Plan to create databank on blue economy hits snag

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Plan to create databank on blue economy hits snag

The government’s move to create a databank on the blue economy has hardly made any progress mainly due to lack of necessary information in this regard, officials said.

A coordination meeting on the blue economy was held recently with chief of the Blue Economy Cell (BEC) Golam Shafiudin in the chair.

The meeting was informed that the ministries, divisions and agencies were not providing their information on the blue economy regularly. Besides, they did not submit the implementation progress reports accordingly. For this, the move for creating the data bank on the blue economy was not progressing at expected level.

The blue economy cell chief asked all the ministries, divisions and agencies concerned to provide required information on the blue economy including work plan, different latest implementation progress reports and others.

He also asked the authorities concerned to take various steps to enhance the implementation rate of the decisions and projects taken on the blue economy.

The first meeting on the blue economy was held in August 2014 aiming to take up central strategic and action plans for the ministries, divisions and agencies concerned, a high official said.

A 25-member ‘Coordination Committee on Sea Resources Exploration and Fair Management’ headed by Principal Secretary to the Prime Minister’s Office (PMO) was formed on August 20 in 2014. Some 60 decisions were taken in different meetings, but most of them were not implemented to date.

The committee, comprising senior secretary, secretaries and top executives of different ministries and organisations, was supposed to sit in every three months, prepare strategies and monitor implementation of the decisions on the issue.

The rate of implementing the decisions was much below the expected level. For this, the PMO in a review meeting last year asked the ministries and departments concerned to enhance the implementation rate in future, the official said.

The government in January 2017 set up the BEC under Energy and Mineral Resources Division for exploration, conservation, and sustainable collection and management of natural and mineral resources in the Bangladesh territory of the Bay of Bengal.

The BEC could not advance as per the government plan due to lack of proper coordination among the implementing ministries, divisions and agencies. “It’s very difficult to work without coordination because it is a big task,” the official mentioned.

The Bangladesh Navy is working for fishing in deep areas and marine tourism to ensure security of sea resources, according to a source in the environment, forest and climate change ministry.

Three more ports are being set up for export-import activities in future. Skilled human resources are being developed through five marine institutes under the expatriates’ welfare and overseas employment ministry.

Besides, the industries ministry has taken initiative to set up two ship recycling factories in Barguna and Patuakhali.

When contacted, a high official of BEC said the progress in the blue economy was slow due to lack of coordination among the ministries/divisions concerned.

The PMO now coordinates the activities of the blue economy. Currently, the cell is under the Energy Division.

Create more jobs for youths

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Create more jobs for youths

President asks businessmen as DITF kicks off
Bss, Dhaka
—————-

President M Abdul Hamid yesterday urged the business community to come forward to create more job opportunities for the country’s youths.

“Thousands of meritorious youths come out successful every year with higher studies…it is urgent to create job opportunities for them and you have to come forward in this regard,” he said.

The president was addressing the opening session of a 24th Dhaka International Trade Fair (DITF-2019) at Sher-e-Bangla Nagar in the afternoon. Stressing on the need for setting up new industries and factories in the country to utilise the comparative facilities and explore its potentials, the president said, “This will help enhance employment generation and investment”.

He further called upon both the local and foreign investors to explore the potentials of Blue Economy as the government’s marine-based economic activities have opened a new horizon of progress.

Abdul Hamid underscored the need for attaining expertise to expand trade and commerce, creating new markets and diversifying the country’s export baskets.

“You have to take pragmatic steps to produce quality goods along with enhancing productivity, branding products, and making those more attractive,” he said. The president also urged business leaders to take necessary steps to increase export of jute and agro products, including frozen shrimp, mango and potato.

He said Bangladesh exported 750 items of products to 202 countries during fiscal 2017-18 while the export volume reached at $41 million.

Abdul Hamid hoped that the DITF would play an important role in implementing the multi-faceted economic plans, which would help accelerate the country’s development.

Later, the president inaugurated the month-long DITF-2019 and visited several stalls and pavilions there.

