Part Four

Infrastructure financing challenges and capital market development
Ifty Islam
On a number of fronts, developments in recent years in Bangladesh's capital markets give grounds for optimism. With the successful IPO of Grameenphone (GP), market capitalisation has risen to $ 27 bn (30% of GDP) versus $ 3.2 bn and 6% just 5 years ago. Turnover has increased by a factor of 30 times over the same period to around $ 140mn daily. While foreign participation in the equity market remains low at around 1%, this lack of effective integration into global financial markets was undoubtedly a blessing in disguise in shielding Bangladesh from the bulk of the spillover from the Global Financial Crisis of 2008/09.
Why is capital market development important? At a conceptual level, a number issues has been highlighted in the academic literature. As Torre and Schmuckler outlined in " Emerging markets and Globalization" financial development can boost growth through several channels. Capital markets would enhance financial sector efficiency by introducing competition to the commercial banking sector, which in many developing countries charged high intermediation spreads. Securities markets would further provide a mechanism for the efficient valuation of assets. Well functioning securities markets would create liquidity in financial claims and allocate and diversify risks efficiently. In the process, securities markets would reduce the cost of capital, enabling larger economy-wide savings and investment. Domestic capital markets were also often seen as the missing bridge to long-term financing in local currency.
They go on to highlight that a barrage of reforms was implemented in emerging economies to foster the development of local capital markets. These reforms can be grouped in four categories: (a) reforms aimed at creating the enabling environment for capital markets-such as the strengthening of macroeconomic stability and the enforcement of property rights; (b) reforms aimed at enhancing efficiency and market discipline in the entire financial system through greater competition-such as capital account liberalization; (c) reforms indirectly supportive of capital market development-such as pension reforms and privatization programs; and (d) capital market-specific reforms-such as the development of the regulatory and supervisory framework and improvements in securities clearance and settlements systems.
Drawing on some of the work from Marvin Goodfriend, Professor of Economics at Carnegie Mellon University one can characterize the evolution of corporate financing needs and strategy, and implicitly the growth of capital markets in developing economies, as follows: In the earliest stages of economic development, firms finance investment by building up savings from internally generated funds. Self-funding is supplemented by loans from close relatives, extended family members, friends in the community and the like. Such "inside" funding overcomes information and credibility problems, and provides an incentive for owners to use the funds energetically, as promised. The borrower is bonded by its close relationship to family and community. Indeed, close relationships monitor the borrower's behaviour and can enforce discipline on the borrower if need be.
As an economy develops, self-funding and inside funding become insufficient to finance firms that must manage complex production processes and serve broader markets. Firms must attract additional financing from external sources. Banks arise to provide information-intensive external funding, and, in effect, recreate the kind of information, bonding and monitoring that come with family relationship lending, only with more funding. The cost of external funding through banks involves credit evaluation, loan monitoring, and a component to allow for the risk of default and the cost of managing a default if it occurs. These costs of external finance create an external finance premium that a borrower must pay over and above the opportunity cost of self-funding or funding from close associates.
As an economy continues to develop, some firms need increasingly large external funds. Firms that are widely known can bypass information-intensive bank lending and access lenders directly with corporate bond funding. In the 19th century, railroads were among the first large-scale enterprises in the United States to borrow directly with long-term corporate bonds. Railroads were able to utilise direct bond finance because they had a relatively transparent public image and a physical capital structure (railroad tracks and cars) that was relatively easy to monitor. Hence, railroads reduced their external finance premium by borrowing directly from the public.
Too much reliance on bank loans or direct bond finance, however, exposes a firm to excessive risk of bankruptcy in the event of default. Hence, in developed economies firms have come to rely on a portfolio of external finance that usually includes substantial equity, as well as bond and bank loan finance. Equity finance gives a firm financial flexibility in the choice of the payment of dividends - flexibility that a firm can utilise to avoid default on bank loans or bonds. Outside equity, however, involves a cost of its own: too much of it blunts the incentive of managers to run a firm efficiently because external ownership allows managers to retain only a fraction of every dollar of value they create for the firm above revenue needed to pay off fixed obligations, which include debt and fixed salaries. Therefore, equity, bank loans and bonds generally coexist in the capital structure of modern corporate borrowers.
Looking ahead, there are clearly a number of challenges both our capital markets regulators and market participants will need to address if our financial markets development is to continue. On the supply side , more companies need to be persuaded to come to market and follow GP's lead. In this context, there is still a lively debate ongoing between on the recent finance ministry's proposals for a 40 per cent minimum IPO float. It seems that more telecom companies will enter the market but the government needs to kickstart the privatization process to add to the pipeline of new large and liquid stock offerings. Companies already listed also need to be incentivized to increase the free float of their stock. On the demand side, the primary need is to increase the institutional investor base and move away from a market that is 75% retail dominated. The SEC's decision to increase the number of asset management license is a welcome step in this process. But there needs to be greater transparency of performance between asset managers to allow investors to choose as well as a move away from closed-end to open-end mutual funds. There should also be greater encouragement of asset managers to innovate in terms of offering new products that ensure exposure to different asset classes of varying degrees of risk.
There is a widespread consensus that the primary constraint on achieving 8% + growth is infrastructure bottlenecks in both power and transport. Moreover, there has been a re-newed focus on private sector financing for power generation. A committee has been formed to outline a "rapid strategic plan" to raise up to $ 10 bn from the private sector to finance 7000 MW of electricity generation over the next 5 years. There has been a great deal of enthusiasm, and indeed optimism, from some in the private sector with DSE President Rakibur Rahman suggesting Tk 20,000 crore can be raised from the stockmarket. But given the limited success in large-scale private sector infrastructure financing achieved in Bangladesh to date, we believe a careful assessment needs to be made on the institutional and regulatory reforms that need to be made to increase the prospects for substantive and sustained improvements in private sector financing capacity for infrastructure. India, Malaysia and a number of other countries in Asia have made some noteworthy progress in this area and we believe some lessons are relevant to Bangladesh.
There is the need to push insurance companies to become much larger participants in the capital markets in terms of being long-term investors in the stockmarket and also infrastructure investment. This will require regulatory changes as well as fiscal incentives. But insurance companies, with long-term liabilities, ought to have a "natural" appetite for long-term assets such as those of infrastructure. Similarly, developing a funded pension fund industry in Bangladesh will also be critical to increase the institutional investor base for the capital markets and also provide sizeable long-term funds for infrastructure investment.
Underdeveloped debt markets are yet another key constraint to infrastructure financing, given that most infrastructure projects begin to generate profits in 10-15 years and require longer term debt. The virtual non-existence of Bangladesh's corporate bond market is associated partly with the lack of depth in the government bond market and the absence of a yield curve for government bonds which could serve as a benchmark for corporate bond. Beyond that, corporate debt markets are constrained by a lack of liquidity and well functioning secondary trading; almost no market makers; inadequate credit information; poor and lengthy enforcement laws relating to default proceedings; and the absence of long term investors.
Some of the key drivers of corporate bond market development include: 1) Free flow of capital and market-based interest rates, legal frameworks, bankruptcy reform and investor protection, corporate governance standards to mitigate wasteful agency costs, and control premiums to reduce the cost of corporate borrowing; 2) Provision of stable and reliable government benchmark yield curves even when governments are running a surplus (the Australian and the US experiences are illustrative of the benefits of this policy); 3) Broadening the investor base through the creation of bond funds.
Other areas for development include increasing the availability of risk capital. In this context, an enabling environment to support the growth of the Private equity Industry will be important. There are strong grounds for believing that the development of the Private Equity (PE) industry can play an important role in both improving access to capital, as well as sector diversification, but also in introducing global best practice into a number of industries. The dominant themes we hear from leading Bangladeshi corporates is their desire to globalize and diversify. PE can be the catalyst.
In conclusion, we are in the fortunate position of enjoying a surplus net savings level of 5% of GDP so in that sense we are not capital or finance constrained. What we need is an effective financial system and indeed intermediation process to channel these funds into areas such as infrastructure financing. While Bangladesh's capital markets have made encouraging progress in recent years, there are significant challenges, and indeed opportunities in the next phase of development. Success in this area will be a key enabler to ensure Bangladesh can move to a higher 8%+ growth trajectory as one of the next Asian Tigers.
(Ifty Islam is the Managing Partner of AT Capital and welcomes feedback at ifty.islam@at-capital.com )





The invincible fort of capitalism
Enayet Rasul Bhuiyan
This writer remembers a time in the mid sixties when the Naxalbari movement was sweeping parts of India. The naxalites as they were popularly called, had a particularly well entrenched position in the state of West Bengal. In the name of class war in line with so called communist doctrines, the naxalites were murdering without any sensitivity whatsoever propertied persons in that Indian state. When this was going on in India, the radical movement was also growing its offshoots in neighbouring Bangladesh. This writer chanced to know some of them who lived in his neighbourhood. He used to have chats with them now and then.
One day, while talking to them, I asked some of these Naxalite acquaintances of mine whether they ever cared to check out their ultra Marxist beliefs with the reality obtaining in the world. For example, I asked them what they had to say about the inevitability of the withering away of capitalism and free market operations as Karl Marx had declared with absolute surety in his epochal work, Das Capital. According to Marx, the capitalist system based on unchanging exploitation of working people would unavoidably create the seeds of its own destruction. With workers more and more finding their exploitation unbearable manifest in lower and lower standard of living for them, they would one day surely rise to obliterate their oppressors to establish their pure brand of socialism where private properties would be abolished and the interests of workers in all respects would be ensured and promoted.
I then told them that Marx's prophecy about the certainty of revolution and triumphant workers establishing their own exclusive creed, was not happening. Japan at the time under discussion had evolved as the economic super performer in Asia. I pointed out to them that capitalism had reached its peak in Japan but according to Marxist projections, the same did not lead to greater exploitation of the workers. The workers in Japan on the whole had only experienced immensely higher purchasing power and the consequent higher standard of living from progressively much increased inflation adjusted salaries and wages. Thus, the contended workers under capitalism in that country found it worthwhile only to help perpetuate that system with their more dedicated work as a happy lot disproving the Marxist idea of the sure to happen revolution as capitalism flourished .
To my question, my Marxist respondents hardly had anything credible to say. Only they said that some more time should be allowed for this revolution to occur in Japan. Some four decades have passed away since I had this chat. In this period, Japan grew to be the second biggest as well as strongest economy of the world and the lot of the Japanese workers have only gone on improving in this time span while in parallel their capitalist bosses got richer and richer. But the two continued to have a reasonably happy, collaborative and peaceful relationship like a hand in a glove. So, I think, if I could find these communist acquaintances of mine and the opportunity to quiz them on the same issue now, they would have nothing to say if they should want to be sensible.
Why I am discussing so much history is for the simple reason that capitalism, private enterprising and private ownership of property and wealth, all these are so much ingrained in human psychologies or basic instincts, that no ideology with economic underpinnings can be quite successful in trying to banish them. Human greed, individualism, individual entrepreneurship, the craving for wealth, etc., are so much inseparable part of humankind--everywhere--that no socio-economic-political system can endure in the long run ignoring these basic human motivators. The utopia of classless society with surrendering of individualism or individual aspiration for property or wealth at the altar of the all engulfing Marxist state that we witnessed in the form of the Soviet Union, had a short lease of life for only 70 years. The Soviet system and its replicas in other parts of the world collapsed quickly following the near total loss of appeal of the Soviet economic and political model from the nineties onwards. China is now headed to become the world's biggest or strongest economy at an early date in the present century. But this dizzying economic success story of China started only after it gave up its Marxist economic straightjacket.
The facts are capitalism, wealth, greed as the motivator of needed economic activities, all these have prevailed for thousands and thousands of years. The same can be considered as old as the total history from man's appearance on earth till now. Thus, Marxism and its variants have been sub-cultures at best for a relatively very brief period of time and this has been because of the inherent incompatibility of these concepts with the basic instincts of humans.
Even All Mighty Allah in the Holy Koran has ordained the system that He wishes mankind to adopt and practice. There is nothing in the Holy Koran about not owing property privately or against private initiatives to create wealth and enjoy the same. The Holy Koran only urges the faithful to realize their obligation to part with a small part of their surplus possessions towards alleviating the distresses of people or their poverty. Thus, one may understand from this that the All Mighty Himself is in favour of individual wealth and entrepreneurship. Allah has created mankind with such a design.
A section of former Marxists and others, some of them well entrenched in the present ruling establishment, are found trying to revive socialism in Bangladesh. They are getting encouragement in this from the crisis that has gripped western capitalism and the growing role and intervention of the state under the justification that the same is necessary under the circumstances. But the Marxists in Bangladesh fail to see that capitalism is far from being dead or that it will not be given up shortly in the western or developed countries. They may know it but do not admit that what is presently going on in these countries is a correction phase of capitalism. It is very likely that the system based on human greed, capitalism and private efforts, will be only the stronger at the end of this cleansing and corrective phase. Therefore, there is no scope really for our Marxists or socialist sympathizers to read too much in the state's intervention in western economies.
Ministers of the ruling party in Bangladesh are seen frequently commenting and acting these days that suggest that they are keen for the restoration of socialism or state controls of the economy. Instead of promoting privatization enthusiastically, they are seen trying to turn the clock back with announcements and actual steps taken to restart closed down state owned enterprises (SOEs). Privatization moves and encouragement of the private sector that delivered so much good to the Bangladesh economy and helped in its growth and flourishment since the mid seventies, are seen to be under an axe and threatened with reversal back to the days of state controls. But these are short-sighted policies and the Bangladesh economy could suffer in the long run from the regression. So, it is only timely to ring the bell to warn against these developments which are putting the long term macro- economic management of the country under stressors, afresh.




