ICE Business Times, July 2017 by ICE Media Ltd.

Contents TIMES

From the Editor

WORD OF MOUTH 08 State of Affairs 12 Banking Corner 108 Happening 16 22

Column by Shamsul Huq Zahid Column by Khandaker Anwar Ehtesham

ASK THE EXPERT 66 Mohammed Masud Rayhan COVER FOCUS 38 Here Comes the Sun INTERVIEWS 24 Dave McCaughan

Co-Founder and Chairman, Marketing Futures

Faiyaz Ahmed

54 74 78

Co-Founder and Partner, Marketing Futures Zunaed Rabbani, CEO, Agro Input Retailers' Network Tanjim Haque, Managing Director & Creative Head, Ecstasy Tasneem Omar Ava, Chief Operating Officer, Synergy

Contents TIMES

a global business magazine from bangladesh

TIMES

Vol. 7 No. 11 | July 2017

Publisher & Editor Director, International Publications Executive Director Managing Editor Assistant Editor Staff Feature Writer Business Development Manager Designer Business Development Finance & Accounts Sales & Distribution

: : : : : : : : : : : : :

Abul Khair Zeenat Chowdhury Nawshin Khair Tawhidur Rashid Irad Mustafa Nasirra Ahsan Asaduzzaman Sk. Yeahhia Md. Nizam Uddin Forhad Mohammad Imran Md. Abdul Alim Md. Nazrul Islam Md. Rubel Khan

This issue’s Photographs by Din M Shibly Kazi Mukul

Editorial & Marketing Queries tawhidur.rashid@ibtbd.net or send us a note at www.facebook.com/icebusinesstimes www.twitter.com/BusinessTimesBD

Be sure to visit our website FEATURES 29 Special Report: Budget FY 2018 46 Special Feature: Reinvigorating the Workforce 50 A Look into How India Brands Itself to the World 60 Why Tesla Can’t be the New Apple 62 How You Can Build a Digital Startup 63 Pursuing a Sustainable Supply Chain 70 Corporate Team Building: Inspiring Fiery Optimism 76 The Seminar Solution 82 Impacting the Future 86 The Reality of Water Scarcity in Bangladesh 88 Beyond the Business 90 The American Sun Doesn’t Set in Paris 94 What Brexit Will Do to the English Premier League 98 Tech Updates 104 Breaking the Drone Code 110 Capital Market Update

www.ibtbd.net

Published by Abul Khair on behalf of ICE Media Limited Kushal Centre, Plot 29, Sector 3, Uttara C/A, Dhaka- 1230 and printed at M.K. Printers,189/1, Tejgaon I/A, Dhaka-1208 Editorial and Commercial office: 3rd Floor, House: 4, Block: B, Road: 23 A, Banani, Dhaka 1213 Advertising, Sales, Subscription and Distribution: 01812656961, 01715732425, 01759391168, 01850824294, 01611227676 Tel: 02 55035336-8, 09666773313

* Not all the views expressed in the columns and interviews are the views of the magazine.

FROM THE EDITOR The month of June has always been associated with the unveiling of the new financial budget for the coming year. On 1st June 2017, the financial budget for the fiscal year 2018 was presented by the Finance Minister A.M.A Muhith to the parliament. Once again the public has been presented with a budget whose mere size is awe inspiring. Nonetheless, fear regarding our fragile banking sector and an overall savings and investment climate of the country is running rampant. This has been further exacerbated by the new sources of revenue generation which might directly affect the welfare and stability of those in the middle and lower income groups. On the other hand, the government has made a marked effort to improve and expand its green growth practices. This has been done in the form of lowering duty levels on cars which consume less fuel and providing tax breaks for RMG firms who have incorporated sustainable business practices in the running of their businesses. Read more in our special report, Budget FY 2018: Through the Looking Glass (page 29). While we are talking about the green growth, it must be mentioned how globally there has been an effort to promote the use of renewable energy. The proposed duty to be imposed on the import of solar panels will significantly hurt the countryâ&#x20AC;&#x2122;s green initiatives. Environmentally, the solar power technology has zero carbon footprint while economically, to a population of 160 million it translates into enormous demand for solar modules because of their price point, efficiency, and ability to alleviate the broader problem of electricity in Bangladesh. Here Comes the Sun (page 38) is our cover focus on this topic. This finally brings us to the topic du jour: tax hikes. Duties which would be implemented in various areas from bank deposits to solar panels; uniform VAT has been proposed on all goods and services except essential items. Social media is abuzz with memes criticizing the proposed taxes. One thing in this connection, we must not forget that the majority of the people are not interested in paying the tax because they think they are not receiving the services that the state has promised to provide them in return. Starting from bad roads to electricity blips to the delayed water supply to inflated prices in the market: there are numerous legitimate reasons for the citizens to be irked over the imposed taxes and vats. But how do you make them understand the importance of taxes? One way is to impart more knowledge about taxes and how paying taxes boost the collection at national exchequer to provide for various projects the government is involved in. On top of that, the government must ensure timely completion of infrastructural and development projects so that citizens can reap the benefits and feel involved in the process of nation building. But let's not get bogged down by all the financial deliberations. The month of July begins after a long Eid holiday and should give everyone enough time to adjust to the possibilities of the new. So hereâ&#x20AC;&#x2122;s wishing everyone an early Eid Mubarak from the team of ICE Business Times!

Word of mouth

S TAT E O F A F FA I R S

Honorable Prime Minister Sheikh Hasina attending the budget session of the FY 2017-2018 at the National Parliament

Honorable Prime Minister Sheikh Hasina attending a meeting organized by the National Housing Authority at her office

Honorable Prime Minister Sheikh Hasina at the iftar Mahfil organized in the honor of religious teachers, freedom fighters and orphans at the Ganabhaban

Honorable Prime Minister Sheikh Hasina attending the selection committee meeting of local government election (Union Parishad) at the Ganabhaban

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O F

M O U T H

S T A T E O F A F F A I R S

ICT State Minister, Zunaid Ahmed Palak handing over the Global MobileGov Award 2017 to Prime Minister Sheikh Hasina. Bangladesh won the award in â&#x20AC;&#x153;National Mobile Application Development and Capacity Building Programâ&#x20AC;? Category

Honorable Prime Minister Sheikh Hasina attending a meeting at the Executive Committee of the National Economic Council

Honorable Prime Minister Sheikh Hasina inaugurating the National Tree Plantation Movement and Tree Plantation Fair 2017 on the eve of World Environment Day and Environment Fair 2017

Honorable Prime Minister Sheikh Hasina attending an Iftar Mahfil organized by Bangladesh Federal Union of Journalists and Dhaka Union of Journalist

Word of mouth

BANKING CORNER

SK Sur Chowdhur, Deputy Governor of Bangladesh Bank, giving his speech as the chief guest in the training program for participating fincial institution officials

BRAC Bank Limited organized a seminar on "Foreign Exchange & Interest Rate Risk Management" for its corporate customers. Selim R. F. Hussain, Managing Director & CEO, BRAC Bank, inaugurated the seminar at a city hotel in Dhaka

Dhaka Bank Limited recently signed a Memorandum of Understanding (MoU) with Sunlife Insurance Company Limited (SICL) in the Head Office of SICL at Banani. Under this agreement, policy-holders of SICL can now deposit the premiums at any branch of Dhaka Bank all over the country

Recently Jamuna Bank welcomed 17 years of banking service with a Milad Mahfil at its Head Office, 2 Dilkusha, Dhaka. The occasion was graced by Md. Ismail Hossain Siraji, Chairman, Jamuna Bank Limited, Al-Haj Nur Mohammed, Chairman, Jamuna Bank Foundation and others

W O R D

O F

M O U T H

B A N K I N G C O R N E R

A Contract signing ceremony regarding Electricity Bill collection has been accomplished between National Bank Limited & System Resources Limited on 6th June at NBL’s Head Office. Choudhury Moshtaq Ahmed, Managing Director (CC) of National Bank Limited & Md. Zahidur Rahman, Chief Technical Officer, System Resources Limited have signed the agreement on part of their respective organizations

A Memorandum of Understanding (MoU) was recently signed between NRBC Bank and Asgar Ali Hospital. As per the agreement, all VISA Card holders of NRBC Bank will enjoy 10 % Discounts on Lab Investigation, 10% Discounts on Bed Charges and 3% Discounts on Medicine and up to 12 months EMI facilities on treatment bill

Abrar A Anwar, CEO of Standard Chartered Bangladesh, speaks at a press briefing in the capital to promote China's “One Belt, One Road” initiative in Bangladesh. Sebastian Er, director of the executive committee of the initiative for Standard Chartered Bank China, and Naser Ezaz Bijoy, country head for global banking at Standard Chartered Bangladesh, were also present

Column

Thereâ&#x20AC;&#x2122;s More to Festivals Than Just Celebrations Bangladesh is a land of colorful festivals religious and purely homegrown ones. People do celebrate them with great passion and zeal. Some of the festivals are celebrated in much larger scale and some others by small sections of the population with not much pomp or grandeur. As a predominantly Muslim country, religious festivals such as Eid-ul-Fitr and Eid-ul-Azha are celebrated in this country with great festivity. The Hindu community also celebrates some religious festivals throughout the year, Durga Puja being the largest one that draws the most attention. For the Buddhists, the Buddha Purnima is the major festival while for the members of Christian community the celebration of Christmas remains the most important event. Besides the religious festivals, there are a few celebrations that have their roots in the soil of Bangladesh. The commemoration of those occasions annually is ingrained in the culture of this country. Festivals mean fiesta, joy, and merriment. The days that the people celebrate are, of course, different from regular days. The poor and the rich alike try to eat

By Shamsul Huq Zahid

THE WRITER IS A SENIOR J O U R N A L I S T. H E C A N B E R E A C H E D AT ZAHIDMAR10@GMAIL.COM

As a predominantly Muslim country, religious festivals such as Eid-ul-Fitr and Eid-ul-Azha are celebrated in this country with great festivity.

the best foods and wear new and beautiful attire. There's no denying that lower-income families cannot afford all the celebrations to their heartâ&#x20AC;&#x2122;s content. Regardless, they still try their best to celebrate the occasions, religious or otherwise, within their means. So, these celebrations do cost people money. Rich and poor alike are required to spend money in addition to their usual living expenses within their capacity. They spend additional amounts of money on food, clothing, transportation, etc., on the occasion of the festivals. And that is the economic aspect of the celebrations. Big festivals involve significant spending. However, most people do not mind spending an extra amount on festivals, depending on their capacity. Among all religious festivals in Bangladesh, Eid-ul-Fitr is the biggest of all. People spend a considerable sum of money every year on special foods, clothes, shoes, home-bound journeys and tourism on the occasion of Eid-ulFitr, celebrated at the end of the holy month of Ramadan. It is estimated that businesses involved in food and clothing do have nearly 25% of their annual turnover on one single occasion Eid-ul-Fitr. Traders make preparations and wait eagerly for this big event every year. Apparel makers try to be innovative in

C O L U M N S H A M S U L H U Q Z A H I D

bringing out dresses suiting the taste of the old and the youth. Footwear and electronic goods traders also target the Eid festivals. Some people choose these occasions to buy electronic goods, home appliances and furniture on the eve of the main religious celebrations. From time immemorial, people have been spending money on festivals. But with the passage of time, the spending has been on the rise with the businesses using various tools to woo customers. The development of the advertising industry has a role in the demand creation. Moreover, the mode of celebration has also changed over time. For instance, three to four decade back, during the Eid festivals, people besides visiting the houses of friends and relatives, used to go to movie houses. That is why film producers used to wait very eagerly to release new high-budget movies during these festivals. But movies do not attract the affluent and middle-class people anymore. Many wealthy and middle-class families visit tourist spots both at home and abroad during Eid festivals. The Bengali New Yearâ&#x20AC;&#x2122;s Day celebration remains the most important one beyond the major religious festivals. In fact, it is the biggest cultural event that the people celebrate these days. The mode of celebration has assumed greater dimension in recent years. People

take part in colorful processions wearing new dresses, attend both indoor and outdoor cultural programs and make unique dishes on the day. Three to four decades back, the celebration was not as extensive as it is today. The businesses are also trying to cash in on the expanded mode of celebration of the event. They produce sarees and punjabis and other dresses matching the tastes of the younger generation in particular. Eateries do brisk business on the day. There is no denying that companies have played a significant role to expand the economic aspect of festivals in Bangladesh. They have successfully aroused an urge among the people to celebrate the festivals in a more interesting manner that has always offered financial benefits for them. Some major festivals, naturally, generate additional demand for goods and services in the economy and this is important for the economy to grow at a healthy rate. True, a large part of the market is consumption-oriented. But it plays a significant role in feeding the manufacturing sector of the economy also. Since more than one-fourth of the annual turnover of some segments of businesses comes from the largest religious festival Eid-ul-Fitr, one can well guess the importance of that annual event in the governmentâ&#x20AC;&#x2122;s revenue mobilization efforts and the overall economy. So, festivals are not just celebrations. They do play a major role in the economy.

Big festivals involve significant spending. However, most people do not mind spending an extra amount on festivals, depending on their capacity.

Column

Marketing Today in the Digital Space INTERVIEWER TO A CANDIDATE,

“DO YOU HAVE ANY LEADERSHIP QUALITY?” THE CANDIDATE REPLIED,

“I BELIEVE SO. I HAVE 87 FOLLOWERS ON FACEBOOK.”

This joke illustrates how digitization has impacted our everyday lives. Something we do first thing in the morning is to check our mobile phone’s notifications. While working, eating, even in a close social gathering, we tend to check our cell phones repeatedly. ‘What did I miss? What did I miss?’- the almost pathological urge to stay connected with the virtual universe of the good, bad and ugly facts is hard to hide. What makes the scenario much worse is our tendency to believe almost everything we come across on the platform that now boasts 22 million active users from Bangladesh. Call it naivety or just a knee-jerk reaction to a post that probably has “likes” from a good number of friends and thousands of other strangers. The next action is to share the content, leaving no stone unturned to make it viral.

IT’S TIME FOR THE 365-DAY MARKETING APPROACH One of the commonly and frequently used IMC (Integrated Marketing Communication) terms is the 360-degree marketing approach. Yes, 360 means using all possible communication channels at once to push individual message(s). It’s certainly a good idea, and I’m not

Khandaker Anwar Ehtesham

The writer is the Head of the Communications & Branding Division of Dhaka Bank Limited

against it, but in this fast moving digital world where the customers have so many exciting things to remember, I think the time has come for us to bring changes in our approaches to disseminate a message. Forget 360-degrees; the focus should rather be on a 365-day approach. This procedure means, every day you will have to have something new to tell, to keep your customers engaged through excitement, motivation, and awareness. It’s not an easy task, but brand managers have to do it. So, how do you do it? You cannot give out advertisements every day. What is the way out then? Social Media? Facebook, Twitter, Instagram, YouTube, LinkedIn, etc. are doing excellent jobs in this regard. It is easier, relatively cheaper and useful in many ways. Now, the big question is “how are you dealing with this massive opportunity?”

UNDERSTANDING THE PSYCHOLOGY BEHIND THE LIKES To me, LIKEs on social media are similar to the CGPA of a fresh graduate. CGPA is important. One needs to keep relatively better CGPA to get noticed by potential employers. But the CGPA will never be the final parameter to judge how

C O L U M N K H A N D A K E R A N W A R E H T E S H A M

the fresh graduate will perform in the workplace. Similarly, a Facebook Like is important. But so is analyzing the demographic who are giving those Likes. On many of occasions, advertisers produce contents for the sake of having content rather than having the intention to offer a relevant message that caters to customers’ particular interests. Then they tend to spend dollars to boost those posts. However, the fact is no matter how unintelligent it sounds in most of the cases, Likers are unsure about why they are Liking something in the first place. Which is why, I strongly feel that content makers and advertisers should prepare posts that attract their audience to remain engaged, and if possible, on occasion to co-create and co-promote. Having done so, the final act should be to render your acknowledgment to those aware followers for their conscious participation.

THE VISION THING & THE DEMAND OF THE WOW FACTOR I am not a digital marketing expert. Yes, I have attended a few digital marketing seminars and workshops, and I have learned a lot of things from those seminars. But I think most of them focus on the technical sides of digital marketing. But is this an advertiser’s job to learn how JAVA works or how to make the coding easier or how to increase the number of visitors on my website? I don’t think so. There are agencies to take care of the technical parts. Marketers should be focusing more on the strategy, content, simplicity, target audience, etc. I call it ‘the vision thing.' Marketers should be deciding what they want to achieve; not how to achieve (to some extent). But unfortunately, I see many marketers are too busy addressing the technical parts and ignoring the basics (in my words, ‘the vision thing’). Over the years, the media consumption patterns have changed. But the ‘need’ for consuming media remains the same. Most of the time, it’s purely for entertainment, i.e. humor, news, sports, music, movies, reality

shows, etc. Having said that, the rise of infotainment adds a new dimension to the game. In all these items, we look for one common thing: the wow factor. In the age of information overload, without the wow factor, brand managers and content makers are posed with a challenge that is getting more and more complicated every day: how to add zing, so the consumers keep coming back to the content!

CUSTOMER CENTRIC DESIGN IS THE KING When you are in the digital marketing space, you must have a customer-centric mindset. Otherwise, you can never reach your goals. Focus, market/customer understanding, customization, engagement, and consistency are equally vital for becoming successful in this space. You should also try to use your logic while designing a marketing campaign and/or prepare a budget for the products. Put a lot of WOW elements in your communication; influence the influencers (opinion leaders) to get the best possible mileage and co-create to ensure maximum participation. Your primary focus should be to earn the love of the customers; the rest will come automatically.

When you are in the digital marketing space, you must have a customer-centric mindset. “

Interview

Changing the Way Marketing Moves Forward Dave McCaughan Co-Founder and Chairman Marketing Futures

Dave McCaughan is based in Bangkok and has spent the last three decades working across the Asia Pacific, leading strategy planning in senior management roles with McCann, one of the world’s largest advertising and communication companies before partnering with Marketing Futures in 2017.

Marketing Futures is an initiative formed to shape the marketers of tomorrow. The concept aims to bringing in international expertise, experience and examples of today and tomorrow’s marketing communications to smart marketers in Bangladesh. Focusing on marketing communications and its adoption of technologies, digital tools and integrated planning and storytelling, Marketing Futures has set out to become a platform which will provide training, workshops, seminars, brand consultancy and social learnings in Bangladesh. The platform will be headed by Co-Founder and Chairman, Dave McCaughan; with Partners, Zulfiqar Ahmed, Muneer Ahmed, Taslim Ahmed and Co-Founder and Partner, Faiyaz Ahmed. ICE Business Times caught up with the two Co-Founders of Marketing Futures to hear about their vision for future marketers of Bangladesh.

What kind of vision does Marketing Futures have for Bangladesh?

Dave McCaughan - I have been visiting Bangladesh every couple of years over the past two decades now. I’ve observed a lot of change, and one of the things that I expected is that the market will grow dramatically, with that we will be seeing a lot of foreign brands coming into Bangladesh. At the same time, there’s the growth of local brands who are thinking about exporting. So, as Bangladesh becomes a more mature marketplace, it’s going to have to compete in all sorts of ways in terms of the professionalism of brand strategy and so on. Hence, what we see in the future is that potential for

Faiyaz Ahmed Co-Founder and Partner Marketing Futures

Faiyaz Ahmed is communication professional with an experience of more than 20 years of expertise in local and international markets like Japan and Indonesia with McCann World Group. He is specialized in the areas of consumer insight, brand management and integrated marketing communication process.

growth and not just a place where companies are coming and working but producing quality work for both the foreign and local firms in order to be more competitive. Faiyaz Ahmed Bangladesh has seen remarkably steady GDP growth of +6% over the past few years, and we’re now observing that local companies have started setting up shop outside Bangladesh which shows that they are reaching that international standard. However, to see more of this, both technological development and human skill development are important. That is what we

are attempting; skill development of the people, the technology, and the communication that is required to deal with the brands. We want to build them up to that international standard at Marketing Futures. Dave McCaughan - I have been working across all of Asia for the last 20 years, and spent a lot of time in all the major Asian countries. One of the things I’ve learned is that people in business; Brand Managers, Marketing Directors, have very narrow mindsets. For example, it always surprises me how they do not know what’s happening in their category

in other countries. Using an example from the toothpaste category, how many people know what the highest selling toothpaste in Asia is? It’s Darlie, which most people have never heard of. It’s the dominant brand in China, owned by Colgate but run as a separate brand. Although not many people know of it, the brand has a lot of great stories to learn from. My point is that, instead of looking to the US or Europe, we need to know about successful brands in our neighboring countries with similar marketing environments.

“ONE SKILL GAP I SEE IS THAT THE PEOPLE IN MARKETING ARE STRUGGLING WHEN IT COMES TO STRATEGY. STRATEGY IS SOMETHING THAT RELIES ON RESEARCH; GETTING PROPER AND AUTHENTIC RESEARCH DONE IN BANGLADESH RIGHT NOW IS A SIGNIFICANT CHALLENGE.” - Faiyaz Ahmed

www.ibtbd.net

What kind of skill gaps have you found in the marketing sector in Bangladesh?