The Ministry of Commerce and Export Promotion Bureau (EPB) jointly organised the trade fair, which will remain open for all from 10:00am to 10:00pm every day.

A total of 550 stalls and pavilions, including 60 premium pavilions, 38 premium mini pavilions, 20 reserved pavilions for women, 26 foreign pavilions, 18 general pavilions and 22 food stalls, will be set up in the fair venue.

Different business entities from India, Bhutan, Pakistan, China, the United States, the United Kingdom, Nepal, Australia, Germany, Hong Kong, Thailand, Vietnam, the Maldives, Mauritius, Russia, Iran and Swaziland are participating in the fair.

Commerce Minister Tipu Munshi, Commerce Secretary Md Mofizul Islam, Federation of Bangladesh Chambers of Commerce and Industry President Md Shafiul Islam Mohiuddin, Export Promotion Bureau Vice-Chairman Bijoy Bhattacharjee, business leaders, secretaries concerned to the president and senior civil and military officials were, among others, present.

‘Chinese loan won’t be debt trap for BD’

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‘Chinese loan won’t be debt trap for BD’

Five loan deals, three MoUs to be signed during PM’s visit to China, Foreign Minister A Momen tells media

 

Chinese loan will not be a debt trap for Bangladesh as the country examines the feasibility of the loan project cautiously, foreign minister Dr AK Abdul Momen said on Friday.

The minister made the remark when his attention was drawn to criticism that loans taken under the Chinese Belt and Road projects flung many South Asian countries into the debt trap.

He was briefing reporters about Prime Minister Sheikh Hasina’s upcoming visit to China at the foreign ministry.

He said due to this caution many loan agreements were dropped as those were not found feasible for Bangladesh, he added.

Hasina will start for the Chinese city of Dalian on July 1, by a special flight of Bangladesh Biman and will return home on July 5.

The foreign minister said that five loan agreements and three MoUs will be signed during the PM’s Beijing trip. These are: Framework agreement of “Expansion and Strengthening of Power System Network under DPDC Area, government concessional loan agreement on “Expansion and Strengthening of Power System Network under DPDC Area Project”, preferential buyer’s credit loan agreement of “Expansion and Strengthening of Power System Network under DPDC Area Project,” framework agreement on “Power Grid Network Strengthening Project under PGCB” project, and agreement on Economic and Technical Cooperation between the two governments.

The MoUs include the establishment of Investment Cooperation Working Group and its implementation plan on hydrological information sharing of Yalu Zhangbo /Brahmaputra River; and cultural exchange and tourism programme.

Responding to a question, the minister said the amount of the loans for which agreements will be signed during the visit is yet to be finalised.

Responding to another question, the minister said China maintains identical relations with Bangladesh and Myanmar and the perception that the Asian giant is biased toward Myanmar is not true. About the Chinese veto in the UN Security Council’s resolution against Myanmar, he said that there might be other reasons behind that.

The minister pointed out that China was eager to resolve the Rohingya crisis from the beginning and it wanted to settle the problem through bilateral discussions between Myanmar and Bangladesh.

The prime minister will attend the summer conference of the World Economic Forum, which will be held from July 1 to July 3 in Dalian city of China.

She will speak at the World Economic Forum on July 2 with the focus on ‘Future of Asia’ and Bangladesh’s socio-economic development.

From Dalian, she will go to Beijing on July 3 and on the same day she will attend a meeting organised by expatriate Bangladeshis in China, the FM said.

During the meeting, she will meet the Chinese President Xi Jinping on July 5.

The Prime Minister will meet the Chinese Prime Minister Li Keqiang twice-the first on July 4 and then on July 5, the minister mentioned.

The foreign minister said Rohingya issue will be key focus of the PM’s meeting with top Chinese officials.

mirmostafiz@yahoo.com

Local e-commerce leaders seek protection to offset risk of losing business

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Amazon, Walmart to enter Bangladesh in two years

Local e-commerce leaders seek protection to offset risk of losing business

Star Business Report
American e-commerce giant Amazon and retail heavyweight Walmart will start operations in Bangladesh within a couple of years as the global companies are increasingly making foray into the market, said a Bangladeshi entrepreneur yesterday.

