation,” said CDP Secretariat Chief Roland Mollerus.

CPD Expert Group Chairman Jose Antonio Okampo praised Bangla- desh for its’ human resource, export sector along with health and educa- tion sector. High Representative for Least Developed, Landlocked, Small Island States Fekitamoeloa Katoa ‘Utoikamanu said Bangladesh had created a strong foundation for development and poverty reduc- for graduation to the Bangladesh Bangladesh’s current GNI per tion. Permanent Ambassador to the UN capita is $1,610, according to the Diplomats from other countries Masud Bin Momen on March 16 Bangladesh Bureau of Statistics or also congratulated Bangladesh and evening in New York. is begins BBS. However, according to the its’ people praising the recent devel- the graduation process for Bangla- UN, Bangladesh’s GNI per capita is opment. Bangladesh government desh, which could receive ocial $1,274. e UN said in a 2018 ocials, including Finance Minister Developing Country status by report Bangladesh’s HAI is 73.2 and AMA Muhith are hopeful that if 2024. its EVI 25.2. “is has been made Bangladesh remains on track, According to the UN website, possible by strong development Bangladesh will have no problems Bangladesh met the requirements in strategy of Bangladesh led by Prime graduating in 2024. ough Devel- March, 2018. Bangladesh has been Minister Sheikh Hasina,” said oping Country status would on the UN Least Developed Coun- Masud Bin Momen. increase Bangladesh’s bargaining tries (LDC) list since 1975. power, the loss of LDC status also “We are moving forward towards comes with a loss in several Graduation depends upon meeting peace, prosperity and development economic supports and benets. eligibility criteria scores in Gross following our motto—nobody lags National Income (GNI) per capita, Economists say that the challenges behind. Digital Bangladesh is not the Human Assets Index (HAI) and can be met through proper only a slogan for us but our people the Economic Vulnerability (EVI) planning and implementation of are getting the benet out of it,” he Index and other country-specic policy. In July 2015 Bangladesh information. e scores required said. He said Bangladesh is trying to advanced from a lower income for graduation from the LDC gain the status of Developed coun- country to a lower-middle income category are a per capita GNI of try by 2041 and thanks the UN and country based on the per capita $1,230 or above, an HAI of 66 or other development partners for income categories provided by the above and an EVI of 32 or below, assisting the process. World Bank. January - March 2018 18 News Bulletin Bangladesh Economy BD among 5 top growth achievers among 45 LDCs in 2017: UNCTAD e United Nations Conference on Agenda for Sustainable Develop- is stands in contrast to gures for Trade and Development (UNCTAD) ment unless urgent action is taken. other developing countries (not has said only ve countries, includ- “e international community LDCs), all developing countries ing Bangladesh of the 45 LDCs, should strengthen its support to taken together and developed coun- achieved economic growth at 7 LDCs in line with the commitment tries, all of which, as groups, percent or higher in 2017. e four to leave no one behind,” Paul registered current account surpluses. other countries are Djibouti (+7pc), Akiwumi, Director of Unctad’s Projections for 2018 suggest that the Ethiopia (+8.5pc), Myanmar Division for Africa, (+7.2pc), and Nepal (+7.5pc) while Least Developed Bangladesh achieved +7.1pc growth Countries and in 2017. e analysis contends that Special Programmes, too many LDCs remain dependent said. “With the on primary commodity exports. global economic All other LDCs recorded current recovery remaining account decits of varying sizes, tepid, development ranging from less than one percent- partners face constr- age point of GDP – Bangladesh and aints in extending Nepal – to more than 25 percent in support to LDCs to the cases of Bhutan, Guinea, help them meet the Sustainable current account decits of the LDCs Liberia, Mozambique, and Tuvalu. Development Goals.” are expected to grow further, making worse possible balance-of-payments Resources sent by individuals to GDP growth rates will likely contin- weaknesses. LDCs as a group (remittances) ue to fall short not only of their totalled $36.9 billion in 2017, down 2002–2008 average, but also of their Only a handful of LDCs, according by 2.6 percent compared to the peak 2010–2014 levels, Akiwumi said. e to estimates by the International of $37.9 billion in 2016. analysis highlights that LDC growth Monetary Fund, recorded current account surpluses in 2017, including In absolute terms, the largest recipi- averaged just 5 percent in 2017 and two recipients of relatively large ents of remittances among LDCs will reach 5.4 percent in 2018 – amounts of aid – Afghanistan and included Bangladesh ($13.6 billion below the target of 7 percent growth South Sudan – as well as Eritrea and in 2016), Nepal ($6.6 billion), envisaged by target 1 of Sustainable Guinea Bissau. Special foreign aid Yemen ($3.4 billion), Haiti ($2.4 Development Goal 8 on promoting commitments for LDCs amounted billion), Senegal ($2 billion) and sustained, inclusive and sustainable to $43.2 billion, representing only an Uganda ($1 billion), according to economic growth. estimated 27 percent of net aid to all UNCTAD. While international prices for most developing countries. is suggests a 0.5 percent increase in aid in real Economic development in the primary commodity categories have world’s most-disadvantaged coun- terms year-on-year. trended upwards since late 2016, this tries – mostly in sub-Saharan Africa modest recovery barely made a dent is trend supports fears of a – is stalling against the background to the signicant drop experienced levelling-o of aid to LDCs in the of a lukewarm global recovery, since 2011, particularly in the cases wake of the global recession. e risking widening inequality, new analysis was presented to Unctad of crude petroleum and minerals, analysis from UNCTAD has member States at a meeting of its ores and metals. In 2017, the LDCs revealed. Data suggests that the 47 governing body in Geneva, Switzer- as a group were projected to register least developed countries (LDCs), a land, on 5 February. e LDCs will long-established category of nations a current account decit of $50 not achieve the Sustainable Develop- requiring special attention from the billion, the second-highest decit ment Goals unless they speed up international community, will fall posted so far, at least in nominal wholesale restructuring of their short of goals set out in the 2030 terms. economies, said the UNCTAD. January - March 2018 19 News Bulletin Bangladesh Economy Bangladesh ranked 34th in World Economic Forum index : ahead of India and Pakistan Bangladesh has been ranked 34th released on January 19, said that the growth and development, saying among 79 developing economies, index takes into account the "living reliance on GDP as a measure of ahead of neighbouring India (62) standards, environmental sustain- economic achievement is fuelling and Pakistan (47), in the inclusive ability and protection of future short-termism and inequality. development index, according to a generations from further indebted- China, the world’s second biggest ness". In South Asia, only Nepal IDI SCORES ON 1-7 SCALE economy a er the US, is ranked ranks ahead of Bangladesh at 22. SOURCE:WEF 26th in the World Economic Norway remains the world’s most Forum’s ‘Inclusive Growth and 4.15 3.98

3.79 inclusive advanced economy, while Development Report 2018’. Among 3.55

3.09 Lithuania again tops the list of advanced economies, Norway is emerging economies, the World followed by Ireland, Luxembourg, Economic Forum (WEF) said while Switzerland and Denmark in the NEPAL BANGLADESH SRI LANKA PAKISTAN INDIA releasing the yearly index before the top ve. And the top-ve most WEF report. World Economic start of its annual meeting in India. inclusive emerging economies are Forum’s ‘Inclusive Growth and It urged the leaders to urgently Lithuania, Hungary, Azerbaijan, Development Report 2018’, move to a new model of inclusive Latvia and Poland. Bangabandhu Chair inaugurated at AIT A Bangabandhu Chair on Sustain- Signing of Citation on the Bangab- “At a time when Asian countries are able Energy at the Asian Institute of andhu Chair Professor at AIT by transitioning and the demand for Technology (AIT) was formally the Guest of Honor H.E. Mr. Abul energy is soaring, we need to imple- inaugurated on 15 March 2018 Hassan Mahmood Ali, Minister of ment measures that take in account

following the signing of a Memoran- Foreign Aairs, Government of both sustainable development and dum of Understanding (MoU) Bangladesh. environmental preservation,” Dr. Subin remarked. between the Asian Institute of Tech- Dr. Subin Pinkayan, Chairperson of nology (AIT) and the Ministry of AIT Board of Trustees, described H.E. Nasrul Hamid, State Minister Foreign Aairs, Government of the occasion as a testimony to the for Power, Energy and Mineral Bangladesh. bond between Bangladesh and AIT. Resources of Bangladesh, stated that January - March 2018 20 News Bulletin Bangladesh Economy he was “humbled that the endow- endowment Chair by any country at Mahmud Hasan, Assistant Manager ment (of the Bangabandhu Chair) is AIT, and the rst PhD level Chair in Sylhet Gas Fields in Bangladesh, dedicated to advanced doctoral level named a er the Father of the Nation has been selected as the doctoral research on “Sustainable Smart of Bangladesh,” she said. irdly, it student who will work under the Energy Modelling for Bangladesh.” researches sustainable energy Bangabandhu Chair Professor. modeling for Bangladesh under a e Minister added that the Bangla- e lecture was followed by the Chair Professor who was a member desh government is actively pursu- signing of citation of Bangabandhu of the IPCC-2007 Nobel Peace Prize ing the target of a 15 per cent renew- Chair Professor by the Guest of winning panel, she added. able energy mix. Honor, Mr. Abul Hassan Mahmood Presenting an energy eciency case H.E. Abul Hassan Mahmood Ali, Ali, and the signing of Memoran- Foreign Minister of Bangladesh study from India, Prof. Joyashree dum of Understanding (MoU) by described the Chair, which is named Roy outlined the scenario of trans- Mr. Md. Mahbub-uz-Zaman, Secre- a er the Father of Bangladesh Sheikh formation of industrial process in tary, (Asian and Pacic), Ministry of Mujibur Rahman, as a “symbol of the the country. Foreign Aairs, Government of dreams and aspirations of Bangab- Delivering the vote of thanks, AIT Bangladesh, and AIT President Prof. andhu for a technology-drive ‘Golden President Prof. Worsak Kanok-Nu- Worsak Kanok-Nukulchai. A Bengal.’” He described the inaugura- kulchai expressed his appreciation to sapling of Bangladesh Dinajpur tion of the Chair as a “historic the Government of Bangladesh for Litchi was also planted by the moment in Bangladesh’s special endowing the Chair at AIT. Pointing visiting Foreign Minister at AIT. relations with ailand.” out that this is the rst Chair Profes- In a related event organized in the sor established by a partner govern- Ambassador of Bangladesh to evening at the Ministry of Foreign ment at AIT, he termed it as a ailand, H.E. Saida Muna Tasneem Aairs, the Foreign Ministers of testimony of the strong bond introduced the welcome message ailand, H.E. Mr. Don Pramudwi- between AIT and the Government of delivered by Executive Director of nai, and Bangladesh H.E. Mr. Abul Bangladesh. UN Environment, Erik Solheim. She Mahmood Ali jointly inaugurated mentioned three exceptional facts While Prof. Joyashree Roy of the Bangabandhu Chair and about the Bangabandhu Chair at Jadavpur University (India) has been unveiled a commemorative plaque at AIT. “is is the rst doctoral selected as Chair Professor; Mr. the Ministry of Foreign Aairs. Bangladesh steps into 4G era Bangladesh has entered an era of licences to the chief executive Posts, Telecommunications and digital connectivity as three mobile ocers of four mobile phone opera- Information Technology Minister phone operators rolled out the 4G tors – Grameenphone, Robi, Mustafa Jabbar said the govern- mobile phone services in the country Banglalink and Teletalk — at a ment’s services will now reach function organised by the BTRC and people’s doorsteps through mobile Association of Mobile Telecom phones more easily. Urging the Operators of Bangladesh (AMTOB) mobile phone operators to improve at Dhaka Club. their services so that people can be e operators also received the tech beneted with the 4G services, he neutrality and radio communication directed the BTRC to look into apparatus licences at the function. A whether charging Tk110 for the 4G message from ICT Adviser to the SIM replacement is logical. Prime Minister Sajeeb Ahmed e BTRC chairman described the Wazed Joy was read out by BTRC on 19 February. ey launched the launching of 4G services a ground- Director General (Spectrum) Brig 4G services in Dhaka, Chittagong, breaking step, saying the internet Gen Nasim Parvez. e mobile Khulna and Sylhet cities soon a er speed will get a big boost. Earlier on phone companies will launch the getting the licences from Bangladesh February 13, BTRC held the 4G high-speed internet services in other Telecommunication Regulatory spectrum auction for allocating new major cities and towns gradually. Commission (BTRC). frequencies to mobile operators. e BTRC Chairman Shahjahan Terming the launching of the 4G government earned Tk5,268.51 Mahmood ocially handed over the services a milestone for the country, crore in revenue. January - March 2018 21 News Bulletin Bangladesh Economy

