The New Nation - Internet Edition

Nokia Siemens wins network expansion deal in Bangladesh

Reuters, Helsinki

Telecom network equipment firm Nokia Siemens Networks said yesterday it had won an order to expand the GSM mobile telephone network of Teletalk Bangladesh, a state-owned operator.

Financial details of the deal were not disclosed, but Nokia Siemens said it would expand Teletalk's GSM network, particularly in the capital city of Dhaka.

Nokia Siemens Networks (NSN) is a 50-50 joint venture of the world's top cellphone maker Nokia and Germany's Siemens.

US superpower status is shaken

BBC News website

The financial crisis is likely to diminish the status of the United States as the world's only superpower.

On the practical level, the US is already stretched militarily, in Afghanistan and Iraq, and is now stretched financially.

On the philosophical level, it will be harder for it to argue in favour of its free market ideas, if its own markets have collapsed.

Pivotal moment?

Some see this as a pivotal moment.

The political philosopher John Gray, who recently retired as a professor at the London School of Economics, wrote in the London paper The Observer: "Here is a historic geopolitical shift, in which the balance of power in the world is being altered irrevocably.

"The era of American global leadership, reaching back to the Second World War, is overt The American free-market creed has self-destructed while countries that retained overall control of markets have been vindicated."

"In a change as far-reaching in its implications as the fall of the Soviet Union, an entire model of government and the economy has collapsed.

"How symbolic that Chinese astronauts take a spacewalk while the US Treasury Secretary is on his knees."

No apocalypse now

Not all would agree that an American apocalypse has arrived. After all, the system has been tested before.

In 1987 the Dow Jones share index fell by more than 20% in one day. In 2000, the dot-com bubble burst. Yet both times, the US picked itself up, as it did post Vietnam.

Prof Gray's comments certainly did not impress one of the more hawkish figures who served in the Bush administration, the former UN ambassador John Bolton.

When I put them to him, he replied only: "If Professor Gray believes this, can he assure us that he is selling his US assets short?

"If so, where is he placing his money instead? And if he has no US assets, why should we be paying any attention to him?"

Nevertheless, it does seem that the concept of the single superpower left bestriding the world after the collapse of communism (and the supposed end of history) is no longer valid.

Multi-polar world

Even leading neo-conservative thinkers accept that a more multi-polar world is emerging, though one in which they want the American position to be the leading one.

Robert Kagan, co-founder in 1997 of the "Project for the New American Century" that called for "American global leadership", wrote in Foreign Affairs magazine this autumn: "Those who today proclaim that the United States is in decline often imagine a past in which the world danced to an Olympian America's tune. That is an illusion.

"The world today looks more like that of the 19th Century than like that of the late 20th.

"Those who imagine this is good news should recall that the 19th Century order did not end as well as the Cold War did."

"To avoid such a fate, the United States and other democratic nations will need to take a more enlightened and generous view of their interests than they did even during the Cold War. The United States, as the strongest democracy, should not oppose but welcome a world of pooled and diminished national sovereignty.

"At the same time, the democracies of Asia and Europe need to rediscover that progress toward this more perfect liberal order depends not only on law and popular will but also on powerful nations that can support and defend it."

New scepticism

The director of a leading British think-tank Chatham House, Dr Robin Niblett, who has worked on both sides of the Atlantic, remarked that, at a recent conference he attended in Berlin, an American who called for continued US leadership was met with a new scepticism. "The US is seen as declining relatively and there has been an enormous acceleration in this perfect storm of perception in the waning days of the Bush administration. The rise of new powers, the increase in oil wealth among some countries and the spread of economic power around the world adds to this," he said.

"But we must separate the immediate moment from the structural. There is no doubt that President Bush has created some of his own problems. The overstretch of military power and the economic crisis can be laid at the door of the administration.

"Its tax cuts were not matched by the hammer of spending cuts. The combined effect of events like the failures in Iraq, the difficulties in Afghanistan, the thumbing of its nose by Russia in Georgia and elsewhere, all these lead to a sense of an end of an era.

The longer term

Dr Niblett argues that we should wait a bit before coming to a judgment and that structurally the United States is still strong.

"America is still immensely attractive to skilled immigrants and is still capable of producing a Microsoft or a Google," he went on.

"Even its debt can be overcome. It has enormous resilience economically at a local and entrepreneurial level.

"And one must ask, decline relative to who? China is in a desperate race for growth to feed its population and avert unrest in 15 to 20 years. Russia is not exactly a paper tiger but it is stretching its own limits with a new strategy built on a flimsy base. India has huge internal contradictions. Europe has usually proved unable to jump out of the doldrums as dynamically as the US.

