Emerging Bangladesh Vol 2 Issue 1

As a part of BGCCI’s Branding

Bangladesh campaign, the

chamber wants to promote

Bangladesh to the wider public at

home and abroad with a powerful

visual tool, a photobook illustrating

successful business stories of

Bangladesh. If you would like to

recommend an entrepreneur,

businessman or innovator, send

us an email at

[email protected]

Emerging Bangladesh

Volume 2 Issue 1

Jan./ Mar. 2014

The business magazine of the

Bangladesh German Chamber of

Commerce & Industry Emerging

Bangladesh will be published

four times p.a. by the

Bangladesh German Chamber

of Commerce & Industry

Publisher

Sakhawat Abu Khair on behalf of


Commerce & Industry It is

distributed free of charge to

members and qualified non-

members in Bangladesh and

abroad.


Commerce & Industry German

House, 1st Floor, House: 10/C, Road

90, Gulshan 2, Dhaka-1212,

Bangladesh

Tel +88 02 8826480, Fax +88 02

8824858

[email protected],

www.bgcci.com,

www.eurochamber.bangladesh.com,

*All opinions expressed in articles do

not necessarily reflect the views of

BGCCI

Features & Advertisement

Tawhidur Rashid

Photography

Din Muhammad Shibly

Design & Layout

Linework

Cover Design

Mango Communications

Printed at

Binimoy Printers Ltd.

CONTENTS04 From the Editor 18 Person of Interest

Interview of Promita Sengupta,

06 Opening Remarks Program Coodinator, Rule of Law

Good days are ahead project, GIZ

08 BGCCI Events 28 BGCCI Memberships in 2013

BGCCI activities in the

last quarter 30 Special Interview

Lorenz Berzau, Managing Director, BSCI

Page 10

33 Trade Fairs

34 #EconoConversation

Dr. Mustafa K Mujeri

Director General BIDS

Faruque Hasaan

Managing Director, Giant Group

Rubel Aziz

Managing Director, Partex Group

On its 10 years anniversary, BGCCI

extends deep gratitude to its Founder,

Presidents, Executive Directors and

Executive Board Members.

Founder:

Sayed Jamaluddin Haider

Presidents:

Sayed Jamaluddin Haider

Dr. Peter E. Albrich (2001-2004)

Ruhul Amin (2004-2006)

Nasir A. Chowdhury (2006-2007)

Md. Saiful Islam (2007-2011)

Sakhawat Abu Khair (2012-Till Date)

Executive Directors:

Irmgard Hettich Sherchan (2007)

Mr. Syed Feroze Ahmed (2008)

Mir Muniruzzaman (2009)

Dipl. Oec. Daniel Seidl (2009-Till Date)

BGCCI Executive Committee 2012-2013

President

Sakhawat Abu Khair

Senior Vice President

David Hasanat

Treasurer

Olaf Handloegten

Executive Board Members

Bernd Hagen

Sakhawat Hossain

Shakhawat Hossain

Yesmin Ipphat

Amrita Islam

Omar Sadat

Farooq Siddiqui

Executive Director

Dipl. Oec. Daniel Seidl

Chief Advisor

Saiful Islam

Page 22

22 Cover Focus

Dr. Achim Berg from McKinsey &

Company pens the trends about

Global sourcing

Global Sourcing

Trends &

Bangladesh

FROM THE EDITORFROM THE EDITOR

Dear BGCCI Members & Readers,

Nowadays people ask the question: will Bangladesh be also in the future the second big manufacturing hub for Readymade Garments (RMG) of the world? The answer is very simple. Yes, because now, there are no alternatives. The second question is how does Bangladesh position itself in the future? Is it going to be a manufacturing hub for simple products and mass production or climbing up the value chain to manufacture high-end products? We also tried to answer the question-who will be the sourcing countries for Bangladesh in future? Will it be the Europe? The US? Or will countries like China and India use Bangladesh to supply goods for their own local demand? As an Editor, I would like to emphasize that Bangladesh is not only dependent in the future on the RMG sector. Many other sectors will come up but a couple of years ago; it was only the price of garments that mattered most. Today, more and more we talk about i) compliance ii) quality iii) timely delivery and iv) the price. Enjoy reading our magazine in this regard.

Daniel SeidlExecutive Director, BGCCI

What is the ‘Bangladesh Effect'?

{Emerging Bangladesh} Jan. - Mar. 201406

OPENING REMARKS

“Not Knowing when the dawn will come, I Open every door”, wrote Emily Dickinson.

Though I myself is not a big fan of poetry, this particular line seems close to my heart. The

line somehow portrays the condition of Bangladesh in an interesting way. Last year was a

tough call. Every single sector, be it business or development was under the attack of

political violence and long period of uncertainty. Outside the country, the gory pictures of

our burn victims or dead pedestrians were raising huge concern about the forthcoming

future; inside, we were afraid, frustrated, shattered. The yearlong political debacle almost

brought many businesses on their knees. 2014, however, has brought a breath of fresh air.

So far, the situation is stable, businesses are getting back their usual strength, and

opportunities have started sprouting forth. We at German Chamber believe, this is the right

moment to look beyond what the ordinaries and identify and unlock the potentials of

tomorrow for a brighter future. And by opportunities, we mean any kind of opportunities,

be it trade or aid. As Milton Berle, an American writer said, “If opportunities don't knock,

build a door.” At BGCCI, we own that much positivism! We would like to spread it among

our friends.

The Chamber saw a good start in 2014. We signed the much-coveted MoU with the

Association of German Chamber of Networks. According to this, a new chapter is opened

in the bilateral trade relationship between Bangladesh and Germany. Both the parties have

agreed to share expertise, ideas and take the trade relationship to a new height. It was only

possible because of their high regard about the Chamber's achievement. Thanks to all our

550+ member companies, both gold and ordinary, for their support, advice and

cooperation.

Last year, as you can see, the chamber grew from strength to strength. Not only in the

number of membership, but also in quality of services and in playing visionary roles.

Through our business networking events, repeatedly we have tried to promote the cause of

Bangladesh. We have encouraged our members to make more profits with healthy and time

appropriate business practices; at the same time, we have looked into important issues like

skill development and ensuring safety and compliance. Both of which, as I believe, will take

Bangladesh's readymade garments sector to a new direction.

Our this issue's cover story is on Global Outsourcing Trends and Bangladesh's position. I

would like to extend a special thanks to Achim Berg from McKinsey & Co. for drafting this

important piece for us. I believe the readers will see the whole issue from a brand new

perspective and can strategize their businesses accordingly. Our another special report,

called #EconoConversation is also very interesting. We have talked with diplomats, business

magnets, policy makers to find out whether Bangladesh can truly turn around in days to

come and make the best use of the most-sought after “good days”.