Banglalink took 10.6 MHz spectrum spectrum as it and Airtel have from three operators: GP, Banglalink from dierent two bands – 2100 and merged into one operator while and Robi, and VAT of total 1800, with a price of Tk2,558 crore Teletalk has already enough Tk5,289.08 crore. Teletalk, Citycell, Banglalink, Grameenphone and while Grameenphone took 5MHz spectrum to launch the 4G services. Robi participated in the auction. from 1800 band with a price of e government also earned another Citycell was not allowed as it had lost Tk1,284 crore. Robi did not buy any Tk850.4 crore as tech neutrality fees the operator licence. IMF Calls for more banking sector vigilance e International Monetary Fund on broadening the tax base, imple- accelerate beyond the target a er a on March 9 called for strengthening menting the deferred VAT reform recent recovery in food ination, internal controls, compliance and and revising direct taxes. Kihara said. risk management to avoid nancial "Further improvements in tax "Macroprudential policies should scams in the banking sector. Judicial administration will increase revenue, aim to keep the growth of private reforms should be implemented to reduce compliance costs and improve credit in line with the authorities' accelerate loan recovery by reducing objective.Fiscal policy should main- non-performing loans, said Daisaku tain the stability of the public debt Kihara, who led an IMF team in ratio while strengthening the Dhaka for a 12-day visit. management of public investments. e team met with the Minister of "He also spoke of the Rohingya Finance, the Governor of Bangla- refugee crisis. "e crisis could add desh Bank, the Finance Secretary, pressure on spending and continued the President of the National Reve- nancial support from donors nue Council as well as representa- would be essential." tives of the banking and commercial Bangladesh has made remarkable sectors, trade unions, groups think progress in achieving inclusive tanks and development partners. growth, which has led to a substan- Mobilizing long-term capital for tial decline in poverty, but challenges growth will depend on policies to transparency." Bangladesh's tax-to- remain, according to the IMF. e make the nancial sector more GDP ratio is lower than that of many importance of nancial inclusion in ecient, he said at a press brieng countries, but the gap will decrease if society is commendable and the held at the central bank's headquar- the new VAT law is implemented. authorities should continue to ters in Dhaka. Kihara said Bangladesh faces several strengthen the legal and regulatory challenges in supporting the impres- "is will require better regulation framework of the banking sector and sive economic performance of recent and supervision of the banking implement the next nancial inclu- sector, especially for public commer- years. Macroeconomic performance sion strategy. cial banks." Asked about the recent is expected to remain robust over the e increase in education spending nancial scams discovered by both coming year and ination remains and the improvement of rural infra- private banks and state-owned broadly stable, said the IMF team structure should continue to banks, the IMF asked banks to leader, adding that foreign exchange strengthen the current low rates of oversee corporate governance to reserves remain adequate. female activity by improving avoid scams. Ongoing eorts to employment prospects, reducing increase revenue collection are Eorts to harness the country's time spent on domestic chores and needed to provide the scal space growth potential while ensuring increasing safety. much needed to stimulate public economic and nancial stability will investment and social spending. require scal space for investments e IMF is ready to support the in infrastructure and social safety "Public investment in infrastructure government's reform eorts through nets, making the nancial sector is particularly important to improve policy advice and capacity building, the business environment, attract more ecient, improving the including on monetary and scal foreign direct investment and diver- business climate and strengthening policies, nancial sector supervision sify exports," Kihara said. e IMF governance. Monetary policy should and regulation, and macroeconomic ocial said that the focus should be be vigilant so that ination does not statistics, according to Kihara. January - March 2018 22 News Bulletin Bangladesh Economy Bangladesh must grow at 10 percent annually for 20 years : ADB Chief Bangladesh must experience e ADB president also spoke about Asked whether the multilateral economic growth of at least 10% for Bangladesh's income, which lender would nance Padma's the next two decades if it wants to accounts for about 10 percent of second bridge and other megaproj- become a developed country by GDP. He said that he knew very well ects, he said: "If we receive such a 2041, said Asian Development Bank request, we can consider it." e President Takehiko Nakao. "is is Manila-based lender has already not impossible, but not so easy," he increased its lending in Bangladesh said at a press conference held at and last year it disbursed $ 2.1 ADB Resident Mission in Dhaka on billion. "We are ready to increase 28 February. lending if there is demand," he said, Based on Bangladesh's current GDP while citing the bank's recent growth rate of 7%, per capita income tripling of equity to $ 50 billion as evidence of its ability to higher loan. would reach $ 6,000 a er 20 years, that the implementation of the new which is half the threshold of an VAT Act had been delayed twice e ADB has set a target of providing advanced economy. "Unless Bangla- because of the resistance of the $ 8 billion in aid to Bangladesh for desh makes serious eorts like what business community. "e income is the 2016-2020 period, up 60% from China did in the 1990s and 2000s, not to hurt people, it is to support the previous 5 years. In response to and it has grown 10 percent, it will the poor," he said, adding that he another question about Bangladesh's not be accessible," Nakao said. supported the government's withdrawal from the least developed China has grown by 10% or more for decision to a new Value Added Tax countries and its impact on ADB about two decades and its per capita Act to increase revenue-based loan conditions, he said: "Bangladesh income now stands at $ 8,000. revenues. is already a lower-middle-income country, but the ADB continues to Higher economic growth depends Although VAT is like a tax on grant concessional loans. " on infrastructure investment, good consumption, it is a very broad tax. investment climate, foreign direct "I support the government's initia- On growing inequality, he said that it investment, consistent policies of tive to increase revenues through was a problem for all and that the successive governments and use VAT," he said. On the much talked respective countries had to pay atten- geographical advantages in India, about Rohingya refugees, he praised tion at an early stage before it became China and Southeast Asia. Bangladesh for its full support of the a big problem. "Equality is the main basis for sustainable growth". Nakao, who is also Japan's former displaced community. "e govern- deputy nance minister for interna- ment is so serious about the standard e President of the ADB empha- tional aairs, said FDI had played a of living of these refugees and is sized the need for policy coherence very important role in China's rapid trying to put them on an island.e and sustainable growth. "I hope that economic development. e data ADB is ready to support the country this country will pursue stable show that FDI has accounted for 2 to if there is any demand to solve this policies in terms of macroeconomics 3% of China's GDP for many years. problem. " e ADB has not yet and investment in infrastructure, "But that's only 0.6% in Bangladesh," received a concrete proposal from regardless of the ruling leaders and said Nakao, who heads the ADB for Bangladesh to nance the resettle- the ruling party of the country” he the second term. ment of refugees. added. ADB approved $360m loan to Bangladesh Railway e Asian Development Bank broad gauge locomotives, 125 tion when the locomotives are (ADB) has approved a $360m loan luggage vans and 1,000 wagons for standing idle. e amount is also to Bangladesh Railway, which will freight trains. expected to be used to refurbish be used to purchase new rolling ADB noted that the new rolling maintenance facilities and establish stock and strengthen the country’s stock will introduce auxiliary power training programmes for drivers, as railway network. e loan will units (APU) to Bangladesh Railway well as run the network’s enter- nance the procurement of 40 in a bid to reduce diesel consump- prise-wide IT system. January - March 2018 23 News Bulletin Bangladesh Economy

"e ADB Railway Rolling Stock e market share of railways as an Bangladesh potentially oer a cheap- Operations Improvement Project alternative method of transport has er, safer, and more fuel-ecient will boost the operational perfor- recently dropped in Bangladesh means of transport of goods and mance of Bangladesh Railway by due to inadequate investment in passengers than roads, but have been held back by lack of investment and aging and unreliable rolling stock. “e ADB Railway Rolling Stock Operations Improvement Project will boost the operational perfor- mance of Bangladesh Railway by introducing new technology, equip- ment and processes that will be cleaner and more ecient, cutting carbon dioxide emissions.”

e government has also placed additional emphasis on railway development as part of its seventh infrastructure and rolling stock. e introducing new technology, equip- ve-year plan for 2016-2020, which majority of the rolling stock in the ment and processes." ese initia- aims to improve the railway market country is noted to be 30 years old tives require a total combined share to 15% in freight transport and the maintenance facilities have investment of $453.37m, including and 10% in passenger movements not been suciently overhauled $93.37m that is set to be provided by 2020. ADB has provided four over time. by the government. All the outlined loans to Bangladesh for railway projects are slated to be completed ADB senior transport specialist development since 2006, amount- around the end of June 2022. Tsuneyuki Sakai said: “Railways in ing to a total sum of $2.81bn.

WB projects 6.4pc growth for current scal World Bank has estimated that strengthening exports,” according to According to the WB, the main Bangladesh economy will grow by the report. risks to the outlook for Bangladesh 6.40 per cent in the current scal are scal slippages and setbacks to year (FY18). e multilateral reforms to resolve corporate and lending agency came up with the nancial sector balance sheet growth projection in its Global deterioration. It observed that Economic Prospects released on slippages relating to upcoming January 10. It also projected that elections and weak tax revenues annual growth rate of Bangladesh could derail scal consolidation economy would increase to 6.70 per eorts. cent in the next scal year. Corporate debt overhangs and high e bank, however, made it clear “Low interest rates and improved levels of nonperforming loans have that it counted the period of July infrastructure are expected to li been long-standing concerns for 2017 to June 2018 as the calendar investment (in Bangladesh),” it Bangladesh and India in the South year 2017. “(Economic) activity in added. “Remittances are expected Asian region. e WB also Bangladesh will grow at an average to rebound as the growth rms in mentioned that a protracted of 6.7 per cent a year over Gulf Cooperation Council (GCC) slowdown in remittance inows FY2018-2020, beneting from countries and support private would weigh on domestic consump- strong domestic demand and consumption.” tion in Bangladesh and Sri Lanka. January - March 2018 24 News Bulletin Bangladesh Economy WB to provide $300 m for improvement of cash transfer programs e World Bank on February 1 try Director for Bangladesh, Bhutan, “Since 2016, the Department of approved a $300 million nancing to and Nepal. Social Services has been digitizing improve the transparency and “e World Bank is helping the program records and piloting eciency of major cash transfer government modernize its safety net digital payments to program bene- programs in Bangladesh. is will programs by improving pro-poor ciaries. e project will scale up benet about 5 million of the coun- targeting, streamlining administrative these eorts,” said Yoonyoung Cho, try’s poorest and most vulnerable systems, and addressing program Task Team Leader, World Bank. people. e Cash Transfer Modern- fragmentations. is will help reach “ese actions are in line with the ization Project will help the Depart- people in need and use public resourc- institutional enhancements ment of Social Services under the es more eectively.” e project will outlined in the National Social Ministry of Social Welfare modern- help upgrade the Department’s Security Strategy, 2015. is will ize some of the country’s largest cash management information systems. help place the Ministry of Social transfer programs targeted at the Welfare at the forefront of social poor elderly persons, widows and To identify potential recipients of protection service delivery, with people with disabilities. cash transfers, it will integrate the Department’s management infor- priority to the poorest and most e project aims to shi the operat- mation system with the Bangladesh vulnerable members of society.” ing processes of these programs Bureau of Statistics’ National House- With this project, the World Bank’s from a manual, paper-based system hold Database. For more secure and to an automated, integrated, and total commitment in the social electronically managed system. is accessible payments to beneciaries, protection sector stands at over $1.3 will ensure greater eectiveness in the system will be linked to payment billion. e credit is from the Inter- the overall cash transfer service service providers. Using existing national Development Association delivery process. “Bangladesh has digital systems, it will further devel- (IDA), the World Bank’s conces- cut by half the number of people op an integrated social protection sional lending arm. e credit is living in extreme poverty. is is a service delivery system in the coun- interest-free and repayable in 38 remarkable achievement. Yet many try. e project will also help build years, including a 6-year grace people remain poor and vulnerable,” human resource capacity and period, and carry a service charge of said Qimiao Fan, World Bank Coun- improve citizen engagement. 0.75 percent. Summit Power International and Mitsubishi signed $3B LNG-to-power project deal Singapore-based infrastructure e integrated liqueed natural gas Mitsubishi’s LNG, and LNG-to- developer Summit Power Interna- (LNG) onshore terminal will have Power expertise, as well as under- tional (SPI) announced on March 13 regasication capacity of up to 1.5 standing the power needs of plans to build a $3 billion LNG- billion cubic feet per day (Bcf/d). Moheskhali and Bangladesh.” to-power plant with Mitsubishi, in Khan added the two groups are Bangladesh. e rms signed a well-positioned to uniquely benet memorandum of understanding (MoU) to develop the project at from opportunities arising from the Matarbari, Moheskhali, in the Bay of Bangladesh government’s move to Bengal, helping Bangladesh to meet raise LNG imports to meet the coun- its growing energy demand. try’s domestic natural gas shortfall and expand the country’s power Under the MoU, subsidiary Summit e project also includes two, 1,200- generation capacity. Bangladesh will Corp, group company Summit Hold- megawatt (MW) gas-red power require about 7 million tonnes of ings and the Japanese rms agreed to plants, transmission lines and equip- LNG by 2022 and similar volumes of develop an integrated liqueed ment to import LNG. “is MoU coal by 2024, Khan had said then. natural gas (LNG) onshore receiving will help SPI support Bangladesh’s terminal with regasication capacity fast-growing energy, power and Diamond Gas International is a of up to 1,500 million cubic feet per technology needs,” said SPI chair- wholly-owned LNG sales subsidiary day (mmcfd) at Matarbari, Moheskh- man Muhammed Khan. “It will be a that Mitsubishi Corp established in ali, in the Bay of Bengal. strategic t for SPI to leverage Singapore. January - March 2018 25 News Bulletin Bangladesh Economy

