Internet Edition. September 9, 2007, Updated: Bangladesh Time 12:00 AM 
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Interest rates on bank loans



ONE area where the government needs to play a very useful role is encouraging new investments in the economy. Investment operations are presently stagnant but the same are likely to get a big boost if the banks substantially lower their interest rates on loans. The government should persuade the banks to take such decisions.

Entrepreneurs maintain that they find the interest rates charged on bank credits unserviceable. The interest rates vary between 13 and 15 per cent but can be as high as 22 per cent But interest rates on bank loans are 2 to 3 per cent in developed countries. Even in other South Asian countries the highest rates on such loans, on average, are no more than 5 per cent Thus, it is no surprise that in Bangladesh high costs of fund remain a very serious obstacle to greater investments. Specially under the current depressed investment scenario in the country for many reasons, investment operations need a kick start and this can only happen with a major stimulus like significant reduction in the interest rates on bank credits. The undeveloped conditions of the stock market and the same state of merchant banks and other mobilisers of finance in the country, have made the position of the banks all important as finance providers to businesses. But this is found to be hardly helpful to businesses because of high interest rates on bank credits.

The Bangladesh Bank (BB) recently wrote to the commercial banks to make real efforts to push down their lending rates. But this directive was hardly responded to. The Governor of the Bangladesh Bank appealed to the managements of the commercial banks to decrease their lending rates. Entrepreneurs and other businesses also appealed to the government for the same but in vain.

Therefore, only urgings from the BB will not work. BB authorities should have meetings with the commercial banks and make them agree to a time-bound plan to reduce the interest rates. BB should be prepared to be more flexible in relation to banks maintaining compulsory cash reserve (CCR) as that would help increase the resource base of the banks to be able to consider lending at lower charges. The banks would be required under the plan to cut back on their operating costs and take other steps that would help them to reduce lending rates. The burden of non-performing loans in the past was a formidable problem for the banks to consider the issue of fresh loans at lower interest rates. But a great deal of these loans have been writen off, and so there is no reason why the banks cannot lower interest rates in their relatively less complicated position.

Food security in changing climate



AGRICULTURAL research is of paramount importance. It is expected to focus on developing new high yielding varieties of seed and the varietal degeneration. Productivity diminishes with varietal degeneration. Higher productivity can meet the ever-increasing demands for agro-products in view of the growing population of the country. Research in agriculture has, however, assumed a worrisome dimension with climatic changes due to global warming. The Intergovernmental Panel on Climate Change (IPCC) which is a research organization guided and funded by two UN agencies, suggests that Bangladesh is likely to be one of the hardest-hit countries in respect of its agriculture due to the global climate change. Production of rice may drop by 10 per cent and wheat by one-third in Bangladesh by 2050, if agriculture in this country fails to devise appropriate strategies to cope with changing climate. Consumption of cereals will increase substantially with further increases in population.

As of date, the production of rice has fairly kept up with population growth. But there is no assurance of maintaining this balance on a continuing basis. Experts reveal that most of the currently used varieties of rice seeds have outlived their normal longevity. Further higher yields are not possible from them. Therefore, introduction of new high yielding seeds is needed. Seeds need to be tolerant of varied conditions of weather, which the IPPC is predicting for Bangladesh.

New varieties of seeds have to be developed specially for cereals with shorter growing season but producing greater yields. Seeds may have to be developed to adapt to saline conditions as saline water intrusion cannot be avoided in the coastal districts. Seeds will also have to be developed to withstand drought Research would be needed to develop flood resistant varieties.

It is heartening to note that BRRI continues with research on all the issues under discussion. We look to our researchers for developing new varieties to ensure food security in the face of climate change.

Jobs overseas for a beter living

Maswood Alam Khan

Apa Khabar? Apa Khabar?"……"Tumi Kemon Aso? Tumi Kemon Aso?" (How are you?) "Khabar Baek, Khabar Baek" ……"Ami Bhalo Asi, Ami Bhalo Asi", (I am fine). I thought the young man had gone mad mumbling some mantras out of his claustrophobia as I heard him murmuring those words, seated on his chair in a Boeing aircraft back in 1995. Later, on my frank enquiry, I came to learn that it was his maiden journey by air on his way to Malaysia from Bangladesh to work there as a wage-earner; by rote he was learning some functional Malay phrases well before his plane landed at Kuala Lumpur. I was simply flabbergasted meeting a dogged learner of a foreign language!

