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  #26  
Old June 9, 2007, 07:31 AM
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Quote:
Originally Posted by ammark
Thanks again for the excellent stats and comparisons Sydney Bhai. Scary that we're thinking of an increase OF 176 million to add to the current 150 million odd.
Oh...i think u got it wrong bro.
We are not adding another 176 Million on top of our 150 Mil.

Its the increase of population in 100 years, that is, from 1950-2050.

Also look at those figures very closely. We are significantly reducing the growth of the population in every period brake.

Also remember, as the literacy rate increasing, esp predominantly among woman, who currently comprise of 52% of our labour force, we will see a further reduction in the population growth.

As more and more woman would be career focused and will find it harder to balance career and personal life ( as case in the developed world) comprised with an ever increasing cost of living, child bearing rate will also decrease and the age of when they conceive the first child will also increase.

If my own prediction is current, in 10 years time, our population growth would come to a stall at around 1 to 1.1% for sure.

Those figures are based on our socio-demographic situation based on around 1995-2000. Things are bound to change for good in the coming days. After all, we have no other option but to go up.
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  #27  
Old June 9, 2007, 04:07 PM
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I stand corrected, thanks. Didnt look closely enough at the graphics.. given pretty simply there after all
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  #28  
Old June 9, 2007, 07:56 PM
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Analyses of Budget FY07-08 from CPD as printed in Daily Star

June 9 2007: http://www.thedailystar.net/2007/06/...609050354p.htm

June 10 2007: http://www.thedailystar.net/2007/06/10/d70610050359p.htm

June 11 2007: http://www.thedailystar.net/2007/06/...611050354p.htm

June 12 2007: http://www.thedailystar.net/2007/06/...612050360p.htm

**************************************************
**************************************************

Pertaining to what I raised about the Central Bank ....from todays daily star, Bangladesh Bank governor wants autonomy.

Quote:
Originally Posted by The Daily Star, 11 June 2007
BB chief seeks full autonomy of central bank
Unb, Dhaka

Bangladesh Bank Governor Dr Salehuddin Ahmed yesterday stressed the need for full-scale autonomy of his organisation for smooth functioning of the banking sector.

He made the appeal in presence of Foreign Affairs Adviser to the caretaker government Dr Iftekhar Ahmed Chowdhury at a policy dialogue on 'Safe Migration and Remittances' at the BRAC Center Inn.

"Bangladesh Bank does not enjoy full autonomy like the other central banks in the world," he said.

Talking to reporters after the programme, he said for taking many decisions they have to send the proposals to different ministries and that creates procrastination.

Replying to a query whether the full autonomy creates any kind of lack of accountability, he said, "Obviously, full autonomy does not mean lack of accountability--there must be a process to make us accountable."
http://www.thedailystar.net/2007/06/11/d70611050556.htm

Last edited by ammark; June 11, 2007 at 01:52 PM.. Reason: didnt want to hog up the thread with another post
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  #29  
Old June 11, 2007, 12:14 AM
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Default [warning: jogakhichuri of thoughts] Inflation and Growth: India & Bangladesh. etc

Inflation and Growth: India & Bangladesh

Quote:
Originally Posted by The Economist, 9 July 2007
India's economy
Goldilocks tests the vindaloo

Jun 7th 2007
From The Economist print edition

India's monetary policy is still too loose

AMERICA was the original “Goldilocks economy” (neither too hot nor too cold), but the fair maiden has now moved to India. The bears there prefer curry to porridge, but once again Goldilocks is reported to judge the economy “just right”, with strong growth and falling inflation. Indeed, concerns earlier this year about overheating are fading. Wholesale-price inflation has dropped from 6.7% to 5.1%, even as India's GDP jumped by 9.4% in the fiscal year ending in March—its second-fastest growth on record. Palaniappan Chidambaram, the elated finance minister, says it is time to shed any scepticism about the sustainability of India's strong growth. The Economist remains unconvinced.

India has much to cheer about. The economic reforms of the 1990s and stronger investment have lifted its sustainable rate of growth. But demand has also been inflated by an unduly lax monetary policy. The government thinks its target of 9% average annual growth in the next five years can be achieved without pushing inflation up. But India displays more symptoms of overheating than China does: inflation is much higher, bank lending is growing almost twice as fast, and Indian share prices have risen by twice as much in dollar terms as China's since the end of 2002. The government, initially slow to react to higher prices, has cracked down this year with a series of administrative and fiscal measures, notably banning wheat exports and lowering fuel taxes; and the Reserve Bank of India (RBI) has tightened monetary policy.