"But the US must regain its financial footing and the extent to which it does so will also determine its military capacity. If it has less money, it will have fewer forces."

With the US presidential election looming, it will be worth returning to this subject in a year's time to see how the world, and the American place in it, looks then.

Pubali Bank puts emphasis on 'Credit Risk Management'

BUSINESS REPORT

A workshop for the officers of Pubali Bank Ltd on 'Credit Risk Management and Grading' was held at the Pubali Bank Head Office organised by Pubali Bank Training Institute recently. Managing Director of Pubali Bank Ltd Helal Ahmed Chowdhury was present as the chief guest at the workshop.

In his speech, Helal Ahmed Chowdhury advised the Pubali Bank officials to be more vigilant in handling credit and documentation relating to credit sanction and disbursement.

He also emphasised on risk analysis and proper monitoring for sanctioning loans and take precautionary measures to choose good borrowers.

The Managing Director asked everyone to explore their maximum skills and talents through the knowledge earned in training and analysis of loan portfolio to approve advances.

He underscored the need for grasping the theme of Artha Rin Adalat Ain-2003 and taking the opportunities contained in different provisions of the Act for recovery of loans in pursuance of the law.

Helal Ahmed Chowdhury asserted that in order to become a successful banker in the competitive global banking arena, all bank officials should have a clear concept about credit risk management.

He advised all the officials to abide by the rules and regulations of Bangladesh Bank and other regulatory bodies since the Pubali Bank is a very compliant bank.

He also suggested everyone to study the changes being taken place in financial markets of the world and gather knowledge from them.

Principal of the Training Institute Badruddin Ahmed and faculty member DGM Sushil Kumar Paul were present at the workshop.

Germany clinches bank rescue deal

BBC, London

Germany's finance ministry has agreed a 50bn euro ($68bn; £38.7bn) plan to save one of the country's biggest banks.

The deal to save Hypo Real Estate, reached with private banks, is worth 15bn euros more than the first rescue attempt, which fell apart on Saturday.

Germany earlier appeared to announce an unlimited guarantee for private savings and Denmark later followed suit.

The steps brought little comfort to Asian markets, where Tokyo's Nikkei index tumbled 4.7% to a four-year low.

The problems of Hypo Real Estate have put further strain on other financial institutions struggling against a crisis of confidence in the global financial system.

The turmoil in Europe pushed markets in Japan, Hong Kong and India down by more than 3% in the first trading sessions since the US agreed a $700bn (£394bn) bail-out for its beleaguered financial sector on Friday.

French giant BNP Paribas confirmed it had agreed to buy 75% of Fortis's operations in Belgium and Luxembourg. In return, the governments of Belgium and Luxembourg will take a minority stake in BNP. The Dutch arm of Fortis has been nationalised by the government of the Netherlands.

The Icelandic government agreed measures for the country's banks to sell off some foreign assets in a bid to shore up its entire financial system. Iceland's currency last week plummeted 20% against the dollar and the government was forced to bail out the country's third-largest bank, Glitnir.

'Irresponsible behaviour'

Berlin's finance ministry said it had acted to stop Hypo Real Estate's collapse in order to avoid "incalculably large" damage to Germany and financial services providers in Europe.

German Chancellor Angela Merkel said managers at financial institutions should be held accountable for "irresponsible behaviour".

Earlier, she moved to reassure German savers all their deposits would be safe.

Similar unilateral guarantees issued by the Irish and Greek governments last week were criticised in Berlin and other European capitals.

But after an emergency meeting with the central bank, Ms Merkel said: "We tell all savings account holders that your deposits are safe. The federal government assures it."

BBC business editor Robert Peston said the UK Treasury was attempting to clarify the details of Germany's guarantee.

Other EU states - including the UK - may feel they have to follow suit, our correspondent says.

Denmark's government announced just after midnight it would also guarantee all deposits, after its banks agreed to pay into a liquidation fund to take over distressed banks.

Deposits in Danish banks have in the past been guaranteed up to 300,000 crowns ($55,000; £31,000).

The UK finance minister, Alistair Darling, has said he is ready to take "pretty big steps that we wouldn't take in ordinary times" to help the British economy.

On Saturday, leaders of Europe's four biggest economies - Germany, France, Britain and Italy - stopped short of a co-ordinated US-style bank bail-out but vowed to stabilise markets.

Companies 'need green directors'

BBC, Barcelona

Businesses must change their attitude to environmental issues if the tide of ecological decline is to be halted.

That was the message from Valli Moosa, president of the International Union for the Conservation of Nature, opening the World Conservation Congress. The former South African minister said all companies should have directors with environmental experience.

The 10-day IUCN congress in Barcelona will debate global environmental problems and potential solutions. The organisation numbers almost all the world's governments, environment groups and business representatives among its members.