During my three and a half-year stint in Kuala Lumpur as Chief Representative of Agrani Bank in Malaysia I failed to learn Malay to claim that alien tongue as my second language, even after taking a course to pick up the language. On the other hand, Bangladeshi workers in Malaysia, who knew no language other than their mother tongue, had their command of Malay so fast that one of my Malaysian (Chinese by race) friends told me that some Bangladeshis working in his factory were much beter in verbal communication in Malay than even the Chinese who are born citizens in Malaysia.

Exports have gone up. Success in exports of RMG, manpower and shrimps has opened our eyes to a secret that the job a machine cannot do and where human hands are more powerful than a robot is possible for all our unemployed people to perform, if only we knew how to reinforce our wishes to help toughen their hands with some skills. We hope and pray, the day is far away when a robot will occupy the human chauffer's driving seat

Of late, we are vocal not so much on micro enterprises as on small and medium-scaled industries; our policymakers want our people to be micro entrepreneurs and be graduated as soon as possible into industrialists, first in small and then in medium-scaled enterprises. Such shift in business road maps is vital in the backdrop of neck breaking competition against the global players who are always out to gobble up the small fries. For our survival, we have to jumpstart with industries compatible enough to compete with our giant counterparts in the world.

Given the trend of globalization, burgeoning purchase capacity of consumers, expansion of market for quality products and services and countries like China and India continuously wheting their products to turn those into cheap and at the same time durable and atractive, self-employed micro entrepreneurs in our country may find it difficult to survive if they cling for long to their traditional cotage industries. The widow who took a skimpy loan of Taka 5000 from an NGO to fry 'muri' by parching rice in hot sands would simply be crushed under the giant steps of a big player like "Praan Group" who, for example, may churn out 'muri' frying tons of rice in their enormous automatic furnaces in a mater of minutes. We must help the widow find an alternative trade path where a pirate player has not yet cast his predatory eyes.

For our young boys and girls, who are too poor to start even a micro business, fortunately, there are some niches where robotic hands cannot reach and economies of scale cannot compete. One such area is labor-intensive and the other knowledge-intensive. A healthy young boy who can lift heavy loads by his hands or a young girl who can drive a taxicab in inclement weather or a lady who is a certified nurse is always of great demand anywhere in the world.

We should note population growth in most of the developed countries is negative and trend of life longevity there is highly positive resulting in a hyper growth of ageing people. Developed countries have already been experiencing acute shortages of young, sturdy and trained people in areas, for example, like waste management, a colossal domain where there is a huge demand for guest workers. On the other hand, there is also an acute shortage of certified nurses all over the world. With eyes open to such overseas vacancies leaders of countries like ours, blessed with huge populations, must groom adult boys and girls accordingly, who otherwise could not, cannot or should not prosecute higher studies in universities.

It is heartening to learn that Bangladesh is exporting manpower to Canada. Our government must take extra precautions so that instances of corruption that foiled in the past many lucrative ventures of exporting manpower to different countries like Italy, Japan, and Korea are not repeated in case of manpower export to North America. Proper handling of this manpower exportation to Canada may pave future ways for our youths to other developed countries in America, Europe and Australia.

Bangladesh exported around 5 million people across the world from 1976 until April 2007; US$ 8 billion is expected as remitances from them by the end of the current financial year. Bangladeshi wage earners should be accorded Maharaja's reception in red carpets whenever they come home, as they are the best and the safest cash cows for our export earnings.

Many countries set up programs to invite guest workers whenever they face shortage of manpower, both skilled and unskilled. Under such a program more than one million guest workers mostly from Italy, Spain and Turkey were atracted to Federal Republic of Germany from 1955 until 1973.

With declining growth of population and burgeoning growth of aged people with much longer than expected life longevity (thanks to unprecedented advancement of medical science) in almost all the developed countries and with beter education acquired by students from poor countries at their homes and abroad countries like USA, Canada, Korea, Japan, Italy and many other countries in Asia, Australia and Africa are presently encouraging migration under programs like H-1B visa in USA and similar visa programs elsewhere.

A rare window of opportunity is now open when our government must facilitate the employment agencies and individuals to scout around and avail of overseas employments for our unemployed and underemployed youths. Of course, we should also see that there is no suicidal brain drains as a result and our people are not subjected to abuses in some countries where, for instance, migrant domestic workers working for wealthy families cannot change jobs as their passports are withheld by their employers who treat the workers as good as their possessions or as soft as their personal baggage.

Our government, in 2002, amended a few immigration rules liberalizing females to apply for jobs in all the countries of the Middle East Hundreds of Bangladeshi females, because of amended rules, are now remiting hard currencies as wage earners in many Arabian countries. Skilled female workers like nurses and other technical professionals, though very few in number, have already established their proficiencies in many countries.