Facebook. However, Facebook has been a splendid tool to understand the lack of rebellion amongst young people. If you make a random selection of Faiyaz Ahmed - One skill gap I see is Facebook pages here in Dhaka or that the people in marketing are across Bangladesh amongst maybe struggling when it comes to strategy. 19-year-olds, you’re going to find way Strategy is something that relies on more similarities than differences in research; getting proper and authentic terms of their content. What young research done in Bangladesh right now people want to do is to rebel into is a significant challenge. Moreover, conformity. What they’re looking for is understanding people and their security, friendship, and brands which insights is another issue. will help them find a path towards Understanding that insight and easy socialization. Therefore, you have developing a strategy based on that is to look for strategies that address these something we need to address. On the issues. other hand, communication skills need On the other hand, if you’re watching a to grow as well. Bangladesh is marketplace like Bangladesh from the communicating and engaging in perspective of a 19 or 20-year-old; you business activities with other parts of obviously see a lot of change. For a the world. Hence, communication is 19-year-old, it means that change is one of the biggest things that will help absolutely normal. So that alters how us connect with people outside you articulate your strategies in a way Bangladesh. We are out there; we are that would get young people “WHAT YOUNG PEOPLE WANT TO DO IS interested. Faiyaz Ahmed – TO REBEL INTO CONFORMITY. WHAT We need to figure THEY’RE LOOKING FOR IS SECURITY, out their core and FRIENDSHIP, AND BRANDS WHICH WILL desires design strategies HELP THEM FIND A PATH TOWARDS around them. The youth sometimes EASY SOCIALIZATION.” suffer from a lack - Dave McCaughan of identity. So what brands can do here, is provide growing. For that growth to be them with an identity, there by sustainable, we need improvements in fulfilling one of their core desires. these departments. Another thing is that the youth of Dave McCaughan - The key to this is Bangladesh are being exposed to the discipline. One of the disciplines that world through the emergence of seem to be underutilized here is market technology and social media; they are research. For research to be conducted getting more know ledged and rational properly, some questions need to be about their buying behavior so addressed -What’s the role of market marketing communication strategies research? What are the expectations? needs to tell the youth how a specific How to brief it? How to understand and brand or product can fulfill their implement it? emotional and rational need, a brand which can communicate with a balance Considering the youthful of both will stand out.

population dynamics of Bangladesh, what kind of marketing strategies would be the most effective here? Dave McCaughan - One of the great myths about marketing to young people, that has been true since modern marketing started in the 1930’s and 1940’s, is the belief that with the youth it’s all about the trending stuff. If they did, they wouldn't all be dressing similar; they wouldn't be following the same music trends; they wouldn't all be on

“What medium really matters in people’s lives?” Dave, you’ve asked this question at previous talks you’ve held. Can you please tell us about the implications of this question?

Dave McCaughan – Dhaka ranks second in terms of highest Facebook usage in the world after Bangkok. Does that necessarily mean that it’s the most important medium to people? Is it the

one that matters the most? There is a difference between usage and what matters the most. For example, let’s consider that you could have Facebook, television or some form of written medium. You can only have one for the rest of your lives, which one are you going to choose? If you had an option between music, photographs and your writing ability, which one would you choose? These are goofy examples but what I mean is that marketers have to identify within the plethora of availability, with a limited number of options at their disposal, which medium matters the most to their target audience. This should be the single most important question in marketer’s lexicon, but it’s often the one they don’t ask.

What are the key issues that marketing companies need to understand about a developing market like Bangladesh?

Dave McCaughan – Despite what people think, everything’s been done before. The first thing you have to remember when dealing with a developing market, there have been 100 other countries which have developed before. What are the lessons they have learned and what development process did they go through? For example, changes in family structures, the changing role of education and the media accessibility and so on. When I asked Faiyaz who the top 5 celebrities are here, I was surprised to know they were all cricketers, local movie stars or celebrities from India. This shows you that the influence from the USA to here is quite small. However, globally they make the assumption that young people are leaning towards America. A particular beverage brand in America asked me to do focus groups in Asian countries where I would ask the question, ‘if you could’ve been born in any other country, except your own, what would your choice be?’ The Americans assumed that everyone would say America, but only 15% did. Most people said, ‘we like American stuff, but we do not want to be American.' Faiyaz Ahmed – It’s all about understanding the consumers and what popular cultural influences are taking places. We need to utilize the factors and symbols which are influential at the RIGHT MOMENT for the RIGHT PEOPLE in order to turn them into consumers.

Advertorial HOW IS OUR DELIVERY BETTER THAN THE OTHERS?

Bagdoom delivers products to the customers anywhere within Bangladesh usually within less than two days, which is the best in the industry. On top of its quick and professional delivery service and swift, responsive customer care, the features such as “cash on delivery” and “easy replacement” tied to its offerings are designed to make shopping online further simpler and enjoyable for customers.

HOW DO WE STAND OUT?

The new edge to Lifestyle Bagdoom.com Bagdoom.com, the online retail platform was co-founded by Shameem Ahsan, who serves as the Chairman, along with him CEO, Kamrun Ahmed, and Imran Khan in 2011 under the name “akhoni.com”. Today’s rebranded avatar, with its significantly evolved persona and outlook, has not only been the first full-fledged e-commerce site in the country but also the major force behind the revolution in the e-commerce ecosystem in Bangladesh.

We continuously work for the brand development and brand visibility for each of our business partners. We cover digital and offline product promotion and provide exposure and access to supply-chain across the country. Bagdoom.com follows a DP/MRP model, empowering pureplay/hybrid SMEs and SOHOs and providing access for financing, ensuring brand visibility for new and prospective merchants too at all times. Our offers and campaigns the whole year round are to serve the consumers with the best of online shopping experience, presenting astounding facilities like Happy Hours discount offers, Weekly Deals, free delivery, tips and advocacy articles on our blog the “Lounge” and much more.

WHAT ARE WE DOING FOR THE WORLD AROUND US?

We highly encourage women empowerment, populating our onboard merchants list with thriving women entrepreneurs and has worked to do our bit with activities like, sponsoring the Women Engineers' Congress 2016 organised by BUET Career Club (BCC), hosting an Open House Day for Bangladesh Open Source Network (BdOSN) in celebration of International Girls in ICT Day 2017, to share the knowledge of the ICT industry as a field for women.

WERE WE EVER RECOGNIZED? WHAT DO WE SELL?

We are a Business to Consumer (B2C) e-commerce site, serving consumers with a variety of lifestyle consumer product categories ranging from apparels to electronics, home décor items to footwear, cosmetics & beauty products to kitchen appliances, toys to jewelry, accessories, sports & fitness items and much more. Our concept of focusing on “lifestyle solutions” is a first of its kind introduced in the Bangladesh market.

DO I GET WHAT I ASK FOR?

Most certainly! All our products go through thorough quality checking process going through Key Account Managers to the Supply Chain team, and business partners are

selected through layers of verifications, making the composition of the platform definite of an A grade. We give 100% quality assurance for products and imply a no-questions-asked return policy as well, giving customers full feel and freedom of a walk to the shopping mall in just a click.

Oh yes! Bagdoom was first recognized by Red Herring, as it named the venture as one of the top 200 startups emerging out of Asia. In September 2015, the company was given an award by the Bangladesh Business Journalist Society (BBJS) for being the Best E-commerce site in Bangladesh. We even won Digital World 2016 Award for “Contribution in the e-commerce of Bangladesh” and “Best Lifestyle Category in E-commerce” award, eCourier Summer Merchants Meet-up 2016.

ARE THE PAYMENT PROCESSES RELIABLE?

100%. Customers can use a debit card or a credit card with the most secured payment gateways alongside mobile financial services and of course pay cash on delivery after buying online. Our COD process has been the first cash-on-delivery policy introduction in the e-commerce history of Bangladesh.

For more information head over to www.bagdoom.com and explore a world of shopping to jazz up your lifestyle simply in a click Go through the different edges of our organization to know more: https://www.facebook.com/BAGDOOM/ https://www.instagram.com/bagdoomdotcom/ https://www.youtube.com/channel/UCpawZaToTz77AdmY0fXay0Q https://www.bagdoom.com/happy-hour.html https://www.bagdoom.com/weeklydeals https://www.bagdoom.com/lounge

Special Report

Budget FY18:

Through the Looking Glass By Tahera Ahsan

INTRODUCTION As we draw towards the end of Fiscal Year (FY) 2017, we have once again reached the month which charts out the governmentâ&#x20AC;&#x2122;s plans for progress and the development of the nation in the upcoming fiscal year. The national budget for FY 2018 was presented by the Finance Minister to the Bangladesh Parliament on June 1, 2017. Budget FY18, upheld the recent trend and once again rendered the population in awe by its sheer size, which remains historically unmatched. The budget FY18 stands at a massive Tk 4.0 trillion, growing by 17.6% and 35.6% over the budgets of FY17 and FY16, respectively. The government has clearly taken an ambitious stance and proper implementation of the budget could potentially lead to a massive turnaround in the development of the country. It is therefore, with lofty hopes, that the population received the budget and its actualization is the ultimate prayer for the upcoming fiscal year. Much has been discussed, argued and actively debated about the budgetary provisions, taxations, and expenditure avenues, all over the country from the media to households. By now, most of the

concerned population are well-versed in the various allocations and have also devised the potential repercussions and impacts of some steps. After all, a national budget is more than just the accounts of the government and has a real impact on the income, the standard of living, social welfare and overall prosperity of the country and its population. Therefore, with an aim to steer away from the mundane repetition of the month-long discussions, this report will be focused on highlighting factors and issues that shed light on various other aspects of the budget. This report will be presented in two parts, the first part focusing on macroeconomic impacts and indications of the budget starting with a macro analysis of the development trajectory of the country as it is about to embark upon the third year of the Seventh Five Year Plan (7FYP). Fiscal and financing issues of the budget will also be

discussed with a brief look at the changes in the subsidy basket. Overall, the analysis is expected to provide some plausible ideas about the feasibility of budgetary provisions and the budget itself. The second part of the report, zooms into the micro-level implications of the budget, with a particular focus on social and physical infrastructure initiatives and allocations which impact the households and individuals at the grassroots level. A closer look at the incentives and initiatives will attempt to assess the stance of the government on various social and environmental issues. Analysis and impacts of taxation measures, the social safety net budget and coverage and foreseeable changes in prices of goods and services will be covered. Finally, a short assessment of the initiatives undertaken to address climate change issues, increase resilience and preparedness of the vulnerable population and the efficacy of the measures will be made. www.ibtbd.net

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MACROECONOMIC PURVIEW AND IMPLICATIONS OF THE NATIONAL BUDGET FY18 Macroeconomic Performance in light of 7FYP Targets and Budget FY18

FY18 marks the beginning of the third year of the Seventh Five Year Plan development trajectory of the country, and therefore essentially indicates that we are closing in on the halfway point of the 5-year period. The performance so far, in comparison to the targets have been a mixed basket with some sparks of excellence and some pockets of failures. Table-1 shows the actual performance compared with 7FYP targets for some key macroeconomic indicators for FY16 to FY18 budgets, expressed as a percentage of GDP. Table-2 uses the same indicators and calculates the cumulative shortfall/surplus in contrast to targets for

the same period. These indicators provide insights into the economic health of the nation as well as assess the performance of the government in terms of managing its own finances. To start off, the GDP growth rate and Inflation performance of the country is evidently following the planned curve. The country finally broke out of the 6% growth rut it had been stuck in and is expected to grow by 7.4% in FY18. The World Bank, however, continued to maintain its stance of much lower growth figures and reiterated that the Bangladesh economy grew by 6.8% in FY17 and projected a growth of 6.4% in FY18, despite the government already announcing a 7.2% growth for the current FY while setting an even higher target for the next. This issue is a waiting game till the growth figures for this year are finalized around September. In terms of the inflation rate, the economic performance has been laudable with the government maintaining a low level in FY16. The performance till Q3 of the current fiscal indicates a high possibility of the final inflation rate being lower than the target of 6%. This means sound monetary management by the central bank and the government for successfully combating detrimental price hikes. In terms of real sector indicators, we can see slight shortfalls to targets throughout the comparison period, particularly concerning Investments and Consumption in Table-1 which eventually results in a cumulative shortfall of over Tk 1 billion and Tk 8 billion for total investment and consumption, respectively, over this period. The investment figures fall short owing to shortfalls in private investment which has been persistently affected by security concerns and hence, lower business confidence. The cumulative private investment shortfall amounts to Tk 478 billion which is covered somewhat by public investment surpluses, but not completely. Consumption is an important indicator as it is a major determinate of the aggregate demand in the economy. The consumption rates have also been falling short of 7FYP targets, and while the decline may seem marginal, it could potentially account for a cumulative shortfall of Tk 832 billion by FY18. This does not bode well for the aggregate demand in the economy and some taxation measures included in the budget is set to deeply impact domestic savings, investments and could have a harmful destabilizing effect. The concerns deepen further when looking at the fiscal indicators and the deficit financing performance of the economy so far. The shortfall in revenue, particularly tax revenue, seems to be snowballing and could potentially cross Tk 1trillion cumulatively by FY18. Necessarily, a similar shortfall is evident in

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Table:1 Performance Comparison of Key Macroeconomic Indicators (FY15-FY18B) FY16 7FYP

FY17

FY18

Actual (p) 7FYP

Actual 7FYP

THE PERFORMANCE SO FAR, IN COMPARISON TO THE TARGETS HAVE BEEN A MIXED BASKET WITH SOME SPARKS OF EXCELLENCE AND SOME POCKETS OF FAILURES.”

Budgeted

Real GDP Growth (%)

7.0

7.1

7.2

7.4

CPI Inflation (%)

6.2

5.9

6.0

5.4*

5.8

5.5

31.9

As % of GDP Real Sector Indicators Gross Domestic Investment

30.1

29.7

31.0

30.3

31.8

Private

23.7

23.0

23.9

23.0

24.4

23.3

Public

6.4

6.7

7.1

7.3

7.4

8.6

Consumption(2)

77.5

75.0

76.7

73.9

75.9

75.6**

National Savings

29.1

30.8

29.7

30.3

30.2

30.0**

Fiscal Operations Indicators Total Revenue Tax Revenue Total Expenditure ADP Expenditure Overall Balance (Excld grants)

12.1

10.2

13.5

11.2

14.3

13.0

10.6

9.0

11.5

9.8

12.3

11.5

17.2

15.3

18.5

16.2

19.3

18.0

5.7

5.3

6.2

5.7

6.5

6.9

-5.0

-5.0 5

Budget Deficit Financing Financing (Net)

4.7

5.1

4.7

External

1.4

1.2

1.5

1.2

2.3

Domestic

3.3

3.6

3.4

3.6

3.5

2.7

Bank

2.1

1.8

2.2

1.2

2.3

1.3

Non-bank

1.2

1.8

1.2

2.4

1.2

1.4

*= Figure till Q 3 of FY 17 **= Figures calculated as average of previous years . Data for FY 17 unavailable Revenue and E xpenditure �igures for FY 17 are revis ed budget �igures as mentioned in Budget S peech FY 18 S ourc e: S eventh F ive Y ear P lan, G DP E s timates B B S , E c onomic Review MoF & A uthor's own c alc ulations

Table:2 Macro Overview & Cumulative Shortfall/Surplus of Performance Comparison with 7FYP Targets BDT in Billions Nominal GDP

FY16

FY17

FY18

Cumulative Surplus/Short fall FY16-

7FYP

Actual

7FYP

Actual (p)

7FYP

Budgeted

17167

17328.6

19517

19560.6

22177

22236

Real Sector Indicators Gross Domestic Investment

5167.3

5137.9

6050.3

5921.0

7052.3

7093.3

-117.6

Private

4068.6

3983.9

4664.6

4500.9

5411.2

5181.0

-478.6

Public

1098.7

1154.1

1385.7

1420.1

1641.1

1912.3

361.0

Consumption(2)

13304.4

12999.9

14969.5

14463.1

16832.3

16810.4

-832.9

National Savings

4995.6

5332.0

5796.5

5926.8

6697.5

6677.5

446.7

Fiscal Operations Indicators Total Revenue

2077.2

1767.5

2634.8

2190.8

3171.3

2890.7

-1034.3

Tax Revenue

1819.7

1559.6

2244.5

1920.8

2727.8

2566.0

-745.5

Total Expenditure

2952.7

2651.3

3610.6

3168.8

4280.2

4002.5

-1021.0

978.5

918.4

1210.1

1115.0

1441.5

1534.3

-62.4

Overall Balance (Excld grants)

-858.4

-866.4

-975.9

-978.0

-1108.9

-1111.8

-13.2

Financing (Net)

806.8

866.4

917.3

997.6

1042.3

1111.8

209.4

External

240.3

242.6

234.2

293.4

266.1

511.4

306.8

Domestic

566.5

623.8

663.6

704.2

776.2

600.4

-77.9

Bank

360.5

311.9

429.4

234.7

510.1

289.1

-464.2

Non-bank

206.0

311.9

234.2

469.5

266.1

311.3

386.3

ADP Expenditure

Budget Deficit Financing

Source: Seventh Five Year Plan, NBR, BBS & MoF Publications and Author's own calculations

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terms of total expenditure, lower expenditure figures and downward revisions to the Annual Development Program (ADP) allotment. The NBR revenue shortfall has been persistent in previous fiscal years, with FY16 clocking in a high shortfall of Tk 226 billion. In the current year, the shortfall has amounted to Tk 86 billion till February 2017. Surprisingly, in the budget, the government has already revised the revenue target down by Tk 180 billion, which could indicate that an additional Tk 100 billion in revenue shortfall is predicted. A closer look at the figures reveal some indisputable trends and impacts of this as listed below: ◆ The tax revenue shortfall for FY15 to FY17 has been mainly owing to the weaker performance of domestic sources of revenue, namely income tax and VAT-domestic. This should raise a red flag for the government since such both of these sources are directly linked to the income and expenditure of the population. Low collection of these taxes indicate a weakening of business morale and aggregate demand, which in turn has affected consumption and hence the domestic VAT collection. ◆ A highly ambitious budget also requires a highly dynamic financing plan. For FY18, the government is

relying on NBR tax revenue to finance 62% of the budget with target of Tk 2481 billion. ◆ The target is 22.2% higher than FY16 budget and 35% higher than the revised revenue target of FY17. This essentially means that that the revenue targets keeps getting higher, the greater the shortfall in revenue by the end of FY17. ◆ The NBR has not been able to achieve such growth rates historically and thereby, the achievement of this target also seems highly improbable. ◆ If revenue collection falters, the planned expenditure/budget also needs to be revised down to affordable limits, and in this case the ADP also is revised down, leading to dampening of development plans. The deficit financing strategy for FY18 already poses a difficult situation owing to the increased dependence on external borrowing- set at highest target over the last five years. Revenue shortfalls would therefore exacerbate the situation which would inevitably transpire in downward revisions of the budget and development programs. To summarize, the macroeconomic outlook for the upcoming year does not seem easy and will require

BUDGET MEASURES AND THE CITIZENS

The budget FY18, as is the case with every budget, includes several measures which have been welcomed and others which have been scorned by the people of the nation. These measures and there implications are discussed sector-wise in the subsections below.

SUCH A POLICY IS EXTREMELY DETRIMENTAL AND THIS COULD LEAD TO LIQUIDITY SHORTAGES WHICH WOULD AFFECT INVESTMENTS AND ALSO PERPETUATE CAPITAL FLIGHT IF INDIVIDUALS SEE ARBITRAGE OPPORTUNITIES ABROAD. extremely disciplined and driven measures to fulfill the huge task the budget poses. If the government finances, consumer and business sentiments and financial sector face difficulties, the growth trajectory will inevitably be affected severely. Therefore, it would be wiser for the government to monitor the economy closely and take swift measures to revise targets, if and when needed. Instead of doggedly pushing through to achieve stated growth targets and potentially failing, it is always wiser to cut back your losses as it becomes evident.

FISCAL ISSUES AFFECTING MONETARY STABILITY

The fiscal sector has been analyzed extensively in the previous section from a macroeconomic purview. Other than just setting daunting revenue targets, the government has also attempted to introduce new tax revenue sources to help the cause. ◆ In budget FY18, the government has imposed a 60% hike on excise duties on bank deposits between TK0.1-1.0 million which has left the general population in dismay and economists and the business community flabbergasted. ◆ The current deposit rates at banks are usually in the range of 3-4% which essential means, when accounting for inflation of above 5.5%, their returns on the deposit are already in the negative. ◆ In addition to that, an

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advance income tax will be deducted at source by the banks, further lowering the interest income. ◆ To top that off, an excise duty of 65% would leave small depositors with having to pay out of their pockets instead of earning any return. ◆ Such a policy is extremely detrimental and this could lead to liquidity shortages which would affect investments and also perpetuate capital flight if individuals see arbitrage opportunities abroad. ◆ This could also lead to money flowing out of the economy through informal channels, increase attractiveness of

TO SUMMARIZE, THE MACROECONOMIC OUTLOOK FOR THE UPCOMING YEAR DOES NOT SEEM EASY AND WILL REQUIRE EXTREMELY DISCIPLINED AND DRIVEN MEASURES TO FULFILL THE HUGE TASK THE BUDGET POSES. EXTERNAL SECTOR

The budget has introduced several incentives and benefits for select export sectors, as discussed below: ◆ Green growth has been prioritized by the government through providing tax benefits to the two largest export sectors – the RMG and leather industries. Businesses practicing environmentally sustainable operations will be provided with tax benefits. ◆ In order to encourage more remittances, the government has announced its intentions of introducing no cost measures for remitting funds to the country. This is an attempt to discourage informal/illegal channels of remitting money which is usually riskier and costlier than formal channels. Adequate provisions to follow through with this could enable accounting for greater remittances.

other credit organizations such as NGOs and even lead to financial scamming of retail savers. ◆ Despite heavy opposition, the government has approved this measure and its dire impacts are already evident in the resentful retail/small savers who have been bought into formal banking channels. ◆ There has already been a sharp increase in deposits in Islamic banking which follow profit sharing system and hence are expected to remain unscathed. This poses a acute threat to the already weakening banking sector of the country.

