Friday, July 4, 2014

Bangladesh- Suffering the FIFA World Cup fever

With World Cup fever raging around the globe, Asif Reza Akash, 22, a Correspondent from Dhaka in Bangladesh, describes the extraordinary commitment of fans in what is otherwise a cricket-playing nation. Bangladesh, a cricket playing country that organized the last T20 World Cup and the inaugural ceremony of the last Cricket World Cup, is now totally gripped by the football fever.



Yet it is nothing new for Bangladesh. Every FIFA World Cup (WC) makes Bangladeshi people conspicuously crazy for football. Celebration of the biggest football fiesta has shaken almost every country and major cities around the world, but Bangladesh and specifically its capital city, Dhaka, is way different from other cities. A highly populated city is now a city of football jerseys, flags and colour. Most people from all walks of life are fans of either Argentina or Brazil. If neither of those, then Netherlands, Germany or Spain could be the answer but still they are the trifling minority.

Random people in the streets are wearing the jerseys of the nation they support. College students attend classes wearing jerseys or T-shirts. Private cars have mini flags of Argentina or Brazil on a pole in front of the bonnet, which makes it look like Bangladesh is now full of Brazilian or Argentinian ambassadors. Some crazy landlords or owners of five and six storey residential buildings have painted their houses with the colour of Brazilian or Argentinian flags. Almost every rooftop flies the  flags of different nations playing FIFA WC 2014.

Since Bangladesh is a ready-made garments exporter, locally made jerseys and T-shirts are really cheap here. A piece of information readers might find interesting is that the ‘Made in Bangladesh’ tag is attached to the jerseys of Brazilian supporters sitting in the stadiums and enjoying the matches live, because those jerseys were manufactured and exported from Bangladesh. A group of about 50 thousand Bangladeshis is supporting the Honduras team, and that fact went viral all over the news and social media in Honduras. The Honduras team then made a public announcement through their official website that they would dedicate their first WC goal to the fans in Bangladesh. Reportedly, Bangladesh received at least $500 million worth of garment orders to make different teams’ jerseys for fans.

Facebook as well as media in Bangladesh are also very active with FIFA WC trends. Bangladesh watches the matches at 10 PM, 1 AM and 4 AM. So people put Facebook statuses and predict the score line, then analyse the games in the morning. They brag about their favourite team and defend it when it underperforms. Everywhere the discussions are about football. Who played well, who should have been substituted or how the formation could have been are some common topics among friends or passengers in a bus or train.

On university campuses or in public places, several companies arrange the projector and show the matches on giant screens at night, to help people enjoy the World Cup in a crowd atmosphere. However, this serves also as their marketing or branding policy. Once I heard a professor in my university say in humour that all Bangladeshi people know at least three foreign nationals – U.S. president Bush, ex-Al Qaeda boss Osama Bin Laden, and footballer Maradona.

People here wait for FIFA World Cup and when the extravaganza comes after four years they just let it flow with its craziness. Messi, Ronaldo, Rooney are some very common names in Bangladesh among the football-loving people. Even the slum dwellers who cannot afford a TV know them. Though Bangladesh is a football-loving country it has never played in higher levels outside of south Asia. I hope this fiesta will sow an interest among the young generation, and they will take Bangladesh to the FIFA World Cup some day. Hail the FIFA WC 2014, hail Bangladeshi fans!

This article was published in a youth blog under commonwealth on Feb 12, 2014
Link: Click Here

Political unrest poses dire risk to country's economy

Bangladesh faces serious economic consequences from ongoing political unrest, writes Asif Reza Akash, 22, a Correspondent from Dhaka in Bangladesh, who says strikes are taking a toll in rising prices and lost income.

Bangladesh has passed its tenth national parliamentary election under an amended constitution. The previous opposition and major political party BNP and its alliance boycotted the election and put the country under continuous strikes from the early part of October 2013. The economy suffered from this political turmoil, without any doubt. Bangladesh was stagnant for two or three months and surely lagged behind countries such as India, Vietnam, China, and Myanmar in terms of trade, commerce and export.

Garments and textiles, Bangladesh’s biggest sector, has virtually been ruled out of competition as a global exporter country for those turbulent months. Food security has been threatened. Production and investment is clearly facing a downward move. The flow of remittance has declined and watchdog organizations like the World Bank and IMF have expressed their deep concern. In the fiscal year 2013-14, the GDP was anticipated to grow 7.2 per cent, but current World Bank estimates are just 5.7 per cent. Individual-level investment has reportedly been reduced by one to two per cent. Manpower export has receded, which could have a negative impact on remittance inflow.

The textile sector already suffered an image crisis with the Tazreen fire and the RanaPlaza collapse, but the political unrest has destroyed the resilience of this sector. Many import orders from European delegates have been placed in India, Vietnam and other countries instead of Bangladesh. Coming up in June there will be a review of the garment sector by the European Union and if Bangladesh loses, it will be fatal for the textile sector. Though Bangladesh is second in garments export it can lose its position at any time if further actions are not taken. Bangladesh’s Garment Manufacturers and Exporters Association (BGMEA) president claimed that the sector incurred a loss of over Tk. 2,000 crore in the street violence of October and November, while orders worth $2.40 million were cancelled from December 1 to 9.

The banking sector is at a halt now. Newspaper reports show that 28,000 crore taka is deposited idle in bank vaults. Loan supplies, repayment, and banking services have been facing a standstill. Even the world recession of 2008 didn’t affect the banking industry as much as the on-going political unrest did. China’s industry offered to invest ten billion USD in Bangladesh, but later postponed on the grounds of political instability. An important Memorandum of Understanding (MoE) was about to be signed between the UAE and Bangladesh on November 03 but was postponed later for the same reason (Dr. Mijanur Rahman Shelly, 03/12/2013, Bonik Barta).

