Joint chambers as facilitators of international trade and investment
Thursday, 11 November 2010
Hafeejul Alam
By the term "joint chambers" we generally mean trade chambers involving bilateral or multi-pronged participating countries. The mission of a joint chamber should be to support and strengthen business and economic cooperation between the concerned countries. This is a broad mandate, to be sure, but one that befits an organisation that serves as a commercial bridge between two or more countries. It is expected that the joint chambers in general provide such services as Access, Business Facilitation, Advocacy and Professional Advancement (ABFAP). Joint chambers are required to lead or receive dozens of high-level delegations, co-host events almost on a regular basis, provide public platforms for VIPs visiting from the region, go on a bat for many of the members and offer commercial services designed to help member companies win and retain business. In broad terms, joint chambers perform a wide array of value-added services to the members and at the end it all comes down to partnerships. As they say, "One hand alone cannot clap." With this in mind, the joint chambers should extend the hand of partnership not only within the associated countries but sometimes also without.
There are over sixteen joint chambers in Bangladesh which include American Chamber of Commerce (AmCham), Canada-Bangladesh Chamber of Commerce and Industry (CanCham), India-Bangladesh Chamber of Commerce and Industry, German-Bangladesh Chamber of Commerce and Industry, France-Bangladesh Chamber of Commerce and Industry, Japan-Bangladesh Chamber of Commerce, Korea-Bangladesh Chamber of Commerce and Industry. However, while some of our joint chambers are playing a crucial role in augmenting inter-trade and investment, there is growing criticism against many, for it is believed that the office-bearers of the latter group spend most of their times in purposeless luncheon or dinner meetings and pose for photographs along with foreign dignitaries just to get media publicity. As a matter of fact, the joint chambers' primary role is supposed to be trade facilitation. They should literally introduce companies to opportunities and show them how to do the deal. It is dramatically different than what governments generally do. While governments promote, joint chambers facilitate. Joint chambers may also be acting as unofficial envoys in furthering the cause of cooperation in trade and commerce. In order to perk up awakening among local business community and to improve trade relations between the participating countries, joint chambers should routinely organise seminars and workshops and reception to resourceful persons from within the country and without, in cooperation with the respective high commissions/embassies at Dhaka. The prime object of all these seminars and workshops should be to create a favourable investment climate and branding Bangladesh to attract investors.
Meanwhile, the Bangladesh economy has performed remarkably well despite the global economic crisis and the macro-economic indicators are in good shape. This relative stability helped put Bangladesh in the limelight. Bangladesh figures in a select group of countries that have emerged from the shocks of the global economic crisis with a decidedly positive growth outlook. Although, due to the commodity price crash, value of imports dropped slightly and capital machinery imports also declined indicating sluggishness in the manufacturing sector investment, the resilience of RMG and textiles sectors helped to prop up export receipts. Besides, the key source of funds in the foreign exchange market continued to be the wage-earners' remittance, which has grown at an average rate of 17% since 2001 and surged to 32% reaching a record high of nearly US$10.72 billion in 2009. Remittances by our migrant workers contribute 12% of the GDP, which is six times higher than the foreign development assistance and eleven times more than foreign direct investment. The country's foreign exchange reserve crossed $11.02 billion mark on July 8 for the first time, thanks to a robust growth of inward remittance as well as gradual development in our exportable products. It is quite heartening to note that the country's export earnings are steadily coming out of a negative trend as the export earnings in March 2010 marked 18.38% growth compared to the same month of the previous fiscal year. According to the statistics available at the Export Promotion Bureau, the actual export earnings for the period were $10.02 billion against the $11.29 billion target.
The Bangladesh government has made some headway improving the climate for foreign investors and liberalising the capital markets. Organisations such as the joint chambers have a definite role to shore up the public policy, improve bilateral ties leading to fruitful Foreign Direct Investment (FDI). The joint chambers could be particularly effective in researching new markets for investment, leading trade delegations to meet with government and business officials and ultimately helping businesses taking full advantage of the existing opportunities. In a recent press report, it was stated that out of the 16 commercial wings of Bangladesh's diplomatic missions abroad, only seven wings achieved their export targets. Of pertinence, I would suggest that while fixing export targets, the concerned ministry may take the respective joint chambers into confidence and arrange review session for fixing export targets involving representatives of concerned joint chambers and those of embassies/ high commissions, for such sessions could better reflect upon the achievable targets and play a positive role of communication with the private sectors of Bangladesh as well as those of the participating countries. In this context, the government may come forward to help and support bona fide chamber open separate research cells to further facilitate inter-trade between the associated countries. Prime Minister Sheikh Hasina said recently, "Basically, Bangladesh is far behind in research. It's not possible to reach the optimum level in any sector without research. We'll provide all sorts of cooperation for research." Needless to say, to achieve the goal of vision-2021, strategies should be devised and action plans be formulated accordingly and the joint chambers could be the effective partners in such strategies.