◆ Uniform VAT imposed on all goods and services except daily essentials - While a blanket tax is an attractive measure to source revenue, the entire concept of Value Added Tax is in question here. VAT essentially means tax collected at every stage of value addition, and imposing one rate for all essentially means skipping the entire value-addition aspect.

SOCIAL SECTORS - HEALTH, EDUCATION & SOCIAL SECURITY

In this section we will focus on three main sectors: THE HEALTH SECTOR

◆ The government allocation to the health sector has been notoriously and historically lower than required. FY18 is no different, with increases in allocation in nominal terms which does not necessarily translate to higher allocations when analyzed using comparative statistics. The budget iterates a ‘revamping’ of the sector through the Health, Population and Nutrition Sector Development Program with increased focus on maternal and infant health, contagious diseases and increase in number of community health centers. ◆ Sadly, this program has been in operation for quite a few years and has had largely the same focus with some additions to diseases covered and overall coverage of services. Therefore, it is evident that the so-called revamping measures are once again just ‘window dressing’ with significant transformations. THE EDUCATION SECTOR

◆ The allocation for education sector has increased by 14% in

the upcoming budget which is a laudable measure. Expansion and improvement in education is the main and perhaps the most sustainable measure to improve quality of human resources of the country. ◆ Allocations for both primary and secondary education has been increased and there has been an increase in coverage of education stipends in the safety net budget along with continuation of all education related stipend and welfare programs. ◆ However, the government has directly disregarded a Supreme Court decision and has in fact increased the VAT on English-medium private schools and private universities. This is extremely discriminatory and raises questions regarding the government’s widely communicated intentions of improving the quality of education. Such selective imposition of taxes can only be termed as punitive and should not be imposed on welfare sector institutions.

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SOCIAL SAFETY NET PROGRAMS The social safety net budget has increased by a healthy rate in the upcoming budget and the government has introduced initiatives to increase coverage and benefits for several key programs as summarized below: ◆ Increased coverage in the form of a larger beneficiary base for - Old age allowance program, Widow and oppressed women allowance program, Financially Insolvent disabled program, Education stipend for disabled program, Maternal allowance and Allowance for working and lactating mothers. ◆ Increase in benefits for Financially Insolvent Disabled program, Education Stipend for Disabled program, Special/Old age allowance for bede and backward

communities, Allowances for patients suffering from chronic diseases, Freedom fighters festival bonus and Livelihood of Tea laborers. ◆ There are block allocations for disaster management and climate change related programs, and the haor regions have now also been bought under the coverage of the SSNPs. ◆ While all these are great initiatives, there are two major issues that still remain: ◆ The implementation of the National Social Security Strategy, which would streamline the existing safety net programs into a handful of manageable programs, need to be accelerated. ◆ The SSNP budget always includes the ‘Pension scheme

for retired government officials’, which is one of the largest allocations. Inclusion of this program in the SSNP is incorrect as this has no welfare value for vulnerable population of the country. Additionally, when the allocation for pensions are removed from the SSNP budget, it deflates sharply and becomes extremely meagre. ◆ Therefore, the government must introduce contributory pension schemes for its retired officials as it is a much more sustainable and effective means of financing pensions rather than direct payouts.

CONCLUDING REMARKS

◆ Budget FY18 is undoubtedly a bold initiative by the government and has introduced many positive incentives and initiatives which will benefit the population and aid in the development of the country. ◆ However, its design lacks cohesion as many initiatives provide conflicting ideas about the government’s stance and even several positive incentives include provisions which seem counterproductive. ◆ The main concerns at this point remain the future of the banking sector and the overall savings and investment climate of the country. ◆ The revenue scenario is a cause for grave concern as increased pressure on the NBR alone cannot increase collection and the new sources introduced seem to affect the welfare and stability of the people, especially those at the middle and lower income level groups. ◆ Increased focus on both physical and social infrastructure development is a much needed and welcome aspect. ◆ The population is expectedly apprehensive about the upcoming fiscal year and the government should definitely take drastic measures to address their concerns and reduce this intimidation they are experiencing. ◆ Successful implementation of this budget would require vigilant monitoring and swift decisions to address problems and issues as soon as they arise.

The writer is an economic researcher, currently working as an independent consultant. She can be reached at tahera_ahsan@hotmail.com

Cover Focus

By Irad Mustafa P h o t o g r a p h s b y D i n M S h i b ly

SOLAR ENERGY CAN BECOME A LIFELINE FOR LOW-INCOME HOUSEHOLDS IN RURAL BANGLADESH BUT IS ENOUGH BEING DONE TO MAKE A SIGNIFICANT CHANGE IN THEIR LIVES?

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SUNSET IN THE RURAL VASTNESS OF BANGLADESH BRINGS MOST ACTIVITIES TO A HALT AS THE MAJORITY OF THE PEOPLE DO NOT HAVE ACCESS TO THE MAIN ELECTRICAL GRID. DURING THESE HOURS, BATTERY-POWERED TORCHES AND KEROSENE LAMPS ARE USUALLY THE ONLY LIGHT SOURCES USED FOR HOUSEHOLD CHORES OR SCHOOL HOMEWORK.

Nights in Dhaka are usually defined by glowing streets, illuminated by the superfluity of stores and restaurants. The relentless horns blaring from an endless torrent of cars and rickshaws further punctuates this spectacle. Outside the capital (or any of the other major cities), the reality is quite different. Sunset in the rural vastness of Bangladesh brings most activities to a halt as the majority of the people do not have access to the main electrical grid. During these hours, battery-powered torches and kerosene lamps are usually the only light sources used for household chores or school homework. However, times are changing, the economy is advancing, which means rural off-grid households are finally being brought under the electricity net through various renewable energy projects. Furthermore, government officials have stated that it has targeted the generation of 2000 MW from renewable sources by 2020 and with different companies in the process of setting up power stations in various regions of the country, the future is already looking a lot sunnier. Southern Solar Power Ltd, a subsidiary of US-based SunEdison in Bangladesh, is planning to set up

a 200MW solar power plant at Teknaf in Cox's Bazar with an estimated investment of $300 million. Additionally, four other solar power plants in different areas across the country will also be set up to generate a total of 258 MW electricity. These projects may paint a brighter picture for the future, but how are the already established solar power stations faring in our country? ICE Business Times recently traveled to two different solar projects in two separate regions in the country to take a look at how inhabitants have been living their lives with the limited amount of electricity they purchase.

SOLAR SUSTENTATION First, we went north to the Rajshahi Districtâ&#x20AC;&#x2122;s Godagari Upazila. There, we visited AVA Developmentâ&#x20AC;&#x2122;s 158 kWp Solar-Diesel Hybrid Mini-grid project in Char Asariadiah which was set up in November 2015. Senior Manager, Engineer Md. Mesbahul Haque guided us through the area and disclosed the details of the venture.

The mini-grid project can generate up to 148.5 KW of power per day which covers around 10 km of the area in the Char. This limited coverage means only around a thousand out of its population of five thousand receive its facilities. The total investment in the project is around Tk 7 crore, 20% of which comes from AVA Developmentâ&#x20AC;&#x2122;s equity and 50% of which arrives in the form of grants from organizations like Department of International Development (DFID) through the government. Infrastructure Development Company Limited (IDCOL) loans out the remaining 30% to AVA with a 6% interest charge. Life on the char means a lot of people don't have access to various necessities which is why must make frequent visits across the river to buy food and vegetables from the nearest village market. Children also have to travel to the other side to attend school. Living on the char is difficult, as it is, but it is a real testament to the incredible character of these people who have lived without electricity for so long especially considering the intensity of the heat waves. These solar power initiatives have brought another level comfort to these families as they can now use fans in their households after laboring through the day in the scorching heat of the chars. The electricity can also be used by students at night time to study. In other parts of the area, its facilitating small-scale commercial purposes through welding shops, mustard or rice mills and so on. A project like this creates avenues for these small industries to thrive and create employment opportunities for the char dwellers. However, AVA Development is planning on widening their net in the coming years. With only half the people receiving coverage, the other half also have demands for electrical facilities, so the company is planning on setting up a second solar power plant on the char to expand their reach. www.ibtbd.net

In the southern part of the country in Barisal Districtâ&#x20AC;&#x2122;s Monpura Upazilla, Solar Electro Bangladesh Limited established its 177 kWp Solar-Diesel Hybrid Mini-grid project in October 2015. Engineer DM Majibor Rahman, the Managing Director of the company helped us ascertain the necessary information regarding the project.

The twenty-year project had an investment of around Tk 6.83 crore. With a 20% equity, 50% grant and 30% loan (at 6%) financing structure, Solar Electro come under same financing system as AVA. The plant generates around 234 KW per day for around four hundred and seventy households within a 15km range. Similarly, until the establishment of this facility, the occupants in this region were also devoid of the wonders of electricity. Within its 15km range, it supports households as well as commercial entities by enabling saw mills, thirteen auto rickshaw recharging stations, welding stores, and other mechanical workshops. Moving more towards the center of Bangladesh, Solar Electro Bangladesh Limited have plans on establishing two more projects in the Shariatpur District which would generate 5 MW of solar power for around two thousand households along with commercial enterprises and agricultural facilities used for irrigation and/or rice mills.

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THE COST OF COVERAGE Both projects have the right idea in mind, but when it comes to the cost of running the projects, the picture turns a little bleaker. The per unit cost of the producing solar electricity comes around to Tk 60 for both companies; however, they end up charging Tk 30 to their customers with government subsidies covering the remaining portion of the cost. Even with a Tk 30 subsidy from the state, the price per unit charged to rural electricity users is still too high. The end users are usually in the dark (pun intended) when it comes to the technicalities of the cost breakdown. Therefore, when they compare it to what people are being charged through regular

grid connectivity, they obviously make the assumption that they are being extorted or overcharged. This drives down the demand for household consumption meaning the organizations have a hard time pulling in substantial returns for the significant amount of investment they have made. AVA Development has monthly operational costs amounting to around Tk 4.3 lac, and similarly, Solar Electro Bangladesh incurs around Tk 4.44 every month. Due to these exorbitant expenses, which include maintenance fees, staff salaries, interest payments, etc. the companies cannot break even when the regional consumption levels cannot be increased. There are no

concrete plans in place to meet these shortfalls either. Reported monthly earnings come around to Tk 1.5 at most, while, during the cooler times of the year, electricity usage drops dramatically, yielding revenues as low as Tk 50,000. The situation for all solar energy ventures will be further exacerbated by the governmentâ&#x20AC;&#x2122;s proposed import duty on solar panels in its FY 2017-18 budget. Imports of solar panel will be subject to 10% customs duty, VAT and other taxes, totaling an additional cost of 37.5% in the next fiscal year.

BRINGING THE SUNNY SIDE UP The government along with the relevant bodies such as IDCOL need to take up a definitive stance in this regard. A holistic plan is required for these companies to be sustainable over the long run which includes proper expenditure and revenue mapping. Addressing the consumption and cost issues is of paramount importance. A significant portion of the occupants of these regions are deterred from buying solar powered electricity due to a number of reasons but certain measures can be taken to amend the situation:

• Changing Habits and Perceptions – Most of these people had not experienced electricity and its uses for most of their lives. It is a phenomenon which has been made available to them only during the last few years. As they say, old habits die hard, so a large portion of the targeted market opts to live without electricity since they are already accustomed to being without it. It is imperative that strategies are implemented which can increase their reliance on electricity in the areas. • Introduce Energy Efficient Household Products – An alternate solution for the cost problem can be the introduction of low-cost energy-efficient household electronics in these areas. Lights, fans, etc. which would be cost-efficient would mean more people would buy them for their homes, leading to greater demand for electricity. People would slowly become more habituated towards electricity use in their daily

Sources: i. Dhaka Tribune, ii. The Daily Star, iii. The New York Times, iv. The Guardian

activities, thereby, increasing the consumptions levels over the long run. • Reduce Prices – A Tk 30 per unit charge for the low-income families in these regions is exceptionally high. So the obvious option for the government would be to allocate more funds towards covering the Tk 60 per unit cost incurred by these solar ventures. In this regard, taking a leaf out of our neighbor’s book might also be helpful as this year we’ve seen India drastically reduce solar power charges to as low as 2.62 rupees per kilowatt-hour of electricity generated from solar panels. • Increase Industrial Impact – Larger industries beyond just agricultural entities or mechanical workshops need to be established in those areas so the overall regional income levels rise which can make electricity more affordable. The spillover effect will not only generate employment but also increase revenues for solar power projects in the areas. www.ibtbd.net

Special Feature

Reinvigorating the Workforce DESPITE THE COUNTRY’S TREMENDOUS GROWTH, WHY ARE BANGLADESH’S EMPLOYMENT FIGURES LAGGING? By Nasirra Ahsan

Right after Bangladesh gained its independence in 1971, major investments were required to set up the RMG industry. It was hoped that this industry would bring some relief to the war-ravaged country. And since then the industry has done more than its share to add to the wealth of the nation. Fast forward to Fiscal Year (FY) 2014-15 and it accounted for 81% of the country’s export earnings and generated a revenue of $25.49 billion, in that period alone. According to the Bangladesh Garments Manufacturer and Exports Association (BGMEA), there are at present 4328 garments factories who employ around 4 million workers. However, this employment number has started to stagnate in the last five years.

T he table shows that the number of garment factories experienced a steady incline till 2012-13 where the number of factories stood at 5876. During FY of 2013-14, the numbers fell sharply to 4222. The Fiscal Years of 2014 onwards did see an upward trend in the number of factories, but the numbers have yet to reach that of 2013. The employment numbers peaked in FY of 2011-12, reaching a record of 4 million workers. Nonetheless, this number has remained unchanged until the Fiscal Year of 2015-16. According to Zahirul Hussain, a leading economist of World Bank Bangladesh, the stagnant employment rates is the combination of structural and productivity changes. This stalling of employment has been an anomaly that has many economists stumped. ‘A significant development in Bangladesh during the period was reformed to improve safety in the garment industry, the largest single employer in manufacturing, in the aftermath of two major industrial accidents. This led to the closing of many informal or quasi-formal garment factories with the consequent shedding of

employment, Hussain said.’ (thedailystar.net, 2017). Similar statements were made by Thomas Farole, the lead author of World Bank Jobs Diagnostic. He was quoted saying, “part of the answer is that productivity has increased which is by definition is we have more output without more workers then these workers are more productive. This is actually good news because higher productivity should lead to more competitiveness of Bangladeshi firms, which should lead to higher wages and more investment.”1 In fact, evidence suggests that recent entrants into the apparel industry are more capital intensive when compared to the older generation. Hence, while this adds to the competitiveness of the factories, it does little to add to the job rates in Bangladesh. Bangladesh achieved a growth rate of 7.11% in 2016, and it's expected that the economy will grow by 7.24% in 2017. This tremendous growth has still seen the employment levels lagging. The country could add only 14 lac jobs between 2013 and FY 2015-16, which is a stark contrast from the 40 lac jobs that were added between 2010 and 2013, according to Bangladesh Bureau of Statistics' Labor Force Survey data. One possible explanation for this, according to ATM Nurul Amin (the Chairman of BRAC Universities Economics and Social Science Department) is that the benefits of economic growth are not reaching the masses through the trickle-down effect. Trickle-down economics, which was popularized in the 70's, has long been labeled as obsolete. In a recent paper by IMF titled ‘Causes and

1. bdnews24.com, 2017 2. thedailystar.net, 2017

Consequences of Income Inequality,' data from 159 countries were studied between the periods of 1980-2012. Researchers found that when the wealthiest 20% see their share of income rise by 1%, the economy grows 0.08% points slower over the next five years. When the poorest 20% increases their share of total income by 1%, the economy experiences 0.38% points faster growth. Translation: Bangladesh needs to update their tax structure to accommodate the poor in the community. However, the country's woes do not end with the industrial sector even though it is pigeon-holed as the main culprit. “Between 2013 and FY 2015-16, the industrial sector created only one lac additional jobs to take the total number of the employed in the sector to 1.22 crore.”2 The agriculture sector has been steadily losing jobs while the service industry has shown some promise in employment creation. The THE COUNTRY sector added 22 lac jobs which COULD ADD ONLY meant that a total of 2.2 crore 14 LAC JOBS workers were BETWEEN 2013 employed in the service sector. The AND FY 2015-16, problem with this WHICH IS A STARK was that most of these jobs were in CONTRAST FROM the informal sector and thus, THE 40 LAC JOBS not considered to THAT WERE ADDED be productive. The final possible BETWEEN 2010 reason for the AND 2013. languishing job rates is the weakening link between jobs and employment. According to Hossain Zillur Rahman, the Executive Chairman of Power and Participation Research Centre, this is a clear indication that the education system at present is unable to meet the market demands which raises doubts about the effectiveness of the ‘certificate-based education' system. The movement towards automation can also be a significant threat to the employment levels in Bangladesh. Known as the ‘Fourth Industrial Revolution’ or 4IR, this development is focused on the digital revolution. Meaning, it is characterized by advancements in a number of fields, such as robotics, nanotechnology, artificial intelligence, biotechnology and so on. Even though 4IR is not an immediate threat, it still raises the question of finding employment for millions of unskilled www.ibtbd.net

labor productivity, and thus help generate better-paid jobs. The average wage growth for firms benefitting from the project could rise by an 6000 estimated 34% by the end of the project.” 5000 At a World Bank- ILO workshop on June 5th, 2017, 4000 it was suggested that Bangladesh should actively 5876 3000 address the slowing pace of job creation. Moreover, 5400 5150 5063 4925 4743 4490 4328 4296 4222 a proper National Job Strategy needs to be put into 2000 place which would take measure to guarantee 1000 formal employment creation, raise the quality of 0 employment and make it possible for vulnerable 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 workers to find jobs. Employment of workers (in Million) "Addressing jobs requires policies that establish the macro and microeconomic frameworks to stimulate 4 private sector investment, promote education and 3.5 skills development, and support innovation, 3 urbanization, and mobility," said Rajashree 2.5 4 4 4 4 4 Paralkar, Acting Country Director for Bangladesh, 2 3.6 3.6 3.5 1.5 Bhutan, and Nepal of the World Bank. “We look 2.8 2.4 1 forward to the development of a National Jobs 0.5 Strategy - a comprehensive set of coordinated 0 policy actions that are targeted explicitly toward 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 addressing the jobs priorities.” The two figures show the recent trends of the number of RMG factories and the Generating quality jobs and eliminating gender employment rate in Bangladesh over the last decade. disparity has been a test for our country. Only 1 in 5 workers are employed in wage work. Even more workers in the next decade. foreign markets by enhancing disappointing is that 1 in 3 working women, as Nonetheless, Bangladesh is in their ability to comply with opposed to 5% of working men, are engaged in dire need of diversifying its international trade standards. unpaid work. International migration has been a industries. This has attracted Efforts will be directed towards way for many Bangladeshis to seek better-paying the attention of World Bank too, awareness building jobs in spite of costs and risks to which has approved a $100 regarding marketing worker safety. million financing to expand and branding efforts Another panelist, Thomas Farole exports in labor and skills to create better EVEN THOUGH 4IR the lead author of the World Bank intensive industries. The credit linkages with Jobs Diagnostic, said, “To deliver IS NOT AN from the World Bank’s existing and new large-scale job creation, International Development markets. It will also IMMEDIATE THREAT, Bangladesh must accelerate Association, which provides focus on women skill productivity growth; diversify IT STILL RAISES THE manufacturing and services grants or zero-interest loans, development in the has a 38-year term, including a industrial sector as sectors, with a focus on increasing QUESTION OF six-year grace period, and a well as the exports and Foreign Direct FINDING service charge of 0.75%. infrastructure and Investment (FDI); and facilitate The project is being focused on technology sector. EMPLOYMENT FOR urbanization. Connecting export-oriented industries such “The project will vulnerable workers to jobs and MILLIONS OF as leather, footwear, and light enhance growth and reducing barriers to female labor engineering and it is hoped that competitiveness of force participation will also be UNSKILLED the cash influx will help create selected sectors that critical for better job opportunities WORKERS IN THE 90,000 jobs in these sectors. have a demonstrated in the private sector.” “Bangladesh is the world’s comparative In conclusion, even though NEXT DECADE. second largest garments advantage or that Bangladesh has been experiencing exporter after China, and it can provide essential robust growth, conscious efforts boost growth by diversifying its inputs in must be made to increase the exports, and repeat the garment export-oriented manufacturing welfare of its citizens in the form of quality job sector's success story in other value chains,” said Michael Olavi availabilities, to include more of the female sectors.” said Qimiao Fan, World Engman, World Bank Team population in the workforce and to enhance the Bank Country Director for Leader for the Export skill level of the workforce. Without these, we will Bangladesh, Bhutan, and Nepal. Competitiveness for Jobs Project. be creating further disparity in an economy which This initiative is designed to “The project will encourage already suffers from high income inequality. help local firms gain access to training to improve skills and

SOURCE: BGMEA

No. of Factories

Regional Tourism

A Look into How India Brands Itself to the World

By Taposh Ghosh

THERE HAS BEEN A GROWTH OF 10.7% IN FOREIGN TOURIST ARRIVALS TO INDIA IN 2016, WITH THE USA ACCOUNTING FOR THE HIGHEST NUMBER OF TRAVELERS, FOLLOWED BY BANGLADESH AND THE UNITED KINGDOM.

