ICE Business Times, January 2016 by ICE Media Ltd.

WE HAVE CHANGED a global business magazine from bangladesh

TIMES

jan 2016

Christian Ewert

Kaushik Basu

Shykh Seraj

Anis Uzzaman

HOPE SPRINGS

Sajeeb Wazed Joy

IN2016 The Year to achieve New milestones

SK Sur Chowdhury

Mahbubul Alam

Riyad S.A. Husain

TK. 100 | www.icebusinesstimes.net

Ali Reza Iftekhar

CONTENTS January 2016

6 From the Editor 8 OP-ED by Christian Ew ert, Director General, FTA Columns 14 Former Ambassador Muhammad Zamir 18 Shamsul Huq Zahid 20 Asaduzzaman

IBT Cover Story

Of Identity and Prosperit

CONTENTS January 2016

Interviews 22

Kaushik Basu, Senior Vice President and Chief Economist, World Bank

SK Sur Chowdhury, Deputy Governor, Bangladesh Bank

Ali Reza Iftekhar, Managing Director and CEO, Eastern Bank Limited

By Sajeeb Wazed Joy,

Professor Dr. Anupam Sen, Vice Chancellor, Premier University, Chittagong

ICT Adviser to the Prime Minister 52

Dr. Akbaruddin Ahmed, President, TOAB

Shykh Seraj, Director & Head of News of Channel I and Impress Telefilm Ltd.

Tanjil Chowdhury, Managing Director, East Coast Group

Anis Uzzaman PhD, General Partner & CEO, Fenox Venture Capital, San Francisco Bay Area

Riyad S. A. Husain, CEO, Magnito Digital

24 Vision Statements Mahabul Alam, President, CCCI

Features 12

High Hopes with International leather Tech Expo

Photo Story: Banking Fair Bangladesh 2015

SAPTA: FBCCI Vision 2030

Connectivity between Chittagong & Myanmar

A bold Step By BSRM

Strategy: Rookie Mistakes to Avoid during a Presentation

Robi Shines Brighter

Digital Marketing Summit 2015

The Growth of the Gig Economy

Financing Terrorism: Fueling the Bloodshed

Top Ten People to Look Out for in 2016

Tech: Productivity At Your Fingertips

Capital Market Update

Word of Mouth 10 11 30 81 95

State of Affairs BPO Summit 2015 Banking Corner International Business The Month in Pictures

FROM THE EDITOR In The Art of War, Sun Tzu tells us, “In the midst of chaos, there is also opportunity.” This holds especially true with the bleak outlook of the global economy at the end of 2015. It is quite obvious that governments will need new forms of knowledge to respond to emerging challenges such as the interconnectedness between local and transnational markets, migration, social movements, looming energy crises, and climate change. On top of all that, they have to factor in external shocks from global superpowers. China's projected lower economic growth will have little impact inside China. However, it means those countries that demand commodity exports from China will have to learn to cope with this new reality. The social instability and continued hostility among EU states is hugely problematic, a conundrum, which is further, worsened by potential security incidents between Europe and the Russian military. Farther west, we can see Washington accessing capital markets and using various types of sanctions to weaponize financial tools on a new scale. However, this risky strategy may end up damaging international relations, particularly inside Europe. We also have the trigger-happy Islamic State, which has now added foreign operations to its government spending, as recent attacks would suggest. The prospects are indeed frightening when such an organization can amass the wealth of a state and has the ambition of an imperial power considering its alarming large list of enemies. All hope isn’t completely lost though. Emerging Market Economies, as a group have shown that despite these global setbacks, they have the capability to weather any crises much better than the advanced countries. Most of these economies have already proven that they can bounce back

This Issue’s Photographs by

Din M Shibly Ashraf Uddin Apu Kazi Mukul Hossain Tuhel

This issues cover story is an analysis of our identity and capability as a forward-looking nation. Bangladesh has already made significant progress over the last decade in alleviating poverty, attaining food security, improving education and health, creating social safety nets and so on. The government has also taken initiatives to build on its relationships with immediate neighbors to improve regional connectivity, which will link Bangladesh, Bhutan, India and Nepal. Achieving all this has helped our country position itself in a global context in terms of image building and enhanced engagement with our neighbors. Continuing on this path in 2016 will not only add value to our relevance in an international context but will also show that despite the chaotic circumstances of the world economy, Bangladesh can hold on to the right opportunities and move forward. We wish everyone a happy and prosperous new year.

a global business magazine from bangladesh

TIMES

jan 2016

Christian Ewert

Kaushik Basu

Anis Uzzaman

HOPE SPRINGS

Sajeeb Wazed Joy

IN2016

Write to us at

editor@icebusinesstimes.net, or send us a note at www.facebook.com/icebusinesstimes www.twitter.com/BusinessTimesBD

The Year to achieve New milestones Ali Reza Iftekhar

SK Sur Chowdhury

Mahbubul Alam

Riyad S.A. Husain

TK. 100 | www.icebusinesstimes.net

for online viewing at www.icebusinesstimes.net

During these chaotic times, governments are faced with questions regarding their identity and economic standing. This is also when the interconnectedness of neighboring nations will be vital in their drive to maintain sustainable growth and to stand up and combat all sorts of crises and insurgencies. Simply put, nations will need to have clear ideas about their strengths and goals.

a global business magazine from bangladesh

Shykh Seraj

Be sure to visit our website

rapidly from global recession. This further outlines the importance of enhancing the connectivity between countries in the same regions. Countries grouping together have shown that countries that would rather choose to operate in closed circles cannot match their durability and sustainability in terms of long-term growth. The rapid economic growth and demographics of countries like Brazil, Indonesia, Mexico and Malaysia are expected to give rise to a larger middle classes whose consumption would help drive the their economic development and expansion of the global economy.

Vol. 6 No. 5 | january 2016

Publisher & Editor : Director, International Publications : Executive Director : Managing Editor : Assistant Editor : Staff Feature Writer : Designer : Head of Business Development : Business Development : Business Promotion : Research Assistant : Brand Promotion : Finance & Accounts : Sales & Distribution :

Abul Khair Zeenat Chowdhury Nawshin Khair Tawhidur Rashid Irad Mustafa Asaduzzaman Sk. Yeahhia Toufiq ul Alam Md. Nizam Uddin Forhad Mohammad Imran Lamina Yeasmin Effat Ara Laizu Md. Abdul Alim Md. Nazrul Islam Md. Rubel Khan

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: 01812656969, 01759391168, 01920335953, 01716783698, 01913818402 Tel: 09666773313 Fax: 88-02-8901205 Editorial & Marketing Queries: editor@icebusinesstimes.net, businesstimes.1@gmail.com

OP-ED

Christian Ewert meets H.E. Ismat Jahan, Bangladeshi Ambassador to the EU.

Photograph: Courtesy

The European Retail Sector is at the Heart of EU-Bangladesh Relations Christian Ewert, Director General of the Foreign Tarde Association (FTA)

It is a proven fact that the growth experienced in Bangladesh over the past decade was mainly due to increased trade with the EU. Between 2005 and 2014, the total volume of EU-Bangladesh trade has increased from around €5 billion to over €14 billion. Textiles and clothing dominated exports from Bangladesh while machinery and transport equipment predominated in Europeans’. This close relationship is maintained through FTA’s active engagement on the ground, via our representative in Dhaka, who provides our Brussels office with frequent updates on the political and economic environment in Bangladesh. Furthermore, I have the opportunity to visit the country on a regular basis to meet with high-level political and business representatives, such as my recent trip in October 2015. In addition, this December I met with H.E. Ismat Jahan, Ambassador of the People's Republic of Bangladesh to the EU to discuss topics of high importance for European businesses operating in Bangladesh, as well as the pressing issues in today’s relations between the EU and Bangladesh, and how the FTA could provide support in this process. We are at an important moment in EU-Bangladesh relations for different reasons. Firstly, the country has rapidly developed over the past few decades, with an average annual GDP growth of 6.1% with prospects of becoming a mid-income country in the early 2020s. However, in such a scenario the country would no longer benefit from the Generalised Scheme of Preferences (GSP) ‘Everything But Arms’ status,

INTERNATIONAL RELATIONS

which grants free exports to the EU. In order to maintain the preferential trading system with the EU, Bangladesh would have to apply for the Generalised Scheme of Preferences Plus (GSP+). This scheme demands compliance with 27 international core conventions on labour rights, human rights, environment and governance, which the country strives to apply. The country should prepare for this soon-to-be scenario and pave the way for an early compliance with the core conventions. Secondly, the EU is currently setting up a Registered Exporter system (REX) in order to facilitate the certification of origin from GSP beneficiary countries. While Bangladesh is not planning to introduce the new system immediately, rather in the medium-term, FTA supports a prompt implementation of the system in order to allow traders from Bangladesh to benefit from the automated procedures and faster processing times. Thirdly, improving the working conditions in supplying factories and farms in Bangladesh remains of utmost importance. The Business Social Compliance Initiative (BSCI), a service offered by FTA to support members in their efforts to improve labour conditions in their global supply chains, is working with businesses towards meeting these challenges in a sustainable way. Its development-oriented approach unites its participants around one common Code of Conduct, which draws on important international labour standards and sets out 11 core labor rights that they strive to implement in cooperation with their business partners. In the aftermath of the Rana Plaza disaster, the “Accord” and the “Alliance” for Fire and Building Safety were set-up. FTA welcomes the important progress this has brought, but it agrees with the Bangladesh Government’s position that the Government itself must become more responsible for inspecting standards in the country. In this respect, FTA supports the view that the Accord and Alliance activities should not be extended beyond its agreed-upon time

WHAT IS FTA? The Foreign Trade Association (FTA) is the leading business association of European and international commerce advocating the values of free trade and sustainable supply chains. Representing over 1,700 retailers, importers and brand manufacturers, our association has a long-standing partnership with Bangladesh, a country that has become the second most important sourcing destination for FTA members.

frame in 2018 and that the responsibility for ensuring worker, health and safety standards should shift to the Government and domestic authorities. Sharing the responsibility is key, and it should not rest only on the shoulders of European and international businesses but also local government and, most importantly, local businesses. Embracing this holistic vision of sustainable supply chains, FTA is also supportive of the Partnership for Sustainable Textiles (the German “Textilbündnis”) established in October 2014, and actively participated in respective Working Groups. Furthermore, the FTA fosters other similar national initiatives that aim to bring about social, environmental and economic improvements all along supply chains. However, close coordination and cooperation is required to avoid duplication and additional layers of complexity and bureaucracy to already existing and successful programmes such as BSCI. Fourthly, substantially more efforts are required in response to climate change and its consequences. In 2014, FTA launched a complementary sustainability service to tackle businesses’ environmental impact derived from their supply chain activities in sourcing countries, the Business Environmental Compliance Initiative (BEPI). BEPI is currently looking into developing its presence in Bangladesh with the aim of offering a full-package service for international buyers of consumer goods and domestic manufacturers. Finally, Bangladesh remains a highly attractive sourcing place but more efforts are needed to overcome some of the generic barriers to higher market integration. As indicated by

the FTA Trade Barometer, a quarterly survey among FTA members that assesses business developments in the import sector, companies are positive about the future development of the country and over 35% of those participants expect Bangladesh to – even further – increase in importance as a sourcing market in the next three years. However, many other challenges still remain to be tackled in the country and combined action from both public and private stakeholders will be required. Questions of political unrest, labour conditions, environment, building integrity, structural reforms and corruption need to be addressed more vigorously. In order to ensure the long-term sustainability of its economic growth and development, Bangladesh should diversify its economy. Sectors such as leather, agriculture, fisheries, and electronics industries currently amount to merely a fraction of the total exports to the EU, but have a large potential for future growth of the country. All in all, there is no doubt that Bangladesh has made an important and remarkable journey over the past few years. Our latest publication, “FTA Focus: Is Bangladesh a Success Case?”, provides a balanced view of the country’s development since 1991. The document underscores the contribution of the ready-made garment industry to the economic and social development in Bangladesh, and highlights the next objectives for the industry: a gradual implementation of a social security system, an increase in salaries and improvement of transport infrastructure. We, the retail and import sector, stand ready to help and support the country’s further development. www.icebusinesstimes.net

WORD OF MOUTH

STATE OF AFFAIRS

Prime Minister Sheikh Hasina recently Distributed Regum Rokeya Padak 2015 among the winners

President Abdul Hamid and Prime Minister Sheikh Hasina at the National Parade in the capital on Victory Day 2015

26. Prime Minister Sheikh Hasina released a commemorative postage stamp on the eve of Victory Day 2015

23. Prime Minister Sheikh Hasina at the President Parade to mark the passing out of Midshipman-2014/A and DEO 2015/B batches at the parade ground of Bangladesh Naval Academy in Chittagong

The United Statesâ&#x20AC;&#x2122; Under Secretary for Political Affairs designate Thomas Shannon and Assistant Secretary for South and Central Asia Nisha Biswal recently called on Prime minister Sheikh Hasina

Prime Minister Sheikh Hasina at the induction ceremony of YAK-130 Trainer Aircraft and Maritime Search and Rescue Hel Augusta AW-139 in Bangladesh Air Force at Air Base Bangabandhu in Dhaka Cantonment.

WORD OF MOUTH

BPO Summit 2015

More export earning, More Employment Opportunity By Effat Ara Laizu

Earnings from Business Process Outsourcing (BPO)would cross the $1billion mark in coming five years said Prime Minister's ICT Affairs Adviser Sajeeb Wazed Joy on 9th December , 2015 while inaugurate two day long first ever BPO Summit in Dhaka . He said that around 25000 people are employed in this sector and our goal is to cross the mark of 2, 00,000. Governmentâ&#x20AC;&#x2122;s ICT Division, in collaboration with Bangladesh Association of Call Centre and Outsourcing (BACCO), hosted the event with an aim to brand Bangladesh as an ideal place for investment and business management. A total of 79 local and 9 international analysts attended the summit. State Minister for ICT Zunaid Ahmed Palak said that Government has a target to earn $3 billion from the ICT sector by 2021 where 33% of the pie belongs to this segment. Reiterating his commitment to help flourish the country's ICT sector Joy expressed his hope that Bangladesh's IT exports would exceed earnings from garment exports in next two decades. Imran Ahmed Chairman Parliamentary Standing Committee, Post, Telecom and ICT said the Philippines earn $16 billion a year, which is 12% of their GDP and we also should able to do it. In his speech, Santiago Gutierrez, Chairman of World Information Technology Alliance (WITSA) cited about the example of Mexico, which was earning only 50 million in 2000 and now they have reached $6 billion mark, just within 15 years. Abdul Matlub Ahmed, President of FBCCI said that we have good policy regime and there are interest from the global clientele; the only thing that can ensure our sure success in it is unconditional support

from the government. Ahmadul Hoq, President of BACCO said that our demographics are telling us that we need to change our education system and instill the competiveness. The summit exhibited some spot recruitment facilities, under which 300 guys were hired for particular jobs. In two days there were 12 sessions of important interaction where industry leaders and experts share their valuable insights. The sessions were on are like Infrastructure and operational Readiness , Entrepreneurship and Investment in BPO Industry, Connecting Start Ups Bangladesh : Nurturing the Future, Future Challenges of ICT development and Transformation of BPO Industry, The opportunities of Outsourcing clients services from IT perspective, Bangladeshi Youth to drive BPO industry, Opportunities and Challenges in Banking Outsourcing , Connecting with Untapped Skills: Polytechnic, Vocational and Technical, etc. While expressing his reaction, IT exponent Mustafa Jabbar said that this kind of congregation would embark us on a journey to become an IT savvy nation, whereas the exchange of views will help change the mindscape of the youngsters of today in the same field. Sonia Bashir Kabir, Managing Director of Microsoft Bangladesh said that many young women and girls have gathered here from across the country and this congregation of young minds would play a pivotal role in the making of a sensible IT generation .

www.icebusinesstimes.net

SPECIAL REPORT

High hopes: aspiring to be the next RMG Third Leather-tech held in Dhaka A huge number of buyers and sellers congregated to observe the state of the art technology available in the leather sector in a three day long international exposition. The event also showcased the backward and forward linkage products of the sector. IBT caught up with three experts at the fair to get their thoughts on the prospects of the sector.

INTERNATIONAL LEATHER-TECH EXPO

Engr. MA Taher

The President of the Leather Goods Exporters Association shared with ICE Business Times that the leather footwear and components exposition is the third of its annual series. He mentioned that under this roof people will be sensitized about the prospects of this sector. “The global market of leather goods is $250 billion; out of which, 30% is of leather goods and 70% of artificial leather because leather is very costly.” He urges that the burgeoning leather sector in Bangladesh requires a surge of investment from local and foreign sources stating, “With the participation of the joint venture initiatives, Bangladesh can replicate the successful model of the RMG industry in the leather sector as well.” Expressing his satisfaction about the turn out and response from the participants he said,” This was one of the most successful events in recent times and will encourage local investors to work harder to improve the industry.”

Franco ColOmbO

The Managing Director of famous Italian brand BEKA LIMITED said, “Bangladesh’s potential as a developing country has attracted our attention and we have already built a very good relationship with the people of this country. We are offering technology and expertise which was earned though our long journey. Bangladesh is an emerging player in the sector and we see a very good opportunity to represent our products because the market size is growing here, where the scenario is completely opposite in many other countries.” He mentions about his partner William Chan from Taiwan who has joint venture companies in China, Vietnam and Cambodia and has different offices across the globe and represents the most important company in Japan in this field. He urges that local factories should be more careful about ensuring international rules and regulations about compliance and environmental pollution.

Peter Allen

The representative of SATRA, an independent research and testing organization, says that Bangladesh is slowly becoming a nation of manufacturers where the textile industry already has a solid form and footwear industry is slowly attaining good progress. “We conduct research and developed 400 text messages to use in the global footwear industry. The text message is on 300 machine devices for the improvement of their productivity.” He also says that they have memberships in global chains, retails and social companies in China, Germany and Vietnam and have the supply chain to develop products. Regarding the compliance issues he says that to be compliant, training is very much required besides the professional investment and policy support, which they are going to provide. “We found that many consider that investment in professional development is a liability; however to inspire members we try to ensure their participation in the overall process. We see it is increasing in the testing markets. There are companies who are making investment in quality production. Lack of infrastructure is a challenge in Bangladesh, which along with political instability sends a wrong signal to the investors from abroad.” Nevertheless, as soon as the local factories stress more on understanding the technical aspects and eventually ensure producing quality products, the chances to become a market leader for the Bangladeshi leather sector will increase exponentially.” The experts all opined that Bangladesh has great potential in the global leather goods and footwear products market due to the abundance of raw materials, available competitive young labor force and preferential market access with the EU, Japan, and Canada. Recently Bangladesh leather goods and footwear sector has been declared as one of the four prioritized sectors by the government of Bangladesh. www.icebusinesstimes.net

COLUMN

TRANSFORMATION OF BANGLADESH Muhammad Zamir December 16th of 2015 marked the 44th anniversary of the victory of the freedom-loving people of Bangladesh in their quest for an independent homeland where the Bangali nation could flourish within the national paradigm of their unique culture, language, traditions and promote their socio-economic welfare. The year 1971 marks for all of us our tryst with destiny. It also stands as a milestone that reflects the dream as seen by Bangabandhu and millions of others who became martyrs for this glorious cause. The torch that was lit on 26 March, 1971 was snuffed out on 15 August, 1975. The dream did not however fade away. It took 21 years to re-surface through the coming to power of the Bangladesh Awami League in 1996 under the leadership of Sheikh Hasina. The next five years till 2001 saw her government undertake important initiatives related to agriculture, resolution of the

The year 1971 marks for all of us our tryst with destiny. It also stands as a milestone that reflects the dream as seen by Bangabandhu and millions of others who became martyrs for this glorious cause.

on-going conflict in the Chittagong Hill Tracts in 1997 and creation of important alternatives both in the electronic and broadcast media and in the use of mobile phone connectivity. This was reflected in the granting of license, for the first time to a private Television Channel- ‘Ekushey TV’ so that the viewers could see in real time reports on activities within the country which might be different from what was being aired by the government television (BTV) channel. This created healthy competition and assisted in promoting good governance. The other important initiative was the granting of license to Norwegian mobile phone operator- Telenor to start their cell phone operations as Grameen Phone. This decision ended the monopoly that had existed till then of ‘City Cell’, a company established under the patronage of the Bangladesh Nationalist Party who had ruled the country between 1991 and 1996. It may be noted here that this Norwegian company has continued to grow over the last decade and half and now has more than 50 million subscribers in this country. This process of opening doors to healthy competition has continued. It has resulted in the granting of licenses to nearly 30 Television companies and several FM radio stations to function within the private sector in Bangladesh. Fourteen Community Radio Stations have also started functioning all over the country. This encouragement for the media to expand its activities has also included the emergence of many additional daily newspapers and digital news portals. A similar trend has also been seen in the domain of mobile phones. The total number of cell phone users in Bangladesh has grown from over 52 million subscribers/ users (when Sheikh Hasina returned to power in January, 2009) to nearly 130 million. The number of Mobile Phone companies has also increased and now includes others like Robi, Banglalink and Airtel. They provide effective connectivity between the rural and urban areas as well as between expatriate Bangladeshis working abroad and their family members they have left behind in Bangladesh. It also acts as the platform for those interested in accessing digital technology (internet) and social media. The increase in the numbers of users in their own way reflects the inherent growth in our standard of living. It has, also as fallout, facilitated the growth of trade and commerce, educational activities, economic opportunities, mobile banking and e-commerce. Sheikh Hasina deserves full credit for these forward looking steps.