Last but not least: an array of interview of women entrepreneurs and managers who are

sitting on pivotal positions of national and international businesses. We are thankful to them

for their valuable opinion on entrepreneurship, empowerment and ideas. BGCCI is proud

of all of them! I hope working with them; we can work more closely in future to encourage

more entrepreneurship among women for a stronger and more resilient economy.

Good daysare ahead

NBy Sakhawat Abu KhairPresident, BGCCI


o share information about future importance of seeking new opportunities companies, N Janakiram Raju, CEO &

business prospects and strengthen of investment in Bangladesh. He, in this Managing Director of BASF Bangladesh Tits tie with the German Blue Chip regard, expressed his desire to work closely and Ajay Sahney, Managing Director of

companies, BGCCI organized a grand with Board of Investment (BOI) of Robert Bosch Bangladesh Ltd. spoke before

dinner at Villa Ideas. The event was attended Bangladesh. He said, new sectors would the distinguished guests. Both of them

by German Ambassador, H.E Dr. Albrecht hold much more potential for Bangladesh praised the chamber for all its initiatives so

Conze; Deputy Ambassador Dr. Ferdinand and the investing country, provided there is far and stated that they would be ready to

von Weyhe; BGCCI President Sakhawat a stable condition. BGCCI President extend all sorts of cooperation for the

Abu Khair; Chief Advisor Md. Saiful Islam, Sakhawat Abu Khair thanked all the betterment of Bangladesh as well as

BGCCI Executive Board members and top distinguished guests for their presence. He BGCCI.

brass from more than ten German Blue sought for suggestions from the company

Chip companies operating in Bangladesh. representatives to make BGCCI more active

In the event, Dr. Conze elaborated the and dynamic. From the blue chip

BGCCI organized special dinner for

German Blue Chip Companies

B{Emerging Bangladesh} Jan. - Mar. 201410

FEATURE

Bangladesh Ger man Chamber of attended the gala event. BGCCI President The event also witnessed certificate-giving Commerce & Industry achieved another Sakhawat Abu Khair in his speech extended ceremony of some of the recent members. milestone in the history of its 10 years his thanks to the current Executive Board The second half of the event witnessed journey as a bilateral business chamber. With and BGCCI Secretariat for their relentless traditional Oktoberfest, which amused the a mega event, the Chamber celebrated its support. He also mentioned about various audience. The traditional German games like 500th Member's induction at a five star hotel success obtained by the chamber in last two log cutting, finger wrestling, etc. were highly in Dhaka. Radiant Pharmaceuticals Ltd. was years. Nasser Shahrear Zahedee, Chairman entertaining. Daniel Seidl, Executive inducted as the prestigious 500th Member. of Radiant Pharmaceuticals Ltd. expressed Director of BGCCI thanked everyone for With this remarkable feat, the Chamber once his gratitude for being inducted as a the being with the chamber through thick, thin, again cemented its position in the realm of honorable 500th Member through the event. and welcome to further bolster the trade and bilateral trade as the biggest and most active In his speech, he gave a brief about how his cultural relationship between Bangladesh chamber in the country. BGCCI Members, company is aiming to offer better services in and Germany.various industry stalwarts, foreign diplomats the international market by sharing expertise and friends from print and electronic media, and resources from a chamber like BGCCI.

BGCCI celebrated 500th member's induction program with

Oktoberfest 2013

11{Emerging Bangladesh} bgcci.com

Overleaf: Md. Nasser Shahrear Zahedee (at the center) Chairman, Radiant

Pharmaceuticals Ltd. Receiving 500th Member's Certificate & Crest. Also on the

stage, clock wise from the left, Daniel Seidl, Executive Director, BGCCI; Farooq

Siddiqui, Executive Board Member,BGCCI; Saiful Islam, Cheif

Advisor, BGCCI; and Sakhawat Abu Khair, President, BGCCI.

This page: impressions of various festivities of the event

12 {Emerging Bangladesh} bgcci.com

The Association of German Chambers of accomplished. According to the MoU, the business match-making and facilitate the Commerce & Industry (DIHK) and parties will actively support each other to introduction of visiting trade missions to BGCCI signed a Memorandum of encourage business partnership between representatives of relevant industries. The Understanding with an aim to fostering Bangladesh and German enterprises and MoU also states that DIHK and BGCCI their successful, long standing cooperation. organize trade mission for the business will cooperate to identify sectors in DIHK came with a delegation team to community of both countries. The DIHK Bangladesh economy where Education and evaluate BGCCI. DIHK was extremely will render all reasonable support to training of skilled employees can be happy with the progress of the chamber. BGCCI's commitment to be accredited as a enhanced for the benefit of companies BGCCI President Sakhawat Abu Khair and German Bilateral Chamber of Commerce from both the countries.Dr. Volker Treier on behalf of DIHK & Industry. In the course of offering all signed the MoU. The letter acknowledged reasonable assistance in respect of visiting the positive development to support the trade missions, both parties will supply Bilateral trade relation BGCCI has relevant market information, conduct

BGCCI signed MoU with

the Association of German Chambers of

Commerce & Industry (DIHK)


n t e r n a t i o n a l H e a d H u n t i n g To harness the true potential of the attending the dinner. He represented the organization Kilpatrick recently has qualified human resources Bangladesh has, company vision in brief before the opened their office in Bangladesh. Kilpatrick is looking to expand its business audience. Abdullah Al Maher, Country I

Established in 1997 and experiencing steady here. A BGCCI Gold Member, the manager of Kilpatrick’s Bangladesh chapter growth, it now stands to be one of the most organization arranged a special dinner for all was also at the event. The members enjoyed important players in the European market BGCCI Gold Members. Representatives the lighthearted chitchat with exquisite with offices in Italy, Netherlands, the United from more than 30 Gold member gourmet food.Kingdom, Romania and Poland to search companies participated in the dinner. Jacob for the best senior executives, managers and Hoekstra, Group CEO and Board Member specialists. of Kilpatrick, thanked the guests for

Kilpatrick Bangladesh Ltd. Organizeda special dinner for BGCCI Gold Members


BGCCI organized Business Networking Luncheon withCommerce Minister Tofail Ahmed, MP

thDhaka, 4 March, 2014: Bangladesh German

Chamber of Commerce & Industry (BGCCI), the

biggest and most active bilateral business chamber

of the country organized a business networking th

lunch on 4 of March, 2014 at a five star hotel in

Dhaka. Honorable Commerce Minister, Mr. Tofail

Ahmed, MP, graced the event as Chief Guest and

speaker. Dr. Ferdinand von Weyhe, Charge d' D


ndAffaires of German Embassy in event. He said, the chamber has Germany is Bangladesh's 2 biggest Bangladesh was also present at the always been working to ensure export market and is closing the gap event. Bangladesh's firm footing in to the USA and could become