e Asian nation is estimated to Summit Power is the largest said. Summit Power is set in April to require about 7 million tonnes of independent power producer in become the rst Bangladeshi rm to LNG by 2022. e rms didn’t Bangladesh, representing about 21 list in the Singapore Exchange Ltd disclose a timeframe for project percent of the country's private (SGX), as it seeks to raise funds to development. power market last year, the company invest in assets across Asia. Chinese companies to construct additional three coal-based power plants Chinese companies are going to work, according to the State Minis- e China National Machinery construct three more coal-based ter for Power, Energy & Mineral Import and Export Corporation power plants in Bangladesh with a Resources. (CMC) along with North-West Power Generation Company Ltd (NWPGCL) of Bangladesh is constructing the power plant in Kalapara. Construction work of the power plant began in April 2016. irty-one percent of the work has been completed till December last year. e authorities are hopeful that a 660MW unit of the plant will be commissioned by April next year total capacity of 3,960 megawatts. Patuakhali Power Plant and another unit of the same capac- Two of the plants will be set up by e Ashuganj Power Station Compa- ity by October. Bangladesh-China joint venture ny Ltd, an agency of BPDB, entered A total of $1.6 billion will be invest- companies while another by a into a joint venture agreement with ed in the plant, with 20 percent consortium of China and Hong China Energy Engineering Corpora- equity and 80 percent loan nanc- Kong-based rms. e power tion Co Ltd (Energy China) in July ing. e Chinese Exim Bank will plants, with a capacity of 1,320MW 2017 to build the power plant. nance the project. China and each, will be built in Maheshkhali of According to planning ministry Bangladesh will share 50-50 equity Cox's Bazar, Kalapara of Patuakhali documents, formation of the joint in the project. and Mirsarai of Chittagong. venture company is underway. Mirsarai Power Plant Maheshkhali Power Plant e 1,320MW (2X660MW) super e 1,320-MW thermal power plant e cabinet on February 26 thermal power plant will be built in will be built in Chittagong's Mirsarai approved the dra of a joint venture Kalapara of Patuakhali, which will be upazila by a consortium of three agreement between Bangladesh the coal-based “power hub” of the country. companies who will operate as Power Development Board (BPDB) independent power producers. e e Power Division is scheduled to and China Huadian Hong Kong Co three companies are Hangzhou put a Tk 819.51 crore project propos- Ltd to form a joint venture compa- Jinjiang Group Co Ltd and Hang- al to the meeting of the Executive ny (50:50 share) for setting up a zhou Zhengcai Holding Group Co Committee of the National Econom- Ltd of China and Jindun Energy 1,320-MW thermal power plant in ic Council (Ecnec) today for acquisi- Maheshkhali. It also gave the tion, development and conservation Equipment (Hong Kong) Ltd. go-ahead to the related Memoran- of land for the power plant, said A dra agreement, which will be dum of Association and Article of planning ministry sources. e signed between the Power Division Association of the joint venture project is expected to be completed and the consortium, will be placed company. within December next year, accord- before the meeting of the Cabinet ing to ministry documents. Committee on Purchase on 28 Following the cabinet's approval, a Nasrul said the proposed power February for approval, said Power joint venture company would be plant projects in Maheshkhali and Division sources. e power plant formed and a feasibility study for the Patuakhali would be implemented project would be implemented by project would be conducted which the way a joint venture company was private sector operators and the might take three to four months. e implementing 1,320MW power government would buy electricity nancing issues have to be settled plant in Kalapara near Payra Sea from the consortium. before starting the construction Port in Patuakhali. Source :e Daily Star January - March 2018 26 News Bulletin Bangladesh Economy 2 new private power plants at Mirsharai and Baghabari e government may allow two new unit for a ve-year period from the purchase power from it considering private power plants having a Baghabari plant. It may have to the demand for electricity in the combined generation capacity of spend Tk 13,920 crore over the district. 1,520 megawatts and extend the contract with a 34.50MW unit for three years. e new units are coal-red plant at Mirsharai in Chittagong having the capacity to generate 1320MW of power, and high-speed diesel-red plant at Baghabari in Sirajganj with 200MW generation capacity. According to sources, state-run Bangladesh Power Development period to purchase power from the e Board purchases per unit of Board has plans to purchase plant. Paramount BTrac Energy electricity from the plant at 4.0131 electricity at Tk 6.5199 per unit Consortium will implement the US cents or Tk 3.2105 and may pay from the Mirsharai plant for a project at PDB site at Baghabari the sponsors Tk 232.92 crore over period of 25 years. e Board may under Special Power and Energy the extended three-year period. require spending Tk 150,000 crore Enhancement Act. According to the Power Division, over the period for the electricity the demand for electricity increas- e sponsors earlier asked for from the plant to be implemented es 10-14 percent per year. e 25.6700 US cents for per unit by the Consortium of Hangzhou generation capacity has so far electricity and BPDB agreed to pay Jinjiang Group Co Ltd, Hangzhou- increased to 16,046MW and the 25.3800 cents or Tk 19.9639. e Zhengcai Holding Group Company government wants to raise the Venture Energy Resources-spon- Ltd and Jindun Energy Equipment capacity to 24,000MW within sored plant in Bhola is in operation (Hong Kong) Ltd. 2021. since July 12, 2009. e contract Under another plan, the PDB may tenure of the plant expired on July e government has plans to ensure purchase electricity at Tk 19.9639 a 11, 2016 but BPDB has continued to electricity for all by 2018-19. AIIB approved $60m for 220MW plant in Bhola e Asian Infrastructure Investment Bhola. e total project cost is $271 e Bhola Independent Power Bank (AIIB) has approved a loan of million. Islamic Development Bank Producer (IPP) greeneld power $60 million to install a 220 MW and local Infrastructure Develop- plant will be developed by Shapoorji Pallonji Infrastructure Capital company through NutanBidyut (Bangladesh), which is a special-pur- pose vehicle incorporated in Bangla- desh for the sole purpose of develop- ing the project. “We’re investing in this project because it will be one of the most ecient power plants delivering low-cost power in Bangladesh,” said AIIB Director General, Dong ik Lee. “is investment will also combined cycle power plant in the ment Company Limited will be help mobilize private capital and country’s largest island-district nancing rest of the project cost. provide critical long-term nancing January - March 2018 27 News Bulletin Bangladesh Economy

that is not readily available in year. e combined cycle power According to AIIB sources, the $60 Bangladesh for vital infrastructure plant is expected to be operational million loan for Bhola IPP will take projects.” from December 2019. According to AIIB’s total loan portfolio in Bangla- According to the sources from AIIB, Dong ik Lee, it will be one of the most desh to $285 million, which is 6.6 the construction of the Bhola IPP ecient power plants delivering percent of the total AIIB investment began in the last quarter of the last low-cost electricity in Bangladesh. portfolio. Deal signed with Desh Energy to buy electricity e government on January 4 signed Annisul Huq. e company has been projects in August last to bring them a power purchase agreement (PPA) doing business in the power sector into operation within the next 6-9 with Desh Energy to buy electricity for the last 6-7 years and it has two months on an urgent basis. Now it is from 200 MW Chandpur Power more running power plants. signing the formal PPP with the Plant to be set up within the next ve companies. months. As per the contract, Desh Annisul’s son Navidul Huq who is State Minister for Power and Energy Energy will start commercial opera- now the managing director of the Nasrul Hamid who was the chief tion of the plant from May 9 this company signed the contract on guest at the contract signing ceremo- year. behalf of Desh Energy. e Chandpur ny at Bidyut Bhaban in the city said the government had to undertake the fast-track projects to cope up with growing demand for electricity. “e electricity demand is growing at 3000 MW per year which was earlier predicted to be 1000 MW,” he told the function. Describing the project as his father’s State-owned Power Development 200 MW project has been one of the dream, Navidul Huq said his compa- Board (PDB) will purchase electrici- 10 power projects undertaken by the ny is committed to implement it as ty from the furnace oil-red plant at government as fast-track schemes to per the schedule. “Despite my father’s 10.65 US Cents (equivalent to Tk add some 1,800 MW electricity to death, we continue our eorts to 8.3772) per kilowatt hour (each unit) the national grid before the next implement the project as per the for the next 15 years. general election likely to be held at given timeframe,” he said. Power the end of the current year. Desh Energy is a private power Secretary Dr Ahmad Kaikaus and company owned by late Dhaka e government issued Letters of PDB Chairman Khaled Mahmood North City Corporation Mayor Intent (LoI) to the sponsors of the also spoke on the occasion. Electricity trade win-win for India and Bangladesh: Report e import of electricity from India of economic cooperation, thereby option for both countries," the is an economic option for Bangla- improving political relations. report says. e report was desh as it is cheaper than all other published at a workshop organized options for the country facing by the Bangladesh Enterprise limited choices, according to a new Institute at a city Hotel in Dhaka on report. e report titled "Economic 27 February. Benets of the Electricity Trade Between Bangladesh and India" e report was prepared by a indicates that India and Bangladesh Delhi-based research group, IRADe have identied energy and transpor- (Integrated Research and Action for tation infrastructure as potential "is study conrms the fact that Development) in the framework of areas for development. improvement trading electricity is a win-win the South Asia Regional Energy January - March 2018 28 News Bulletin Bangladesh Economy

Integration Initiative project (SARI / million lakh. Banks can disburse Tk real time without any manual EI) supported by USAID. 2 lakh in SME loans to an e-KYC intervention. e digitally signed account holder. e e-KYC will e-KYC data will be machine-read- e study used three scenarios to eventually eliminate the need for able, meaning that the service quantify the potential of the electric- paper-based document manage- ity trade and the macroeconomic provider can store them directly as a ment. benets for both countries. ey can customer record in their database for also invest in savings certicates and e service will be fully automated service and verication purposes, other government securities worth 5 and e-KYC data will be provided in and so on. New sources of funds needed for power projects: study Bangladesh needs to explore various sector for another ve to seven years. equity.” e report called for the sources of nancing beyond the “If we produce electricity at lower formation of specialised nancial existing ones as the country would cost, the subsidy will decrease,” he institutions to cater to the power require $35 billion worth of invest- added. e government plans to sector's specic needs. ment in the power sector by 2041, increase the installed power genera- Given the investment requirement according to a new study report. e tion capacity to 24,000 megawatts by in the power sector, private partici- current global nancial market 2021, about 8,000km of new trans- pation will be crucial, according to provides an opportunity to consider mission lines and 120,000km of the report. e report said the work- many options for nancing, which distribution lines. force's skills upgrade and capacity can be explored in the context of Bangladesh, according to the report “Transforming the Power Sector in Bangladesh”. International accounting rm Price- waterhouseCoopers and the Bangla- desh Independent Power Producers Association jointly prepared the report, which was launched at a programme at the capital's Pan Pacic Sonargaon hotel on March ere is a need to develop a more building are keys to sustaining the 18. Speaking at the programme, ecient, transparent, deregulated growth of the power sector in State Minister for Energy Nasrul and competitive power market for Bangladesh. is is in addition to Hamid said the government plans to the supply of reliable and cheap new generation sources, a changing dra a guideline to involve the power, according to the report. e generation mix and increased opera- private sector in the distribution and report suggested a number of options tional eciency. transmission of power. that Bangladesh could use to attract ere is a need for robust govern- “ough the private sector participa- funds from external sources. e ment policies, increased private tion in transmission and distribution issue of local currency denominated sector participation, alternate sourc- could bring investment and better bonds in overseas markets can be a es of funding, incentivising adoption service, a sudden switch from the debt nancing option as well as of clean energy sources and greater public sector to the private sector is various green funds. use of new age technologies, it said. M Masrur Reaz, senior economist not an easy task.” Most power gener- e report also said the listing of and programme manager of the ation now comes from the private Bangladesh's protable public International Finance Corporation; sector. “But in the distribution and power utilities in overseas markets Abdul Wadud, managing director of transition, we are venturing how to can also be looked at. “Strategic Summit Power; and Md Shabbir go private.” divestment of the government's Ahmed, rst secretary for tax policy Hamid also said the government stake in the public power utilities at the National Board of Revenue, would provide the subsidy to the can be explored as an option to raise also spoke. January - March 2018 29 News Bulletin Bangladesh Economy Tk 1,683cr project to transform rail connectivity with India e government is converting nanced by the Indian Credit Line public enterprise Sadharan Bima about 67 kilometers of double gauge (LOC) so that trade between the and the company Jiban Bima. From railway for 1,683 crores of Tk to two countries also facilitates India's the total cost of the project, the World Bank will provide 5,000 crores of Tk.