The worldwide inflationary trend showcases a downfall recently as international food prices have fallen, but here in Bangladesh food prices have increased because of the nationwide blockade. Food carriers have been attacked in many places, which reduces the supply of food in urban areas. As a result prices go up. The transportation charge has increased at least threefold as driving during the strikes involves a high level of risk. In many parts of the country, especially north Bengal, farmers became unable to transport foods and grains to the cities and were deprived of their rightful price. This is how political unrest is forcing city dwellers to buy food at a higher price and keeping the farmers from realizing proper income.The transportation business has suffered greatly. Almost every day, there have been attacks and torchings of cars and buses. From highway to streets there was and still is a continuous tension. A report in BSS (Bangladesh Songbad Songstha) states that “unruly protesters damaged over 350 motor vehicles and torched 325 others at different places of the country during the period from November 25 to December 11”. The same report says “310 violent and sabotage attacks were posed on railway coaches causing a loss of Tk. 10 crore during the period from October 10 to December 9, 2013”.

It is imperative to mention here that, although Bangladesh is advancing and the per capita GDP has risen, a great number of people still live hand to mouth. The rickshaw pullers, CNG drivers, hawkers and many classes of people depend on a meagre daily income. The continuous strike and nationwide blockade has forced them into deprivation. According to Atiqul Islam, President of BGMEA, about five million people working in the RMG sector suffer a loss of Tk. 250 crore on each day of the blockade.

The economy has faced a disaster in this turmoil. Though academically politics and economics are different majors, we must see them as an intertwining subject. The economy cannot go a single step further without proper politics. We cannot afford an economic setback at this juncture, as Bangladesh wants to be a middle income country within the least possible time. The sooner the politicians admit this fact the better it is for the country’s people. 
This article was published in a youth blog under commonwealth on Feb 12, 2014

Link: Click Here

New Power Plant Threatens Agriculture and Food Security in Bangladesh

The government of Bangladesh is advancing plans to install a coal-based thermal power plant in the area of Rampal in the Bagerhaat district. This project is only 10 kilometers away from the Sundarbans, an environmentally critical area, and threatens its very existence.
The Rampal power plant will have hazardous impacts on agriculture and food security, diversity of plants and wildlife, fisheries, the life of local inhabitants, and the area’s topography. The power plant will generate 1,320 megawatts of electricity and will occupy 1,834 acres of land, which is mostly agricultural and shrimp aquaculture ponds.
The distance of the plant from the Sundarbans cannot be considered safe. Its impact on agriculture and food security is so fatal that we cannot sustain and support the project. Unfortunately, the government is going ahead by ignoring public protest.
Though an Environmental Impact Assessment (EIA) report was published in January 2013, its methodology, findings, and recommendations have been highly criticized and even revoked by many specialists because of its deficiencies in estimations and disclosures of truth, as well as for its ambiguity.
The EIA report by the Center for Environment and Geographic Information Services took an area of 10 kilometer radius from the stack location of the proposed plant and showed 75.4 percent (26,344 hectares) is Net Cultivable Area (NCA) in their study scope of 34,955 hectares. It suggests that only 706 hectares of NCA will be compromised by the project site, but it actually has a lethal and circular impact on agriculture.
Once the plant is in operation, it needs huge amounts of coal supplies and the materials used in it will emit hazardous chemicals such as sulfur, carbon dioxide, cadmium, radium, arsenic, lead, mercury and nickel. Reportedly, 220 tons of different toxic gases will be discharged daily from the plant unless they are treated appropriately before emission.
These gases will be spread out by wind and affect the people, trees, soil and livestock. The soil texture (sand, silt and clay) will be damaged by the discharged toxic chemicals, and it will extensively decrease land fertility and production over time.
Interestingly, within 743 hectares of land of the proposed plant, 706 hectares (95 percent) is agricultural land. The EIA report says that 459 of the 706 hectares is a damage-free area, and the lost production is only 467 tons of crops, but that is simply an underestimation of the consequences.
The EIA report also shows annual production loss of paddy is about 9,455 metric tons (project area 467 tons and study area 8,988 tons).
The air, odor and sound pollution will affect local inhabitants and cattle so badly that it will be hardly possible for people to live and cultivate outside of the study area. The study area now produces 62,353 metric tons of rice and 140,461 metric tons of other crops annually.
The EIA report also estimates that the livestock and poultry population per household in the study area comprises three cattle, two buffaloes, four goats, one sheep, five ducks and six chickens.
The power plant will reduce the livestock grazing area, and the wastes from coal such as fly ashes and bottom ashes will contaminate air and water. This will make the livestock vulnerable to diseases and will affect the income level of households and farms simultaneously.
The most deadly impact will be on fisheries. The fishery resources of the project area are enriched with around 120 aquatic fauna, including hilsha, taposhi, bhetki, parsheand, rita, faisha and tulardandi, to name a few from the long list.
The Passur River is a source of larvae for the shrimp and the confluence of rivers provide some unique places for the propagation of fish.
The aquatic species are already facing extinction due to a number of different factors, such as the hindrance of fish migratory routes, changes to the geomorphological processes of  rivers, rapid siltation of  fish habitats, squeezing of spawning and feeding grounds, and the expansion of culture fisheries.
If the coal power plant is installed, it will accelerate the extinction process of the fisheries. The plant will require 9,150 cubic meters of water per hour from the Passur River for its operation. The discharged water will be toxic and have a destructive effect on the fisheries.
The oil and chemical wastes from coal-carrying vessels will contaminate the water. The Passur River will be the first victim of the power plant, followed by the Passur-Chunkuri confluence, Maidara, and Tidal Khal.
Mangrove-supported habitat will also suffer, and shrimp farms and homestead fish ponds will be no exception.
Whatever report the government published to get the environmental clearance is totally a whitewash. The benefits of this project can never outweigh the consequences.
This initiative must be stopped at any cost. This project will not only hamper Bangladesh in food and agriculture, but also make it vulnerable to natural disasters and calamities that we can barely imagine.
This article was published in 'Food Safety News' magazine from Seattle, USA on Oct 22, 2013
Link: Click Here