In the event, Tofail Ahmed Germany in various sectors. Over number one is the next few years. elaborated the success of the the years the as trade volume has Claiming BGCCI as a trendsetter, Government in promoting bilateral been increasing, the business sector Mr. Seidl said, with McKinsey & trade and development issues. He should also care about social and Co.'s RMG report the chamber also mentioned about the plans to environmental commitments, he started to uphold Bangladesh's bolster the trade relationships mentioned. He thanked all BGCCI positive image in the world as between Bangladesh, Germany and members and BGCCI Secretariat lucrative RMG destination. After Europe. He praised BGCCI for its for the achievements the chamber t h a t , w i t h G l o b a l S o c i a l noteworthy role in the sector of has made so far. Responsibility Conference, the trade promotion as well as social BGMEA President Md. Atiqul ch a m b e r wa n t e d t o m a ke responsibility roles. Islam was present at the event. He businesses aware of the social

Dr. Ferdinand, in his speech updated the audience about the commitments they have. Mr. Seidl thanked BGCCI for organizing recent initiatives taken by the apex also mentioned about the rising wonderful events which brings body of garments manufacturers. trend of 'Trade & Aid'. He said, in business community and policy Daniel Seidl, the Executive future the chamber will successfully makers together. He mentioned Director of BGCCI said that over facilitate the issues pertaining to about Germany's interest in the years the European Union has business and development sector.increasing trade volume with emerged as Bangladesh's core The event was followed by Bangladesh in days to come. market receiving over half of lunch.

BGCCI President Sakhawat Abu Bangladeshi exports. In his

Khair also gave a speech in the presentation, he also showed that


PERSON OF INTEREST

B A C Kto Life B A C Kto Reality

Promita Sengupta

Program Co-ordinator of Rule of Law, GIZ

Interviewed by Ana Koenen


And in this new component you see a potential for the Ms Sengupta, the programme you are leading private sector?at GIZ just has been extended until 2018. What

are the plans for the further development of the This stigma and exclusion from the society results in:isolation

and re-entering the justice system throughre-offending and programme?then imprisonment. We would like the private sector on board

Before we received generous support from DFID and the here. For instance some prisons have the facility for tailoring existing program supported by the Federal Ministry of courses, which we are already supporting. If we can get Economic Cooperation and Development (BMZ) was garment companies on board, they could provide, for extended, we already started to put more thought into how to instance, new machines and training, so they would have a support vulnerable prisoners not only to get out of their pool of skilled workers emerging. By this we both help the lengthy pretrial detention,but also how to help them improve prisoner and contribute to Bangladesh society. Let me do their lives during their time in prison and afterwards. some quick math at this point: At the moment our Therefore we asked ourselves a seemingly simple question: programmehas released 3085 prisoners. 3085 skilled people Who is the prisoner? What didher/ his life look like before and are a potential resource. By the end of our programmein 2018 after the imprisonment? The answer to this is that the average we are targeting17.750 people being released. If we could prisoner we are dealing with is male, poor and between 20 and make 10% of them skilled workers the impact would be 60 years old. He is mostly in prison for petty crimes, drugs, significant.land disputes, immigration issues etc. In the worst case he is

illiterate and unskilled. The most decisive factor for the

prisoner's future derives from Bangladeshi culture the

principle of shame and honor. A poor prisoner being male or

female who comes back to his village or family after an

imprisonment is given a very hard time re-entering into his

community: she/ he is stigmatized. The stigma in addition to

being poor and unskilled in most cases leads to reoffending

again. GIZhas developed a component on how to make their

reintegration into society possible.

What does this component look like?

We call this component Skills Development. By teaching a

prisoner a skill she/ he can use outside, they will have

something in their hands, which will restoretheir reputation

and dignity. She/ hecan contribute to the community again

and thus become a part of the community again.

The most decisive

factor for the

prisoner's future

derives from

Bangladeshi culture

the principle of shame

and honor.

Q.


Do prisons have the facilities for such trainings?I understand that a skilled ex prisoner has

potential for Bangladesh's economy and also In some Prisons the sheds and machines for teaching skills

will be able to overcome the stigma within his development exist, but they were hardly beingused;

sometimes because no trainers were available or the community a win-win situation for both organizational capacity was not there. Our program is sides.What skills are we talking about then?addressing this problem. In prisons where we have the

As I said, using this potential can preventreoffending, asshe/ facilities, we identify trainersand then we identify persons who

he is unable to find an occupation overcoming stigma and are suitable for training and just do it!

shame.We believe in synergies. Why re-inventing the wheel

when it already exists? At this point the private sector comes For those prisons that do not have facilities, we in. We would like to teach skills the BD industry needs in order offer trainings opportunities outside the prisons, to ensure sustainability. For instance, we could prepare them which the prisoner can attend voluntarily,after for the textile sector in Dhaka. At the moment we are also

release.offering basic electrics courses: repairing TVs, fridges, ACs

etc. For women we are organizing a beautician's course, as In prisons which do have space and facility, we started the

there is a huge demand in Bangladesh.But we are also offering training already within the prisons. In Bogra we have 137

computer skills courses and weaving of furniture. For the people already being trained in computer skills,

more rural areas we would like to offer First Aid Courses a tailoring,weaving of furniture and electric mechanics.

skill hardly anybody in the rural area has.By making them an Upcoming in Bogra we have a hair dresser and beauty parlor

expert in a certain skill we help them gain credibility. This does training. The prison staff will identify which prisoner is

not involve huge costs and is easy to use outside of prisons.suitable for such training. As a side effect, it has been

demonstrated that prisoners who are assigned aresponsibility Coming back to the stigma again:Won't a lot of

in prison tend to be less violent and subsequently better factory or business owners think that an ex- postrelease.

offender is frankly not the best person to hire?My last question:How are the prisoners

This is a very good and legitimate question. There have been responding towardsthese opportunities?extensive studies on this subject all over the world.These

studies prove that in most cases ex-prisoners are more than The motivational level is higher than expected. Many of the thankful to be given a chance again and show their reliability. prisoners realise what a huge chance and opportunity they are Transferred to the Bangladeshi context try putting yourself in being presented with. Let me answer your question with the the shoes of a stigmatized and excluded prisoner. The words of one prisoner: ”I am very happy to learn how to do majority of prisoners are “sad not bad” and will grasp the this [repairing household items], this will help me a lot when I opportunity offered. Would you risk jeopardizing this come outside, when I am back in reality!”wonderful chance of learning a profession and being able to

provide for your family and society? Probably not.Apart from

that, we have a thorough selection process for the skills

development component.

Talking Logistics now Ms Sengupta, I

understood that GIZ is not changing any of the

infrastructure of the prisons, correct?

This is correct.GIZ is not assisting in building bigger prisons

to tackle the overcrowding. We would onlycure the symptom

of overcrowding and not the reason itself. The reason for

overcrowding in prison lies in the huge case backlog, caused

by slow movement of cases. We assist the Prison Directorate,

the Community and the Formal Justice System to work

together, more efficiently towards joint solutions to make the

existing system work more efficient.