Many local economists think there has now been enough tightening. Yet the idea that Indian inflation is tamed seems to be based on five common myths. The first is that the run-up in inflation could largely be attributed to higher food prices caused by “supply shocks” in the agriculture industry; so monetary policy does not need to be tightened. In fact, manufactured goods have accounted for much more of the rise in inflation over the past year. The main reason for higher prices is that aggregate demand is growing faster than supply.

A second misconception is that the government's various schemes this year, like the wheat-export ban, have done a better job in reducing inflation than monetary policy would do. But such measures merely suppress the symptoms; they do not tackle the underlying problem. Inflation can be genuinely reduced only by a period of slower growth. And although the various schemes have helped to reduce wholesaleprice inflation, the measure that the government likes to focus on, consumer-price inflation, the choice of all other central banks, is still running at almost 8% (taking a crude average of the rates for industrial, non-manual and agricultural workers).

A third myth is that the increase in fixed capital spending from 23% of GDP in 2001 to 29.5% last year will immediately lift the economy's speed limit. In the long term investment will indeed add to productive capacity, but in the short term higher capital spending boosts demand and adds to overheating. The fourth fairy tale is based on the idea that the interest-rate rises over the past year must eventually have more of an effect—and thus slow the economy in the coming months. Interest-rate hikes certainly take time to work. The snag is that in India rates have risen by less than the increase in consumer-price inflation, and monetary conditions are still too loose. India has by far the lowest real interest rates among the world's big economies. The RBI, constrained by politicians, has been too timid in cooling domestic demand. Its attempts, until recently, to hold down the rupee through heavy foreign-exchange intervention forced it to run an overly lax monetary policy. The good news is that the RBI is now allowing the rupee to rise (see article), which should make it easier to fight inflation—if the government allows it to do that.

Lastly some critics of the central bank say that proper monetary tightening would kill the expansion. In fact, expansion is far more likely to end prematurely if inflation gets out of control and imbalances widen, raising the risk of a hard landing. Controlling inflation is the best way to sustain growth.

The bear necessities

In the longer run India's ability to grow faster depends on it unblocking its infamous infrastructure bottlenecks, notably its lousy roads, ports and power. The increase in electricity capacity over the past five years was only 57% of its targeted level, so power cuts have worsened. Skills shortages will be eased only by improving education and reforming India's rigid labour laws. This will all take time. Meanwhile, India will have to accept slower growth to keep inflation in check.
Since I dont know much about how the Indian economy has functioned inside, reading this article I got the feeling that Bangladesh economy's recent investment and growth process has followed a mirrored trend.

A look at the Forget Cricket front page shows quite a bit about Investments in the billions of dollars pouring into BD, a sheer optimism that BD will have 7%+ GDP Growth Rate, that Investment driven growth is good, More incomes for the masses, thus more Consumption will cause more Growth.

All well and good, except that inflation is already high globally, and internally due to higher costs as Zobair bhai pointed out..Add to that Investment causing higher prices in the Goods market in the short term as the article above mentions ....its quite a challenge.

Last edited by ammark; June 11, 2007 at 01:39 AM.. Reason: major content additions
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  #30  
Old June 11, 2007, 12:38 AM
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Good dig Ammark.

Also one point to be noted in our country:
Often inflation is artificially caused the govt and the political parties in order to sway publin to their advantage.
A price hike during Ramadan, holidays and/or during election years are common practise in BD where few handful number of corrup individual is keeping the whole country and the econony hostage.

The biggest problem still lies in corruption.
If our current or future govt can successfully manage to reduce that corruption rate and be able to normalise the economy sans those unwanted influence, i believe it would be much easier to focus on real issues and possibly acheive a better economic growth.
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  #31  
Old June 11, 2007, 01:11 AM
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Now, Sydney Bhai, maybe we can include the following in this overall context:

Quote:
Originally Posted by Sydney
Quote:
Originally Posted by ammark
Not optimistic about "The government will have no control over the prices of the power sold by the private power plants" deal. There has to be some Autonomous Regulatory Authority to keep rates harmonised. In the west, most private powerplants distributing at the consumer level have a monopoly in the area that they supply. If this is the norm there's room for overcharging consumers.

I'd be interested to read more on what sort of plan the govt follows in letting private companies deal with the power system. I know its all good measure seeing the acute crisis forecast, but it better not be like the privatisation of water in south america and phillipines.

On a side note: Good to see the prof pointing out that gas prices need to be increased immediately! [see post: http://www.banglacricket.com/alochon...18440&p=479057 ]
I have no problem with private sector producing what-ever, but when it comes to a such a big every day utility commodity like gas, there has to be a provision for govt control or atleast a degree of regulation.

The backbone of the economy is the emerging middle class who needs to be protected from being the hapless victim of any such actions. A drastic price hike will have no effect on the upper class, as they already have more than enough disposable income. Similarly, lower class will be spared too, as they are yet to have any income to mention about, let alone disposable.