Endeavours to build global hope: Chinese Premier's 60 hours in Copenhagen
Zhao Cheng and Tian Fan
On Dec. 16, Premier Wen Jiabao left Beijing for the climate summit in Copenhagen, Denmark, "It will be a tough task. Now I can feel how heavy my duty is to attend the meeting on behalf of the Chinese government," Wen told reporters aboard his plane en route to Copenhagen. "As so many world leaders are gathered there, I believe there should come some achievements," he said. "No matter what the result is, China's action plan will not change, its voluntary reduction target will always be non-negotiable, and its determination in hitting the target will never waver."
Premier Wen's schedule on Dec. 17 was almost fully occupied by meetings with world leaders.
During the meeting with Danish Prime Minister Lars Lokke Rasmussen, Wen suggested that all parties should stick to the consensus they had reached while leaving differences for future negotiations.
In his talks with UN Secretary-General Ban Ki-moon, Wen proposed to formulate a political document that may reflect the consensus of different parties. When meeting with Brazilian President Luiz Inacio Lula da Silva, the two countries agreed to firmly stand with other developing countries to safeguard their common interests.
The Chinese premier's meeting with representatives of island countries and underdeveloped nations lasted for over two hours, the longest during his stay in Copenhagen.
Wen said although China had always urged developed nations to fulfil their funding commitments, China would not vie for even a cent with other developing countries if such a fund were available. In addition, China would continue to assist those countries to cope with climate change, Wen told President of the Maldives Mohammed Nasheed, Prime Minister of Grenada Tillman Thomas, Ethiopian Prime Minister Meles Zenawi, Bangladesh Prime Minister Sheikh Hasina, and Sudanese Presidential Assistant Nafie Ali Nafie.
Wen's whirlwind negotiations that afternoon also involved British Prime Minister Gordon Brown, German Chancellor Angela Merkel and Japanese Prime Minister Yukio Hatoyama.
On the second morning of his stay in Copenhagen, Wen met with Indian Prime Minister Manmohan Singh.The two countries agreed to firmly defend the interests of developing countries.
At 9:45 a.m., Premier Wen arrived at the main venue of the conference, 15 minutes earlier than the scheduled opening. However, nobody was present even at 10 a.m. No explaination was given by anyone.
It was until 11:30 that Danish Prime Minister Rasmussen announced the opening of the summit. Premier Wen was the first to deliver a speech, titled "Build Consensus and Strengthen Cooperation to Advance the Historical Process of Combating Climate Change." Wen made it clear what China thought, did and would do to cope with climate change. At the end of his speech, Wen said, "It is with a sense of responsibility to the Chinese people and the whole mankind that the Chinese government has set the target for mitigating greenhouse gas emissions. This is a voluntary action China has taken in the light of its national circumstances. We have not attached any condition to the target, nor have we linked it to the target of any other country." "We will honour our word with real action. Whatever outcome this conference may produce, we will be fully committed to achieving and even exceeding the target."
After U.S. President Barack Obama's speech, Premier Wen held talks with him. The two leaders agreed that the conference should achieve a political resolution as soon as possible.
Developing and developed countries discussed the final document, but failed to make any progress, even when the Copenhagen climate change conference was scheduled to conclude hours earlier.
At this moment, it was Premier Wen who played a key role in the last-minute attempt to exchange ideas and reach consensus.
"As long as there is hope of one per cent, we should not give up and must instead make 100 per cent of effort," he told the Chinese delegation.
Wen decided to meet other leaders of the BASIC countries again and make a final attempt. At the same time, President Obama said he wanted to have a second meeting with Premier Wen. Wen agreed.
The BASIC countries leaders agreed to reach consensus on key issues first and then negotiate with the United States and European countries on the basis of safeguarding interests for the developing countries and with the highest degree of flexibility.
At 6:50 p.m., when the BASIC leaders were reviewing their final common position, President Obama showed up. Premier Wen politely invited Obama to join them. Premier Wen made clear the position of BASIC countries on several key issues. Obama briefed the leaders of BASIC countries about the latest U.S. stance. Applause were heard before long as the BASIC countries finally reached agreement with the United States on the wording of some key issues. After some time, all parties concerned agreed on the draft and were ready to submit it for a voting at the conference. It was already nine hours after the scheduled conclusion of the conference.
The achievement was a result of joint efforts by all the participating countries other than out of the will of one or two countries. Copenhagen witnessed what a role China played in this complicated and tough process.
There have been different interpretations on the outcome of the Copenhagen climate talks, but people have to recognize that international cooperation to cope with climate change has moved a step ahead on the right direction, through the joint efforts of the international community. It delivered hope and confidence to the world. In this process, it was China that showed the greatest sincerity, tried its best and played a constructive part.
Another write-up adds: The Chinese Premier, Wen Jiabao, attended the high-level event of the UN Climate Change Conference in Copenhagen, Denmark on December 17-18.
Climate change bears on human survival and development. The Copenhagen Conference offered an important opportunity for such international cooperation. Thanks to the concerted efforts of all parties, the conference produced important and positive outcomes. First, the principle of "common but differentiated responsibilities" established by the United Nations Framework Convention on Climate Change and its Kyoto Protocol was firmly upheld. Second, new and solid steps were taken in relation to the mandatory emissions reductions by developed countries and voluntary mitigation actions by developing countries. Third, broad consensus was reached on such focal issues as the global long-term target, financial and technological support, and transparency.
During the two days in Copenhagen, Chinese Premier Wen delivered an important speech at the high-level event and had extensive contact and coordination with other leaders. He made the utmost effort and tried every possible means to move forward the negotiations along the right track, thus playing a critical role. China, with its sincerity, resolve and confidence, made important contribution to strengthening international cooperation on climate change at Copenhagen, and displayed the image of a responsible big country committed to development and cooperation.
First, upholding principles and maintaining the foundation of international cooperation on climate change
In his address at the Copenhagen Conference, Premier Wen Jiabao highlighted the following principles that all should observe in addressing climate change: First, maintain the consistency of outcomes. The outcome of the conference must stick to the basic principles enshrined in the Convention and the Protocol. It must follow rather than deviate from the mandate of the "Bali Roadmap". It should lock up rather than deny the consensus and progress already achieved in the negotiations. Second, uphold the fairness of rules. The principle of "common but differentiated responsibilities" represents the core and bedrock of international cooperation on climate change, and it must never be compromised. Third, pay attention to the practicality of the targets. In tackling climate change, we need to take a long-term perspective, but more importantly, we should focus on the present. We should focus on achieving near-term and mid-term reduction targets, honoring the commitments already made and taking real action. Fourth, ensure the effectiveness of institutions and mechanisms. We should make concrete and effective institutional arrangements under the Convention and urge developed countries to honour their commitments, provide sustained and adequate financial and technological support to developing countries, and take credible steps to help developing countries counter climate change."
"Second, enhancing communication and making strenuous efforts for positive outcomes of the conference," he said.
Before going to Copenhagen, Premier Wen held telephone conversations with leaders of India, Brazil, South Africa, Ethiopia, Denmark, Germany and the United Kingdom and the Secretary-General of the United Nations for a candid and in-depth exchange of views on matters of major importance.
Upon his arrival in Copenhagen, Premier Wen engaged in intensive shuttle diplomacy and talked to other participants in a candid, pragmatic, thoughtful and patient manner. He made the case that, it was imperative for all countries to bear in mind the larger picture, proceed from the reality, accommodate each other's concerns and adhere to the principle of "common but differentiated responsibilities". He called on all parties to build consensus quickly in a spirit of seeking common ground while reserving differences and push forward in an effective way the negotiation process, thereby sending a message of hope and confidence to the world.
Premier Wen met with leaders of other BASIC countries on multiple occasions, stressing that we should enhance solidarity and coordination, always stand up for developing countries and strive for maximal interests for developing countries.
The small island states, least developed countries and countries in Africa are most vulnerable to climate change and have special concerns on financing and global temperature control. Premier Wen showed full understanding and sympathy to the leaders of these countries and gave staunch support to their legitimate demands. He also stated China's willingness to continue to provide them with support and assistance to the best of China's ability within the South-South cooperation framework and through bilateral channels.
Premier Wen also worked actively with his Danish host, Prime Minister Lars Lokke Rasmussen and UN Secretary-General Ban Ki-moon.
The Chinese Premier Wen expressed the hope that they would listen to the views from all sides and uphold justice by taking seriously the concerns of developing countries. He said it was of particular importance to follow the principles of fairness, openness and transparency in effectively moving forward the drafting of and consultations on the outcome document.
Third, building trust and dispelling misgivings to deepen international understanding and support for China
China has made tremendous efforts to tackle climate change and its notable achievements have been widely acclaimed by the international community. But there are some people who have misunderstandings and misgivings about China and have raised unreasonable demands on China. They have pressed China to undertake mandatory emissions reduction commitments, claiming that China's emissions reduction measures are not strong enough. Some have asked China to place its voluntary mitigation target under international verification, and even pressed for a linkage between China's voluntary target and the provision of financing by the developed countries to the developing countries.
Premier Wen responded to the pressure with calm and illustrated China's effort in tackling climate change with facts and reason. He stated that China was the first developing country to adopt and implement a National Climate Change Programme, China has made the most intensive efforts in energy conservation and pollution reduction in recent years, China has enjoyed the fastest growth of new energy and renewable energy and China has the largest area of man-made forests in the world. China's climate efforts do not pale in comparison with those of any developed nation.
Premier Wen also pointed out that China is still a developing country and it faces the arduous task of developing the economy and improving people's livelihood. "China is at a critical stage of industrialization and urbanization. With coal being its primary source of energy, China is confronted with special difficulties in reducing emissions. It will take tremendous efforts for us to cut CO2 emissions per unit of GDP by 40-45% by 2020 from the 2005 level. What we have undertaken to do are voluntary mitigation actions and these actions are subject to the supervision of domestic law and public opinion. China is ready to actively engage in international exchanges, dialogue and cooperation with respect to the release of relevant information. Premier Wen stressed that China's voluntary emissions reduction target is scientific and reasonable. It has no conditions attached and is not linked to the emissions reduction target of any other country. At the same time, our target is non-negotiable."
Tackling climate change is a long and uphill journey. The Copenhagen Conference is not the end. Rather, it is a new starting point. All countries should work tirelessly under the principle of "common but differentiated responsibilities" to honour their respective commitments and fulfill their due obligations.
As Premier Wen put it, China will be firmly committed to sustainable development and work hard to meet and even exceed the mitigation target it has voluntarily set for itself. China will continue to work with the rest of the international community and make its due contributions to mankind's historical process of combating climate change.