RMG sector: Getting paid as you perform

The ready-made garment (RMG) sector that began its journey in the 1980s has emerged the biggest part of our manufacturing industry. Now, it employs more than 4.5 million workers, mainly women from low income families. But the main problem that still remains unresolved to a large extent is the wage structure for workers, who are mainly labourers doing blue-collar jobs. We experienced unrest, vandalism and strike in this sector over the workers' minimum wage demand. But is the minimum wage the best solution? If we visit economic theories, we see a rational individual acts in the best interest of his or her own. Adam Smith chose to call it 'self-love'. This passion of a man drives him to gather wealth for ensuring a comfortable today and a better future. The owners of the garments factories and the workers are no exception. However, the self-interest is not a bad thing until it affects others' legitimate rights. So an owner's inclination for making more profit by reducing the expenses is as simple as it is. On the contrary, the workers want better wages to meet their basic needs. Hence, to solve the conflict of interest and the wage problem, we need to address the problem from both the owners' and workers' perspectives.

What if we introduce performance-based pay or any profit-sharing plan? Economist Martin L. Weitzman, a professor of Harvard Kennedy School, came up with a beautiful but simple equation: Y=MX+C, where Y denotes the total earnings of a worker, M is the reward rate, X is the variable and C is the fixed wage. In our country, C is high, though many people may disagree, and there is no reward for performance. That means the MX is missing. Our goal is to ensure betterment of the workers by not harming the owners' interest either. So, we can reduce C and introduce some variables and rates, based on which the workers will be paid for their performance. The benefits for workers should have its lower and upper limits. A standard could be set in this connection based on agreements between workers and owners. This has various advantages. Once the standard is set, the workers will be more motivated to put up the best performance and this will lead to a higher earning (Y) than before (when C was higher and fixed). Weitzman did research on fixed versus profit sharing wages and their effect on unemployment. He has argued that when firms offer profit sharing wages, that means employees receive higher wages when a company is doing well, firms have the lower rates of unemployment and do better during any recession. If the economy experiences any downturn, the owners have nothing to be worried about, because if firms earn no profit, then they do not need to pay on performance, since the source of MX is the profit but the owners must continue to pay the fixed wages which is not difficult now, because C is now lower. If C is a big figure, a slowdown of an economy can destroy the firms, leading to higher unemployment and unstableness in a country. That's how MX could work as a shock absorbent factor for the firms.

It is easy to understand that if MX is higher, then Y will be higher as well. So the workers will be satisfied and they will cooperate with the owners. Unrest, vandalism and strike will never be there. This will result in a stable industry. Nevertheless, accounting experts see something different in Weitzman's theory and call the above logics legitimate but a layman's notion. They argue that a higher MX will reduce the monitoring costs. When C is higher and fixed, the workers tend to shirk. So, firms need supervisers, foremen, surveillance and other similar things, but performance-related pay (PRP) can reduce this cost and improve the workers' efficiency. Economists view it from a wider perspective. They believe if the money is in the pockets of owners, who are already well off, they will spend it for luxury. They will travel overseas, buy apartments, ornaments, latest techno devices and thus money will be drained out to foreign countries. But more money in the workers' hands will have a more positive impact on the economy. They will meet their basic needs by this money. They will buy food stuffs, clothes and many other things. So, the demand for those products will be higher and it will help enhance their production and supply resulting in a higher purchasing power of the lower class people. This will also help create more jobs and have a positive impact on gross domestic product (GDP).

Now the question is: Can Bangladesh can apply this theory at this juncture? The answer is 'yes but gradually'. The trouble with its implementation is we have a large workforce. But workers are often disorganised and unskilled. So, owners and investors will not be willing to accept Weitzman's theory right now. But the government should persuade the investors to set up factories by providing lucrative tax benefits. The profit sharing with employees is regulated by the government under the Companies Profit Act, 1968 (amended in 1989). The existing act is fine but the government can impose such profit sharing plans on big firms through gazette notification time to time on the basis of mutual agreements. To do this, owners must shun the hardcore capitalistic mindset and the government should shun the extreme fondness for the wealthy owners and, most importantly, they should overcome the narrow partisan interest for the sake of building a better society.

This article was published in The Financial Express, May 29, 2014
Link: Click Here

How wise to follow rich nations?

Over the last decade Bangladesh's economy has developed rapidly. Its per capita income in 2012 was estimated at US$ 747.34. According to the International Monetary Fund (IMF), the country was the 44th largest economy in the world in 2012 in terms of the purchasing power parity (PPP) and 57th in the nominal terms. The gross domestic product (GDP) is currently US$ 347 billion in terms of the PPP and US$ 115.6 billion in the nominal terms with an average GDP growth rate of 6 per cent per annum over the past few years. Alike the developed countries, the service sector is the highest contributor (>50 per cent) to the GDP. Though, Bangladesh is a densely-populated country, it has a big labour force of 87.9 million people with the unemployment rate estimated at 5.0 per cent in 2012. If the pace of economic growth remains stable, then Bangladesh will emerge a middle income country very soon. However, 24 per cent people still live under the poverty line while the public debt is 22.8 per cent of the GDP and still we present a deficit budget every year and a staggering amount of money is spent on debt servicing.