COVER STORY

Global SourcingTrends and BangladeshWith rising sourcing costs

and a number of issues such

as compliance, safety, etc.,

complexity is the new “hot

topic” in the global apparel

industry. Dr. Achim Berg from

McKinsey & Company pens

the trends of the future and

how Bangladesh can help

companies address them.


hree out of four chief purchasing infrastructure and compliance. Therefore, buyers

officers (CPOs) interviewed last need to work with a mix of countries based upon

year for a McKinsey survey on the positioning and sourcing strategies of their

Global Sourcing expected their company. T sourcing costs to increase slightly, China, as is well known, has been the most

moderately, or strongly but on average by about important player in the global apparel market for

1.7% over the next 12 months. Whether this decades, as it is the largest apparel exporter and will

increase is going to take a toll on the industry or remain so in the near future. However, many

not demands further elaboration; but there are companies are seeking an alternative to China.

certain issues we need to take into consideration. Responses of as many as 72% of all CPOs

For example, think about the strong deflation in surveyed echoed this truth. So in which direction

apparel sourcing costs, which had proven will the 'sourcing caravan' of the global apparel

beneficial for companies for years, but is no longer industry head next? The answer involves a few

the case. Many fear that a structural shift in overall regions, such as South-East Asia, Southern Asia,

market dynamics is about to occur, thanks to the and new, promising locations such as Sub-Saharan

inflation in sourcing costs. Companies, within this Africa. In this context, I would like to point out

context, will need to re-strategize the entire game that while near-sourcing is a real trend, it's one we

plan as consumer buying behavior seems to shouldn't get too excited about just yet. Being close

suggest that price remains a very important to Europe had made North Africa a key sourcing

purchasing factor. As data suggests, large apparel location for many European buyers for nearly two

companies expect an average cost increase of decades. Nevertheless, it will take a long time

around 3.5% over the next 12 months, posing a before the Sub-Saharan region emerges as a key

difficult situation for them to be able to mitigate sourcing destination, since export volume from

costs and make customers happy at the same time. this region is not going to become significant any

Other costs will also rise. For one, there are the time soon. Some big names, such as H & M, have

rising labor costs, especially in China. In addition, already placed orders with Ethiopia, which is a

rising energy and transportation costs are further clear sign that perhaps in five years or more, we will

exacerbate the situation. The cost of raw materials see more companies testing the waters in that

is also going to create a bumpy ride as it depends region. This also brings our attention to the fact

upon factors such as prices of cotton, man-made that companies' CPOs are now focusing on several

fiber, and wool, all of which fluctuate fairly often. factors while choosing a destination. Initially, their

Then there is a rising trend of waning bargaining sole goal was to increase productivity, which is still

power among mid-market managers, which is high on their agenda, but now they have to think

certainly going to affect their negotiation ability about cost minimization and compliance issues.

with companies. The recent tragic accidents at Tazreen Fashion and

McKinsey research shows that there are five main Rana Plaza have compelled them to contemplate

criteria that apparel buyers must consider when the latter more intensively.

selecting sourcing locations, namely: price; quality; In 2011, McKinsey research indicated that

capacity; speed; and risk. Not any single criterion Bangladesh had the potential to achieve exports

can be targeted to help decide upon a sourcing from its ready-made garments (RMG) sector of

destination. While a country such as Turkey is USD 36 billion to 42 billion by 2020, provided that

known for its quality and timely delivery, it has the sector can overcome certain challenges,

disadvantages, e.g., high pricing. On the other particularly relating to compliance issues and

hand, Bangladesh, which offers an unbeatable infrastructure. This was based upon the

sourcing price, is still trying to catch up with other assumption that there is an annual growth

locations when it comes to sophisticated potential of 7 to 9% compared to the historical


average annual growth rate of 12%. In the same survey, working together to better working conditions. While

80% of our respondents ranked Bangladesh within the there appears to be concerns that the cost of compliance

Top 3 sourcing countries, which changed in our 2013 is going to affect sourcing costs and retail prices, our

survey: just 52% have placed the country in Top 3. This is survey results show another side to the story. CPOs admit

most likely because of the accidents that have mired that it can affect pricing to some extent, but none of them

Bangladesh's image on an international level as a sourcing had any complaints about the current CSR activities being

location. Vietnam is in the second position, whereby some run by companies.

48% of CPOs are convinced of being able to source from In this context, there are two big initiatives worth

there. Other countries named were Cambodia, India, mentioning: Accord and Alliance. Companies know very

Indonesia, and Myanmar. The latter, as most would agree, well that they are now under the scrutiny of international

is somewhat of a surprise entry on the list. The country watchdogs and hence, many have implemented stricter

has the good fortune of being located at the heart of Asia standards and more effective auditing regimes.

a very significant geopolitical location and still, most of Additionally, increasingly more buyers are carefully

its market is untapped. checking the factories before placing orders in them. Also,

For countries such as Bangladesh, India, and Pakistan, rather than relying upon government notification, buyers

their massive export volume will keep bringing CPOs to are sending engineers to check the condition of the

the door. Especially Bangladesh is a country that has a building and legal documents.

lower average price point, as it exports a high volume of The Accord on Fire and Building Safety, signed mostly by

products. Most of the industries are located around the companies in Europe, and the Alliance for Bangladesh

capital Dhaka and one big factor is that labor costs are Worker Safety, signed by companies in North America, are

lower than those in China, although the productivity level two bold initiatives that will definitely usher-in big

is only 70% of that of the biggest global exporter of changes. These two pacts have brought big brands and

apparel goods, according to rough estimates. The biggest companies under one umbrella to develop a unified

hurdles are Bangladesh's poor infrastructure and energy common industry standard, which will ensure further

supply. transparency and compliance. Once the initiatives manage

Now that competitors such as Pakistan and India are to bear proper results, the examples can be rolled out in

emerging, Bangladesh has to notch up its performance if other countries that have similar trends in managing labor

it is to retain its good sourcing location position. Pakistan's costs and/or infrastructure facilities.

unstable political situation is a clear deterrent for In addition, to avoid demerits of sub-contracts, which is a

international buyers, but its recently earned GSP+ status common occurrence in Bangladesh and there is barely any

will ensure its duty-free entry into Europe. The country record available on their numbers, buyers from Europe

also enjoys good availability of raw materials, such as and the US should increase their presence in the sourcing

cotton. India, on the other hand, is huge and hence, the countries. The aim should be to work more closely with

market is fragmented, which prevents it from harnessing local companies to help them identify unauthorized

its best possible inherent potential in the apparel industry. subcontractors, many of which claim to be from small

Other countries, e.g., Cambodia, Indonesia, and Vietnam, companies that are reluctant to comply with or are totally

are not yet on par with any of the countries mentioned unaware of compliance and safety issues.

earlier when it comes to handling large-scale To create a strategy for the future, companies will have to

manufacturing. take into account the kinds of strategies they adopted in

Environmental sustainability and compliance two much- the beginning and how that helped them shape their

discussed issues in the industry since last year are here to businesses. But putting all their eggs in one basket is not

stay. While consumers are more aware and concerned going to be the answer companies should look to source

about working conditions in the East than ever before, from locations other than just China or Bangladesh. At the

they are not prepared to pay extra for goods. That is why same time, they should be more critical in deciding what

companies will need to come up with ways to get a grip on kind of companies they would like to work with in the

their costing in really addressing compliance and safety future. CPOs will therefore play a more pivotal role in

issues simply talking about risk management is not going thoroughly understanding the complex dynamics of

to be sufficient going forward. Governments, factory apparel sourcing and foster a win-win solution for all

owners, and non-government organizations (NGOs) are parties involved.