Global recession stings Bangladeshi migrants
A Z M Anas
Global recession has given Bangladesh a new identity-a recession-proof economy. Today, this nation of 162 million is a darling of development economists who are attempting to unknot the puzzle over why the economy displayed such a rare resilience when much of the world slid into deeper recession not seen in generations. Perhaps, this is yet another emerging "Bangladesh paradox" in the development discourse. Even though the United States was the epicenter of the current crisis, countries around the world also felt its chill, regardless of geography and economic size. The crisis travelled to Asia, too-certainly without passports--and clobbered the continent's major financial markets, resulting in slump in manufacturing, construction and financial services industries. Jobs dried up, growth muted. A true "globalisation of the crisis," indeed! Bangladesh was perhaps among a few economies in the world, which managed to escape the worst impact of the crisis. The economy fared rather well, eking out a growth of 5.9 per cent in the fiscal year 2009. Inflow of migrants' money-known as remittances-remains robust. So are merchandise exports, a key pillar of the economy. But things are not all rosy. The deployment of workers seeking foreign jobs dwindled, expected to be halved this year compared to the last year's outflow. Thousands of migrants were deported by now. Our policy makers became cheerleaders of the country's apparent success, nonchalantly oblivious of the policy response to the return migration induced by the crisis. In fact, it was poor Bangladeshi migrant workers, most of whom toil for average $1.0 per hour, were the greatest casualty so far of the global downturn.
Jobs disappear for migrants
It's not uncommon that employment scopes squeeze and workers lose their jobs during the economic crisis. The global crisis deepened at a time when Bangladesh just broke a new record in sending 875,000 workers abroad, the highest in its history. But that number almost halved so far this year as the country's traditional manpower markets faltered. The UN's International Labour Organisation (ILO) estimates that unemployment will increase from about 190 million in 2007 to 210 million by the end of 2009. The Paris-based OECD's forecast is more alarming: the jump in unemployment in the OECD countries may climb up from 34 million in 2008 to 42 million in 2010, with little or no net new job creation in 2008 and 2009 in the world's major industrial economies. But the taboo topic in the international diplomacy is the bias against migrant workers who lose jobs first. Also, the world's migrant's community faces the harshest xenophobic assault during the economic crisis. The bulk of Bangladeshi migrant workers are concentrated mainly in wealthier Asian nations, with Saudi Arabia alone hosting as many as two million Bangladeshis. There was no reliable statistics on how many Bangladeshi workers lost their jobs abroad during the 2008-2009 recession. Immediately after the crisis, the international media reported on the job loss of foreign workers in Malaysia, Singapore, Saudi Arabia, South Korea and Dubai. Even those who were lucky enough to stay, did so with pay-cuts. Some were forced to work with the promise of deferred payments, others agreed to work without pay, fearing the deportation and expecting the potential recovery. Instances of forced leave were also galore. This was the scenario for Bangladeshi non-resident workers, the bulk of whom are blue-collar ones.
Unwholesome U-turn in migration
According to statistics of the state-run Bureau of Manpower, about 68,000 Bangladeshi workers returned home between January and November. Countries in Asia, which host 92 per cent of Bangladeshi workers, deported the bulk of workers during the period. Saudi Arabia, Dubai of the United Arab Emirates, Singapore and Malaysia led the deportation drive. The Malaysian government went one step further, canceling 55,000 calling visas for Bangladeshis. Some Bangladeshis also came back from Europe, notably Italy and Spain. Mauritius also announced that it would send back 30,000 Bangladeshis employed in the clothing industry of that nation. South Korea's flagship and widely acclaimed Employment Permit System also threatened to founder, due to the export-reliant economy's own crisis. A comparison between the number of return migrants and the total stock of non-resident Bangladeshis, not alarming emigration rate and the continued buoyancy in remittances inflow really mask the reality: huge cost of return migration. The figure of return migration may be low, but it has serious social and economic implications. It's not that the return of migrants will slow down the vital flow of precious foreign currency. More importantly, it will put additional burden on the already-strained domestic job market. How can Bangladesh cope with? It remains a million-dollar question.
One year into the crisis, this nation is in real trouble so far as its overseas employment is concerned. Except the potential opening in the war-torn Iraq, the present government failed to search for new job markets. The country's foreign missions seem to have taken the matter to be a routine affairs and the old style of diplomacy is going on. The Foreign Ministry is also facing a crowded political agenda, with the agenda for exploring new job markets languishing in the back burner. Unless the government handles the migration issue with the urgency it deserves, the country's competing nations such as India, Sri Lanka, Nepal and the Philippines will grab their cakes in the global job market. We should wake up to the reality why Saudi Arabia and Kuwait have suspended fresh recruitment from Bangladesh for years, even if the oil-rich Arab country takes in workers from Nepal.
Remittances flow: A bewildering phenomenon
An astonishing, also puzzling, thing has emerged from the global recession is that Bangladesh's remittances flow has grown by 16 per cent, although top recipient nations experienced sharp decline in the flow. Naturally, remittances flow is supposed to go down with the fall of deployment of workers in a certain year. But the flow has increased and still increasing in Bangladesh instead.
Remittances are the crucial pillar of Bangladesh economy and the World Bank has estimated that they shot up at an average annual rate of 19 per cent in the last 30 years (1979-2008). Robust remittance inflows in recent years (annual average growth of 27 per cent in FY06-FY08) have been instrumental in maintaining the current account surplus despite widening a trade deficit. This in turn has enabled Bangladesh to maintain a growing level of foreign exchange reserves.
Dr. Zahid Hossain, of the World Bank, said the major portion of the remittances is sent by Bangladeshi migrant workers rather than members of the members of the diaspora community.
In an interesting analysis, he predicts that remittance will grow by 12.4 per cent, reaching $10.76 billion, if we are able to export another 610,000 workers (annual average of 2006-2008) in FY10, providing oil prices stay at around $70 per barrel and GDP growth of 5.5 per cent. But in terms of base case, he estimates remittances will grow by 10.2 percent, reaching $10.55 billion, if the outflow of migrant workers in FY10 reverts to levels observed before the recent oil price boom-350,000. So it is a thought-provoking analysis, providing a futuristic guideline for the government to chart the policy path.
It's a pertinent question what are the factors behind the remittances boom in Bangladesh? Philip Martin, of University of California, Davis, has sought to find that answer in a recent paper, presented at the Global Forum on Migration and Development in Greece. He says that the permanent return of Bangladeshi overseas class or their return for extended periods may be one of reasons why remittances flow remained strong last year and so far this year. Such returns provide a one-time boost to remittances. The bewildering phenomenon seems to have captivated the World Bank too, which plans to carry out a study on why Bangladesh's remittances inflow was unhurt in the midst of global downturn. What can the government do about it? It requires formulating a policy so that the government can better utilise this foreign currency.
Conclusion
Despite the remittances boom, Bangladesh economy is set to face the next jittery of the global recession. It can't be said how deeper the magnitude will be. The Asian Development Bank (ADB) has projected that Bangladesh's growth is expected to slow to a crawl at 5.2 per cent in 2010 financial year, lowest in eight years. This projection, may be uncertain, should come as a warning for policy makers and also serve as a reminder that the robust flow of workers' money is not enough to salvage the economy from the ditch. Return migration may appear to be a bane, but at the same time it can be a boon. Returning migrants will bring with them not only financial capital but also social capital, which includes networks and skills. Currently, Bangladesh is facing serious dearth of skilled manpower in every sector of the economy. Time is opportune to harness the skills of returned migrants. They should be offered opportunities to invest and reintegrate with the community. Human mobility is a historic phenomenon. Nothing can wean migrants away from searching for better life and livelihoods. Migration experts say the current crisis has spawned another new event: Great return migration since the first Great Migration in the 19th century. Other policy options include strengthening Bangladesh's foreign missions to look after the welfare of migrant workers and lobby the host governments to better protect the interests of an estimated 70 million Bangladeshi migrants and diaspora. Another key point is that diplomacy needs to be transformed and overhauled, given the challenges of an increasingly inter-connected world.
Contact: russell_fe@yahoo.com