The statistics shows the state of development. But truly, the meaning of development may vary depending on the thinking of each of the people. Statistics could be manipulated and the people may think the economy is founded on a good footing while actually it is not. In the book on 'Economic Development', authors Michael P. Todaro and Stephen C. Smith have mentioned three core values of development, namely, sustenance, self-esteem and freedom from servitude. They have claimed that development will be meaningful, firstly when the state can help its population meet the life-sustaining basic human needs such as food, shelter, health etc. Secondly, the general people have to have a sense of worth and self-respect, the belief of not being exploited by others. The nature and level of self-esteem may vary from society to society. Last but not least, the people should enjoy the freedom from servitude which means the independence from misery, oppressive institutions and dogmatic beliefs such as poverty is the unchangeable fate. Nobel laureate economist Amartya Sen has propound an idea of 'capability to function' where he argues that development cannot simply be measured by income or statistics, rather a person's functioning is the main factor that can help us understand the extent and meaning of development.

Unfortunately, these things cannot be easily measured or if somehow it is done, the government is not willing to do that for political reasons. Notwithstanding, the eclectic account of information of Bangladesh's economy is definitely a good sign and many organisations are now considering Bangladesh as a role model for other developing countries. American economic historian Walt W. Rostow's stages of growth model are worth mentioning. According to him, the transition from underdevelopment to development can be described in terms of a series of steps or stages, through which all countries must proceed. Presumably Bangladesh is in the pre-takeoff stage before entering the self-sustainable growth stage and he has argued that all developed countries had passed all the stages and still the developing countries are doing the same.

Now the focal point is what will be Bangladesh's course of action in this transitional period of rapid development. Institutions like the World Bank (WB) and the IMF often impose many conditions on Bangladesh along with many other developing countries before granting loans. Those conditions are set by following the growth path of developed countries. Those are often irrelevant and insignificant, when it comes to our economic environment. At this critical juncture the question arises: Do we really need to follow the path of the developed countries? Or do our transition period and their transition period have any valid resemblance?'

In this context we need to take a look at the earlier stages of currently developed countries, when they embarked on their era of modern economic growth. Contemporary developing countries are often less endowed with natural resources. Most developed countries are located in the northern hemisphere and developing and underdeveloped countries are in Asia and Africa where natural resources are scarce. The people of contemporary developing world have, on an average, a lower real per capita income that their counterparts from developed world had in the 19th century. The most developing countries are now situated in tropical and subtropical regions and most economically successful countries are in the temperate zone. The population size and density are much higher in developing nations compared to the developed countries. In fact, in no time Europe or North America had a population growth rate of 2.0 per cent per annum while the contemporary developing countries had a growth rate of more than 2.5 per cent in the recent decades. International migration, multiculturalism and import of brains from under-developed countries have enriched Europe and America. Basic scientific and technological research and development, efficacy of domestic institutions and international free trade had given the developed countries an added advantage that the contemporary developing countries do not get to that extent.

Against this backdrop, it is not wise to comply with all the conditions of the WB or IMF. This is a very important period for Bangladesh. If it can successfully take off for the next stage of Rostow's model, then it is not so far when Bangladesh's economic development will become meaningful to the country's people. Curbing corruption, keeping political stability, avoiding narrow partisan interest and wise economic decisions with effective management can make Bangladesh a middle income country in this decade, and within 2030 there will be a big change in our economy. Uncertainty exists but we must not forget that we are doing well and every cloud has a silver lining.  

This article was published in The Financial Express, Dec 09, 2013
Link: Click here

Friday, October 25, 2013

The Pursuit of Real Democracy in Bangladesh

Bangladesh is on the verge of 10th national parliamentary election. But an ambiguousness in the constitution of this republic has been developed over the tenure of Awami League (AL) led government on the issues of interim government in election time and the maturity of the assembly. Though, the one and only valid explanator of the constitution is the Supreme Court but many a quarter including constitution specialists therefore lawyers and politicians are explaining it from different angles. The prime opposition party is holding a stubborn position about not going to elections under the current system of voting while the government is also rigid in their stance. This standoff is apparently leading us to an unexpected calamitous situation where everyone desires for peace and a peaceful transition of power.

What is happening in this country now deserves an in-depth look.  How have we come to this point is a question of general citizens, voters and obviously the civil society. Back to January 2009, Awami league came to power with a landslide victory of 230 seats among the 300 seats and with a huge popularity. The opposition, BNP, had virtually no power in the parliament with few public representatives to interfere in the government’s actions of passing laws or changing sections of constitution. Although it was a big blunder, but the opposition chose to leave the house and occupied the streets. Nobody is concluding that the government, in and out of the parliament, did all wrong with the huge power but the list of mistakes or corruptions is not short as well. The AL led government has contributed a lot in the development of the country in different sectors like electricity, gas, agriculture, education, production and so forth that our country has ever seen. The construction of fly-overs in Dhaka city within a single term is highly commendable. The achievements of sea area after the suit with Myanmar, huge amount of free supply of books in primary school level are some of the accomplishments of the government. From a political valuation, the handling of the situation after BDR mutiny, the settlement of Hifazat’s long march and their Dhaka occupying movement, the rigid position against radicalism is highly admirable success of the government. The implementation of justice in Bangabondhu assassination case, the revival of war crime tribunal and arresting of the alleged criminals are some valiant step of the AL government. On the other hand, the flacks against government are often too severe. World Bank- Padma Bridge, Weak diplomatic negotiations with India, quick rental, stock market scandal, Hallmark- Sonali bank scam, Rampal power plant, Teesta-Tipaimukh dam are few to name from a long list of accusations. Now the time of election has come and it is the choice and responsibility of the citizens and voters to value the success and failures of government and opposition, determine the political parties’ competence and most importantly to send a party to power for next five years to run the country.

