Strengthening Cross-Border Value Chains Opportunities for India and Bangladesh
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Public Disclosure Authorized DEVELOPMENT KNOWLEDGE AND LEARNING Strengthening Public Disclosure Authorized Cross-Border Value Chains Opportunities for India and Bangladesh Edited by Sanjay Kathuria Public Disclosure Authorized Priya Mathur Public Disclosure Authorized DEVELOPMENT KNOWLEDGE AND LEARNING Strengthening Cross-Border Value Chains Opportunities for India and Bangladesh SANJAY KATHURIA AND PRIYA MATHUR, EDITORS © 2020 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved 1 2 3 4 22 21 20 19 Books in this series are published to communicate the results of Bank research, analysis, and operational experience with the least possible delay. The extent of language editing varies from book to book. This work is a product of the staff of The World Bank with external contributions. 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Cover photo: © Pranjal Protim Bora / Shutterstock.com. Used with the permission; further permission required for reuse. Cover design: Debra Naylor / Naylor Design Inc. Contents Acknowledgments vii About the Contributors ix Abbreviations xi Introduction 1 Note 2 Bibliography 2 CHAPTER 1 Spices 3 Ciliaka Millicent W. Gitau Introduction 4 Industry description and trends 6 Strategic diagnostic 14 Strategic options for NER 19 Industry ecosystem: Porter’s diamond 25 Conclusions: Some considerations for the public and private sectors 27 Notes 30 Bibliography 32 CHAPTER 2 Fruits and Vegetables 33 Aman Khanna Introduction 34 Industry description and trends 35 Strategic diagnostic 39 Strategic options for Northeast India 44 Participation of women 48 Industry ecosystem in NER 49 Some policy considerations 51 Annex 2A: Map, figures, and boxes 55 Notes 63 Bibliography 66 CHAPTER 3 Bamboo and Bamboo Products 67 Ruchita Manghnani Introduction 68 Industry description and trends 69 Strategic diagnostic 77 Strategic options for NER 81 iii iv | Strengthening Cross-BORDER Value Chains Industry ecosystem: Porter’s diamond 86 Conclusions: Some considerations for the public and private sectors 90 Notes 94 Bibliography 95 CHAPTER 4 Medical Tourism 99 Priya Mathur Introduction 100 Industry description and trends 101 Strategic diagnostic 109 Strategic options for Northeast India 115 Industry ecosystem: Porter’s diamond 124 Conclusions: Some considerations for the public and private sectors 129 Annex 4A 134 Notes 141 Bibliography 144 CHAPTER 5 Opportunities for Bangladesh 149 Sanjay Kathuria and Priya Mathur Bangladesh underutilizing growth opportunities in South Asia 149 Connectivity improvements and related developments in NER 151 Bangladesh can leverage NER’s connectivity improvements and related developments for its own gains 156 Conclusion: Considerations for policy makers for maximizing gains 160 Notes 165 Bibliography 167 Boxes 1.1 Institutional structure and policies 13 1.2 Examples of preferred sustainability practices 24 2A.1 Success of the grape exports cluster 60 2A.2 Key gaps in the kiwi value chain in the North Eastern Region of India 61 2A.3 Cross-border contract farming in Southeast Asia 62 4.1 Hospitals offer value-added services for better patient experience 111 4.2 Creating value together: The peace clinic initiative 117 4.3 Arya Hospital: A tale of success 123 5.1 Outward investment restricted in Bangladesh 161 Figures 1.1 Total production and exports of spices 6 1.2 Ginger producer price, 2015 11 1.3 Value chain: Fresh spices for quality-conscious consumers 21 2.1 Fruits and vegetables in Northeast India 38 2.2 Representation of the value chain to service segment A2 47 2A.1 Price realization by commodity, global average, 2014 55 2A.2 Income impact of cultivation of fruits and vegetables 56 2A.3 Rising trade with more importing countries 56 2A.4 India: A major producer but negligible exporter 57 2A.5 Yield gap in key fruits 57 2A.6 Complex food supply chain in India 58 2A.7 Greatest growth in imports of fruits by Far East economies 58 2A.8 Share of fruit and vegetable production, by country, 2016 59 2A.9 Growth of fruit and vegetable production, by country, 2007–16 59 3.1 Share in word bamboo trade, 2015 69 3.2 Global production of wood-based articles 71 3.3 India’s trade in bamboo 73 Contents | v 3.4 India’s bamboo suppliers, 2015 73 3.5 Bamboo-bearing area, by state 76 3.6 Value chain in segment B2 82 3.7 Potential for female participation in the value chain 85 3.8 Credit-to-SGDP ratio, by state, 2013–14 88 4.1 Estimated medical tourists in India, by region and country, 2015–16 102 4.2 Value chain: Medical tourism in the long-duration complex services segment 117 5.1 Intraregional trade as a share of regional GDP 150 5.2 Trade between Bangladesh and South Asia, 2015 151 5.3 Value chain: Medical tourism in long-duration complex services 159 Map 2A.1 Global agroecological zones 55 Tables 1.1 Top spice-producing countries 7 1.2 Major spices in India 9 1.3 Spice production in India, by state 10 1.4 Share of NER spice production of total production in India, 2014–15 12 1.5 High intrinsic value of spices from NER 12 1.6 Strategic segmentation for the global spice industry 16 2.1 Strategic segmentation 40 3.1 Bamboo: Global demand and supply, 2015 70 3.2 Global trade, bamboo and wood products, 2015 72 3.3 India’s bamboo trade, by product, 2016 74 3.4 Strategic segmentation for the global bamboo industry 79 4.1 Strategic segmentation of the global medical tourism industry 112 4.2 Admissions data for Gauhati Medical College and Hospital 122 4A.1 Availability of health care professionals, Northeast India 134 4A.2 Selected health education infrastructure, Northeast India 135 4A.3 Northeast India: Admission capacity for post-graduate degree (MD/MS) and super specialty degree (DM/MCh) courses, December 2016 136 4A.4 Admission capacity and medical courses offered by medical colleges, Assam, FY2016–17 138 4A.5 Admission capacity and medical courses offered by medical colleges, Tripura, FY2016–17 140 5.1 Bangladesh’s food trade, 2015 157 Note: The findings of this study are not binding on the countries covered by the study. Acknowledgments This report was prepared by a core team led by Sanjay Kathuria and Priya Mathur, and which included Ciliaka Millicent W. Gitau, Ruchita Manghnani, Aman Khanna, Nadeem Rizwan, and Emiliano Duch. Additional core team members, who were part of the team that prepared the companionvolume, Playing to Strengths: A Policy Framework for Mainstreaming Northeast India, included Prabir De, Charles Kunaka, Michael Friis Jensen, and Thirumalai G. Srinivasan. Special thanks to Emiliano Duch, Maria Deborah Kim, and Gloria Ferrer Morera for mentoring and guiding the value chain studies. Grace James, Savita Dhingra, Rima Sukhija, and (earlier) Shiny Jaison supported the team during the entire cycle of production. The team thanks the following for very helpful comments and reviews: Chakib Jenane, Anupam Joshi, Tesfamichael Nahusenay, Soujanya Krishna Chodavarapu, and Janardan Prasad Singh.