Walmart already has a very big office in Dhaka and is planning to start business while Amazon is in talks with the government, said Rezwanul Haque Jami, vice-president of the e-Commerce Association of Bangladesh (e-Cab).

With the launch of their operations, the market ecosystem will change and the local players will feel the heat, he said. Chinese e-commerce giant Alibaba is already operating in Bangladesh through Daraz, said Jami, also the coordinator of the government’s e-commerce project Eakshop.

He spoke at a roundtable on “Local e-commerce industry: issues, challenges and solutions” at The Daily Star Centre in Dhaka. At the discussion, local e-commerce companies called for protection in the fast-expanding online market as the government plans to allow foreign companies to own 100 percent stakes in local ventures.

They said they are not against foreign investment but the government needs to protect local investors.

“We need foreign investments. At the same time, local companies which have been nursing the market for the last seven years also have a right to get protected,” said Muhammad Abdul Wahed Tomal, general secretary of e-Cab. The country’s top 10 homegrown online ventures organised the discussion in the backdrop of the government’s initiative to amend the recently approved Digital Commerce Policy.

On July 16, the cabinet had approved the Digital Commerce Policy, limiting foreign investment at no more than 49 percent in local e-commerce ventures.

But the government decided to reconsider the limit when some global players operating in Bangladesh voiced concerns about it. The government plans to allow foreign companies to own 100 percent shares in local e-commerce ventures.

The size of the local e-commerce market size is about Tk 1,000 crore and about 100 ventures account for Tk 700 crore in annual sales. Currently, the market is catering 30,000 orders a day and it is more than doubling every year.

“The market has been growing at more than 100 percent every year and has enormous opportunity to grow further,” said Tomal.

Local ventures said the government needs to clear its position on whether only two or three foreign players will dominate the market and grab all the businesses after two years or there will be some local ventures alongside the foreign entities.

Global players usually enter a market and capture it within a couple of years through price dumping like they did in Pakistan, Sri Lanka and some countries in Africa, said AKM Fahim Mashroor, founder of ajkerdeal.com, one of the leading local e-commerce ventures.

The e-Cab is preparing a list of recommendations about the policy which will be sent to the government. The e-Cab will propose foreign companies recruit 90 percent of their staff from locals to run operations in Bangladesh, said Tomal.

Other recommendations will include: foreign firms will have to host their websites locally and ensure warehouse’s presence and customer data security.

Zeeshan Kingshuk Huq, co-founder and chief executive of kiksha.com, said foreign investment is needed to develop the local market, not to destroy it.

“The US, the UK, China and India are the most protected market. Thanks to this protection, their local firms are capturing the rest of the markets in the world.”

Asikul Alam Khan, founder and CEO of PriyoShop, said new challenges have emerged at a time when the market is just getting ready to take off.  “We have nurtured the market and it is moving towards maturity. Now, some global giants want to capture it.”

Mahmudul Hasan Sohag, chairman of OnnoRokom Group, said foreign companies want a level-playing field through a brutal process.

“But the government should understand the level-playing field by looking at historical context and country perspective.”

Syed Mohammad Kamal, country manager of MasterCard Bangladesh, said the Digital Commerce Policy was passed following a huge consultation process.

The government should follow the same before amending it, he said.

Senior officials of e-commerce firms such as bagdoom, pickaboo, othoba, nrbbazaar, and HungryNaki were also present.

“We need to build residential apartments outside the capital to meet the housing needs of future generations”

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“We need to build residential apartments outside the capital to meet the housing needs of future generations”

In conversation with Alamgir Shamsul Alamin (Kajal), President, REHAB

What is the current scenario of the real estate industry in Bangladesh?

Despite going through a transitional phase, the real estate sector maintains its stability in terms of market and price. The sector is not as volatile as it was before. During 2016-17, on average, nearly 8,000 apartments were handed over.

However, as the country is heading for a parliamentary election, people do not want to undertake any risky ventures by investing a large amount of money in the housing market. It is expected that the market will retain its stability once the general election takes place.