Parliament House of Bangladesh (A symbol of democracy)

To focus the opposition party, they left the government in a playground with no rivalry. They felt comfortable in the streets and in the talk-shows instead of parliament. They chose to stick to a party of alleged war criminals and remained silent in the times of moral crises. There are lots of examples where they showed violence instead of wisdom. They didn’t stand against the government with the national issues like they stood up for their narrow partisan interest. Even in some cases, they failed to capture the public sentiment while government was in a backward situation. From a bird’s eye view, the opposition wasn’t careful enough to resist the government from their autocratic moves.

Hence, for the currently ongoing political deadlock, both the government and the opposition are equally responsible. The government has changed the constitution legitimately and the election time is very near now. However, it is very understandable that without the participation of BNP the election will not be fair and acceptable. And as a developing country we cannot afford that type of election and reelection again; what the current opposition and the then government, BNP, showed us before in 1996. The politicians do not have a good experience with unelected caretaker government after infamous 1/11. But the formula that the AL government has developed is not a perfect one. And it has become almost impossible for the government to revert the changes made in the constitution. So, whatever the acceptable solution is must come out from a participative dialogue. It is also to remember that, all power including the vote, in a democracy, is held by general public. Hence, powerful neighbors or third parties have nothing to determine the fate of this country. But unfortunately, both the parties are acting very rigid and childish which will bring no good for the future.

A real democracy is where the parliament holds a balance. For instance a 170/130 or similar wining makes a balance of power. What our voters do is not to vote for the candidate rather they vote for the logo or the memories of iconic leaders or the party. This happened in 2001 and again in 2009. That’s the exact reason why democratic political parties become autocratic and a weaker opposition occupies the street and takes the path of violence. Whatever the situation has lately been developed in our country must not be solved by bloodshed or machetes. Wisdom, toleration and an intention to sacrifice are expected from all political parties, smaller or bigger.

In the 43 years of liberation, we experienced assassination, military coup, unelected government, bloodshed, attack and resilience. We want to believe that the time of darkness has been over. In this decade our generations are dreaming of a bright future and holding passions to go forward. In this context, we implore to the political parties not to hold our back but to show a bit of wisdom and sagacity. The path of going forward is not smooth; don’t make it worse anymore, please. 

October 25, 2013

This article is directly uploaded to [www.asifreza.blogspot.com]

Thursday, October 17, 2013

Don’t destroy the Sundarbans

Authorities all over the world are continuously justifying their wrongdoings in the name of the greater good. This time, the Sundarbans has become the victim of that notion.The mangrove forest is about to be sacrificed in the name of the greater good but at a price that we cannot afford. It was not long ago that Prime Minister Sheikh Hasina strongly accused developed countries for their contribution to global warming and urged them to compensate the sufferers, i.e. developing countries like Bangladesh, but now she has signed the death verdict on the Sundarbans.

The human race has been honoured with the highest dignity not just because of its independent thinking but for its ability to take care of wildlife, nature and the environment. But the intentional destruction of the Sundarbans is not only a suicidal move, it is also a violation of natural laws. It will make Bangladesh more vulnerable than we can imagine. The Sundarbans, shared by Bangladesh and India, and the largest mangrove forest in the world, is an enclosure for the coastal areas and gives the country protection from major natural calamities, such as past hurricanes like Sidr and Aila.



It is enriched with huge natural resources and is a safe-house of diverse wildlife. Most importantly, it is a natural holder of the ecological balance and our ecosystem. It provides livelihood to a great number of local inhabitants. In spite of all this, the government is advancing to install a coal-based thermal power plant of 1,320 MW capacity which will occupy almost 768 hectares of land and is barely 9km away from the Sundarbans.

Though, the government is considering this as a safe distance, the partner of this project, India, has passed its own law where they are not allowed to install such plants within the 25km radius of forests in their territory. Ironically, they are doing just that in our homeland and our government is acting like our resources belong to India, not to us. If this plant is installed, a huge amount of coal will be transported through the Possur River. The noise pollution and other waste produced from the plant will damage the biodiversity substantially. The fish in the confluence of the rivers will face extinction. The area will become uninhabitable, and the air will be so polluted that no living creature will be able to breathe there. The water of the rivers will be contaminated. The climate, topography, faunal and floral diversity will be destroyed. Allegedly, the materials which will be used in the plant contain hazardous chemicals such as sulphur, carbon dioxide, cadmium, radium, arsenic, lead, mercury and nickel.

These toxic chemicals could affect the health of the inhabitants, even those living in government-certified safe areas. According to rough estimations, this plant will immediately displace about 5,000 families from their land. A large number of forest-dependent poor people like honey-collectors and fishermen will get unemployed. The Sundarbans is a tourist attraction, a sector which will take a hit once the project starts.

Mangrove forest and it faunal diversity
Many studies have already been done by different think-tanks, researchers and journalists but no one could credibly claim that the benefit of this plant will outweigh the costs. It is true that our demand will increase day by day, but that does not mean that we should destroy all our natural treasures just to satiate our demands. There are many other viable options to produce energy. Solar power, windmills and biogas are options. The Sundarbans are unique and irreplaceable. As a lower riparian country and with low lands, we are vulnerable to coastal floods, cyclones and hurricanes. Without the Sundarbans our people cannot survive. We Bangladeshis are very good at seeing the near future and short-term benefits which cause us to lag behind other nations. It is high time we gained some wisdom. We must act before it is too late. Protesters of the initiative have been labelled “impractical” and “anti-development” by ministers and government advisers.

Other than the Hasina administration, not a single person has supported the idea of generating power at the cost of the destruction of the Sundarbans. This project will bring no benefit to our unborn generations, and the Sundarbans is not just an asset of Bangladesh, it belongs to the world. It is a world heritage site and the home of the world-famous endangered Royal Bengal Tiger. I implore all Bangladeshis as well as the world community to not turn a blind eye on this issue, but to listen to their conscience.

This is a time of moral crisis.