Since its creation in 2011, IDRA has neither the human and nan- cial resources nor the indepen- dence necessary to carry out its activities eectively to achieve the objectives, according to the Bank's document World. e main objec- tive of the project is to equip IDRA to build and put into practice a modern and professional regulato- ry and supervisory system, he added. ensure rail transit to India, Nepal wish to transit through Bangladesh and Bhutan. increase trade between for the transshipment of goods, said Ecnec approved another Tk 819.51 countries. e project, which India a senior ocial, Ministry of crore project for the acquisition, would nance 81% of the cost, was Finance. development and conservation of given the green light on February 27 land for the establishment of the Ecnec also approved a Tk 632 ridge at the meeting of the Executive 1.320 megawatt coal-red power project for the necessary upgrade of Committee of the National the insurance regulator in order to plant at Kalapara in Patuakhali. e Economic Council. develop the Bangladesh insurance Ashuganj Power Station Company, Bangladesh and India have focused sector. "e insurance sector could an agency of Bangladesh's Energy on railroad communication not keep pace with economic Development Board, entered into a between countries, according to the growth," Kamal said. e project joint venture agreement with China proposal of the Ministry of will allow the insurance industry to Energy Engineering Corporation Planning. e Indian side has a contribute more to the economy as last July for the construction of the large-gauge railway line, while the its supervisory power increases. power plant. Bangladeshi one is the gauge, said "Insurance companies are more Minister of the Plan AHM Mustafa interested in taking the bonus, but e creation of the joint venture is Kamal to reporters a er the meet- not so interested in responding to underway, according to documents ing. If Bangladesh's rails are requests," he said. At present, there from the Ministry of Planning. e converted into wide-track trains are 78 insurance companies. 1,320 MW (2 x 660 MW) thermal can move between the two coun- superpower will be built in Kalapa- From the cost of the project, Tk 91 tries, he added. ra, which will be the country's crore would go to the construction coal-based energy hub. e project By converting the Parbatipur of IT infrastructure, Tk 79 crore for railway to Kaunia to Rangpur in automation, and about Tk 9 crore is expected to be completed next wide gauge, Bangladesh can estab- for the establishment of the learn- December, according to the docu- lish rail links with India, Nepal and ing center remote and implementa- ments. Another 1320 MW coal Bhutan by the Rohanpur-Singabad tion of IDRA's interactive portal. plant is under construction in railway and the Radhikapur-railway e second component of the Kalapara, near Payra seaport, link. Birol. e project will be project is the modernization of the Patuakhali. January - March 2018 30 News Bulletin Bangladesh Economy

e China National Company of in April 2016 and 31% of the work in A total of $ 1.6 billion will be invest- Import and Export of Machineryand December of last year was complet- ed in the factory, of which 20% will the North-West Power Generaion ed. e authorities hope that a 660 be equity and 80% of loans. Chinese Company of Bangladesh build the MW plant will be commissioned in Bank Exim will nance the project, Kalapara Power Station. Construc- April of next year and another of the with China and Bangladesh sharing tion work on the power plant began same capacity in October. 50-50 shares in the project. Korea extends $500m fund for infrastructure development e South Korean government will 2015. e previous arrangement south-south cooperation,” he said. provide about $500 million in facilitated EDCF loans of up to $350 Kazi Shoqul Azam stressed on concessional loans to Bangladesh in million between 2015 and 2017. accelerated implementation of the next three years to help imple- Recently, the governments also projects with foreign money to ment a number of important infra- signed an arrangement to facilitate fetch more funds and shorten the structure development projects. e the establishment of a representative large aid pipeline. “7 percent loan will come from Economic oce of Korea Eximbank, ERD growth is a good achievement, but it Development Cooperation Fund ocials said. “It is a signicant is not enough. We’ve to raise the (EDCF) of Korean government scaling up of Korea’s commitment investment level from the GDP’s 30 administered by Korea Eximbank. to Bangladesh. percent to 34 percent to achieve a 10 e two governments signed a percent growth,” he said. framework arrangement with regard Established in 1987, EDCF assists to the loan at a function at Economic developing countries by nancing Relations Division (ERD) in the infrastructure development for capital on 29 January. e frame- economic growth. rough EDCF work deal was signed by ERD Secre- loans Korea Eximbank has support- tary Kazi Shoqul Azam and Chief ed infrastructure development in Representative of EDCF Dhaka and Bangladesh Since 1993. EDCF loans also the Korean Ambassador to e nancing will make Bangladesh have been provided to more than 20 Dhaka Ahn Seong Doo. Under the the second largest recipient of projects in various economic arrangement, Bangladesh will be EDCF loans,” Ahn Seong Doo said. sectors such as water supply, power, able to receive EDCF loans up to He said Korea started as a poor transport and ICT. $500 million for the period country like Bangladesh a er its 2017-2020. Total commitment to Bangladesh independence in 1948, but it is now has now risen to over $1 billion, e fund will be utilised to nance known as a donor country. He making Bangladesh the second the country’s two important projects applauded Bangladesh’s socio-eco- largest EDCF recipient country. like construction of 2nd railway cum nomic development and assured EDCF loans to Bangladesh general- road bridge over the Karnaphuli that Korea will remain beside ly carry an interest rate between River and second phase of establish- Bangladesh to face challenges of 0.01 percent and 0.05 percent, with ment of 160 upazila ICT training attaining SDGs goals. a 40 year repayment period, includ- and resource centres for Education Referring to the Finance Minister (UITRCE) project, according to ing a grace period of 15 years. AMA Muhith, ERD secretary said ERD. Several other projects have Bangladesh should follow the exam- rough instruments such as also been identied for potential ple of Korea that made a remarkable concessional EDCF loans, Korean EDCF nance. progress even a er starting from an government aims to support devel- is framework arrangement economy similar to Bangladesh. oping countries like Bangladesh by replaces the previous arrangement “South Korea is a very good partner promoting the use of Korean exper- which was signed on November of Bangladesh in terms of tise and technologies. January - March 2018 31 News Bulletin Bangladesh Economy Bangladesh leads green apparel industry

Bangladesh is now in the leading Green Building Council (USGBC), cation. Around 30 Indian RMG position among the top performing while more than 280 factories are factories and 10-12 Sri Lankan environment-friendly readymade registered for LEED certication” garment factories also received the LEED certication from USGBC. He made the observation at a function at Bangladesh Garment Manufac- turers and Exporters Association (BGMEA) Bhaban in the city.

BGMEA, US Green Building Coun- cil (USGBC) and GBCI jointly organized the program titled: “LEED Green Factory Award” in recognition and celebration of Bangladesh RMG sector’s success in green industrialization.

A total of 13 best green building garment (RMG) industry across the Green Business Certication Inc. factories of Bangladesh were world, said a US certication (GBCI) managing director P honoured with “LEED Green Factory company recently. “e country has Gopalkrisna said. now 67 LEED (Leadership in Award” as recognition of their eorts Energy and Environmental Design) About 35-40 Indonesian apparel in sustainability by achieving LEED green factories certied by the US factories received the LEED certi- Platinum certication.

Government to set up ‘Textile Village’ in Tangail

Bangladesh government is going to is valued at Tk 219 crore. ose who for about 10,000 people while about set up a ‘Textile Village’ on 28 acres get the job of setting up the $14 million could be annually of land in Tangail Cotton Mills under composite mill will have to make an earned through exporting knit and Bangladesh Textile Mills Corpora- tion (BTMC) through a private-pub- lic partnership (PPP) initiative. Recently Ramisa group has proposed to develop the village at Mirzapur in Tangail with estimated cost of about Tk 1,200 crore. e cabinet committee on economic aairs recently approved Ramisa’s proposal as an unsolicited bidder. According to the ministry of textile and jute, PPP authority scrutinized Ramisa’s proposal and it has been sent from the cabinet committee on that basis. e prime minister annual payment to the BTMC for woven garments. Of the estimate Tk issued a directive for installing the latter being the landowner. 1200 crore cost, Ramisa also plans to modern machinery at the mills that Ramisa group said on their proposal, bring in foreign investors and take were closed down. e existing land the village would create employment bank loans. January - March 2018 32 News Bulletin Bangladesh Economy Top Vietnamese co to invest $100m in leather, footwear sector Leathergoods And Footwear Manu- Under the agreement, TBS Group - work towards common goals, facturers & Exporters Association member of LEFASO and one of the including closer cooperation of Bangladesh (LFMEAB) signed a top 5 footwear manufacturing and between the footwear industries in both countries.

During the signing ceremony, LFMEAB President and Managing Director of Picard Bangladesh Limited Mr. Md. Saiful Islam welcomed LEFASO delegation and commented that the Vietnam Memorandum of Understanding & export companies in Vietnam footwear industry has been growing Cooperation Agreement with -agreed to invest $100 million in signicantly in export markets and Vietnam Leather, Footwear and Bangladesh leather and footwear consistently maintained its position Handbag Association (LEFASO) on sector, which is likely to create as the second largest footwear March 5 at LFMEAB conference 10,000 new jobs. e MoU aims to room. e agreement was exchanged exporter globally. strengthen collaboration and devel- between LFMEAB and LEFASO at op mutually benecial relations LFMEAB President Mr. Md. Saiful Pan Pacic Sonargaon, Dhaka in the between LFMEAB and LEFASO. Islam and the Vice Chairman of presence of Mr. Tran Dai Quang, Both parties will facilitate joint LEFASO Mr. Diep anh Kiet, President of Vietnam and Mr. Tofail signed MOU for and on behalf Ahmed, Commerce Minister of activities, assistance in building the of LFMEAB and LEFASO Bangladesh, among others, said a cluster, sharing information and statement. knowledge. Both parties agreed to respectively. Shasha Denims to acquire 40pc stake of EOS Textiles Shasha Denims Limited (SDL) will producers in Bangladesh, raised Tk idated earnings per share (EPS) of acquire 40 per cent stake of EOS 1.75 billion through initial public Tk 1.27 for October-December, 2017 Textiles Mills Limited, said an oering (IPO) in 2014 by oating 50 as against Tk 1.44 for October- ocial disclosure on February 25. million ordinary shares. December, 2016. e shares are valued at approxi- In six months for July-December, mately Tk 480 million. e Shasha 2017, consolidated EPS was Tk 2.41 Denims in the disclosure said out of as against Tk 2.48 for July-Decem- Tk 480 million, Tk 300 million will ber, 2016. In 2017, the Shasha come from IPO fund, as per Denims disbursed 25 per cent cash approval by shareholders in the and 6.0 per cent stock dividend. e 20th annual general meeting company's paid-up capital is Tk 1.19 (AGM). e company has also informed a billion and authorised capital is Tk e company said remaining Tk 180 memorandum of understanding 2.25 billion, while the total number million will come from company's (MoU) signing ceremony was held of securities is 119.55 million. cash ow to acquire 40 per cent between Shasha Denims Ltd and e sponsor-directors own 46.52 shares of EOS Textiles Mills, a 100 EOS Textile Ltd at Westin Hotel at per cent stake in the company, per cent export-oriented textile Gulshan in Dhaka on 24 February. while institutional investors hold company established on 8th June, e EOS Textile Mills Limited is 14.23 per cent, foreign 4.28 per 1998 by Italian Investors. Shasha located at Plot # 1-6 & 17-22 DEPZ cent and general public 34.97 per Denims, a sister concern of Shasha (Exten), Ganak Bari at Savar. e cent as on January 31, 2018, the Group, one of the leading denim Shasha Denims has reported consol- DSE data shows. January - March 2018 33 News Bulletin Bangladesh Economy Meghna sets up eight new plants for $300m paper, our, chemicals, cement bre, need government support for that,” steel fabricate mills and a 40 mega- said Kamal, who set up his rst

watt power plant. Presently, Meghna factory -- a vegetable oil mill at has operations in fast-moving Meghnaghat -- in 1989. As a consumer goods, cement, commodi- non-traditional item, chemicals ties, chemicals, seed crushing, sh deserve export subsidy. “Once we and poultry feed, power generation, are on our feet we won't need the Local conglomerate Meghna Group salt, bottled water, banking and subsidy,” he said, adding that the of Industries has invested $300 some other industrial products. subsidy will help Bangladesh to cut million (about Tk 2,500 crore) to set down on its overwhelming export Last year, the group's turnover reliance on garment. Kamal also up eight new factories at its crossed the $2.5 billion-mark. With newly-built two economic zones at the new industrial units Meghna elaborated on the nancing of the Meghnaghat in Narayanganj. e not only wants to fortify its position new industries. new factories, which will take the in the local market but also the He said he has borrowed from group's total industrial units to 40, export markets. One of the new foreign sources for setting up the will create 3,500 jobs. “People's units is an extension of the plant to eight new industries, but a central buying capacity has been increasing produce chemicals such as hydro- bank's capping on interest rate for and we want to strengthen our gen peroxide, caustic soda and foreign borrowing o en acts as a market share,” said Mostafa Kamal, chlorine, which Meghna was the barrier. “Bangladesh Bank has chairman of the group, while rst to manufacture locally. e capped the interest rate at 5 percent explaining the rationale behind the expanded unit will allow Meghna to for foreign borrowing, but the rate is big investment. export the chemicals too. on a rising trend now. e rate

e new units, which will be inaugu- “We are exporting some chemical should be xed on the basis on the rated on March 31, are for: beverage, products on a limited scale and we London inter-bank oered rate that edible oil renery, tissue, pulp and want to increase our exports, but we uctuates depending on the January - March 2018 34 News Bulletin Bangladesh Economy demand.” LIBOR or London inter- last several years, when businesses brands -- Fresh, No 1 and Pure -- bank oered rate shot up to more have shied away from taking up have gone on to become house- than 2.22 percent on March 1 from new ventures, Meghna has contin hold names, and as per Meghna 1.45 percent on September last ued to put in money for establish- itself, one household out of year. ing new lines of businesses. every two in Bangladesh uses its products. Meghna has set up at least one Today, Meghna employs 25,000 factory every year since 2001. In the people. Its consumer goods Source : e Daily Star

UNDP and Unilever signed MoU to work together on SDGs United Nations Development and create a greater impact for community by providing means of Programme (UNDP) Bangladesh Bangladesh. e in-country livelihood. and Unilever Bangladesh have partnership will create scale and “rough 2030 Agenda for Sustain- leverage the unique capabilities of able Development, the world is dierent stakeholders to tackle global challenges. e activities going to embrace a transformative will be focused on convening journey, in which Private sector is relevant stakeholders to support one of the main partners. is MoU private sector engagement, chan- will inspire other private compa- nelizing capital towards creating nies to join us in achieving all the impact through innovative models targets by 2030” said UNDP Coun- signed a Memorandum of Under- of engagement and generating try Director, Sudipto Mukherjee. standing (MoU) for joint collabora- data from collaboration for policy tions toward achieving the Sustain- “Unilever’s commitment to advocacy. able Development Goals (SDGs). Sustainable Development Goals is e MoU was signed by Sudipto rough this partnership Unilever well recognized across the world. Mukerjee, the Country Director of Bangladesh and UNDP will also rough Unilever Sustainable UNDP, Bangladesh and Kedar Lele, co-create a platform to invite ideas Living Plan and with the nature, CEO & Managing Director of on how to ensure safe drinking scale and reach of our business we Unilever Bangladesh in presence of water for the people of Bangladesh contribute to Global Goals. We are Zahidul -Islam Malita, National and create awareness among the delighted to bring that partnership Finance Director of Unilever disadvantaged people through its to Bangladesh by committing Bangladesh, Shaila Khan, Assistant purpose led brand PureIt. At the ourselves to work together with Country Director, UNDP Bangla- same time, Unilever will support UNDP’s agenda to create a desh and other senior ocials. various projects of UNDP to create positive impact for the local rough this partnership, Unilever employment opportunity for communities” said Unilever and UNDP pledge to serve Sustain- women and also enable small Bangladesh’s CEO and Managing able Development Goals together entrepreneurs in the disadvantaged Director, Kedar Lele.