According to a rough estimate, about 25 million people, along with a comparable number of dependents accompanying them, are working as foreign or guest workers all over the world of which about 14 million, including about 4 million undocumented workers, are engaged in the United States alone. There are, nevertheless, 5 million foreign workers serving in Saudi Arabia and 5 million in Northwestern Europe and not less than 500 thousand in Japan. Professional experts like physicians and engineers, blue-collar workers, language teachers and entertainers mostly constitute the international foreign workers. Some guest workers turned out as successful businesspersons and entrepreneurs in their host countries and a substantial number of such migrants assimilated themselves as citizens of different countries of their choice.

Whereas 48 percent of global migrant workers are female, we could not send abroad as female wage earners even 1 percent of Bangladeshi migrant workers though 90 percent of the Philippine, 80 percent of the Indonesian and 75 percent of the Sri Lankan migrant workers are female. We will have to incur irrecoverable opportunity cost if we fail to undertake a crash program of training potential females as nurses and experts in various trades and vocations and send them abroad as wage earners on a par with our neighboring countries.

Some 8 million Filipinos, almost 10% of the Philippine population, left their homeland to seek work abroad and are remiting home an average of about US$10 billion a year, which represents 13.5 percent of the country's GDP. Their jobs often include nursing, technology, fishing and teaching, although a third are composed of unskilled workers.

There is not a single developed country in the world where fluent English speaking Filipino maids babysiting children or taking care of household chores cannot be found. On the same count, hordes of Filipinas, after graduating and having work experiences, are leaving homes on their ways to developed countries in North America and Europe as certified nurses, a profession so lucrative on account of pay and prestige that even Filipina doctors undergo retraining to become nurses.

One public examination that roars their country, somewhat akin to SSC examination in our country, is the Philippine Nursing Licensure Examination, a multiple choice exam to test basic nursing level competency, held two times every year: June and December. Holders of a Bachelor's Degree in Nursing from a college or university that complies with the international standards of nursing education sweat buckets to answer hundreds of quizzes to secure at least 75% marks in each of a plethora of Test Modules ranging from 'Historical perspectives in nursing' and 'Care of clients with altered health paterns' down to 'Ethical-moral-legal responsibility' and 'Emergency & disaster nursing', etc.

Once passed the exam, the nurses first gather work experiences in their own country for one year or two and then sit for another exam called CGFNS (a globally conducted test to determine nurses' proficiency levels) which they easily pass to gain eligibility for Visa Screen Certification, a pre-requisite to obtaining a US occupational visa. Filipinas effortlessly blend with any hospital environment in any corner of the world where English is allowed as a medium of communication. The Philippines is the only country in the world where almost 80 percent of population can converse in their second language, English, though their mother tongue is Filipino, thanks to a long period of American colonial rule over the country.

Babies learn their mother tongue as they have to; language is a lifeline. Bangladeshi guest workers in Malaysia learned Malay fast as they had no alternative medium available; Malay was their lifeline. Chinese Malaysians are not much at home in Malay as they can communicate in their mother tongue with a huge population of Chinese speaking Malaysians. I failed in Malay and somehow survived for years in Malaysia because even a taxi driver in Kuala Lumpur could follow what I could express in English. Necessity, as the adage goes, is the mother of invention and based on this human penchant for learning lifesaving skills 'Immersion Language Programs' are nowadays available in software that can help one learner pick up a foreign language in a mater of days.

In this age of globalization one who is eager to change his/her fate must learn at least two languages in addition to his/her mother tongue. Smelling mountains of money in China westerners are now learning Mandarin and it may not be a surprise if Mandarin, in a mater of years, replaces English as the world's the most popular lingua franca! Unless we make second and third language courses compulsory in both elementary and secondary schools and colleges our youths would be skidded off in the global races for survival.

A student after somehow graduating in an Honors Course like Sociology from any of our universities may be termed educated but may not find a clerical job in a bank; on the other hand a younger girl, without passing her SSC exam, may find a rewarding job with a pay of Taka 2,00,000 (Taka Two lakh) a month in any French speaking province in Canada if she successfully completes a French language course. On the same count, a Bangladeshi experienced nurse can earn more than Taka 4,00,000 (Taka Four lakh) a month if she qualifies in CGFNS Test and picks up a few hundred words and phrases functionally essential in a hospital to converse in English, French, Spanish or Mandarin-Chinese.