The article has been published in The Dhaka Tribune/ Op-ed/ Oct 12, 2013
** Photographs are copied from Internet.

Thursday, July 25, 2013

Quota system in civil service: An unjust solution

The preliminary test result of 34th BCS examination was recently published and has resulted in controversy, and mass disappointment, amongst the candidates. This year, the quota system was applied during the preliminary test, a change from previous years. The idea of the quota is already under dispute. In the BCS, 55% of seats are allocated for candidates who fall under quota, and 45% are for general students under meritocratic recruitment. Merit is virtually disregarded for quota holders, and this is unfair to the majority of students. There are quotas for freedom fighters’ children, women, indigenous people, etc. And the grades achieved can vary substantially between a passed quota holder and an unsuccessful general candidate.
 
The exam has three phases. The first stage is preliminary exam, consisting of multiple-choice questions that test variety of knowledge. The second is the written exam, which tests the capability of the candidates to express their views. The last one is viva Voce and that tests the adaptive and situational skills of potential candidates. The final stage is a background and security check. The government one of the largest institutions of the country, provides qualified persons through the BPSC (and thus through the BCS examination system) to the justice department, foreign cadre, police, tax and audit, and the different ministries. The government also oversees monopoly some utilities such as electricity, water and gas. Moreover, in every sector government has some business concerns like banks, insurances, telecoms and so forth.
To run this whole apparatus, the most important thing required is merit and excellence of staff. In the age of a market economy, diplomacy and competition, it is very hard to remain competitive and that is the exact reason quality, competence and excellence of the government personnel is needed. But the system of quota runs contrary to the above. Let’s have an in-depth look at the quota systems from both the government and general perspective. It is understandable that the quota system was inducted to mitigate inequalities among the citizens of our country. But this original reason has become outdated. The job of the government includes, but is not limited to, assisting indigenous people, who lag behind others, through the tribal quota of 5%, to pave the way of woman empowerment by reserving 20% for the ladies and to honor the memory of the freedom fighters and to recompense their family for their heroics through a quota of 30%. This system has opportunity costs. The government is losing the best possible workforce, and are instead employing less qualified people in highly challenging positions. That deprived meritorious workforce joins the private sector and are competing against public sector organisations. Consequently public ventures are becoming less profitable, as they lack qualified staff and management. The examples are apparent when one compares private banks and public banks or the telecommunications companies like Teletalk and Grameen Phone. Most of the public concerns are becoming backbenchers in the long term. The multinationals (MNCs) are using local talent and grabbing profits of public companies, and ultimately a large portions of the profits are siphoned away from the country. In another case, less qualified people in governmental jobs cannot compete with their counterparts in India, the US, or Europe in international negotiations where quality, competence and efficiency are regarded as resources, and are given highest priority. So, from a simple calculation we can clearly see that the government is losing much from quota system.
Instead of enforcing quota system, there are several other ways where the government can provide benefits to the quota holders. There are lots of non-cadre jobs which would be suitable for quota holders that would provide steady income and address inequality. Meanwhile the BPSC should reduce the quotas to 20%, and recommend that the government utilise the best human resources in the nation, in the best interests of the nation. If women and minorities are given the opportunity to go to school, college and university, then gender equality and empowerment will come about naturally and the quota will not be needed. BPSC, the government’s recruiting agency, should contemplate publicising the threshold marks in every phase of examination to make the whole process transparent, formulating a protocol where candidates can only apply to several posts that are compatible with their academic background, for example where an accounting major can apply only for audits and accounts, and tax cadres, candidates with a major in political science, international relations or public administration, can apply only for BCS administration, police and foreign affairs. That is only how the government can implement specialisation and can get the best service.
BPSC must shun any kind of political manipulation and influence in this highly important recruitment process. It is high timeto bring the entire system under scrutiny, and being it in line with international best practices so as to reap the highest benefit. Against this backdrop, if the government annuls the quota system then obviously some stakeholders will be disappointed, but it should be remembered that government’s responsibility is not to take a popular decision, but to take the right decision, which will best serve the attainment of the country's collective interests. 
The article has been published in The Dhaka Tribune/ Op-ed/ July 14, 2013
 Link: Click here

Quotas in civil service: A too populist system

In most developing countries, the government is probably the largest employer with set rules and structured procedures for recruitments at various levels. In Bangladesh, the most prestigious public recruitment is that of the class one officers, commonly known as cadre employees. The recruitments are made through Bangladesh Civil Service (BCS) examination, conducted by the Bangladesh public service commission (BPSC). Very lately, the results of the preliminary test of 34th BCS have been published where a serious controversy has arisen among the candidates. It is found that the system of quota has been applied at the preliminary level of the test which was unprecedented until the current examination. The idea of quota has been a matter of discontent among many candidates for long. 

The reason can be well understood from the fact that 55 per cent of the posts are reserved for candidates under quota, while the remaining 45 per cent for candidates competing on the criterion of merit. Merit is virtually disregarded in case of those selected under quota and that is indeed frustrating for the majority of the candidates. The BCS exam has three phases. The first phase is the preliminary exam -- MCQ in nature. The second phase is the written test, and the last and final phase is viva voce. If everything comes out positively for the candidate through out the three phases, then he or she is through subject to police verification.

Since the government apparatus is the highest authority and largest institution of the country, candidates selected through the BCS exam should in all fairness be highly competent in order to be able to dispense important public functions from the very beginning of their career as civil servants. It is invariably so in case of all the posts, irrespective of the cadres. But the system of quota negates this very perception. It is understandable that the rationale of the introduction of quotas in civil service recruitment is to mitigate to a certain extent some prevailing social inequalities as well as empowerment of some sections of the society, such as women, tribal people etc. But the rationale has already lost some of its justifications and has become pointless in course of time. The job of the government includes welfare of all citizens and at the same time it has also to look after the special needs of people who lag behind. It is this consideration that has led to the concept of reserved quotas: tribal quota 5 per cent, woman quota 10 per cent and freedom fighter 30 per cent. Needless to say, experiences over the past decades reflect that this system has some opportunity costs.