Govt is already having a massive fight with the biggest evil when it comes to economic growth, Inflation. Rise in gas price would be another cause for a spiral effect and it would only add the woes.

Saying so, private sector is always welcome to give a helping hand in the ever worsening energy sector in our country. We do need them badly.( http://www.banglacricket.com/alochon...22049&p=479191 )
In light of all the talk earlier on Inflation, I may have to eat my words on higher gas prices at this moment. I have maintained that a free floating gas pricing system in line with international or regional market pricing should be introduced so that the gas can be supplied efficiently to the consumers. I realise the drawback that :
  1. Bangladesh's Industries AND Industrial growth DEPENDS entirely on the cheap gas supply for power generation.
  2. The Transport sector, in order to move away from the very expensive petroleum reliance is trying to move away to the cheaper CNG systems
  3. Households rely on a cheap gas supply for home use to a point where we take it for granted and dont really complain about, when compared to say water and power supply
  4. Bangladesh's proven gas reserves apparently only offers a scope of 50 years at current demand levels. Export of some of this gas depletes the share of gas Bangladesh can consume domestically.
Gas supply is inevitably a VERY political issue. Seeing the above points, and added to the fact that inflation's shroud is already there, maybe Gas price should NOT be increased. However here are counter points I could think up:
  1. A slightly lower floating gas price corresponding to international market rates (Doha gas exchange, Singapore, etc) would eliminate the inequitous demands from large scale investors like Tata
  2. The tax and govt revenue from sharing the price with the gas mining companies would be MUCH MUCH higher... possibly causing a Saudi petrodollar style floating national accounts. This would be especially true given our neighbouring countries thirst for gas, and that Gas is increasingly seen as a substitute to Oil... Any rise in Oil Prices ideally creates greater demand for gas, pulling gas prices up. [This would have an adverse impact on the points given above, but ensures that BD gets money and nominal growth from Gas exports]
  3. Wastage: With more market oriented pricing, Domestic consumers would REALLY feel the pinch from wasting (currently subsidised) gas. I guess Titas would also get motivated enough to plug all the holes in the ground having gas burning out of around the country too.
{I've lost my train of thought reading my posts....} Given this scenario, maybe we can get a discussion going on Bangladesh's long run fiscal, monetary, macroeconomic management, trade and energy policies?
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  #32  
Old June 11, 2007, 02:33 AM
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Quote:
Originally Posted by ammark
Now, Sydney Bhai, maybe we can include the following in this overall context:

In light of all the talk earlier on Inflation, I may have to eat my words on higher gas prices at this moment. I have maintained that a free floating gas pricing system in line with international or regional market pricing should be introduced so that the gas can be supplied efficiently to the consumers. I realise the drawback that :
  1. Bangladesh's Industries AND Industrial growth DEPENDS entirely on the cheap gas supply for power generation.
  2. The Transport sector, in order to move away from the very expensive petroleum reliance is trying to move away to the cheaper CNG systems
  3. Households rely on a cheap gas supply for home use to a point where we take it for granted and dont really complain about, when compared to say water and power supply
  4. Bangladesh's proven gas reserves apparently only offers a scope of 50 years at current demand levels. Export of some of this gas depletes the share of gas Bangladesh can consume domestically.
Ammark, thanks again for your contribution.You do certainly raise some valid points here.
But it raises a question or two for me as well, which is good, given we are trying to discuss things here.

To your point by point:

1. I would like to be informed more on this topic, not being aware that we are completely relying on gas supply for power generation. I was under the influence that the problem with our electricity is because the govt's lack of ability to produce enough electricity and energy source to supply both industrial and domestic use.
Arent we still more reliant on hydro generated electricity such as from Kaptai lake?
May be im in total dark on that issue.

2. Relying on cheaper CNG is only possible in private use in my opinion, like running private cars and so on. The transport sector, mainly the commercial usage, would still have to be rely on petroleum use as the volume of such huge supply of gas would only worsen the situation. Gas is only a substitute, but never good enough to in the scale of running the backbone of an economy.
Sadly, there is still, no viable substitute for OIL.
It still runs the show.

3. And hence, there lies the biggest problem of all. WASTAGE. Our domestic supply of gas in a price next to nothing giving our mostly "unconcerned" users a free ride to plunder our biggest resource yet. A lot of focus has been shifted in the recent past about the proper usage of domestic gas and hopefully it continues so. You also mentioned about the wastage in your point below.

4. As mentioned on the above point, with a better and efficient usage of domestic gas, we can increase that reserve year mark to alteast good 10 years. Domestic users are more worried of not using an extra matchstick rather than putting the gas off after usage. We still dry our clothes on top of gas heaters.