Focus on Chittagong

Drainage: The most neglected area of city planning
M Ali Ashraf
Formal city planning in this part of the world began with Sir Patrick Geddess producing a Master Plan for Dhaka in 1917. The plan was never implemented. With the establishment of a planning department in erstwhile East Pakistan, now Bangladesh, in the year 1948, planning activities got an institutional beginning. A British consultant was engaged for producing the Master Plans for Dhaka and Chittagong; Khulna was added later on. The Master Plans for Dhaka and Chittagong were produced in the year 1960 & 1961 respectively.
The plans produced were basically zoning maps with very little or no reference to drainage planning. Drainage planning was taken over by drainage engineering without any conscious endeavour to integrate drainage planning with the traditional land use planning process. As a result, engineers built drains, rehabilitated canals, on an adhoc basis, on the basis of existing situation in the catchments they serve. They did not give much recognition to the fact that the lands remaining a flood plain today would be filled and become a jungle of masonry or concrete buildings tomorrow. Very little provisions were made for flood storage. Architects and planners, on the other hand, went ahead with their zoning proposals for housing and industries. They have allowed building in flood plains without providing for the appropriate drainage. Eye-catching layout plans for new residential areas and satellite towns were produced where drainage was given very little importance. While producing a drainage layout for a residential area we simply manage to forget that these drains would be called upon to drain a much bigger hinterland during a rainstorm than the residential area itself. We have designed inadequate and inappropriate sections for our drains.
No matter, whether the road width is 20 feet or 60 feet, our drain width mysteriously remained constant at 2 to 3 feet. We were very generous in building roads and highways but remained equally miser in building primary, secondary or tertiary drains of appropriate size. As a consequence, as expected, drainage became a menace for our cities. Cities in Bangladesh are now paying a heavy price for it. Even an hour of torrential rain is sufficient to inundate low-lying areas of our major cities.
Last year, 1/3rd of the city of Chittagong went under water during the rainy season. There were areas where water remained stagnant for days together causing serious inconvenience and financial loss to the city dwellers. Unlike Dhaka, Chittagong with hills around could have ensured an efficient drainage system. But, very unfortunately, an appropriate storm water drainage system in Chittagong is yet to be implemented.
In a recent survey in Chaktai Commercial Area, a major seat of trade and commerce in Chittagong, only 14.29 per cent of the people interviewed were found to be living there for ten years and more. 52.38 per cent people are living there for four to six years while 33 per cent people are living for only 3 to 1 year indicating that the business community in Chittagong, unlike in the past, are not finding Chaktai a lucrative place for doing business. 45 per cent of the respondents blamed inadequate storm water drainage and water logging as one of the main causes of this decline.
In fact, it is not alone a problem of Chaktai area; it is the problem of the whole city of Chittagong. Drainage and water logging is a major problem, working as a disincentive, discouraging development of Chittagong. Dhaka, too, is in no better shape. Last year, even before the advent of the rainy season, we have seen cars moving through floodwater on Dhaka streets.
Under the circumstances, we must have a change in our thinking; we must have a paradigm shift in policy. A prudent drainage planning must become an integral part of our city planning and development activities. To begin with, the following could be a part of our checklist:
(1) For improving local drainage, tertiary drainage network for all underdeveloped areas and proposed new developments are to be planned in advance preferably following the road network. In the case of tertiary drains, attached to the mahalla lanes, a minimum drain width and depth of 1 foot 6 inches and 2 feet respectively are to be ensured. Depth will be variable depending on the topography of the site.
(2) Following the road hierarchy of the existing city master plans, there should be an approved drainage hierarchy. Provisions for appropriate drainage by the side of all primary and secondary roads are to be made mandatory. If the width of the drainage channel is correlated with the width of the road by a set rule, a lot of confusions can be avoided.
A minimum width equivalent to 1/4th of the road width is to be kept reserved for drainage on both sides of the road for providing primary and secondary drains. Following the aforementioned proposal, if the road width is 60 ft, then total drainage width by the side of the road will be minimum 15 ft. That means, 7.5 ft wide drain is to be provided on each side of the road. If necessary, covered drains can be used with the dual function of a drain and a footpath. There should be provisions for storm water access to these drains from the adjacent roads. Cleaning doors are to be provided at regular intervals. Implementing the above proposal might become difficult in the existing densely-developed areas. But, for all new developments, provisions for drains as proposed above are to be made mandatory.
(3) Since we are basically aiming at gravity flow for drainage and since drainage network preferably will run parallel to the road network, topography and prevailing natural slopes of the area are to be taken into consideration while deciding directional orientation of the proposed road networks in areas opened for new development. If this is done, drains running parallel to the roads will not face the risk of going against the natural slope.
(4) Open channels / canals used for open drainage. We should aim at separating the domestic sewers from the storm sewers. A 20 ft wide service lane can be kept on both sides of a natural canals. At the initial stage, RAJUK / CDA / KDA/ RDA can impose a moratorium on development on this stretch of land, 20 ft in width, on both sides of a canals. Currently all domestic sewerage lines are linked with these canals. Interceptor sewerage lines can be installed in these reserved land. After installation of the sewer lines this reserved land can also be used as a service lane / pedestrian road or a green corridor facing the canals. Canals, once free from domestic sewerage lines, will provide a recreational open space for the city dwellers. Some of these canals may even be used for passenger boat services.
(5) In the event of installation of underground sewerage line, sewer treatment plant near the mouth of these primary canals, with the aim of discharging treated effluents into the river will be required. Site selection and land allocation for the treatment plant will require planning clearance and decision.
(6) Cities should have flood storage ponds at appropriate locations. These ponds can also become a part of the recreational open space in a city. Existing ponds over the size of 0.5 acres are to be preserved with a ban on filling. The ponds can be marked in a land use map and given an identification number. Constructions on the banks of these ponds are to be discouraged.
(7) Dumping of solid waste in the drains is a behavioural problem commonly observed in our cities. Massive awareness campaign is to be launched against dumping of waste in the drains. An incentive scheme, tagged with payment of municipal taxes, can be thought of to encourage people to keep their surrounding drains clean and waste free. City corporations may offer 10 per cent reduction in holding tax to property owners with waste-free surroundings.
A prudent drainage planning and its implementation will save our cities from inundation, which causes financial loss and inconvenience. The sooner our city planners realise it the better it will be for us-the city dwellers.
(The writer is a professional engineer and town planner. He is the Chairman of the Bangladesh Institute of Planners, Chittagong Chapter)





Berth operators facing multiple problems: BOA
FE Special
Berth operators, engaged in cargo and container handling in the jetties of Chittagong port are facing manifold problems including shortage of equipment, dual policy of the Chittagong Port Authority (CPA) and indifference of the port security officials towards anarchic activities of the dock workers.
Fazle Ekram Chowdhury, convener of the Berth Operators Association (BOA), in an interview with the FE, said berth operators need equipment such as cranes, forklifts and straddle carriers under their control to ensure better service to the port.
He said discipline in the handling of cargo has restored partially after the port authority offered 18 forklifts to the custody of the berth operators but we cannot use our full expertise without other equipment such as crane, straddle carrier and large forklift.
We have written to the CPA chairman several times on the issue in the last two years but got no response from them although they are supposed to provide us with the equipment as per agreement, he said.
We told the port authority that handling activities would be expedited if the cranes, straddle carriers and big forklifts are provided under lien in the custody of the berth operators.
The port authority was supposed to constitute a regulatory committee for bringing the workers under direct control of the berth operators. But the CPA is yet to form the committee.
Absence of any regulatory committee has contributed to chaos and unscheduled work stoppage in the jetties.
The berth operators are ready to shoulder the responsibility of maintaining and repairing the operators, he said.
Another problem is that the CPA is maintaining a dual policy regarding management of the labour force.
Saif PowerTech, the berth operator in Chittagong Container Terminal (CCT) is running its activities with their own employed workforce while the CPA compels us to run the handling activities with the workers not under our direct control.
It is a peculiar policy of the CPA for which we are facing a lot of trouble in handling the dock workers. We are paying them but they are not controlled by us, but by outsiders who claim to be leaders of the CPA.
There were 56 master stevedores in the port from amongst whom 12 top operators in terms of experience were chosen in the year 2007 for handling the bulk cargo and container outside the CCT. 16 berth operators were employed at the outer anchorage at that time while the rest operators are co-partners of the 12 berth operators.
Labour unrest on minor issues in the jetties instigated by a vicious circle dominated by outside labourers is another major problem that surfaced over rejoining of the retrenched dock workers.
It has been a constant headache for the berth oper ators and stakeholders of the port since the end of the caretaker government in December 2008.
At least nine incidents of work stoppage took place from January to September 2009 on minor issues and trifling excuses drove the port towards a state of chaos and unrest and paralysed the port operations.
Unloading of cargo from a ship took 6-7 days in the past but it takes only 48 hours now. Berth operating system is a giant achievement of the port.
Vessels don't have to sit idle at the jetties as we are working round the clock with utmost sincerity.
But the vessels' turnaround time (TAT), a benchmark of the port's handling proficiency recorded marginal rise in the port mainly because of labour unrest.
It is often observed that the security personnel are simple onlookers at the chaos and unscheduled work stoppage of the workers. What is the security men employed for? There are a lot of CCTV cameras in the protected area of the port. But the security personnel do not care about helping the berth operators in such cases.




Ctg RMG factories reel under utility services crisis
FE Special
As many as 550 readymade garment (RMG) factories in Chittagong are facing problems in production for acute shortage of power, gas and water. They cannot maintain export schedule either for the same reasons.
Suspension of industrial gas connection for the last six months has slowed down new investment in the sector. Many new garment units are waiting for gas connection after investing a good amount of money in setting up factories.
It is a worse situation. The crisis forced many to close their factories, Nasiruddin Chowdhury, first vice president of the BGMEA, told the FE.
Production in the factories has declined due to irregular loadshedding of electricity. Statistics available from a recent survey in 50 garment factories in Chittagong reveals that these factories have to bear an additional expenditure of Tk 8.6 million (86 lakh) for power deficit of 7804 hours a month.
Chittagong is the worst sufferer of gas crisis although it consumes over 80 per cent of the Bakhrabad Gas Systems Ltd (BGSL). The consumers mainly the industrialists and businessmen, have to travel to Comilla for seeking permission of gas connection and supply of regulator, meter, CMS and even for spare parts, where they have to face untold sufferings due to dillydallying in the head office.
Unless the government takes immediate steps to supply gas from the national grid by improving the gas transmission lines and installation of compressor on an urgent basis with participation of the private sector Chittagong will remain deprived of gas supply to its industrial units leading to closure of hundreds of garment units in the region, Chowdhury said.
RMG sector being the biggest earner of foreign exchange deserves special attention of the government. So the government's prime job would be to build adequate infrastructure facilities to save the RMG sector and attract buyers from abroad.
Shortage of power and gas supply to production units, lack of direct flights between Chittagong - Bangkok and Chittagong - Singapore, absence of any 5-star hotel in the city, lack of tourism facilities - all these lead to the apathy of buyers from abroad.

Many international airlines including the Thai Airways introduced direct flights from Chittagong. But they rolled up their business long ago. It is our government which can take necessary steps to facilitate operation of all major international direct flights including Thai Airways and Singapore Airlines from Chittagong.
Alongside these infrastructural problems the RMG manufacturers are in trouble as buyers from Europe and America are cutting quotas and slowing purchase due to their sluggish economic recovery from the recession.
Chowdhury said, the RMG factories are also facing troubles in exporting their products for want of a full-fledged Customs Bond Commissionerate in Chittagong. Monitoring of export and import activities in the sector is being severely hampered.
The garment-related files, delivery of new bond licence, permission for shipment of expired stock lot, permission for attachment of banks and other relevant papers are not being done quickly at the Bond Commissionerate in Dhaka.
The NBR had approved a separate Bond Commissionerate for the RMG sector five months back. But no commissioner was yet been posted in Chittagong, he alleged.