UN and Bangladesh seek $950m fund for Rohingya refugees UN agencies and Bangladesh refugees might take more time, e Rohingya camps are concen- government have assessed the need while monsoon season will soon trated in southern part of the coun- for $950 million fund to run the arrive in Bangladesh putting nearly try that records the highest rainfall. relief operations in Rohingya 100,000 Rohingya refugees at risk e rains usually begin in April and camps of Cox’s Bazar for another of oods and landslide, according fall heaviest in July, according to the 10 months. e move comes amid to computer modeling of the Bangladesh Meteorological Depart- concerns that repatriation of UNHCR. ment. e biggest makeshi refugee January - March 2018 35 News Bulletin Bangladesh Economy

camps of Kutupalong and Balukhali area. Around 24,000 refugees from e UNHCR nds lack of available could have up to one-third of their 400 families have been shi ed to the land as a big constraint in refugee land ooded during monsoon new location who were extremely resettlement and is therefore now season, leaving more than 85,000 focusing on improving circumstanc- refugees homeless, according to the es inside the settlements, like raising UNHCR. Another 23,000 refugees bridges, reinforcing steps with live on slopes at risk of landslide. sandbags, improving drainage However, Rohingya refugees living system and strengthening the retain- in high-risk areas are being relocated ing walls. However, the UNHCR to safer zones. An additional 500 feels more land is required to acres of land have been allocated for relocate the refugees. “is land (500 the resettlement of 100,000 refugees vulnerable to mudslide. Gradually, acres), due to its topography, is only who are at a great risk of mudslide in we will shi the rest of the 76,000 likely to be able to accommodate the upcoming monsoon season. “We refugees as well. We expect to around 50,000 people. We estimate have already built quite a number of complete the process in the next two many more would need relocation,” new sheds in the newly allocated months,” said Kalam. says Caroline. Bangladesh has second-worst roads in Asia Roads in Bangladesh are among the Forum, very few Asian countries ranked 51, ahead of ailand and worst in Asia, according to the have the best road infrastructure. Pakistan at 60 and 77 respectively. Global Competitiveness Index Singapore is ranked at the top 118 2017-2018 released by the World 113 in Asia and second globally in 106 109 Economic Forum. Data LEADS/ terms of road infrastructure 93 ANN recently prepared an info 89 91 in the country. It is followed graph based on the index. Accord- 80 by Japan and Taiwan which ing to the graph, prepared in the have equally well maintained scales of extensiveness and condi- roads ranked 5 and 11 respec- tion of road infrastructure, Singa- BHUTAN VIETNAM LAOS CAMBODIA PHILIPPINES MONGOLIA BANGLADESH NEPAL tively. South Korea and Source: World Economic Furam 2017 pore has the best road infrastructure Malaysia ranked 14 and 20 respec- Bhutan ranked 80 needs to develop alongside Japan and Taiwan. Of the tively also gure in the countries the road infrastructure by leaps and countries considered, Bangladesh with best roads in Asia. bounds. It is followed by Vietnam ranked at 113 among the Asian and Laos that have also not invested countries, only followed by Nepal China is ranked 39 in the world. It much in developing road infrastruc- that ranked worst because of the has good roads owing to the rising ture to make travelling easy around lack of resources and hilly terrain--a economy and growing development. the country. major barrier to development. Road China has the longest highway in the infrastructure is the marker of a world stretching 85,000 kilo metres. Cambodia ranked 93 has sporadic country’s development and is signif- Brunei and Sri Lanka rank better road development in both rural and icant for safety and satisfaction of than other south Asian countries. urban areas. Philippines’ roads are the citizens. According to the e condition of Indian roads in less developed compared to other opinion survey by World Economic getting better with the country East Asian countries. EIU democracy index : Bangladesh slips 8 notches to 92 Bangladesh's score on the state of 92nd with a score of 5.43 out of 10 in e EIU's Democracy Index democracy has dropped in 2017 Democracy Index 2017 while it provides a snapshot of the state of compared to the one in 2016 result- ranked 84th with a score of 5.73 in democracy worldwide for 165 ing in eight notches down, UNB 2016. Meanwhile, Bangladesh has independent states and two territo- reports quoting the Economist ranked 49th with a score of 7 in press ries. is covers almost the entire Intelligence Unit's (EIU) Democracy freedom as its media is described as population of the world and the vast Index-2017. Bangladesh has ranked 'partly free'. majority of the world's states January - March 2018 36 News Bulletin Bangladesh Economy

(microstates are excluded). Asia's In some ways, however, it is a far else (Turkey's recent clampdown on average regional score in media worse place in which to operate for the media is comparable in its highly freedom ranking is 5.5, and its journalists, bloggers and civil-rights repressive treatment of journalists, average ranking is 79.4. Governments and powerful political and business interests in many Asian countries use defamation laws and related criminal provisions to punish criticism in the media, clamping down on critical commentary on social media. e rising pressure on social media platforms is troubling, given the shortage of independent reporting from the mainstream press in these countries.

e Chinese authorities have activists, said the EIU. China, North who are accused of seeking to under- imposed some of the region's harsh- Korea and Laos are black holes for mine or overthrow the president and est penalties for negative online independent news and information. the government). reporting as censors have become All three are authoritarian, commu- increasingly sensitive to criticism of nist regimes in which journalists e region (Asia and Australia) is also the regime and the Communist have to follow the party line if they a very dangerous place for journalists, Party of China (CCP) leadership, want to continue working. who face physical and death threats putting pressure on foreign news In China and Vietnam, dissenters on a regular basis in countries such as agencies and journalists as well as are locked up in large numbers and Bangladesh, Pakistan and the Philip- domestic critics. on a far bigger scale than anywhere pines, according to the EIU. BD ranks 57th most-powerful military in the world Bangladesh’s military is placed 57th Pakistan, and India. However, the aircra , 45 attack aircra and others. on a global index that has ranked 133 report did not take into consider- Neighbouring India has 2102 aircra , countries on the basis of their global ation the strategic forces of any China 2955, Myanmar 249, and Pakistan has a total of 951 aircra . According to the report, Bangladesh Army has a total of 534 combat tanks, 942 armoured ghting vehicles, 18 self-propelled artillery guns, no- towed artillery guns and 32 rocket projectors. e report added that China owns a total of 6,457 combat military prowess. According to the country such as nuclear repower. tanks, India 4426, 592, while Pakistan Global Fire Power Index 2017, the e report cites that Bangladesh’s has a total of 2924 tanks, which is way US ranked rst, followed by Russia, defence budget is $1.59bn as more than what Bangladesh owns. China, and India while Pakistan against China’s $161.7bn, India’s ranked the 13th while Myanmar $51bn, Myanmar’s $2.4bn and e report also says Bangladesh has a total of 89 Naval assets. e coun- 31th on the list of 133 countries. Pakistan’s $7bn. try owns six frigates, four corvettes, France, Germany, the UK, Japan and According to the index, Bangladesh 28 patrol cra , ve mine warfare Israel are among top 15 countries. has an active military comprising of vessels but has no aircra carriers, e report also gives details which 160,000 personnel while India has destroyers and submarines — can provide a comparison among 13,62,500 while China 37,12,500 and elements that contribute to its mari- the militaries of Bangladesh, China, of 166 aircra . Of them, 45 are ghter time strength. January - March 2018 37 News Bulletin

Regional News Sovereign investors to cut U.S. exposure, eye trade war: Survey up from just 14.3 percent in Not surprisingly given the spike in December. volatility in February, there was an increase in the number of asset e reduction in risk appetite owners saying they planned to follows a rollercoaster ride for overweight cash in the next 12 global equities in February a er months, to almost 50 percent, up U.S. wage growth numbers sparked from 41.7 percent in the previous fears the Federal Reserve was quarter. behind the curve and would need to Just under a third of respondents e number of sovereign investors raise interest rates more quickly continued to cite long U.S. technolo- planning to underweight U.S. assets than expected. Both the S&P 500 gy equities as the most crowded in the next 12 months has jumped to and the Dow Jones suered their trade, with some 30.4 percent saying 43 percent, a survey showed, with biggest percentage drops since they planned to underweight infor- almost a third citing trade wars and August 2011 in early February, and mation technology stocks in the next increased protectionism as the ended the month down around 4 12 months. is was up from just 9.5 percent. biggest tail risk. e shi in percent last quarter. Tech stocks sentiment in the poll, conducted by e survey, sent to media late on rallied almost 37 percent in 2017, but the U.S.-based Sovereign Wealth March 6, also revealed a notable nished February at. Fund Institute in February, reects a shi in investor thinking on the Volatility in listed equities also turbulent month in global stock biggest tail risk, with trade wars and seemed to encourage investors to markets and moves by U.S. Presi- increased protectionism leapfrog- look closely at increasing their expo- dent Donald Trump to slap taris on ging a stock market bubble into sure to private markets. Some 52.6 a variety of imports. pole position. Seven respondents percent said they were planning to e survey, which covered 25 chose trade wars in the February overweight private infrastructure pension funds, sovereign wealth poll, up from just three in the previ- over the next year, up from 30.4 funds and other public asset owners ous quarter. percent in December. Half of with an estimated $1.21 trillion in Trump has repeatedly rattled the respondents also said they planned assets, showed those planning to saber on trade over the past month, to overweight private equity, up underweight U.S. exposure in the introducing measures against from 29.2 percent last quarter. next 12 months had leapt from 25 imported washing machines and A recent report from State Street percent in the December survey. solar panels. In early March he Global Advisors put sovereign Meanwhile, the percentage of inves- turned up the heat, threatening wealth funds’ private market tors planning to overweight the U.S. he y taris on steel and aluminum holdings at over $1.6 trillion. How- slumped to 8.7 percent from 20.8 imports. e moves triggered ever, some funds have struggled to percent. Around a third also said another equity market sell o as get exposure to infrastructure assets, they planned to underweight investors fretted about retaliation with demand consistently outstrip- passively-managed global equities, from exporting countries. ping supply. Trump angers China, South Korea with new trade taris President Donald Trump has and even protests at home. Seoul "Together with other WTO mem- approved steep taris on imports of said on January 23 it planned to take bers, China will resolutely defend its solar panels and washing machines the issue to the World Trade Organi- legitimate interests," its commerce to protect US producers, triggering zation while Beijing expressed ministry warned, without indicating an outcry in China and South Korea "strong dissatisfaction". any specic counteraction. At home January - March 2018 38 News Bulletin Regional News in the US, the move was decried by South Korea, which has signed a Samsung, South Korea's biggest the solar industry, which said the free trade deal with the US and is a rm, said the taris were "a tax on taris would create a "crisis" and crucial ally in Washington's every consumer who wants to buy a cost thousands of US jobs and billions in investment without helping domestic suppliers meet rising demand. US Trade Representative Robert Lighthizer said the taris were imposed a er an "exhaustive" review by USTR and the indepen- dent US International Trade Com- mission, which determined that US producers were "seriously injured by imports." e administration confrontation with North Korea, washing machine." "Millions of imposed taris of up to 50 percent said it would le a petition at the Americans love their LG washers," said another South Korean compa- on imports of large washing WTO. Its Trade Minister Kim ny, LG Electronics, taking umbrage machines over three years, and up Hyun-Chong said the taris were at the decision. "Consumers should to 30 percent on solar panels over "excessive" and may constitute a be the ones to decide what washers four years. "violation of WTO provisions." they want." Australia, US, India and Japan for ‘alternative’ to China’s Belt and Road In a bid to counter Beijing’s grow- seriously discussed. e source said Trade Minister Steven Ciobo did ing inuence, Australia, the US, the preferred terminology was to not immediately respond to India and Japan are said to be call the plan an “alternative” to requests for comment. talking about establishing a joint China’s Belt and Road Initiative, Japan, meanwhile, plans to use its regional infra- ocial develop- structure scheme ment help (ODA) as an alternative to to promote a China’s multibil- broader “Free and lion-dollar Belt Open Indo-Pacic and Road Initia- Strategy” includ- tive. An unnamed ing “high-quality senior US ocial infrastructure”, was quoted in the according to a Australian Finan- summary dra of cial Review on its 2017 white February 19 as paper on ODA. saying the plan e Indo-Pacic involving the four allies was rather than a “rival”. “No one is strategy has been endorsed by Wash- “nascent” and “won’t be ripe saying China should not build infra- ington and is also seen as a counter enough to be announced” during structure,” the ocial was quoted as to the Belt and Road Initiative. Australian Prime Minister Turn- saying. “China might build a port Tao Wenzhao, an international bull’s visit to the United States later which, on its own is not economical- relations expert at the Chinese this week. ly viable. We could make it economi- Academy of Social Sciences, said it’s cally viable by building a road or rail However, the ocial said the unclear whether the countries have line linking that port.” project will be on the agenda for enough money to invest in regional Turnbull’s talks with US President Representatives for Turnbull, infrastructure, or even whether Donald Trump and was being Foreign Minister Julie Bishop and Washington is willing to, since January - March 2018 39 News Bulletin Regional News