Photographs: Sumon Das

www.icebusinesstimes.net

COLUMN

This process of transformation towards more transparent, accountable and better governance was also taken forward through the passing in the first session of the newly convened Parliament in 2009 of the Right to Information Act on 29 March, 2009. It was approved by the President on 5 April, 2009 and became effective from 1 July, 2009. An Information Commission was also constituted to monitor and take steps whenever necessary for effective functioning of the entire process of accessing to information by those interested in doing so. The dynamics associated with this process has had to overcome several challenges - including bureaucratic mind-sets. The full backing of Prime Minister Hasina has enabled the responsible authorities to implement wider application of this Act and also to take quasi-judicial steps in cases of contravention. Bangladesh has made significant progress in alleviating poverty, attaining food security, education, health and sanitation, gender mainstreaming, creation of social safety nets and ensuring of basic human rights. This gradual economic transformation under Hasina’s leadership has been acknowledged abroad and we are now widely recognized as a ‘role model’ for development. A particular case in point has been the agricultural sector, where positive gains have helped to ensure food security for our 160 million citizens. From subsistence agriculture, it has now become a mechanized, process oriented, diversified and value added example. Technology, diversity and innovation are now the hallmarks of our present day agricultural matrix. Since 2009, when the present government assumed power, our GDP has been growing at an average, over 6% annually, export earnings have reached $32 billion, remittances have doubled to nearly $15 billion and the foreign currency reserve has crossed $27 billion. This has taken place at a time when the world has been suffering a financial recession. Bangladesh now ranks as the 37th largest economy in the world in terms of purchasing power parity (PPP). We have also experienced one of the fastest poverty reduction rates in the world with a modest resource base. We have brought down poverty from 56.7% in 1991 to 22.4% today. Bangladesh has graduated from the UNDP’s low human development category to medium, and the World Bank’s lower income country status to lower-middle income category. This trend has resulted in Goldman Sachs including Bangladesh in the list of “Next Eleven” and JP Morgan in its list of the “Emerging Five”. The present government realized that investing in human capital was important. Consequently,

Bangladesh has made significant progress in alleviating poverty, attaining food security, education, health and sanitation, gender mainstreaming, creation of social safety nets and ensuring of basic human rights. This gradual economic transformation under Hasina’s leadership has been acknowledged abroad and we are now widely recognized as a ‘role model’ for development.

since 2009, the current leadership has targeted our large young population and it is beginning to pay dividends. Particular emphasis is being given on education and health for all. Under the National Education Policy focus has now shifted from quantity to building quality and reducing the process of drop-outs. More than 13 million students (of which 75% are girls) from poor families have also received stipends in 2015. Free education is also being made available for girls up to 12th Grade in the higher secondary level. In the beginning of 2015, over 330 million free text books were distributed by the Ministry of Education to school students. Since 2010, nearly 1.59 billion text books have been distributed. It is probably the biggest such initiative ever undertaken in the world. Mid-day meals have also been introduced in schools to enhance nutrition and productivity among the children. Madrasa education has also been upgraded with the introduction of teaching of science and technology. This has helped to raise the national functional literacy rate to 65%. In keeping with the effort to enhance rights of women, a policy has been initiated whereby women receive collateral-free loans to help them set up small and medium enterprises. There has also been an upward trend in women getting more involved in politics, civil service, judiciary, armed forces and also in the industrial sector, particularly in the ready-made garments sector. This involvement has also had another beneficial effect- delayed marriages and also better family planning. This emphasis on gender empowerment by the present government has led to the UNESCO Director General awarding Sheikh Hasina the “Tree of Peace” in 2014 in recognition of her efforts to promote girls’ education and women’s literacy. To facilitate better health care in the rural areas, certain innovative steps have also been taken that are carefully monitored by the Ministry of Health and the Office of the Prime Minister. The rural population receives over 200 services from over 5,275 Digital Centres and has access to health care services from over 16,500 IT-connected Health complexes. All these steps are being taken to ensure that no one is left behind in our shared aspiration to build a resilient, peaceful and prosperous society. The current government also believes that sustainable development cannot be achieved in the absence of durable peace and security. In this context we have, in the international arena, in the field of foreign relations committed ourselves through the United Nations to the upholding of peace, ‘rule of law’ and the ending of any ‘culture of impunity’.

MUHAMMAD ZAMIR

This approach has also encouraged the current Administration to attaching utmost importance to the preservation of religious harmony and tolerance that have nurtured our social fabric through the ages. Consistent with Article 25 of our Constitution, our foreign policy has tried to reflect in its efforts the upholding of Bangladesh as a nationalist, secular and democratic state which has rejected religious extremism. The present government has in this context upheld the spirit, values and aspirations of our War of Liberation and played a responsible and contributory role within the international community. We can justifiably take pride that in the last seven years we have been able to position ourselves in the global context. This is applicable not only in terms of image building, enhanced engagement with our neighbours, but also in adding value to our relevance in the international context. There has been a palpable dynamism characterized by well-integrated domestic and international priorities for preserving and promoting our national interests. The defining element within this matrix has been the active summit level engagement of Prime Minister Sheikh Hasina. Bangladesh has remained engaged multilaterally for promoting peace, development, climate justice, enhanced market access as much as in setting global standards within the trade regime and also the parameters of human rights and disarmament. This has been reflected in our engagement within the United Nations, the Organization of the Islamic Conference, the Commonwealth and other fora. Our efforts have been recognized through several awards bestowed on Prime Minister Sheikh Hasina. UN Peacekeeping, Peace building and the successful completion of the Doha Development Round have also remained high in Bangladesh’s foreign policy priorities. In this context Bangladesh has also established the internationally acclaimed Institute for Peace Support Operations and Training (BIPSOT) for training peacekeepers, particularly women peacekeepers. Bilaterally Bangladesh has sought to further expand co-operative relations. This has included broadening of inter-action with countries and regions with which it has not had direct links. Several new Missions and Sub-Missions have been opened to enhance our outreach, especially in Africa and Latin America. This has been done in the pursuit of political goodwill, market access for its expanding and diversified exports, sustained flow of FDI, newer and diversified openings for its workforce in the global market place, and technical cooperation for its development goals.

The writer is a former Ambassador and an analyst specialized in foreign aﬀairs, rights to information and good governance. He can be reached at muhammadzamir0@g mail.com

It has also tried to showcase its capacity in education, training, social innovations and other sectors at the international level. The government has also taken measures to build on its relations with its immediate neighbours to expedite the implementation of regional connectivity linking Nepal, Bhutan, India and Bangladesh, and further beyond through Myanmar, with South-East and China. These steps have taken into consideration questions related to power-grid interconnectivity, river basin management and upgradation of its ports to enable it to emerge as a regional hub. This process has been taken forward with the successful completion of the demarcation of Bangladesh’s maritime boundaries with Myanmar and India and also through the landmark conclusion of the Land Boundary Agreement and final resolution of the long-standing exchange of enclaves issue between India and Bangladesh. Political will acted as the necessary facilitator. Considerable progress has also been achieved in the process of establishing the BCIM Economic Corridor proposed by the BCIM Forum. It will bolster cooperation between Bangladesh, China, India and Myanmar. In addition to the SAARC context, emphasis is also being given by our government to strengthening the nexus between Bangladesh and South East Asia. This is being done through the BIMSTEC and is expected to usher in comprehensive co-operation. Consistent with this natural expansion of ties, Bangladesh has also been attaching special importance to trade, investment and security-related issues within the paradigm of partnership as envisaged under the Indian Ocean initiative of IOR-ARC. There has also been a new thrust in Bangladesh’s relations with Western Asia and Central Asia. This has been initiated through VVIP visits to Saudi Arabia, Kuwait, Qatar, UAE and Turkey. This has helped to increase economic cooperation and promote investment in Bangladesh. Pro-active measures have also helped to bolster trade and economic engagement with the European Union, United States and Canada. These steps have helped to identify areas whereby existing deficiencies within the Bangladeshi framework can be removed to overcome challenges. Institutional approaches are also assisting in making common efforts to fight terrorism more effective. The last seven years have been an experience that has assisted in our image-building as a progressive country at the international level.

www.icebusinesstimes.net

COLUMN

Flight of Bulging Capital Shamsul Huq Zahid The flight of capital out of the country has been hitting the newspaper headlines for the past few years, courtesy of the Global Financial Integrity (GFI), a Washington-based organization that rigorously tries to track illicit fund flow from one country to another. However, the increased interest of the media has not been without any reason. The size of the fund going out of the country has been on the rise in recent years. In fact, the GFI estimate might appear incredible to many. In 2013 alone, a sum equivalent to $9.7 billion or Tk750 billion reportedly had flown out of the country through illegal means. The amount is equivalent to the size of the country’s revised development budget for the fiscal 2014-15. In the past 10 years since 2004, an

In 2013 alone, a sum equivalent to $9.7 billion or Tk. 750 billion reportedly had flown out of the country through illegal means.

estimated $59 billion was taken out of the country using various illicit means. The amount is staggering one for it was enough to finance the country’s public sector development programs for more than five years. Globally, there has been an uptrend in the flight of illicit funds in recent years. But the rise as far as Bangladesh, a country that faces scarcity of funds to develop its key infrastructures, is concerned is substantial. One may feel tempted to know how and why so much of our resources are being taken out of the country. According to the GFI, most part of the illicit capital flight takes place through trade miss-invoicing and transfer of hot money. In the case of Bangladesh, the unholy practice does play a dominant role. Over-invoicing in imports, particularly for capital machinery imports, has been rampant. During the last few years, though import of most goods was lower compared to that of previous years, the import of capital machinery recorded a noticeable rise, that too in a subdued investment environment. The leakage in the balance of payments (BoP) and unreported remittances are two other major areas of capital flight. A large amount shown under the ‘error and omissions’ head in the BoP is a pointer to that fact. Both in the case of outflow and inflow of remittances, a substantial amount remains unreported. A section of unscrupulous exporters do not bring home the entire amount of export proceeds. The government allows the exporters to keep a small part outside the country for market promotion. But they usually hold more than that. That is how a good number of them have become owners of homes and other properties abroad. Due to the non-availability of adequate number of skilled hands in Information Technology (IT) and some key industrial sectors, a good number of foreign workers, both legal and illegal, have been employed. These workers, particularly those coming from neighboring India, have been remitting a substantial amount every

SHAMSUL HUQ ZAHID

year. India alone gets nearly $4.0 billion a year. A large part of this outward remittance remains unreported. The rise in the volume of illicit fund transfer from the country means that the earning of tainted money has gone up in recent years. The scope, it seems, has widened to accrue illicit funds through willful default on repayments of bank loans, corruption in tax administration, tax evasion, stock exchange manipulation, leakages in public development expenditure, illegal financial deals etc. Nobody knows for sure the size of the fund being accumulated every year through illicit means. But it is thought to be very large. Nevertheless the question is: Why do the accumulators take most part of such funds out of the country when lax enforcement of relevant laws and rules concerned makes investment of the same rather easy? In this country no one feels the urgency of knowing the source/s of large incomes. It could be that these people are taking out the ill-gotten funds on real or perceived grounds. They may not have enough confidence in the economic growth prospects of the country or they do not want to take any chance as far as their funds are concerned. There exist both optimism and pessimism about the countryâ&#x20AC;&#x2122;s prospects, economic or otherwise. Some feel that the future of the country, for reasons best known to them, is doomed. But the vast majority does have faith in the future of the country. However, a section of people belonging to both pessimistic and optimistic groups is involved in the transfer of illicit funds. The policymakers concerned cannot remain mute spectators as far as the ongoing developments over illicit fund transfer are concerned. They must locate the actual reasons for near stagnant situation in domestic investment and address the same effectively. In addition to that they should devise means to reduce the extent of capital transfer through various means, including transfer

There is no denying it is hard to fully STOP the flight of capital in a world which has become smaller, mainly due to information technology. But there has to be enough preventive measures in this area.

pricing by the multinational corporations (MNCs). There is no denying it is hard to stop fully the flight of capital in a world which has become smaller, mainly due to information technology. But there has to be enough preventive measures in this area. However, it becomes difficult to stop the menace if the unscrupulous section of policy and decision makers in the government takes recourse to illegal fund transfer. From time to time, such allegations have cropped up. The reasons for the rise in financial crimes in the country are many. But the key factor remains to be the malfunctioning national institutions. The regulators operating in various areas of the national life have not been working in line with their avowed objectives. The Anti-Corruption Commission (ACC) in particular is supposed to play a very important role in combating the financial crimes. But it has disappointed the people in general. After a long delay, the ACC came into being in 2004 following intense pressure exerted by the multilateral donor agencies. But it has failed utterly to show its teeth for understandable reasons. Most people have developed a notion that like most other national institutions, the ACC would continue to operate under the influence of some â&#x20AC;&#x2DC;invisibleâ&#x20AC;&#x2122; force.

The writer is a senior journalist. He can be reached at zahidmar10@gmail.com www.icebusinesstimes.net

COLUMN

Who are we? Asaduzzaman “Who are we?” It is a question that is raised by every community, the answers to which determine the basic functions of daily life and the pace of economic development. Heavily dependent on social media, we now spend more and more time in a virtual world, where we constantly constructing our multiple identities. This question of identity is a primitive one and in this modern age, it is marked by the digital divide and cultural fragmentations, and with our globalized economic systems being fuelled by neo-colonialist capitalist forces, this question is only becoming increasingly relevant. In his book, Who Are We, American Historian Samuel P Huntington identified how the West influences the East and he considers the challenges the US face in the context of national identity. When discussing the issue of America’s identity, or the lack of it, Huntington points out that while the country often appeared as `a nation of immigrants,’ he concludes that America’s founders were settlers, not migrants. Defining the American creed as an embodiment of the “principles of liberty, equality, individualism, representative government, and private property,” Huntington refuses to acknowledge how these same principles justified white supremacist views. On the same note of glorifying the West as the ultimate agent of change, Francis Fukuyama, in his books, The End of History and The Last Man, argues that the advent

The most important thing that we Bangladeshis can begin to do for ourselves: to find out our history and celebrate how far we have come since 1971

Asaduzzaman is the feature writer of ICE Business Times.

of western liberal democracy may signal the end of humanity’s socio-cultural evolution. Utterly in contradiction with Karl Marx’s predictions, Fukuyama’s argument is Hegelian: he contends the triumph of capitalism and a world where Western liberal democracy is universalized as the final form of government. Conversely, in the eastern hemisphere, Rabindranath Tagore and his contemporaries had a far more modern outlook on the issues of identity, nationalist principles and internationalism. Tagore rightly identified that we are a diverse and multicultural group of people and that economic progress is a driving force in improving living standards. As Bengalis, we are all too familiar with a widening economic gap between the rich and the poor, and the consequences of such blatant economic discrimination is perhaps best illustrated by the 1947 Partition of India. When understanding the Bangladeshi identity, one has to look before 1971, even before 1947, even perhaps beyond the history of when India was under Mughal rule. For hundreds of years, this region has seen great migrations, shifts in power and the changes in state language several times over. One cannot deny that attempts to subdue the Bengali culture and language and the resultant fragmentation constitutes an important part of our identity: like when, in his address to the British Parliament on February 2, 1835, Lord Macaulay proposed to form “a class of persons Indian in blood and color, but English in tastes, in opinions, in morals and in intellect. To that class we may leave it to refine the vernacular dialects of the country, to enrich those dialects with terms of science borrowed from the Western nomenclature, and to render them by degrees fit vehicles for conveying knowledge to the great mass of the population.” Or when in 1962, the students of Dhaka University achieved martyrdom in protest to Jinnah’s oppressive declaration that Urdu would be sole state language. Like Macaulay, many other intellectuals throughout history and even today, use their intelligence and education, not to share the knowledge and promote equality, but to suppress and break down the cultural and socio-economic infrastructures of other countries to maximize profits, for themselves and the governments they serve. The most important thing that we Bangladeshis can begin to do for ourselves: to find out our history and celebrate how far we have come since 1971, when Henry Kissinger mocked us, calling Bangladesh “bottomless basket” to being able to finance the Padma River independently. We really need not worry about proving ourselves to anyone, but rather understand we need not fear our inadequacy, but celebrate our being powerful beyond measure.

PERSON OF INTEREST

The bilateral relationship between Bangladesh and the World Bank has now reached a new height of mutual respect. Bangladesh has earned that status by spearheading this project with unwavering determination.

Kaushik Basu Senior Vice President and Chief Economist, World Bank

Born on January 9,1952 in West Bengal, India, Kaushik Basu is a Senior Vice President and the Chief Economist of World Bank and on leave from Cornell University where he is the C. Marks Professor of International Studies and Professor of Economics. Prior to that, he was the Chairman of the Department of Economics and director, Center for Analytic Economics at this University till 2012. He served as the Chief Economic Adviser to the Government of India and the President-elect of the International Economic Association, and will take over as President in 2017.He had his MS in Economics from London School of Economics in 1974 and did PhD in 1976 in choice theory. He is married to Alaka Malwade Basu with two children, Karna and Diksha. Kaushik Basu strongly believes that good moral qualities are essential for growth and development within the economy. Honesty, trustworthiness and integrity are important qualities that need to be inculcated in an individual for personal development as well as within the society for development. Basu also feels the need to promote quality thinking in government and public debate. During his recent trip to Bangladesh, he delivered a public lecture which IBT was lucky enough to attend. Here are the excerpts:

KAUSHIK BASU

Q What is your take on the

Q What about the foreign

The recent economic development and the level of growth going on in Bangladesh isn’t something that is common in most parts of the world. Very few countries are lucky enough to maintain a 6%-plus average growth rate over the span of 12 years. If we look back at the country’s condition 10 years ago, then no one could have predicted then that it would be in such a position now. It is important to note how life expectancies and infant mortality rates have improved over the years as these things have positive impacts on economic growth. Amartya Sen, who was my professor, has repeatedly said that with this kind of development happening, we can easily get long run benefits which we can see in countries like China. So on the whole the story is very very positive. However, regardless of the positive signs, there is still a lot of work ahead. The Central Bank and the Ministry of Finance must remain vigilant at all times. The global scenario does not paint a positive picture, and economic snags in the more developed countries might end up hampering the progress of the developing ones.

The reserves of Bangladesh are now $27 billion where as during the 80s and 90s it used to be around $7 billion which at the time was a good indicator for the country. After certain reforms the reserve has grown quite impressively despite currency fluctuations. Money is a very volatile thing to manage so the Bangladesh Bank has to stay on its toes. Handling currency fluctuations is a sophisticated issue which will require the help of modern apparatuses. However, they have done well so far and with their continued success we will see further developments. This will help the country reap the right benefits from imports and exports.

present condition of the Bangladesh Economy?

Very few countries are lucky enough to maintain a 6%-plus average growth rate over the span of 12 years. If we look back at the country’s condition 10 years ago, then no one could have predicted then that it would be in such a position now.

exchange reserves of Bangladesh?

Q Bangladesh is finally

implementing its mega development project – Padama Bridge - using its own resources. What is your take on this?

Regardless of what happened in the past, the World Bank is extremely happy to see that Bangladesh is implementing such a major infrastructural project utilizing its own funds. The bilateral relationship between Bangladesh and the World Bank has now reached a new height of mutual respect. Bangladesh has earned that status by spearheading this project with unwavering determination.

Q American Economist, Joseph John Spengler said in the mid-fifties that the future of world economics lies in Asia. Seeing how things have turned out now, what would you say?

The Asian economy is doing remarkably well. There are in issues in other parts of the world, such as, in Latin America, although per capita income is much higher, their economic growth is slowing down to issues like corruptions scandals in countries like Brazil. In Asia, we can see that the growth rate of China is stable and India and Bangladesh’s growth rates are picking up. The dramatic advancement of Bangladesh in social

The reserves of Bangladesh are now $27 billion where as during the 80s and 90s it used to be around $7 billion which at the time was a good indicator for the country. After certain reforms the reserve has grown quite impressively despite currency fluctuations. indexes is another indicator. However, there are many uncertainties when it comes to economic growth, so political strife or economic turmoil in the larger economies might have wide spread impact on other countries as well.

Q What are your comments on the presence of bureaucracy in the World Bank? What is your take regarding capital flight?

I admit, bureaucracy is present in the World Bank but changing this is a process and the necessary steps are being taken. The flight of capital through illegal means is a very serious issue and there should be no tolerance for it. If the Governments can implement the right regulations and roadblocks for these illicit activities then the country will greatly benefit.

Q The South Asian region is

regarded as an insulated area in terms of connectivity. How can we move out of this?

It is disappointing that the need for more connectivity is still an issue. However, in recent times we have seen that political leaders are working to improve this and bring in greater connectivity through more human communication and greater flow of goods and services. The South Asian interregional connectivity is quite poor but we can now see that steps are being taken to amend this.

www.icebusinesstimes.net

VISION STATEMENT

The Realization of a Digital Dream

SAJEEB WAZED JOY

ICT Advisor to the Prime Minister

Photographs: Habibur Rahman

SAJEEB WAZED JOY

SAJEEB WAZED JOY, is a young, globally recognized politician and the son of the Prime Minister of Bangladesh, Sheikh Hasina and her late spouse Dr. M A Wazed Miah (Shuda Miah). Joy, who gets his name for the Bengali word for victory, was born on the 27th of July in 1971, during the Liberation War of Bangladesh. He took political asylum with his mother in India after the tragic assassination of his grandfather, the Father of the Nation, Bangabandu Sheikh Mujibur Rahman along with other members of his family on the 15th of August, 1975. Later on, he enrolled in the St. Joesph’s College in India after which he went on to study Computer Science at the University of Bangalore. He then was transferred to the University of Texas at Arlington where he received B. Sc Degree in Computer Engineering after which he completed his Masters in Public Administration from Harvard University. In 2002, he was wed to Kristinee Wazed and the couple was later blessed with a daughter, Sophia Rehana Wazed. Joy is a computer scientist and ICT consultant by occupation and considered one of the young global leaders. As the ICT Advisor for the Prime Minister his major contributions lie in the development of the ICT sector in Bangladesh and the formation of a Digital Bangladesh. After joining Awami League, Joy formulated the vision 2021 manifesto and took part in the development of the country’s ICT sector, dramatically changing the virtual arena of the country. He advised the Bangladeshi government to withdraw taxes on computer imports to boost the progress and growth of the ICT sector. Having been the main driving force behind this, one can acknowledg him as the main proponent for Bangladesh having recently won the ITU award for using ICT to raise people’s living standards.

A vision is the main driving force for achieving any goal. My vision is to work to make Bangladesh a developed country and I have set the necessary targets to achieve it. It is a great honor for me to bring the Vision 2021 to light having already made great progress in transforming the country. If we look back six years ago, we hardly had anything digital. Our internet penetration was only 3%, whereas now it is 30%. We have laid out six submarine cables as backups so that our internet connectivity stays intact. The eleven thousand or so young men and women who are working in over four thousand digital centers at union levels are earning about fifty to sixty thousand taka through them. This was only made possible through the Access to Information project. This has also proved that we have not been lagging behind the rest of the world in terms of the talent available in our country’s disposal. We can also look forward to Business Process Outsourcing (BPO) which is now a $100 million industry and will turn into a $5 billion industry in the next five years. It has reached employment levels of 25,000 which will also grow exponentially over the years. From my own experience in Bangalore, I have seen that 25 years ago it used to be a quiet city which has now turned into the number one IT outsourcing destination in the world. During my time there as a student there was no IT outsourcing in Bangalore but now it is a burgeoning global IT hub. This inculcated the dream in me and now I am working to make a Digital

Based on his speech given at the BPO Summit 2015. Rewritten by Asaduzzaman

I would like to appeal to everyone to come out of this old mindset. It is important that we help build the IT sector which will require more IT educated people in the next generation.

Bangladesh a reality. If all goes well we may even see the next great global IT hub here in Bangladesh. After the election of 2008. I was involved in the preparation of the manifesto of the Vision 2021. It was an honor to promote the idea of a Digital Bangladesh. We have faced adversities on this road to prosperity but we will achieve great things. We are number 2 in the global garments arena, we already have 3G with 4G on its way. There will be more value added from the BPO industry as well. A huge portion of our population within the age brackets of 18-35 years and I would like to encourage them to grasp the opportunities they have in front of them now. I would like to push parents to give their children the freedom to make their own fortunes. I do this because when we were going to school or college it was a trend to follow in the medical, engineering or law line of education. When I started my college education computer science was a new discipline. I would like to appeal to everyone to come out of this old mindset. It is important that we help build the IT sector which will require more IT educated people in the next generation. I hope young people will hone their talents and embrace IT as a way of life. Through this, I believe they will be able to ensure the well being of their own futures and help the country move forward as well. www.icebusinesstimes.net

VISION STATEMENT

Global City first, then Global Port

Y Mahabul Alam

President, Chittagong Chamber of Commerce and Industry

For there to be a global standard port you first need to have a city which matches global standards. Chittagong is contributing in a large way to the development of tourism in Bangladesh. What will help further is if there are two cities on either side of the Karnaphuli River. The twin city concept will create new vistas of development for Bangladesh. The BEZA (Bangladesh Economic Zone Authority) projects will also play a major role in this. If the land in Anwara is developed there will be two industrial zones with Mersari as an industrial satellite town and Chittagong will be the center of the development wave coming to Bangladesh. There is a youthful labor force of around one crore ten lac people who

need to be properly utilized through employment in the incoming FDI projects and local investments. The Karnaphuli tunnel will play a key role in connecting the two cities on either side of the river. Our burgeoning, hardworking labor force being one of our chief strengths, itâ&#x20AC;&#x2122;s high time we prioritize skill development. Industries being set up here need skilled labor and we canâ&#x20AC;&#x2122;t always import workers so it will be beneficial if we already have a skilled pool of workers here. We need more properly trained professionals like doctors and nurses who can actually meet global standards. We must also make sure the people who are getting trained receive ample opportunities here so they stay in the country

instead of going abroad otherwise we will lose out. Though it is being termed as the commercial capital of the country, Chittagong still has a long way to go. We need headquarters of private and state-owned businesses here in Chittagong as prompt decisions are required to speed up the business processes. The decision making power of the Managing Directors should be available at all times. This is especially required for the Shipping sector which can be further helped by the presence of the Ministryâ&#x20AC;&#x2122;s Head Office in this city. If this does not happen then the expected development will not take place and our progress will be stifled. If we can consider Bombay as a model for a city which is commercial capital then we need to build Chittagong as per that model. We can also look to New York or Karachi for what we should be following regarding the development of this city. The prerequisite for a world class port is a world class city. The growth of the city requires the right infrastructural facilities. To prevent the overflow of water during wetter seasons, dikes should be constructed around the city. We have to save the Karnaphuli and prevent water logging, so massive dredging will be required. The Bay Terminal is a must to raise the capacity of the Chittagong Port and the Deep Sea Port will also be necessary to cope with the incoming wave of business and exports.