It wasn't a long time back, when we first watched a young foreigner on Indian television, traveling through the mystical lands of India and sending a postcard back home, with “Incredible India” inscribed on it. That advertisement marked the beginning of a multimillion-dollar campaign attempting to brand India to global travelers. Since then, tourism in the country has come a long way. The Travel & Tourism Competitiveness Report 2017 ranks India 40th out of 136 countries overall, and 10th when it comes to price competitiveness in tourism. There has been a growth of 10.7% in Foreign Tourist Arrivals to India in 2016, with the USA accounting for the highest number of travelers, followed by Bangladesh and the United Kingdom. The sector contributed to 9.6% of the nation's GDP in 2016 and supported 40.34 million jobs, 9.3% of its total employment. The industry is expected to grow further at an annual rate of 6.8% to attain a valuation of $440 billion by 2027, as per the Indian Ministry of Tourism.

SHIFT FROM CENTRALIZED TO STATE-WISE TOURISM CAMPAIGNS

Besides promoting tourism, the Incredible India campaign had primary goals of erasing stereotypes and clichéd images associated with the country. Later parts of the campaign saw Aamir Khan trying to raise awareness amongst the masses on treating travelers as guests of the nation. While the campaigns were successful in achieving its initial goals of promoting the variety of cultures and destinations that the country had to offer, it failed to cater to the specific needs that most international travelers sought. The turnaround came in the form of state-based tourism campaigns as state governments picked up the responsibility to endorse what each state had to offer, relieving the central government of the burden to promote the offerings of each location separately. What started as an attempt to

attract inbound travelers, has now evolved into international campaigns to rope in foreign travelers. It is not unusual these days to catch a glimpse of Amitabh Bachchan promoting Maharashtra in television commercials with high production values on Indian TV channels. What these state tourism campaigns are doing right is promoting the uniqueness of each state, let it be going on an adventure, sightseeing, experiencing cultural diversity, shopping, visiting medical facilities or food outlets. A very particular brand of travelers is being targeted by each campaign. The states have packed up their campaigns with their own logos and slogans for each state, examples being "God’s Own Country" for Kerala and "The Sweetest Part of India" for Bengal. Most states now have their dedicated websites and 1800-helpline numbers at the assistance of the travelers regarding any particular need. The Incredible India campaign lacked the provision of such facilities to foreign tourists, which to some extent discouraged enthusiasts having safety concerns. Recent statistics show that the most popular states being Tamil Nadu, Maharashtra, Uttar Pradesh and Delhi, hold over 60% of the total inflow of foreign travelers. The government believes that this decentralized approach towards promoting India has prompted a competitive landscape between the states, with each trying to outperform the others, in turn benefitting the entire economy overall.

THE BOLLYWOOD FACTOR

Indian movie stars have been spokespersons of global brands for ages. These film stars are considered to be international icons and the states have not been shy to cash-in in on their stardom to promote tourism. Be it Maharashtra roping in Amitabh Bachchan and his mega-stardom, or the use of Shah Rukh Khan’s indefatigable charm by West Bengal, or Assam trying to take advantage of Priyanka Chopra’s fresh Mary Kom image, or John Abraham vrooming on a

GETTING PERSONAL

bike through the hilly terrains of Arunachal Pradesh, channelizing John’s adventure persona as juicy tourism carrot; each state is trying to utilize the nation’s obsession with Bollywood stars to boost tourism in their domains. The inclusion of these stars bring in a sense of relativity for the people and provide them with something unique to remember these campaigns by. For all those who have contributed to over a million views of Shah Rukh Khan’s advertisement for Bengal Tourism, it is not only about knowing the places and the things to do there but to connect and hum along with the star as he croons Tagore’s ‘Ogo Bideshini’ in the video.

WHERE INDIA HAS BEEN ENJOYING PHENOMENAL GROWTH IN ITS TOURISM SECTOR, BANGLADESH HAS SEEN A DECLINE IN FOREIGN TOURIST ARRIVALS IN RECENT YEARS.

ADOPTING A DIGITAL APPROACH

Travel enthusiasts and adventure seekers loom mostly around social media platforms, seeking suggestions as to where to travel next. The states have picked up this trait and engaged themselves in a digital push to rope in younger inquisitive souls, through social media campaigns, digital launch promotions and customer engagement through blogs. Kerala was the first to introduce the Blog Express Model, where the state invited leading bloggers from 25 countries and took then on a fortnight trip across ‘God’s Own Country’ to explore its heritage and culture. The immense success of the campaign has compelled the central government to conduct a similar activity, taking bloggers on a Heritage Wheels trip across India. Through the use of such bloggers, states have managed to appeal to their clientele through people who are heard. PHOTOGRAPHS FROM THE INTERNET

There can be no doubt that state tourism campaigns are designed to provide a more personalized experience to pleasure seekers and adventure enthusiasts alike. But Rajasthan Tourism, hailing the slogan ‘Jane Kya Dikh Jaaye’, which translates to ‘You don’t know what you might see’, takes the personalized approach from the perspective of the travelers themselves. One ad features a little girl named Meera taking a hot air balloon ride, and from her perspective she considers the hot air balloon to be hundreds of smaller balloons pulling her to the sky, similar to the floating house in the Pixar animated movie ‘Up!’. Another shows a group of travelers, stranded in the desert, witnessing a mesmerizing mirage turning out to be a six-seater motorbike coming to their rescue. The ads focus on portraying individual experiences, which are priceless to such travelers, creating an intimate bond while leaving a lasting impression.

POINTERS FOR BANGLADESH TOURISM FROM INDIA’S SUCCESS

Where India has been enjoying phenomenal growth in its tourism sector, Bangladesh has seen a decline in foreign tourist arrivals in recent years. But inbound tourism is on the rise, with new locations with tourism potential being popularized over the last few years. The Bangladesh Tourism Board can carry out division-based tourism campaigns directed at these domestic travelers, to promote newer locations. Whereas much more established sites, such as the Chittagong bearing Rangamati Hill Tracts, Cox's Bazar, and Sylhet (being the tea capital of Bengal) can be pushed to international travelers. Adoption of digital mediums and following a Blog Express Model similar to that of Kerala can help tourism in Bangladesh reach its promised potential. Such mediums can contribute to upholding the nation’s image to the world as the next hottest destination on travelers’ bucket lists. Moreover, such campaigns are needed to eradicate negative images associated with the nation regarding safety concerns in the country. It might take time for Bangladesh to reach rates of success similar to that of India. But given the government’s interest in building the tourism sector, now is the time to act and adopt innovative tools and mediums to brand and promote Bangladesh to the world. And in doing so, we indeed have a lot to learn from our ‘Incredible’ neighbors.

Interview

ZUNAED RABBANI

CEO Agro Input Retailers' Network (AIRN)

CONNECTING THE CULTIVATORS Zunaed Rabbani is an International Development & Management Consultant who is currently in-charge of AIRN, and simultaneously works as the Capacity Building Director for the USAID-funded Agro-Inputs Project.

Can you please give us a brief overview of AIRN and how it came into being?

In 2012, the Agro-Inputs Project (AIP), funded by USAID, began its journey with the objective to improve knowledge, availability, and use of safe, high-quality agricultural inputs by agro-retailers and farmers in southern Bangladesh. Over the last five years, AIP has provided funding, training, and technical advice to agro-input retailers to provide better services to farmers. However, AIP's most notable achievement has been the creation of a new formal entity for agro-input retailers - the Agro-Input Retailers Network (AIRN). While there are several formal, Dhaka-based agro-related industry associations, to the best of our knowledge, there has never been a platform – formal or informal – for agro-input retailers until the advent of AIRN. The Network, an enterprise registered at the RJSC as a company limited by guarantee, is now a pool of knowledgeable and trained retailers giving sound agronomic advice to their farmer customers, and thus, taking the relationship ‘beyond mere transactions’ between input retailers and farmers. AIRN now has about 3,000

input retailers spanning 19 districts and 81 upazillas in the southwest of Bangladesh. These retailers have undertaken a 3-day long training that instigated a thorough behavior change as they have updated their licenses, renovated their shops with proper ventilation and fire extinguishing system, and shelved their products as per WHO guidelines. Many of these retailers have shown commitment to ethical and responsible business practices as they are well aware of the link between long-term profitability and ethics. These behavioral changes required year-long persuasion and demonstration of best practices. Simple in nature, but the impact is far-reaching. Our findings show that a proper, well-organized shop attracts customers. It also changes the seller’s outlook towards his own business. This is Psychology 101. Something we are used to in the urban areas, but it is not practiced in the rural market. We had to instill these ideas through a detailed activation plan that included field trips, meetings, sharing best practices and constant persuasion. Of course, not all of these 3,000 retailers are on the same page, for which, AIRN has also categorized them in Champion, A, B and C

category retailers. So you are basically looking at a cadre of agro-input retailers who have been transformed into relatively responsible and knowledgeable entrepreneurs and at a system that speaks of standardization. You are also looking at a strong governance system that is quite democratic. Representatives of all 19 districts sit on the Board of AIRN, who are elected by their upazila committee, who are in turn elected by the general members in their upazila. This way, AIRN ensures ownership of the members it has.

What are the challenges of the agro-industry at present and how will you be addressing it? The agro-industry, in general, is quite complicated, and has a multitude of problems ‘from farm to fork’. But let me address the challenges where AIRN, can make a change and are currently working. A lack of information is one

WHILE THERE ARE SEVERAL FORMAL, DHAKA-BASED AGRO-RELATED INDUSTRY ASSOCIATIONS, TO THE BEST OF OUR KNOWLEDGE, THERE HAS NEVER BEEN A PLATFORM – FORMAL OR INFORMAL – FOR AGRO-INPUT RETAILERS UNTIL THE ADVENT OF AIRN. www.ibtbd.net

I N T E R V I E W Z U N A E D

R A B B A N I

of the biggest challenges that affect a farmerâ&#x20AC;&#x2122;s yield. Gone are the days when farmers can apply age-old knowledge of theirs or their ancestors. This is due to factors like climate change, insects and pests getting resilient to certain treatments and diseases crossing borders. Thus to tackle all of these, input companies are bringing out newer medicine quite frequently. It's important that farmers are aware of these newer and better practices; otherwise, they will apply dosages which are well above the recommended threshold set by the companies. This could be catastrophic for crop cultivation, similar to how the human body reacts to the overuse of antibiotics. Usually, farmers have three sources for accessing this information. First, farmers have the Sub-Assistant Agriculture Officers of Department of Agricultural Extension agents (under the Ministry of Agriculture). While there is a cadre of relatively well-trained agricultural officers at the upazila level, their mandate is overwhelming, and they are overburdened with tasks. Second, they are visited by company representatives. The company sales staff provide product-related information to farmers, but that is subject to biases for the very company they represent as they have to meet a sales target. The third group is the non-exclusive input-retailers. If these retailers are unethical, ill-informed or unfamiliar with the products, it can lead to disasters. This is why, AIRN works with the retailers at first, and through its training, underscores the importance of retaining customers through the provision of embedded services, which allow farmers to have a better yield, and provide the retailers with a happy client base resulting in

increased income. AIRN has plenty of evidence that suggests trained retailers can be the de facto extension agents who can provide agriculture-related services and information to farmers. Pretty much the same principle a pharmacist applies, but for agriculture hence it is a bit complex. The second challenge is the overall perception about input-retailers. While the agro-value chain has been a topic for years, not much has been said about this specific market actor. This group of people has often been criticized for not considering the best interests of the farmers. However, we have a different experience and different story to tell. Retailers are the closest to the farmers and can be

turned into a fantastic technical resource for them. This is what AIRN through its training and awareness programs want to establish.

What are the core products and services of AIRN?

Quality over quantity. We want to do things well rather than do it all and trust me, as an input network, which can potentially work as a distribution and information hub, the opportunities are too many. In the early years, AIRN wants to provide training, provide business development services to member retailers by partnering with different private companies, from banks to technology solution providers, and by launching 2-3

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revenue by providing training for development projects such as the USAID-funded SAPLING and CSISA III projects and the Dutch-funded BLUE GOLD project. Regarding the product line, AIRN wants to deliberately shy away from launching too many products in their network because we want to avoid becoming sales-centric. The agro-market is huge, and we have identified only 2-3 input products which, on the one hand, will ensure quality to both retailers and farmers; and on the other, will generate enough profit for AIRN to sustain by keeping its neutral image intact.

As the CEO of AIRN, what are your future plans for it?

products throughout its network. AIRN believes that an input retailer, if knowledgeable and ethical, can be a great resource to reach out to farmers, to provide the â&#x20AC;&#x2DC;last mileâ&#x20AC;&#x2122; delivery that the industry is grappling with. So, to establish the very premise that it is built on, AIRN houses a training service, which works on two principles â&#x20AC;&#x201C; 1) creating knowledgeable and ethical retailers, and 2) disseminating knowledge to farmers through trained retailers and a pool of experts. AIRN also has its curriculum on agronomic practices, safe use of pesticides, judicious use of fertilizers, environment-friendly retail shop management and very importantly on business ethics. Very recently, AIRN PHOTOGRAPH PROVIDED BY AIRN

trained about 1,200 retailers on Integrated Weed Management based on a curriculum developed by CIMMYT (The International Maize and Wheat Improvement Centre). One key aspect that separates AIRN training service from any other is the inclusion of input retailers in the training pool. Retailers, as they are closer to the farmers than any other market actors, remain in the community and can have the products on their shelves to provide continuous support to the farmers. By incorporating local retailers with experts, AIRN ensures the harnessing of knowledge locally. This training wing officially started just a few months ago and is already generating

Although primarily into agro-inputs, but as a retail network of business people who maintain certain business standards, AIRN can potentially work as a hub for quality inputs and other services that are relevant to farmers, as well as individuals at the Bottom-of-the-Pyramid. Having a strong base in the rural market through a committee in each of its 81 upazilas, AIRN is planning to be part of innovative projects, from digital financial inclusion to app-based agro-solutions, from financial literacy for women entrepreneurs to nutrition-sensitive agriculture practices. Currently, we are in talks with banks, development partners, and technology solution providers where all parties will join hands to implement innovative and commercially viable ideas. Rural distribution is also an area that I am keen about. We have tested the water with a product early this year and learned a great deal. However, a www.ibtbd.net

I N T E R V I E W R A B B A N I

lot of social dynamics and hierarchy come into play, for which we are revisiting our strategy. While I am excited about new business opportunities, I am also quite conscious of quality control of AIRN-logo holding retailers and therefore, we will soon be implementing a commercial, and slightly stricter, code-of-conduct for business operations. We may lose a few members, but this allows us to filter out retailers who are not committed to selling quality inputs and are not willing to go the extra length to provide embedded services to farmers. The internal communication channel is also something that is at the top of my priority list because it is a challenge getting the same message across and the same vibe to 3,000 retailers who are geographically so dispersed. A text message can probably be passed around for disseminating basic information, but you can’t transmit energy, commitment, and company ethics through such a loose connection.

Less than 10% of the members of the program are women. How can we incorporate more women in AIRN?

To answer that, we need to look at the context first. I understand that although a significant number of women are involved as farmers, women are not well represented in the input retail sector. Now before the project was initiated, we could find only a handful of women in this business - many of whom were giving ‘proxy’ support to their husbands; some of them were selling fertilizers and biscuits from the same shop, which is an absolute ‘NO’ for AIRN members. We encourage retailers not to sell human food from the same shop where they store and sell pesticides and fertilizers. Having all the required license is also a must for AIRN members, and a big portion of existing women retailers did not have licenses while some of them had documents but did not renew them. Now, we are no authority to chase out business people who are operating without a permit, but we want to make sure our members follow industry practices and legal requirements. Our women retailers have licenses in their names as they are the ones who sit at the shop. So, with support from USAID, AIP

PHOTOGRAPH PROVIDED BY AIRN

Z U N A E D

provided $1000 matching grants to 200+ women to encourage their entry into this sector. On top of that, the project facilitated their licensing process, provided technical and business training, linked them with existing market actors and organized courtyard sessions for women entrepreneurs. ‘Garnering sessions’ were also held where new women entrepreneurs were introduced to their local community. So you can see that the project did go deep instead of spreading too thin. It wanted to make sure that women who are coming into input-retailing business want to stick around after the project is finished, and we are happy that the numbers and feedback look good. Very recently, we did a survey and found out about 98% of the 200+ women retailers experienced that their sales are going up every quarter. About 50 of those women retailers have received dealership from different companies. This speaks of their quality and the volume they sell and provides credibility, which in turns helps them to access loans. These women entrepreneurs fulfilled all criteria of being AIRN members and were associated with the project so they got an easy entry into AIRN. We would love to have more women in AIRN, but they need to comply with our code-of-conduct. But honestly, if you ask me, numbers are not something I am too fussed about. I would rather focus on the quality of life women entrepreneurs are having – are they getting enough rest? Do their family

members support her? Or, is she now being burdened with both household chores and income generating activities? Depending on how you see it, there is no right or wrong answer as I prefer to not always think in numbers.

Has it been a struggle to juggle your work as a CEO while being a media personality?

Yes and No. No, because I have a life outside the media and not being financially dependent on it allows me to work on my own accord. I love performing on stage, I am fairly comfortable in front of the camera, but I also love that work that I do 9-5. So far, I have been able to balance both, although I had to turn down a few gigs such as hosting a morning show in one of the best radio stations in town since they clashed with my office hours. But I am in no hurry. Anchoring is still food for my soul, and I would like to keep it that way. However, as of late, I have developed an interest in digital entertainment. I did some reading and was following the likes of Patrick Grove for a while but could not build up on it. I can see how the media industry would change in the next few years, and I wish I had more time to invest in it, to know more about it. At the beginning of this year, I started working on some interesting ideas and a project of mine got up to speed, but I had to put the brakes on it mid-way because I am not able to provide sufficient time to roll them out.

All the opinions mentioned in this article is Zunaed Rabbani's and his alone. For further clarification and communication, please visit the AIRN website: www.airnbd.net

Different Perspective

Why Tesla Can’t be the Next Apple By Irfan Aziz

elon musk

steve jobs esla has been making a lot of headway lately, and they haven't been coy about letting people know about their intentions to become the next titans of the tech industry. Their most recent line of cars is nothing short of spectacular as they seem to be the embodiment of both style and functionality. They captivated consumers to the point that their Model 3 received over 350,000 preorders in the first week. Their rise in popularity has caused experts to dub them "the next Apple" with their current cap of $50 billion to increase to $700 billion in the next few years. Tesla has always been compared

to Apple with their sleek tech-savvy products, forward thinking approach, Silicon Valley roots and visionary leader, Elon Musk, who has always been on par with Steve Jobs and is even considered to be greater than him by some. Musk is the real life Tony Stark who has more spark, innovation, and imagination in one fingernail than most ordinary men do in their entire bodies. In addition to Tesla, he has also founded PayPal which has forever changed people's online purchasing capabilities, making transactions over the internet a piece of cake. He also founded SpaceX which revolutionized space technology with the ultimate goal of making other planets inhabitable for earthlings. Musk with SpaceX is working to make Mars the next destination for human evolution. So you see, Musk’s ambition knows no limits. Take nothing away from Jobs though; the man was no stranger to ambition and vision. In fact, his ideas are still being implemented today, and it is his legacy that is carrying Apple forward. But this is not about Elon Musk, Steve Jobs, Space X or PayPal; this is about Tesla going head to head against Apple as an entity and as much as we admire Tesla’s recent success, here is why we think Tesla is not the next Apple.