And on the issue of Gas export, i am completely against it. We have a massive population of our own to cater to. With a better forecast of the economic growth and increased demand of energy supply, we simply cant afford to export any single amount of gas, to say..whoever the country is.

I would rather empahis on the efficent usage of gas rather than hiking a price rise.
Price rise would do no good for anyone and would only cause further havoc. Efficient use would not only prolong the supply line but also help us distribute in all needed sector, both domestic and commercial use.

Quote:
Originally Posted by ammark
Gas supply is inevitably a VERY political issue. Seeing the above points, and added to the fact that inflation's shroud is already there, maybe Gas price should NOT be increased. However here are counter points I could think up:
  1. A slightly lower floating gas price corresponding to international market rates (Doha gas exchange, Singapore, etc) would eliminate the inequitous demands from large scale investors like Tata
  2. The tax and govt revenue from sharing the price with the gas mining companies would be MUCH MUCH higher... possibly causing a Saudi petrodollar style floating national accounts. This would be especially true given our neighbouring countries thirst for gas, and that Gas is increasingly seen as a substitute to Oil... Any rise in Oil Prices ideally creates greater demand for gas, pulling gas prices up. [This would have an adverse impact on the points given above, but ensures that BD gets money and nominal growth from Gas exports]
  3. Wastage: With more market oriented pricing, Domestic consumers would REALLY feel the pinch from wasting (currently subsidised) gas. I guess Titas would also get motivated enough to plug all the holes in the ground having gas burning out of around the country too.
{I've lost my train of thought reading my posts....} Given this scenario, maybe we can get a discussion going on Bangladesh's long run fiscal, monetary, macroeconomic management, trade and energy policies?
I think i losing my trains as well..
Shall carry on later on with the discussion.
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  #33  
Old June 11, 2007, 02:50 AM
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Quote:
Originally Posted by Sydney
[/list]To your point by point:

1. I would like to be informed more on this topic, not being aware that we are completely relying on gas supply for power generation. I was under the influence that the problem with our electricity is because the govt's lack of ability to produce enough electricity and energy source to supply both industrial and domestic use.
Arent we still more reliant on hydro generated electricity such as from Kaptai lake?
May be im in total dark on that issue.
I made this assumption because from my observations most industrial investment in the past 5 years have been focused around the highways in Ctg, Comilla, Gazipur, Mymensingh, Tangail... since those major roads are where the gas transmission lines are. Especially in Gazipur, the factories all rely on gas supply as it feeds the Gas power plants/ generators that provide electricity in the factories.

Given the cheap rate of gas, and the relatively steady supply (although gas pressure drops every summer) it is much more economical to invest in your own gas turbines and produce electricity. Caterpillar in Bangladesh currently gets most of their orders and revenue selling Gas engines and power plants to factories, and then making a handsome amount in providing power plant operations, diagnostics, troubleshooting repairs and maintenance support.

Also, the price of industrial land in Gazipur and Tangail where gas supply (pipeline) is available is much higher than land far from mains gas lines. As a result some industrialists establish factories and then pour in their own money to set up a private line up to Titas Gas distribution network.

And no, all power plants except Kaptai are gas-turbine power plants. As it is Kaptai works at half capacity. I dont think the coal-fired plant in North Bengal is operational yet.

Last edited by ammark; June 11, 2007 at 03:42 AM..
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  #34  
Old June 13, 2007, 04:42 PM
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Another commentary on the Inflation and Bangladesh Bank's position. Quite a counterpoint from the previous article that said BB was following a contractionary policy.

Quote:
Originally Posted by The Daily Star, 14 June 2007
Point Counterpoint
Where is Bangladesh Bank in the inflation debate?
Faisal Salahuddin



Why is inflation at a 9-year high and increasing? Policymakers and citizens need to get the answer right as effective policy responses can come only after appropriate diagnosis.

This article argues that higher money supply has contributed to rising inflation and that a sustained decline in inflation would therefore need monetary policy action by the Bangladesh Bank.

Inflation debate
Debates on inflation in Bangladesh have mostly been populist. Our policymakers and analysts have identified two sets of villains. The first set includes structural factors: (i) hoarders and syndicates; (ii) middle-men in the supply chain; and (iii) poor business confidence.

The second set includes supply shocks -- both international (rising global food and oil prices) and domestic (higher transportation costs and energy prices). Temptation is strong to explain inflation with only supply shocks -- implying that as the supply bottlenecks improve, inflation will go away.

