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Books on Bangladesh
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Update No: 001 - (30/01/06)
Politics
The Bangladeshi Prime Minister Khaleda Zia recently told the Jatiya Sangsad
(the people's parliament) that her government would put on trial all those
responsible for widespread corruption during the tenure of the past Awami League
government. According to her, "preparations are on to publish a white paper
on acts of corruption and a three-member team of consultants has been formed to
work on the planned document." The Prime Minister also said that the
government had begun investigations into specific acts of corruption. Referring
to her party's election promise to eradicate corruption from the society,
Khaleda said her government would combat corruption and injustice to safeguard
the interest of the people and the peace of society. In her words, "public
wealth embezzled through corruption will also be recovered." She also
recalled that the Bangladesh National Party headed by her in the previous term
had also taken action against persons involved in corruption during the Ershad
regime, many of whom were punished.
The opposition party, Awami League's President, Sheikh Hasina, has also stated
that the current BNP-Jamaat regime was moving towards its own defeat due to
excessive misrule and misdeeds. According to her statement, "people are
already scared of its nearly two-month rule marked by terrorism, murder, rape
and price-hike of essentials." Hasina also stated that the alliance
government since assuming power has been trying to destroy the Awami League's
activities through "terrorism, oppression and killings."
Bangladesh and the European Union
The European Union has offered to help Bangladesh in its fight against
terrorism declaring it to be an international problem. In the recent past,
Bangladesh has suffered a wave of bomb blasts, including suicide bombings, which
the government blamed on Islamist militants fighting for introduction of sharat
law in the Muslim democracy. Nikolaus Scherk, leader of the EU delegation
believes that terrorists are receiving funds from abroad and the threat of
terrorism should be addressed globally as it is a global problem. Scherk is the
Director for Asia Pacific at the Austrian Ministry for Foreign Affairs
representing the EU Presidency. He further believes that the continuing (everpresent)
disagreement between the government and opposition parties was damaging to
Bangladesh. The main opposition Awami League party wants the government to
resign for failing to tackle Islamist militancy and has threatened to boycott
and resist parliamentary elections due in January 2007. But the government led
by Prime Minister Begum Khaleda Zia has vowed to stay on in power until its term
ended. The EU is a major trading partner of Bangladesh, buying nearly half of
its garments and shrimps and EU countries also provide loans to the country.
Bangladesh - US relations
US Deputy Secretary of State, Christina Rocca, has said that the greatest
challenge for Bangladesh is to fight terrorism. Recent terrorist related attacks
have claimed around 30 lives. Rocca said that the United States was offering the
Bangladesh security forces technical assistance and training to help capture the
militants. Rocca urged the Bangladeshi government and leaders to hold free and
fair elections at the end of this year. Her remarks came in the context of the
EU delegation's report which warned that political confrontation was
jeopardizing the vote.
Economy and business
Bangladesh's Grameen Bank (GB) (grameen means village in Bengali) has
reversed conventional banking practice by removing the need for collateral and
created a banking system based on mutual trust, accountability, participation
and creativity. The Grameen bank provides credit to the poorest masses in rural
Bangladesh which acts as a cost effective method to fight poverty and
unemployment. As a result of the efforts and banking procedures of the Grameen
bank, the socio-economic situation of many of the poor has improved
significantly. Hence, this bank has played a pivotal role in the uplifting of
the rural masses and its efforts are not directed towards the middle or
upper-middle classes. Professor Muhammad Yunus who is the founder of "Grameen
Bank" and also its Managing Director claims that if sufficient financial
resources are made available to the poor people on terms and conditions that are
appropriate, then "millions of small people with their millions of small
pursuits can add up to create the biggest development wonder." As of July
2004, the bank has 3.7 million borrowers, 96 percent of whom are women. It has
267 branches and provides an extended reach to 46,000 villages, covering more
than 68 percent of all the villages in Bangladesh. Grameen Bank's critical
impact on poor farmers and poor borrowers has been documented in many
independent studies carried out by external agencies including the World Bank,
the International Food Research Policy Institute (IFPRI) and the Bangladesh
Institute of Development Studies (BIDS).
In other economic news, according to the International Tribune, the prestigious
American financial firm, Goldman Sachs, included Bangladesh in a list of 11
developing countries that has the maximum potential of emulating the long-term
economic success of countries such as China, India, Brazil and Russia. This came
as a surprise to many Bangladeshis and others, especially since the country has
one of the highest records in the world of poverty, overpopulation and
unemployment. Moreover, the country is frequently affected by floods which have
a devastating impact on its economy. If that were not enough, simultaneously
corruption is rampant in political and economic institutions throughout the
nation, slowing down the pace of development.
Given such a difficult situation why should anyone care about investing in
Bangladesh? According to Andy Mukherjee, there seem to be three reasons which
could allow for opportunities for investment. First, Bangladesh appears to have
managed a decent level of economic growth despite all its hardships and
reverses. It has maintained an economic growth of nearly 5 percent. Second,
almost 35 percent of Bangladeshis are now aged 15 years or younger and will soon
enter the work force. Compared with three decades ago, when women, on average,
produced six children, the fertility rate has dropped to below three children.
This means that new workers will not have quite so many young dependents to care
for. Household incomes and savings will rise, provided there is enough capital
to employ the labour productively. Third, despite existing corruption in many
institutions, the judiciary could be made to support a modern economy if only
politicians would agree to create one. Bangladesh is also competitive on labour
costs. Garment workers in Dhaka earn 39 U.S. cents an hour, while the hourly
wage for sewing and stitching in coastal China is 88 cents.
What Bangladesh needs is to open up to foreign trade and investment so that
better paying jobs lead to a bigger middle class, which also might bring new
players into national politics. Practical policies would reduce the wide gap
between Bangladesh's "promise and performance."
In a separate venture, Thai Airways International's management takeover of Shah
Amanat International Airport, in Chittagong, Bangladesh, has been delayed
following a request from Biman Bangladesh Airlines amid fears of financial
losses. Bangladesh's internal politics and resistance from Biman officials have
caused the delay as they felt that the management of the airport should not be
handed over to a foreign organization. Mirza Fakhrul Islam Alamgir, the state
minister for Civil Aviation and Tourism, said the ministry was reviewing the
terms of the 10-year contract with the Thai national carrier at Biman's request.
Biman officials are worried that the takeover by THAI would result in financial
losses.
The 2nd Bangladesh International Motor Show, organized by Bangladesh Automobiles
Distributors Association (BADA), is scheduled to be held at China-Bangladesh
Friendship Conference Centre from April 24 this year; reports UNB. BADA
organized the first edition of the Bangladesh International Motor Show in May
2003. The decision to organize the second version of the four-day automobile
show of brand new cars was taken at the BADA general meeting at Spectra
Convention Centre here Tuesday. The primary objective of the motor show is to
create awareness about new cars which are environmentally-friendly.
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