Trump appears more eager in Shi Yinhong, an international issues such as South China Sea seeking returns from the region. relations professor at Renmin disputes. University of Beijing, agreed that the “We cannot say that the four nations First mentioned during a speech by will fail, but how far their initiative four nations are limited in strength. Chinese President Xi Jinping to will go remains to be seen,” Tao said. “It is questionable if they are able to university students in Kazakhstan in “China will not oppose any nations come up with a joint project that can 2013, China’s Belt and Road plan is a from launching infrastructure compete with China’s Belt and Road vehicle for the Asian country to take projects in the region. We have not Initiative in terms of global a greater role on the international said only China can do it and other inuence,” he said. However, he stage by funding and building global nations cannot. e Belt and Road warned that the nations will contin- transport and trade links in more Initiative is open.” ue to exert pressure on China on than 60 countries. WTO chief urged states to stop rst dominoes of trade war e head of the World Trade Orga- policy measures, it is clear that we An eye for an eye will leave us all blind nization told member states on now see a much higher and real risk and the world in a deep recession,” March 5 they must prevent “the fall of triggering an escalation of trade Azevedo said. Trade ocials said that of the rst dominoes” in a trade war barriers across the globe,” Azevedo many diplomats at the meeting voiced and warned of a real risk of trigger- said, according to a copy of his concern about protectionism, and 11, ing an escalation of global trade statement released by the WTO. including the 28-state European barriers and a deep recession. World Union, expressed very strong Azevedo is normally very conserva- trade policy is in turmoil because of concerns about Trump’s announce- tive in remarks about WTO mem- U.S. President Donald Trump’s ment on March 1 specically. bers’ trade policies, but he also plays a announcement last week that he role as a guardian of the global As well as the EU, Mexico, Japan, planned to put controversial taris Australia, China, South Korea, Brazil, on steel and aluminum, prompting trading rules, a bulwark against Norway, Canada, India and Venezue- threats of tit-for-tat actions and protectionism. On March 3 he broke la all warned of the knock-on eect of concerns for the trade system itself. his silence on Trump’s tari plan, expressing concern and saying a trade Trump’s action and urged the United “We must make every eort to avoid war would be in nobody’s interest. In States to think again. Trade ocials said the U.S. representative at the the fall of the rst dominoes. ere is his statement at March 5 meeting, he still time,” WTO Director General meeting, originally called to discuss a did not name any one country but Roberto Azevedo told the heads of recent ministerial conference in sounded a more urgent warning. WTO delegations at a closed-door Argentina, spoke only about the meeting in Geneva. “In light of “Once we start down this path it will original agenda without mentioning recent announcements on trade be very dicult to reverse direction. the furor over the U.S. tari plan. Global economic upturn boosts euro zone investors in January: survey Investors in the euro zone felt more picked up, a survey showed on Sentix’s index for the euro zone, upbeat in January as they shrugged January 8, but research group based on a survey of 929 investors, rose to 32.9 in January from 31.1 in December. at beat the Reuters consensus forecast for a reading of 31.5 and came a er a he y fall at the end of last year. A subindex track- ing the current situation hit its highest level since August 2007. “e economy in all regions of the world is looking stable and positive and is showing moderate improve- o the lack of a new government in Sentix warned there was a risk of ments,” the Frankfurt-based research Germany and the global economy overheating. rm said, adding that this applied to January - March 2018 40 News Bulletin Regional News regions including the euro zone, a three-way coalition last year failed Rather than focusing on the lack of a eastern Europe and Latin America. but she began talks with the Social new government, investors are “e upturn is therefore broad and Democrats (SPD) and said she was beginning to assess the impact of U.S. synchronous. e likelihood of optimistic they could agree to form a President Donald Trump’s tax possible overheating is rising,” coalition government. reforms, which is enhancing compa- Sentix added. e parties, which are likely to clash nies’ prots and is likely to boost It said businesses did not seem to be on immigration, tax, healthcare and demand for capital goods, Sentix bothered by the absence of a new Europe, expect to announce on said. U.S. President Donald Trump coalition in Germany, Europe’s whether they will open full-blown signed a tax reform into law in largest economy, which has been coalition talks. An index tracking December which slashes the U.S. managed by a caretaker government Germany increased to 40.1 in corporate tax rate to 21 percent for since a September election. Chancel- January from 39.1 the previous 35 percent. Sentix said that was push- lor Angela Merkel’s attempts to form month. ing up U.S. economic expectations. Digital transformation to help gain over $ 1tr by 2021 e digital transformation will help expected to know more than 50% by "e pace of digital transformation is the Asia-Pacic region add about $ 2020, the biggest leap being expected accelerating, and IDC expects that by 1.16 trillion to its gross domestic in the defense customer interests. 2021, at least 60% of Asia / Pacic's product (GDP) by 2021, according "Digital transformation has a positive GDP will be digitized, with growth in to a study. It will also help to and measurable impact on the all sectors. Study shows leaders see increase the growth rate by 0.8 Asia-Pacic economy, and it is gener- doubling of followers' benets, with percent annually, according to ally considered that every organiza- improvements in productivity, cost research-Unlocking the Economic tion must be digital," said Ralph reductions and customer advocacy Impact of Digital Transformation Haupter, president of Microso Asia. To stay competitive, organizations in Asia-Pacic-produced by Micro- so in partnership with IDC Asia / Pacic. In 2017, about 6% of the region's GDP came from digital products and services created directly through digital technologies, such as mobility, the cloud, the Internet of ings (IoT) and the Internet arti- cial intelligence (AI). It is expected that this gure will reach about 60% by 2021, Microso said in a While 84% of organizations are in need to establish new metrics, realign statement released on February 27. full digital transformation, only 7% organizational structures and reorga- nize their technology platform. e survey was conducted among can be classied as leaders with 1,560 decision-makers in medi- complete or progressive digital e study identied key dierences um-sized and large businesses in 15 transformation strategies, with at between leaders and others in Asia economies in the region. Respon- least a third of their revenue from Pacic, which contribute to the dents stated that digital transforma- digital products and services. e improvements being tracked. Anoth- tion led to higher prot margins, study indicates that leaders are er dierence was that business agility increased productivity, stronger experiencing double the benets of and the culture of innovation were key objectives and that digital trans- advocacy, greater cost savings, and followers and that these improve- formation was always measured in increased revenue from new prod- ments will be more pronounced by terms of success. What distinguishes ucts and services. 2020. leaders from others is their ability to e research results indicate that Almost half of the leaders (48%) overcome the wave of digital trans- business leaders are already seeing have implemented a comprehensive formation from the perspective of improvements of 15 to 17% and are digital transformation strategy. organizational culture. January - March 2018 41 News Bulletin Regional News Nissan to pump $9.5b into China business, eyes top 3 spot Nissan Motor Co plans to invest 60 go full-throttle aggressive,” Seki said. protable,” Seki said, without elabo- billion yuan (Dh34.89 billion; $9.5 “If we didn’t do that, we would fall rating. billion) in China over the next ve behind and fail to grab market share Venucia, which Nissan established otherwise we could take.” Nissan jointly with Dongfeng, is another key and Dongfeng plan to increase the focus. e brand began selling cars in Nissan brand’s annual sales by 2012, competing with China’s 500,000 vehicles to 1.6 million low-cost, no-frills indigenous brands vehicles a year by 2022. It also plans such as those run by Geely and Great to boost Inniti’s annual sales by Wall Motor. Seki said shoring up 100,000 vehicles to about 150,000 Venucia is a must because indige- vehicles a year over the same time nous Chinese brands will likely years with its joint-venture partner frame. Still, more critical a strategy is collectively sell as many cars as global as it seeks to become a top three Nissan’s electrication plan. automaker in the world’s biggest brands sell in China. Last year indig- market. Long stuck as a second-tier Seki said the joint venture will launch enous Chinese brands sold a total of player in China, Nissan and Dong- as many as 20 electried vehicle 10.3 million vehicles, compared with feng Group said on Monday they models across all brands in an eort global brands’ 13.9 million vehicles. to sell roughly 700,000 such cars a plan to boost their volume to 2.6 Venucia, which uses retired Nissan year by 2022 excluding electric light million vehicles a year by 2022, up technologies such as platforms and from 1.5 million vehicles last year. commercial vehicles, using a combi- nation of all-electric battery vehicles transmissions, last year sold 143,000 Nissan plans to achieve the objective, and so-called “e-Power” hybrids. vehicles, up 22.7 per cent from 2016. dubbed its “Triple One” strategy, by Seki said Nissan wants to boost focusing on electric cars and Venucia, Automakers are scrambling to Venucia’s annual volume by more a no-frills local brand Nissan operates launch an array of electric and than 400,000 vehicles to be able to in China — two market segments plug-in hybrid vehicles over the sell as many as 600,000 vehicles a expected to see a surge in demand. It coming years, in part to comply with year by 2022. also aims to boost sales of light China’s production quotas for such e eort is likely to face tough commercial vans and trucks. China’s cars. Nissan’s joint venture with competition, however, from estab- auto market has been dominated by Dongfeng sold about 22,000 electric lished local players such as Baojun, General Motors Co and Volkswagen vehicles last year, but they were which GM operates jointly with its AG for nearly two decades, with each mostly light commercial e-vans. local China partners. “No global of them selling 4 million vehicles last In order to generate large enough automakers have a brand that year. Nissan, along with Toyota EV volume, Nissan plans to come up competes with low-cost local brands Motor Corp, Ford Motor Co, and with lower-cost electric cars by except for us and GM,” Seki said. In Honda Motor Co, lag far behind, each locally sourcing electric motors and addition to Baojun, GM operates the selling 1 million-plus vehicles a year. other key EV components from Wuling brand in a joint venture with “We aim to break away from this suppliers in China. In 2019, Nissan Chinese partner SAIC Motor Corp second-tier group and become a for example plans to launch three and Guangxi Automobile Group. top-3 China automaker,” Nissan’s such lower-cost EVs under the “Venucia is our clear advantage and China chief Jun Seki said in an Venucia name. “We expect EV and we are going to milk it to grow rapid- interview with Reuters. “We need to e-power hybrid business to become ly,” Seki said. JPMorgan and Goldman Sachs highest payer to bankers in Britain JPMorgan (JPM.N) and Goldman data released by the banks last year down from $2 million for the year Sachs (GS.N) paid their top bankers shows. Data compiled by Reuters ended Dec. 31, 2013 when new in Britain an average of $1.5 million from 13 banks’ lings, some of European Union rules aimed at each in 2016, compared with $1 which were released only late Febru- curbing banker bonuses took eect. million for local rivals HSBC ary, shows they paid an average of e Wall Street banks’ higher pay (HSBA.L) and Barclays (BARC.L), $1.06 million to such sta in 2016, packages show how they have January - March 2018 42 News Bulletin Regional News bounced back more quickly from the by 6 percent in the second quarter of banks in Britain may have to begin nancial crisis than their peers in 2016, while their ve biggest U.S. reporting such data a er the govern- Britain, some of which have faced rivals reported a 21 percent increase ment last April announced employers he y post-crisis costs that have to $13.1 billion in revenue from the would have to disclose the dierence