Not surprisingly, policy measures so far have also been either populist: "four whole-sale markets in the four corners of the city" and "dal-bhat program for the poor" or too long-term to be immediately meaningful: "research to improve agricultural productivity" (budget speech, 2007-08). These measures -- while useful to limit the impact on the poor households -- will not succeed in containing inflation and may eventually risk bringing down the popularity of any government instead of inflation.

Inflation ultimately is a monetary phenomenon -- when higher level of money chases few goods. Any meaningful debate cannot exclude the role of money in inflation.

Surprisingly, missing from our national inflation debate has been the role of monetary policy and how the Bangladesh Bank (BB) should/could be made responsible and held accountable for controlling inflation.

Unfortunately, even the BB has chimed in with the populist debate and frequently pointed more emphatically to the structural and supply factors -- almost never to its own monetary policy.

Show me the money
Popular argument is that recent inflation has primarily been driven by structural villains --implying money supply has little to do with it. Of course, some of the structural and supply-side factors may have raised prices. But is it the real or major part of the story? Let's look at the big picture.

Inflation steadily went up from 2.8 percent in 2002, to 4.4 percent in 2003, to 5.8 percent in 2004, and to 6.5 percent in 2005. It exceeded 7 percent in 2006. Clearly prices -- of both food and non-food -- have been rising for a while.

Recent temporary factors alone, either structural or supply shocks, cannot explain this rising trend. Definitely, forces other than structural or temporary supply shocks are at play. What happened to money supply -- the ultimate inflation generator?

Money supply for some years now has been rising at a rapid rate (over 50 percent in total during last 3 years) due to both external (higher exports and increasing remittance) and domestic (government borrowing from the central banks and strong private sector credit growth) factors. Real interest rates (bank rate or 28-day T-bill rate minus inflation) have recently turned negative, suggesting loose monetary policy.

Compared to nominal output, money supply has clearly grown faster. In other words, the amount of money chasing a unit of output has been on the rise year after year. As theory suggests, so have the prices. And hence inflation.

It is puzzling that not many commentators are talking about monetary policy or money supply yet.

Some may retort that money supply can grow fast without creating inflation due to financial deepening -- people's higher willingness to hold more money. This argument lazily bypasses the responsibility of monetary policy in controlling inflation and the costs of not doing so.

In fact, contrary to this popular belief, money supply (M2) growth and inflation in Bangladesh have been closely related in recent years (see graph): the higher the money supply, the higher the inflation.

Ignoring monetary causes of inflation can be very costly. Many Latin American countries with populist policies learned it the hard way: once high inflation expectation gets entrenched, controlling it becomes exponentially difficult. People then ask higher salaries which in turn raise prices again -- creating a vicious cycle.

Zimbabwe -- with inflation at over 1,000 percent in 2006 -- is now feeling the pain of earlier monetary policy inaction and populist polices. The US in the 1970s tried wage-price controls to reduce inflation and predictably failed. Inflation came down only when the Federal Reserve Bank under Paul Volcker in the 1980s tightened monetary policy.

Timely AND appropriate response is of essence -- un/mistreated cold may lead to pneumonia.

Asleep at the wheel?
Unfortunately, the BB, despite its past achievements like banking sector reform, has not provided the policy leadership on inflation expected from modern and independent central banks.

The BB should take the central stage in this debate by providing proper analysis and actions needed for containing inflation. People should know that inflation ultimately is a monetary phenomenon and that it takes some time (12-18 months depending on monetary transmission) and may involve hard choices (higher interest rate/lower government deficit and borrowing) to reduce inflation. Forward-looking monetary policy, like a large oil tanker which takes time to turn, needs to target inflation 12-18 months ahead, based on forward-looking indicators, to deliver it.

Like a financial shepherd, the BB should guide the country to anchor inflation expectation by publicly announcing its inflation target and needed monetary policy instruments.

Fortunately, the BB does not need to start from scratch; it can learn from others' experience. After a decade of over 10 percent inflation, New Zealand successfully reduced inflation by making its target (now under 2 percent) explicit in 1988 and acting accordingly. New Zealand then, somewhat similar to Bangladesh today, lacked sophisticated financial system, a good inflation forecasting ability, or even a robust
measure of inflation.

In our own neighbourhood, India and Pakistan are also moving in that direction. The Reserve Bank of India in May 2007 just reduced it medium-term inflation limit to 4.0-4.5 percent to anchor inflation expectation. The State Bank of Pakistan (SBP) is increasingly embracing the role of monetary policy to reach its targeted inflation. Let's not fall behind.

Wanted
The current BB mandate (1972 and 2003 BB Order) is too broad -- covering price, exchange rate, economic growth, and high employment. If the BB tries to achieve so many objectives and promises to deliver everythinghigh [sic] growth, low inflation, strong but competitive currency by targeting all of them -- it will surely end up delivering none.