To create a strategy for the future, companies will have

to take into account the kinds of strategies they

adopted in the beginning and how that helped them

shape their businesses.


How can Bangladesh move up the

value chain and manufacture more

quality products for the global apparel

industry?Moving up in the value chain can occur in two

ways. On one hand, producing higher quality and

more complex products, and on the other hand,

moving from being a CMT supplier to integrating

product development and design. Since both

require skilled middle managers and skilled

workers, investment in education and vocational

training is necessary. Additionally, manufacturing

more complex products will need to be supported

by backward integration, requiring capital

investment.

SPECIAL INTERVIEW

In an interview with BGCCI, Dr. Achim Berg and Saskia Hedrich answered three key questions about Bangladesh’s future as a RMG manufacturing country. Dr. Achim Berg is a principal in Mckinsey's Frankfurt office and one of the leaders of Mckinsey's apparel, fashion and luxury group. Saskia Hedrich is a knowledge expert in the apparel, fashion and luxury group in Mckinsey's Munich office.

Q.

Dr. Achim Berg


increase and maintain compliance standards by educating Many companies in Bangladesh are producing workers, implementing standards at suppliers, and fostering good quality products under compliant full transparency in the supply chain via the local sourcing

situations, although a generalized perception offices.

is that the businesses are sweatshops. How can

we change that perception? Bangladesh's labor costs are very attractive The investments companies are making in compliance need to compared to those of other countries. Many be more visible. Corporate social responsibility experts and

fear that due to issues such as achieving buyers report improved labor and social compliance

compliance and workers' welfare and safety, standards. However, there is still a broad range of compliance

labor costs will increase. Is there anything that seen across suppliers and many unsolved topics still exist.

Solving these issues and achieving ethical labor standards and Bangladesh can learn from China in this sourcing practices are key prerequisites in Bangladesh's context?apparel industry from our perspective. The country's situation

Over the last few decades, China has moved from being a offers more opportunity to make supplier conduct

CMT producer to ODM (original design manufacturing), to transparent than would be possible in countries such as China

developing brands, and even building up a footprint in and India, as their industry locations are much more spread

technical textiles. With this industry-wide move to more out than those in Bangladesh. International buyers should

value-added products, the pressure on labor cost as seen in also actively use unannounced visits to help achieve

basic products was mitigated. This upgrading of the industry transparency, as there are still "black sheep" in the industry.

was driven by a strategy that was clearly planned and For instance, out of about 5,000 active manufacturers, only 50

implemented by the government.to 100 of them are mentioned as having achieved very high

standards. We suggest that buyers continually push efforts to

The

investments

companies

are making

in

compliance

need to be

more visible.

“

“Saskia Hedrich


MEMBERSHIP IN 2013

or more than 10 years till 31/12/2013 was 562 which is now Embassy to arrange visa appointment

Bangladesh German Chamber more than 570. Mainly BGCCI offers for BGCCI members in Wednesday of

of Commerce & Industry two types of membership: Membership every week. BGCCI not only arrange F(BGCCI) is providing trade supports to w i t h O r d i n a r y S e r v i c e s a n d visa appointment for its members but

its members all over the world. Our Membership with Gold Services. An also help them to prepare their

mission is to promote trade relations organization or an individual person application pack which include checking

between Bangladesh, Germany and both are eligible to apply for any types of the visa application form and helping

other countries in Europe. Our sincerity the membership mentioned. t h e m t o a r r a n g e n e c e s s a r y

towards our members helped us to In 2013 the emerging membership documenta t ion to submit the

become the largest bilateral business trends was in Construction Industry, application by providing them a

chamber in Bangladesh. Health and Medical Industry, Indenting, guideline. The number of members

The 2013 was a remarkable year for Liaison Office & Buying Agents, IT, BGCCI can recommend has been

BGCCI in terms of expanding the Communication & Media Industry, increased last year from 4 members to 5

membership numbers. With a growth Research & Testing Industry. members now. In 2013 BGCCI

rate of 137.07% than previous years Another remarkable service that arranged visa appointment for about

BGCCI was able to manage an BGCCI is providing is the Visa support 150 members throughout the year.

additional 152 members in 2013. The to its members. BGCCI has an

total number of membership services understanding with the German

Membership: In Retrospect


Membership Pie in 2013


ENHANCING PRODUCTIVITY AND

COMPETITIVENESS THROUGH A

SUSTAINABLE BUSINESS MODEL: BSCI AS A TOOL

FOR IMPROVING SOCIAL COMPLIANCE IN BANGLADESH

Interview with Lorenz Berzau, Managing Director, BSCI


“BSCI provides a system for independent monitoring, capacity How do you perceive CSR in Bangladesh? building and stakeholder dialogue the three pillars of the Bangladesh plays a crucial role in global business its RMG initiative. Thus, training workshops for factory managers in industry is key for the economic growth of the country over Dhaka have been a key activity since 2004. Regular discussions the last decades. It will also remain an essential sourcing between government, exporters' associations, buyers, trade market for international retailers, brands and importers in the unions, NGOs and academics at a Round Table in Dhaka (and coming years. However, businesses need to keep adapting and once in Chittagong) have provided an ideal platform to improving their strategies and activities to remain competitive exchange views and experiences, as well as expectations and over a long time. Throughout the world, Corporate Social hopes, in a constructive way. Responsibility has become a mainstream topic, thus

Bangladesh makes no exception to this development.