AT THE END OF THE DAY, TESLA IS AN AUTOMOBILE MANUFACTURING COMPANY AND IS NOT A CONSUMER ELECTRONICS ORIENTED COMPANY LIKE APPLE. MARKETING TO THE MASSES

Tesla is not a consumer electronics company. At the end of the day, Tesla is an automobile manufacturing company and is not a consumer electronics oriented company like Apple. True, they have received a much deserved and much-needed boost over the last couple of months but do their products have what it takes for mass marketing? The underlying principle that draws comparisons between Tesla and Apple is mostly their innovative thinking and visionary leadership, but there is no denying that Apple has a much more diversified product line than Tesla. Think of it in Bangladesh’s context. If Apple cannot penetrate the computer market with their Macbook, they can always try their luck in the cell phone market with their iPhones, right? (Which they have, the number of iPhone users has drastically increased in recent times). What about Tesla? If they can’t make it into the car market of Bangladesh, where will they go? Truth be told, companies like Tesla would find it hard to get a foothold in developing countries as a lot of them already have companies dominating the car markets with their affordable vehicles, such as Toyota. If Tesla can sell 500,000 units of their Model 3 across America, Apple can sell 5 million units of their iPhone. And that is just one item; Apple has a huge market for nearly all of their products. Tesla has very little or no scope at all for mass marketing. PHOTOGRAPHS FROM INTERNET

UNPREDICTABLE FUTURE

"IF SOMETHING IS IMPORTANT ENOUGH, EVEN IF THE ODDS ARE AGAINST YOU, YOU SHOULD STILL DO IT.” - ELON MUSK

"BEING THE RICHEST MAN IN THE CEMETERY DOESN’T MATTER TO ME … GOING TO BED AT NIGHT SAYING WE’VE DONE SOMETHING WONDERFUL … THAT’S WHAT MATTERS TO ME." -STEVE JOBS

Another huge factor is that Tesla’s success is just a mere prediction. No one can say for certain whether their popularity can be sustained. Furthermore, their $35,000 price tag may be able to attract new customers from various price ranges, but how first-time luxury car owners will react or the extent of their satisfaction is unknown. Sustainability is a major, major doubt. Tesla’s ideas revolve around innovations which have not been implemented by other car companies, but in truth, other automobile companies can quickly start using them if they wanted to, but they are just unsure about how consumers will react. So basically, right now what sets Tesla apart from the rest is their will to take risks, but that can all end in a flash if giants like Ford or Toyota decide to join the party. So, as you can see, Tesla might have their heads in cloud 9 at the moment, but they are on a fragile rope which may break at any time. Apple has been in the picture for a long time and is in a very stable position which is almost impossible for Tesla to reach at the moment with their shallow product line. However, there is no saying what Elon Musk will do next, he has achieved so much success in all of his ventures and he is perfectly capable of surprising everyone by introducing technology that we can’t even dream of. But based on the facts we have on hand at the moment, it is safe to say that we don’t see Tesla becoming the next Apple anytime soon but we would like to wish them all the best in their quest.

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Excerpts

How You Can Build a Digital Startup By Gazi Yar Mohammed & M Murshed Haider From a practical standpoint, there are many ways to learn about business change, and the opportunities that may spring up at any moment. Here are some steps that every aspiring entrepreneur should take full advantage of when they’re looking to build their digital startup: beyond the academic world to professional and industry seminars. Focus on the opportunities that match your needs for today, since you never know too far ahead what you need to know next.

VOLUNTEER TO HELP ORGANIZATIONS RELATED TO YOUR INTEREST

There is no better way to broaden your perspective and understand realities than to work in an environment where motivations are positive. You can get real leadership experience and real learnings without long-term commitments and financial pressures. GAZI YAR MOHAMMED

is life coach, fintech analyst and retail banking expert. He is working as the Head of Retail Banking at ONE Bank Limited.

COMMUNICATE WITH PEERS WHO HAVE ALREADY ESTABLISHED A STARTUP

The common term for this is networking, but I find that many aspiring entrepreneurs like to do all the talking about their latest new idea and fail to listen. You don’t learn anything while talking. Successful entrepreneurs love to share, but they respond better to pull rather than push.

RESEARCH CURRENT SUCCESS STORIES AND ROLE MODELS

The internet is better than the Library of Congress or any university, since it changes daily to keep up with reality and is interactive. Reserve some time each day for your favorite blogs

M MURSHED HAIDER

is a passionate public speaker, certified Personal Trainer and Corporate Coach.

and influencers, follow up with social networking and expand your personal contacts offline.

FIND A BUSINESS MENTOR, AS WELL AS A FRIEND

A mentor is someone who will tell you what you need to hear, while a friend might tell you what you want to hear. Actually, you need both, and the ability to tell the difference. We found that all entrepreneurs benefit from bouncing their ideas off someone else, and unique perspectives can add real value.

DON’T SKIP NEW “LEARNING HOW TO LEARN OPPORTUNITIES”

These include the classes in school that focus on case studies and team exercises, but extend

START YOUR OWN SMALL BUSINESS

The cost of entry for an entrepreneur is at an all-time low, with very low incorporation fees in most states, website creation tools for free and the ability to create and offer smartphone apps for a few thousand dollars. Learn from the challenges of a startup with a low-risk idea before you bet it all on the big dream. We fully recognize that self-initiated learning is not for everyone. If you are one of those people who like structured classes and count on spending a couple of weeks in the classroom every year to catch up, we don’t recommend the entrepreneur and startup lifestyle. Starting a new and innovative business is not a highly-structured process, and finding time for structured learning is unlikely. Finally, it is always helpful to check your motivation to be an entrepreneur. If you see it as the path to easy money or as an escape from an existing job or family pressures, it’s time to recognize that learning doesn’t come easily if your heart isn’t in it. There is no substitute for doing what you love, and loving what you do. Once you learn to love learning, you too can be a successful entrepreneur.

The article is an excerpt from the book titled “Master Password” written by Gazi Yar Mohammed and M Murshed Haider and has been published in ICE Business Times with the authors’ permission.

Case Study

PURSUING A SUSTAINABLE SUPPLY CHAIN BALANCING YOUR NEEDS WITH YOUR RESPONSIBILITY By Debojit Saha THE CASE OF AARONG Case studies can act as one of the most effective methods of learning how to deal with real life management problems, these are mostly descriptive enactments of the challenges that have been faced by an organization in the past. In Bangladesh students have to depend on case studies based on foreign companies. Kaizen CRS, a full service market research firm has taken an initiative to develop business cases on local organizations. The initiative is being called "Kaizen Case Study" (KCS). This case on Aarong is an excerpt from one of the cases of KCS. For those interested in the full case, please email: debojit@kaizencrs.com.

Aarong is a leading lifestyle brand in Bangladesh, an organization which has achieved massive success due to the cooperation from the 65,000 artisans who are the backbone of its supply chain. However, the Chief Operating Officer (COO) of the company was faced with a majore dilemma in 2013. This came about from the political unrest which was prevalent in the country at the time. The announcements regarding the verdicts in the war

crime trials had triggered a new phase of angry street protests in the first three months from February to April of 2013 which saw more strikes than in the previous three years - 23 in total. Till the beginning of February 2013, the situation was a bit relaxed, but ever since they began, they caused severe problems for traders, damaged vital infrastructure and even led to the loss of human life. During this period, Aarong too suffered from incessant strikes. The wide spread violence during that time had lead customers to www.ibtbd.net

C A S E

S T U D Y

P U R S U I N G A S U S T A I N A B L E S U P P L Y C H A I N

stop visiting the outlets leading to overstocking in stores. Aarong sources its product from its artisans at least three months ahead, and now on top of the unsold stock, new inventory was piling up clogging the supply chain. Aarong needed to keep its business afloat, and the easiest way perhaps was to cut orders from artisans however the core mission of Aarong is to support the artisans through thick and thin. Amidst the uncertainty of when the strikes would end, Aarong faced a critical dilemma of balancing its business goals along with its social mission.

AARONG BUSINESS MODEL

Aarong (meaning village-fair), has become one of the most popular lifestyle retail chains of Bangladesh. Currently, Aarong has 16 stores across the country, 9 of which are in the capital city, Dhaka. The first outlet of Aarong was launched in 1978 in Shukrabad, Dhaka. In 2011, Aarong launched its flagship retail outlet in Uttara which Aarong claims to be the largest retail store of a single brand in Bangladesh. Currently, Aarong has over a 100 different fashion and lifestyle products starting from clay pots to diamond jewellery, silk and cotton fabrics to brass and leather merchandise, from Nakshi Kantha to home décor products, Aarong has something for everyone. Aarong has also entered the unique market segment for handicrafts in an attempt to revive Bangladesh’s rich heritage. They aim to connect the urban consumers with their roots by providing them with products made in collaboration with over 65,000 artisans spread across Bangladesh. Aarong has revolutionized the retail industry with high standards for quality and artistry.

PRODUCTION

Aarong has an efficient decentralized production system with a combination of both independent producers and the producers of Ayesha Abed Foundation (AAF). It has over 800 independent producers who have about 30,000 artisans working for them while the Ayesha Abed Foundation has 35,000 artisans working in 13 centres. The Ayesha Abed Foundation is responsible for the production of 75% of all textile of Aarong while the remaining 25% is produced by the independent producers spread throughout Bangladesh. Aarong’s entire production process is divided into the five stages shown in the following diagram.

MARKETING

STAGE 1: PLANNING

STAGE 2: DESIGNING

Aarong analyses the sales and inventory levels of previous years to find a trend that they use to set target quantities for each of their products in their portfolio for each outlet per month for the next fiscal year. This is usually done approximately a year before. The planning stage revolves around Eid-ul-Fitr, one of the major holidays for all Muslims in Bangladesh. During Eid-ul-Fitr, it is a tradition for Muslims to buy, gift and wear new clothes. Hence, Eid ul-Fitr is a highly critical time of the year for Aarong since it accounts for nearly 25% of total sales each year.

After the planning stage, a dedicated team of around sixty designers start working to create the next season’s product designs. These designers start working with producers to create samples of products which have to be approved before full-scale production can begin.

Aarong understands the importance of properly building a brand by being consistent in their marketing communications. They aim to gain long-term customers by positioning themselves as the fashion trendsetter and the nation’s leading lifestyle brand in the minds of the consumers. Aarong’s dedicated marketing team seeks to do that through the use of both traditional print and billboard advertising along with a robust digital marketing strategy to showcase their innovative product lines. Promotions for these products are then planned according to upcoming major shopping holidays like Eid-ul-Fitr. It is a bit unconventional to think of handicraft retailers and supermodels in the same space. However, Aarong's men's and women's wear are featured by the

top models of the country. The fabrics of each of the pieces are weaved on handlooms and value addition is done by hand embroidery, block/screen prints, natural dyes which are all handcrafted by rural artisans. Aarong promotes artisanal products without promoting the artisan, but rather using mainstream methods. Aarong does not want to capitalize its use of artisans in their marketing campaigns only because it goes against the very purpose of Aarong’s existence, i.e., to help the rural artisans and ensure a constant stream of income.

THE CHALLENGE

In the first three months of 2013, the situation was looking incredibly bleak because of the strikes and political unrest in the country. Roads were blocked, vehicles set on fire, stores

C A S E P U R S U I N G

STAGE 3: COSTING AND MERCHANDISING

STAGE 4: QUALITY CONTROL

After a sample has been approved, the necessary raw materials are acquired large-scale production from outside suppliers. The appropriate product costing is established during this stage. Producers are supplied with the necessary raw materials, design instructions, costing information and the required quantity. Production is carried out through, both the Ayesha Abed Foundation (AAF) and its sub-centres and through independent producers. Each producer is given a particular target quantity to meet.

Quality is key to the overall success of Aarong, and hence Aarong has an extremely rigid quality control stage in its production process. Quality control is executed at every stage of production. In each stage, the product is examined thoroughly, and only if it is approved, does it move on to its next stage of production. This type of quality control ensures consistency in the product line and customer satisfaction.

vandalized, tear gas canisters thrown all across the country to break up congregations of violent protestors. All this resulted in a sense of panic instilled within the general populace. Businesses suffered greatly as customers refused to leave the security of their homes. Only the absolute necessities were purchased during this time. Furthermore, companies started incurring greater costs because of the ten times increase in the cost to transport a product in the country. During a time like this, Aarong saw a significant decrease in its overall sales February 2013 and the pressing issue of overstock was becoming more apparent. With no signs of the political situation improving, Aarong had to make a decision on how to deal with their major overstock issue. A few

STAGE 5: AARONG OUTLETS AND INVENTORY CONTROL At the final stage of the entire production process, the finished goods are sent to Aarong outlets. Since Aarong has over 100 different product lines, it means that the number of Stock Keeping Units (SKUs) is enormous. This further facilitates the need to track daily sales and monthly productions to maintain an efficient inventory level.

alternatives were available for Aarong executives.

Alternative 1: Do nothing Aarong can choose to do nothing and let the situation fix itself. It can simply depend on its existing brand image and hope that the political situation will improve significantly. The overstock can be mitigated through aggressive marketing later.

Alternative 2: Withdraw orders from a few producers Withdrawing orders from a few producers would allow Aarong to ease the pressure of overstock by adjusting it with next monthâ&#x20AC;&#x2122;s inventory. This would reduce cost and help react to any further unforeseen negative impacts from external factors.

S T U D Y

S U S T A I N A B L E S U P P L Y C H A I N

quantity orders from each producer Rather than completely withdrawing orders from a few selected producers, Aarong can reduce order quantity for each producer by a small amount. This will ensure that all producers still have work and a source of income. However, this will increase the overall cost arising from the overstock since it is a longer process of mitigating excess inventory. Furthermore, Aarong will have to bear the cost of analysing and deciding on how much order quantity to reduce from each producer. This would be the longer procedure. Given the alternatives available, Aarong had to decide which the best solution was. Furthermore, the solution had to be sustainable and be beneficial for Aarong and its partners.

NEXT STEP

Aarongâ&#x20AC;&#x2122;s management was in a tight position in 2013 and the options to wiggle more room for change had been severely limited by the catastrophic political climate. Could it continue to incur the losses and stock pile supplies in order to keep the artisans afloat? But with no end in sight to the unstable political climate, this was definitely not sustainable. On the other hand, if they chose to withdraw orders from a few particular producers, complications could arise regarding which producers to choose and choosing the option of leaving them high and dry with no other income source available. Similarly, if the quantity ordered were lessened by all customers, management would have to decide on answers for questions such as: how much quantity? Will each producer reduce quantity by the same amount? Will it provide relief to the transportation costs? These were the possible questions that Aarong had to decide on in 2013 if they still wanted to remain profitable and do right by the thousands of artisans who rely on them for their livelihood.

Alternative 3: Reduce small

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Ask the Expert

ILead

“WHY DO YOU NEED SOMEONE ELSE IF YOU CAN LEAD YOURSELF?”

By Mohammed Masud Rayhan s a professional speaker, I have spent a lot of time in my working life delivering keynote addresses in different cities of Bangladesh and shared the #ILead thought among participants. An empowering question that I always ask in the beginning is “Why do you need someone else if you can lead yourself?” The imaginary leadership personnel that you seek and expect to lead you what if that person is you? If it’s your dream, your vision, and your destiny, start believing that you can develop the talent and skills to lead yourself. You don’t need someone else to lead you. All you need is to believe in your potential and make the best use of it. It might just be translated into the statement that you need to stop expecting that others will make changes in your life. The concept of #ILead is to take responsibility for yourself and set remarkable examples. They will say, “It’s not your cup of tea. You don’t have any experience in leading people or managing a team”. I would say, “If you have the right character, commitment, competence, and courage, then why not lead yourself?” In the same light, Mahatma Gandhi said, “Be the change that you wish to see in the world.” Let’s focus on some areas where we can initiate the change to grow and do things differently.

A S K

T H E

E X P E R T

# I L E A D

THE CONCEPT OF #ILEAD IS TO TAKE RESPONSIBILITY FOR YOURSELF AND SET REMARKABLE EXAMPLES.

#ILEAD MINDSET

The ILead mindset is the profound self-influence and the energy to create an enlightened way forward. This mindset circumscribes dedication, unbound enthusiasm and extreme passion which inspire others. Our thoughts are fundamentally insignificant unless we activate them with dedication and become consistently constant! A healthy mindset and a set of actions exhibit the unleashing potential of a professional. The moment you can passionately say, “This is what I want, and I will get there with my maximum effort,” you will feel the energy inside. All the great leaders and outstanding personalities have this leading mindset. You may observe in any community or professional forum; there is always someone who takes the lead to direct the conversation or the flow of a discussion. See, it’s not about the habitual responses which were demonstrated in those cases rather the mindset which drives the habit to take the lead.

#ILEAD PLANNING

They say that to get the best from life, you need to stay completely mindful at all times. I say if you are mindful with a wrong plan, you can never expect the right result. Consider how much time you spend making a plan regarding your career, family issues or even professional growth. Ordinary minds will always want to go with the flow; whereas, the extraordinary minds will concentrate on effective planning and have alternatives prepared. If you wish to be the legendary mind, you would want to invest at least 30% of your time towards an impactful plan. When you can confidently say, “I lead my life’s plan” or “I lead my professional plan,” you are finally taking responsibility.

#ILEAD POSITION

Let’s become the CEO of our lives! Seeing yourself as the CEO of your life can create a radical move in the way you perceive this beautiful world. Yes, dear reader: you can lead your life from anywhere and from any position. It doesn’t matter whether you are a singer, writer, banker or even a scientist. If you want to be the game-changer of your industry, you need to take responsibility first and lean forward to serve humanity. Both you and I know that there are lots of definitions of leadership and management. I say leadership is how you are thinking, and believing what you are doing and what positive impacts you are creating from your position. You don't necessarily need to have high positional equity to demonstrate leadership traits.

#ILEAD ATTITUDE

Keep in mind that - “Attitude is a choice and your attitude always determines your actions”. We sometimes hear the lines - “It’s not my mistake/I am not responsible for this” or “this fault took place due to someone else's negligence”. These lines might seem familiar as they are quite commonly thrown around, especially in the corporate sector. The ILead attitude is all about taking ownership and responsibility. You should remember that it will always increase your credibility when you say “it’s my mistake and I will solve it” or “I am responsible for this failure and I will lead it to success”. The ILead attitude is all about demonstrating confidence, positive energy and the can-do attitude.

#ILEAD SELF-MOTIVATION

American motivational speaker and author, Zig Zagler once said, “People often say that motivation doesn’t last. Neither does bathing – that’s why we recommend it daily.” See, the more you motivate yourself towards your destiny, the closer you get to your vision. And it’s not about a day or a month - it’s about all the times when you are driving yourself. Self-motivation is the force that shapes your life. Yes, of course there will be both pain and pleasure in life - but intelligent is he who knows how to utilize the pain and pleasure towards the purpose. Do note that the word “utilize” has special emphasis! Most of us are controlled by surroundings and stipulated patterns of life. If you have ILead self-motivation inside you, then you will control the surroundings. None of the external forces can interrupt your mind if you sharpen and motivate your soul every day. American academician and poet, Ralph Waldo Emerson said, “Every man is an impossibility until he is born.” As you made it possible, live every moment of it. Do not lead your life by someone else’s direction. Be the person who you want to be. Be the Superman in your industry. Be the Wonder Woman in your area of work. Lead your life to prosperty.

The writer is a HR Professional & Corporate Trainer and can be reached at masud.rayhan@gmail.com

Corporate Team building

Inspiring Fiery Optimism

ENHANCING SOLIDARITY THROUGH AN A TYPICAL TEAM BUILDING EXERCISE By Shaikh Ashfaque Zaman

s the team stands in formation, Nafees Kausar (Brand Engagement, Don Sumdany) starts with Helen Keller’s quotes on an ironically cloudy day, “Keep your face to the sunshine and you cannot see a shadow.” Working on research and technical matters, Nafees is the most excited about learning the act. The words are befitting of WiKreate and Don Sumdany as they have pursued that path of motivation and positivity in a country where the concept was unheard of. Shahriar Kamal Chowdhury (Chief Strategy Officer, WiKreate) explains that they will try the cross formation. The team just started fire-spinning classes once a week with their resident expert Shahriar and HELIOS. He explains that the team has seemingly mastered using one fire poi and they

are working on both. A beaming Farzana Zerin (Training and Business Development) starts the session, proving that training is in her soul. On this day, she’s going to attempt to swing them over her head, however, she does admit that she’d only try it when the spinners are not lit. Next is Sajib Rashid (Managing Director) who is always about pushing the envelope; he tries to create circles while bending his back. He admits that he’s constantly watching new trick online and trying to manipulate them. So much so, that he’s purchased practice spinners with tennis balls and rope. As the younger members of the team, Nilakshmi Das (Social Media Executive) and Sabrina Akther (Client Service Executive) start their practice session, everyone takes out their camera. The others chuckle stating that when they practice, it comes across as a Facebook photo session. A solo act follows them; Ziaul Arefin Tuhin (Inspirer – Creative and Design)

applies his design philosophy to the art. He requires solitary focus when he tries anything new or just perfects a previous move. His spinning is like his art, every detail matters. G. Sumdany Don (Chief Inspirational Officer – Don Sumdany and CEO of WiKreate) concludes the session by taking on two spinners and trying 3 separate moves. He believes that his efforts to go beyond and above will inspire each and every member of his team to do the same.