The government is losing the best workforce and instead employing some less qualified people in responsible positions. It may sound a bit harsh but given the realities, we feel that there should be a reduction in the existing quotas, say to 20 per cent. Understandably, such a move may not be very well received, but we must not forget that this country is paying heavily on account of populist policies of the successive governments. Besides, in order to make the recruitment process more transparent, the BPSC should contemplate on publishing the results along with the marks obtained in each phase of the BCS examination, and introducing a system whereby candidates can only apply for posts compatible with their academic background.

For example, candidates with accounting major will apply only for audits & accounts and tax cadre, candidates with majors in political science, international relations and public administration can apply for administration, police and foreign affairs. 

That is how the government can implement specialisation and get the best service. BPSC must have to shun any kind of political manipulation and influence in this highly important recruitment process. It is high time to bring the entire system under scrutiny and to update it according to the standard practices followed in other countries.
 

This article has been published in The Financial Express/Views & Opinion/ July 13, 2013

Link : Click here

Friday, May 10, 2013

Rana Plaza tragedy: The issue of taking foreign help in rescue operation

The unfortunate and deadly factory collapse at Savar occurred on April 24 and the death toll is now set to cross 900. Another 500 are considered missing as per a guesstimate of rescuers assigned there. Around 3,500 workers were in the building before it collapsed. Building owner Sohel Rana, a powerful companion of local MP, forced the workers to return to work inside the Rana Plaza in spite of knowing the risks of collapse. In the first response after the incident, the common people of Savar rushed immediately to rescue the people trapped under debris. This was a nine-storey building which foundered suddenly from the level three. But it showed an ominous sign of visible cracks on the day before the collapse but was ignored by the building and factory owners. A bank branch in the level two, however, instantly evacuated its staffs and documents fearing the impending collapse. After the accident, the government swung into action immediately by assigning the Fire Brigade, the Army, the Rapid Action Battalion and the police with available logistics to rescue the trapped workers where common people assisted them with their fullest capacity. The whole Savar tragedy was telecast live by the satellite channels and the entire country was glued to the TV sets in utter shock. 





The collapse of 'Rana Plaza' in Savar is the most terrific building disaster in the country's history, which was not seen before. The rescuers lacked the required tools and equipment which were necessary to save people. Many organisations from Dhaka had collected blood, saline, oxygen and dry foods for the survivors. But the rescue mission was slow due to dearth of equipment and because of the horrible condition of crash and rubble where the accidental fire under the debris further debilitated the situation. On April 28, the UK-based The Telegraph reported that Great Britain along with some other countries offered rescue assistance to the Bangladesh government with teams of experienced rescuers and heavy lifting equipment. But Bangladesh rejected the offer as per the report. However, no official statement is still available from the government side. Later on April 30, the BBC also reported the same by quoting Home Minister MK Alamgir. The Telegraph claimed on the basis of a diplomatic source that it has documents which substantiate the communication with the Bangladesh Foreign and Home Ministries. Even it stated in its report that officials were due to deploy heavy machinery to clear the rubble away… having decided survivors would not last more than 72 hours. But after a public backlash, they delayed the plan, as more people were pulled out alive and yet more cries from survivors could be heard." But the rescue mission, led by the Bangladesh Army asserted that it did not go for massive operations, now going on, to lift the pile of rubbles before confirming the possibility of rescuing one more worker no matter how tough it would be.


There were tens of thousands of people in the crashed spot of Savar including newspaper reporters, social activists, political groups, students, human rights organisations and local people but none questioned the efforts of the rescuers. But all of them were worried over the scarcity of equipment and technologies. It is not confirmed how fruitful it would have been had the expert rescuers from abroad come to the place of collapse. But if the report of the government's rejection was true, then it is certainly unfortunate. This proves the government's diplomatic naivety. This is because, the common people and the relatives of the dead and the survivors do not always expect miracles to happen. What they expected are recovery of bodies not decomposed, easy to recognise them. Expert rescuers know very well the techniques to recover the survivors and when infrastructures collapse whether from an earth tremor or another cause, they know how to pull people out alive. Mark Doyle, an analyst of BBC spoke of the incidents of Haiti and Japan where they accepted foreign assistance at the time of earthquake and tsunami. In fact, hundreds of rescuers converged on Haiti after the 2010 earthquake and also Japan, a far richer country, accepted substantial help after its earthquake and tsunami in 2011. If foreign rescuers were to be deployed then it would have been more focused in international media and would be a wakeup call for the non-compliant factory owners. Bangladesh is a garment exporting country with the lowest wage rate roughly around 40 USD per month at a time when the factory owners are substantially wealthy.


It is actually very tough to take decision when to stop looking for a few remaining trapped people and concentrate resources on the survivors. The media always create a pressure on the government and so do the relatives of the affected. According to a BBC report, the average time for the switch is between five and seven days, but individuals have been known to survive as long as 13 days of being trapped if they have access to water. Usually, the co-coordinating rescue team, the UN and the host country take the decision of stopping the rescue operation. 

The huge casualties under 'Rana Plaza' are a real tragedy, not merely an accident. Lax regulation, ineffective labour union and utter negligence of the blue-collar workers contributed to this mishap. The apparels industry, worth 19 billion USD, stands on the contribution of almost four million workers, most of whom are women. But it is observed that no authority including the government and the Bangladesh Garments Manufacturers and Exporters Association has a good level of attention for the safety and well-being of these workers. And lastly, it is proved that the government and also the private sector lack adequate and suitable equipment to face such a tragic situation. To our utter shock, every year the government fails to raise targeted income from tax due to rampant corruption of its officials but there is no money enough to arrange equipment for rescue operations. It is unfortunate.