Bangladesh has even drawn highest attention from media, Is BSCI a business initiative?businesses, consumers, governments, trade unions and non-

BSCI is a business driven initiative and the fact that it is run governmental organizations in this context since the tragedy

by the FTA demonstrates that it is built on trust and of the collapse of Rana Plaza and fires in factories. This has

cooperation between Bangladeshi factories and BSCI underlined that compliance with national as well as

participants: importers and exporters have a common interest. international rules and going beyond bare compliance is not

In the past only the factor price was important, today only a matter of following a mainstream topic but a matter of

compliance comes first followed by quality and delivery on survival. This is not only relevant for the industry in

time. The new Code of Conduct launched by BSCI earlier this Bangladesh but all over the world, as recent cases in Western

year underlines the fundamental belief and also the Europe have shown again. However, the particular role of

expectation that social compliance in a global supply chain can Bangladesh as the second largest textile producer in the world,

only be a reality if all business partners, at all levels, assume the dimension of existing challenges in the CSR area and, in

their share of responsibility. Only then, business can also be this context, the industry with the comparatively lowest wages

sustainable and can keep growing. Practically, this entails a for workers in the sector, explain the specific focus on this

strong, well educated and motivated workforce in healthy and country in the current CSR discussion.

safe working conditions as they are the capital of a labour It will be key for factories in Bangladesh to enhance their intensive industry. It is therefore important to invest in good

social as well as environmental performance to show that working conditions not to please a labour inspector or a social they deserve a leading role as RMG suppliers also in the future. auditor, but for the wellbeing of the company. I am pleased It is about building trust and confidence, key elements in that we cooperate with BGCCI and the well known Global engaging in solid business partnerships. Social Responsibility Conference initiated by Mr. Seidl, in

order to create more awareness between all stakeholders,

Could you explain the role of BSCI? responsibility and ownership.

Hundreds of RMG factories in Bangladesh are involved in

the Business Social Compliance Initiative (BSCI) through their What are the recommendations for all the retail and importer customers. These currently 1300 retailers stakeholders?and importers from Austria, Belgium, Denmark, Finland,

Genuine engagement is not only needed from the France, Germany, the Netherlands, Sweden, Switzerland and

entrepreneurs in Bangladesh, but also from the government other countries are participating in the BSCI and commit to

and other stakeholders. They need to support and enable the improve social compliance in their global supply chains. The

RMG industry to provide good working conditions, as this will Brussels based Foreign Trade Association (FTA), representing

be decisive for the productivity, reputation and in consequence the interests of importing companies mainly from Europe,

for the competitiveness of Bangladesh as a global economic has launched the BSCI in 2003 as a consequent reply to the

player. need to provide companies sourcing globally with an efficient

platform and methodology to improve social compliance.

It will be key for factories in Bangladesh to enhance

their social as well as environmental performance to

show that they deserve a leading role as RMG

suppliers also in the future.

“

SPECIAL INTERVIEW


TRADE FAIRS

International Trade fairs around the world (April to June 2014)

Hong Kong Houseware Fair, Hong Kong (Handicraft) April 20-23, 2014

Seafood Expo Global -2014, Brussels, Belgium May 06-08, 2014

US-Bangladesh Technology Investment Summit, Silicon Valley, California, USA May 2014

The 24th Int'l Exhibition on Shoe & Leather Fair, Guangzhou, China 28-30 May, 2014

Fairs in Bangladesh

Great India Education Fair Dhaka June 24-25, 2014

BASIS SoftExpo 2014 June 05-08, 2014

Messe Dusseldorf Fairs in 2014 (April to June)

Bio West 30.03.2014 - 30.03.2014

International Tube and Pipe Trade Fair 07.04.2014 - 11.04.2014 www.tube.de

International Wire and Cable Trade Fair 07.04.2014 - 11.04.2014 www.wire.de

components for processing and packaging 08.05.2014 - 10.05.2014 www.packaging-components.com

Processes And Packaging Leading Trade Fair 08.05.2014 - 14.05.2014 www.interpack.com

Trade Exhibition for Funeral Homes and Services 29.05.2014 - 31.05.2014 www.befa2014.de

INTERBRIDE 31.05.2014 - 03.06.2014 www.interbride.eu/en/home

Vivanti 28.06.2014 - 30.06.2014 www.vivanti-messe.de

ElectronicPartner Herbst 3. Quarter 2014 www.electronicpartner.com (closed shop event for electronical equipment and multimedia)

Infotage Dentalfachhandel (Dental Trade Fair) 3. Quarter 2014 www.iddeutschland.de/west


SPECIAL REPORT

2013 was a mess! So many uncertainties, so much

chaos! Nothing could avoid the havoc of political

violence. But we are happy that even the darkest cloud

has a silver lining. We would like to look at the future

with a positive attitude. We expect 2014 to be the year

of turning around. We want to show the world that not

all hope is lost. Still, we have the ability to make our

dreams come true. #EconoConversation is an attempt to shed lights on future prospects of our

economy. With a series of interview, we have shared our ideas with

businessmen and industry experts.

In this issue, we are grateful to three distinguished person for their valuable

opinions. Dr. Mustafa K Mujeri, former Chief Economist of Bangladesh

Bank, now the Director General of Bangladesh Institute of Development

Studies. He tells us about the development sector and the possibility of

good results from the amalgamation of trade and aid. We have talked with

Faruque Hassan, Managing Director of Giant Group and Vice President of

BGMEA. He points out about the possibilities and lacks of the Ready made

garments sector. Last but not least: in a candid interview, ace business man

Rubel Aziz has described his prescription on how our economy can turn

around.

#EconoConversation


Director General, BIDS

#EconoConversation

DR. MUSTAFA K. MUJERI

Q

The overall growth performance of the economy during the year will

critically depend on how fast the disruptions can be amended and how soon

normal economic activities can resume.

What can we expect from the development sector this year?Development is a multidimensional process which has several key

indicators such as GDP growth, social progress, environmental sustainability

and many other aspects. Moreover, these dimensions have mutual interactions

with each other which affect the entire process and this is why we need to

understand the complexity of the processes of the development sector and

analyze the interactions from the multidimensional context in a

comprehensive manner. It is also important to recognize that these

interactions are not unique; these are very much dependent on country specific


situation. From such a perspective, the enough potential in the economy to materialize

development sector must be viewed in a our dreams. For rapid economic growth, the

continuum covering a longer time horizon which investment rate has to be around 35 percent by

takes its own course determined by the initial the next decade from its present level of 26

conditions and the development paradigm adopted percent. In the process, the private sector will

by the country. have to play the key role while public investment

Bangladesh is set to follow a development path will create an enabling environment for attracting

that would lead the country to become a middle- higher private and foreign investment. The

income country by the year 2021 along with private sector will then be encouraged to invest

achieving specific socioeconomic goals. For the more resources into their existing ventures and th seek to explore newer opportunities.purpose, the government has prepared the 6 Five

In this context, one big barrier to investment Year Plan covering the period from 2011 to 2015 in Bangladesh, which now seems almost within the longer term Perspective Plan. Recently,

th insurmountable, is infrastructure and energy. work has started for preparing the 7 Five Year Besides, we have high land prices for establishing Plan as well. new enterprises, administrative complexities and Bangladesh has been performing relatively well lack of good governance which need urgent in terms of development over the last few years. attention.Economic growth has accelerated to more than 6