limited banker pay. e data also same business. e disclosures are between what they pay men and shows that EU rules to rein in banker among the most comprehensive women by April 2018. e average bonuses, blamed for driving exces- released on bankers’ pay in Britain, pay levels for bankers in the lings sive risk-taking in the run up to the which remains a controversial were boosted by a handful of top 2008 crisis, are having an impact. subject ten years on from the nan- earners, with 10 Goldman bankers earning the highest band of more cial crisis. JPMorgan paid 672 sta in senior or than 9 million euros in 2016 while 14 risk-taking positions a total of $1.02 A report by the Chartered Institute of JPMorgan executives took home that billion in 2016 for an average of Personnel and Development released lender’s top bracket of over 5 million $1.52 million each, while 724 Gold- on January 4 showed that a median euros each. man bankers took home an average worker salary in Britain is about e pay disclosures focus on banks’ of $1.48 million each, according to $38,493. In contrast, the average pay senior executives and ‘material risk Reuters’ calculations from the of a senior banker in 2016 was $1.06 takers’, and show how an EU rule lings. U.S. banks were also able to million. e report highlighted that that came into force in 2014 capping capitalize more eectively than the average boss of one of Britain’s variable or bonus pay at 200 percent European rivals on spikes in volatili- top companies will by January 4 have of xed pay has cut fat bonuses. ty in nancial markets in 2016 from already earned the same as the typical While Goldman Sachs paid senior Britain’s June Brexit vote. worker will make in the entire year. sta more than ve times more in variable pay than xed in 2013, Europe’s top investment banks’ e banks’ pay disclosures make no before the rule took eect, that ratio trading in xed income products fell mention of gender pay gaps, but fell in 2016 to 0.6 times. IMF chief calls on Indonesia to boost growth rate to absorb workers International Monetary Fund Man- create jobs for its growing labor performance and favorable aging Director Christine Lagarde force. Christine Lagarde, Managing outlook,” she said in a statement Director of the International Mone- issued a er the meeting. tary Fund and Indonesian President But in recent years, Indonesia has Joko Widodo chat during a visit to struggled to get its growth rate to the Tanah Abang market in Jakarta, exceed 5 percent, well below the pace Indonesia February 26, 2018. of China and India, amid tepid A er meeting with President Joko consumer demand and foreign direct Widodo at the start of a week-long investment. GDP growth failed to trip to Indonesia, Lagarde praised meet the government’s 5.2 percent on February 26 called on Indonesia the country’s economic manage- budget target last year and the IMF is to boost its potential growth rate ment and stronger policies. “Indo- forecasting that Indonesia, Southeast and channel revenues to more nesia’s economy continues to prove Asia’s largest economy, will grow by development spending to help resilient with a sound economic 5.3 percent in 2018. January - March 2018 43 News Bulletin Regional News

Lagarde said she and Widodo domestic revenue in order to avoid a e IMF chief on February 27 will discussed the importance of achiev- build-up of external debt. Lagarde, participate in an economic confer- ing higher potential growth to help whose visit comes two decades a er a ence , featuring central bankers and create jobs, adding “is requires painful IMF bail-out imposed harsh other ocials from ASEAN coun- mobilizing revenues to nance devel- austerity on Indonesia, praised the tries, focused on new growth opment spending and support country’s greatly expanded health models and adjusting to rapidly reforms in the product, labor and care system during a hospital visit. changing technologies. She also nancial markets.” In its recent Widodo also took her shopping at a plans to visit the city of Yogyakarta annual review of Indonesia’s policies, crowded Jakarta textiles market, in Java and the island of Bali, where the Fund said the government should along with Indonesian Finance the IMF will hold its annual meet- focus on nancing infrastructure with Minister Sri Mulyani Indrawati. ings in October. India regains status as fastest growing major economy India regained its status as the In the December quarter, annual 17-month high of 5.2 percent in world's fastest growing major econ- growth in the manufacturing sector December. Urjit Patel, RBI gover- omy in the October-December however climbed to 8.1 percent from nor said the economic recovery was quarter, surpassing China for the 6.9 percent in the previous quarter, at a nascent stage and called for a rst time in a year as government while nancial and other services cautious approach.

spending, manufacturing and grew at 7.2 percent from 5.6 percent. Wednesday's data is likely to be services all picked up. Asia's "Settling down of Goods and welcomed by Prime Minister third-largest economy grew 7.2 Services Tax (GST) reforms will Narendra Modi. Last week, he told percent in the December quarter, its boost growth in the next scal year," industrialists that his government fastest in ve quarters, Ministry of said Anita Gandhi, a director at was determined to put the economy Arihant Capital Markets. Statistics data showed on February back on a higher growth trajectory, 28. at beat China's 6.8 percent Some economists now anticipate but it is still far from ring on all and a forecast of 6.9 percent by the Reserve Bank of India (RBI), cylinders. Modi faces criticism over analysts polled by Reuters. which is trying to balance concern mounting bad loans at state banks In a data set that some economists over ination with support for and a $1.77-billion fraud at state said had put an early interest rate hike growth, could raise interest rates lender Punjab National Bank, the on the agenda, India also edged up its a er its next policy meeting on biggest in the country's banking 2017/18 GDP growth forecast to 6.6 April 5. e central bank has kept history. percent from 6.5 percent. India's its key rate unchanged since a 25 manufacturers and service industries Meanwhile, he is trying to acceler- basis points cut in August. have been struggling to overcome ate growth through higher state disruptions from the bumpy launch Retail ination eased marginally to spending, including 2.1 trillion of a national sales tax in July. 5.1 percent in January from a rupees ($32.4 billion) for the January - March 2018 44 News Bulletin Regional News recapitalisation of state banks, near one million youth entering the year from 2005 through 2008. which are beset with mounting bad market every month has been a key Higher oil prices and increased loans of nearly $148 billion. He has challenge, and he raised import tax pressure on market borrowings stepped up spending on infrastruc- on near 50 items to support domes- from government have already ture and welfare projects to boost tic manufacturers. increased bond yields and this is growth ahead of national elections likely to hit private investment and In November, Moody's raised in 2019. growth further. India's investment grade rating one is has widened the scal decit for notch, the agency's rst upgrade in Analysts said bad loans in banks the year ending in March, to 3.5 nearly 14 years, but cautioned and inationary risks arising from percent of GDP from the 3.2 percent against macroeconomic risks. high food and crude prices pose projected earlier. Creating jobs for India grew at more than 9 percent a risks to growth. China boosts investment in Sri Lankan mega-project

China will invest $1 billion in the ings," Sri Lanka's Urban Develop- been accused of seeking to develop construction of three 60-storey ment Minister Champika Ranawa- facilities around the Indian Ocean buildings at a mega-project near Sri ka told reporters in the capital. in a "string of pearls" strategy to Lanka's main port, Colombo said "ese three 60-storey buildings counter the rise of its rival and on January 2, as Beijing aims to boost its inuence in the Indian Ocean. e deal follows an earlier Chinese investment of $1.4 billion to carry out reclamation work for the wider Colombo International Financial City development, strate- gically located next to Sri Lanka's harbour, the only deep sea contain- er port in the region.

e countries hope the project, secure its own economic interests. initiated by former Sri Lankan will be able to attract more foreign A er protests by New Delhi, president Mahinda Rajapakse, will companies into Sri Lanka." e controversial project was formally Colombo removed freehold rights create a nancial centre in the launched a er a visit to Colombo by granted to the Chinese company Indian Ocean comparable with Chinese President Xi Jinping in and oered the land on a 99-year those in Singapore and Europe, 2014 but work was suspended by lease instead. drawing billions in foreign invest- the new administration, which ment and thousands of jobs. e CCCC has said it expects the came to power in January the project to create 83,000 new jobs following year. Sri Lankan ocials said 60 percent and help Sri Lanka attract another of the 269 hectare (672 acre) recla- It resumed a er the state-owned $13 billion in direct foreign invest- mation, due to nish next year China Communications Construc- ment to develop infrastructure. complete with yacht marina, had tion Company (CCCC) entered into China, the largest single lender to already been completed. No a fresh agreement with the new Sri Lanka, secured contracts to completion date was given for the government in August 2016, despite build roads, railways and ports geopolitical concerns from regional buildings, the rst for the develop- under Rajapakse, who is facing super power India. ment. investigations over allegations of "China Harbour (company) will put Colombo is a key hub for Indian corruption during his decade in in $1 billion to build three build- import-export cargo. Beijing has power. January - March 2018 45 News Bulletin Regional News India to inject nearly $14b into state banks by March India's government will inject e rst $14b (881b rupees) will be According to Reuters, the funds nearly $14b into all state banks in March whilst the rest will be over will be injected into 20 banks except for one by March, Reuters the next scal year. majority-owned by the govern- reports. With the funding, the ment. Together, these lenders banks must then implement hold most of the country's record reforms to boost lending and solve $150b in soured loans. e report the worsening bad debt problem. said that lenders with high India announced in October 2017 stressed-asset ratios, such as IDBI that it would inject $33.1b (2.11t Bank, will get a bigger portion of rupees) into state banks in 2 years. the money.

Myanmar to double electricity capacity by 2021 to meet power shortages

Myanmar is planning to double its power in March 2016. However, Myint, deputy permanent secretary electric power capacity by 2021 by experts cautioned that it remains to at the energy ministry. building natural gas-red power be seen how the government would Myanmar’s government has signed agreements to “start preliminary engineering work,” such as environ- mental assessments, with six compa- nies. e companies include TOTAL, Siemens AG, Zhefu Hold- ing, TTCL Public Company Ltd , Sinohydro Corporation and Myan- mar-based Supreme Trading.

e four plants will be in areas including the western state of Rakh- ine and Myanmar’s largest city of Yangon, with the government strike power purchase agreements plants, two senior ocials told purchasing electricity from the six Reuters on January 31, in an ambi- with the investors. Four gas-red rms. Myanmar has gas reserves, tious move to tackle chronic power power plants would be built by 2021 but exports most of its existing shortages in the energy-starved at a total cost of $5.16 billion in oshore production. Several country. With only one-third of the several parts of Myanmar, said two oating gas storage and regasica- country’s 60 million people ocials from Myanmar’s Ministry tion units would be deployed to connected to the electrical grid and of Electricity and Energy. store the LNG for the projects. cities experiencing blackouts, ey said the plants will raise gener- Myanmar needs to boost its power ation capacity by 3,100 megawatts Wa an Oo, an analyst from supply to attract much-needed (MW) and would double the Myanmar Energy Monitor, said the foreign investment. current capacity of around 3,000 projects are “ambitious in scope” e plan is the most impressive MW. “We will need another 3,000 but there are uncertainties. Myan- attempt yet to tackle the energy megawatts by 2021. at’s why we mar aims to increase its power problem since the government led speed up the process in order to generation more than fourfold by by Aung San Suu Kyi swept to quickly meet the demand,” said Soe 2030 to meet demand. January - March 2018 46 News Bulletin Regional News Amazon's rst cashier-less grocery store is nally open A er nearly a full year of delays, out," National Association of is method is based on the honor Amazon Go is nally opening to the Convenience Stores spokesperson system, with people looking to take public in Seattle, advantage thought Washington on to be in the minori- January 22. e ty, Amazon said. online mega-retail- e 1,800-square- er's rst-ever foot store is not grocery store is fully completely employ- automated, meaning it doesn't employca- ee-free. Although shiers, negating there are no checkout stations, cashiers, the store registers and long still hired "associ- line wait times. ates" to greet Instead, customers swipe their Je Lenard told the Los Angeles customers, prepare ready-to-eat food Amazon app to enter the store and the Times. "But the quality is what will items, stock shelves and assist custom- company's "Just Walk Out" technology get them to come back." ers. But any potential expansion plans takes care of the rest. Algorithms and Amazon may have could eliminate a For the past year, only employees substantial number of jobs. sensors keep track of what people take were allowed to test out the website's o and put back on the shelves, new technology — which Amazon More than 3.5 million people were creating a virtual shopping cart for does not plan on implementing at employed as cashiers as of May 2016, each person. When shoppers have Whole Foods locations. If shoppers according to the Department of everything they need, they simply leave notice an error on their charges or Labor — 900,000 of them in grocery the store and their cart-full of items is are unhappy with a purchase, they stores. But as a company, Amazon is billed to their Amazon account. can simply tap the "refund" button hiring thousands of new employees, "e coolness of the technology will on their receipt within the Amazon- increasing by 40% year to year, und- oubtedly get people to check it Go app — no returns necessary. CNBC reported.