What are the changes you have observed in the real estate sector over the past few years?

Many transformations and changes are discernible in this sector. We see a phenomenal transition regarding the acceptance of the industry. People were not ready to move into the apartment during the industry’s inception. But then again, they started to accept the concept of residing in apartments. The growing population and increasing land constraints have led to an increase in demand for apartments.

Earlier, people preferred cash transactions when dealing with purchasing formalities. But now customers seem to rely on financial institutions like commercial banks to get financial assistance and home loans. Finally, the real estate developers have replaced the small-storey building with multiple-storey ones to meet the commercial and residential needs.

What is your opinion on the ways in which population growth in Dhaka city can be accommodated?

Dhaka city has almost gone beyond its capacity. For now, the real estate companies should build residential buildings outside the city to accommodate the housing needs of the next generation. Our capital is now overburdened, for which the system is unable to offer more utility services, road facilities, sewerage system and other essential needs. Moving to another town is a good option to live a better life in a decent environment. The initiation of metro rail and elevated express provides real estate companies with a new opportunity to move their business outside Dhaka city.

What role can REHAB play to cater to the middle- and low-income groups?

REHAB is collaborating with the government to build some apartments in the government-designated lands, particularly in Mirpur. The members of REHAB are involved in this project and their objective is to reduce the price of these apartments to support the middle-income group. If these designated lands are allocated with proper road connectivity and utility services, the cost will significantly reduce.

It is true that the middle- and low-income groups cannot afford an apartment without consistent financial assistance. Most of the countries around the world offer such financial support for their citizens. Unfortunately, we do not have such kind of a support system. Recently, our government sanctioned funds for government employees and the funds will provide the employees with long-term financial support to purchase an apartment. It will definitely create a good housing market for the real estate sector. If the government initiates long-term home loan facilities for the general people as it did for the government employees, more people will be able to afford an apartment.

What are the challenges that the real estate sector is facing?

The major challenge of this sector revolves around the availability of raw materials. Most of the raw materials required for construction are imported. The housing market gets affected largely due to the fluctuation of the dollar rate and import duties.

The real estate sector also faces difficulties in coping with the increasing price of construction materials. The developers are now having a tough time meeting the expected price of consumers. Regarding this, REHAB arranged a series of meetings with the government and concerned parties to reduce the cost of construction materials.

The government should provide the real estate companies with increased road connectivity surrounding Dhaka and all the other big cities. Road facility, electricity and utility services in other cities can facilitate the sustainable growth of the housing market.

Bangladesh Delta Plan 2100 – making growth sustainable

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Bangladesh Delta Plan 2100 – making growth sustainable

Shamsul Alam

 

Bangladesh crossed over from a low-income economy to a lower middle-income economy in 2015. The country has already fulfilled all the criteria of graduating from least developed country (LDC) to a developing country.

Making this growth sustainable is challenging in the face of extreme adverse climate variability – frequent storms and tidal surges, flooding and droughts. Climate change is a serious threat to sustainable development. If nothing is done by 2050, climate change impact could make an additional 14 per cent area of the country extremely vulnerable to floods and dislocate more than 35 million people in the coastal districts.

At the macro-level, combined effects of climate change could range from a loss of 1.3 per cent of gross domestic product (GDP) per year in a moderate climate change environment to 2.0 per cent of GDP per year in an extreme climate change environment. In order to materialise the goal of becoming a developed country by 2041, addressing the likely impacts of climate change calls for an integrated approach for future land and water management in relation to water safety, agricultural growth and food security. The recent and future anthropogenic changes in the hydrological cycle due to climate change, construction of dams and barrages in the upstream countries in combination with increasing water demand are expected to make future water governance and management even more challenging. Climate issue is all-encompassing and often requires long time to understand its patterns and impact, and therefore, a long term plan is needed to address climate adverse impacts.