FUTURE OF BANKING

In ten to twenty years time there will be no more fiat money and we will only be using virtual money . SHITANGSHU KUMAR SUR CHOWDHURY has been a career central banker for over three decades and four years. Son of Haripada Sur Chowdhury, S. K. Sur also has a Masters in English. Popularly known as SK Sur Chowdhury, he later on deserted literature and took an MBA, majoring in Finance and Accounting. Over the years, he acquired enviable excellence in financial sector regulation, supervision, crisis prevention & management and financial sector stability in home and abroad. At present he is an Alternate Director of ACU (Asian Clearing Union) while simultaneously, Chairman of APRACA (Asian Pacific Rural and Agricultural Credit Association), Supervisory Forum of SEANZA (South East Asia, New Zealand & Australia), Bangladesh Steering Committee of UNGCLN (United Nations Global Compact Network), Sovereign Bond Transection Execution Committee, Ministry of Finance, Govt. of Bangladesh and a member of Governing Board BIBM ( Bangladesh Institute of Bank Management) at length. Here are the excerpts of his recent interview with IBT where he discussed critical banking issues which will change the face of the industry in the future.

Q In the Banking arena currency money is becoming outdated because of the rise of plastic money and other financial instruments. As a Central Banker what is your take on this? With the massive transformation of payment and settlement system through digitization and technological innovation, the transition from fiat money to virtual money has been in place for more than last three decades all around the world. The concept of e-wallet even e-currency has been evolved. Fund transfer from one country to another even can be done in home while having a cup of coffee. Bangladesh is moving with the same tide and transforming the national payment and settlement process. Payments cards like Visa, Master and Q-Cash are now highly popular in country. ATMs are interoperable within all banks which means you make transaction from any ATM booth of Bangladesh with your plastic card. Introduction of electronic transfer has really set the payment at a new height. E-commerce and M-commerce are no more buzzwords nowadays. So, end-userâ&#x20AC;&#x2122;s intensity on virtual money and virtual payment is increasing rapidly. That has opened the door of potential with the door of risk and vulnerability. Cyber-security is the most burning concern in this regard. As the internet-forgery and cyber-fraudulence are increasing day by day, we are very much cautious in Bangladesh Bank as the regulator of national payment system. Besides, the introduction of Crypto Currency like Bitcoin has made the functions of regulator more challenging. Bangladesh will definitely be in fully automated and digitized payment platform yet we will be vigilant on the security issues.

Q During your stint in the Central Banker you have always favored the notion of CSR and its adaptability in Banking. What is your take in this regard? We have been pursuing for mainstreaming Corporate Social Responsibility

SK SUR CHOWDHURY

(CSR) in financial sector since 2008. Because, CSR has the true potential to contribute in the sustainable development of the country. CSR can contribute to that segment of the society which is difficult to be reached by the government development initiative. As we want to make our financial system sustainable, we have strived to make our banks and FIs responsible and sensitive to society and environment. CSR through financial sector embraces the sustainability on one side, broadens and deepens the inclusivity on the other. Banks can directly contribute to poverty reduction and improvement of living standard of underprivileged ones through CSR. CSR is not just philanthropy or benevolence, itâ&#x20AC;&#x2122;s the responsibility. Moreover, it not only benefits the receiver, but also helps the banks to improve the rapport building the potential clientele base, augments the brand value, reduces reputation risk.

Q You are very serious about money laundering and our foreign currency regime is quite conservative. Are there any plans on upgrading them? Foreign Exchange Regulation Act and Money Laundering Prevention Act have been amended in 2015. We have liberalized the foreign regime to meet the demand of concurrent time and national economy; yet, the amendment has strengthened supervisory authority and broadened the regulatory jurisdiction in foreign exchange. But, we have to keep in mind about our balance of trade. We

are now in a very strong position regarding our foreign exchange reserve which is more than $27 billion equivalent to at least 7 months import payments. Our balance of payment is favorable than earlier, but, we are very cautious. On the other hand, amendment of money laundering prevention act has made our Financial Intelligence Unit stronger and tougher. Guidelines on Money Laundering & Terrorist Financing Risk Management Guidelines for Banks have been revised this year. We have been in a sound position in mutual evaluation conducted by Asia-Pacific Group on Money Laundering. Our compliance to the standards of Financial Action Task Force has highly been appreciated by Egmont Group, the international network of FIUs. Our vision is to facilitate the business and economic activities to function more smoothly but in a secured environment.

Q What is your take on the rise of mobile financial services and agent banking? What are the next innovations in banking that we can look forward to? Everyday around Tk435 crore worth of transactions are taking place through mobile financial services in our country. 80% of the amount is being transferred from the urban areas to the rural areas. In the past we had observed money moving from the rural areas to the urban areas but now this flow has changed its direction. This phenomenon is helping to upgrade the standard of living of rural people. Moreover, efficiency of national resource allocation has been increased which indicates the efficacy of monetary policy implementation. Even, we have introduced agent banking in collaboration with the Government for the people who canâ&#x20AC;&#x2122;t afford having a mobile phone even in the remotest corner of the country. Thus, access to formal financial services has been broadened in diversified manner. We are liberal but cautious in providing the licenses to banks for mobile banking and agent banking as financial inclusion is in our heart. Over time these services will improve, then more and more people will be using financial services which

will improve their livelihood. We have just introduced Real Time Gross Settlement followed National Payment Switches, Automated Clearing Houses which have been remarkable for digital financial inclusion. Now within moments you can make transactions through RTGS. We are now planning to make these smoother and easier so that the service can reach to the every corner of the country.

Q What is your take on skill development or human resources development for facing future challenges? Human resource is the key to the success of any organization especially for the knowledge based entity like central bank. So, we have been very keen and assiduous in building up our human resources. We have tie up with local and international universities for providing professional masters in economics, finance and bank management to our employees. We have our own training academy in its own installation. We arrange training of trainers regularly to build our own training stuffs. We have set up HR Development Fund to support the continuous skill development. We support our employees in pursuing advanced masters or PhD. We focus on developing their quantitative and communication skill. We have also introduced e-learning modules from domestic and international sources like FSI Connect on banking supervision, payment system, money laundering prevention. The construction of our own world class HR Development Centre in Chittagong is underway. We recognize the innovation and hard work of our staffs by giving award to best employees of the year. We send our officials to abroad for international seminars, workshops and knowledge sharing programs which upgrade their outlooks. We are not only concentrated to the skill development of central bankers, but also to the commercial bankers by offering training to them in our academy and Bangladesh Institute of Bank Management. Because, we know sincere, honest and skilled human resources make the superiorsâ&#x20AC;&#x2122; task easier.

www.icebusinesstimes.net

BANKING CORNER

Chief Economist Unit, Bangladesh Bank organized a seminar on ‘Work for Human Development’ at Bangladesh Bank Head Office, Dhaka on 21 December 2015 where Professor Dr. Selim Jahan, Director of the Human Development Report Office (HDRO), UNDP presented a paper

Dr. Kaushik Basu, Senior Vice President and Chief Economist, the World Bank recently visited Bangladesh

NRB Bank Limited and National Exchange Company SLR (NEC) has signed an agreement on Electronic Fund Transfer (EFT) drawing arrangement on December 10, 2015

Bangladesh Bank Governor Atiur Rahman inaugurates Annual Conference for the CEOs of Banks and NBFIs

Al-Arafah Islami Bank organizes workshop on ‘Prevention of Money Laundering and Combating Financing of Terrorism’ at Cox’s Bazaar

BANKING CORNER

Dhaka Bank Limited sponsored 4th Dhaka Bank Victory Day Golf Tournament 2015 at the Bhatiary Golf & Country Club on December 16, 2015

Bangladesh Bank Signs Participating Agreement with Six Banks to Facilitate Long-term Financing under Financial Sector Support Project

Eastern Bank has launched EBL Skypay, an online payment system, to serve the growing e-commerce sector. Skypay will use the MasterCard payment gateway service

Md. Mehmood Husain, President and Managing Director of Bank Asia Limited receiving Sustainability Reporting Award (SRA) 2015, Runner Up 1 (Overseas) Trophy from Mr. Sarwono Kusumaatmadja, former Minister of the Environment of the Republic of Indonesia on December 15, 2015 at Hotel Mulia, Jakarta, Indonesia

NRBC Bank (NRB Commercial Bank Limited) recently donated a Cheque of Tk 25 lacs to the Underprivileged Childrenâ&#x20AC;&#x2122;s Education Programme, Banladesh (UCEP)

Ali Reza Ifthekhar, CEO and Managing Director, Eastern Bank Limited and Ziual Karim, Head of Brand and Communication, Eastern Bank Limited are greeting S K Sur Chowdhury, Deputy Governor, Bangladesh Bank for being nominated in the Mother Tressa Award as a Humanntarian Bankers

BANKING

Creating Value through Innovation Ali Reza Iftekhar Managing Director and CEO, Eastern Bank Limited

Ali Reza Iftekhar is the CEO and MD of Eastern Bank Limited (EBL) and is a game changer in the Bangladeshi financial sector. At the helm of affairs at EBL in the past eight years he has brought product and service innovations to rewrite how banking is done in the country and turned the bank from a good brand to one of the most valuable financial brands. Under his leadership, the bank has received many accolades including the “Best Retail Bank in Bangladesh” award from The Asian Banker for three consecutive years 2013, 2014 and 2015; the IFC Global Award for the Best Partner for Working Capital Systemic Solution; ICSB National Award 2014 for Corporate Governance Excellence; the Best Financial Institution 2010 at the DHL-Daily Star Bangladesh Business Award. He is also heading the Association of Bankers, Bangladesh (ABB), the apex body for banking professionals of the country, as its chairman for the term of 2014–15. Having a banking career spanning over 30 years, his personal achievements include CEO of the Year 2012 by Asian HR Leadership Award held in Dubai, Credit Specialist

Certificate by world renowned Omega in UK, Certificate of Recognition in International Trade Skill Assessment Program jointly conducted by Standard Chartered Group London and ICC. A 1982 graduate from the University of Dhaka in Marketing, his specialization in risk management, corporate banking, operations and retail made him one of the leading bankers of the country. To keep him updated with the current management thoughts, he attended Harvard Business School Program on Leadership in Financial Organizations in 2012, participated in the Strategic Leadership Program at University of Oxford, UK in 2013, and took part in Executive Program in Corporate Governance and Strategic Management at Haas School of Business, University of California, Berkeley in 2014 in 2015, he has participated in the Value Creation in Banking and Strategic Management Program at INSEAD Business School, France.

Q You have been consistently

innovating products and services from a long time now. Recently, you have launched Sky Pay. Would you please tell us about its features and how this is going to simplify banking for customers?

My objective is to modernize banking services, simplify its processes and make people’s lives easier. As the world is being digitized, we wanted to bring banking to customers’ handsets and make banking available on the go. This mobile app, easy to install in all devises, will provide banking services such as mobile banking, internet banking and various

ALI REZA IFTEKHAR

With the financial inclusion comes the responsibility of monitoring where the money is coming from and where it is going.

payment solutions. From checking balances, bank transfers, ATM and locating branch locations this app offers a plethora of services and options to customers. The software was developed locally and then sent to London for security checks. After getting their certification we launched it here. Considering Dhaka’s immovable traffic, we want our customers to do most of their banking on their mobile phone. This product is the first of its kind in Bangladesh and should not be confused with mobile banking. This is not just a payment gateway; it is a comprehensive banking tool for smart phone users. We will continuously test and upgrade the processes and hopefully we will come to a stage when the need for customers to visit banks will be eliminated.

Q We are living in a globalized world now where there is cross boarder flow of funds through wire transfer enabled by increasing ease of access to internet, smartcard and mobile phone based technology. This technology based money transfer has brought in new surveillance challenges for the financial institutions. In this changed situation and particularly after Paris tragedy, money laundering and terrorist financing have become major threats to the integrity of financial system, and they are not just issues of concern locally.What is your take on combating money laundering and terrorist financing?

No system is fully watertight to stop the entrance of black money into the system. Having said that, I would say that it is a continuous process and a matter of keeping up surveillances all the time. You can never eliminate crime, but you can minimize it to a negligible level. We are now extra vigilant and making all possible inspections regarding customers. While it is important to know who we are banking with, it is also important to know who my colleagues are. If an employee is seen expending beyond his/her means then it is matter of concern and this should be investigated. Digital solutions are required to stop terrorist financing and there are many sanctions from the UN, USA Europe and Australia which need to be incorporated into our systems. Manually it is impossible to scan everything. We have already installed security software which will be active from January the 1st of 2016. It is costly but we have to consider the risk factor in terms of both financial and non-financial losses that can occur from forgery and other fraudulent activities.

welcome this competition as long as it isn’t unhealthy. Banks have to improve their marketing capabilities and product quality. They are evolving and in a few years’ time banks without IT driven product solutions will not be able to survive.

Q Financial inclusion is the

buzzword in the sector now. What is your take on the current unbanked population?

Everyone talks about financial inclusion but we also have to look at the surge of terrorism financing issues. With the financial inclusion comes the responsibility of monitoring where the money is coming from and where it is going. Financial inclusion does not necessarily mean going to fur flung areas. Don’t get me wrong, I am not against bringing marginalized people under the banking network. Have we covered the large unbanked population of major cities of the country? As commercial banks we cannot really on moving into remote areas for that involves costs and, you know, at the end of the day we have to pay dividends to our stakeholders. Banks can practice CSR, not charity.

Q You are a market leader when it comes to providing loans for students going abroad to pursue higher studies. What are your future plans in student loan products?

EBL is a market leader in student banking. The student loans are created in favor of their parents. This is done for practical reasons. If we do it in favor of the students, once they leave the country it will be difficult for us to reach them and a lot of those loans may become bad loans. If Bangladeshi universities come forward and tie up with us we can give loans to students pursuing higher studies. Once they start their working life they can repay the loans.

Q With 39 commercial banks are we overbanked?

I am not concerned about the numbers. In fact, a healthy competition sharpens an institution. I www.icebusinesstimes.net

PHOTO STORY

Banking Fair Bangladesh 2015

The Step towards By Asaduzzaman Photographs by Kazi Mukul

Usually fairs in Bangladesh are treated in a light way; traditionally it means a mass gathering of consumer products. Nevertheless, a Banking Fair is definitely more than some mere exposition. It has a broader goal to achieve, a serious message to disseminate. In the age of constant virtual connectivity through social media, fairs can work as the

platform of change of thoughts and deeds since it can bring mass consumers and service providers together and let them interact. At the same time, it helps people perceive banking from different dimensions and works as a vehicle to showcase and promote various banking products in a more effective way. In this respect, Banking Fair-2015 is one

BANKING FAIR BANGLADESH 2015

a Banking Nation such endeavor by the Bangladesh Bank that has pulled a lot of crowd and made people aware about various banking services, products and banking regulations. The mission statement of the fair was to build a banking nation, in order to ensure macroeconomic stability. It opened a new chapter in our economic and

business history by changing our mindset towards a more positive note about the financial sector. In this way, it created windows of opportunities to try and adopt new business practices. The resilience of the people of our country is well-known. They embrace anything good wholeheartedly. Considering that fact, this fair was

well-accepted and helped people empower themselves with adequate knowledge about the financial sector to do better business and more transparent transactions. Bangladesh Bank has been working to implement necessary measures for the last six years to bring the huge pool of unbanked people under the umbrella www.icebusinesstimes.net

PHOTO STORY

of formal banking services. This helps the central bank play a vital role in poverty reductions, besides fulfilling its mandated responsibilities with the objective of making the economic growth pro-poor and sustainable, and reaching its benefit to the mass people of the lower pyramid. In pursuit of the same, the strategy of participatory monetary policy formulation has been adopted by the Bangladesh Bank. Sufficient amount of visible loans have been ensured to the productive economic activities and environment friendly sectors, including the agriculture, Small, and Medium Enterprise (SME) sectors. For the women, the low interest rated institutional credit opportunities in the agriculture and SME sectors have been ensured aiming to enhance the women empowerment and their participation in the mainstream economic activities. Financial literacy program has been launched with a view to providing the mass people the knowledge of financial sector, its institutions, and its products and services. Scheduled banks are operating school banking and mobile financial services have been

BANKING FAIR BANGLADESH 2015

Urban(2355)

Rural(1089)

Male(56620)

Female(8880)

Rural(1215)

22%

14%

32%

Urban(4203)

68%

78%

86%

Branch Location of Banks

No. of ATM Booth

Gender of employees in Banks

Urban(18942653)

Rural (6929694)

27%

73%

Savings deposit Account in Urban & Rural Setup

Graphs shown here are prepared from the statistics of 28 banks provided in a journal named Shubornobhumi published by Bangladesh Bank during the Banking Fair 2015

www.icebusinesstimes.net

PHOTO STORY

Urban (895789)

Rural (230963)

20%

Available(15)

Not Available(13)

80% 46% 54%

No. of Loan Account in Urban & Rural Areas

Mobile Banking Facilites

activated to ensure the availability of banking products and services. In accordance with this, for the first time in this subcontinent, Bangladesh Bank has organized a 'National Banking Fair'. A slogan and a logo were be made in line with the significance of the fair. This theme was easily communicable to the mass people. Bangla Academy was chosen as the venue for the fair. This place is considered to be the nerve centre of all our cultural activities, thanks in no small part to the Ekushey Book Fair every year. After the banking fair, this venue has become new turning point of business and economy. This acted as a major tool to make public aware about banking products and services and thus expanded the financial literacy program of the Bangladesh Bank at the national level. This also served as an open conduit for extending the banking sector, its products and services at the national level, ensuring financial inclusion, encouraging customersâ&#x20AC;&#x2122; optimization of the use of technology in the banking sector, etc. The fair aimed at building a new rapport with the young clients and bringing services to their doorsteps. There were different stalls for entities like the Taka Museum, Bangladesh Security Printing Press (How money is printed), various publications of Bangladesh Bank, Commemorative coins and notes sale, Services provided to the mass people by the

Bangladesh Bank. With a plethora of interactive programs like seminars, debate competition, workshops and roundtables, the central bank added a new momentum in imparting financial literacy among the common people. Expressing his reaction Dr. Atiur Rahman told ICE Business times that this fair is a new beginning and will act as a conduit for pro-people banking system. Deputy Governor S K Sur Chowdhury said that this fair created a benchmark for imparting financial literacy. Participation of the youth was very enterprising to see, he added. Among the visitors were a lot of young people, entrepreneurs and women where all of the banks and other renowned financial institutions showcased their services and products.

VISION 2030

Vision 2030 for Regional Trade

Is It Making Headway? By Asaduzzaman

Abdul Matlub Ahmad President, FBCCI

All around the world, global integration of trade and investment through enhanced trade and wider connectivity has become a key instrument to reap higher economic benefits. However, even with this widely accepted notion, we have seen a reverse trend in the case of South Asian Association for Regional Cooperation (SAARC) countries. Growth of international trade in South Asian nations has been fraught with barriers which have lead to a surge in informal trade across borders. The removal of these barriers has become increasingly difficult due to the lack of effective commitments and political resilience along with deep rooted mindset issues. According to the World Trade Organization (WTO), statistics comparing global trade to SAARC intraregional trade was only around 5.11% in the last year while in 2005 it was around 5.84%. The signs are alarming and as such steps are being taken to remedy this situation to boost the connectivity between the countries of the region. Recently Bangladesh, Bhutan, India and Nepal (BBIN) inked a Motor Vehicle Agreement (MVA) which is regarded as a milestone. The Federation of Bangladesh Chambers of Commerce & Industries (FBCCI), the apex body of trade and business in Bangladesh has formulated a proposal on South Asian Free Trade Agreement (SAPTA): Vision 2030. Their proposal for effective regional trade facilitations mechanisms highlights and discusses the issues of Non Tariff Barriers (NTB) and Non Tariff Measures (NTMs) in the region. The proposal comes in preparation for the meeting of the SAPTA (South Asia Free Trade Area) committee scheduled to be held in Kabul in January 2016.

FBCCI

Vision 2030 of FBCCI on SAPTA has proposed the following: 1. Introduction of multiple Visa to ensure hassle free travelling within the region. 2. Harmonization of cross border trade regulations. 3. Harmonized tariff nomenclature at 8digit level should be created based on the Harmonized Commodity Description and Coding System (HS) by an end date. 4. Simplification of customs procedures to reduce time and costs of each transaction at customs points. 5. Regional customs action plan should be implemented by an end date. 6. Transport and communication in port and warehouse facilities should be developed to benchmark levels within specified time frames. 7. SAARC trade infrastructure development fund should be created. 8. Online publications of designated focal points, respective tariff schedules, NTMs and regulations on Rule of origin. 9. Labeling requirements, customs clearances and appeal procedures should be set up by an end date. 10. Long term export and import contracts for public and private sector procurements should be encouraged and facilitated to expedite and sustain mutual trade support chain in the region. 11. Acceptance of certificates issued by respective preselected designated institutions should be ensured in all ports of entry as an interim measure. 12. MFN and national treatment should be accorded in respect of registration, packing and labeling and testing

requirements along with charges and fees thereof. 13. Fees levied should only be on the cost of services rendered and shall not be used for fiscal purposes or as protection to domestic products. 14. Import licensing and banking services should also be ensured to make import and export transactions simpler and easier. 15. Ensure exchange of information on the prevention and repression of smuggling, trafficking of narcotics and psychotropic substances and other custom frauds. 16. Appropriate transport and transit protocol with regulations on fees and changes with harmonized and simplified custom procedure as prescribed in WCO annex-E should be operational. 17. SAARC connectivity through tourism, cultural exchange, and media exposure should be intensified in areas. This should be applied to investment policies, tourism development planning, human resources development and environment and cultural preservation to achieve continued and long term viability of the SAARC fraternity 18. The Governments should take effective steps to conclude a regional energy trade agreement among SAPTA members specially Bangladesh-India–Nepal-Bhuta n (and Myanmar) to foster and facilitate regional energy and trade. Billions of dollars worth of illegal trade are happening across borders just because official channels face tariff barriers, high transport costs, domestic policy distortions and so on. As such a report from the “Indian Council for Research on International Economic Relations” has mention that SAPTA could be effective in bringing about a shift in trade from the illegal channels

to legal channels. The report also said that inadequate transport and transit systems that have been in existence between India and her neighboring countries have been a major constraint in enhancing trade through legal channels. If infrastructural development is not undertaken on an urgent basis, unofficial trade will continue to be more attractive. The implementation of SAPTA agreements (since 2006) has been instrumental at promoting regional trade, and larger economic cooperation among the countries of the SAARC region. The key bilateral initiatives have taken the form of the Indo-Nepal and Indo-Bhutan Trade Agreements, India-Sri Lanka Free Trade Area, India-Singapore Comprehensive Economic Cooperation, BIMSTEC and the India-ASEAN Framework Agreement on Economic Cooperation. With an eye to get benefits from SAPTA, the FBCCI have come up with the proposal for the government but it needs multilateral cooperation and an active role of the government to makes things work. Abdul Matlub Ahmad, President of the FBCCI spoke to IBT in this regard. He mentioned that Bangladesh has progressed more than other countries in a sense that we have reduced many of our tariffs. “If you look at SAPTA and what we are planning by 2020, then countries are supposed to reduce tariffs to zero on 95% of their commodity items. This idea has already been accepted. We are progressing into 2016 and already 60 to 70% of our tariff lines have been reduced to the level which was agreed upon. India has been cooperative in this regard with some LDC countries and Bangladesh has been one of the beneficiaries of this.” He opined that for SAARC nations it is the time to move forward and confidently said that the SAPTA agreement that has been forecasted by FBCCI will be successfully implemented which will hopefully appeal to other countries to follow.