Beijing to shut down 1,000 manufacturing companies by 2020 Beijing will shut down 1,000 manu- moving its non-capital functions, Tianjin and Hebei, a national facturing companies and 300 according to the capital's 2018 dra strategy to balance the development markets and logistics centers by 2020, to further move its non-capi- tal functions out of the city, accord- ing to a press conference from the ongoing local legislative session on January 27. In 2018, Beijing will close 500 manu- facturing companies and 176 markets and logistics centers, and relocate several universities and hospitals to suburban areas, Liu Bozheng, deputy director of the Beijing oce oversee- ing the integration of the Beijing-Tianjin-Hebei region, said at budget report distributed at the of the three regions. Beijing has the press conference. legislative session. In 2015, China completed about 990 tasks to Beijing plans to inject 12.2 billion released a three-year plan for the promote integrated development in yuan (1.9 billion U.S. dollars) into integrated development of Beijing, the regions. January - March 2018 47 News Bulletin

WTO News Summary of General Council meeting of 7 March 2018 Report by the Chairman of the Trade Negotiations Committee (TNC) and Report by the Director-General e Chairman referred to the Guatemala (for the Group of Small, for chairpersons to WTO bodies. e Director-General's report at the 5 Vulnerable Economies) and the Council for Trade in Goods and March Informal TNC and Heads of Republic of Moldova spoke. Council for Trade in Services

Delegation meeting. At that meeting, Aid for Trade Work Programme – Chairs announced that they would 45 delegations intervened. Statement by the Chairman on Trade conduct consultations to select and Development Chairs for the bodies established Implementation of the Bali, Nairobi under their respective Councils. e CTD Chairman reported that and Buenos Aires Outcomes– Chile intervened. Statement by the Chairman consultations on the latest work programme on Aid for Trade had Election of Chairperson e Chairman reported on the work been ongoing since early January. e Council elected by acclamation taking place in WTO regular bodies Although progress had been made, Ambassador Junichi Ihara (Japan) as to full the Bali, Nairobi and Buenos the CTD would need more time to Chair for 2018. Honduras (for the Aires Ministerial mandates. deliberate on the matter. Following Informal Group of Developing Countries), Kenya and Rwanda (for Work Programme on Small the CTD Chair's suggestion, the General Council would again take the African Group) intervened. Economies – Report by the up the item at a future meeting. Chairman of the Dedicated Session Under Other Business, 18 delegations Chad (for the Group of Least- of the Committee on Trade and raised concerns regarding proposed developed Countries) spoke. Development (CTD) national trade restrictive measures by Appointment of Ocers to WTO one Member. Canada made a e CTD Chairman recalled the Bodies statement on a workshop on Trade Buenos Aires Ministerial Decision and Gender Based Analysis. on this matter and informed In line with the Guidelines for Montenegro and the European Union Members that the CTD Dedicated Appointment of Ocers (WT/L/ intervened. e Chairman also made Discussion would continue to 510), the General Council took note an announcement regarding discuss how to take it forward. of the consensus on the slate of names Members and Observers in arrears. January - March 2018 48 News Bulletin WTO News WTO chairpersons for 2018 e WTO General Council, on 7 March 2018, noted the consensus on a slate of names of chairpersons for WTO bodies. Regular bodies General Council H.E. Mr Junichi IHARA (Japan) Dispute Settlement Body H.E. Ms Sunanta KANGVALKULKIJ (ailand) Trade Policy Review Body H.E. Mr. Eloi LAOUROU (Benin) Council for Trade in Goods H.E. Mr. Stephen DE BOER (Canada) Council for Trade in Services H.E. Mr. Alfredo SUESCUM (Panama) TRIPS Council H.E. Dr. Walter WERNER (Germany) Committee on Trade and Development H.E. Mr. Diego AULESTIA (Ecuador) Committee on Balance-of-Payments Restrictions H.E. Mr. Claudio DE LA PUENTE (Peru) Committee on Budget, Finance and H.E. Mr. Juan Esteban AGUIRRE MARTÍNEZ Administration (Paraguay) Committee on Trade and Environment H.E. Mrs. Sondang ANGGRAINI (Indonesia) Committee on Regional Trade Agreements H.E. Mr. Julian BRAITHWAITE (United Kingdom) Working Group on Trade, Debt and Finance H.E. Mr. Mohammad HAQJO (Afghanistan) Working Group on Trade and Transfer of H.E. Mrs. Sabine BÖHLKE MÖLLER (Namibia) Technology

Negotiating Bodies Services Council in Special Session H.E. Mrs. Zhanar AITZHANOVA (Kazakhstan) Negotiating Group on Rules H.E. Mr Roberto ZAPATA BARRADAS (Mexico) e outgoing General Council chair, Ambassador Xavier Carim of South Africa, informed members that consultations would continue on the selection of a new chair for the Committee on Agriculture in Special Session. e chairs of the other negotiating bodies remain the same.

Davos: DG Azevêdo calls on members to match words of support for the WTO with deeds At an informal ministerial gathering by representatives from a wide WTO Africa, Caribbean and Pacic on WTO issues hosted by the Swiss range of WTO members, including Group. government on 26 January, Director-General Roberto Azevêdo reviewed the challenges and opportunities arising from the 11th WTO Ministerial Conference (MC11) held in Buenos Aires in December 2017, and called on WTO members to follow up on their pledges of political support for the multilateral trading system with actions, including a greater willingness to seek compromise. e meeting was held on the nal day of representatives of the WTO In his comments at the meeting, the the World Economic Forum Annual Least-developed Countries Group, Director-General reected on the Meeting in Davos. It was attended the WTO Africa Group, and the outlook a er MC11. He said: January - March 2018 49 News Bulletin WTO News

“Despite the energy and activity we On a positive note, the Director- was talking about in Davos last year saw on various issues at MC11, General also touched on new devel- as well. But they didn't actually clearly the overall outcome was opments from the Buenos Aires materialize. Leaders showed some disappointing. We need to face up to meeting: restraint and the trading system did its job once again. the problems before us. Everyone “I also want to acknowledge the seems ready to pledge their support positive progress made in Buenos “While the risks still remain very for the system. But while political Aires by groups of members on real, global trade is actually perform- support is essential, it is not e-commerce, investment facilita- ing well. Growth in 2017 was stron- sucient. Words need to be tion, micro, small and medi- ger, and forecasts for 2018 are also matched by deeds. If we believe in um-sized enterprises, and women’s quite encouraging. We need trade to multilateralism, we have to be ready economic empowerment. It's keep playing its role in supporting economic growth and job creation in to take the steps needed to make it encouraging that proponents are all our economies. erefore I hope work. clear that these initiatives will be as we will see similar restraint from open, inclusive and transparent as “A er MC11 it can't just be business governments this year – and I call on possible.” as usual. We need to nd ways to all WTO members to play their part avoid repeating unsuccessful Commenting on the broader trade in that eort.” debate, he continued: approaches, and reaching the same During his time in Davos, the Direc- unsatisfactory result. We need to “Trade has been high on the agenda tor-General also took part in numer- reect – but to do so in an active in Davos this week. ere are grow- ous World Economic Forum way. Development, and particularly ing fears that tensions will continue sessions on global trade, and held a the prospects of the LDCs, must to rise, with damaging consequenc- series of meetings with leaders from remain at the heart of our work.” es. ese risks were what everyone business, labour and government. Director-General welcomes new cohort of WTO young professionals Director-General Roberto Azevêdo with the aim of enhancing the around the world. A big part of that welcomed the 2018 cohort of WTO knowledge and skills on WTO is to invest in professionals like you," young professionals on 8 February. issues of young professionals from DG Azevêdo told the Young Professionals. He said that the programme aims to enhance the knowledge of WTO issues among young professionals not only to help them build their own careers in trade, but also because they should seek to "disseminate the knowledge as far and wide as possible, as this is essential in empowering people to gain the benets that trade and the trading system have to oer". He noted that the rst year of the initiative was so successful that the e 15 participants of the Young developing and least developed WTO expanded the intake of the Professionals Programme will spend countries — with a special focus on young professionals to 15 vacancies, a year in the WTO Secretariat to WTO members that are not currently three times the size of the 2017 learn about the organization’s work represented at the professional level programme. and contribute to its activities. in the WTO Secretariat. DG Azevedo briefed the Young e WTO Young Professionals "Trade can make a big dierence in Professionals on the latest Programme was launched in 2016 the lives of people and prospects ministerial conference in Buenos January - March 2018 50 News Bulletin WTO News

Aires in December last year. He He encouraged the young candidates following a competitive noted the young professionals professionals to stay tuned, get selection process. is is the second joined the WTO "at an important involved and make the most out of time the WTO has implemented the moment of the organisation", as their time in Geneva. Young Professionals Programme, there is huge interest in the WTO's a er a successful inaugural work at present and stakeholder e  een young professionals were engagement has been growing. selected from more than 1,500 programme in 2017.

Participants in the WTO Young Professionals Programme in 2018

Name Nationality Division

Mr Kossivi BALEMA Togo Agriculture and Commodities Division

Ms Helen CHANG El Salvador Market Access Division

Mr Worabhatra CHANTRAMITRA ailand Rules Division

Ms Jeanelle CLARKE Antigua and Barbuda Information and External Relations Division

Ms Ani GABRIELYAN Armenia Trade and Environment Division

Mr Vakhtangi GIORGADZE Georgia Legal Aairs Division

Mr Jorge GUTIERREZ Panama Intellectual Property, Government Procurement and Competition Division

Ms Deah JAMES St Vincent and the Grenadines Development Division

Ms Carolle KEMPA NANGUE Cameroon Economic Research and Statistics Division

Ms Justine LAN Indonesia Trade in Services and Investment Division

Mr Doou Marc Elisée MONSOH Ivory Coast Trade Policies Review Division

Ms Feruza NABIYEVA Kazakhstan Accessions Division

Ms Nydiane RAZAFINDRAHAINGO Madagascar Institute for Training and Technical Cooperation Division

Ms Antonella SALGUEIRO Paraguay Intellectual Property, Government Procurement and Competition Division

Ms Onon SUKHBAATAR Mongolia Agriculture and Commodities Division

WTO issues call for papers for 2018 Essay Award for Young Economists e WTO has issued a call for young author(s) of the winning essay. In specializing in international trade, economists to submit papers for the the case of a co-authored paper, the which will take place in September 2018 WTO Essay Award. e award 2018 in Warsaw, Poland. e aims to promote high-quality winning author(s) will receive research on trade policy and funding to attend the meeting. international trade co-operation and to reinforce the relationship between An Academic Selection Panel will select the winning paper. e panel the WTO and the academic prize will be equally divided among comprises: community. Essays must be the authors. e winning paper will submitted by 1 June 2018. be ocially announced at the annual Professor Avinash Dixit (Princeton e annual WTO Essay Award meeting of the European Trade University); Professor Robert Staiger provides a prize of CHF 5,000 to the Study Group, the largest conference (Dartmouth College); Professor January - March 2018 51 News Bulletin WTO News

Alberto Trejos (INCAE Business (Columbia University); 2015 and the selection panel will take a School); Dr Robert Koopman Christoph Boehm (University of nal decision by 20 July. Only the (Director of the WTO's Economic Michigan), Aaron Flaaen (Federal author(s) of short-listed essays will Research and Statistics Division) is Reserve Board of Governors in be notied. ex ocio member of the panel; Dr Washington D.C.) and Nitya Publication Roberta Piermartini (Chief of the Pandalai-Nayar (University of WTO's Trade Cost Analysis Section) Michigan); 2014 Jonathan Dingel e winning essay will be published coordinates the work of the selection (Columbia University) and Claudia in the WTO Working Paper Series panel. Steinwender (LSE); 2013 Felix and it is the responsibility of the Eligibility Tintelnot (Princeton University) author(s) to endeavour to secure 2012 Treb Allen (Yale University); publication of the contribution in a e paper must address issues related 2011 Rafael Dix-Carneiro journal. to trade policy and international trade (University of Maryland) and Kyle co-operation. e author(s) of the Submissions Handley (Stanford University); 2010 paper must possess or be engaged in All submissions should be sent to the completion of a PhD and, if over Dave Donaldson (MIT) and Olena [email protected]. Submissions 30 years of age, be no more than two Ivus (Queen's University); 2009 should include as separate years past a PhD defence. In the case Ralph Ossa (University of Chicago). attachments in PDF format: of co-authored papers, this e runner-up was Mostafa Beshkar requirement shall apply to all authors. (University of New Hampshire). 1. the essay; 2. the CV of the To be considered for the award, author(s), specifying (i) current Deadlines essays cannot exceed 15,000 words. aliation(s), (ii) the academic Essays must be submitted by 1 June institution awarding the PhD, (iii) Past winners 2018. e WTO's Economic the year (or the expected year) of the 2017 Meredith Startz (Princeton Research and Statistics Division will PhD, (iv) the date of birth of the University); 2016 Matthieu Bellon shortlist eligible papers by 18 June author(s). Launch of news portal to raise awareness of trade development in least-developed countries A new portal has been launched by agreements include provisions partners and resources to support the Enhanced Integrated Framework aimed at increasing LDCs’ trade the least-developed countries (EIF) to provide a platform for the opportunities and allowing LDCs (LDCs) in using trade for poverty exchange of news, information and exibility in implementing WTO reduction, inclusive growth and experiences on trade and rules. e WTO Ministerial sustainable development. e EIF is development in least-developed Conferences held in Bali in 2013 and a global partnership between LDCs, countries (LDCs). in Nairobi in 2015 adopted several donors and international agencies, decisions in favour of LDCs to assist underpinned by a multi-donor trust Ocially launched by the EIF at the their better integration into the fund, which provides nancial and WTO's Committee on Trade and multilateral trading system. technical support to build trade Development's Aid for Trade capacity in 47 LDCs and four meeting on 19 February, the Trade recently graduated countries. e for Development News platform EIF is the only global Aid for Trade serves as a forum for LDC programme exclusively designed for governments and stakeholders to LDCs and therefore is uniquely share their successes, challenges and e new EIF portal already features placed to assist countries to develop strategies for enhancing LDC stories on trade and development sustainable trade strategies. rough participation in global trade. news in WTO members such as a multilateral approach, the EIF e 47 countries classied as LDCs - Samoa, Vanuatu, Cambodia, ensures a coordinated, transparent 36 of whom are WTO members - are Zambia, Senegal, the Gambia and and ecient delivery of Aid for home to 13 per cent of the global Burkina Faso. Trade. e EIF is recognized under population, but account for only 1 e Enhanced Integrated Goal 8a of the UN's Sustainable per cent of global trade. WTO Framework (EIF) brings together Development Goals. January - March 2018 52