A number of sectoral plans have been developed so far in Bangladesh, but they tend to be short term oriented and are independently run by different ministries. It need not be emphasised that the issue, given its crucial importance, requires long term strategies and multi-sectoral coordinated policy management. Being one of the largest as well as most dynamic deltas of the world built by the confluence of the three mighty rivers– Ganges, Brahmaputra and Meghna– the country faces major inter-related delta challenges in water safety, food security and land degradation, and is prone to natural calamities such as floods, river erosion, cyclones and droughts. The challenges are both man-made and natural. The country is equally characterised by its resilience, the ability to adapt to changing climatic and economic conditions and advantage gained from the abundant natural resources available in the delta.

In view of the long-term challenges presented by climate change and natural hazards, the General Economics Division (GED) of the Bangladesh Planning Commission has formulated ‘Bangladesh Delta Plan (BDP)-2100’ with support from the government of the Netherlands. The Memorandum of Understanding (MoU) signed between Bangladesh and the Netherlands in 2012 on delta planning laid the foundation of BDP-2100.The preparation of BDP-2100 was officially launched in August 2014.

Management of this delta has therefore always been a key concern in both political and development agenda since long. Almost all the political movements during the pre-independence period invariably included demand for flood control, disaster management and irrigation measures; it is so because those were the major causes of extreme poverty prevailing at that period within this delta. The election manifesto of the United Front in 1954 advocated for protection of the country from extreme floods and famine and improving irrigation systems. Father of the Nation Bangabandhu Sheikh Mujibur Rahman was always committed to develop flood control, drainage and irrigation facilities in the country and repeatedly demanded implementation of the Krug Mission report. Immediately after independence, Bangabandhu established the relief ministry giving special attention to building a disaster resilient country through minimising losses of lives and properties caused by different natural hazards including cyclone and floods. He established Bangladesh Water Development Board (BWDB) in 1972 materialising the recommendation of the Krug Mission, bifurcating the then East Pakistan Water and Power Development Board (EPWAPDA) to accelerate the implementation of the flood control, drainage and irrigation measures. He took keen interest in solving the transboundary water issues and established Joint Rivers Commission on a permanent basis in 1972. Bangabandhu had installed earthen forts locally known as ‘Mujib Killa’ in coastal regions aiming to provide shelter to coastal flood and cyclone affected people along with their livestock. The First Five Year Plan of Bangladesh (1973-1978) that was prepared under his guidance as the Chairman of the Planning Commission put strong emphasis on sound management of water resources. Many of the strategies and policies for sound management of water resources highlighted in the first five year plan are as relevant today as they were then suggesting the far-sightedness of Bangabandhu in identifying the need for holistic management of water resources and flood management.

BDP-2100 has been conceived as a techno-economic, long-term, holistic, water-centric integrated plan. An interactive planning process has been followed for the finalisation of this mega plan over last four years. BDP-2100 focuses on how to enable socio-economic development under uncertain changing conditions, especially regarding climate change and scarce water resources. The plan is holistic, considering many themes and sectors and bringing together individual strategies as well as integrated ones for the whole country in a single plan.

BDP-2100 sets up a long-term vision for the evolution of the Bangladesh Delta by the end of the 21st century towards ‘achieving a safe, climate resilient and prosperous delta’. As steps to reach that vision, it envisages short to medium term goals to achieve upper middle income status eliminating extreme poverty by 2030 and become a prosperous country by 2041 with the longer term challenge of sustainable management of water, ecology, environment and land resources in the context of their inter-relation with natural disasters and climate change. The BDP-2100, therefore, seeks to ensure long term water and food security, economic growth and environmental sustainability while effectively reducing vulnerability to natural disasters and building resilience to climate change and other delta challenges through robust, adaptive and integrated strategies and equitable water governance. Socio-economic transformation has been visualised in this plan keeping in consideration climate change as an exogenous variable in growth equations.