FEATURE

Chittagong Myanmar Connectivity By Pankaj Dastider

Myanmar which sits at the cross-roads of Asiaâ&#x20AC;&#x2122;s great civilizations of India and China, looks out onto the vast Indian Ocean next to Thailand. One of Southeast Asiaâ&#x20AC;&#x2122;s largest and most diverse countries, Myanmar stretches from the sparkling islands of the Andaman Sea in the south right up into the Eastern Himalayan mountain range. To this day Myanmar remains one of the most mysterious and undiscovered destinations in the world. A land of breathtaking beauty and charm yet is only recently emerging into the modern world. For centuries Myanmar has exemplified all thatâ&#x20AC;&#x2122;s exotic about the East. It amazed Marco Polo in the 13th century, the Portuguese 300 years later and the British after yet another three centuries. Virtually shut off from the outside world by political and economic instability since achieving independence from the British Empire in 1948, and under military rule until

the 2010 elections ushered in a civilian government, the country is now undergoing political transition. It is quite reasonable that the regional economic cooperation is increasingly gaining popularity in the present world. Bangladesh, Chittagong in particular, is very suitably located to provide transit of goods through her territory and earn handsome foreign currency on a sustainable basis. The resolution to the maritime boundary dispute with Myanmar has removed a major obstacle to bilateral ties and opened up a grand opportunity to expand the relationship. The Rohingya issue should not become an impediment to the growth of the Bangladesh-Myanmar relationship which must move forward under all circumstances, experts and diplomats said at a roundtable in Chittagong in 2012. Bangladesh Prime Minister Sheikh Hasina during her three day official visit to Myanmar in the December of

BANGLADESH-MYANMAR

2011 called for boosting border trade with the country and evolving a fresh era in the bilateral relations with the southeastern neighbor particularly in the era of trade and business. As neighbors, Bangladesh and Myanmar have been natural partners in trade since the earliest of times. Let us now revive, rejuvenate and boost that partnership, she said, calling for good connectivity by road, rail, water and air for collaboration on a journey of shared prosperity. Since then, four years have passed by. Myanmar people elected Aung San Suu Kyi, leader of the National League for Democracy (NLD), to lead the country in the November 08, 2015 general election. Sheikh Hasina was the first neighboring country leader to congratulate Suu Kyi’s landslide victory. The government of Sheikh Hasina has paved the way for greater cooperation between Bangladesh and Myanmar which acted as a catalyst in the change of Myanmar’s attitude, especially in July last year, giving back two members of the Myanmar Army to the country abducted by miscreants from the border area of Bandarban hill district, sending relief materials for the flood victims of Myanmar in August last, and operations by the Border Guard Bangladesh (BGB) against the separatist group of the Arakan Army at the remote area of Bandarban. It is time for the strengthening of the political, economic and strategic relations between the two countries to tap the potential for the benefit of the people of the two the neighbors. Another important topic is formation of a tri-nations committee involving China and Myanmar for implementation of the proposed road and rail links between Bangladesh, Myanmar and China. Bangladesh raised the issue with the Chinese authorities for working together in a coordinated way for the implementation of road and rail links. China has agreed to help implement the project. Myanmar is currently dominated by the allies of President Thein Sein, a former military general who is part of a junta that gave up power to a semi-civilian government in early 2011. It is likely that the parliament would be convened towards the end of

he said that the initiative will increase progress and capacity of collaboration in the region. The relation between the two countries has improved a lot. Myanmar has agreed to sign two MoUs (Memorandum of Understanding) regarding the security cooperation with Bangladesh. The two MoUs on Land Boundary Cooperation and Security Dialogue and Cooperation have been finalized for signing. Columnist Rahman Jahangir informs that a project to be financed by Bangladesh Government named Study and Design for Bangladesh-Myanmar link road is underway to be implemented in two phases. The first phase would involve construction of the two-kilometer road between Ramu and Gundum in Bangladesh, and 23 kilometers of road between Taungbro and Bolibazar in Rakhine state of Myanmar. The second phase would involve construction of 110 kilometers of road To this day Myanmar remains between Bolibazar and one of the most mysterious and Kyanktou in Myanmar and undiscovered destinations in the there is already a road link between Kyanktou and world. A land of breathtaking Kunming, which is located beauty and charm yet is only in China’s Yunnan recently emerging into the province. modern world. Roads Transport and Bridges Minister, Obaidul Quader, visited the Gundum Moitri sector are planning to set up garment Setu (Friendship Bridge) to be industries in Myanmar as the resource constructed at the Ukhia border on rich Southeast Asian country is October 24, 2015. On that day he told opening itself up to the international the media that the four-lane investors. construction work of the two Myanmar having common border with kilometer road from Ukhia’s Balukhali Bangladesh has enjoyed the Custom station to the Gundum border transshipment facilities in the would start soon and be completed by Chittagong port as the country used the middle of 2017. He said that the the port recently to transport two neighboring countries would containerized cargo to India. further strengthen economic and Myanmar’s Deputy Minister of commercial cultural ties. Construction Commerce Dr. Pwint San visited Dhaka of the road was scheduled to start in October 2014 and anticipated more from sometime this December at the trade with Bangladesh in both the cost of Tk 840 million. individual and government levels. “We The road’s initial draft proposal was see Bangladesh as a good trading of a two-lane one. As the draft partner. We always encourage people proposal was placed in the cabinet to people and government to meeting the Prime Minister said the government communication,” he said road will be very vital for link with during his two-day stay in Dhaka to Myanmar and so it was up-graded to attend the ICC international four lane road. The project cost during conference arranged by the approval in the ECNEC (Executive International Chamber of Committee of the National Economic Commerce-Bangladesh (ICC-B). About Council) at Tk 550 million which later the proposed BCIM Economic Corridor January 2016. The Nobel Peace laureate Suu Kyi, however, cannot become president of the country, as a change in Myanmar’s constitution prevents anyone with foreign family members from becoming the nation’s president. Her late husband was a British national and her son a British passport holder. Myanmar, formerly known as Burma, is our close neighbor. Chittagong has a historical relationship with Myanmar. Thousands of Bengalis from the greater Chittagong region used to go to the then Burma for jobs and businesses. Despite the bitter Rohingya refugee problem, the people and government of Bangladesh have always sought greater trade, road and rail networks with Myanmar to boost up the economic relations. Bangladeshi capital market experts are mulling to set up commodities exchange while some key players in the Bangladesh readymade garment

www.icebusinesstimes.net

FEATURE

rose up to Tk 840 million, the minister said. Bangladesh is expected to enter the Trans Asian Railway corridor during the tenure of the present government as it has undertaken the 128 kilometer Dohazari-Cox’s Bazar-Gundum railway in the border of Myanmar by July-September 2016. The project after long wait has got pace as the government has started releasing fund for it. It will be a dual-gauge railway. The government has signed an agreement with the Asian Development Bank which will provide a major chunk of fund for the project. The United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) in April 1992 in a meeting endorsed the Trans Asian Railway (TAR-1) route – Gede-Dorshona-Ishwardi-Jamtoli-Joyde vpur-Tongi-Akhaura-Chittagong-Dohaz ari-Gundum-Myanmar. The ESCAP also suggested two other routes but the government of Bangladesh prefers the TAR-1 as it will connect both neighboring India and Myanmar. As per survey by Myanmar in 1917-1919 a railway line was constructed between Chittagong and Dohazari in Bangladesh aiming at connecting Bangladesh’s major port of Chittagong with Myanmar’s Aquiab (now Sittwe). Myanmar encouraged Bangladesh’s businesses to invest in its agricultural industry. The Myanmar government then said it was ready to allow the long term leasing of land for Bangladeshi entrepreneurs in the agriculture sector. Officials also discussed the potentials for setting up wholesale border markets at the Teknaf-Maungdaw border point. A joint committee on coast shipping was also formed. Policy analysts have always emphasized on the implementation of the economic corridor involving Bangladesh, China, India and Myanmar (BCIM) stating that it could usher in new opportunities for this region. It could also impact immensely on Bangladesh’s overall socio-economic condition. Alongside the BCIM-corridor initiative, a plan is also there to establish a maritime ‘Silk Route’ across the Bay of Bengal to link with countries in the rims of the bay and the Indian Ocean. Analysts think that the initiatives

being taken under the ambit of BCIM cooperation forum hold huge potential for expanding trade and investment among the four Asian countries. Two of them are fast-growing economies – China and India, and another two are developing ones – Bangladesh and Myanmar. Cooperation in power and energy, transport infrastructure, shipping, tourism, trade, business and investment will gain momentum in the event of building the planned economic corridor. But inadequate market access, non-tariff barriers, insufficient physical connectivity and lack of favorable banking and financial mechanisms might pose challenges at sector level. Moazzem Hossain, editor of The Financial Express, who visited China by the end of 2014, said in his reflections on the BCIM-EC, “If the area of the BCIM-EC – running from Yunnan province of China with Kunming as the former’s capital to Kolkata, the capital of Indian state of Pashchimbanga and covering India’s north eastern provinces and linking Mandalay in Myanmar and Dhaka and Chittagong in Bangladesh – is

Chittagong has a historical relationship with Myanmar. Thousands of Bengalis from the greater Chittagong region used to go to the then Burma for jobs and businesses.

considered, the combined population of this regional grouping would be 440 million. And intra-regional trade among the countries of the BCIM-EC amounted to 5.0 per cent of the total BCIM trade in 2012. This is strikingly low at a disproportionate level, if compared to the Association of South East Asian Nations (ASEAN) where 35 per cent of the total trade is intra-regional”. Dr. Muinul Islam, professor of the Department of Economics at Chittagong University, said “Eastern South Asia and the neighboring regions of China, Myanmar and Thailand can be legitimately termed as the potential economic hinterland of the sea port of Chittagong. From many areas of Myanmar, Thailand and China the sea coast of Chittagong and Cox’s Bazar is geographically the nearest compared to the sea coast of other regional countries. This unique advantage of the geographical location of Bangladesh should not remain unutilized because of political hindrances standing in the way of regional sharing of connectivity networks”. He said that the implementation of the proposed deep sea port in Sonadia or Matanbari still remains uncertain due to geo-political strategic reasons. On the other hand, the Sittwe deep sea port of Myanmar is nearing completion. When we are considering provision of transit and transshipment to India, the country has already confirmed an alternative way of transporting its cargo to its northeastern region. India, on her part, will have sea access via Sittwe port of Myanmar in the Rakhine state for its northeastern states known as ‘Seven Sisters’. India is developing the Sittwe port as per an agreement signed between the two countries in April 2008. The project is aimed at connecting its northeast state of Mizoram with Myanmar via Kaladan River route, giving this region a direct access to Southeast Asia as well as the main land India by sea, opined Ataul Karim Chowdhury, Overseas Fellow of the World Bank.

The writer can be reached at

pankajdastider@gmail.com

SPOTLIGHT: CHITTAGONG

Chittagong, it should bee noted, is one of the oldest ports of the sub-continent, older than Calcutta, Mumbai and Chennai.

Professor Dr. Anupam Sen Vice Chancellor, Premier University, Chittagong Professor Dr. Anupam Sen is the son of Late Snehalata Sen and Late Birendra Lal Sen M.A. (English), B.L. He completed his Masters in Sociology from the University of Dhaka in 1963 and PhD in the same subject from McMaster University, Canada in 1979. Dr. Sen has been holding the position of Vice Chancellor at Premier University in Chittagong since the 1st of October, 2006. He was a former Fellow (Honorary) at the Bangladesh Institute of Development Studies, Dhaka; a former Director in the Board of Directors of Bangladesh Bank; a former Director at the Institute of Bangladesh Studies in Rajshahi University and a life Member of Bangiya Sahitya Parishad, Kolkata. He was awarded Ekushe Padak in Education in 2013. Dr. Sen is renowned for his secular thoughts and is a keen observer of the trends our society goes through.

Q Sociologically Chittagong people are different from the people from other regions in Bangladesh. Whatâ&#x20AC;&#x2122;s your take on this? The city is surrounded by the seas and mountains. It is unique because of its panoramic natural beauty. It is said that the alluvial plates that accommodate the Dhaka-Faridpur region are some 10,000 to 50,000 years old. However, the geology of Chittagong and its surrounding regions took a few hundred thousand years to form. If we look at the development of Islam in this area it is quite different from that

PROFESSOR DR. ANUPAM SEN

in other areas of the subcontinent. The Sufis who came to this region were known as “Baro Aulias” and had contributed a lot to the formation of a non-communal society through their love and preaching. Religion came here to preach love and affection. There was a thriving Buddhist culture in Chittagong as well. We even had a Buddhist University called Pundit Bihar. Though Chittagong is blessed with diversity of religious cultures, it enjoys religious harmony. The earliest form of Bengali language can be traced to Bauddha Charyya and Doha songs which were discovered in Nepal A few Charyya songs were composed by Chittagong poets, such as Kanhappa and Harippa. The dialect used in Chittagong is different from those in Dhaka, Sylhet and North Bengal. The reason is Chittagong’s proximity to Mianmar’s Arakan and its impact on the culture of Chittagong. The Royal Court of Arakan provided shelter to Bengal pacts. Padmavati was written here by the great medieval poet Alawol. The governors of Chittagong Division Chuti Khan and Pargal Khan encouraged development of Bengali literature. Srikar Nandy of Chittagong translated the Epic Mahabharata which is known as Paragali Mahabharat. In 1498 Vasco-Da-Gama reached Cochcin. The Portuguese reached Chittagong in the early sixteenth century. They liked Chittagong port. They referred to Chittagong as a Grand Port. For a brief period Chittagong and its adjacent areas were occupied by the Portuguese and Mogs. A Portuguese pirate Gozalves took conrol of the big island Sandwip. Chittagong was reconquered by the Maghuls and the Portuguese pirates were driven out in the mid seventeenth century. A big section of the native populations was, however, converted to Catholic Charch. Many of them who lived in Feeringhee Bazar and Patharghata areas of Chittagong City left for Canada and Australia during the sixties and seventies of the last century. Chittagong, it should bee noted, is one of the oldest ports of the sub-continent, older than Calcutta, Mumbai and Chennai. It was visited by Marco-Polo and Ibn-Batuta.

Q It is interesting that the anti-British armed struggle as well as the Bangladesh liberation struggle, both formally started in Chittagong. What are your comments on this? The anti-British struggle in Chittagong started in 1930 when Surya Sen raided the British armory and freed Chittagong of British control for three days. The British fled and took shelter on their boats in the sea. One of Surya Sen’s followers, Pritilata Waddedar, raided the European Club in 1934. She is hailed as the Joan of Arc of the subcontinent as she is the first woman to become a martyr for the freedom of the people. As for our Liberation War struggles, I

Road to resist movement of arms and ammunitions. Major Rafique played an important role on March 26 to encircle Chittagong Cantonment assisted by revolting Bengal EPRs who came out to join the struggle of independence. Chittagong city remained free till March 30.

Q What is your take on the globalization, education and transformation of the society in Chittagong? There are 700,000 students who are studying in private universities now. I am now associated with the Premier University which is also a private university. It was started in 2000 and now it has 200 crores of assets from the campus building to the 6000 computers the students can use. We also have strong IT and Architecture departments. For our country to reach the global level it is essential that we emphasize on improving skill development and education. We have to worry about the language learning state of our students. They must improve their English but not at the expense of their Bangla language skills. The new generation has a better grasp of English and they understand and accept the fact that it is required in this new interconnected world we have. What I have also observed is the reduced respect and apathy people have for each other nowadays. This alienation has become quite visible over time. There is also the “Quick rich” mentality of the entrepreneurs; even if their business get a 15-17% return, they will still covet a 30-40% return. The society and politics of Chittagong is very diverse. We see here extreme liberal and rightist forces co-existing.

The new generation has a better grasp of English and they understand and accept the fact that it is required in this new interconnected world we have. was very active in the 1969 mass upsurge; I was a Lecturer of Dhaka University from 1966 to 1968. I joined Chittagong University in 1969 as an Assistant Professor. In January, 71 I became the General Secretary of Chittagong University Teachers’ Association. The Teachers’ Association organized a nonstop agitational programme at Laldighi Moidan from March 17 to 23 for the rights of Bengalees. Dr. Kamal A Khan, Chief Medical officer at Port Hospital who was a very cultured man helped us a lot; Prof. Maomtaz Uddin Ahmed, now the cultural attachee of Bangladesh Mission at New Work was with us. We shifted the agitation on 24 March at Parade ground. There we learnt that the arms and ammunitions were being unloaded from the Swat Ship. The people spontaneously resisted the unloading of arms. On March 25 people made a blockade on Agrabad

www.icebusinesstimes.net

TOURISM INDUSTRY

Bangladesh has unlimited potential to attract tourist and can earn billions worth dollars with a prospective backward linkages industry? What are the bottlenecks prevailing in the sector? The lack of time-appropriate government policy to attract international visitors was taking a toll on the sector in the past. Political turbulence is another thing that rubbed more salt into the wound. However, things are looking up. In the current fiscal year, an allocation of Tk 200 crores for Bangladesh Tourism Board (BTB) has been made, which would be spent in next three years. The government has already declared 2016 to be the year of tourism. BTB is planning to come up with more campaigns and promote the whole thing through their various channels and activities. From TOAB, we have put down our proposals to the steering committee which has the Finance Minister AMA Muhith. We hope better days are ahead for the tourism sector as a huge number of people are visiting exotic travel destinations inside the country. Nevertheless, to mitigate the huge loss incurred in last three consecutive years, we have sought for refinancing scheme from the central bank. We appreciate the measures that have already been taken to boost the confidence of the investors. Nevertheless, we need to come up with a holistic plan for the betterment of the industry. For example, what about the companies that are already bankrupt grappled with the losses incurred in last couple of years? Turning back on them is not going to set bad examples for future investors. From TOAB, we would expect the government to come up with financial support through banks so that these companies can get back their lost glory. Last but not least, we must understand the importance of PR and networking to revive our rapports with international clients. Bangladeshi embassies in different countries can help bridge the gap in this regard.

Professor Dr. Akbaruddin Ahmed President, Travel and Tour Operators Association of Bangladesh(TOAB)

â&#x20AC;&#x153;In the current fiscal year, an allocation of Tk 200 crores for Bangladesh Tourism Board (BTB) has been made, which would be spent in next three years.â&#x20AC;? 52

Is it ironic that there are more out bound travelers from Bangladesh, which is causing a money-drain outside the country?

Countries like Spain and Thailand had 52 million and 37 million tourists this year respectively. They have a competitive advantage over Bangladesh on many accounts. For example, our airport lacks infrastructural amenities that can please international travelers. Also, the hospitality industry faces a severe dearth of skilled professionals. There is not alternate to professionalism, be it a service provider or an association representing any particular sector.

Of Identity And Prosperity who we COVER STORY

By Irad Mustafa and Asaduzzaman

are & where we stand Our country started its journey on the 16th of December in 1971 and is now a matured state with 44 years under its belt. With around $35 billion dollars of exports, Bangladesh now has three or more burgeoning sectors which can lead it into prosperity.

WHO WE ARE

On the way to implementing its development agenda, Bangladesh will face several challenges. Turning its demographic mayhem into demographic development is a must and training skilled labor will further help that cause. Other areas which will require scrutiny are connectivity corridors with neighboring nations, energy security and infrastructural development. Renowned economist, Mohiuddin Alamgir forwarded the notion that shifting growth trends since the 1970s and recent growth performances were achieved against numerous odds. Having already come such a long way, we can be optimistic about future growth targets. The Bangladeshi economy is capable of crossing the lower middle income threshold by 2021 and achieving the upper middle income status by 2030 on the way to becoming a developed country by 2040 and beyond provided we can hurdle all the barriers which come along the way.

He has also put forward a set of imperatives or pillars that Bangladesh will have to concentrate on if we are to meet our desired development goals: 1. 2. 3. 4.

Financial market integration Microfinance for vulnerable groups Meso-finance for SMEs Capital market development with built in regulations and stabilizers 5. Greater harmony between fiscal and monetary policy

6. Complete independence of Bangladesh Bank in conducting the monetary policy 7. Capital amount convertibility with oversight 8. Continuous strengthening of the banking supervision capacity of the Bangladesh Bank as all financial institutions are brought under its direct super vision and control 9. Privatization of all state owned banks except one for payments purposes 10. Discontinue lending for political purposes. Progress on boosting shared prosperity of the country needs to be further enhanced in the near-term by sustaining GDP and remittances growth, creating jobs, limiting inflation, and improving the quality of public service delivery. Private investments need to increase significantly to achieve the governmentâ&#x20AC;&#x2122;s 7% growth target for Fiscal Year 16 (FY16). As the country takes its first steps into another fiscal year and away from Fiscal Year 2015 (FY15), stronger attention is needed in key areas â&#x20AC;&#x201C; (i) Safety and labor rights compliances in the garments industry must be upheld, (ii) completion of the critical ongoing road, electricity and gas development projects, (iii) implementation of Public Private Partnership law, (iv) improvements in the efficiency and solvency of the banking sector through better supervision and oversight by the Bangladesh Bank along with corporate governance reforms in public banks, and (v) easier access to serviced land to local and foreign investors through the Special Economic Zones (SEZs). www.icebusinesstimes.net

COVER STORY

24%

4% 7%

14% 29%

Community, Social and personal Services Health & Social works Education Public Administration and defense Real estate, renting and business activities Financial intermediries Wholesale and retail trade Hotel & Restaurants Transport storage and communication

Service Construction Power, Gas, Water Supply

Mining and Quaring Manufacturing

Animal Farming Fishing

11%

25% 6% 69%

Industry

Growth Trend Comparisn in South Asia

Source: World Economic Outlook, April 2015, IMF

Forest and realeted services Crops and horticulture

11%

55%

23%

Agriculture

WHERE WE STAND

6.0

6.1

5.6

5.5

5.0

5.0 4.5 FY15

FY14

FY13

FY12

FY11

FY10

FY09

FY08

FY07

FY06

4.0

Source: Bangladesh Bureau of Statistics

Of the 6.5% overall provisional growth estimate for FY15, agriculture contributed 0.5% points (compared to 0.7% points in FY14), the estimated industry contribution is 2.7% (compared to 2.3% point in FY14 and 2.6 in FY13), and the contribution of the services sector is estimated to be 3% points, compared to 2.9 in FY14. Over the last six years GDP growth was on average 6.2%. This was better than the average growth in other Asian nations like Pakistan, Indonesia and Vietnam but well behind the average growth in larger economies like China, India and Sri Lanka. Differences in investment rates appear to be a key to explaining the differences in growth performance.