BLAZE OF GLORY

Between the turns and the tumbles, the Wikreate and Don Sumdany team expound upon how there is no room for negativity, only enthusing positivity through creativity:

HABITUAL HAPPINESS

“I had read an article from the Harvard Business Review stating that the brain is like the body, during our adult life, we can also reprogram it through new habits. The study discovered that unexplored activities increase productivity by at least 20% in the first four months. I was training in fire spinning and what would be more unique than getting the team to take on a new challenge as we embark on our third year. Everyone’s first thought was that we would start off my playing with fire but I assured that we aren’t

that outside the box. These once a week sessions work for two reasons; everyone on the team had never tried it and more importantly, it helps them push the envelope, which is what our companies are all about.” Sajb Rashid - Managing Director – Don

Sumdany & WiKreate)

AWAY WITH THE HIERARCHY

“Of course, we all have formal designations but that does not dictate any form of hierarchy what so ever. We want you to know that the older and more senior employees are your mentors, not your bosses. When you have such a rigid hierarchy, you completely lose the notion of incorporating new ideas and collective progressive. In this long journey of life, more drivers create greater mileage. Moreover, our doors are always open; we don’t want anyone to feel like a particular space is not theirs. Everyone has their own perspective and it can definitely add a new angle that is symbiotically progressive with the company’s idea. For example, Nilakshmi is the expert on Facebook; she knows what will “click” on a social media platform. Therefore, we know that her approach and suggestion will ultimately help the company” Shahriar Kamal Chowdhury – Chief Strategy Officer - WiKreate

REINFORCEMENT ON THE WAY

PACKING ON THE PUNCHES

WiKreate)

Officer, Don Sumdany & CEO of WiKreate

“Given that this is my first job, the first time I had made a mistake with a client, I was sure that I'd be lectured about my performance. However, upon entering the room, Don bhai asked me if I knew of the term “energy vampires.” Obviously, my perplexed face led him to explain that these are individuals who drain your positivity and that adding negativity to a compromised situation would never aid the process. They analyzed the matter with me in order to make the best of the situation. My work requires handling a diverse portfolio of clients and catering to their needs, which proves to be a challenge every day. Nevertheless, we have a team that provides the necessary support when we’ve not completely within our element. When the stress builds, we often set aside the work for 10 minutes to be our own social support system.” Sabrina Akther - Client Service Executive-

“When Shahriar proposed the idea of fire spinning, I was instantly on board. It reminded me of when I had started this company; I was criticized by almost everyone that my concept would never work in Bangladesh but you see our continuing success. I explained that fire spinning is sort of metaphorical, whereby we face the fire (skeptical people) and welcome them to envision the world through our perspective. As the punches come our way, I emphasize passion, persistence, and positivity. Passion is kind of the core of our mission and it can be seen through persistence and positivity. The clients are kind of like our weekly session, where we take on the challenge to learn a new way of spreading positivity; each hit you take can be seen as an exit to give up or the gateway to a stronger you.” G. Sumdany Don - Chief Inspirational

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THE QUOTE QUOTIENT

“I kind of stunned my colleagues when I started our team meetings with a quote on the board. My expertise in research allowed me to find an abundance of positive quotes that have grown into my initiation of our fire spinning sessions. People often neglect the power of words but these positive quotes are a universal language that creates an environment of positivity. Each quote may resonate with any number of our colleagues and they come to realize that we are a team that empathizes with each other. This empathy is so important in our work because we can look across the table or during our sessions knowing that our peers have a deep understanding of us. Our videos, pictures, and post are all about positivity backed by solid research. Plus it has given me quite the philosophical reputation in the office.” Nafees Kausar - Inspirer - Brand

Engagement- Don Sumdany

THE RIPPLE EFFECT

“I’m kind of teased as the Mona Lisa of the team because I’m consistently smiling. When I started my training sessions, I stumbled upon Shawn Achor’s “Super Soul Session”; I took two things away from that video, happiness is a choice and within two minutes you can change someone’s perspective within two minutes you can witness a behavioral change in your clients. When you address someone with a smile, you automatically resonate an optimistic attitude that allows him or her to recognize your approachability giving way to their acceptance of your words. I always tell my colleagues and the attendants of my sessions that their positivity is like a ripple or a vibration;

it is easily contagious and simply more productive. It all starts with any supportive gesture or communication.” Farzana Zerin - Inspirer - Training and

Business Development- Don Sumdany)

FUELLED BY FEEDBACK

“Social Media has become a primary brand representative throughout a broad spectrum of companies. It speaks volumes about your brand, and provided how interactive it is, you must provide instant feedback to your subscribers, guest or those who simply view your page. Understand your message and continually relay it; my approach to our message of positivity didn’t exactly mesh with everyone. All of our posts are of a hopeful nature and the bulk of messages will be “likes” or “thank you” for those who agree. I scout the negative message who feel that our message is unrealistic and impossible. I try to make a one-on-one connection with them because giving someone individual time lets them know that you are more than just a post, you are a believer of your message.” Nilakshmi Das - Social Media Executive- Don Sumdany

THE VALUE OF VISUALS

“When I first joined, I recall explaining to the team that visualization is the key to reaching an audience. It not only stays within the long-term memory, it also improves the comprehension of an idea and relays it faster. Our audience is constantly bombarded with an unlimited amount of information from the Internet. Therefore, I make sure that all of our designs are in sync with our optimistic

attitude. A design has the ability to evoke emotions so we stick to that. I explained the visualization of matters like Don bhai’s words; it can truly keep an audience captivated. This concept has even transcended to the floor plan of our office. We chose the color orange because it provides a warm and welcoming feeling.” Ziaul Arefin Tuhin - Inspirer - Creative and

Design – Don Sumdany)

A TEAM EFFORT HELIOS, one of the leading fire-spinning groups of Bangladesh, provided the logistics & training support for this project. HELIOS is a collaborative platform of like-minded creative souls specializing in performance arts & visual storytelling. They focus on Fire-spinning, Graphic Poi Spinning & Synchronized LED Performances as their creative outlet. HELIOS strives to be an open group where performers of all genre can come together & express their creativity. HELIOS plans to collaborate with foreign groups to represent Bangladesh in the global performance arts’ scene in the future. Don Sumdany is the latest training, facilitation, and consultancy firm lead by internationally trained facilitator G. Sumdany Don. It provides business services in the ways of training and facilitation giving the clients options to choose from their set modules, order customized modules, run train the trainers' programs, facilitate employee outings/target settings, etc. WiKreate Events and Activation Ltd. is a marketing and advertising agency providing BTL and digital campaign services.

Fashion Industry By Irfan Aziz

Strengthening the Threads of a Rising Industry The fashion industry is one of the most exciting prospects of Bangladesh. Given our upgraded status to a lower middle-income country has seen us moving up in the world, people now have a taste for the finer things in life. We are now more concerned about how we carry ourselves and what brand we wear than ever before. This paves the way for the fashion industry to become a very lucrative industry for Bangladesh. It is, however, much easier said than done. From the outside, the fashion industry looks incredibly lavish, vibrant and full of energy but only a few know about the internal struggles. ICE Business Times spoke with Tanjim Haque, Managing Director at one of the pioneering brands in the industry, Ecstasy, to give everyone a more insightful picture of the challenges of the sector faced by fashion entrepreneurs as they strive for local as well as global recognition.

eople often mix up the fashion industry with the RMG sector, and although they are loosely related, it has to be understood there are stark differences between the two industries. The RMG sector usually produces clothing items for export purposes. When these items are labeled as a part of designer brands, they enter the realms of the fashion industry. Now Bangladesh is known for its RMG sector, in fact, we are responsible for producing and developing the products of some of the biggest names in the fashion industry worldwide. According to Tanjim, “We are known for our cheap labor and CM (cutting and making) charges. Leading brands in the country have been working hard to change the image Bangladesh has from a country that provides cheap labor to a country with an emerging fashion industry. But it is sad to see that our fashion industry is still in its infancy stage”. Given our

cost advantage in terms of cheap labor, why are we still lagging behind? We have people like Tanjim Haque who have dedicated their lives to trying to uplift the fashion industry then why is it that our brands have not yet received global acclaim? The reasons can be divided into several categories but to put things into simple terms, the lack of support is the biggest challenge the fashion industry faces. Starting from capital accumulation to government assistance to even family support; fashion entrepreneurs go through many struggles in their quest for success. The fashion industry with all its promise is not given enough priority. Accumulating capital is a major challenge as banks do not have enough faith in entrepreneurs in general. Furthermore, in a country where children are expected to become bankers, doctors, and engineers (harsh reality), parents more often than not are hesitant when it comes to their children deviating from safer occupational choices. “I studied medicine; however, I was more

passionate about fashion. I got no support from my family so whatever capital I had was from my own savings”, Tanjim recalls. Also, the fashion industry gets no priority from the government as they are not given access to many billboards or prominent locations to set up shop. The industry, until very recently, was not even allowed to take money abroad legally, so they had to rely on third parties to showcase their products on foreign soil. It is also plagued by increasing taxes, VAT and overhead costs which cause entrepreneurs to lose interest. Tanjim added, “Companies in the poultry sector are subjected to very little or no tax at all because the government wants that industry to grow. So why are we not provided with that same privilege? Instead, we are subjected to increasing tax rates. The fashion industry has the potential to become the next RMG sector of Bangladesh. It has the potential to be so big that it can single-handedly increase earnings overnight and carry Bangladesh to the next level.” Despite being such a

TANJIM HAQUE

Managing Director & Creative Head, Ecstasy

lucrative industry, its entrepreneurs have to cope with various bizarre issues. One such issue is that of abnormal increases in rent for stores. Landlords demand irrational amounts of rent, and if entrepreneurs refuse to comply, they cut off their power supply or force them to evict. How long can one have the will to go on if no one around them is willing to show support? On the other side of the story, consumers are playing a vital role. They act as the backbone of the industry as a huge portion of what is to be produced by the brands depends on their tastes and opinions. Predicting how these tastes and perceptions might change turns into one of the biggest challenges for the industry. A huge portion of the consumers is sometimes a couple of seasons behind in the fashion scene. The pioneers of the industry are usually on par with their foreign counterparts which means they will try to develop products which are in style and relatable, but because the consumers are not up to date with the

latest trends, new products often receive questionable reactions. Tanjim recalled a particular incident. “When we introduced colorful chinos to Bangladesh, consumers did not receive it too well. They were hesitant to embrace it since they had not seen anything like this before. They did not know how to react to a product which was trending in some of the most fashionable cities in the world.” At times, consumers are skeptical about new trends being introduced by local brands until they see Bollywood or Hollywood celebrities embracing them. Another issue is the fact that consumers mostly look at the price and not the quality. Tanijm regretfully states, “If we make a cotton shirt and someone else makes the same using polyester, people will opt for the polyester shirt as it would be cheaper.” These factors end up discouraging a lot of fashion entrepreneurs who are persistently working to improve the country's image. With the right support, the fashion industry can be used for positive nation branding which could potentially change

Bangladesh’s image. The brands here sell identical products to their foreign international counterparts. Their products are cheaper only because they exchange fewer hands than the products of a foreign country and yet consumers choose to buy international brands over local ones. It is sad really because products of Ecstasy, a brand established in Bangladesh are highly appreciated abroad. Furthermore, most countries showcase their products through mass media, for instance European movies heavily feature cars made by Mercedes and Audi whereas American films show Chevrolet and Ford. This subconsciously convinces consumers to buy cars made by the companies as mentioned earlier as the media has a lot of influence in out tastes. People fail to appreciate the countless hour's people like Tanjim Haque spend to develop their products. In addition to that, there is also very little scope for segmentation as most brands focus on making products that are profitable and can be catered to everyone in general. “In America, some people have various lifestyles, and some brands make products specifically for them. For instance, if someone is into sailing, there is Nautica who specialize in making apparel for just them. We do not have the scope of doing that in Bangladesh because people have a consensus about the way they dress and do not know much beyond that. If we introduce tuxedos, most people wouldn’t know on what occasion to wear them, although I must admit, there has been progress in recent times.” But the fact remains that despite being so densely populated, segmentation will not be a practical option as it won’t be able to attract enough people. Designers in this country are not allowed to think freely and outside the box, as they are forced to prioritize profitability over passion. So in short, the fashion industry is not all rainbows and butterflies, it is comprised of blood, sweat, and tears. The silver lining to all the struggle is that as long as there are people like Tanjim Haque, we can we can be assured that there are people still working for the advancement and betterment of the local industry. The next time you go shopping, think how much you will benefit our fashion industry if you choose to purchase from a local brand instead of an international one. A little contribution will go a long way. www.ibtbd.net

Corporate Wisdom

By Syed Apanuba Puhama

How can attending BUSINESS WORKSHOPS or seminars can help with your professional development in the marketing arena?

The Seminar Solution

GOING BACK TO BASICS

Entering the marketing industry can seem unnerving to beginners. The lack of experience and required knowledge can easily cause someone with a fresh take on the industry to feel slightly discouraged. Luckily marketing seminars have proven to be highly beneficial in such situations. Various workshops around the world offer introductory topics and hire experts to teach new and potential business owners everything they need to know regarding basic marketing techniques, public relations, digital strategies and tactics that prove to be profitable in business.

The heart of any business organization lies in its internal marketing and communications. The concept of marketing can include advertising, public relations, promotions, and sales, all of which are vital for a successful business. In today's fast-paced society regulated by the laws of consumerism, the basic act of introducing and promoting a product or service to potential customers is proving to be troublesome. In such cases, the solution is simple: attending seminars or workshops. Marketing seminars are events that offer opportunities to enhance marketing knowledge among corporates with the help of industry experts. There are numerous ways in which these events can change a person's perspective regarding the marketing industry for the better.

KNOWLEDGE IS POWER

Seminars can be considered a vital source of knowledge and development, and are not just for entrepreneurs. Marketing professionals are also welcome to enhance and update their existing takes on the industry. With the help of experts speaking at the events, new techniques and innovations are presented, along with facts, figures and improved marketing methods. Attending a marketing seminar or conference exposes professionals and speculators to differentiated information and the breakdown of complex concepts into ideas that are easily perceived. Additionally, participating in a marketing seminar also allows you to interact with the speaker by voicing concerns or asking informative questions, further enhancing knowledge and understanding.

C O R P O R A T E T H E

THE LANGUAGE OF LEADERSHIP

In any business or startup, being an active leader is vital. That being said, marketing events enable its attendees to witness the leadership skills of successful and inspirational personalities firsthand. Direct communication with these influential top earners in the industry can be highly effective in helping newcomers become successful leaders.

SOURCES: 1. “The Purpose of Marketing Seminars” – Chron.com 2. “Three Overlooked Benefits of Attending a Seminar” – InfoBarrel.com 3. “3 Reasons Why You Should Attend Industry Conferences, Seminars And Events” – thecontentmarketingacademy.co.uk

MARKETING SEMINARS ARE EVENTS THAT OFFER OPPORTUNITIES TO ENHANCE MARKETING KNOWLEDGE AMONG CORPORATES WITH THE HELP OF INDUSTRY EXPERTS.

COMMUNICATING TRENDS AND STRATEGY DEVELOPMENT

While organizing these events, the conveners have to consider topics that are current and practical. The expert speakers must discuss latest developments to enhance the performance and the experience of seminar attendees in a dynamic business environment. All this hands-on information is useful for both new and seasoned marketers looking to stay updated regarding emerging trends. Another key objective of marketing seminars is to assist current, and future marketers with market expansions, enhanced sales, and customer service. With the help of experienced practitioners, marketers can learn about generating demand, product development, effective marketing techniques and strategies that are essential when it comes to a successful organization. In these events, the speculators can learn how to acquire new skills and utilize their available resources to achieve their goals.

AN INSPIRATION TO SUCCEED

Being surrounded by people who think alike and generate similar ideas and passion has proven to be effectual in forming new ideas and creating a sense of motivation to succeed. Frequent attendees of marketing seminars and conferences have a much higher chance at thriving in the field simply due to the inspiration gathered with the help of fellow competitors.

W I S D O M

S E M I N A R S O L U T I O N

TO POTENTIAL CLIENTS

Marketing seminars tend to accommodate people of the same mindset and similar goals. Therefore, it is an excellent opportunity to market a business to potential customers. Communicating with people who are interested in the product or service one has to offer can strengthen the marketing skills and grow the business of business owners at the same time. Face-to-face interactions can prove to be much more effective than emails or phone calls. Additionally, hearing potential vendors voice their opinions and perspectives as well as express their interests can be very helpful when utilizing marketing knowledge to attract them as clients.

MEET AND GREET

Marketing events are an excellent way to be surrounded by like-minded people who can not only serve as potential clients but also long-term advisors. Many experienced business owners may provide their insight and wisdom as well as inspire new ideas and suggestions for an organization, helping business growth and success. Due to the number of experienced and intelligent speakers attending, these events serve as a remarkable opportunity to learn directly from the top producers in the company. Attendees interact with these speakers who are industry leaders and can directly benefit from their practical experiences. Communicating with fellow entrepreneurs, socializing and making contacts can be very useful in supporting and growing your business. Interaction is made simple with the help of special events, group luncheons and dinners, and roundtable discussions.

www.ibtbd.net

Interview

Creating New Horizons

TASNEEM OMAR AVA Chief Operating Officer Synergy

As evidential as it may seem, the era of millennials is no longer limited to academics. While a part of this generation is busy procrastinating, others choose to innovate. â&#x20AC;&#x153;Synergyâ&#x20AC;?, a brainchild of three young minds caught the attention of the IBT Team while on the lookout earlier this year. Our team got in touch with Tasneem Omar Ava, a final year student of BRAC University and one of the masterminds behind Synergy, who shared her insight along with the details of their prosperous start-up.

By Ishrat Jahan

What was your inspiration behind Synergy?

Synergy started as a pilot project during our participation in the Seventh Annual HULT Prize session in 2015. Our challenge was to double the income of 10 million people who live in the crowded urban spaces all around the world. We took inspiration from the networking of computers with internet. Since we were dealing with the crowded urban areas, the mobility of the people was a significant barrier. Therefore, to lubricate movement we decided to create a hub, which would connect with the other hubs all around the slums just like computers all over the world, which are connected through the internet. This setting brought the virtual system to reality. We started by joining a group of tailors in this system, who had an increase in their income as they were then sitting at home and selling to a wider marketplace than before. The demonstration of the idea was what made us beat 48 teams and win the Shanghai round. We were determined to go forward with Synergy, regardless of the competition. This motivated us to register the company and launch the pilot.

During the early stages of your startup, how well did you understand what you were doing? What kind of planning and retail strategy did you have?

During the early stages, we conferred upon the Boston round of HULT after Shanghai and got valuable insight from the accelerator program, which made us change the idea a little. Our initial idea of Synergy was for all sorts

of workers in the crowded urban spaces. However, according to the insight we received, investors wanted something specific so, we narrowed it down to particular challenges faced by tailors. We figured out most of the tailors were being exploited by the sub-contractors who connected them to fashion brands. They were working for 16 hours or more at low wages of around $4. Our strategy, after this discovery, was to become an e-commerce platform, which successfully managed to eliminate third party interferences for a focus group we chose to work with. We brought our previous hub system into action, collected products from all the slums, and sent them to the fashion houses. This created a difference as these entrepreneursâ&#x20AC;&#x2122; experienced quadrupled incomes by working for fewer hours. We decided to go for ethical fashion to promote the idea of slow fashion cultures in favor of the workers and came back to Bangladesh with an improved idea to continue our operations. Many investors in the CGI (Clinton Global Initiative) approached us, but we decided to keep being our own investors as two of our core members were still undergraduates.

SYNERGY STARTED AS A PILOT PROJECT DURING OUR PARTICIPATION IN THE SEVENTH ANNUAL HULT PRIZE SESSION IN 2015.

How do you see your company growing in the next five years?

How would you describe your mission and company culture?

Our mission is to promote slow fashion in Bangladesh, as it is still one of a kind. We want to do this by mobilizing trade and increasing the income levels of the entrepreneurs working in the crowded urban spaces. In addition to this, doubling the revenue of the entrepreneurs is at the core of our mission. We follow a strong organizational culture, as our employees and management understand individual responsibilities and try to act under our core values.

MIRZA TANZIM SAMI

Chief Executive Officer (CEO)

Since Synergy is a startup, we do not have any firm plans, considering our idea has been reiterated many times based on its demand. We expect to create a demand for slow fashion in Bangladesh that already exists in countries like USA, Australia and the European countries, in a span of three to four years. Therefore, if we can tap the potential of the slow fashion demand in Bangladesh, Synergy has a bright future ahead, and we are optimistic about it.

What is the biggest risk for your company at this point?

How well did you deal with any failures you faced during the initial phase? The difficulty with any form of startup, at an early stage, is the determination of the founders,

which is quite often unstable. People quickly lose the motivation and passion for going forward with what they have started after a number of defeats. I would not say our experience was different, except that we continued to remain a team of three passionate business enthusiasts from four.

AHMED RIFAT

Chief Marketing Officer (CMO)

Since Bangladesh is still new to the slow fashion ethical theme, a continuation of our operations is still near the risk boundary. However, we are positive about a change in the demand, since much of our lifestyle is influenced by what happens overseas thanks to globalization.