Steel industry far off the mark despite all potentials
FE Special
Steel manufacturers have the capacity to meet the country's demand for steel products but the main problem that obstructs production in the industry is the shortage of power, gas and water in production plants.
Aameir Alihussain, Managing Director of BSRM Steels Ltd, a pioneer in steel manufacturing, made the observation in an interview with the FE recently.
He said the steel industry has grown larger over the last few years but the infrastructure facilities have not. However, the industry may become vibrant if the government moves towards installing new power plants.
Chittagong having an installed capacity of 600 megawatts of electricity now generates around 250 megawatts due to shortage of gas supply, he added.
As power projects are capital intensive and smooth power supply is a challenge for the government, active participation of private entrepreneurs is very essential in this sector.
Moreover, the steel sector made a tremendous growth over the last few years. So many new mills have been set up haphazardly.
Unplanned setting up of steel plants in different areas stretching around the city without infrastructure facilities including roads and bridges stands in the way of achieving the expected growth of this potential sector.
The land for an industrial estate was earmarked long ago but the government is yet to acquire the land, for which full-scale industrialisation is being delayed. It was decided much earlier that the government would provide land for such an industrial estate as you would see in India, he stated.
"You cannot have all the lands from the private owners at a time. The government can do it by entering into separate deals with the land owners," he said.
In import of raw materials from abroad we are facing harassment by the pre-shipment inspection (PSI) companies. These PSI companies are a great headache for the importers. They don't work on time. Foreign exporters are often reluctant to supply raw materials to this country because of their excesses and dillydallying.
"The ship breakers don't have to go through PSI inspection as they have a fixed duty set-up. So they don't have to face unnecessary hassles. On the other hand, we are giving a lot of money to the PSI companies,' he said.
The fixed duty set-up is there on import of scrap and billet. So these materials should be excluded from the PSI inspection, he opined.





Shippers' leader bemoans raised store rent
FE Special
Chittagong Port Authority has increased the store rent of empty containers 4 times at one go from US $ 1.5 to US $ 6.00 per container (twenty equivalent units - TEU) and the subsequent doubling and tripling of charges after seven and 20 days respectively, which is quite illogical and irrational at this juncture of severe global recession.
Ahsanul Huq Chowdhury, chairman of Bangladesh Shipping Agents Association (BSAA), was critical of charging the increased store rent since March 2007 and said the CPA should immediately withdraw the charges and revert to its original store rent schedule of the pre-2007 period.
The CPA should withdraw it to bring back the momentum in the country's container trade and reduce the main line operators' (MLOs) loss at this critical time.
The provision of 'free time' was also removed, he told the FE, and added that it was probably done with an intention to the reduce yard congestion that had been prevailing at that time.
Historically, the MLOs never intend to keep their containers idle inside the port to incur comparatively higher store rent. But due to trade imbalance, the lack of container depot (CD) capacity and poor logistic support of the ICDs coupled with poor handling of equipment the CPA suffered yard congestion during the said period.
However, the MLOs have since been single-handedly bearing the entire brunt of the increased store rent.
The BSAA chairman said the irrational increase of the store rent for such a long period was not only unfair and unjustified but also severely detrimental to the competitiveness reflected in the CPA's cost index compared to other ports in the region. Given the present slump in shipping this exorbitant empty store rent is simply unbearable for the MLOs.
The charges for 'extra movement' of containers inside the jetty area introduced sometime back for no apparent reason are also unjustified and unacceptable. For the port users there has always been one port, i.e. Chittagong port. It is simply inconceivable to us why this charge has suddenly been introduced, when there is no extra movement if a container travels from jetty 1 to jetty 13.
Needless to mention that due to this unexplained charge it has become very difficult for MLOs to send boxes in time for loading on a vessel as berthing of a vessel (other than gearless vessel) is uncertain unless confirmed 18 to 24 hours before the vessel's arrival.
We earnestly request the CPA to stop charging for extra movement with immediate effect, Chowdhury told the FE.
Referring to the container charges, the shipping agents have suggested that the port directly charges monitoring fees and electricity bills from consignees at the time of delivery.
The BSAA chairman strongly protested the move of Saif PowerTech, the berth operator at Chittagong Container Terminal, which claimed extra charges for handling containers at the CCT.
The shipping agents have decided to send a protest note to the CPA seeking its intervention to halt the illogical charging of an extra fee of Tk 350 for each loaded container and Tk 300 for each empty container as on-board handling charges and threatened to go to the court if the CPA fails to resolve it.
He said the shipping agents are paying all dues to the CPA against handling of containers at the container terminal. Saif PowerTech is supposed to get its charges from the CPA as per contract signed between the two sides on December 9 last. As a private operator employed by the CPA the Saif PowerTech cannot claim any extra money from the stakeholders.







Ctg ship breaking industry
Still a long way to go before tapping full potential
FE Special
In spite of tremendous opportunities to flourish as a thriving marine, bunkering and steel industry, the ship breaking industry is yet to take a regular shape due to lack of guidelines.
For want of guidelines to run the ship-breaking industry the government is losing a huge amount of foreign exchange that could have been earned through export of important metals like bronze, copper, stainless steel and unused and less used spare parts, generator, pumps etc through the process of reconditioning.
The observation was made by Md. Mizanur Rahman Mazumder, managing director of Port Land Group and editor of Bangladesh News Agency (BNA) in an interview with the FE.
He said the ship breaking industry flourished on a vast tract of land along the sea coast in Sitakunda and Kumira completely at the initiative of the local people.
It has grown to cater to the demand of the local consumers but now the ship breaking industry has been acclaimed by many buyers from international market.
Those involved in this industry are earning millions of US dollars every year from sales of valuable metals available in the scrap ships.
There is a great demand for bronze, copper and stainless steel (SS) in the international market. But most of our ship breakers do not care about these precious metals due to their lack of contact with the international market.
The government officials too seem to be unaware of these valuable metals. Vessels from some particular countries have a greater quantity of bronze, copper and SS while those from other countries have comparatively less, he said.
A huge quantity of fuel oil, a part of which is completely unused, remains in the oil tanks of the scrap vessels as the ships run on fuel to the shore from outer anchorage even when they are declared useless, time-expired and over-aged.
After arrival at the scrap yard these ships do have a huge quantity of unused fuel which we can supply for re-use in the ocean-going vessels by storing them carefully and through advanced purifying processing.
We can earn a great amount of money by selling this fuel alone apart from selling other commodities available in the scrap ship. There was a time when this oil was used as fuel in the brick fields.
He said that the ship breaking industry was beset with manifold problems which deserved government attention. The shipyards lack modern infrastructure facilities, advanced training and improved security measures for the scrap ship cutters. As a result, the spare parts and fuel obtained from the ships in the yard are not properly preserved. The ship yards also lack modern equipment for which the spare parts gather rust. It is risky to ensure quality while exporting these spare parts. This risk is very high in case of fuel used in the engines.
Mizan said many foreign ships were eager to procure fuel from Bangladesh, because it was advantageous to them when their stock of fuel exhausted. "So we should be very careful about these things as the image of the country depends on it," he added.
The most dreadful thing is that some ship breakers store the fuel by digging a hole under the ground and supply the same to the sea-going vessels in an oil tank or lorry. Storing in the mud-hole damages the quality of the fuel which is very much risky if used unrefined.
This may be a reason why the shippers buy fuel at US $ 480 to 490 per tonne from Singapore while they procure it at US $ 390 to 395 from the private parties in Bangladesh.
He suggested obtaining of fuel directly from the ship breaking yard through pipeline or in drums and carrying it on a barge. "Only then we will get the actual price. It will enhance the country's image in the international market as well," he said. And it is only the government, which can formulate policy guidelines to turn ship breaking industry into a potential foreign exchange earner, he concluded.




Southern University
Committed to the cause of education
Q: Would you please tell us something about the overall educational system of your institution?
Ans.: Southern University Bangladesh is a rapidly growing private university operating in Chittagong. The university was accorded government approval on November 26, 2002 and its formal academic activities commenced from January 14, 2003. Initially, it started its journey with two departments including the Department of Business Administration and Department of Computer Science & I.T. which had been offering Undergraduate and Master's programme. These two departments were working under the Faculty of Business and Faculty of Science & Technology respectively. In view of increasing demand, the university gradually opened two new departments in 2003 and 2004.
These were Department of English and Department of Law. In 2005, it took an initiative to establish the Department of Pharmacy which was eventually approved by the Bangladesh Pharmacy Council and U.G.C.
During the year 2005 and 2006, UGC accorded approval to Southern University to open the Department of Electronics & Communication Engineering, Electrical & Electronics Engineering and Civil Engineering. Presently, the university has been offering undergraduate programmes in all its eight departments as mentioned earlier. In the Department of Business Administration, Computer Science & I.T., Law, English and Pharmacy Master's programmes are being offered to help create high quality professionals in these fields for meeting the needs of the nation.
Southern University Bangladesh has been working sincerely and systematically to impart high quality tertiary-level education to its students for developing a time-befitting worthy human resource for the country. It has taken all possible steps to ensure academic excellence in its programmes. Efforts are made to develop three types of skills among the young learners. Time-befitting modern curricula have been developed for all the programmes so that students can acquire latest knowledge in each of their courses and thereby become knowledgeable. For developing communication skills in English language, all students are to pursue a number of English courses including English language, English reading and Spoken English. The university is committed to develop high level of Computer Literacy and operational efficiency through providing three computer-related courses.
In order to create a congenial learning environment, modern library and laboratory facilities have been created, spacious and well-equipped comfortable classrooms have been constructed and co-curricular activities are organized on a regular basis to develop the potentialities of students properly. Southern University conducts its academic programs on tri-semesters basis, which implies that there are three semesters in each academic year including the Spring, the Summer and the Fall. Each semester is of four months duration. To complete the required number of classes for each course in each semester, two to three classes of 90 minutes duration are held per week for each course. Students are required to appear at the class tests, submit assignments for the course and sit for the Mid-term and Semester Final Examinations as per academic calendar. Teachers encourage the students to be interactive in the class and also make presentations on assigned topics. In fact, we sincerely try to make our education practically-oriented. At the undergraduate level, the students are to complete internship program after completing the course-work of the program. The internship enables the students to become well-conversant with the practical work situation. They are required to complete a research project work and submit report as an integral part of the intern-ship program. On the other hand, the students of Master's program are to conduct research on an approved topic after finishing their needed course-works, and produce a Thesis for examination. Thus, our education system provides for creating effective and quality human resource for enabling them serve in various positions inside and outside the country.
Q2: Is the existing curriculum of Southern University a realistic one in keeping pace with the modern world/age? Are the degree holders of your university competent enough to meet the practical needs of our business organisations?
Ans.: The existing curricula of undergraduate and graduate programs of Southern University have been developed through expert advice in keeping with the needs of modern time and these were approved by the University Grants Commission. As such, we can say that these curricula are meeting the needs of our under-graduate and graduate students for becoming worthy university products. Notably, we have a Curriculum Committee to review the course contents of each subject and this committee initiates necessary changes when the need arises. We strongly feel that there is an immense need to enhance the practical orientation of academic programs. Having recognized this need, we are laying emphasis on practical works in the University Laboratories and also in the business enterprises.