Source: WDI and MFMod

Poverty reduction has continued at its historic pace. Poverty headcount based on US$ 1.25 per day PPP was projected to fall from 43.5% in 2010 to 38.4% in 2015. This steady drop can mainly be attributable towards improvements in the farm income of rural households. The main contributor to poverty reduction between 2005 and 2010 has indeed been labor income, largely driven by increases in farm income. World Food Program’s wage data suggests that agricultural workers’ terms-of-trade in some high poverty areas like Barisal, Khulna, and Rajshahi improved substantially in the first quarter of 2015 in comparison to the same period in FY14. In addition, the estimated patterns in poverty reduction are reinforced by the decline in food price inflation from 8.6% in FY14 to 6.7% in FY15.

Non-food

Source: Bangladesh Bureau of Statistics

Foreign exchange reserve accumulation continued despite current account deficit. Due to a rise in the trade deficit from $6.8 billion in FY14 to $9.9 billion in FY15, which reflects a fall in export growth coupled with a rise in growth of imports, the current account balance turned into a $1.65 billion deficit, compared with the previous year’s surplus of $1.4 billion. Nevertheless, the overall Balance of Payments continued to record a surplus, albeit down from about $5.5 billion in FY14 to $4.4 billion in FY15, thus sustaining the appreciation pressure on the nominal exchange rate. Figure 3: Current Account Balance

(percent of GDP, FY: 2005-06) % Reserves (USD in Billion) 4.0

23.0

3.0 18.0

2.0

13.0

1.0

Declining inflation. Overall consumer inflation decreased to 6.4% in FY15 from 7.3% the previous year, driven by decrease in food inflation. Non-food inflation increased due to supply disruptions caused by the political unrest in the first quarter of FY15. Declining global commodity prices, a stable nominal taka-dollar rate and restrained monetary growth help achieve this. However, non-food inflation has been on the rise. Annual average food inflation decreased from 8.6% in 2014 to 6.7% in 2015 while non-food inflation increased from 5.5% to 6% during the same period.

FY15

26.0

Food

FY14

5.9

FY13

Vietnam

General Index

FY12

20.1 28.1

FY11

13.2

6.2 7.1

FY10

3.9

Philippines Sri Lanka

FY09

Pakistan

0.0 FY08

32.1

FY07

30.6

5.6

FY15

6.0

7.3

Indonesia

FY14

6.5

6.0

India

5.0

FY13

6.5

28.0 45.3

FY12

7.1

6.2 8.3

10.0

FY11

6.7

Bangladesh China

15.0

FY10

7.0

Investment Rate (% of GDP)

FY09

7.5

GDP Growth (%)

20.0

FY08

Figure 1: GDP Growth (Percent)

Countries

Figure 2: Inflation (BY 2005-06, y-o-y, percent)

FY07

Growth momentum regained with the return of political stability. Most analysts expected the economic growth in FY15 to be around 5.5-6% in view of political unrest and the lack of improvement in structural constraints. As in Fiscal Year 2014 (FY14), the Bangladesh economy in FY15 weathered severe disruptions in production, transport and service delivery once again due to prolonged political turmoil in the third quarter. However, the fourth quarter was remarkably stable just like the first two. Political uncertainties were still present, albeit on a much smaller scale, resulting in a deceleration in private investment growth that constrained the country’s efforts to attain higher economic growth. Amidst all this, growth was driven by rise in industrial growth from 8.2% in FY14 to 9.6% in FY15. On the demand side, consumption growth dominated while real private investment growth declined somewhat.

Table 1: Average GDP Growth and Investment Rates in Selected Countries (2010-2015)

FY06

Where We Stand:

8.0

0.0

3.0

-1.0 -2.0

Current Account Balance Reserves (USD Billion)-Secondary Axis

-2.0

Source: Bangladesh Bureau of Statistics & Bangladesh Bank

The growth of export earnings was only 3.4% in FY15 (in nominal dollar terms), compared with 11.7% growth in FY14. Woven RMG growth was 5% while knitwear grew to 3.1%. Exports declined by 3.1% in real terms. The growth of exports in Bangladesh’s

www.icebusinesstimes.net

COVER STORY

Table 2: Real Export Growth Bangladesh Cambodia China India Indonesia Nepal Pakistan Philippine Sri lanka Thailand Vietnam

2014 3.2 8.9 6.5 -0.8 1.0 23.7 -1.6 11.3 2.7 0.0 11.6

2015 -3.7 7.9 5.4 3.0 -0.2 5.4 -2.7 3.1 3.7 0.8 10.0

Source: South Asia Economic Focus, Fall 2015 & World Bank East Asia and Pacific Economic Update, October 2015

Prolonged slower growth in advanced and emerging markets may have adverse impacts on garment exports, thus widening the trade deficit. However, the relatively low-income elasticity of demand for garment exports and Bangladesh’s significant cost competitiveness would act as mitigating factors. Also, unresolved political uncertainty can hamper growth prospects by hindering confidence rebuilding and leading to a stagnation of private investment. Balance of Payments pressures could emerge from lost export production and slowdown in remittances. Fiscal consolidation efforts could be lost. To safeguard against these problems, automatic fiscal stabilizers should be allowed to operate and reserve buffers may be used through sterilized intervention to

The Bangladesh Bank has been in the process of implementing Basel III since January 2015. It is also high time for them to institutionalize good governance in the banking sector. Without this confidence in the sector will remain shaky. Restricted access to credit means that only 31% of adults in Bangladesh have access to a bank account. In addition, financial inclusion levels still remain low for certain groups including women, small and medium enterprises (SMEs), and farmers. However, the Bangladesh Bank has taken some significant initiatives in recent years to widen financial inclusion. These include changing of urban: rural branch opening rules, requiring banks to allow farmers to open bank accounts with minimum Tk. 10 initial deposit; issuing branch licenses to all SME/Agricultural service centers, mandatory participation in agriculture/rural credit for all banks including private and foreign, refinancing schemes for women entrepreneurs and so on. The expansion of mobile banking financial services has also helped widen financial inclusion. The recovery of remittances. Following a 1.6% decline in FY14, remittance growth leapt to 7.7% in FY15, reaching $15.3 billion. Outflow of workers abroad increased by 12.9% in FY15, compared to the

Figure 4: Remittances Growth

(percent) 35.0 30.0 25.0 20.0 15.0 10.0 5.0

FY15

FY14

FY13

FY12

FY11

FY10

FY09

0.0 -5.0

FY08

The expected improvements in the financial sector’s dynamics fell well short of the mark. Average earnings were estimated to have declined by 7% in FY15, compared with 7.5% growth in FY14. Slower credit growth over the last 4 years has also further highlighted the accumulated effects of substandard credit practices and governance issues. State-owned banks’ performance was much worse than the private commercial banks, mainly due to the poor quality of the board and management.

FY07

The banking sector still faces challenges.

7.3% decline in FY14. With the reopening of the Saudi and Malaysian markets in 2015 there may be a renewal of employment opportunities for Bangladeshi workers in the near future.

FY06

cushion the shock and smooth exchange rate volatility.

FY05

competitors was significantly higher in recent years. These included Cambodia, China, India, Nepal, Philippines, Sri Lanka and Thailand. The drastic fall in export performances reflected the impact of a violent and unpredictable political environment, uncertain developments in major export destinations, falling global commodity prices and the volatile exchange rate of the Euro. In both the US and EU markets, several of Bangladesh’s export competitors of RMG products performed considerably better than Bangladesh. RMG exports from Pakistan, Vietnam and Cambodia to the EU market and from Vietnam, India, Honduras and Sri Lanka to the US market increased at much faster rates.

Source: Bangladesh Bank

The near term political outlook is currently stable as is the outlook for international commodity prices. However, achieving the 7% GDP growth target set by the Government while reducing inflation to 6.2% during FY16 will be challenging. All evidence suggests Bangladesh’s potential GDP growth rate will be around 6.5% given its demographics, infrastructural shortcomings and lingering political uncertainties. The 6.5% growth will be driven by stronger consumption and export growth. Whatever the case may be, contingency plans need to be set up by the Government to tackle macro slippages such as large current account deficits, exchange rate volatility and rising inflation; urgent attention must also be given to stemming financial sector insolvency and prioritizing the completion of ongoing reform initiatives.

CSR STORY {ONE}

A BOLD STEP BY BSRM

By Rokeya Zaman Living in the deltaic region of the Chars (Shoal) through the ages, its people have become habituated with the fact that they have to face regular battles with the surrounding water bodies. The chars are tracts of land surrounded by the waters of an ocean, sea, lake or river. The chars are extremely vulnerable to both erosion and flood hazards so for people dwelling on them, fighting these oddities has become a regularity. It is estimated that in 1993 the total area covered by chars in Bangladesh was 1,722 sq km. An assessment of 1992 dry season Landsat images shows that the Jamuna contained a total of 56 large chars, each longer than 3.5 km. There were an additional number of 226 small chars, varying in length

between 0.35 to 3.5 km which also includes sandy areas as well as vegetated chars. In the Jamuna, during the period between 1973 and 2000, chars have consistently appeared in the reaches opposite to the old Brahmaputra off-take, north east of Sirajgani and in the southernmost reach above the confluence of the Ganges. In Bangladesh, microfinance has failed to penetrate the extreme poor, especially those in the most remote rural locations such as these chars. Unlike many areas of mainland Bangladesh, where microfinance

BSRM

institutions (MFIs) offering savings, credit and insurance services to the poor are ubiquitous, credit options for char dwellers are limited and dominated by the perception that char dwellers are too poor to be good microfinance clients. The high incidence of extreme poverty and pronounced seasonality of agriculture, combined with vulnerability to natural disasters have deterred MFIs from establishing proper branches on island chars. BSRM group under its Corporate Social Responsibility (CSR) program signed an agreement with National Development Program (NDP), an NGO, recently. This home-grown partnership in microfinance- between the CSR of a private company and a non-government organization (NGO) – represents the first of its kind in the microfinance industry of Bangladesh, to the best of our knowledge. The creation of the partnership was

facilitated by the Char Livelihoods Program (popularly known as CLP) jointly funded by UK aid through the Department for International Development and the Australian Government (Australian Aid), managed and delivered by Maxwell Stamp PLC. It is the second such partnership between BSRM and NDP, the first was for providing improved water supplies in six CLP NGOs’ working areas. The main goal of this project is to ‘improve the livelihoods of the disadvantaged char communities through better financial services’, and the objectives of the project is to: (a) ensure access to micro-credit services to the people living in char areas (b) reduce dependency of the char dwellers on the local money lenders that usually charge higher interest and (c) provide char people friendly customized model of micro-finance.

The project will cover fifteen villages of Natuarpara and Nishchintopur Union of Kazipur Upazila under Sirajognj district. Beneficiaries who do not have access to micro-credit, will be formed in 30 groups and about 1,050 farmers will be benefited impacting lives of more than 6,000 people of the char areas from this program in 3 years. BSRM Group of Companies is the pioneer in steel industry of the country producing high-strength reinforced steel bar that conforms to 10 global standards under the brand name Xtreme500W, operating since 1952. With a history of serving the construction industry with innovative, cost-efficient and best quality products, BSRM currently stands in the minds of the people of Bangladesh as a brand and a corporate house that is synonymous with Strength, Safety and Sustainability.

Dwelling on the Chars simply means a constant battle. Photographs from Din M. Shibly

www.icebusinesstimes.net

AGRO VISIONARY

A CHANGE MAKER THROUGH MEDIA Shykh Seraj

Director & Head of News of Channel I and Impress Telefilm Ltd.

SHYKH SERAJ

Shykh Seraj is a media personality who started his career as a development journalist during the 70s. He was also the presenter for Mati O Manush in Bangladesh Television from 1982 to 1996 and is now working with Hridoye Mati O Manush since 2004 for Channel i. His innovative media approaches have helped empower rural communities. He is renowned for boosting up women leadership (which resultantly contributes to the development of rural infrastructure), standing up for farmers’ fundamental rights, engaging youth in farming, organizing farmers’ dialogue session and raising awareness regarding these issues through TV, radio, print and social media. At present his prism of focus is to find new ways to tackle poverty, empower women socially and economically and broaden the essential message of food safety and soil health while keeping climate change in mind. As a development journalist he has won the Gusi Peace Prize for his ‘exceptional’ media activism for the past three decades in reducing poverty in Bangladesh. He received the award on 25th of November, 2015 at Philippine International Convention Center, Manila, Philippines by Gusi Peace Prize Foundation. Chairman of the award committee, Barry S Gusi cited Shykh Seraj as a change maker in the field of the poverty alleviation for his untiring efforts in working for poor people’s amelioration and finding out peaceful solutions for people’s welfare through agricultural development activism and journalism. He also described Shykh as a simple, very hard working, innovative journalist who has dedicated his life to improving the lives of millions. Shykh Seraj is regarded as a living paradigm for others to emulate not only in Bangladesh but throughout Europe and the international community. Recently, he spoke with IBT regarding his accomplishments.

Q You have been awarded many

times and GUSI award is only a new feather in your cap. A television programs that encompassing inside development of peoples with far-reaching space that resultantly change the livelihood of people. What is your take on? There is a saying that is familiar in every newsroom of any country in the world: if it bleeds, it leads, which shows the inclination of mainstream media towards hard news that covers war, strife, socio-political tension, etc. Nevertheless, in the first world countries, development journalism has added new dimensions in news presentation and program designing to open the new era of edutainment for the audience. Starting from the BTV-era to today’s multi channel entertainment industry, I have always been intrigued to make a difference through development journalism. You see there was a time when television was the only medium of

entertainment for the people of this country. Of course hardcore news is important for the society to be updated about anything and everything that is happening around. But I strongly believe that negative headlines demotivate people and ruin their trust on the system. If you look back to where we were fifty years ago, it was the news media through telecasts that sensitized people about the gravity of food shortage issue, which then propelled the green revolution. However, we have paid dearly for the food security, which we have more or less ensured, through steep costs of damage inflicted on the environment. Such a food security program is not sustainable, if this environmental damage is not accounted for. What we need now, is for development journalists to step up once again and promote awareness about these relevant environmental issues that will have direct socio-economic impact on our lives.

Q In this era of connectivity, farmers also need to be globalized as their produces are becoming global products. This situation is not unique to Bangladesh; one will notice similar trends across the globe. In the last few years, I have travelled across the world, starting from Europe, to America and then to Africa. I have observed the changes in the global agro scenario; I have noticed the trends of burning topics like climate change. We live in an era where people have amassed so much wealth that you cannot restrain them from consuming and in order to fulfill their ever increasing needs, industries will go on producing, resulting in more and more carbon emission. I think even high level conferences like COP cannot bring about much change. For Bangladesh, the end results are even worse as we are a coastal country. Climate change has already hit us hard as the number of climate migrants is on a rapid rise. Across the globe, famers are producing in their own country in their own way. I find the subsidy distribution in Europe faulty, where IMF is giving a number prescription for us. In Europe, 80% of farmers are sharecroppers and 20% of landowners own 80% of the land. So, from that viewpoint, many farmers are not

Through my program I tried to impart the knowledge about thinking out of the box and trying their luck in ventures like poultry or cultivating fish and crop on the same land.

www.icebusinesstimes.net

AGRO VISIONARY

getting the governmentâ&#x20AC;&#x2122;s subsidy. Here, or in any part of the world, the beneficiaries of the subsidy are the 20 %, those of whom are holding 100 or 1000 hectares of land and are involved in maize or wheat production. The status of the landless farmers is almost the same around the globe. Nevertheless, I must admit that we have made incredible progress in the agro sector in the last one decade. Yet, we have a long way to go when it comes to reducing poverty and improving the standard of living of common people.

Q The GUSI award is being given for poverty alleviation but here the tools is a television program which becomeinstrumental in this end that makes difference. I can cite many occasions when it occurred to me that the root cause of poverty lies in the minds of the farmers. To me, eradicating that sort of mental poverty was the first priority. What motivated me to go out to the fields, to interact with the farmers and figure out what was holding them back was the fact that merely the lack of the right kind of education which would have otherwise broadened their mental horizon was the biggest hurdle that stalled any progress. Many farmers I knew were living under the poverty line just because they never even thought of using the small piece of land available on the yard to be used as a vegetable garden or the pond for culturing fish. Through my program I tried to impart the knowledge about thinking out of the box and trying their luck in ventures like poultry or

cultivating fish and crop on the same land. Growing vegetables on the yard or rearing chickens in the backyard not only enabled many of them to earn more money but also ensured proper nutrition for them and their neighbors. There are about one lac fish farms across the country. I am sure most of these farmers have been regular audience of my show.

Q For many years, we have been seeing you wearing the same kind of attire in your program. Was it done intentionally? You wanted to create a style statement? For me, becoming one of them for who I am making a program is important. I want to ensure that they feel I am approachable. During the 80s, when I started the program, our rural population was in a bad condition. Most of them lived from hand to mouth. To engage them through a new kind of show, wearing a new dress in each episode would certainly be a bad idea. This is why I decided to choose colors, which are, dull yet very much relatable for our farmers. You probably have noticed that I always wore glasses and kept a pen in my pocket. This too was done intentionally. Breaking the stereotype, I wanted to educate them about other profitable agro ventures. For many of those farmers, the pen and glass seemed nothing but the accessories of an educator, who can impart some knowledge among them for a better tomorrow. Undoubtedly the gig paid off. Looking and behaving like one (of them), I have successfully motivated so many of them.

I firmly believe that television is a very important medium to empower people. When we first started Mati O Manush for BTV, farmers used to run away seeing the microphone. The scenario has changed completely. In almost all places, the farmers I meet these days welcome us wholeheartedly and express their keen desires to speak up.

To me, eradicating that sort of mental poverty was the first priority.

Q Programs like Mati o Manosh or Hridoye Mati o Manush has played an important role in developing human resources in agriculture sector. Considering that your contribution to our development scenario is immense. I firmly believe that television is a very important medium to empower people. When we first started Mati O Manush for BTV, farmers used to run away seeing the microphone. The scenario has changed completely. In almost all places, the farmers I meet these days welcome us wholeheartedly and express their keen desires to speak up. They have learnt about the importance of raising their voices to establish their rights. They are much more aware these days. They are sending their children to schools. In last two decades, television has played a very significant role in the overall process of uplifting the rural people from their impoverished state. I am glad and proud to be a part of the whole journey. It was very rewarding that with each program, we got to learn something new and later on, it reflected on the new elements that we added in the upcoming episodes. Programs on farmersâ&#x20AC;&#x2122; health or Budget have received much kudos from all stakeholders of the agro sector.

Q Human beings are as large as their dreams. What are your future dreams? I would like to put the whole venture into an institutional frame. With further research and expansion, I would like to form a foundation, which will have affiliation with like-minded institutions. Together, we can do something bigger for a better tomorrow.

By far, the new presenter's most distracting habit is the use of filler words. Many people automatically think of ‘um,’ but there are many, many more. A filler word is any word that is unnecessary to the point you are trying to get across or is repeated throughout your presentation to the point of distraction. The use of filler words can be so distracting that your audience may completely miss the point. Almost everyone has a go-to filler word. The filler word I used the most when I first started presenting was ‘right,’ and I recognized it pretty easily. Recently, my filler word of choice is ‘so,’ which is more easily overlooked. I have to concentrate much harder to self-edit ‘so.’ The best way to find out yours? Record yourself. If you can't do that, ask audience members to tell you if you have any words that clutter your speech.

FILLER WORDS

ROOKIE MISTAKES TO AVOID

BIG PRESENTATION?

STRATEGY

You should never compete with your slides for the spotlight. Your audience's attention should be on you or on your presentation. Resist the temptation to point at your slides, and if you do, then give your audience ample time to read what's there--don't read the slides to your audience. Your slides should contain simple imagery and include only the key points or statistics you need to provide back up for what you are saying. I completely avoid animation, but if you choose to use it, use it sparingly.

RELIANCE ON SLIDES

Every entrepreneur needs to present at some point. From apologies to information overload, a primer on what not to do.

The most impactful thing you can do while presenting is to simply stop talking. Take the time to pause--it gives your words space and the time to sink in. The best speakers use space and cadence to connect with their audience. What feels like an eternity to you on the stage is merely a moment to your audience and they need this time to absorb what you are saying. The quiet gives their brains time to catch-up before you move on to your next point.

TOO MUCH TALKING

The human brain can only keep up with five things, give or take two. That's why I am happy if my audience walks away from my presentation with just one or two key messages. I focus on making sure my audience gets the â&#x20AC;&#x2DC;big ideas.â&#x20AC;&#x2122; The best way to do that is to encapsulate those ideas in a story. It's true that turning your points into a catchy phrase might help aid memory, but I have found it's a few points, delivered in a carefully crafted story, anecdote, or joke that will stay with your audience long after you step off the stage.

INFORMATION OVERLOAD

Never, ever apologize for missing something in your presentation. The secret is that your audience probably doesn't know that you missed something and apologizing doesn't help. This rule also applies to your slides. If you notice a misspelling or other issue with your slide, don't point it out. Those in the audience who have caught the mistake have already caught it--pointing it out doesn't fix the problem and will only highlight it for others in the audience who haven't noticed. Your audience is rooting for you, they want you to be successful. Use that momentum to move forward and don't sabotage yourself.

APOLOGIES

As you grow your company, you will find yourself standing in front of an audience more often. After all, you are the best person to take your message to the masses: You feel the most passion for what you do and you understand the strategic vision to move your company forward. While it's important to think about what you should do when presenting, it's just as important to consider what you should not do. In fact, perfecting your presentation skills is very much about what you consciously choose not to do. Here are five common mistakes new presenters make that you should avoid.

INSIDE OUT

At the heart of everything in East Coast Group, there has always been oil and energy or hydrocarbons and downstream petroleum. Tanjil Chowdhury Managing Director, East Coast Group

TANJIL CHOWDHURY

Tanjil Chowdhury is the Managing Director of East Coast Group, a diversified conglomerate with more than 30 years of experience in Oil & Energy sector. Tanjil is a former Board Director and Chairman of the Executive Committee of Prime Bank Limited (PBL). He is the Managing Director of Bangladesh Trade Syndicate Limited and a representative of TNT International Express in Bangladesh. He is also involved with many other associations and groups which include being the President of Bangladesh Merchant Bankers Association (BMBA), the President of Solar Module Manufacturers Association of Bangladesh (SMMAB), the Chairman of Prime Exchange Singapore Pte Ltd (Prime Bank’s remittance arm in Singapore). He is an elected Director and Former Chairman of the Facilities Committee of Bangladesh Cricket Board (BCB) and currently he is the Chairman of BCB’s Age-Group Tournament Committee. As a regular speaker for various private universities, his lecture topics range from financial derivatives and Investment strategies to ship management and organizational behaviour. He completed his Bachelors in Accounting and Finance from University of West London (formerly TVU) and went on to complete his Masters in International Management (Finance), from King’s College London, University of London. Tanjil is an active member of BBC Film Society and King’s College Business Society. He is also a keen golfer and has achieved many laurels in this sporting arena. Recently, In an interview with IBT, Tanjil shared the story behind East Coast Group’s involvement in the Oil and Energy sector as well as their sponsorship of the first Bangladeshi WRC Rally Team which won the (DDFT) World Rally Championships 2015.

We can also proudly say that we are privileged to be the alliance partners for ExxonMobil and because of the goodwill we've earned through our activities we control the supplies not only in the Bangladesh market but also in the Nepal and Myanmar markets.

Q What’s the story behind

your involvement in the Oil and Energy sector in Bangladesh?