Inside Out

Impacting the Future By Zayeema Sarwar

Analyzing a global growing trend which is becoming critical for emerging markets, and will be crucial for the future of Bangladesh.

mpact Investment was first coined in 2007 by the Rockefeller Foundation. According to GIIN (The Global Impact Investing Network), impact investments are “investments made in companies, organizations, and funds with the intention to generate social and environmental impact alongside a financial return”. As a result of ecological and social needs, impact investing is crucial in emerging markets. Impact investment is becoming more and

more important for Bangladesh as it moves towards becoming a middle-income country and donor funds that it previously received are now being channeled towards other nations. This step will primarily impact traditional for-profit companies which work towards solving a social problem. It differs from traditional investment because of its inherent need for a blended return – there has to be a positive benefit to the society. ImpactBase is an online database where investors go to find impact investment opportunities, which are managed by GIIN. Despite this, assessing the marketing size cannot yet be quantified because impact investment is still a relatively new term and it is used to describe investments made in a

variety of sectors and regions. For financial returns, the focus is on the main financial metrics such as profit margins and ROI (return on investment) but the social impact needs to be paid critical attention, it needs to be monitored and recorded. It needs to not only have the right intentions or an inbuilt sense of purpose – it is equally important to be able to translate those into a standardized measurement. Funds collect self-reported data or use impact data platforms such as GIIRS as portals for investees to report on impact. There is also a question of reliability for the information especially if it is self-reported. Impact measurements do help them improve upon how deals are

I N S I D E

O U T

I M P A C T I N G T H E F U T U R E

IT DIFFERS FROM TRADITIONAL INVESTMENT BECAUSE OF ITS INHERENT NEED FOR A BLENDED RETURN – THERE HAS TO BE A POSITIVE BENEFIT TO THE SOCIETY.

The writer works at NewsCred as a Customer Success Manager and can be reached at zayeema@newscred.com.

sourced all the way to the deals being selected. They can also contribute to ensuring that investors and company activities are aligned to their purpose. Businesses can also rely on IRIS metrics catalog; the IRIS is an initiative of GIIN since 2009. It focuses on increasing the scale and effectiveness of impact investments. Bangladesh hosted its first summit on impact investment in Bangladesh in 2016 initiated by Build Bangladesh and organized by Bangladesh Brand Forum; it was designed to focus on “Driving the Sustainable Agenda” and developing an understanding of the global impact investing market and what that means for the future investments in Bangladesh. Investors are optimistic about prospects in Bangladesh; they firmly believe that the private sector can be a force for good. Bangladesh has a growing and diversifying economy, with a sizeable labor market and a large potential consumer market. There is a diverse range of investors operating in Bangladesh, the key for impact investment is to bring in investors and not donors, such as fund managers, DFIs, foundations, HNWIs, and family offices as well banks and financial institutions that have diversified. According to the GIIN Advisory Team, the one area where Bangladesh does not seem to have any impact investments is housing. However, there is a heavy focus on Microfinance, and Food and Agriculture. BRAC is entering the impact investment market with plans to change its financing strategy entirely and to become sustainable in the long-run. The aim for BRAC is to become a self-reliant enterprise allowing it to continue creating an impact

regardless of changes in its donor funding. BRAC has actively invested in a good number of private companies such as BRAC Bank, bKash, Maya, IPDC and a few others. Grameen Foundation focuses on financing institutions that focus on improving livelihoods in the “last mile” – the difficult to reach rural areas that more often than not include the poorest people, Social Impact funds that help social businesses gain access to capital that is beyond their reach, and Fairtrade Access Funds that allow farmer’s cooperatives and associations to invest in processing facilities and new equipment. They also have joint ventures where they pair up with like-minded companies to have a greater impact. IIX (Impact Investment Exchange) work to bridge the gap between finance and development and they are a leader in the impact investment space in Asia. Durreen Shahnaz, a Bangladeshi and founder of IIX, was elected as a 2017 Business for Peace Award honoree. In April 2011, Shujog (which was recently renamed as IIX Foundation) – the sister entity of IIX sent its research team to Bangladesh to assess the possibility of the impact and its mission. To quote Durreen, “If we are going to achieve an equitable and peaceful society, it is imperative for us to have a financial system that is inclusive and works for all. Thus, crazy as it may have been, I committed myself eight years ago to revolutionizing capital markets to promote equal and sustainable growth worldwide. It was a ‘quixotic dream’ equivalent to boiling the ocean of financial change. Well, that quixotic dream is a reality now and that ocean is lukewarm, so we are

definitely getting there!” Multinational companies like SEAF (Small Enterprise Assistance Funds) decided to invest in small and medium enterprises (SMEs) in Bangladesh in June 2010, to provide them with structured capital and quasi-quality investments. SEAF was the first finance company to focus exclusively on providing growth and working capital to promising SMEs in Bangladesh. SEAF is now evaluating an opportunity to invest in an Ob-gyn facility in Southeast Asia, the completion of this would have create jobs for nurses and health technicians, improve the skill level of the technicians through the company’s training programs. Impact investing also appeals to younger generations who want to give back to society. As more and more people realize that they want to contribute to the world and have a sense of purpose, more companies will feel the need to engage in social responsibility. The future for impact investment looks bright, in the period between 2014 and 2016 – sustainable and responsible impact investing assets have grown by 33% in the United States, and there is still room to grow. There is now a client demand – people want to go beyond maximizing profits in exchange for taking a risk and how we can address through investment. And we see this from wealthy individuals as well as ordinary citizens who are concerned about socio-economic issues, issues about the world such as climate change.

Climate Change

The Reality of Water Scarcity in Bangladesh

By Mehrin Karim

Water is one of our most critical resources in the world– even more important than oil. A recent report by the Intergovernmental Panel on Climate Change (IPCC) states that global warming will lead to “changes in all components of the freshwater system.” They concluded that “water and its availability and quality will be the main pressures on, and issues for, societies and the environment under climate change.” Scientists and environmentalists are warning that water scarcity could become a grave issue as it hinders economic growth, leads to forced migration and creates significant and uneven consequences across the globe. Global warming has already begun to show how it can impact the world’s water. Countries such as Bangladesh are likely to be hit hard by the environmental phenomenon, which will bring abnormal weather conditions such as droughts, salinity intrusion, etc. which will lead to severe water shortages, contamination and affect agricultural output and food

security. In 2009, Cyclone Aila hit Bangladesh and damaged most its water infrastructures and contaminated its surface water sources in the country's South Western region. In most areas, tube-wells don’t work because of salinity in the shallow and deep aquifer levels, leaving most people dependent on surface water for drinking and cooking. Although seven years has passed, the government is yet to restore

freshwater sources in the country’s coastal belt. This is primarily because of lack of water flow in rivers, which contributes to the rise of salinity. A World Bank report in February 2015 indicated that climate change is likely to increase river salinity leading to shortages of drinking water and irrigation and significant changes in aquatic ecosystems in the Southwest coastal areas during the dry seasons by 2050.

C L I M A T E

C H A N G E

T H E R E A L I T Y O F WAT E R SCARCITY IN BANGLADESH

CLIMATE CHANGE WILL LIKELY LEAD TO:

P H O T O G R A P H B Y D I N M S H I B LY

• Prolonged dry periods and severe drought. There will be increased demand for water for agriculture, primarily for irrigation. Some research estimates an over 40% increase in irrigated land by 2080. • Increased water demand for the hydration needs of billions of farm animals due to higher atmospheric temperatures. • Increased quantities of water required for industrial cooling due to increased atmospheric and water temperatures. • Increased water temperatures, leading to more algal and bacterial blooms that further contaminate water supplies. • Increased internal migration.

The writer is a Senior Research Associate working at Policy research Institute and can be contacted at mehrin.karim07@gmail.com.

Increased rural to urban migration has placed significant pressures on urban food and water resources. Urban groundwater is being extracted faster than it is being replenished. In Dhaka, 87% of water used each year is obtained from groundwater resources, and although many homes have access to this resource, it is unsustainable in the long-term. In 2010, troops were called to guard pumps during an acute water shortage in Dhaka. The deficit was caused by a lack of rainwater and was exacerbated by regular power outages. This highlighted the heavy dependence on groundwater resources and the urgent need for investment in water infrastructure to meet future demand. More sustainable water management is required to facilitate

migration from rural to urban areas. Declines in water availability and quality can increase competition for clean water. In water-scarce regions, tensions can arise between businesses and local communities, particularly in developing countries where local populations often lack access to safe and reliable drinking water. Community opposition to industrial water withdrawals and perceived or real inequities in water usage can emerge quickly and affect businesses profoundly. Local conflicts can damage brand image, or, in rare instances, even result in the loss of companies’ license to operate. In Kerala, India, for example, both PepsiCo and Coca-Cola’s bottlers lost their licenses to use groundwater, after a drought spurred community dissension and increased competition for local aquifers. Water scarcity is driving shifts toward full-cost pricing aimed at providing economic incentives for efficient water use. In many places, artificially low water prices are rising as subsidies are phased out. One would expect urban and higher income populations to spend more than the rural and lower-income people on food, housing, water and sanitation. But for drinking water at least, the scenario in Bangladesh’s coastal districts is quite the opposite. Dhaka Water Supply and Sewerage Authority (WASA) provides water for household use to the city residents at the rate of Tk 8.49 for per unit (1,000 liters). Khulna WASA charges Tk 4.50 for the same volume of water to its city’s inhabitants. However, people

living 20 km south of that town have been spending Tk 10 for 20 liters of drinking water as they have to remove salt via treatment plants. It is the same scene in most places across the 19 coastal districts. The salinity in land and water defines the lives of humans and all other creatures. To ease the situation and provide fresh drinking water to the coastal population, different government and non-government organizations have been setting up various types of interventions. These include excavating ponds, creating pond sand filters (PSF) and reverse osmosis filter technology. Bangladesh needs to be fully prepared to tackle climate change and the major issues that will come with it, water scarcity and salinity intrusion being the primary sector that will be affected. While it is essential to understand macro changes in South Asia’s climate and water ecosystems, good water management also requires an understanding of local dynamics in areas dependent on river water, including grassroots perceptions of water-related challenges and modern views about their causes. The importance of public consultations is often acknowledged, but the consultation processes are challenging. The involvement of water user associations and NGOs in public discussions or as non-voting participants in institutional bodies can significantly enhance the quality of decision-making as well as the implementation of policies for sustainable integrated water management.

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Beyond the Business

Not So Sugar Quoted

“Even if the Paris Agreement were implemented in full, with total compliance from all nations, it is estimated it would only produce a two-tenths of one degree – think of that; this much – Celsius reduction in global temperature by the year 2100. Tiny, tiny amount.” t

Donald Trump, President of USA.

Source: US Presidents Speech on Paris climate accord

Some remarks from key figures during the recent development where President Donald Trump announced the USA’s withdrawal from the Paris Climate Agreement:

By Nasirra Ahsan “To all scientists, engineers, engineers, entrepreneurs, responsible citizens who were disappointed by the decision of the United States, I want to say that they will find in France a second homeland, I call on them: Come and work here with us — to work together on concrete solutions for our climate, our environment. I can assure you, France will not give up the fight.” t Emmanuel France.

“The extremist Trump administration clearly has no idea the vast majority of people support the Paris Climate Agreement, nor do they seem to care that Americans will suffer the consequences of this fossil fuel giveaway. This is a decision only someone in a billionaire’s bubble would make. p Annie Leonard, Greenpeace USA Executive Director. Source: Greenpeace USA Executive Director. Greenpeace website.

Macron, President of

Source: French Presidents Speech on Paris Climate Agreement

“This Paris climate accord is not just some accord or the other. It is a central accord in defining the contours of globalization. I believe that the issue of Paris is so important that one simply can’t compromise on it” t Angela Merkel, Chancellor of Germany. Source: German Chancellors Press Conference regarding USA pulling out of the Paris Climate Accord.

"We believe that abiding by the accord, without significant changes, would have substantially impacted the US economy, increased electricity costs and required the power sector to rely on less diverse and more intermittent energy.” p Peabody Energy, Spokesperson. Peabody Energy is the largest listed US coal producer. Source: Twitter.

International

THE UNITED STATES HAVE PULLED OUT OF THE PARIS CLIMATE AGREEMENT. HOW WILL THIS AFFECT THE WORLD?

By Shaikh Ashfaque Zaman

If people in glasshouses shouldn’t throw stones, the people creating the greatest gas emissions shouldn’t throw banter. On June 1st, President Trump decided that the USA, the world’s largest carbon emitter, would be leaving the Paris Climate Agreement. The president announced that he would leave the 2015 agreement at the Rose Garden on July 1st citing, “I was elected to represent the citizens of Pittsburgh, not Paris.”

I N T E R N A T I O N A L T H E A M E R I C A N S U N D O E S N ’ T S E T I N P A R I S

The agreement was signed by 195 nations to collectively battle rising temperatures which are inflicting the world’s poorest countries such as Bangladesh and parts of Africa. Contrary to President Trump’s allegations, the agreement does not require nations to allocate funds to combat climate change; it makes each country aware and active regarding the level of carbon emission that they are generating. The USA is only 6% of the world’s population.

However, it is responsible for 33% of the world’s total pollution making the matter much more pressing for the most powerful nation in the world. Furthermore, the alternative energy sector is exponentially growing and is predicted to be a $6 trillion dollar industry by 2030. Trump’s act not only goes against an entirely new job market, but it also counteracts the more than 600 American investors and businesses that

have signed an agreement to become more environmentally conscious in recognition of the Paris Agreement. Markets such as fossil fuels are losing jobs as alternative energy sources such as the solar industry are being recognized as more viable and sustainable sources. Therefore, the president’s “concern” for the energy sector seems to come from the small focus on the present rather than the larger scope of the future.

COLLUDED ON CLIMATE During his speech on climate, Trump never once mentioned global warming; he proved the extent of his knowledge about climate change.

“THE COST TO THE ECONOMY AT THIS TIME WOULD BE CLOSE TO $3 TRILLION IN LOST GDP.”

Two representatives of the main pollution generators of the USA, the US Chamber of Commerce and the American Council sponsor the report that the president has cited. The report fails to mentions any of the long-term benefits and the cost-saving mechanisms that will reduce the cost of energy consumption in the future.

“IN SHORT, THE AGREEMENT DOESN’T ELIMINATE COAL JOBS. IT JUST TRANSFER THOSE JOBS OUT OF AMERICA AND THE UNITED STATES, AND SHIPS THEM TO FOREIGN COUNTRIES.”

Alternative sources of energy have cut the carbon footprint of the USA by 12%. Considering that there are cheap and responsible drilling techniques to procure oil and gas, the Trump’s administration blind eye to making companies responsible for their methane emissions seems to be the contrary.

“EXITING THE AGREEMENT PROTECTS THE UNITED STATES FROM FUTURE INTRUSIONS ON UNITED STATES’ SOVEREIGNTY AND MASSIVE FUTURE LEGAL LIABILITY.”

“BEYOND THE SEVERE ENERGY RESTRICTION INFLICTED BY THE PARIS ACCORS, IT INCLUDES YET ANOTHER SCHEME TO REDISTRIBUTE WEALTH OUT THE UNITED STATES THROUGH THE SO-CALLED GREEN CLIMATE FUND- NICE NAME WHICH CALLS FOR DEVELOPING COUNTRIES TO SEND $100 BILLION TO DEVELOPING COUNTRIES ALL ON TOP OF AMERICA’S EXISTING AND MASSIVE FOREIGN AID PAYMENTS.”

The president fails to recognize that the USA may be a sovereign nation but its industries will not flourish simply within the nation. The coal industry is dwindling in demand as a result of natural gases and alternative energy practices that are being implemented across the globe. So you can’t exactly heighten the demand for a dismal product through isolation.

PHOTOGRAPH FROM UNSPLASH.COM

“YET, UNDER THIS AGREEMENT, WE ARE EFFECTIVELY PUTTING THESE (ENERGY) RESERVES UNDER LOCK AND KEY, TAKING AWAY THE GREAT WEALTH OF OUR NATION – IT’S GREAT WEALTH, IT’S PHENOMENAL WEALTH.”

With the consideration that this is a legally nonbinding contract, the result of which would probably lead to the shake of the head or nod of disapproval from other nations. The president seems to be taking the matter much more seriously than the commitment the USA has made in curbing their emissions by 28%.

Under the Obama administration, the USA itself pledged to give $3 billion towards the agreement, and it has only given a third of that. Moreover, this amount would pay for less than 7% of the proposed wall that Trump is keen on building.

Considering the taxpayer can spend $100 million on Melania and Barron staying in NYC for the rest of the year, Trump’s finances regarding the nation are not as savvy as they are for his businesses.

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I N T E R N A T I O N A L T H E A M E R I C A N S U N D O E S N ’ T S E T I N P A R I S

THE AGREEMENT WAS SIGNED BY 195 NATIONS TO COLLECTIVELY BATTLE RISING TEMPERATURES WHICH ARE INFLICTING THE WORLD’S POOREST COUNTRIES SUCH AS BANGLADESH AND PARTS OF AFRICA.

EMISSION OF CO2 WORLDWIDE

30 billion metric tons

BETWEEN 1850-2014

Rest of world

India China

Other developed

Russia

European Union 5

Developed economies Other countries

United States

1850

1900

1950

2000

E M E R G I N G AT T H E E I F F E L President Trump’s withdrawal from the Paris Agreement has brought the matter to a much wider platform. Nevertheless, the agreement is one that set motion to significant innovation and attention to reduce the irreversible detriments of climate change.

MITIGATING THROUGH MEETINGS Though the first conference to review the plan was to take place in 2023 and future decisions will be made every five years after, numerous nations have called for a conference in 2018 to understand exactly how to tackle gas emissions.

TACKLING TEMPERATURE

FINANCING THE FORECAST

STRATEGY SPECIFIC

ECONOMICS OF ENERGY

The goal is to ensure that the global temperature does not exceed more than 1.5° C per year. This would suppress the effects of climate change to a time before the world had industrialized.

The agreement calls for all developing nations to support developing nations with a collective amount of $100 billion. The financial assistance will be reviewed in 2023, when a new target may be set.

Each country that is participating in the climate agreement is allowed to create their individual plan for reducing greenhouse gas emissions. This will also be reviewed for efficacy and applied amongst other nations.

The Paris convention aims to make sure that renewable energy advances. For example, photovoltaic energy prices have dropped by 60% or more throughout many regions. The agreement seeks to support these ventures to upscale and optimize.

P H O T O G R A P H B Y D I N M S H I B LY

Sports

What

Brexit

to the

Premier

By Sheahan Nasir Bhuiyan

rexit, which divided the UK like nothing we’ve seen before, has exacerbated the rift between the FA and the Premier League. The main issue between the two parties is the work-permit regulations being negotiated in triggering Article 50. Each will try and put their stakeholders’ interests first. Whatever happens in the negotiations will not only have a tremendous impact on the future of English football but in the global footballing landscape as well. To fully understand why they would go against each other, it is important to know the relationship dynamics between them. First and foremost, the Football Association or the FA and the Premier League are independent

AS THE UK GOVERNMENT NEGOTIATES ARTICLE 50 WITH THE EU, WE LOOK AT WHAT IT WOULD MEAN FOR THE WORLD’S RICHEST FOOTBALL LEAGUE

organizations. The break-up happened in 1992 when clubs in the old First Division decided to create a break-away league to take advantage of lucrative television deals. The 20 clubs in the Premier League are equal shareholders with a vote each on determining rules and governance. The FA is a special shareholder in the Premier League who has veto power when new rules are adopted. The FA’s goal is to ensure England is successful on the international stage and

will do

English

League

therefore, they want to create conditions for English players to prosper and thrive in the Premier League. The Premier League clubs, on the other hand, want to build the strongest possible squads irrespective of the nationalities of the players to compete in arguably the world’s most competitive league. International players from non-EU countries or the EEA (European Economic Area) are currently required to obtain an endorsement from the FA before applying for a work permit. To automatically qualify for the endorsement, the FA needs players to participate in a minimum number of games for the national team in the two years before the time of application. If a player does not meet the specified criteria, they are subject to a points-based system which takes into account the transfer fee, the player’s salary, relative to others in the league, and the level of his previous club in domestic and international competitions. EU/EEA players have the freedom of movement and so are not

PHOTOGRAPHS FROM INTERNET

PROVEN TOP PLAYERS LIKE GERMAN REGULAR, MESUT OZIL FROM ARSENAL OR DANISH REGULAR, CHRISTIAN ERIKSSEN FROM TOTTENHAM HOTSPURS ARE HIGHLY UNLIKELY TO BE AFFECTED, BUT PLAYERS WITH A LACK OF INTERNATIONAL CAPS MAY NOT BE ABLE TO PLAY IN THE PREMIER LEAGUE. required to fulfill these criteria. With Brexit looming, however, the UK government will have to negotiate work permits for EU and EEA citizens, as Prime Minister Theresa May has insisted that the points-based system will not apply to EU/EEA citizens. With nothing set in stone, The FA will try and influence the decision so that only the best EU and EEA players get work permits which will give English players a chance to thrive in the league. Premier League clubs, however, will seek exemptions from any such rules as they wish to get players at all levels. If the FA have their way, then the number of European players playing the Premier League will be significantly impacted. Proven top players like German regular, Mesut Ozil from Arsenal or Danish regular, Christian Erikssen www.ibtbd.net

from Tottenham Hotspurs are highly unlikely to be affected, but players with a lack of international caps may not be able to play in the Premier League. This means French player N’golo Kante, who was instrumental in both Leicester City’s Premier League triumph in 2016 and Chelsea’s in 2017, would not have been eligible to play. Such a scenario will have an enormous impact on the global footballing landscape as well. English teams currently scout and recruit hundreds of under eighteen European players and bring them up through their academies. With Brexit, they will no longer be able to do so, and other European clubs will have additional time for recruitment from Europe. As a result, while English clubs focus on talent only in the UK, European clubs can scour the whole of Europe to find the best players from an early age. It could so happen that by the time Premier League clubs can sign a European player, the player may command a substantial transfer fee. Even though Premier League clubs are some of the richest in the world, the lower teams in the league may struggle to obtain even older players because of the inflated fees. Premier League clubs, in general, can expect their entire recruiting system to change. Acquiring young talent and nurturing them is a relatively cheap way for teams to build their squads. Not every acquisition has to make it to the first team to reap the rewards. Using N’golo Kante’s example again, he was signed by

League clubs, especially those in the lower half, would lose their competitiveness. The Premier League will face stiff competition from other leagues, not just in Europe but in the United States and even China, where massive investments are being made.