The writer is a former civil servant. He can be reached at e-mail: hafeej2002@yahoo.com
By the term "joint chambers" we generally mean trade chambers involving bilateral or multi-pronged participating countries. The mission of a joint chamber should be to support and strengthen business and economic cooperation between the concerned countries. This is a broad mandate, to be sure, but one that befits an organisation that serves as a commercial bridge between two or more countries. It is expected that the joint chambers in general provide such services as Access, Business Facilitation, Advocacy and Professional Advancement (ABFAP). Joint chambers are required to lead or receive dozens of high-level delegations, co-host events almost on a regular basis, provide public platforms for VIPs visiting from the region, go on a bat for many of the members and offer commercial services designed to help member companies win and retain business. In broad terms, joint chambers perform a wide array of value-added services to the members and at the end it all comes down to partnerships. As they say, "One hand alone cannot clap." With this in mind, the joint chambers should extend the hand of partnership not only within the associated countries but sometimes also without.
There are over sixteen joint chambers in Bangladesh which include American Chamber of Commerce (AmCham), Canada-Bangladesh Chamber of Commerce and Industry (CanCham), India-Bangladesh Chamber of Commerce and Industry, German-Bangladesh Chamber of Commerce and Industry, France-Bangladesh Chamber of Commerce and Industry, Japan-Bangladesh Chamber of Commerce, Korea-Bangladesh Chamber of Commerce and Industry. However, while some of our joint chambers are playing a crucial role in augmenting inter-trade and investment, there is growing criticism against many, for it is believed that the office-bearers of the latter group spend most of their times in purposeless luncheon or dinner meetings and pose for photographs along with foreign dignitaries just to get media publicity. As a matter of fact, the joint chambers' primary role is supposed to be trade facilitation. They should literally introduce companies to opportunities and show them how to do the deal. It is dramatically different than what governments generally do. While governments promote, joint chambers facilitate. Joint chambers may also be acting as unofficial envoys in furthering the cause of cooperation in trade and commerce. In order to perk up awakening among local business community and to improve trade relations between the participating countries, joint chambers should routinely organise seminars and workshops and reception to resourceful persons from within the country and without, in cooperation with the respective high commissions/embassies at Dhaka. The prime object of all these seminars and workshops should be to create a favourable investment climate and branding Bangladesh to attract investors.
Meanwhile, the Bangladesh economy has performed remarkably well despite the global economic crisis and the macro-economic indicators are in good shape. This relative stability helped put Bangladesh in the limelight. Bangladesh figures in a select group of countries that have emerged from the shocks of the global economic crisis with a decidedly positive growth outlook. Although, due to the commodity price crash, value of imports dropped slightly and capital machinery imports also declined indicating sluggishness in the manufacturing sector investment, the resilience of RMG and textiles sectors helped to prop up export receipts. Besides, the key source of funds in the foreign exchange market continued to be the wage-earners' remittance, which has grown at an average rate of 17% since 2001 and surged to 32% reaching a record high of nearly US$10.72 billion in 2009. Remittances by our migrant workers contribute 12% of the GDP, which is six times higher than the foreign development assistance and eleven times more than foreign direct investment. The country's foreign exchange reserve crossed $11.02 billion mark on July 8 for the first time, thanks to a robust growth of inward remittance as well as gradual development in our exportable products. It is quite heartening to note that the country's export earnings are steadily coming out of a negative trend as the export earnings in March 2010 marked 18.38% growth compared to the same month of the previous fiscal year. According to the statistics available at the Export Promotion Bureau, the actual export earnings for the period were $10.02 billion against the $11.29 billion target.
The Bangladesh government has made some headway improving the climate for foreign investors and liberalising the capital markets. Organisations such as the joint chambers have a definite role to shore up the public policy, improve bilateral ties leading to fruitful Foreign Direct Investment (FDI). The joint chambers could be particularly effective in researching new markets for investment, leading trade delegations to meet with government and business officials and ultimately helping businesses taking full advantage of the existing opportunities. In a recent press report, it was stated that out of the 16 commercial wings of Bangladesh's diplomatic missions abroad, only seven wings achieved their export targets. Of pertinence, I would suggest that while fixing export targets, the concerned ministry may take the respective joint chambers into confidence and arrange review session for fixing export targets involving representatives of concerned joint chambers and those of embassies/ high commissions, for such sessions could better reflect upon the achievable targets and play a positive role of communication with the private sectors of Bangladesh as well as those of the participating countries. In this context, the government may come forward to help and support bona fide chamber open separate research cells to further facilitate inter-trade between the associated countries. Prime Minister Sheikh Hasina said recently, "Basically, Bangladesh is far behind in research. It's not possible to reach the optimum level in any sector without research. We'll provide all sorts of cooperation for research." Needless to say, to achieve the goal of vision-2021, strategies should be devised and action plans be formulated accordingly and the joint chambers could be the effective partners in such strategies.
The writer is a former civil servant. He can be reached at e-mail: hafeej2002@yahoo.com