For the students of Business Administration and Law, Case Studies are taught to enhance the practical problem-solving skills of the students. In this way, we are developing our students properly for meeting the practical needs of our society.
Q3: Indicate your present problems. What sort of support do you expect from the government to run your institution efficiently?
Ans.: As a growing university, Southern University is also confronted with manifold problems. To develop the university as a reputed & recognized institution of higher education, training and research; we need to invest huge amount of long-term capital. The present institutional source is incapable of supplying the required development fund for developing a well-planned need-based university campus. In order to overcome this problem, we desire to have a supportive role from our democratic & popular government. I suppose, the private universities in Bangladesh can overcome their development problems appreciably, if the government provides required land to the needy private universities from the Khas land at its disposal.
There is a paucity of highly qualified and properly trained teaching resource in some academic disciplines in Bangladesh. As a result, despite repeated efforts, some private universities find it difficult to procure such teaching resource. We feel that our government can play a supportive role in imparting higher education & training to the private university teachers. There is a good number of scholarship programs for higher education of the government. If the private university teachers are given opportunity to participate in these programs, they can derive immense academic benefit.
In these days of information revolution, the universities need modern I.T. facilities and make these facilities available at reasonable cost for all students. With the patronization of the government, such facilities can be expanded to each of the university for ensuring quality education in the university.
Q4: What do you think about the quality of private education?
Ans.: Higher education in the private sector is relatively a new concept for Bangladesh, which emerged in this country in 1992 in keeping with rapidly increasing demand for higher education. Our public Universities could meet a small portion of demand for higher education. As a consequence, the country was heavily dependant on other countries to cater to the needs for higher education. There was a strong demand to expand higher educational facilities in the private sector so that quality higher education can also be offered to our students by developing private universities of acceptable standards.
Having recognized this need, the government enacted Private Universities Act, 1992 and accorded permission to a number of private universities to work in this field. Presently, 51 private universities are in operation in Dhaka, Chittagong and other parts of the country where about 2 lakh students pursue their higher education.
As regards the quality of private education at the tertiary level, I would like to opine that the quality of private universities has been gradually improving. The first generation private universities including North-South University, Independent University and East-West University have succeeded in attaining recognized quality standards in their educational programs.
Among the second generation private universities, some have made enormous impact on the academic circle by dint of their well-thought out programmes. Others are also striving hard to attain academic excellence. They have identified what they are supposed to do to ensure quality higher education and they have been making steady progress in their academic performance. Nevertheless, it is true that some private universities are not taking adequate steps for making qualitative improvements in the academic programs. Clearly, a social pressure will be created on such universities to make responsible behaviour. UGC may also use its own control mechanism to help such universities improve appreciably. It is a matter of immense satisfaction that the products of private universities are occupying competitive jobs and could build a fair image of their universities.
Q5: Are you giving any special facilities to the students of your institution?
Ans.: We have been providing various facilities to our students to assist in their learning process. Students hailing from the poor section of our society enjoy tuition-waiver and scholarship facilities so that they can smoothly pursue the academic program. Meritorious students can also avail similar facilities. Payment of tuition fee in installments is permitted for the poor students. Part-time jobs are also arranged for the deserving students to reduce their economic hardships. Modern library and internet facilities are available for the students. Students can make use of this facility for their learning and research purpose. Literary and cultural competitions are arranged to help develop the inherent qualities of the students. Games and sports competitions are also organized in each department to facilitate mental development of the learners. There exists BNCC Unit in the university through which the intending students can associate themselves to receive comprehensive cadet training.
Q6: Do you have any plan to expand your institution and educational system?
Ans.: We have future plans to develop the university systematically in those academic disciplines in which higher education facility are extremely limited in this country. We have taken initiative to open separate department in Tourism and Hospitality Management because we feel that there is an acute paucity of skilled human resource in this field in our country. We aim at opening the department of Environmental Science and Management so that competent graduates may develop themselves for facing the emerging environmental challenges of this nation. We have been planning to start a diploma course on Design & Interior decoration for reducing national deficiency in this branch of knowledge. Finally, we have been working systematically to develop our permanent campus so that we can ensure all-out development of this university as a higher educational institution of internationally recognized standard.




GPH, a synonym of quake-resistant rod
FE Special
GPH Ispat Ltd, a leader in steel manufacturing in the country, attaches greater importance to quality, not quantity. That is why the 60-grade rod manufactured in this plant is of high demand thanks to the booming infrastructure development.
Md. Jahangir Alam, managing director of GPH Ispat Ltd, told the FE that he never had compromised with the quality simply because of the reason that the country was in a seismic zone and infrastructures needed to be strong enough to withstand tremor shocks.
Chittagong is located in the active seismic zone and frequent earthquakes under the influence of sub-soil crust-plate activities once caused a drastic fall in the ever-growing multistoried apartment and real estate business in the country.
But the developers are not so afraid now-a-days since a strong steel sector has grown up in the country over the last decade who are producing very high quality 60-grade rods in abundance.
Considering geographical importance and future prospect of the port city the local entrepreneurs began undertaking high-rise residential apartment projects in the early 80s but it has reached all-time high now.
So the demand for quality from a group of developers has inspired me as multistoried high-rise apartments are increasing day by day. The high-rise apartment builders prefer 60-grade rods for their construction work.
But there are others who do not care about maintaining the quality of their products. Some builders are also using the sub-standard rods taking advantage of the absence of monitoring by the concerned departments of the government.
Alam said the present government advised developers to construct high-rise apartments in a bid to protect the cultivable lands for agriculture.
Unplanned construction must be checked and apartments must be built for middle-income group people.
The power and gas problem was severely hampering production in mills, he alleged adding that small industries might face closure throwing hundreds of construction workers out of employment if the situation did not improve.
He demanded considerable reduction of duty on imported raw materials of MS steel. The shipping companies are also realising undue charges on imported raw materials. It has resulted in enhancement of production cost.
There is a big difference in the case of value added tax (VAT). The steel industry owners are paying VAT on MS rod at the rate of Tk. 750 per tonne while the ship breakers are paying VAT on MS rod at the rate of Tk. 250 per tonne. This enhanced production cost of the 60-grade MS rod, he said.




CDBL never sleeps
Sayed Javed Ahmad
The Central Depository Bangladesh Limited (CDBL) is purely an IT based company minding business in electronic settlements of daily share transactions at the stock market including the treasury bills of the central bank. A decent amount of fund has been invested in the company to build the needed IT backbone. In this article I will highlight on some of the technologies in place.
Our web site at www.cdbl.com.bd on our "Technical Info" page we do have some information about our IT setup, but it is not complete. We do have lot more that what is said there.
CDBL started out with a HP 9000 rp7400 Enterprise Class Servers, HP SureStore E Disk Array FC60 Controller, HP SureStore E DLT Library 4/40 Deskside and ancillary equipment that ran out of capacity before the predicted and anticipated projections due to sudden and unexpected growth in the market. During that time due to not having enough capital to invest in a new and upgraded server the company had to go through a serious struggle pretty much dismantling the so called disaster recovery site in order to keep the main server running. CDBL faced a lot of criticism and took a lot of blame from the connecting organizations for not be able to live up to their expectations. Often there were news flashes in the media on how CDBL was failing to cope with the growth.
Eventually and gradually, CDBL managed to procure the needed capital to buy a new server to tackle the situation. On October 2008 a new HP rp8440 server was installed replacing the old ones with a HP StorageWorks 8100 Enterprise Virtual Array (EVA) server as well as a complete fail over server as an addition.
Quietly CDBL came out of darkness to a new horizon by increasing the capacity and over coming the limitations. Since then the company have been functioning smoothly with some minor setbacks.
Today CDBL is equipped with enough power to handle more pressure from the market. However, we need to keep in mind that there is no end in technology investments. There is always room for improvement as newer technologies are coming out every now and then with improved advantages and efficiencies. In order to stay up-to-date, our company is constantly exploring the emerging technologies keeping pace with them through constant trainings and technology additions.
Our main servers are running on the UNIX version of Hewlett Packard (HP) called HP-UX version 1. Database that is in use here is the Oracle version 8i. We are using application software called VEDAS - Versatile Engine for Depository Accounting System, which is Microsoft's Visual Basic (VB) based software at the front end and UNIX based processing applications in the back end developed by CMC - India. In order to connect this Windows based application to the UNIX based Oracle a middleware called TUXEDO - "Transactions for UNIX Extended for Distributed Operations" is used.
Our Data and Disaster Recovery Center (DDRC), we call it "DR" for short, has been moved from Grameen IT at Mirpur to BGIC Tower at Topekhana Road in Dhaka. Although our intention was to maintain our DR at location outside the city zone, but due to the fact that we still do not strong enough and reliable connectivity with far away places we had to be realistic in choosing a location for the purpose. Our present DR location serves another strategic purpose; at present our main customer service and technical support is based there as the location is very close to the main hub of the stock market in Motijheel where most of the Depository Participants including the Dhaka Stock Exchange (DSE) is located there. Chittagong Stock Exchange's (CSE) Dhaka office will soon be moving to Dilkusha area, which is also close to DR.
We have an identical server in place at DR to handle our job during emergency times. In fact right this very moment our production functions (meaning actual functions) are running at DR, and this had been going on several months now. Our CEO has decided to keep the main production running there until all related and supporting arrangements are established there. In order to meet Security and Exchange Commissions (SEC) requirement, DR is also our center for preserving our back media tapes of our daily backup activities. We have HP StorageWorks MSL 6060 Tape Library and ancillary equipment at both locations to maintain the media backup facilities. We have HP rp3440 Enterprise Class Servers as the backup servers for data recovery purposes that is located at the main site connecting the servers at the main location and DR.
All our equipments including the HP StorageWorks 6636 Virtual Library System (VLS) are connected through HP 4/16-port Storage Area Network (SAN) switches through dedicated fiber optic cables. These providers of the connectivity are, MetroNet, DhakaCom, TelNet, and others. Data update is done instantly via dedicated fiber point to point direct connections. With the Enterprise Virtual Arrays (EVA) Storage Area Network (SAN) our data servers are constantly synchronized through this connectivity.
At the end of each working day, both DSE and CSE uploads their data files on our server and then our server works whole night to settle the transactions into the desired accounts. Once the transactions are complete, the system is ready to handle transactions for the following day. Therefore, our office is open 24/7 and our engineers are working shifting hours everyday at both locations. In other words, CDBL never closes.
In order for CDBL to ensure that we constantly have the power supply to keep our systems running, we had to invest heavily in our power infrastructure at both locations placing our own generators and UPSs to create three layers of power safety with plenty of stabilizers and circuit breakers in place.
Apart from what is said above, we also have our own web hosting server at the main location at Karwan Bazaar. Our official web site is hosted locally currently on a Windows Internet Information Services (IIS) server connecting to a Microsoft SQL database server that connects to the main Oracle database to retrieve the needed information and cache it. A dedicated IP connectivity for this purpose is provided by Bangladesh Online Limited (BOL). We are however contemplating on migrating to a Linux based server with MySQL database using PHP scripts soon for better performance and efficiency.
As a part of technical support, we also maintain a Linux based File Transfer Protocol (FTP) server to allow our clients to download necessary files through a dedicated IP link. This connectivity is also provided by BOL.
A Network Operating Center (NOC) is located in the DSE building at Motijheel through which all the DP offices are connected. Our redundant network connectivity also passed through that NOC to automatically handle connections if the main connections fail.