The BB needs to: (i) prioritise its mandate of price stability; (ii) ask for independence with regard to management of monetary policy; and (iii) build its credibility. To be effective, it needs to act independently from the government (or politicians running the government) so that interest rate and exchange rate decisions are depoliticised. It should ask for operational independence for inflation targeting and start acting as the primary champion to target inflation.

It is high time that the BB properly diagnose the causes of our national fever (inflation) and be ready to firmly apply its medicine (monetary policy). The sooner it acts, the less bitter its medicine would taste. Wishing like an ostrich that inflation would simply vanish as supply shocks dissipate or that supply response through structural measures will bring it down may only worsen inflation expectation down the road.

It's time for the Bangladesh Bank to take charge and redefine the inflation debate. We are waiting.

Faisal Salahuddin is an actuary and economist.
http://www.thedailystar.net/2007/06/...6141501124.htm

Last edited by ammark; June 13, 2007 at 04:55 PM..
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  #35  
Old June 14, 2007, 01:32 AM
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Thanks to sydney and ammark. Could any of you shed some light on foreign remittance to Bangladesh and its recent trends? Is this growing? If it is growing: then by how much? How much effect it has on our economy? Which are the countries we get most of our foreign remittance from? Thanks in advance.
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Old June 14, 2007, 06:10 AM
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good thread sydney.

I believe foreign remittance is one of the largest contributors in BD economy. This may be as little as English premiership football generates alone. BD is lacking vision to generate foreign remittance/transmittal. I have visited countries where there is no natural resources and manpower other than rocks and sea beaches but the economy is still very strong due to utilisation of their only available resources wisely.
One would wonder when we would enter in global (at least continental) tourism industry. Now we have the opportunity to promote our tourism market worldwide through cricket where millions of viewers learn and pay attention to cricket venues and subsequently can make a popular destination for visit. I want to see BD is having cricket venues in cox’sbazar, rangamati and sundarban(nearest possible) in the near future. This has potential to make those places a popular destination for Asian holidaymakers if not global. But this needs a coordinated work from BCB and tourism authority.
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Old June 15, 2007, 04:47 AM
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Quote:
Originally Posted by GuruTM
Thanks to sydney and ammark. Could any of you shed some light on foreign remittance to Bangladesh and its recent trends? Is this growing? If it is growing: then by how much? How much effect it has on our economy? Which are the countries we get most of our foreign remittance from? Thanks in advance.
I got this from ADB's Quarterly Economic Update, March 2007:

Quote:
26. During July–February FY2007, the current account of the balance of payments showed a surplus of $484 million, up from the surplus of $423 million in the corresponding period of FY2006. Robust growth in workers’ remittances (27.6%) contributed to the surplus, offsetting the higher trade deficit, which increased to $2,098 million from $1,773 million during the same period of FY2006 (Figure 19). The current account surplus along with the large surplus in the financial account ($331 million) led to a surplus of $577 million in the overall balance during July–February of FY2007 compared with a deficit of $59 million in July–February of FY2006.
http://www.adb.org/Documents/Economi...March-2007.pdf
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Old June 15, 2007, 05:00 AM
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Thanks Ammark.
I was looking at the same report and was about to put, probably, the same thing u just did.
Looks like we both using same words on google.

U know what they say...
Great minds think alike.
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  #39  
Old June 16, 2007, 01:48 AM
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The Asian Development Bank (Bangladesh Resident Mission) and the Government of Japan (Japanese Embassy, JBIC and JICA) jointly undertook the study "Economic Growth and Poverty Reduction in Bangladesh" in 2003. The main objective of the study was to assess the growth potentials of the Bangladesh economy keeping in view the evolving challenges and constraints and the country’s growth experience over the past decades.

Following is the précis of some of the points which i found quite significant given the role the current CTG has played in improving the situation of the Chittagong Port.
Here below was the picture of working environment of CTG Port back in 2000-2002.

For realizing the benefits of transport investment, it is important to maintain adequate and efficient links between the producers and the final users or consumers that are provided by the entire system of the transport network. If any of the components of the network remains weak, the whole network performs inadequately resulting in a poor value for the entire system. For example, within the transport sector of Bangladesh, the ports sub-sector is important for the success of the export-led growth strategy. The operational inefficiency of the sub-sector can, however, significantly reduce the contribution of the entire transport sector. Available evidence indicates that the operational efficiency of the Chittagong Port—which handles over 80% of the total sea-borne trade of the country—is low. The available evidence shows that the container productivity per gang-hour of 9.73 at Chittagong Port is less than one-third of the level at the world's best ports. Also the waiting time for the ships for berths increased from 0.74 days in 1996 to 2.25 days in 2000.The turnaround time for feeder vessels in Chittagong is 6–10 days, compared with 2 days in Bangkok and 1 day in Singapore (World Bank 2003).