The need for the government is to invest percent and Bangladesh has made commendable substantial resources in infrastructure progress in many social indicators. In fact, the development through mobilizing more revenues country has emerged as a role model among the through taxation and other means. It may be developing countries especially in terms of mentioned that Bangladesh's tax-GDP ratio is achieving rapid social progress even at a low level still one of the lowest in the world. For moving of per capita income. The performance of the forward, we must enhance our tax efforts. We economy, however, has suffered a temporary need to significantly expand the volume of public setback during the current fiscal year due to investment and improve its quality. We should political turmoil which affected the economic also remove the constraints facing the FDI.activities in the country especially during the

second half of 2013. The overall growth

performance of the economy during the year will How can we attract more FDI? Any critically depend on how fast the disruptions can be suggestions?amended and how soon normal economic Bangladesh has wide potential to attract more activities can resume. Already, the economy has FDI for which the creation of an investment-succeeded in bringing back normalcy to a large friendly climate is a pre-condition. During this extent over the last two months and our year, many investors were discouraged to invest expectation is that growth of the economy will due to political uncertainties. Besides, in this age rebound to its usual pace in this year. For rapid of globalization there is a stiff competition development, it is important to recognize that a across the countries to attract more FDI hence stable socio-political atmosphere is a pre-condition Bangladesh must create an edge over other for a properly functioning economy. Otherwise the countries to have a bigger share of global FDI. wheels of the economy would be sluggish affecting We have to prove the investors from home and almost all sectors of the economy and slowing abroad that there are wider opportunities in

thdown overall development. According to the 6 Bangladesh!Five Year Plan, our GDP growth rate should reach The country already has enacted rules and 8 percent in FY2015 which requires a significant regulations to bring more FDI in the country. acceleration of economic growth from its current The challenge now is to ensure their proper level of around 6 percent. This means that the implementation so that the investors find this development process has to further grow and country as more attractive for investment. For the accelerate to reach the stipulated targets. purpose, the country must get rid of political

uncertainty and ensure good governance. Do you think it is possible to become a We should strive to change the image of

Bangladesh in the outside world and promote it middle-income country by 2021?as the most preferred investment destination of Bangladesh definitely can emerge as a middle the foreign investors. The facilities given to the income country by 2021 provided we fulfill follow foreign investors should be streamlined, a development path that would fulfill the bureaucratic hurdles should be removed, and the requirements through availing the tremendous mechanisms should be simplified. The efficiency. opportunities that the country possesses. We have

We need to work hard to enhance faith in overall food would rise faster as income rises. The twin

corporate governance. For this, a stable objective of the food policy should be ensure both

environment is necessary where policies have food and nutrition security for all.

longer term vision and are predictable favoring With the rising share of the middle-class in the

loner term investments in FDI with reasonable society, the pattern of food demand will rapidly

returns. change along with rising incomes and changing

lifestyles. Diet diversity will have to be taken into

account in devising relevant policies. For Among all the sectors, which one agriculture in Bangladesh which is confronting according to you demands the most declining availability of land for crop production,

coveted attention from the new technology is the key to raising production of

government? all crops and other products such as livestock and Keeping the g rowth and investment fishery products. In Bangladesh, the public sector

perspectives, energy and transportation sectors must invest heavily in agricultural R& D to adapt deserve special attention. For attracting new technologies and implement forward looking investments, physical barriers like availability of agricultural policies including value chain land at reasonable prices can facilitate investments development to ensure adequate incentives to the in productive activities. Overall, the. government millions of small farmers to increase productivity should prioritize investments that would break the and production. For meeting the demands of barriers that are deterring the private sector from agriculture, effective land use planning should be increasing investments in various sectors. adopted.

For moving forward, skill development is

crucial, especially in the mid-level management How can we mix trade and aid to and technological skills including ICT. The

ensure a win-win situation for present skill development programs fall far short

donors and recipients?of what is needed for the country to enter into the In the present globalized world, trade can play a knowledge economy. The government needs to

key role in fostering development in a country like invest heavily to expand market relevant skill Bangladesh. The role of aid especially that of aid development programs through revamping for trade is critical to realize the potentials of trade existing technical schools in the public sector and in development. Various dimensions of trade can establishing new institutes with close links with be facilitated by aid to realize the potentials. In this the private entrepreneurs and under public-private context, both development and business sectors partnership.should be working hand in hand.

In this respect, bilateral business chambers can BIDS has been working on several play a significant role. They can help in capacity

projects related with Bangladesh's building for the private sector institutions and

agro sector. Would we be able to feed individuals as well as help in conducting scoping our growing population by 2021 if missions to attract foreign investors and enhance

trade. For example, BGCCI can identify and help agriculture keeps developing at the Bangladesh in exploring Germany's trade current pace?potentials. It can help find the loopholes and

The food security agenda has received renewed constraints in the system that work against the

emphasis in Bangladesh especially after the global business sector especially in promoting and

food price hike in 2007-2008. We have become diversifying trade. In this context, capacity

almost self-sufficient in rice, the staple food grain. building in meeting quality requirements is a

However, the perception of self sufficiency in rice critical area for cooperation. Along with

alone is not adequate. We need to ensure enhancing the existing relationship between the

productivity growth in many other food items two countries, the collaborative framework should

including nutritious food such as protein, fruits, oils also look for newer horizon in deepening the

and others to supply a balanced diet for the partnership.

population. Moreover, the demand for non-cereal

The facilities given to the foreign investors should be streamlined, bureaucratic

hurdles should be removed, and the mechanisms should be simplified.



Managing Director, Giant GroupFormer Vice President, BGMEA

Q

#EconoConversation

FARUQUE HASSAN

What is the condition of readymade garments sector right at the

moment?

The overall situation is improving. Last year, November-

December month was worst in Ready made garments sector's

history. Many factories were closed due to political violence. The

affect of which will be felt now. March and April of this year may face a

crunch in overall RMG export. However, as stability is back, buyers are

now visiting our factories. Regaining their confidence was one of

The whole clothing sector is going through a paradigm shift,

that can almost double the current export rate.


the most important tasks we had, which we thinking about paying more for their outsourced

successfully earned back. At the same time, we are products. Also, they will have to take into

venturing into new emerging markets. consideration the cost of being compliant.