We've been active in the Oil & Energy sector for the last 35 years where we have been growing at a steady rate since the company’s inception. We have made expansions and we have diversified strategically, but we have never strayed from our core business strategy, which is to be a technology based policy driven company. At the heart of everything in East Coast Group, there has always been oil and energy or hydrocarbons and downstream petroleum. The area of downstream petroleum is very technical and capital/infrastructure intensive so there is a inherent industry barrier to entry from automation and investments. Most of our products are aimed at a niche market (high quality) but there is a premium available from this market, which is why we are there. We can also proudly say that we are

privileged to be the alliance partners for ExxonMobil and because of the goodwill we've earned through our activities we control the supplies not only in the Bangladesh market but also in the Nepal and Myanmar markets. Alongside blending MOBIL and ESSO lubricants; we have our own brand as well, which is called Omera and we follow the same philosophy with it. Our whole production mix is targeted towards creating something on an alleviated level. Our factories also adhere to strict SHE compliances which is part of our corporate heritage. Omera’s story started 5 years ago in Bangladesh when there was boom in CNG demand. The Government changed their legislations, they started encouraging investments in this area and made the import of CNG products tax free. However, it was still a very backwards technology and was discouraged all over the world due to the fact that CNG run vehicles depreciate at a very high rate. Even Mobil discontinued their line at the time but we spoke to them and informed them of the huge demand here in Bangladesh. To this Mobil suggested that we produce it ourselves with their help. As time progressed we started thinking of developing our own brand with our own resources and expertise. We started with a few limited ranges, obviously not cannibalizing our own products, but positioning them in areas where Mobil was absent. Through this our flagship product, Omera Lube 1 was born which was the first synthetic-technology product made in Bangladesh. By that time we already had two percent of the market share,we re-branded entire look of the productand started exploring frontier markets to export our products.

Q How did East Coast Group’s partnership with ExxonMobil come about?

My father was a first generation businessman in Bangladesh who had always wanted to get involved in the oil business even though he was an English Literature student from Dhaka University. He began his career as a civil servant as a magistrate and then realized he was meant to do greater things. It all started with oil chartering from Chittagong first, we then expanded from there. When Mobil first came to Bangladesh, the oil sector here still wasn't privatized yet so the only way they could enter the country was through one of the national oil companies. They started collaborating with Jamuna Oil Company which led to the formation of Mobil Jamuna Lubricants Limited. Afterwards Exxon merged with Mobil and at that point ExxonMobil decided to divest their shares in Bangladesh. This is when East Coast Group entered the picture and offered to take over their operations for them. Two years after this we achieved our first profits and declared dividends. My father achieved all this through his adamant beliefs in automation, technological advancement and investing in human resources. He had convinced the board to invest heavily on R&D and overseas training.

www.icebusinesstimes.net

INSIDE OUT

Q What are your thoughts on the

energy scenario in Bangladesh? What is East Coast Group doing to bring about a change in the current situation in the country?

The Government has taken a very encouraging stance regarding energy security. A lot of projects related to energy and infrastructure have been fast-tracked, the benefits of which the general public will get in three years. Other sectors in the economy will do well because of the private sector’s entrepreneurial drive but some encouragement will be required from the Government. So, they need to take on the initiative to provide the right support in this regard. In 5 years time, Bangladesh will be unrecognizable because of the changes taking place. However, for this to happen, it is imperative that we have a stable political regime. In terms of energy we have to look at things carefully especially because it might affect the environment. We need a diversified but safe energy mix. Nuclear energy can be in that basket depending on how mature and developed we are, as mishandling it might be disastrous. Going for cleaner and more efficient forms of energy like Liquefied Petroleum Gas (LPG) would be the right option. Our company is the largest LPG operator in Bangladesh right now. It’s our biggest project so far and it will be huge in Bangladesh in the future. A lot of households in our country are misusing natural gas by burning it for cooking whereas it should only be used for productive purposes. It’s time for us to discourage this and to also discourage CNG conversion for cars. LPG is a far more efficient and reasonable option as, not only is there no accelerated depreciation but the conversion kits are cheaper and the cylinders don’t take up extra boot space. The response so far regarding our LPG production has been overwhelming. Now we are looking to expand even further. We have two spheres and four locations for production in four corners of Bangladesh. We are producing our own cylinders as well. We're the only company in the country who own a self propelled LPG barge which we’ve named MT ‘Omera Princess’.

A snippet from the (DDFT) World Rally Championship 2015.

Q The WRC Team has become the first Bangladesh Rally

Team to achieve a monumental victory in (DDFT) World Rally Championship 2015. As one of the sponsors, what’s your take on this and how did this whole thing come about?

Regardless of our success with Omera we had problems in trying to penetrate the European markets.Since our products are made in Bangladesh, there is this stigma that it might be inferior. We had a major achievement where BMW, Kia and Mini Cooper approved of Omera Lube 1 as their preferred brand of oil for long life. Even with this huge achievement we still couldn’t get into the European markets. Then it caught my attention that every global oil company is involved in motorsports. Being a Formula 1 enthusiast, I go to different countries to watch it whenever I can. During these times I have spoken to technicians and these experiences made me understand that what happens there goes way beyond just sponsorship. It's more like product development in the sense that it will make you push the barriers of technology to come up with something better. The science behind all of this caught my attention but I realized it wasn't something that would be economically viable for Bangladeshi companies. I spoke with one of our Norwegian business partners whom we met through our wood treatment company, Nordic Woods Ltd. and I told him about my interest in this regard. He then suggested that we get involved with the WRC. He knew a good driver named Marius Aasen, whom we got in touch with. We spoke to him about our plans and agreed to become his major sponsors. He did well throughout the first few years of our collaboration so we stuck with him but then this year he reached the pinnacle of his achievements. He won two Championships along with the DDFT World Rally Championship 2015 where he won the Drive DMACK Fiesta Trophy with his co-driver Veronica Engan. We spoke to the FIA, who are the regulators for the WRC rallies, and asked them if we could put the Bangladeshi flag on the car as we were the major sponsors. Initially they weren’t being compliant but later they agreed to let us put both the Bangladeshi and Norwegian flags on the car. It was an extremely proud moment for us that they won the championship and that we could have a car there with our country’s flag on it. Since then the response has been great and we’ve been getting more queries from foreign buyers regarding our products.

VENTURE CAPITAL

The Need for Smart Capital Anis Uzzaman Ph. D, General Partner & CEO at Fenox Venture Capital San Francisco Bay Area

Anis Uzzaman, Ph.D. is the General Partner and a founding member of Fenox Venture Capital. He serves as the CEO of the company, overlooking overall management and operations. Located in Silicon Valley, USA, Fenox Venture Capital provides early stage and final round funding. With several multi-million dollar funds under management, Fenox Venture Capital focuses its investment in IT, Health IT, Consumer Internet, Cloud, Big Data, Mobile, Social, Payment Systems and Next Generation Technologies. Anis has invested in over 65 startups in the United States, Japan, and South East Asia. Some of the prominent USA startups in the Fenox portfolio include Genius, Jibo, Lark, Scanadu, Jetlore, Meta, Expect Labs, Afero and ShareThis. Anis is also an investor and board member of Tech in Asia, the largest tech media blog in Southeast Asia. Anis also sits on the board of directors of Jibo, Lark, Jetlore, DLE, I AND C-Cruise, Infoteria, Afero, and ZUU. He holds a B.Eng. degree from Tokyo Institute of Technology in Japan, an M.S. in Engineering from Oklahoma State University, and a Ph.D. in Computer Engineering from Tokyo Metropolitan University in Tokyo, Japan. Anis is an honored guest speaker in international conferences, workshops and seminars, has published more than 30 technical papers, and is the author of the “Startup Bible – The Silicon Valley Way of Developing Success” and "A Global Investor's Viewpoint on Japanese Companies" that launched in Japan; "Startup Success - The Six Steps To Building A Successful Startup" that launched in Korea; "Startuppedia Guide To Build Startup - Silicon Valley Way" that launched in Indonesia; and "Startup Bible - Silicon Valley Way of Developing a Successful Startup" that launched in Taiwan. Very recently this Bangladeshi born business tycoon was in Dhaka to inaugurate the opening of Fenox Venture Capital in Bangladesh and caught up with IBT. www.icebusinesstimes.net

ANIS UZZAMAN PH. D

Q We are living in an IT dominated age where the computer is leading us to globalization. Take on this? Ten years ago our population served as a challenge, now it is a blessing for our economy. Even the ICT Minister once joked with me about how no one thinks of our young population as an asset. If we look how swiftly our people have embraced mobile phones then we can see why smart phone penetration has been so great. Also easy access to the internet has also contributed to this growth. There are some great things happening in Bangladesh and our entrepreneurs have the right ideas but they lack guidance and capital. We have some investors here and there but we lack proper foreign investors as most of them donâ&#x20AC;&#x2122;t take us seriously. They donâ&#x20AC;&#x2122;t want to spend their resources on a country which they think is poor, flood affected and overpopulated. Due to this, the required capital was missing but we are slowly finding ways to fill those gaps. Fenox Venture Capital itself will be bringing smart capital which will help boost our current scenario.

Q What might be happening in the economic landscape in the upcoming years? We are going to see monumental changes in the coming 10 years. A lot of startups are already popping and the ICT Ministry is very keen on helping these startups as the ICT Minister believe that young people deserve the right chance. Starting fund exchange programs and programs which will provide them with free office spaces for a year can help boost their businesses. Fenox is ready to help in this regard as well.

Q What changes do we need in our education system to bring out the right kind of graduates? People need to understand the need for innovation and stop the obstruction of new ideas. This is a problem which is present everywhere in the world. We should work with the Education Ministry to help inculcate entrepreneurship and

innovation as a part of the curriculums being taught to our students. The education system requires an overhaul.

Q Changes are taking place regarding how we make financial transactions. What are your thoughts and this and how do we make these newer processes more secure? Due to new technological innovations more and more people are having to visit banks less frequently. Payments are being made through mobile banking portals like bKash. A lot of the features which we saw in the traditional systems are now available online. Those who are not converting to newer systems will be in trouble in the future. With the introduction of these innovations, security and identification issues will also arise and necessary precautions must be taken so that we have the required safeguards set up against hacking risks and other cyber crimes. We have to introduce different layers of identification so that we are more secure. Retinal scans and gesture technologies are already being introduced in different parts of the world so these may be applicable here in the future.

Q How did you get into becoming a businessman? Most people who study engineering have no idea about business. I chose to study engineering because I wanted that technological knowledge through business. I had the engineering background and the right business plan so all I had to do is apply my acquired knowledge appropriately.

A lot of the features which we saw in the traditional systems are now available online. Those who are not converting to newer systems will be in trouble in the future.

MAGNITO DIGITAL

“It was a very proud and humbling moment for us to win one of the most sought after awards in the advertising industry and thus represent Bangladesh on the global stage.” Riyad S. A. Husain CEO, Magnito Digital

Riyad Shahir Ahmed Husain was born in the UK and raised in Bangladesh. After finishing his schooling in Scholastica, he completed his Bachelors Degree in Business Administration (Marketing) in 2005, from Richmond University, UK. He then worked in London as part of a Graduate Management Trainee Program at Arcadia Group, the world’s second largest clothing retailer at that time. In 2007, Riyad came back to Bangladesh and started a communication agency from a stationery shop with his partners with zero investment. Within the next 5 years, they co-founded Root Marketing Services, Giant Marketing, Printex Limited and Zakat Connect, a social initiative.

www.icebusinesstimes.net

RIYAD S. A. HUSAIN

In 2013, they started Magnito Digital, a full service digital marketing agency. Being passionate about the food sector, Riyad also made investments in a few restaurants like Time Out, Tokyo Express and Wow Burger. Riyad dedicates a lot of voluntary time towards the entrepreneurship community of Bangladesh. He is one of the founders of Google Business Groups (GBG) Dhaka, a fast growing non-profit community under the Google Outreach Program. He is the Co-Chairman of the Standing Committee on Web Solutions & eMarketing at BASIS, an investor in SD Asia, a Founders Institute Mentor and the past Chairman of the Youth Committee of TiE Dhaka. In 2015, World Brand Congress has named Riyad as one of 'Asia's Most Influential Digital Media Professionals'. Riyad lives with his wife Navin and their 1 year old son Kiyaan. He still manages to play football 3 times a week and is a travel enthusiast.

Q As a developing country, internet penetration has greatly improved over the years and consumer behaviorism has also been changing constantly in Bangladesh. How has that helped change the face of digital marketing in Bangladesh? In 2013, 3G was first launched in Bangladesh. The following year marked the advent of affordable android smart phones entering the Bangladeshi market through various Chinese and newly launched local brands. Incidentally, the cost of internet bandwidth also went down during this period. So with telecom operators promoting 3G internet through attractive products, internet users were growing exponentially. This led to an organic growth in the demand for brands needing to be in the digital space to engage with their audience. Apart from the growing number of internet users, there are other reasons for brands wanting to go digital. Digital marketing makes it possible for brands to reach the exact target audience, every interaction is measurable thus leading to higher return on investment and it empowers the brand to interact with its consumers. Moreover, it’s a great medium for reaching the global audience. As a result of all this, the sudden growth in demand for brands wanting to be in the digital space, paved the way for agencies like us.

Q Obviously the recent social media blackout would have a negative impact on digital marketing in the country. What’s your take on that and how did you have to deal with it? The main problem is that social media is still considered as just a social networking platform by some. In reality it is also a channel for brands to communicate with consumers and a platform for a lot of businesses to earn money. A lot of eCommerce shops aggregate their traffic from social media channels such as Facebook and Instagram. Therefore, when something as large as this is closed down, not only did brands face difficulties in communicating with their consumers, but more importantly, businesses were affected because the traffic to their digital assets took a blow. This had a negative impact on the digital economy as a whole. To tackle this problem, we looked for alternative channels for our brands. We worked with brands to develop and improve their own properties, such as further enhancing the consumer experience in their websites or developing their own mobile application channels, through which they can communicate with consumers. So, it was a wakeup call for all brands to not just focus on one or two mediums in the digital space, but rather to spread out across different channels.

Q Recently Magnito Digital won Gold and became the “Rest of South Asia - Digital Agency of the Year” at the Campaign Asia Pacific Agency of the Year Awards 2015. What’s the story behind this great achievement? It was a very proud and humbling moment for us to win one of the most sought after awards in the advertising industry and thus represent Bangladesh on the global stage. We started Magnito Digital in 2013, with a team of 6 people and a vision to empower the local and multinational brands in Bangladesh, the Government bodies, SMEs and even smaller retail businesses with the ability to engage with their consumers in the digital space. Initially the challenge for us as a company was to attract the top talents from the industry. To overcome this, we had to focus on building the organizational culture of the company. My partners Fayaz, Amer, Samad and Munazer were instrumental in developing the company culture. On-the-job-training and internal workshops were organized regularly to build the capacity of our team. We were lucky enough to have the likes of Macon Phillips, Chief Digital Strategist for the 2008 Barack Obama Presidential Campaign, as speakers at our workshops. Starting from the attractive office space to the team development programs, word started to spread about Magnito’s winning culture. Within a few months, we became a desired career option for marketing graduates and digital media enthusiasts.

The export oriented companies within the garments, leather, ceramic or pharmaceutical industries are mostly missing out on this opportunity of reaching out to the global audience by sitting in their current comfort zones.

MAGNITO DIGITAL

After building a good team, we started working with various clients. Within the first year we worked with over 20 clients, which included companies like Unilever, Marico, Banglalink, City Bank Ltd, Chevron and so on. In our second year, in 2014, we had a major breakthrough, as we became the dedicated digital agency of Grameenphone. Later that year, we became the digital agency for Access to Information (a2i), a project of the Prime Minister’s Office in partnership with UNDP and USAID. In 2015, when Telenor Digital Norway launched a lifestyle Android based application called WowBox, they wanted to test it out in the Bangladeshi market, before launching it globally in other emerging markets. For this, they were looking for a content and marketing agency and we were lucky to win that account from Telenor Digital. These major accounts enabled us to increase our team and resources and by 2015 we moved from a six person team to a sixty-one people company albeit with a very young workforce, with the average employee age being under 30. All of this culminated to our two-and-half year old agency winning Gold and becoming the ‘Digital Agency of the Year’ at the Campaign Asia-Pacific Agency of the Year Awards 2015 in Mumbai in the Rest of South Asia category. We were the only Bangladeshi agency to win globally in the Digital Agency category this year.

Q A lot of the export oriented larger industries such as FMCG, Garments and Leather have yet to explore the realms of digital marketing. How can digital marketing help them enhance their presence in the international markets? I strongly feel that digital marketing

is the ultimate medium for brands, companies or industries to reach out to the global audience at scale. The export oriented companies within the garments, leather, ceramic or pharmaceutical industries are mostly missing out on this opportunity of reaching out to the global audience by sitting in their current comfort zones. However, it is high time they realized that to compete at an international level, it is important to build their brand and represent themselves globally. We have seen companies or industries in India, Vietnam, Malaysia, etc doing it quite effectively. A starting point for all these local companies would be to have a world class online presence, which is missing in most cases. Unless we have a strong web presence, gradually other competing countries will start getting all the leads and we will lose out in the long run. A positive way forward would be if associations such as BGMEA, FBCCI, DCCI, and so on, can help

A lot of eCommerce shops aggregate their traffic from social media channels such as Facebook and Instagram. Therefore, when something as large as this is closed down, not only did brands face difficulties in communicating with their consumers, but more importantly, businesses were affected because the traffic to their digital assets took a blow.

spread awareness among its members by working with the digital marketing community as well as with the IT evangelists such as BASIS and the ICT Ministry.

Q What initiatives have Magnito Digital taken regarding increasing the awareness of the importance of digital marketing in Bangladesh? From Day 1, we have been actively working towards industry initiatives. One of the well known projects was Digi-Café, a digital marketing networking event that we hosted every 3 months for a year. Senior representatives of brands, advertising professionals and key industry stakeholdersparticipated in the knowledge sharing sessions, run by highly credible speakers, which included professionals from Google and founders of digital agencies from France, Malaysia and Pakistan. DigiCafé turned out to be a successful networking platform among the marketing professionals. Magnito also actively works with communities such as Google Business Groups, Dhaka and the Standing Committee on Web Solutions & eMarketing at BASIS. Through these initiatives we are, in a small way, trying to spread awareness among Bangladeshi businesses to be a part of this digital ecosystem.

www.icebusinesstimes.net

CSR STORY {TWO}

Robi Shines Brighter R

After the merger with Airtel, Robi is poised to bless a bigger clientele with its tailor-made initiatives

Robi Axiata Limited is a joint venture between Axiata Group Berhard, of Malaysia and NTT DoCoMO Inc. of Japan. Robi claims to have the widest international roaming service in the market, connecting 600 operators across more than 200 countries. It is also the first operator to introduce GPRS and 3.5G services in Bangladesh along with many other first of its kind digital services. They have also invested heavily in taking mobile financial services to the underserved. Robiâ&#x20AC;&#x2122;s financial results for the third quarter dispelled on the 30th of September 2015 also showed many promising figures. During the first nine months of 2015, Robi added 3.1 million new subscribers to reach 28.4 million which represents 21.6% of the subscriber market share. According to Robi, during these first nine months of the year, the company recorded strong revenue growth of 6.7% with a remarkable growth in data revenues by over 100%. Data revenue growth was propelled by continuous investment in its 3.5G network coupled with innovative data offerings to drive data usage. Managing Director and CEO Supon Weerasinghe said, â&#x20AC;&#x153;We are witnessing impressive growth in data services since the start of the year as we have expanded our 3.5 G network across the country. We are investing significantly towards the expansion of our network to provide the best 2.5G and 3.5G mobile experience to our valued customers.â&#x20AC;? Robi has diversified their activities over the years but one of their landmarks have been on the health front with the installation of purified drinking water supply facilities at key railway stations in the country. Robi in collaboration with Bangladesh Railway (BR) has set up water

ROBI AIRTEL MERGER

Robi claims to have the widest international roaming service in the market, connecting 600 operators across more than 200 countries. It is also the first operator to introduce GPRS and 3.5G services in Bangladesh along with many other first of its kind digital services.

treatment plants at Railway stations at Kamalapur and Airport in Dhaka as well as in Chittagong, Sylhet, Rajshahi, Khulna and Mymensingh. They partnered with WaterAid to provide technical support in ensuring the quality of water in these facilities which have the capacity of providing 5,000 liters of drinkable water per hour, serving thousands of railway passengers and visitors every day. The railway passengers and visitors can also avail the service of “Train Tracker”, a value added service first offered by Robi in Bangladesh, to track their scheduled trains while waiting at the railway stations. Robi initiated the “Robir Alo” program aimed at people in the off-grid region who used to depend on kerosene or wax candles to meet their demands for light and were unable to use mobile phones due to lack of power. Robi has intervened in this aspect and provided solar panels to 590 of homes in remote villages in Kurigram and Bandarban. This has not only infused a new lease of life amongst the poor villagers who were deprived of electricity facilities but their carbon footprints have also been decreased significantly besides enabling them to avail a mobile phone and charge them up. Robi’s green mission is to be committed to environmentally sustainable business practices through responsible use of resources. The key initiatives under this program are Green BTS, efficient fleet management, reducing electricity wastage and internal paper consumption, virtualization, unified communication, sharing of infrastructure, and e-waste management. Robi has also established Internet Corners at all the 7 divisional libraries in Dhaka, Rajshahi, Chittagong, Rangpur, Sylhet and Khulna. Robi strongly supports the government’s vision of creating a digital Bangladesh by 2021 and thus the Internet Corners are very useful for students,

Talk of the Town A marriage of convenience was convened in the cutting-edge telecom industry as Robi (Axiata) and Airtel (Barati) tied the knot and declared a formal merger formally on the 29th of November 2015 at a press conference. Following the merger Robi will become the second largest operator in market with 38 million subscribers. With the merger, the combined human resources of the both the players will add to their strengths which will help them provided better services to their subscribers. When questioned about the oligopolistic competition in this highly competitive market their CEO said the competition among the operators will be as strong as ever and with this new window Robi declared a host of new packages which will help them become a favored brand for the mobile users of the countryManaging Director and CEO of Robi Axiata Limited, Supon Weerasinghe; CFO, Yap Wai Yip and Chief Corporate and People Officer, Matiul Islam Nowshad were present as Vice President, Communications and Corporate Responsibility, Ekram Kabir moderated the whole session.

With the merger, the combined human resources of the both the players will add to their strengths which will help them provided better services to their subscribers.

especially for students outside the capital Dhaka, to get access to internet. In addition to that English in School (EIS) is the biggest ever CSR project in Robi's history. It is a language learning program in partnership with the Daily Star, one of the most read English newspapers of the country, to promote English language learning at secondary schools across the country. The initiative aims to facilitate Basic English language skills for both the students and their respective teachers. www.icebusinesstimes.net

DIGITAL MARKETING

Digital Marketing Summit 2015 Bangladesh Brand Forum with Grameenphone organized the second installment of the Digital Marketing Summit in 2015 powered by SSD-TECH. The event took place on the 12th of December, 2015. Its stage was graced by the presence of notable international, national, regional and local speakers who were both agency and brand professionals. The speakers discussed the biggest upcoming trends of digital marketing in 2016. The summit was hosted at the GP House and the day was packed with insightful and exciting panel discussions, deep dive sessions, keynote sessions of experts from all across the industry as well as well live activation and exhibition of the products that digital agencies have up for grabs. The keynote sessions which were covered by globally renowned industry experts were based on the strategic and technical knowledge of digital marketing and how to make it big and successful while remaining relevant in the country. The keynote speakers present in the sessions included the likes of Carrie Chen from Telenor Digital’s Digital Distribution & Marketing team; Amit Sharma, Solutions Architect with Amazon

A few panelists at the summit.