[The Financial Express/Views & Previews/May 10, 2013]

Link: Click Here


Wednesday, May 8, 2013

Padma bridge project puts Bangladesh on trial

The government of Bangladesh (GoB) and the World Bank (WB) have developed a strained relationship over the issue of the Padma bridge project (PBP). Though the WB was earlier expected to be the single largest financier of the project with US$1.2 billion soft-term credit, the funding-support was finally terminated with a lot of drama, amid the withdrawal of the request by the GoB for reconsideration of the WB's cancellation of its soft-term credit on grounds of alleged corruption. 

But several questions still linger in many circles about this issue. Are Bangladesh and other developing countries helpless without the WB assistance or support of other international organisations? Did the cancellation of the WB fund on corruption charges, at Bangladesh's request, humiliate the nation? How the government handled its dealings with the WB following the snags over the PBP funding deserves a thorough analysis. It is necessary to understand the scope for development of infrastructures without assistance from such large multilateral organisations as the WB.
 
The WB is one of four institutions created at the Bretton Woods Conference in 1944, headquartered in Washington, D.C. The then powerful countries including the United Kingdom and the United States of America, especially the latter, dominate its policy-making from the very beginning. The WB comprises two institutions named the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The IBRD aims at providing development support in the form of loans on commercial terms, to the middle-income and creditworthy lower income countries, while the IDA works exclusively for the world's poorest countries. The funding of the PBP was linked with the IDA which provides soft-term concessional loans, instead of commercial 'loans', only with a small 0.75 per cent service charge and apparently no interest. The government of Bangladesh (GoB) would not have any obligation to start payment within the first 10 years after disbursement but have to pay off the loan in 40 years. 
In retrospect, the conditions were highly favourable in consideration of the financing terms. The bridge was supposed to reduce distance to Dhaka by about 100km connecting 19 districts, facilitating easy movement of 30 million people and boosting the GDP by 1.2 per cent per year (according to the finding by Asian Development Bank). But allegation of 'corruption conspiracy' caused the cancellation of WB funding support to the PPP.

The PBP is very significant from infrastructural viewpoint as the bridge has the potential to accelerate growth and transform lives in southwest Bangladesh and across the nation. It was a highly weighted electoral pledge of the Awami League (AL)-led government. So, it is almost obvious that the AL has to take any action for implementation of the PBP at any cost to approach voters in the next election in 2014. But it procrastinated with this issue and killed valuable time. It had called upon the WB again to reinstate its financing but did not meet all the conditions put by the WB. Rather, the WB was castigated through many public statements. 



The local and international media were very critical on the issue of the 'corruption conspiracy' and many international newspapers had described Bangladesh as a corrupt nation. As a result, we have lost the best option of financing, precious time and have our image tarnished as a nation. The main alleged offender was a Minister, who was actually kept out of every major investigation initiated by the government through the Anti-Corruption Commission (ACC). However, the WB claimed that it had presented evidence of corruption in the PBP to the government of Bangladesh in September 2011 and April 2012 but it is under obligation to each member government including that of Bangladesh to maintain confidentiality of referral reports. The GoB could disclose these reports and related correspondences but it did not. Hence, many believe that the GoB has missed the best option for the PBP while trying to protect a particular person. Since the government is the most powerful institution of a country, it should have the best people at the helm of its decision-making, diplomacy and negotiation but the incumbents failed to handle the post-conflict situation with the WB. Now the WB is out of our reach and we need the best option to see the PBP implemented. Bangladesh can build the bridge from its own fund but it may lead to an uncomfortable situation in the economy. About three-fourths of the cost of the project will have to be paid in foreign currency and it is not sustainable by self-financing as some other areas of the economy are not doing well such as stock market and banks' capacity remains limited to lend and so forth. The next option is public-private partnership (PPP) which is perhaps the only option available. In making contracts with the private firms, the GoB should have a serious look into the options for long-term benefits and a win-win situation. 

The standoff with the WB has apparently delivered a message to the Bangladeshis that without its assistance, this kind of infrastructural development is impossible. In most cases, the developing countries require funding from well-known international agencies but there are also other examples as well. Malaysia once rejected an International Monetary Fund (IMF) offer of funding owing to its unfavourable terms. Recently, China also refused to accept the WB assistance in constructing a bridge over the Hoang Ho river. 

Against this backdrop, the task of implementing the PBP is really challenging for the GoB and the economy. If the country succeeds in developing such an infrastructure on its own, it will take it to a great height and enable local engineers and construction experts to gather skills, logistics and expertise, which may not be possible with the WB funding. However, all the positive stances do not necessarily mean that some corrupt people will enjoy immunity and every time the GoB will save the influential persons by sacrificing the nation's best interests. The Transparency International, Bangladesh (TIB) executive director said quite rightly: "We have bestowed the World Bank with a show-piece. The WB will use the Padma bridge graft as a show-piece for any corruption in the world."

The ongoing decade is a window of opportunity for Bangladesh to get into the list of middle income countries. To keep the pace of its GDP (gross domestic product) growth rate at over 6.0 per cent, the PBP is a much-needed infrastructure and it should be built at any cost. 

We have given the mandate to the government to govern the country and serve its best interests but the government is expected not to sacrifice the nation's dignity at any cost. To become short-term gainer often exposes the risks of being a long-term loser. Hence, the government should make the proper cost-benefit analysis and simultaneously uphold our dignity among the nations by overcoming the narrow partisan interest of saving the alleged offenders. Let history be our guide, the Bangladeshis have successfully proved their resilience always.

Still we want to believe that every cloud has a silver lining.

The Financial Express [Views & Opinion, May 08/2013]

Link: Click Here