To meet the challenges of tomorrow, we need Do you think the current leadership at both product and market diversification. We are BGMEA can take Bangladesh's RMG coming out of an era of seasonal export. Now we

sector to a new height?work round the year, which is definitely going to

A. I personally believe BGMEA achieved a lot give a big boost to our business. We hope duty free

instead of many limitations. In the RMG sector, as access to new markets like India, Korea, and Japan

you know there is a big shortage of energy and is also going to add momentum. So, I am

infrastructure. Until now we have been doing optimistic about the overall condition. This year

capacity building, whereas the next generation of will help us seize new opportunities. Provided the

RMG owners will be more tech savvy and situation remains stable, we can do much better.

environment conscious. They would like to reduce

their water or carbon footprint. To buck up with A lot of incidents of RMG unrest took

them, the existing leadership will need to become place last year. What was responsible more dynamic. We need more coordinated effort. for that? The whole clothing sector is going through a

You see, compliance and safety issues are big paradigm shift, that can almost double the current

nowadays. The two massive accidents at Tazreen export rate. For that, working closely with

Fashion and Rana Plaza showed us the result of BKMEA, BTMEA, etc. is very important. From

being irresponsible. I am happy that deals like the government's side, we look forward to proper

Accord, Alliance were done and we could form a policy support and making processes easier for a

National Tripartite committee. At BGMEA, we greater good.

have always been strict about factories that did not

abide by the rules and regulations. Yet, there are India is breathing on the shoulder of some 800 unrecognized factories, which work as Bangladesh. Should we be worried?subcontractors for various big brands. We are

Yes and no. Currency rate is an important factor trying to map out their locations and bring them

in the international business. If you look at the under BGMEA's scrutiny. Though there are still

data, Indian Rupee was 28% devaluated and 1.8% discontents about compensations to the Rana

appreciated in last one and a half year. To gain the Plaza victims, we are trying hard to rise up to the

competitive edge, we need export friendly expectation.

currency rate.One important thing is that the workers here

Also, utilities, logistic support etc. are readily are easy to manipulate as they have little

available in India. Their government is giving knowledge about trade unions and their rights.

many incentives to the RMG owners. They are the This, in many ways, fuels workers' unrest.

second largest raw cotton exporters in the world. Nevertheless, we have increased the minimum

Their backward linkage is also good. wages for the workers, which is welcomed by both

Gradual currency depreciation will help us gain workers as well as factory owners. In fact, we

competitive advantage. The government should cannot think about the betterment of a factory by

provide gas and electricity to factory owners on keeping its workers less-motivated due to meager

priority basis.payments.

Bangladesh has a serious image crisis Is the wage hike going to affect pricing

in the international media due to of a product?

RMG sector. What's your take on that?It certainly is. It is unfortunate that a vicious

Many positive things are happening all around. cycle of ill pricing has become prevalent in the

We need to spread the good news. I believe a new RMG sector. As we are trying to move up the value

form of dynamic leadership at BGMEA will help chain and offer more skilled, sophisticated service,

the international media change their perception that is going to make the whole pricing strategy a

about Bangladesh that is trying to become a bit more complex. The wage hike is going to send a

middle income country. signal to our buyers that it's time they started


Q Politics and business can walk side by side, provided both

have a common goal: making the economy stronger.

RUBEL AZIZ Managing Director, Partex Group

Last year has tumultuous for business, right?It was a very tough year, for everyone, big enterprises as well as small and medium

ones; the latter suffered big time. As an exporter, my woes were manifold and

interlinked. Due to blockade and hartals, we could not meet export delivery timelines.

We tried frantically but ended up being defaulters. Every single transportation cost

sky rocketed, small trucks that carry our goods were charging 5-6 times higher the

money; a big volume of air shipment charge gave every exporter sleepless nights.

Above all, the chaos, uncertainty, the fear was too bad for a developing economy,

which is still looking for a suitable roadmap to become a middle-income country.

#EconoConversation


high morale, patriotism but also there are many How to turn around the situations?who are polar opposite of the former breed and Political instability is the cryptonite for our only do politics to become rich overnight. For economy. The first and foremost job of the this, you will see more people are interested to government is to ensure sustainable growth. And try their luck in politics and very few to do how to do it? Fixing the transportation system is a business, as it involves a certain amount of risk cry of the moment. If you look at the history of and demands leadership skills to become a South Korea, the country had the same GDP as successful entrepreneur. My point is, a ours in 1971. Where are they now right now? Our politician's job is to ensure that the right policy is roads and highways are in shambles. The there. Besides, many a times, we businessmen government should pour a heavy dose of attention spoil these politicians for our future gains and in that sector and come up with a visionary plan. this is absolutely polluting the whole system. We must seek international cooperation in the This has to be stopped, prevented. One way is to form of financing, building and maintenance since tighten up corporate governance. I believe all we ourselves cannot do everything, let alone in a good businessmen are law-abiding and truly short period. While calling for international believe that their responsibility is not only to tenders for mega projects for highways, we have to amassing wealth but to make the best use of that ensure transparency. Live telecast of tender wealth for the betterment of the country. But openings will earn trust of both local people as when the policies are fussy and full of well as international bidders.loopholes, through which delinquency makes its Then comes the electricity shortage. We are a way in, businessmen become frustrated. Pro-power-hungry economy and for us quick rental business politics can help us in this regard.may prove beneficial for the time being, but not in

the long run. Coal-based or atomic power plants

hold the key to solving the problem of power What kind of roles should Chambers shortage and we have to start our march towards play to help business grow?that future. Business chambers should be the hub where

On a different note, I am not a big supporter ace businessmen can come together to share their of subsidies. Let me give you an example of my visions and find ways to advice reforms that can own business. We export threads. Government ease the process of expanding an already existing provides 7.5% subsidy for exporting yarn and business or a newly set-up venture. For that, we 10% for sacking bags. As a producer, I do not expect that the officials from Government's side want it. When government offers subsidies in too will give proper and patient hearing. In any sector, both buyers and sellers know about it addition, policy implementation is also very and the pricing of that good is done accordingly, important or everything will remain the same. On which in fact, makes the buyer a gainer. And then the other hand, the Chambers should ensure that there is bureaucratic red-tapism to rub more salt they have genuine exporters and importers, who to the wound: to get the subsidized money, know the business firsthand; know what needs to businessmen have to bribe in different levels of be done to make things easier for any particular government. The solution is to provide no industry or sector. Businessmen who only subsidies in this market, since India is already become members or fancy big posts in Chamber charging a lot higher price than ours, the fear of to increase social status should be discouraged losing buyers is baseless. We can offer a more because they, in fact, have very less to offer to the competitive price and make profits from our chamber.buyers and above all, no hassle of pleasing bribe-

mongers. I can give many other examples like

this. My point is: policies should be user-friendly;

to help us unlock the potential not to paralyze the

overall process.

Can politics be separated from

business?Politics and business can walk side by side

provided both have a common goal: making the

economy stronger. Unfortunately, we see a

different kind of practice in our country. Here

politics is an easy way of becoming a gainer.

History is full of examples of politicians with

My point is: policies should

be user-friendly; to help us

unlock the potential not to

paralyze the overal l

process.

Documents

Emerging Bangladesh Vol 2 Issue 1