Following is the link to the whole report:

Economic Growth and Poverty reduction
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Last edited by Rabz; June 16, 2007 at 03:27 AM.. Reason: formatting
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  #40  
Old June 17, 2007, 08:13 PM
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Thanks to Ammark for his great contribution in this thread.
Please carry on mate.
I'll be on holidays starting today for a week.
Going to Gold Coast with few mates, will be back on the 24th.

So, plz feel free to carry on with the discussion.
I'll pick up from there.
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  #41  
Old June 21, 2007, 11:48 PM
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Now, that we're getting a lot of interest for investments, why is it still so difficult to make things work and keep costs down for these investors? The Government really has to rid itself of all the red tapism.

Quote:
Originally Posted by The Daily Star, 22 June 2007
Investment cost in Bangladesh reduces, but hidden expenses rise
Jetro survey finds
Star Business Report

Although cost of investment in Bangladesh is getting cheaper because of its competition with other countries to reduce the cost, which is related to cost-component of investment, some hidden expenses are causing an increase in the investment cost, a survey of Japan External Trade Organisation (Jetro) found.The 17th survey of investment-related cost comparisons conducted by the Jetro said Bangladesh has been indicated 'as the cheapest place' in Asia in terms of nine investment cost components including legal minimum wages, social security burden ratio, office rent, monthly basic charge for using mobile phone and charges of utility services.

The Japanese organization conducted surveys in 30 Asian cities according to 32 cost components.

"The relative position of Bangladesh against the components like salary of mid-level manager, legal minimum wage, rate of increase in nominal wage, per square metre monthly rent of industrial estate, telephone installation fee, monthly basic telephone charge and call charge per minute, international call charge, mobile phone subscription fee, monthly basic mobile phone charge, cost of general use of per cubic metre gas and cost of diesel has been improved," the survey said.

But, the Jetro said, some hidden cost which are abstract by nature but exist in matters related to legal, policy, procedural, system and infrastructure have been playing a vital role in case of elevation of cost of investment.

"Absence of comprehensive one stop service, poor law and order situation, delay in the settlement of L/C payment, sudden changes in government policies, inadequate infrastructure facilities, political instabilities, problem related to Port of Chittagong, political activities like hartal need attention of the Government of Bangladesh to reduce the hidden cost of investment," it said.

According to the survey, the mean order of all the components has switched to 2.44 from 2.49, indicating a very small elevation, which means Dhaka has become a little more cost-competitive from the viewpoint of investment costs.

It said the cost related to the usage of mobile phone has gone down because of internal stiff competition among the mobile operators belonging to private sector.
The survey also found that due to emergence of several new private cell phone operators, the new connection fee for mobile phones has become cheaper and it is anticipated that the call charge and monthly basic charge for mobile phone with ISD facilities will further go down as new operator Warid Telecom of Dhabi Group commenced their operation in Bangladesh recently.

But, the Jetro said, among the 32 cost components mentioned, many of them are controlled and managed by agencies under the public sector.

"Therefore, the government should remain vigilant in case of any change of cost-components in other countries and has to continue its effort to achieve greater competitive edge by adjusting the cost," the survey pointed out.

The wage for workers, salary of the mid-level managers, legal minimum wages, social security ratio, cost of land area of an industrial estate, telephone installation fee and call charges, electricity and water costs, and corporate taxes are among the other cost-components.

It, however, said comparing to other Asian countries, Bangladesh is less competitive in the areas like cost of industrial estate land, monthly basic payment for broadband internet service, new connection fee for fixed telephone line, container transportation cost and rate of corporate taxes.

Specially, the monthly basic payment for broadband internet service in Bangladesh is continuously the highest in Asia, it said.

Regarding telephone service, the survey said, the charge per call in Bangladesh stands around the middle range among the Asian countries, but the new installation fee is quite high.

Regarding the container transport, the survey has been made for the routes from 30 Asian cities to the ports of Yokohama and Los Angeles and the result shows that even after offsetting the proportional cost due to geographical longer distance, the cost of transportation from Chittagong Port is higher than that from Mumbai Port. "This is due to the fact that large container ships cannot come to Chittagong Port due to its shallow draft and, therefore, transshipment of containers becomes necessary either at Singapore or at Colombo," the survey pointed out.

According to the survey, corporate tax in Bangladesh, being 40 per cent for non-listed companies, is one of the highest in Asia. The rate is also highest among all 30 cities considered in the 17th cost survey.