EB Solutions Ltd (EBS) is handling our SMS alert service for the Beneficiary Owners (BO) allowing them to get daily transactions automatically on their mobile phones with an active subscription once a settlement is completed at CDBL. EBS retrieves the required data from a data server at our main office and the connectivity is provided by MetroCom.
You can see that CDBL is using many different kind of IT tools and techniques under one roof to operate and handle their daily activities and functions. Not to mention the regular Microsoft Office tools like Word, Excel, Access, PowerPoint, FrontPage, etc that are also randomly used at our work place.
CDBL being a service oriented organization its primary job is to operate and maintain the IT infrastructure. Some software development jobs have been done on need basis. For instance, the Customer Relation Management (CRM) software that we use here is developed by our IT team internally. This particular software also monitors the pay-in and pay-out of a DP house to avoid shortages with many different information look up options. The Online Balance Inquiry (OBI) system that we have on our website is also developed by our software engineers.
One of the purposes of sharing all the above information is to guide the universities to design their curriculum and courses in such a way that would cover the materials that are needed and used in the real world; so that the graduates could readily get absorbed in the work force with full efficiency. Academicians and educators should develop close ties with the industries and businesses to determine what are the technological trends and what their students need to learn in order to compete and adjust in the job market. Constant revision of curriculum and syllabuses is a must for engineering and technical programs. A nation could become and stay competent only when our educational institutes are up-to-date in their program offerings.
As a part of Corporate Social Responsibility (CSR) CDBL offers Internships or Industrial Training to interested quarters to give them an exposure not only on CDBL setup and activities but also to give a complete overview of the industry. More information on this program can be found at http://www.cdbl.com.bd/career.asp.
(The author is Chief Operating Officer Central Depository Bangladesh Limited (CDBL). Website: www.cdbl.com.bd)




Soccer, the association football of England
Iftu Ahmed
Football is a gift from the ancient Chinese people. The kicking game called Tsu Chu in China was developed as early as 2500 BC.
The word Tsu denotes "to kick the ball with feet," and the word Chu means "a stuffed ball made of leather."
Tsu Chu used to played on emperor's birthday. As a result, it became the first exhibition match in ancient China.
During the Tsin Dynasty (255 BC-206 BC), Tsu Chu was a part of physical education programme to train soldiers.
During the Han Dynasty (206 BC-220 AD), Tsu Chu was extensively played.
In 2002 Soccer World Cup, China qualified in the first round.
A Japanese game called Kemari, similar to Tsu Chu was played in the same era. A match between Chinese Tsu Chu players and Japanese Kemari players was played in approximately 50 AD. Perhaps it was the first international football match.
Marco Polo (1254-1324), the celebrated Italian trader and traveler brought Kemari to Europe, which already had its football.
Japan, which qualified in World Cup soccer in 1998, 2002 and 2006, will play in the 2010 World Cup, in group of E.
A football-like game existed in ancient Egypt around 2500 BC. A linen ball, found in an ancient Egyptian tomb, testifies it. Many artifacts found in Egyptian tombs also provide evidence.
Egypt qualified to play in the first round of 1934 and 1990 World Cup soccer.
The Greeks developed a kicking and throwing game which was known as Episkyros around 2000 BC. Later, the Romans adopted renamed and transformed it into Harpastum, which means "the small ball game."
In 1994 World Cup soccer, Greece qualified in the first round. It will play the upcoming World Cup 2010, in group of B.
Harpastum, the rugby style-football was played by Julius Caesar (100 BC-44 BC), the Roman emperor and his generals. It was a physical fitness programme for the Roman army.
The Romans when they had a growing empire, took Harpastum to the British Isles. History says that Harpastum matches were played between the Romans and the British natives. Later, the English developed soccer.
With Rome as its capital, Italy became champions four times, in 1934, 1938, 1982 and 2006. It will play the 2010 World Cup, in group F.
In 217 AD, football was played in England on a Shrove Tuesday to honour British warriors, who defeated a Roman military unit.
Shrove Tuesday means the day before the beginning of Lent. In the Christian religion, Lent means an annual season of fasting and penitence in preparation for Easter beginning on Ash Wednesday and lasting 40 weekdays to Easter.
Beginning in 1175, London school boys played football each year on Shrove Tuesday.
Later, football along with other sports were banned by the rulers several times to encourage people to archery, to develop military might of England.
In 1314, King Edward II (1307-1327) banned football for the first time. He said: "For as much as there is a great noise in the city caused by hustling over large balls, from which many evils may arise, which God forbid, we command and forbid on behalf of the King, on pain of imprisonment, such game to be used in the city future."
Despite the ban, football remained very popular in England.
In 1603, when King James I (1603-1625) ascended the throne, people were urged to play football. The King declared the sport legal. Then onwards, football spread throughout the British Isles.
In 1815, Eton College introduced the first set of soccer rules, prohibiting the used of hand. The rules required playing soccer with feet.
The rule was broken by William Webb Ellis of Rugby College as he picked up the ball with hands and ran with it in a match in 1823. The result was soccer football and rugby football.
Rugby gained popularity in next 40 years (1823-1863). In 1863, London Football Association was formed. It voted to establish the old style of play based entirely on kicking.
And thus, the two different forms of football, soccer and rugby, were born in England. One is called "rugby" in which the players run with the ball, by kicking it, and the other called "association football", based on entirely kicking. The "association football" was finally abbreviated to "soccer football" or "soccer". Soccer is commonly known across the world as football.
English sportsman, Ebenezer Cobb Morley (1831-1924) is considered the father of association and modern football. He drafted the first set of rules of the game at his home in Barnes, London, as it is played all over the world. He was the first secretary (1863-1866) of Association Football and its second president (1867-1874).
But England, the cradle of modern soccer, could win the world Cup only once in 1966, defeating the then champions, West Germany, 4-2. England qualified for the 2010 World Cup. It will play in group C.
As the international governing body of football, the Zurich-based Federation of International Football Association FIFA organises World Cup soccer every four years.
Asian Football Confederation (AFC), Confederation of African Football (CAF), Central/North American & Caribbean Association Football (CONCACAF), Union of Europeans Football Associations (UEFA), Oceania Football Confederation (OFC) and South American Football Confederation (CONMEBOL), are the six federating associations of FIFA.
In 1904, FIFA was formed in Paris, France. Only seven countries, Belgium, Denmark, France, the Netherlands, Spain, Sweden and Switzerland, were its first representative members.
England, not a founding member, joined the World Cup in 1950.
The first World Cup was held in 1930. Jules Rimat (1873-1956) is the founder. He was the president of French Football Federation (1919-1946) as well as FIFA (1921-1954). The original World Cup Soccer trophy was called the Jules Rimat Trophy and was introduced to honour him every four-year it was played.
Before the 1966 World Cup, the original Jules Rimat Trophy was stolen in England. But, it was found later. After it earned the first three World Cup championship, the original Jules Rimat Trophy was given to Brazil in 1970. But, in 1983, it was stolen again. Since then, the original Jules Rimat Trophy remained traceless.
In the 1870s, soccer was introduced in the United States by Scotlish, Irish and English immigrants. In the beginning, soccer popularity was confined to Philadelphia, New York, New Jersey, Massachusetts, New England, St. Louis, Chicago, Detroit, Cincinnati, Cleveland, Denver and San Francisco.
In 1913, the US Soccer Football Association (USSFA) was formed as a national organisation, and in 1914, the USSFA was affiliated to FIFA.
The US soccer team played World Cup soccer in 1930, 1934 and 1950. No World Cup soccer was held between 1938 and 1950 due to World War II (1939-1945).
The best two finishes by the US soccer team in the World Cup were in 1930 and 1950.
In the 1930 World Cup, the US team made history beating Belgium 3-0 and defeating Paraguay 3-0. The US team finished 4th, losing to Argentina in the semifinals.
In the 1950 World Cup, the US lost 3-1 to Spain, but stunned the world beating England 1-0.
The defeat of England by the US is considered one of the greatest upset in soccer history. It is interesting that the US and England will meet again in the 2010 World Cup and in the same group of C.
Edson Arantes do Nascimento alias Pele of Brazil remains the all-time greatest soccer player. He played World Cup four times, in 1958, 1962, 1966 and 1970. He was ranked 3rd with 12 World Cup goals. Besides, he is the first footballer to score over 1000 goals.
It was Pele, who helped the US in making soccer more popular. In 1975, he signed a $3.5 million contract with New York's Cosmos Club, and in 1977, Cosmos became champions in North American Soccer League (NASL). Pele was behind it. His country, Brazil alone became champions 5 times, in 1958, 1962, 1970, 1994 and 2002. Brazil will play the 2010 World Cup, in the group G.
Gerd Muller, the then West German player remains the highest goal-scorer in World Cup soccer history. He played the World Cup in 1970 and 1974 and scored 14 World Cup goals. He is the only footballer to score World Cup hat-tricks twice in 1970. His country, Germany became World Cup champions thrice in 1954, 1974 and 1990. Germany will play the 2010 World Cup, in group D.
South Africa will host the 2010 World Cup to be played by 32 teams from June 11 to July 11. The world's eyes are on South Africa, the first African country to host the World Cup.
Wal-Mart, the world's largest retailer, has been chosen by FIFA to be the exclusive seller of 2010 World Cup soccer gear.
(The writer could be reached at: iftuahmad@sbcglobal.net)