ENGLISH TEAMS CURRENTLY SCOUT AND RECRUIT HUNDREDS OF UNDER EIGHTEEN EUROPEAN PLAYERS AND BRING THEM UP THROUGH THEIR ACADEMIES. WITH BREXIT, THEY WILL NO LONGER BE ABLE TO DO SO, AND OTHER EUROPEAN CLUBS WILL HAVE ADDITIONAL TIME FOR RECRUITMENT FROM EUROPE.

Leicester City for a reported £5.6 million. He was then sold to Chelsea a year later for £30 million. It's an important mechanism for clubs especially in light of UEFA’s financial fair play regulations. What makes the Premier League the best, and the richest league in the world is the competitive nature of the league. Most other European leagues eventually boil down to a two-horse title race. The Premier League is the only competition where even teams of Liverpool and Manchester United’s caliber have to compete for a top four place. At the start of the 2016/2017 season, SIX clubs were in contention to win the title. If player restrictions are imposed, then there is a very strong possibility that Premier

It may be a while before any changes are actually seen, or be seen at all. The results of the UK general election on June 8th, 2017 will have a huge impact on Brexit negotiations (which may end up getting postponed). Before anything happens, there are certain facts which have to be taken into consideration: 1. The Premier League is the world’s richest and most competitive league. 2. The Premier League makes a huge contribution to the UK economy. 3. The last time the English national team won an international competition was in 1966. 4. The English team did not win anything since even before the formation of the Premier League. 5. A hard Brexit will allow more young English players to come through in the Premier League. 6. A hard Brexit may reduce the competitiveness of the Premier League by inhibiting the lower clubs’ ability to spend. 7. The Premier League will face stiff competition for players from Europe and beyond. 8. The Premier League will face competition for revenue from other European leagues.

Both the FA and the Premier League have valid concerns and both would want to protect their interests. Whatever is decided has to be a balance between the FA’s wishes and the Premier League’s needs.

The writer is a Deputy Manager for Communications at BRAC International. He can be reached at sheahan.bhuiyan@brac.net.

Tech updates By Abhijit Asad

Cortana in Every Machine

T H E V O I C E O F THE FU TU R E ?

If you are a smartphone user, chances are high that you are familiar with Apple’s Siri and Android’s Google Now (or, for newer devices, Google Assistant). The arrival of voice-operated digital assistants caused paradigm shifts in the global smartphone scene, and Apple has gone on to integrate Siri in its macOS operating system for computers as well, but not before Microsoft introduced its own digital assistant, Cortana, as an integral part of its Windows 10 operating system and the less-known Windows Phone-based smartphones. Over the years, Cortana has proven to be a formidable voice assistant that is capable of being better than Siri and almost as good as Google’s mighty new Assistant.

However, Cortana’s run is just beginning, judging by Microsoft’s recent announcement, which promises that Cortana will be an integral part of the Windows IoT Core. In layman’s terms, it means that Cortana will be a part of many upcoming smart devices that are compatible with the ‘Internet of Things’, an abstraction layer that would allow said smart devices to communicate with each other and operate in synergy. In other words, the science fiction tropes of people providing verbal instructions to their houses and everything in it, including smart toasters, fridges, AC units etc. is suddenly a lot closer to becoming a reality. With Microsoft’s blessing, manufacturers such as HP are also building standalone ‘smart speaker’ terminals for Cortana, which would be able to hear, recognize and execute voice commands from up to 13 feet away. The first Cortana-powered devices are expected to show up later this year.

H Vega Rising

Semiconductor giant AMD’s new range of Polaris graphics cards, the RX series, received a great deal of praise from critics and users alike. Compared to their predecessors, the RX graphics cards not only performed solidly across the board under heavy loads, but they also did so very efficiently, exhibiting thermal emissions that were far more modest. The RX 400 series cards even received a slight refresh this year in the form of the RX 500 series, which offered even better performance.

The RX 400 and 500 series cards are competing with low- to mid-range GPUs from AMD’s archrival Nvidia, with the top-of-the-range RX 480 and RX 580 competing with Nvidia’s GTX 1060. However, AMD has been working on a new flagship card — the RX Vega — which is expected to best the much more powerful GTX 1070 and GTX 1080 graphics cards, and maybe even catch up to the mighty GTX 1080 Ti and GTX Titan Xp cards, which are the most powerful consumer-grade GPUs on the market right now. Promising over 12.5 teraFLOPs of raw performance and a massive 16 GB of memory, the RX Vega is targeted to perform fluidly at resolutions as high as 4K, while drawing approximately 250 watts of power at peak load, which is par for the course. However, it has been hinted by Raja Koduri, AMD’s Senior Vice President and Chief Architect, that the first Vega card, due to show up this July, would be targeted more toward enterprise use rather than general consumer markets, which would receive a Vega (or Vegas?) in due time.

BRINGING MORE POWER TO YOUR SCREENS

www.ibtbd.net PHOTOGRAPHS FROM INTERNET

UP iMac Goes Pro APPLE’S NEW POWERHOUSE In a rather surprising move, instead of performing a much-needed refresh of their acclaimed Mac Pro line of computers. Apple has launched a new computer called the iMac Pro, which retains the svelte and minimalistic appearance of the iMac range (at the cost of upgradability, of course, but with specs such as these, upgradability would not exactly be at the top of a prospective buyer’s list of priorities), while boasting beefy specs and high performance. The iMac Pro is not going to come cheap, with prices starting at $4,999, but it should be noted that this is hardly comparable to regular iMacs. The iMac Pro sports a stunning 27” 5K display, a server-grade Intel Xeon CPU (with up to 18 cores), at least 32 GB of RAM, and a new Vega GPU from AMD among its most notable features. Aside from four USB-C Thunderbolt 3.0 ports, the iMac Pro has four

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regular USB 3.0 ports and even a 3.5 mm headphone jack, ensuring plenty of support for ‘legacy’ devices (at least in Apple terms), which is a surprisingly open-minded decision, considering Apple’s questionable design calls as of late. However, Mac Pro fans should not feel left out, because Apple has stated that the iMac Pro is not a replacement for the Mac Pro, which will be receiving a refresh at an unspecified time in the future. The upcoming Mac Pro would also feature modular expandability, which used to be a major feature in earlier iterations of the Mac Pro before the unexpandable ‘trashcan’ design of the current-gen Mac Pros.

DAT

In The Wake of Digital Destruction As if regular computer viruses and spyware were not bad enough, waves of a specific type of malware called ‘ransomware’ have recently started to appear. These programs, upon infecting a computer, encrypts its entire file system and renders its contents inaccessible. While holding the files hostage in such a manner, the program demands actual monetary payment to be made (usually through some form of cryptocurrency such as Bitcoin) to the creator of the malware, and only releases the files upon confirmation of the payment. The WanaCry ransomware was the latest ransomware to cause major worldwide damage, infecting more than 230,000 computers in over a hundred nations and locking up their contents. Many of

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these computers were integral workstations of major companies, the operations of which ground to a halt because of this terrible setback. The ransomware operated by exploiting a security flaw of Windows that was officially patched by Microsoft through updates, but as many users neglect to install operating system updates, the malware got through in many cases. This was one of the biggest instances of mass cyber-attack in recent years. Luckily, the spread of WanaCry was greatly slowed down by the action of a young computer researcher from Great Britain, who THE DANGEROUS RISE discovered a ‘kill switch’ inside the malware’s code, OF RANSOMWARE ON which had the program THE INTERNET periodically attempting to access a particular website, which did not exist, and it seemed that the malware would deactivate itself if a connection was established successfully with the site. To test the hypothesis, the researcher bought the domain name and set it up on a remote server, and it caused the malware to be deactivated right away in infected machines around the world. However, the researcher warned that later versions of the malware may appear without the website check mechanism in place, and advised everyone to install operating system updates in order to prevent any further damage from occurring.

Breaking the Drone Code By Syed Apanuba Puhama

henever we hear the word ‘drone’, our minds instantly picture missiles, battlefields, and destruction. However, in recent years, drones are being used in ways that have nothing to do with the military. They are becoming increasingly popular in commercial, scientific, agricultural, recreational, and

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other fields. Drones are, in the simplest terms, aircraft without a human pilot on board. They are either operated by people with remote controls, or by independent methods using onboard computers. The term ‘drone’ is mostly utilized by the general public and was coined about the resemblance of the sound of these aircraft to that of the male bee. In today’s world, drones are most commonly used for aerial photography. Scientists have recently started using drones to accumulate better pictures and footage for scientific research, such as pictures of lava lakes which would normally be too hot to go near. Nevertheless, numerous interesting and practical new methods to utilize these aircraft are being discovered almost every day. In recent news, Amazon, an internet-based retailer, has revealed its ‘Octocopter’ package delivery project. The company is testing drones that can deliver items in no longer than an hour after the online purchase. Amazon isn’t the only major

organization exploring the usage of drones to make local deliveries. Companies like FedEx, DHL and Domino’s also seem to be looking into the matter. With every new and revolutionary technology, comes equally terrifying drawbacks. Due to the sudden popularity of drones, and all the newly opened possibilities of package delivery, there were countless reports from around the world of drones being used to smuggle illicit goods onto prison grounds. Corrections officials from the United States, Canada, Russia, Thailand, Australia, England, and Greece have all reported an increase in the last few years of drones flying over penitentiary walls to deliver items such as cigarettes, drugs, and weapons to inmates.

In regards to the growing popularity, only a few hundred people worldwide have invested in drones, but due to more opportunities for commercial usage of these aircraft, statistics suggest a rapid increase of these machines in the sky. Aerial photography and package delivery are among the common uses of drones, but there are several modern applications these unmanned vehicles are excelling in. Here are five uses of drones you didn’t know existed:

CHASING TORNADOES

The best thing about drones is that they can travel to places where nobody ever could, without risking human life. This is why NASA, the National Oceanic and Atmospheric Administration (NOAA) and Northrop Grumman, a global security company, teamed up on a three-year experiment to use Unmanned Aerial Vehicles (UAV), or drones, in other words, to keep track on storms as they evolve. The drones that are being employed in this project can fly for 30 hours and a distance of 17,700 kilometers with their 116-foot wingspans. Drones have already mbeen used to fly above hurricanes Gaston, Hermine, Karl, Matthew, and Nicole. While flying above these storms, the unmanned vehicles send out probes that automatically transmit information about their surroundings. All the data collected and sent out by these drones assist forecasters in predicting the intensity and path of current as well as future hurricanes. The ability to scan large oceanic areas by the drones have also proven to be beneficial for environmental assessment and forecasting. They also help predict and alert emergency personnel about the damage being left by the storm in its wake, without risking lives in dangerously uncertain conditions. In addition to helping forecasters get a better and more accurate understanding of dangerous storms, drones are among the very best tools for performing search and rescue operations and saving lives. Recent research has proven that drones are a quicker way of finding and saving the lives of those affected by

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the storms, with improved outcomes, replacing single house-by-house search and rescue operations. In other news, drones can be used to accurately evaluate changes in the road systems and landscape following earthquakes by creating a 3D map, which can, in turn, inform the rebuilding efforts of major infrastructure such as roads and bridges and the way they have changed or shifted after the disaster. They can also monitor the health of infrastructures like energy plants and oil production facilities well before the area is safe for people to access. In the future, as regulations are made more flexible regarding drone delivery, drones could also be used to deliver clean water, food, and medical supplies to disaster-stricken areas.

THE WAR FOR WILDLIFE

In the global fight against poaching, extra help in the sky could make all the difference. Poaching is a violent crime against wildlife. It is defined as the illegal hunting or capturing of wild animals. Each year, thousands of animals are being killed illegally worldwide. The carcasses, bones, tusks, and horns of the animals being killed are considered highly valuable in the black market. The industry keeps growing on a daily basis, taking the lives and ensuring the endangerment of many animals. Elephants and rhinoceroses are among the many animals vulnerable to illegal trafficking, particularly in the Asian and African regions. Aerial surveillance in remote areas like this is already acting as wildlife police, tracking poachers as well as scoping out cases of illegal fishing, hunting, and burning. Drones are proving

to be more effective at wildlife monitoring and protection than humans. Unlike groundwork by scientists and conservationists, drones can get close to the wildlife without startling them, and collect accurate pictures and data.

FEEDING FUTURE GENERATIONS

Scientists and farmers have recently coined the term ‘precision agriculture.' It can also be referred to as satellite farming and is the agricultural concept of using precise application of inputs and machinery to make production more efficient. In recent years, increases in using drones for agricultural purposes have been recorded. Farmers are using these unmanned vehicles for the benefit of 3D mapping for soil analysis before planning out seed planting patterns. They are also useful in shooting pods with seeds and plant nutrients into the ground, as well as spraying the crops, giving farmers the benefit of quicker plantations, even coverage, and lesser work. With the help of thermal sensors, drones can also accurately identify the areas that are dry or need improvement, and immediately take the necessary steps.

SECURITY PATROL

In today’s world, public safety is of great significance. As a form of air support, helicopters have been used traditionally. However, as technology advances, drones are seen as a quicker, more cost efficient and just as successful alternative. Due to their smaller size and quieter nature, UAVs are used for building security, border patrol, prison surveillance,

civil security, traffic monitoring, and even police and private investigations. The advantage of unmanned systems is that they can provide overviews which require several cameras, enter confined spaces and produce little noise. Usually, drones are also equipped with night vision cameras and thermal sensors, making this system more applicable and effective. They can easily be camouflaged and deployed quickly, with reduced risk to human life in dangerous situations.

THE FUTURE OF SPORTS

As regulations allowing the widespread commercial use of drones are becoming simpler with time, the sports industry are recognizing their potential in terms of live sports coverage. UAVs are manageable and cost effective, and can easily get closer to the scene, making them a much more convenient alternative to cable cameras. Setting up these cable-suspended camera systems can be tough and expensive, and are often limited in their ability to cover all vantage points. The use of drones in live sports coverage is slowly expanding. The drones have recently been utilized in the 2014 Olympics to cover skiing and snowboarding events. The have also been used to film Formula One races, the X Games, cricket matches and football games as well as extreme sports events such as surfing, snowboarding, and skateboarding. Drone are currently exploring the safest and most efficient ways to integrate drones into lives broadcast and revolutionize the way we watch our favorite sports.

Sources: 1. “5 Surprising Drone Uses (Besides Amazon Delivery)” – NationalGeographic.com 2. “10 Incredibly Interesting Uses for Drones– DroneBuff.com 3. “How Drones Help Predict Intenisty, Path of Current and Future Hurricanes” – GovTech.com 4. “Study Says Drones Are Better at Wildlife Monitoring Than Humans” – Treehugger.com 5. “Six Ways Drones Are Revolutionizing Agriculture” – Technologyreview.com

Word of mouth

HAPPENING

In its pursuit to provide high quality footwear to its valued customers, Apex has inaugurated its 230th outlet located near Adorsho School, Mirpur on June 8, 2017. Their outlets have been designed to enhance the customer experience as assuring a memorable shopping experience is of utmost importance to Apex. In this month, 17 more new outlets were opened all over the country

Managing Director/President and Group Chief Executive Officer of Axiata Group Berhad, Tan Sri Jamaludin Ibrahim visited Bangladesh on June 7th on a one-day official visit. During his visit, Tan Sri Jamal reviewed Axiata’s operating company Robi’s progress following the merger with Airtel

Radisson Blu Chittagong Bay View hosted a special Iftar gathering for children from a local orphanage on Jun 7, 2017. Joined by General Manager, Robin Edwards, Managing Director, Brigadier -General Humayun Bakht (Retd.) and the hotel’s executive team, the event saw children from the orphanage enjoying Iftar

With the aim to get out of the traditional radio trends, 96.4 Spice FM started its journey from 1st September, 2016. However, its official launch took place on 4th May, 2017, through a grand event. Honorable Minister of Information – Hasanul Haq Inu, was the chief guest at the event

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Capital Market BOURSE UPDATE

Fortnightly Report of DSE, 16th May To 31st May 2017 Top 10 securities by turnover value in Tk. Sl. No. 1 2 3 4 5 6 7 8 9 10

Name of securities

Category

IFAD Autos Limited Paramount Textile Limited Doreen Power Generations and Systems Limited United Power Generation & Distribution Company Limited Bangladesh Shipping Corporation Ratanpur Steel Re-Rolling Mills Limited MJL Bangladesh Limited LankaBangla Finance Ltd. Evince Textiles Limited Agni Systems Ltd.

A A A A

Top 10 securities by turnover in shares Sl. Name of securities No. 1 2 3 4 5 6 7 8 9 10

Paramount Textile Limited Evince Textiles Limited Agni Systems Ltd. FAS Finance & Investment Limited National Bank Ltd. Regent Textile Mills Limited Tung Hai Knitting and Dyeing Limited Bangladesh Finance and Investment Co. Ltd. Bangladesh Export Import Company Ltd. BDCOM Online Ltd.

Top 10 gainer securities (based on closing price) Sl. Name of securities No. 1 2 3 4 5 6 7 8 9 10

Asia Insurance Co. Ltd. EXIM Bank 1st Mutual Fund Mercantile Insurance Co. Ltd. BDCOM Online Ltd. Agni Systems Ltd. United Power Generation & Distribution Company Limited ICB AMCL Third NRB Mutual Fund ICB AMCL Sonali Bank Limited 1st Mutual Fund BD.Autocars Ltd. Doreen Power Generations and Systems Limited

Top 10 loser securities (based on closing price) Sl. Name of securities No. 1 2 3 4 5 6 7 8 9 10

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Premier Bank Ltd. Rupali Bank Ltd. National Credit and Commerce Bank Ltd. Rupali Insurance Company Ltd. First Finance Limited. Fareast Finance & Investment Limited Sonar Bangla Insurance Ltd. Pragati Insurance Ltd. Provati Insurance Company ltd. Premier Leasing & Finance Limited.

Total Turnover in shares 27,840,932 59,462,223 13,650,487 10,555,470

A A A A A A

2,584,606 15,721,866 10,925,271 26,055,496 55,154,935 43,596,290

Total Turnover Tk. in mn 3,763.90 1,951.18 1,883.56 1,837.34

% of Total Turnover Tk. 6.16 3.19 3.08 3.01

1,580.01 1,346.61 1,293.56 1,278.65 1,260.03 1,183.58

2.59 2.20 2.12 2.09 2.06 1.94 % of Total Turnover shares 3.33 3.09 2.44 2.38 2.25 1.84 1.74 1.72 1.70 1.60

Category

Total Turnover Tk. in mn

Total Turnover in shares

A A A A A A A A A A

1,951.18 1,260.03 1,183.58 749.50 521.67 964.29 497.21 610.31 995.35 1,108.06

59,462,223 55,154,935 43,596,290 42,550,546 40,138,627 32,952,252 31,103,968 30,639,423 30,383,129 28,640,375

Category

last Fortnight Closing Price 19.20 7.20 17.30 35.60 24.50 161.60

change %

Turnover Tk. in mn

Daily Avg. Turnover Tk.in mn

A A A A A A

Current Fortnight Closing Price 22.90 8.40 19.90 40.30 27.40 180.70

19.27 16.67 15.03 13.20 11.84 11.82

9.17 99.00 21.14 1,108.06 1,183.58 1,837.34

0.76 8.25 1.76 92.34 98.63 153.11

A A B A

7.90 8.90 82.90 143.30

7.10 8.00 74.80 130.10

11.27 11.25 10.83 10.15

175.69 126.91 73.30 1,883.56

14.64 10.58 6.11 156.96

change %

Turnover Tk. in mn

(16.94) (15.44) (15.17) (14.50) (14.17) (13.39) (12.79) (12.46) (11.94) (11.17)

147.96 20.48 243.92 14.70 47.63 126.27 3.92 3.18 13.85 293.68

Category

A A A A Z A A A A A

Current Fortnight Closing Price 10.30 25.20 12.30 17.10 10.90 9.70 15.00 28.80 17.70 17.50

last Fortnight Closing Price 12.40 29.80 14.50 20.00 12.70 11.20 17.20 32.90 20.10 19.70

Daily Avg. Turnover Tk.in mn 12.33 1.71 20.33 1.22 3.97 10.52 0.33 0.27 1.15 24.47

Disclaimer: Dhaka Stock Exchange does not hold any responsibility for these date. Source: Dhaka Stock Exchange