I have seen with my own eyes and heard with my own ears a boy of my own soil parroting "Apa Khabar?" ("Tumi Kemon Aso?") (How are you?) while on his maiden journey by air to Kuala Lumpur. So, I can bet my botom dollar that our boys and girls would perform three times beter in mastering a language or qualifying in CGFNS compared to Filipinas or Koreans, if only our government today announces that licenses of all the private universities and private clinics would be cancelled if they, as a collective venture, fail to open within three months departments and laboratories for tutoring courses on nursing and on English, French and Spanish languages at discounted prices (or subsidized by the government) and set up a few centers in Dhaka, Chitagong, Khulna and Rajshahi where our experienced nurses can appear first in National Nursing Licensure Exam, then in IELTS (a test to determine proficiency in English) and later in CGFNS Test At the end of the next financial year, as a yield, the coffer of Bangladesh Bank will be filled with at least US$ 10 billion, I am sure 100 percent

May I, please, dream forward to the day when after arriving at the Paris Charles de Gaulle International Airport as I would be groping for a way out in the colossal Car Terminal a Bangladeshi young girl in her teens, for instance, from Golachipa upazilla pops her 'head with a ponytail' out the window on the driver's side and speaks out aloud: Je suis un chauffeur de taxi. Puis-je vous aider, monsieur? (I am a taxicab driver. May I help you, sir?)? Surprised, I would react, "Vous ne regardez pas de français. Sont vous Bangladeshi, en tout cas?" (You don't look French. Are you Bangladeshi, anyway?). The chauffer jumps out of her car and screams: Hou la! Oui, je suis Fatima du Bangladesh! (Wow! Yes, I am Fatima from Bangladesh!).

Rove's exit: Good for the Mideast?

Claude Salhani

THE vast majority of Americans would have never recognised Karl Rove even if they had bumped into him in the street or in a shopping mall. Yet, Rove was without doubt among the most influential and powerful men in Washington.

A long-time friend of President George W Bush, Rove liked to toil behind the limelight of his principals, working hard and usually discreetly geting them appointed. Then he would surf in on their coat tails making a spot for himself as the "eminence grise," the power behind the power.

His leaving the White House at this time does not bode well either for domestic nor for international policies, which Rove is most likely to continue to influence President Bush and the tight group of neoconservatives still running the White House.

Rove said he is leaving Washington for personal reasons, yet being the political animal that he is Mr Rove cannot give up party politics cold turkey.

Once he has tasted the red meat of electoral victory, it becomes difficult to give up the adrenaline rush. Indeed, many analysts inside the Washington Beltway suspect Rove's announced departure from Washington about 18 months before the end George W's term in the White House is one of his most cunning political manoeuvres, allowing the presidential adviser to withdraw from two pending investigations, in which he made well be implicated.

His departure from Washington would allow the "Dark Prince" to concentrate on a strategy to bring the Republican Party to victory in 2008, as he did in the two previous elections. His distance from Washington, and more importantly from the centre of power would allow him to focus on how to give the Republicans another victory without judicial interruption or threats of being called before Congress to testify in the two notable scandals, which now Rove leaves behind.

Rove was accused of being involved in the leaking of the name of an undercover CIA operative to the media, that of Valerie Plame, the wife of former ambassador Joseph Wilson.

The buzz around the Washington Beltway is that Rove was trying to get back at Wilson for an article he wrote in The New York Times, which contradicted the administration's allegations that Saddam Hussein had obtained yellow cake from Niger.

Yellow cake is an essential ingredient in the production of nuclear bombs.

Then not only a few weeks ago Rove became involved in the brouhaha over reports that the firing of nine US district atorneys was politically motivated, with the intention to replace them with lawyers more faithful to the president The aim was to influence the elections.

"Although Rove will remain out of the light in the 2008 presidential election, he is very likely to be orchestrating policies and advising the GOP in a discreet manner," said Hiam Nawas, a political analyst in Washington.

Among the tight group of neoconservatives that surrounded the president, Rove was undoubtedly the closest, having gone to work for him when George W was running for governor.

From there he drove Bush to two presidential victories. He remains a highly controversial figure, loathed by many, but admired by others for his razor-sharp intellect

Among his detractors are those who accuse him of trying to turn the country into a unilateralist super-bully, now that the United States is the only remaining superpower. He is thought to be one of the main architects of the wars in Afghanistan and Iraq and, along with Vice-President Cheney, one of the hawks calling for "decisive action," in other words military action against Iran in order to put a stop to the Islamic republic's nuclear ambitions.

How does Rove's departure affect the Middle East? Chances are the political mastermind of the White House for these last few years would be far too busy planning the Republicans' comeback in 2008. This will be a crucial election for the Republicans who stand a good chance to lose the race to the Democratic Party.

If he does get involved in any Mideast policy making his counsel may be short and terse. In dealing with the Iran dossier, much like the vice-president, he is likely to support the use of force and would counsel Bush accordingly. The saving grace is that while the president keeps insisting that "all options remain on the table," Bush, for the moment, remains opposed to the military option.

 
 

 
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