During the budget of 2005-06, the tax holiday period for certain industry has been extended until June 30, 2008 for four and six years depending on the location. "That means, the enterprises which have been enjoying tax holiday so far will have to pay the corporate tax after June 2008, causing disadvantage to the investors," the survey noted, adding that, "Bangladesh might lose its competitiveness if the tax holiday facility is not extended further, while the facility exists in other countries."

In addition, the survey said, the government has to ensure proper care of the existing foreign investors to attract more investment. "If the existing investors are not satisfied, then the probability of getting new FDI will gradually decrease in course of time and the prospective investors will go to other countries, which are keen for attracting foreign investment," it observed.

The Jetro suggested that the government should conduct occasional surveys among the foreign companies on the degree of their satisfaction and try to resolve any existing problem for further improvement.
http://www.thedailystar.ws/2007/06/22/d70622050258.htm
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  #42  
Old June 21, 2007, 11:57 PM
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I'm not an economist, and have very little knowledge about it. But the title "Investment cost in Bangladesh reduces, but hidden expenses rise" doesn't surprise me. It's quite obvious to me...for some reasons!
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  #43  
Old July 1, 2007, 05:23 PM
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Referring to #36, this article says it all

The total foreign remittance for fiscal year 2006-07 crosses the record 600 crores USD which is 120 crores more than last years'. Something to cheer!!
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  #44  
Old July 11, 2007, 05:28 PM
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In reference to our earlier discussion on the price of gas, I'd like to post today's Daily Star news report:

Quote:
Originally Posted by The Daily Star, 12 July 2007
IMF presses for gas price hike
Rejaul Karim Byron

The International Monetary Fund (IMF) has suggested that the government increase the price of natural gas before adjusting the prices of electricity, fertiliser and petroleum products.

"Higher gas prices will imply a need for further adjustment in electricity and fertiliser prices but reform of energy sector policy will be incomplete and distortionary unless adjustment of gas prices is included," an IMF report placed to the government recently said.

Finance ministry sources said the government's recent move to increase natural gas prices is in line with the IMF recommendations. "The government will raise the natural gas prices and then adjust prices of fertiliser, electricity and different petroleum products," a ministry official said.

....

Read Here
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  #45  
Old November 11, 2007, 12:40 PM
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Time to dig up an old thread.

Recently, i found couple of interesting read for those who are interested.

The first report is the analysis of the development of Bangladesh and how it could join the Middle Income Countries ( MIC) by 2016 or sooner, subjected to a sustained economic growth of 7.5% per annum.

Just for those who interested: it is a 202 pages report. ( no, i havent finished reading the whole yet)

Bangladesh to join MIC by 2016 or sooner?

The second report is on our beloved city Dhaka, which is considered as the fastest growing mega-city in the world.

This report explores various different aspects and is also 160 pages.

Dhaka- The fastest growing mega city in the world.



Have fun reading.!!


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  #46  
Old November 11, 2007, 01:14 PM
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Quote:
Originally Posted by Rabz
Time to dig up an old thread.

Recently, i found couple of interesting read for those who are interested.

The first report is the analysis of the development of Bangladesh and how it could join the Middle Income Countries ( MIC) by 2016 or sooner, subjected to a sustained economic growth of 7.5% per annum.

Just for those who interested: it is a 202 pages report. ( no, i havent finished reading the whole yet)

Bangladesh to join MIC by 2016 or sooner?

The second report is on our beloved city Dhaka, which is considered as the fastest growing mega-city in the world.

This report explores various different aspects and is also 160 pages.

Dhaka- The fastest growing mega city in the world.



Have fun reading.!!



Thanks Rabz. Ill get down to skimming through it as soon as I can. But which countries fall into the middle income countries anyway? A quick search through wiki turned up nothing....
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  #47  
Old November 11, 2007, 01:55 PM
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Low Income: Countries with annual per capita income of $ 905 or less

Lower Middle Income: Per capita income between $ 906- $ 3,595

Upper Middle Income: Per capita income between $ 3,596 - $ 11,115

High Income: Per capita income of $11,116 or more.
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  #48  
Old April 24, 2009, 02:05 AM
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Just wanted to share some good news, that amidst all the bad new around economy, we do have some good news in the tourism sector.

ITTEFAQ REPORT

One more request to Mods: We have the BD Breaking News as sticky, which is actually loaded with all negative news, why not have this thread or a positive news thread as sticky as well. !!
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  #49  
Old May 1, 2009, 10:50 PM
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You can tell by the newly built Apartment complexes all around Kolatoli area
of Cox's Bazaar, how rapidly the whole skyline is changing right there.
I really feel sad about Zaflong which had huge potential but lost its charm under the atrocious hands of local stone merchants.
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  #50  
Old May 2, 2009, 10:11 AM
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People will be leaving Dhaka because it will be abandoned.
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