The status of prostitution needs to be defined
M S Siddiqui
PROSTITUTION is sexual act in lieu of payment. Either men or women who gratify sexual urge of the opposite sex in exchange of cash are called prostitutes.
Historically, most of the prostitutes have been women and most of their clients, men. The perceptions of prostitution, based on culturally determined values, differ from society to society. In some societies, the prostitution has been viewed as a recognised profession. In others, prostitutes are shunned, reviled, and punished.
Considered the oldest profession, at times, prostitution get the consent of religious rules. Sorts of legally protected prostitution exists in some religious casts. Prostitution was widespread in ancient civilisations like Egypt, Greece, Rome, China and India. In ancient Greece, prostitutes enjoyed high social rank and considerable influence. In some cases, prostitutes engaged in certain religious activities. In the subcontinent, this profession was not widespread before the advent of the British colonial rule in 1757. The oldest brothel at Tanbazar, Narayngonj, was established during British rule.
Available studies indicate that hardly do any woman willingly choose prostitution as a career. Coercion manipulation and peer pressure, mainly compel women to enter prostitution. Poverty, marginalisation due to sexual abuse, predatory recruitment and trickery also compel many into it. Women, duped into the profession, hardly know what awaits them. Abduction, rape, trafficking of women and children, drug addiction, all inter-related problems, often lead to prostitution.
Human trafficking has become a problem for many countries, including Bangladesh. It is an international problem. According to UN, Children's Fund (UNICEF) estimates 1.20 million children are trafficked across the world every year. According to a non-governmental source, about 200,000 women and children have been trafficked to the Middle East in 20 years. Human rights activists and agencies estimate that 200 to 400 young women and children are smuggled out of Bangladesh and other South Asian countries to India for different destinations including India.
Trafficking is a source of supply of prostitutes. Trafficking rackets maintain strong networks and also links in the administration. According to the Indian Social Welfare Board, there are 500,000 foreign prostitutes in India, 1.0 per cent of whom are from Bangladesh. And 2.7 per cent of prostitutes in Calcutta are from Bangladesh. Every day, over 50 women and children are trafficked out of Bangladesh into India. Some are illegally transported into Pakistan. Traffickers use 20 points in 16 western districts of Bangladesh, bordering India. Many of the victims end up in Middle Eastern countries. Dhaka-Mumbai-Karachi-Dubai is the main route.
The rapid growth of tourism across the world contributed to increased prostitution and trafficking in women and children. Another fallout is a spate in sex tourism and pornographic literature. It is organised and networks of pimps manage the related operations. Many government keep an eye shut to the developments. Some countries liberalised the laws governing prostitution.
This profession now plays a major role in the world economy. The United Nations Development Programme (UNDP) estimates that gross criminal product makes up 15 per cent of world trade. The sex markets account for a sizeable share of this. It is estimated that trafficking in women for the purpose of prostitution alone generates more money than smuggling of firearms or drugs. Increasingly regarded as an entertainment industry, sex trade and prostitution often get the stamp of "legitimate work".
The prostitution industry accounts for 5.0 per cent of the GDP of the Netherlands and between 1.0 and 3.0 per cent of Japan. In 1998, the International Labour Organization (ILO) estimated that prostitution accounted for between 2.0 and 14.0 per cent of the total economic activity in Thailand, Indonesia, Malaysia and the Philippines.
Prostitution is legal, with some restrictions, in Canada, most of Europe including England, France, Wales and Denmark and most of South America including Mexico and Brazil. It is legal in Israel, Australia, and many other countries. Tel Aviv is known as the 'brothel capital' of the world. It is either legal or a phenomenon, tolerated in most of the countries in Asia. Iran allows "temporary wives" which can be for only a few hours! New Zealand passed in 2003 one of the most comprehensive decriminalisation acts which even made street hookers legal which is causing many concerns.
The Iranian Penal Code, 1925, did not categorise prostitution, as a crime in itself. But, under the law, it is a crime to advocate, aid or abet a woman to enter prostitution or to operate a brothel. In post-Islamic revolution Iran, execution - by firing squad or stoning -- is a fitting penalty against this profession. But Iran allows 'Mutïa', a form of temporary marriage which degrades a woman. Under 'Mutïa', it is possible to be `married even for half an hour. Men who visit prostitutes simply marry them for a few hours. It is legal in Iran.
There is a belief that recognising prostitution could protect women from abuse. But, this belief does not take into account, the violence often done to women in prostitution.
Recognition of prostitution requires registration of women in prostitution, but the sex workers, as they are called now, are against compulsory registration. But they seem to accept that some kind of mandatory registration would have to happen. There is a debate whether women in prostitution could be confined to licensed ghettos. Bangladeshi laws are far from clear even after the verdict of high court against the eviction of sex workers from brothels. The law in Bangladesh requires a woman to give an affidavit before a first class magistrate to obtain a license for prostitution.
The legalisation of the profession has to be considered from moral, religious, health, human rights and criminal perspectives.
The Bangladesh Constitution stipulates prevention of prostitution. The Clause 18(2) of the Constitution stipulates that the state shall adopt effective measures to prevent prostitution and gambling.
Following a writ petition, the High Court Division of the Supreme Court ruled in 2000, that prostitution as a livelihood is not illegal. A two-judge bench after hearing the case of the sex workers observed that the government had acted illegally in closing down the brothels.
The UN Convention on the Elimination of All Forms of Discrimination against Women (CEDAW) legally binds every signatory country, including Bangladesh, to implement its stipulations. The convention upholds the right to free choice of profession and employment.
The scenario with regard to this profession is somewhat complex in Bangladesh, which allows joining the profession, with an affidavit made before a magistrate while it is a constitutional obligation to eliminate prostitution. The judgement of the High Court and the CEDAW to which Bangladesh is a signatory, makes the issue more unclear. How the government reports to the UN every four years on elimination of discrimination against women remains a question.
Legalisation of the profession is to criminalize those who benefit from prostitution - the pimps and the customers, law enforcers, regulators and judicial system. Sweden, following a reform, legalised prostitution but criminalised pimping.
The status of this profession should be clearly defined, either by banning or legalising it. The hide-and-seek policy benefits regulators and law enforcers at the cost of the prostitutes.
(The writer, a part-time teacher in Leading University, can be reached at ahah@banglachemical.com)




Chittagong Port: Prospects and reality
Commodore RU Ahmed
Chittagong Port is the prime maritime port of Bangladesh. Nearly 92 per cent of the country's total cargo imported and exported through sea routes is handled by this port. That is why Chittagong port is known as 'golden gate of economic growth' of Bangladesh. The growth rates of import and export of the port are now 12 per cent to 14 per cent respectively. Steps for farsighted overall development activities for the port are indispensable to provide better services to the users of the port. Only 2/3 years back deadlocks were created in the port in the guise of different programmes. Congestion of ships and containers, piracy in the outer anchorage, labour unrest inside the port, deliberate delaying in handling cargoes and containers, stakeholders' unnecessary expenditure and harassment etc., on different excuses were the regular events that severely dented the image of the port.
It was an urgent task to drag the port out of these irregularities, inefficiencies and insecurity. But the authority concerned might have failed to take well-timed steps for many reasons. But much of the ills have by far been eliminated through implementation of some reform measures in a different situation two years back. The port is now free from ship congestion, container congestion, piracy and deliberate delays in cargo handling. The improvements have enhanced the image of the port to the users from home and abroad. This is undoubtedly glorifying and those who have contributed to it by dint of their labour, intellect and utmost endeavour in their respective fields deserve commendation.
Prolonged problems have obstructed the development process in the port in spite of the different initiatives to accelerate its operational activities. In spite of some epoch-making reform measures taken by the port administration in recent times that have consolidated and accelerated the speed of the port functioning we are not fully satisfied with it. The port authority is committed to taking pro-active measures to increase efficiency of the port in the light of the guidelines put forward by the government through active participation in the movement towards building a digital Bangladesh.
Apart from ships and cargo handling the container handling in the port has reached a record high. For the first time it has entered the list of important ports of the world by handling one million (10 lakh) containers. Alongside the country's economic growth port activities have increased manifold. A study reveals that Chittagong port will have to prepare fully for handling 1.2 million containers by the year 2012. Besides, the port will face new challenges with Bangladesh connecting itself with the Asian Highway. Considering all these aspects and evaluations Chittagong Port has taken up the following package programme, now under process, to achieve dynamism.
a) Container Terminal Management System: The port has undertaken to introduce total computerisation of the Container Terminal Management System (CTMS) under the Chittagong Port Trade Facilitation, which is now under implementation with the financial assistance of the Asian Development Bank (ADB). The CPA signed an agreement with a Singaporean company for supplying, installation, testing and commissioning of the Management Information System (MIS) and Container Terminal Management System (CMTS) on 25 March 2009 at the cost of Tk 376.10 million (37.61 crore).
b) Pollution Control Programme: Chittagong Port for the first time in its history has signed two separate agreements with Finland and Turkey to build an Oily Waste Collection Vessel and a Solid Waste Collection Vessel. The vessel will be supplied to the port within the first quarter of 2010. With the two ships going into operation the port will add a new dimension in the waste management of the vessels anchoring at Chittagong Port.
c) Global Operator in the New Mooring Container Terminal: Employment of a global operator in the NMCT on the basis of supply, operate and transfer (SOT) is under process and the port is expected to sign a deal in this regard by the end of first quarter of 2010 and operation of the same might start by mid-2011, which will increase the containerised cargo handling capacity of the port by 2.5 to 3.0 time.
d) Construction of Multistoried Car Parking Shed: Import of reconditioned vehicles through Chittagong Port has increased remarkably. But the accommodation space in the shed is insufficient. To tackle the situation the port has undertaken a plan to build a multistoried car parking shed in the next fiscal year.
e) Procurement of Floating Crane: The CPA's lone floating crane 'Shaktiman' was damaged in the disastrous cyclone of 1991. The CPA could not procure another crane so far although the need of such a crane was badly felt by the authority. The CPA has decided to procure a high power floating crane in the next fiscal year, which will be included in the CPA fleet by 2011.
f) Capital Dredging in the Karnaphuli River: The CPA could not take up the project of capital dredging for numerous limitations so far. The project is now in the primary stage and the CPA is going ahead with the project. As soon as the CPA gets guidance from the present democratic government it will complete the project by mid-2012. Under the project the CPA will ensure navigability of the Karnaphuli, construct 2.5 kilometre permanent embankment from Sadarghat to a half kilometre upstream of the Karnaphuli Bridge and a marine drive along the river bank which will a part of the proposed Ring Road of Chittagong City.
The author of the article is Chairman of Chittagong Port Authority (CPA)




Ctg Port truck terminal performs below par
FE Special
Chittagong Port truck terminal is not running well in spite of having all infrastructural facilities needed for a modern truck terminal at a suitable location on the Port Connecting (PC) Road near the jetties.
Its plight is attributed to the government's dillydallying in hammering out the much-awaited operational agreement between the traffic department of the Chittagong Port Authority and the operator. It is the lone single logistic support provider owned by the country's prime seaport. The terminal at Nimtala between Moheshkhali and BADC Warehouse under the Bandar police station is being operated by Panama Logistics Ltd, a private company, on the BOT basis employed by the port authority under an agreement signed in February 2002 for a period of 15 years.
But the terminal operator is confronted with manifold problems. It blamed the CPA for not complying with the terms of the contract for smooth running of the terminal owned by the CPA itself. An influential leader of Chittagong Chamber of Commerce and Industry is also opposing smooth running of the truck terminal.
Lt Col (retired) Sarwar Shaheed, chief executive officer of the Panama Logistics Limited, said this in an interview with the FE.
He said the port truck terminal was constructed at a cost of about Tk 31.70 million (3 crore 17 lakh) on an area of 3.82 acres of land with all infrastructure facilities. But it cannot function well and exploit its full utilities due to lack of an 'operational agreement' to be signed by the port authority to regularise the trucks and covered vans entering the port for taking delivery.
The CPA instead of issuing entry pass to the local trucks, inter-district trucks and covered vans for the jetties, has opened ticket counters at the truck entry gate and the contractors' association office in clear violation of the Clause 8B of the agreement signed with Panama Logistics.
Earlier, following the one-eleven in 2007 Brigadier General Hasan Nasir, chief of the Task Force entrusted with the responsibility at the Chittagong Port, and his associate Lt Col Tofael relocated the inter-district truck and covered van pass counter from the port truck terminal to the jetty area.
All these activities caused the Panama Logistics a financial loss to the extent of Tk 230 million over the last nine years, the CEO said.