Web Service (AWS); Ashish Thomas, Chief Strategy & Marketing Officer at SSD-TECH and Lakshmipathy Bhat, VP of Corporate Communications, Robosoft Technologies. “Fortune at the Bottom of the Pyramid-Translating ‘Digital’ for Bangladesh” was the first key-note session presented by Ashish Thomas of SSD-TECH. He shared an overview of the growth prospect of digital activities in the lower socioeconomic tiers of the country and how it will create positive impacts. Mobile apps being a popular installation in the virtual world, in her key-note session, Carrie Chen of Telenor Digital, shared her learnings on Apps Marketing. From Robosoft Technologies, Lakshmipathy Bhat, discussed branding in the digital frontier -“New Advertising is Old Advertising at Heart”. Amit Sharma from Amazon Web Service discussed how to utilize infrastructure and services to create highly scalable and resilient applications. IBT was present during the event and later caught up with Carrie Chen and Lakshmipathy Bhaat to get some extra insight on how they perceive the digital marketing world.

LAKSHMIPATHY BHAT

Lakshmipathy Bhat

VP, Corporate Communications, Robosoft Technologies

the end users are utilizing it as and when is required? Since these things haven’t been taken into consideration, we now have a large clutter of apps a lot of which are unused or forgotten. There's a lot of education that needs to happen both with marketers and app developers. Marketers have somewhat realized that creating an app for an app’s sake is not the way to go. That trend was there in India but it has reduced now. Cadbury once had a messaging app just for Valentine’s Day but they later realized that people wouldn’t have much use for that. There's a paint brand which allows you to look at how a particular room looks like with a particular paint color. These apps are useful but they have limited value. Apps should be developed with more consideration towards utility value. These things are being addressed slowly.

Q Social innovation apps are As a career adman, Lakshmipathy Bhat has worked for world renowned advertising agencies and packs over two decades of experience. He has worked in Mumbai, Dhaka, Colombo and Banaglore in his career for leading global ad agencies like Grey and FCB Ulka. He has led the communication strategy and creative development for leading global brands like Procter & Gamble, GSK, Sara Lee, BAT, ITC Foods and Wipro to name a few with large teams. As the VP, Corporate Communications, he overseas communication programs on ‘Brand Robosoft” among internal and external audiences. He maintains a personal blog, which is ranked among the Top 100 advertising blogs in the world.

Q Apps are playing a major role now in the

digital marketing arena. So what are your comments on the app economy right now? How has it developed over the years and adapted to changing consumer behaviorism?

I feel that it all began when everybody started jumping on the bandwagon of creating apps without actually understanding whether there is a need for such an app. They jump into it without putting any thought into how to market the app or how to make discoverable for the consumer who will download and use it. Three things need to be considered before making an app. First, why is the app being made? Typically a consumer does not use more than four or five apps on his/her devices so how do you make your app the most relevant one for the user. For this the app producer has to make an app which can solve a real need which can be a difficult task. Secondly is the app discovery itself. How does your app stand out? That's another issue that app developers need to grapple with. Finally, you have to consider usage. Even if the app is being downloaded, how do I make sure

playing a major role in African countries. They have been utilized here but how long before they can have a proper impact in South Asian countries?

What I observed, at least in India, is that there seems to be an undue attention given to apps which address the urban mindset and urban needs. There are apps to order food or call taxis but not many which address the social needs of the underprivileged. Everyone is caught up in the question of monetization. Most people developing apps have a belief that addressing that segment of the market which has a low disposable income may not be worth chasing because of the low monetization. This mindset has to be addressed first before we can see apps being made which will address social needs.

Q What prospects and new

developments can we look forward to in terms of apps in 2016?

In 2016, more and more app developers, marketers and brands are going to pay attention to design. When I say design I’m not just referring to looks but also how it’s going to work. They will have to pay attention to the user experience and user interactions.

www.icebusinesstimes.net

CARRIE CHEN

Carrie Chen

Digital Distribution Manager Telenor Digital

on to this digital trend but we don't always have that talent to drive that process and so there's a talent grab that’s going on right now. There aren’t enough people coming into the workforce who understand digital marketing immediately. For me, I had to learn that on the job as I hadn't studied it before. Academia has not caught up with digital marketing yet so there were no courses offered regarding the topic. However, companies like rocket internet and giants like Google and Facebook have huge in house teams of marketers and these people are gaining the right knowledge regarding digital marketing. Hopefully they'll eventually take it to other companies which will help train other people.

Q The app economy has grown

over in size over the years. How are apps contributing to the digital marketing arena?

Carrie Chen is a part of Telenor Digital’s Digital Distribution and Marketing team, focusing on reaching out to consumers in a targeted and relevant way within Telenor’s app products and in various external digital channels. Prior to joining Telenor Digital, Carrie was responsible for leading digital marketing operations of Indonesia’s biggest online classified site, Berniaga.com (now known as OLX Indonesia). She led a team comprising of SEM specialists, Facebook campaign specialists, and a mobile analyst. She was also part of the start-up team that launched Chotot.vn, Vietnam’s no.1 online classifieds player.

Q Over the years the digital market landscape

has changed vastly while trying to adjust with the ever evolving consumer behaviorism. What are your thoughts on this?

People are shifting their attention from TVs, console games and other mediums to mobile phones so advertisers are also shifting their resources to this platform. That is helping drive the growth of a lot of internet based companies like Facebook and Google. Seeing this, a lot of other companies are asking questions about how they can also participate in this growing ecosystem. It started with the likes of PPC (Pay-Per Click) and ad banners on websites and it has evolved from there to have more interesting formats. Now we are moving towards Real-Time Bidding and buying and selling Ad Impressions in real and this has been helped by lower costs and more efficient targeting. We have come a long way in terms of digital marketing but a lot of companies have not been able to keep up with the fast moving digital advertising industry. Everyone is trying to catch

First you need to ask yourself if an app is relevant for your business objective and then move forward accordingly. If you're a cement or furniture company and you want to make an app, you have to ask yourself about what you would do with that app first. Apps are more relevant to businesses who are more consumer facing rather than b2b. Apps are a medium for companies to reach out to end consumers so it's more relevant to the b2c companies. We need to think of marketing them in a more contextual more highly targeted manner to make them more effective.

Q What will drive app producers to make more effective apps which will actually be tailored to solve problems?

Smartphone penetration is already around 50% in Bangladesh and in a few more years we’ll see that the majority of the people are using them. When that happens we will see more data usage and more people getting tech savvy regarding apps so they will have higher expectations regarding what to expect from them. According to projections mobile data traffic in Asia will increase 11 times from 2014 to 2020 which is incredible. The Asia Pacific, as a region, is going to command the biggest share of mobile data traffic in the world.

WORD OF MOUTH

Economy

Russia’s Participation in APEC Summit, Manila, November 18-19, 2015

А regular Asia-Pacific Economic Cooperation (APEC) Leaders’ Meeting took place in Manila on November 18-19, 2015. The forum’s agenda has been focused on a set of issues of promoting trade and investment cooperation and deepening economic integration in the Asia-Pacific region, as well as in the context of spreading sub-regional trade agreements. The Russian Federation together with China had blocked the US attempts to define the model of Trans-Pacific Partnership (TPP) as a new “standard” of international trade rules. The Russian Federation actively facilitated the securing of the roadmap, approved in Beijing in 2014, for the APEC’s advancement towards establishing Asia-Pacific free trade zone as a regional preferential agreement based on all existing integration initiatives including the Eurasian Economic Union (EAEU). Due attention was paid to issues of improving transport, information and communication as well as energy infrastructure. In this respect, the forum supported the Russian position on the necessity to use global satellite navigation systems in order to ensure profitable, reliable and safe supply chains, to create the confidence zone while developing internet-economy, on interconnection between implementing information & communication technologies and developing human capital, to increase the share of nuclear power in the energy balance of the Asia Pacific in order to ensure its energy security. Another important outcome of the summit was the APEC “turn”, made under the Philippines’ leadership, to prioritizing satisfaction of the regional emerging economies’ needs. We believe that the vector set by the Philippines, is to remain in the foreseeable future, keeping in mind Peru, Vietnam, Papua New Guinea, Chile and Malaysia chairing the APEC throughout 2016-2020, respectively. The APEC Leaders adopted the Declaration on

necessity to strengthen counter-terrorism cooperation. Despite the American persistent opposition the majority of the Forum supported the Russian formulas, including denouncement of the terror attack on the Russian airliner over the Sinai. A useful dialogue unveiled within the framework of the Leaders’ traditional meeting with the members of the APEC Business Consulting Council and within the framework of the Business Summit. The next APEC Summit is scheduled to take place in Lima (Peru) on November 19-20, 2016.

Aviation

Emirates to reinforce its A380 network in 2016

Emirates announced that it will deploy its highly-popular A380 to even more destinations across its network in 2016 – reinforcing its commitment to provide an enhanced onboard experience for its passengers. Birmingham, Prague and Taipei have been added to the growing list of Emirates A380 destinations, making Emirates the first and only airline to operate a scheduled A380 service from each of these destinations. One of Emirates’ daily Birmingham flight will be up-gauged to an A380 beginning 27th March 2016. Emirates A380 services to Prague and Taiwan will start from 1st May 2016. Additionally, Barcelona will be served with a second daily Emirates A380 service from 1st June 2016. Flying the world’s largest fleet of A380 aircraft at 71, Emirates continues to set the pace for A380 deployment. Since Emirates launched is first A380 flight in 2008, the aircraft has flown over 42 million passengers, covering more than 630 million kilometres. On a three-class configured Emirates A380, there are up to 429 seats in Economy Class, 76 lie-flat seats in Business Class and 14 Private Suites in First Class where passengers also have access to the world’s only onboard Shower Spas. First Class and Business Class passengers can also socialise at 40,000 feet at the Onboard Lounge. Emirates’ two-class configured A380 features 58 flat-bed seats and the Onboard Lounge in Business Class, and 557 spacious seats in Economy Class. There are currently 36 A380 destinations on the Emirates network, setting the industry benchmark for both A380 connectivity and customer experience.

www.icebusinesstimes.net

GIG ECONOMY

Wiring into the era of the digital gig business

The Growth of the Gig By Ashfaque Zaman

With companies that implement contingent labor, the employees have the freedom to choose when and which services that they are capable or willing to provide.

Andrew Berlin started his company, Berlin Packaging, in the early 1990’s. A time during, which the company had grown to a net worth of $40 million; today his company has reached an astonishing total of $1.4 billion. When asked why he practices the traditional idea of hiring full-time employees as opposed to hiring contractors for individual projects, he postulated that contractors don’t have the same level of commitment and his employees are more conscious of beating the competition and ensuring customer satisfaction. Berlin has developed an enterprise with the liberty to prioritize product and service quality. However with the digital era, the emergence of the gig economy, this modern day approach is gradually taking over how many companies conduct their business. The gig economy is a service through which a tech medium is connecting the customer with the provider of the product that he or

she desires. The term “gig” comes from the musical term coined for temporary employment; employees are provided with the liberty of what is known as contingent labor; a system that allows them the liberty to work at their convenience and necessity. Uber, an American international transportation network company, provides car services to customers via the Uber mobile app. Customers submit their destination request to the app, which relays the message to any of the Uber drivers. These drivers utilize their own vehicles and will notify the customer that they are able to provide the required transportation system. Starting in San Francisco in 2009, the company has grown to provide services in 58 countries and is worth an estimated $62.5 billion. Gig companies such as Uber, provide their employees with a much greater amount of flexibility. With companies that implement contingent labor, the employees

DIFFERENT PERSPECTIVE

All charts refer to the conditions in America, in accordance to the information they are providing. Figure 5: New Jobs, Traditional vs. Contingent, 1995-2013 100% 80% 60% 40% 20% 0% 1995- 2001

2001- 2005 Traditional

2005- 2013

Contingent

The chart depicts the majority of workers employed under the traditional arrangements until 2001. This is sharp contrast is resultant of the recession during the start of the millennium, which was followed by the Great Recession and anemic recovery from 2007. The dynamic of contingent labor remains in practice because employers shun the idea of a long-term agreement.

Figure 4: Average Weekly Earnings, Traditional vs. Contingent Employment Average weekly earning

$900 $850 $800 $750 $700 $650 Contingent Cash w ages

Traditional

Government mandated benefits

Note: Vertical axis begins at $650, to show detail.

There is an increase of cash income for contingent workers. However the government and employer benefits profoundly compensate for this difference. Figure 3: Contingent Labor, College and University Faculty 75% 70% 65% 60% 55% 50% 45%

11 20

95 19

9 19

8 19

40% 19

have the freedom to choose when and which services that they are capable or willing to provide. The absences of a long-standing contract with a definitive degrees of labor or time, allows for the flexibility of working hours. Contingent laborers are allowed to work for multiple companies, distributing their time, as they deem profitable. This system also proves beneficial to the employer; given that employees are essentially independent contractors, companies are not required to pay government mandated benefits such as Social Security, unemployment insurance, or workers’ compensation. Many experts argue that the degree of anonymity between the two parties provide the companies with advantage of not considering the needs of the employees. It also provides the employee with a much greater degree of instability because it is a temporary income that will not necessarily remain constant due to changing demands. With the inevitable growth of the gig economy, these employee benefits are being recognized by a number of companies. Eliza Kinrose, quit her job as a retailer, working for a deliveryman for the gig company, Postmate. With the liberty to work 10 hours a day, earning upto $15 dollars per hour for six month, she was able to start a yoga business. Kinrose had never considered the mandated health insurance; she would receive if she had remained under her previous employment. She was contacted by the health insurance broker service, Stride Health, which creates health plans in accordance to the person’s needs. They are taking advantages of the Affordable Care Act, offering web and mobile services to assist customers upon their purchase of a health plan. Stride Health has taken a crucial roll in the on-going debate between policymakers, and all invested parties as to whether these companies should treat their workers as employees or private contractors. Uber is currently facing a class action lawsuit by three employees, who believe that they should be

Many assimilate the idea of contingent workers as “day laborers”. The line graph debunks this idea, illustrating that this idea is applicable to all work fields. Adjuncts and part-time professors account for a majority of college faculties. College and universities hire them because they can match the demands of the class more precisely according to each faculty and the economic benefit of paying the adjuncts less.

considered employees under the law. The California Labor Commission ruled against Uber decreeing that they must reimburse these employees for their business expenses. Implementing the classification of independent contractor to employees, mandating Uber to provide expenses and benefits, would cost $209 million dollars a year in the state of California alone. Under the Affordable Care Act, these companies have to provide insurance for those employees that work for more that 30 hours. Uber may opt out of this predicament by paying a fee or capping workers’ hours to 29 hours per week, constituting them as part-time employees. Is the future of the gig economy as temporary as the employment that it provides? Given that its dynamic is uncountable, it is reminiscent of navigating the ocean depth without sonar navigation, making its future debatable. According to the Wall Street Journal, the number of self-employed workers has decreased from 68.5% in 1995 to 6.5%, today. And the share of employees, who hold multiple jobs, has decreased 6.3% to 4.8% in the same years. On the other hand, Harvard economist Larry Katz infers that the current measure of self-employment and multiple-job holding are missing the consideration of large part of the gig economy. This is further evident from more research from management software company Inuit. Their research concludes that 3.2 million American workers are actively engaged in gig-work; with the number increasing to 7.6 million by the year 2020. It also predicts that 40% in the US workers will be part of the contingent workforce in that same year. Sara Horowitz, the executive director of Freelancing Union, believes that freelancing is the new normal. Corresponding her observation is the fact that one in three (53 million) workers are freelancing and this number will increase to 65 million, nearly half of the total workforce within ten years.

www.icebusinesstimes.net

FINANCING TERRORISM

FUELLING THE BLOODSHED By Sheahan Nasir Bhuiyan

Terrorist organizations in the past have also raised money but ISIS has taken it to a whole new level.

The rise of ISIS over the last two years has been absolutely phenomenal. Back in 2013, most of us disregarded it as yet another Middle Eastern terrorist organization, creating chaos and misery for people in Iraq and Syria. Two years later we can see that perceptions have changed vastly. In the space of a little over 24 months, the organization has swelled to control an area the size of Britain, drawing in supporters from all across the world. They’ve carried out numerous atrocities not just in the area it operates, but all over the world, including the latest attacks in Paris. According to numerous sources, including the BBC and Forbes, ISIS earned a staggering $2 billion in revenue in 2014 alone, making it the richest terrorist organization by a mile, ahead of Hamas (earnings of $1 billion in 2014). Towards the end of 2014, the

UN published a report claiming the organization made up to $1.6 million PER DAY through sales of oil from captured oil fields. Terrorist organizations in the past have also raised money but ISIS has taken it to a whole new level. Their strategy and their operations resemble a “well-oiled” business organization, rather than a group of uneducated, gun wielding fanatics. The Rand Corporation has even claimed that ISIS’ management model is “more akin to that of General Motors than a religious dynasty from the Dark Ages”. It makes sense. The model goes in line with everything else we’ve seen, including sophisticated use of social media, production value for their content, and their tech-savvy-ness. In fact, ISIS probably utilizes more modern technology than a lot of organizations in Bangladesh!

ISIS What ISIS has done is take an existing model of terror-financing, incorporated it within their system, added new components and turned it into a juggernaut financial machine, all within a short space of time. Here’s a look at how they’ve accomplished this:

HOSTAGE TRADE

Kidnap for ransom is an increasingly popular method for terrorist organizations to fund themselves. A New York Times investigation in 2014 revealed that since 2008, Al-Qaida and its affiliates have amassed an astonishing $125 million through ransoms. Abubakar Shekau, the leader of Boko Haram was smiling as he told the world of his plans to abduct 200 schoolgirls for ransom. ISIS alone has raised approximately $45 million in just the past year. This is a very difficult area for governments to deal with. Some countries pay ransoms to release their citizens from the clutches of terrorists like France, while others like the United States and Japan do not, prompting ISIS to slaughter their citizens.

DONORS

LOOTING AND SELLING ANCIENT ARTEFACTS

Vice News and the New York Times both published documentaries and articles highlighting how artifacts are stolen from ancient sites in both Iraq and Syria and then sold in the black market. ISIS involvement in this was thrown under the international limelight when ISIS took over the ancient Syrian city of Palmyra. The videos they released show them destroying the artifacts in the name of Islam but experts tell us that they only destroy items that do not have much monetary value. ISIS went to great lengths to obtain information regarding the value of ancient artifacts including torturing and then hanging 81 year old Khaled al-Assad, who served as the senior archeologist at the 3,000 year old city.

OIL PRODUCTION

Traditionally, organisations such as Al-Qaida obtained a lot of funding through donations from the “Golden Chain” a group of Gulf states who are sympathetic towards their goals. Although donations no longer form a large portion of ISIS funding, others are still very reliant on such. Often, donations are received from other terrorist organisations, such as when Boko Haram received funds from Al-Qaida in 2012.

DRUGS AND BANK ROBBERIES

Groups like Al-Shabab in Somalia and the notorious Taliban in Afghanistan have made drug trafficking a major source of their income. Afghanistan is well known for opium production and despite the NATO-led war which has been waging for 13 years now, poppy production is at an all time high. There have been no reports of ISIS engaging in drug trafficking yet. However, ISIS more than makes up for it by looting the banks in the cities it targets. Numerous reports suggest that they have stolen close to $500 million from banks in Mosul. As you can see, they have planned it very well. They knew how much was required to reach their goals, and they figured out ways to obtain it. They’ve got the latest weapons and equipments (including a FLEET of Toyota Hilux), they pay their soldiers as well their widows and take care of orphans. They pretty much run an entire economy.

ISIS has taken over oil fields in northern Iraq and Syria, and as mentioned above, makes roughly $1.6 million a day from oil sales. Routes and networks that have been set up during the Saddam era are still being utilized. ISIS sells to people who are in desperate need of oil through masked channels so it becomes extremely difficult to pinpoint the source of oil. Boko Haram in Nigeria has also funded their efforts through oil sales but nowhere near the same extent as ISIS.

EXTORTION

ISIS imposes taxes and levies on the population it controls. It places taxes on items that are already being provided by the Iraqi and the Syrian government, like health and education. They also collect toll from people crossing its claimed border, and even imposes fines for smoking and wearing the wrong clothes. It also operates like the Mafia, offering protection in return for money. The worst hit by this are the minority groups like Christians stuck in Mosul, who are charged a higher rate of tax for being within their territory.

Things are not all gloom and doom though. Recent airstrikes targeted at ISIS controlled oil fields have put a dampener on their oil production. Moreover, the global reduction in oil prices means their once cheaper alternatives are no longer as attractive. The UN has recently backed a proposition to enforce more rigorously existing rules that are designed to restrict the flow of funds to ISIS. So great is the threat of ISIS that Russia and the United States are actually working together to set up more sophisticated financial controls. Already the group is feeling the pinch. They have not been able to garner the same level of attention they initially managed and many believe the Paris attacks were more in desperation rather than an exhibition of their strength. It seems the only way to truly stop this group is to find a way to make sure their money supply is shut down. www.icebusinesstimes.net

WORLD LEADERS

2016

Top Ten People to look out for in

Susan Wojcicki

The first person on this list, Susan Wojcicki was Google’s 16th employee and its first marketing executive. She became the CEO of YouTube in February 2014, having engineered the acquisition for $1.65 million back in 2006. Forget about the fact that since then, she’s done brilliantly to increase revenue for Google and let’s look at her plans for next year. If you are into Virtual Reality (VR), then be very excited as Wojcicki is leading her team into its realm. Based on what they’ve already accomplished with Google Cardboard, a cardboard box with lenses which uses an Android smartphone to give users VR experience for cheap, we are looking forward to seeing what they will come up with in 2016.

Elon Musk

Musk is the closest thing to Iron Man in real life. At only 44, he is the CEO and CTO of SpaceX and the CEO of Tesla Motors. He’s scheduled a lot for 2016 and first on is the eagerly awaited reveal of Tesla Model 3 which will be Tesla’s most affordable car at $35,000. Exciting times for a world that just agreed to eradicate fossil fuel usage! Musk wants to produce 500,000 cars annually over the next few years which means Tesla alone would require today’s entire worldwide production of lithium ion batteries. Fear not, for 2016 sees production of such batteries begin in Tesla’s Gigafactory, a $5 billion establishment in Nevada. Expect massive improvements in battery life in all lithium ion devices.

Finally, we will also see the Hyperloop Transportaion System to commence testing next year. The company, Hyperloop Technologies, isn’t affiliated with Musk in any way but it was his paper back in 2013 which laid down the blueprints for scientists and entrepreneurs to build a track which would propel you in pod at speeds of 1,200 km/h. That’s almost the speed of sound. Boom!

Christine Lagarde

Christine Lagarde is the Managing Director of the IMF (International Monetary Fund, not Impossible Mission Force). She’s been at the helm since 2011 but next year may be her most important yet. This year saw the expiration of the Millennium Development

Goals and the enactment of Sustainable Development Goals, as well as the landmark decision to eradicate fossil fuel usage at COP21 in Paris, both of which will have huge implications for policy decisions at IMF. Lagarde will have to handle this transitional period with sound policies that incorporate sustainable growth models across the globe. Her motto for next year is to “do things right” and she has outlined three “right” things to do for the year ahead: 1. Lifting today’s growth 2. Boosting growth over the medium term 3. Fostering sustainable, long-term growth As part of a developing country, it will be really important for us that her policies shape growth and development all across the globe.