Implementation of the BDP-2100 involves total spending on delta-related interventions, through new projects and maintenance of new and old projects, which will gradually increase up to a level of 2.5 per cent of GDP per annum by 2030– of which 2.0 per cent of GDP would be from public funding and rest 0.5 per cent would be from the private sector. The strategy for public funding involves a combination of tax financing, application of cost recovery based on ‘beneficiary pays principle’ and mobilising foreign funding including tapping the global Green Climate Fund (GCF) initiative. The BDP-2100 Investment Plan up to the year 2030, prepared in cooperation with World Bank group, consists of a total of 80 projects: 65 are physical projects, and 15 are institutional and knowledge development projects. Its total capital investment is estimated at Tk 2,978 billion ($37 billion). The investment plan projects have been selected following multi-criteria analysis and in-depth consultation with the stakeholders. The six hotspots are i) Haor and Flash Flood Area, ii) Coastal Zone iii), Chattogram Hill Tracts, iv) Urban Areas, v) Drought prone Areas, vi) River Systems and Estuaries. BDP 2100 took almost four years to give it a final shape to kick off. This comprehensive, techno-economic mega plan stretching a period to the end of the current century is the best gift to the future generations by the present generation.

Dr. Shamsul Alam is Member (Senior Secretary), General Economics Division, Bangladesh Planning Commission and

lead author of Bangladesh

Lack of data a barrier to attaining SDGs: expert

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Lack of data a barrier to attaining SDGs: expert

Star Business Report

Agencies working to attain the sustainable development goals (SDGs) in Bangladesh are facing five major challenges, Muhammad Muslim Chowdhury, finance division secretary, said yesterday.

Unavailable data, lack of development capacity, absence of ownership among the implementing agencies, policy gap, and implementation gap are major challenges to implement the SDGs, he said.

He was giving a presentation at a session of a three-day “National conference on SDG implementation review” organised by General Economic Division (GED) under the Planning Commission in the capital’s Bangabandhu International Conference Centre.

Some 26.14 percent of the information relating to 241 indicators of SDGs is not available with Bangladesh, according to a study by the GED released in January this year.

The report said data availability would be a daunting challenge as merely 29 percent data was readily available in the existing system and 26 percent data is not at all available.

The GED study revealed that data related to 70 indicators was readily available in the existing system, while data related to 63 indicators is not available at present. Some 108 units of data are partially available.

Bangladesh would need $928 billion in additional investment till 2030 to achieve the SDG’s targets.

It will also require $2 billion to $6.91 billion in foreign direct investment (FDI) per year to fill the investment gap to attain the target of SDGs.

The finance secretary stressed the need for public private partnership (PPP) to mobilise additional funds to implement the SDGs. Addressing the programme, Mohammed Farashuddin, former governor of Bangladesh Bank, suggested taking initiatives to reduce inequality.

Shafiqul Azam, secretary to the Economic Relations Division (ERD), said 15 percent of the additional investment would come from external resources. Out of the external resources, 5 percent will be official development assistance and the rest is expected to come as FDI, said Azam.

However, he said the increase of cost of foreign loans due to graduation to a lower middle income country would be lower than the domestic loans.

He further said the development partners would like to continue their support to implement the SDGs.

M Mosharraf Hossain Bhuiyan, chairman of the National Board of Revenue, and Yunusur Rahman, senior secretary to the bank and financial institutions division of the finance ministry, gave presentations on their ministry initiatives regarding the SDGs.

Earlier at the opening session MA Mannan, state minister for finance and planning, urged public servants, NGOs, development partners and international agencies to work more diligently with the government like in the past to help attain the SDGs.

Prime Minister’s Principal Secretary Md Nojibur Rahman spoke at the inaugural session as a special guest while GED member of the Planning Commission Shamsul Alam also spoke on the occasion. “Without the support of the international community, we won’t be able to meet the additional resource gap,” Rahman said.

“If the international community and development partners join hands together with us, we will be able to fulfil the gap of additional financing.”

Rahman, however, reminded all to keep in mind the “emerging need of the hour”, which was the Rohingya issue.

Principal Coordinator on SDG Affairs at the Prime Minister’s Office Md Abul Kalam Azad moderated the function.

He said the government has confidence on its development partners and the other stakeholders on the development process of the country.

A really simple entry

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Jazzy Jazz, music at its best

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