TOP TEN

interest rates and the depreciation of the Yuan. Apart from economics, Beijing is being increasingly aggressive in its pursuit of strength in the international arena, with its incursions into the South China Seas and its involvement in dealing with ISIS. The Yuan was recently given a reserve status by the IMF. 2016 will be a massive year for Xi Jinping and China as they continue to attain its economic goals and as well as international recognition.

Angela Merkel

David Cameron

2016 will be a massive year for David Cameron and Britons. The referendum on whether they stay in the European Union or leave is scheduled for next year. Proponents for “Brexit” argue that the British economy is doing much better than the Eurozone. They are also against the free movement of people within the EU and would rather avoid the current migration crisis. Mr. Cameron on the other hand is firmly on the “Bremain” side. Leaving the EU may lead to Scotland’s independence. Britain would lose access to single markets like Norway and Switzerland. It would also be quite ridiculous to leave the EU just as the Transatlantic Trade and Investment Partnership (TTIP) comes into action. Finally, aggressive Russian involvement in international affairs mean a unified Europe will be better for Britain. Whichever way the vote swings, it will have massive effects on the rest of the world.

Although elections in Germany are not till October 2017, Angela Merkel’s actions next year will decide whether she is elected for a fourth term. Frankly, it is a bit bemusing that her qualities as a leader are even being questioned. She fought off recession during the global economic crisis with stimulus packages and government subsidies and managed to hold the Eurozone together. She convinced her fellow EU colleagues to adopt strict sanctions against Russia over their invasion of Ukraine and even managed to win Vladimir Putin’s admiration in the process. She’s accomplished all this and more without alienating either Germany’s or Europe’s interests. Even when handling the migrant crisis, she upheld European values and welcomed refugees with open arms. It is her decision to do so which her critics have attacked her for. The rise of right wing sentiments is very prevalent in Europe and a lot of them are not being able to accept her policies in dealing with refugees. Next year will see how her policies in this situation has fared, and whether it will be enough to win over her sceptics again.

Xi Jinping

So heavily is China’s growth tied into the world economy that the saying goes, “if China sneezes, the world catches a cold”. Analysts from Barclays and UBS have predicted a fall in Chinese economic growth in 2016, projected to be around 6% and 6.2% respectively while Citi has put it at a more modest 5%. President Xi Jinping and his top leaders have pledged to keep the growth rate within a reasonable range by expanding domestic demand and making supply-side improvements. We can expect similar policies that were adopted in 2015 including the lowering of

Vladimir Putin

Vladimir Putin will probably always feature in lists like this as long as he remains president of Russia. He enjoys a superstar status amongst Russians, and loves to be seen as a macho man (bare chested holding a rifle?) who will make Russia great again. Unfortunately, the current state of the Russian economy is

www.icebusinesstimes.net

WORLD LEADERS

anything but. It is currently so weak that the growth projection for 2016 is a tiny 0.7%. Russia is the largest exporter of oil and the recent plunges in oil prices have thrown every previous projection out the window. The sanctions placed on them after their invasion of Ukraine are also hitting hard. The hardships are starting to hit the working class, possibly Putin’s biggest supporters. So serious are conditions that in his annual presidential address, Mr. Putin chose to focus more on oil prices and social issues and ignored the usual rhetoric of anti-Americanism. Ukraine was not even mentioned. Russia’s reliance on oil and the fact that oil prices will probably remain low for the foreseeable future mean that the Russian economy will most likely remain stagnant over the next year. But Russians love their President for two reasons: wealth and military strength. Since Mr. Putin cannot deliver on the wealth, expect him to flex his military muscles in 2016 in global conflicts.

Hilary Clinton

The next President of the United States. Her only real competition is Bernie

Sanders and his left-leaning ideas and despite him enjoying popularity at the moment, Americans tend to vote more towards the centre come election time. As for Republicans, there is no challenger who can compete against Hilary. There is no point in discussing the fad that is Donald Trump. Possibly Marco Rubio, but even he does not pose a serious threat. Assuming she does win the general elections in 2016, she will have to deal with a host of issues. She will be thrust into a world dealing with ISIS; Russia and China, all of whom are trying to make a splash for global attention. While Bernie Sanders favors isolationism and wants the United States not to take part in conflicts that do not involve the United States, Hilary is of the opposing view. As such it will be really interesting to hear more about how she expects to deal with all this. Maybe she can take a leaf out of Merkel’s book? On the domestic front, she will be expected to deal with social issues such as gun control, women, racism, unemployment, and many more. No other country in the world carries out Presidential campaigns like the Americans do so keep a lookout for them throughout next year.

Melinda Gates

Back to inspiring people! Melinda Gates is the co-founder of Bill & Melinda Gates Foundation. She is in charge of the organization’s directions and she is the one who reviews the results. Since its inception, they’ve given out $34.5 billion in grants, with $3.9 billion in 2014 alone. She has no plans on stopping any time soon and has incredible things planned for 2016. She recognizes the role data can play in development and is currently incorporating technology that utilizes big data to deliver development goals. One such project is being piloted in our very own backyard! Her intervention is utilizing data from the Women’s Empowerment in Agricultural Index (WEAI) to determine which ways of working with Bangladeshi women farmers do the most good in certain areas of the country. Collection of data is still at a very early stage and she expects to go full swing in 2016. Here’s to Melinda Gates having an amazing 2016 and helping the world get rid of poverty!

And finally,

David Beckham Because he is David Beckham.

We hope you’ve enjoyed this list. We tried to balance the inspiring from the important. And a bit of cheek!

TECH

BOOKING NOW !!!

Productivity At Your Fingertips Put those fancy gadgets to some proper use at work

N By Abhijit asad

No matter what our field of work is, there is always room for improvement when it comes to matters such as efficiency and productivity. Speaking from personal experience, more often than not, we spend a spectacular amount of time simply procrastinating, or wondering which angle(s) we should consider when tackling a particular problem. The deciding process often takes longer than the actual task itself, especially if you are trying to do it all in your head. Yes, the trusty old pen and notebook are still formidable allies if you want to keep track of things, but writing as a practice is dwindling as a whole outside of academic institutions, and moreover, if you are blessed with atrocious handwriting like yours truly, even trying to decipher your own notes can be quite the chore. Fortunately, this is where technology comes in with a collection of unique helping hands. www.icebusinesstimes.net

TECH

Trello

First of all, let’s focus on a task by breaking it down to its simpler components. For this, we can make use of a service called Trello (www.trello.com), a web-based task management system with apps available for Android and iOS as well. Extremely robust and user-friendly, Trello can be used on a strictly personal basis or by a team of people working together on a certain project. Trello takes a list-driven approach to task handling, allowing the user to list the subcomponents of each task separately, assigning diverse labels to different kinds of tasks, and even assigning specific team members to specific aspects of a task. Each listed subcomponent takes the form of a ‘card’ on a Trello list. A Trello ‘board’ can contain several of these lists, depending on the complexity of the project at hand. The cards can be ordered around on a priority basis, or moved around from list to list as seen fit by the team members or the team admin (depending on the nature of control imposed), and even archived once a task is completed. Reference files or documents can be attached to each card, along with a smattering of other options, such as a deadline alert, and checklists which automatically fill up a progress bar as each item on the list is checked off. It may sound like a minor detail, but seeing such a visual representation of completion serves as a direct motivator when working, and the component-based organized approach doesn’t hurt either. If that wasn’t enough, each card also houses its own commenting thread for the purpose of specifically discussing its contents, or for providing more detailed updates on it. However, what makes Trello especially interesting is that every little change that is made to the board by any member of the team – starting from adding, editing or archiving cards, to simply checking a single

item on a checklist in one of the cards – gets synchronized to all users’ devices, be it their computers, phones or tablets, in real time. This allows team leaders to observe their teams’ progress at a glance, and immediately intervene upon detecting any problems in the workflow. Trello can be used for free with some minor limitations, none of which should critically impair user functionality. However, paid options (‘Trello Gold’) are also available for those who are willing to spend money on them, which only makes it even better.

Slack

Don’t let the odd name deceive you – Slack (www.slack.com) is perhaps the coolest thing on this list. While Trello is excellent for keeping track of collaborative teamwork, sometimes you require in-office communications to be instantaneous and structured – something that is simply not possible even over conventional instant messaging platforms. And that is where Slack comes into play. Slack basically grants your team with its own chat server, where any team member can open up a ‘channel’ on any particular subject, and invite specific relevant team members to it for the purpose of carrying out a discussion. For example, if someone wants to discuss about the sales of Product X, opening a channel called #productxsales and adding up the people tied to it is but a matter of a few clicks. You can even carry out direct one-to-one conversations with any team member if you need to have a private word. Since the chats are isolated from each other, each topic is easy to keep track of, and no one is present in a conversation where they do not belong. If someone is added to a channel by mistake, they can simply exit the chat. If a channel’s utility has ended,

it can be easily closed down. Slack’s real beauty, however, lies in its augmentations that take it way past being just a stratified instant messaging program. It allows lossless file transfers over its channels, and even lets users pass along delicately formatted fragments of code or text in the form of ‘snippets’ (a complete godsend for coders). Each user can also mark messages of importance to them with stars next to the message, and call them up at a moment’s notice. The last feature is especially invaluable when keeping track of important instructions or credentials is an absolute necessity. It can be interestingly noted here that Slack even supports integration with Trello, and a dedicated channel can be kept open on Slack to report any changes made on the Trello board. It also supports integrations with a myriad of other platforms, with varying degrees of effectivity. Like Trello, Slack is also truly cross-platform, and you can get it for Windows and Mac OS X as well as Android and iOS. You can even run it in a browser window with desktop notifications enabled. What’s more, it is completely free, and none of its features cost even a cent. A better deal than that is very hard to find.

Google Docs/ Sheets/Slides

Unlike the two tools mentioned earlier, this one is already rather well-known, but very few people can use them to their fullest potential. Not only can they collectively function as a very high-quality and feature-rich office productivity suite running within your web browser, but they are also ideal for collaborative authoring of documents, spreadsheets or presentations – when multiple people need to work on the same file together.

PRODUCTIVITY

It’s shockingly easy, actually. Simply share the file you are working on with the Gmail addresses of other users on your team, and they will be able to access it, and even make changes to it if permitted. When multiple users are working on a document together, it can be a truly fascinating experience, seeing the brightly coloured cursors of the other users move across the document and make edits right before your eyes – Google also allows for perfectly real-time synchronization of these changes. Once you are done working on a document on Google Drive, you can easily have it exported to a comfortable read-only format like PDF, or to a widely compatible editable format like Microsoft’s DOCX standard, all without even having to leave your browser for an instant. Google Drive is free to use and enjoy, and unless you are in dire need of extra storage beyond the gigabytes offered by Google for free, you won’t need to spend anything behind it any point.

protocols to ensure that no one gets even a whiff of your files without the right credentials. Each file comes with its own encryption key, and access to them can be restricted very concisely, down to granting access only to individual files and folders. Data uploads and downloads are snappy even over not-too-stable connections, and the speeds are limited only to your ISP subscription package. MEGA has apps out for Android and iOS, and has a software client called MEGAsync for Windows and Mac OS X users as well. The site can be accessed and run in-browser as well, without any noticeable lack of performance. Fun Fact: If even 50 GB of free cloud storage seems too inadequate to you (which is rather unlikely), you can pay to have it boosted to 4 TB – that is to say 4,096 GB.

Clock MEGA

Speaking of storage space, it is always a good idea to move the files of all completed and in-progress projects to a safe and encrypted cloud backup. Dropbox is considered a major player when it comes to cloud storage, despite providing only a paltry 2 GB of space by default, and having servers that frequently overload and/or lock people out of downloading important files. Google’s Drive and Microsoft’s OneDrive are also solid solutions, offering a more respectable 15 GB each. However, superior to both is the relatively new entrant MEGA (www.mega.co.nz), which offers a whopping 50 GB free space out of the box, along with heavy encryption

Last but not the least, did you know that the humble Clock app on your phone or tablet can do wonders? When working on a certain task, challenge yourself by setting a short countdown timer on your Clock app, and put it somewhere visible. It would contribute greatly to preventing you from getting easily distracted, and you can even reward yourself with a short break if you finish ahead of schedule. And even if you are a bit late, you can still take a look at the timer and realize how you can do better next time, be it by choosing better methods or by setting a more realistic deadline – the choice is all yours!

www.icebusinesstimes.net

CAPITAL MARKET UPDATE

Sl. No. 1 2 3 4 5 6 7 8 9 10

Sl. No. 1

Top Ten Companies by Turnover Value for this fortnight November 16-30, 2015) Name of the Securities Category Value in Tk. mn Volume in Nos. IFAD Autos Limited SAIF Powertec Limited Beximco Pharma Titas Gas KDS Accessories Limited Square Pharma Quasem Drycells Olympic Industries Lafarge Surma Cement Far Chemical Industries Limited

N A A A N A A A A A

2,234.40 1,906.30 1,600.80 1,139.66 1,136.33 1,074.88 993.62 907.38 855.92 822.90

% of total Value

21,176,023 26,593,733 21,082,174 21,086,117 14,452,433 4,296,706 10,056,194 3,228,319 10,289,261 25,667,140

Top Ten Companies by Turnover Volume for this fortnight November 16-30, 2015) Name of the Securities Category Volume in Nos. Value in Tk. mn

4.83 4.12 3.46 2.46 2.46 2.32 2.15 1.96 1.85 1.78

% of total Value

United Airways (BD) Ltd

53,504,294

476.69

4.17

Al-Arafah Islami Bank

48,515,155

761.30

3.78

3 4

C & A Textiles Limited Generation Next Fashions Ltd.

A A

41,953,617 33,706,634

508.55 316.01

3.27 2.63

One Bank Limited

31,686,701

476.95

2.47

SAIF Powertec Limited

26,593,733

1,906.30

2.07 2.00

Far Chemical Industries Limited

25,667,140

822.90

BEXIMCO

25,598,828

729.81

1.99

Appollo Ispat Complex Ltd.

22,663,539

407.44

1.77

Simtex Industries Limited

21,218,896

586.15

1.65

Top Ten Gainer Companies by Closing Price for this fortnight (November 16-30, 2015) Sl. No. Name of the Securities

1 2 3 4 5 6 7 8 9 10

Sl. No.

1 2 3 4 5 6 7 8 9 10

Information Services Network M.I. Cement Factory Limited Phoenix Finance Quasem Drycells Delta Life Insurance Al-Arafah Islami Bank Far Chemical Industries Limited KDS Accessories Limited Olympic Accessories Limited Janata Insurance

Category

B A A A A A A N N A

Current Fortnight Closing Price in Tk. 14.60 82.90 20.50 106.30 101.70 15.30 31.70 85.90 37.20 12.60

Last Fortnight Closing Price in Tk. 10.30 64.10 16.00 87.20 83.80 12.70 26.40 72.30 31.40 10.80

% of Change

41.75 29.33 28.13 21.90 21.36 20.47 20.08 18.81 18.47 16.67

Value in Tk. mn

24.69 199.68 258.07 993.62 316.12 761.30 822.90 1,136.33 352.04 5.04

Top Ten Loser Companies by Closing Price for this fortnight (November 16-30, 2015) Name of the Securities Category Current Last Fortnight % of Value in Fortnight Closing Price Change Tk. mn Closing in Tk. Price in Tk. Rahim Textile Gemini Sea Food Modern Dyeing & Screen Printing Ltd. Olympic Industries The Ibn Sina Desh Garments Fu Wang Food CVO Petrochemical ReďŹ nery Limited IFAD Autos Limited Bangas

Average Daily Value Traded Tk. mn 2.24 18.15 23.46 90.33 28.74 69.21 74.81 103.30 32.00 0.46

Average Daily Value Traded Tk. mn

A B Z

215.40 333.70 109.60

300.80 429.50 140.70

(28.39) (22.31) (22.10)

28.02 47.17 2.47

2.55 4.29 0.22

A A A A

248.90 127.70 128.40 16.10

306.10 153.10 152.90 18.60

(18.69) (16.59) (16.02) (13.44)

907.38 149.17 74.56 109.78

82.49 13.56 6.78 9.98

348.90

400.90

(12.97)

515.21

46.84

N A

108.60 251.90

122.70 284.60

(11.49) (11.49)

2,234.40 170.08

203.13 15.46

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

CAPITAL MARKET UPDATE Top Ten Companies by Turnover Value for this fortnight (December 1-15, 2015) Sl. No. 1 2 3 4 5 6 7 8 9 10

Name of the Securities

Category

BeximcoPharma BSRM Steels Limited Square Pharma QuasemDrycells Delta Life Insurance KDS Accessories Limited IFAD Autos Limited SAIF Powertec Limited Aftab Automobiles Khulna Power Company Ltd.

Value in Tk. mn

A A A A A N N A A A

Volume in Nos.

2,036.30 1,886.34 1,734.18 1,602.88 1,292.17 1,163.71 1,139.04 1,112.90 959.97 938.41

24,993,382 18,867,003 6,758,757 16,349,378 10,686,756 13,401,032 10,994,214 15,987,540 15,392,886 12,454,852

% of total Value 4.29 3.97 3.65 3.38 2.72 2.45 2.40 2.34 2.02 1.98

Top Ten Companies by Turnover Volume for this fortnight December 1-15, 2015) Sl. No. 1

Name of the Securities

Category

Al-ArafahIslami Bank

Volume in Nos.

Value in Tk. mn

% of total Value 3.75

44,106,187

661.29

43,636,299

347.19

3.71

A A

25,705,949 24,993,382

457.47 2,036.30

2.19 2.12

C & A Textiles Limited

22,734,167

263.76

1.93

Far Chemical Industries Limited

20,831,431

664.68

1.77

BSRM Steels Limited

18,867,003

1,886.34

1.60

Keya Cosmetics

17,604,773

260.49

1.50

9 10

BEXIMCO LR Global Bangladesh Mutual Fund One

A A

17,088,483 16,910,352

482.43 113.95

1.45 1.44

United Airways (BD) Ltd

3 4

AppolloIspat Complex Ltd. BeximcoPharma

5 6 7

Top Ten Gainer Companies by Closing Price for this fortnight (December 1-15, 2015) Sl. No.

Name of the Securities

Category

1 2 3 4

Desh Garments Meghna Life Insurance First Bangladesh Fixed Income Fund Delta Life Insurance

A A A A

Current Fortnight Closing Price in Tk. 176.60 61.00 6.90 127.70

5 6 7 8 9 10

Apex Spinning. GQ Ball Pen Rupali Life Insurance Company Limited Bangladesh Lamps Global Insurance Navana CNG Limited

A A A A A A

91.60 73.00 34.80 229.50 14.00 50.70

Last Fortnight Closing Price in Tk. 128.40 47.70 5.40 101.70 73.00 60.00 29.30 193.70 12.00 44.10

% of Change

Value in Tk. mn

Average Daily Value Traded Tk. mn

37.54 27.88 27.78 25.57

113.87 148.84 1.90 1,292.17

10.35 13.53 0.17 117.47

25.48 21.67 18.77 18.48 16.67 14.97

145.00 44.06 87.94 77.82 32.57 300.50

13.18 4.01 7.99 7.07 2.96 27.32

Top Ten Loser Companies by Closing Price for this fortnight (December 1-15, 2015) Sl. No.

2 3 4 5 6 7

Far East Knitting & Dyeing Industries Limited United Airways (BD) Ltd Simtex Industries Limited Rupali Bank Malek Spinning Mills Limited BIFC C & A Textiles Limited

Current Fortnight Closing Price in Tk. 16.70

A N A A Z A

7.00 20.80 31.90 15.50 8.50 10.60

8 9 10

Metro Spinning MozaďŹ&#x20AC;arHossain Spinning Mills Ltd. Zaheen Spinning Limited

B A A

8.00 26.10 16.30

Name of the Securities

Source: Dhaka Stock Exchange

Category

Last Fortnight Closing Price in Tk. 21.80

% of Change

Value in Tk. mn

Average Daily Value Traded Tk. mn

(23.39)

52.29

4.75

8.60 25.30 38.10 18.30 10.00 12.20

(18.60) (17.79) (16.27) (15.30) (15.00) (13.11)

347.19 337.66 52.43 42.47 25.56 263.76

31.56 30.70 4.77 3.86 2.32 23.98

9.20 30.00 18.70

(13.04) (13.00) (12.83)

12.39 74.15 186.35

1.13 6.74 16.94

www.icebusinesstimes.net

CAPITAL MARKET UPDATE

Capital Market Fair Pleases the Crowd

A three-day “Bangladesh Capital Market Expo 2015” held at the Institute of Diploma Engineers Bangladesh (IDEB) Dhaka. Organized by Arthosuchak, an online business news portal, the exposition aimed at creating awareness among the prospective investors and branding the country’s capital market. Commerce Minister Tofail Ahmed attended the inaugural ceremony as the chief guest while Deputy Governor of Bangladesh Bank M Abul Quasem was the special guest. The Editor of Arthosuchak Ziaur Rahman presided over the ceremony. Tofail Ahmed urged the Bangladesh Bank to be more stock market friendly to uphold the interest of investors for a further balanced growth of the national economy. He expressed his content at the more stable condition of the capital market at present. He added that the government had decided to extend the timeframe for adjusting commercial banks’ overexposure to the capital market by two more years as the situation created panic among the investors in the stock market. The expo had total 65 stalls and in the sidelines of the fair, different seminars were held to raise awareness on the capital market.

Advertisment

WORD OF MOUTH

Alhaj Sufi Mohammad Mizanur Rahman, Chairman, PHP Group is delivering speeches at a five day long ceremony at the Furniture Fair in Chittagong . ICAB awards 24 financial outfits for best presented annual reports 2014

Niaz Rahim, Managing Director, Rhamimafrooz Superstores Limited is receving the best brand award in Superstores category. The event was organized by Bangladesh Brand Forum.

Five day long real estate and housing fair held at the BCCI at Dhaka where a total of 79 companies participated displaying various kinds of stalls ranging from real estate operators, building materials, banks etc. Aftab Mahmud Khurshid, group chief marketing officer of SSG, has recently been recognised as the most influential marketing leader at the World Global Marketing Congress held in Mumbai.

The Federation of Bangladesh Chambers of Commerce & Industry recently held their AGM. Distinguished business leaders representing different sectors attended the meeting

Dhaka (North) Mayor Annisul Huq recently paid a visit to the REHAB Fair 2015 and shared his insights with the business leaders

www.icebusinesstimes.net

WORD OF MOUTH

BASIS holds 17th Annual General Meeting and commits develop domestic IT industry with combined efforts

Axiata Group Berhad (Axiata) announced the expansion of its regional footprint and entry into the Nepal market through the acquisition of its number one mobile operator, Ncell Private Limited (Ncell)

Centre for Policy Dialogue, a private think tank organized a seminar to shed lights on the achievements of Bangladesh on two recent international congregations namely, COP21 and WTO MC-10

H.E. Benoit-Pierre Laramee, the Canadian Ambassador in Bangladesh recently met Mahbubul Alam, President of the Chittagong Chamber of Commerce & Industry (CCCI)

BSRM Group and National Development Programme (NDP), a non-profit organization partnered to create â&#x20AC;&#x2DC;access to financeâ&#x20AC;&#x2122; for the poor in the remote Chars of the Jamuna river basin. An Agreement was signed by BSRM Group Chairman Alihussain Akberali, FCA, CIP, CSR head Ruhi M. Ahmed, Md. Alauddin Khan, ED of NDP at Maxwell Stamp PLC office (manager of Char Livelihoods Programme known as CLP), Gulshan, Dhaka, on December 6, 2015. Rabeya Yasmin, Malcolm Marks, project director MSP, London, Mathew Pritchard of CLP were present as witness