'Immoral markets'

Mr Moosa spoke frankly about his view that unfettered markets and businesses are largely responsible for the world's current environmental ills. "Leading entrepreneurs and markets have certainly contributed to the growth of the global economy; yet while individuals may be moral, markets are not," he told delegates.

"The damage industries and commerce do to people and the environment is real, it is considerable, and it is unacceptable." But, he added, it was also unnecessary. Businesses had a short-term interest in saving money through saving energy, and every boss had a different kind of interest in leaving the world an environmentally sound place for their children.

Every business, he said, should include at least one non-executive director with a working knowledge of environmental issues, just as they should include someone with a working knowledge of accountancy.

But while business practices must change, said Mr Moosa, governments too had a key role in bringing about change if our global society was to switch to a more sustainable path.

One vital task was to reach a binding deal on constraining greenhouse gas emissions, he said - a task that looks more difficult now that eastern European countries are challenging EU moves to cut emissions and deploy renewable energy, and with a report out last week suggesting that emissions globally are rising faster than ever.

Shrinking sceptics

The congress, which marks IUCN's 60th anniversary, takes place against the backdrop of increasing evidence that almost all global environmental indicators point downwards.

This was the picture starkly painted by the United Nations Environment Programme (Unep) last year in its five-yearly Global Environmental Outlook.

The report concluded that the current high rate of species loss, climate change, deforestation, overfishing, desertification and pollution, coupled with population growth, meant that future generations would inhabit a less healthy planet.

Tamas Marghescu, IUCN's director for Europe, agreed with the diagnosis.

"The potential area for nature and biodiversity is disappearing, the foundation of our sustainable life is disappearing," he told BBC News.

"So my conclusion is that the world is not going in a sustainable direction, and we need a new paradigm of sustainability." He suggested that part of the solution could lie in adequately valuing the services that natural resources perform for humanity, such as processing out waste, regulating the Earth's temperature and providing fresh water.

Just as the Stern Review outlined the economic costs of not mitigating climate change, a major exercise under the aegis of the European Commission is attempting to quantify the costs of not stemming the loss of species, estimated to be running at between 100 and 1,000 times the natural rate.

Mr Moosa suggested that the number of people and institutions sceptical of humanity's role in environmental decline was shrinking.

Within the last two years, he related, the World Economic Forum had signalled its concern on climate change, and the US Pentagon warned that consequences of global warming would include the spread of disease, harsher storms and environmental refugees.

"It seems as though the former sceptics are mainstreaming what we have always known," he said.

MIDAS Financing Ltd okays bonus share, cash dividend

BUSINESS REPORT

The Board of Directors of MIDAS Financing Ltd in its 143th meeting held on September 29, 2008 recommended issuance of bonus share for the year 2007-08 at the ratio of 1B:8 and 5 percent cash dividend, fixed the record date as October 20, 2008.

The shareholders whose names will appear in the Register of Shareholders on the record date will be entitled to dividend.

It was also decided by the Board that the 13th Annual General Meeting of the company will be held on November 10, 2008 at 10:30 a.m. in the auditorium of Trust Milonayatan, Dhaka Cantonment, Dhaka.

China detains six suspects in milk scandal

Reuters, Beijing

Chinese police have detained six people suspected of producing and selling melamine, the chemical at the center of the country's scandal over tainted dairy products, the official Xinhua news agency said.

The arrests were made in Hohhot, capital of the northern region of Inner Mongolia, which is China's main dairy-producing area, Xinhua said in an overnight report, citing the municipal government.

The arrests were made during an investigation into melamine contamination at Yili and Mengniu, two major dairy companies based in Inner Mongolia, it said.

Inner Mongolia Yili Industrial Group, Mengniu Dairy and Bright Dairy group were found earlier to have produced milk contaminated with melamine.

Xinhua did not say whether the suspects were connected to either of the firms. It cited Tian Min, vice secretary general of the municipal government, as saying the results of the investigation would probably be released in four to five days.

Thousands of children in China have fallen ill with kidney problems and four have died after drinking milk formula laced with melamine, a cheap industrial chemical that can be used to cheat quality tests.

China's latest food safety scare has also prompted mounting recalls and warnings abroad, as traces of the chemical have been found in a wider range of dairy products.

The arrests follow the detention last week of 22 people in Hebei province suspected of being involved in a network there for producing melamine and selling it on to milk farms and purchasing stations.

GP sings agreemen with Royal Bengal Airways

Grameenphone Ltd has recently signed an agreement with Royal Bengal Airways.

Under this agreement, Grameenphone's xplore and Business Solutions subscribers will enjoy up to 10 percent discount on the basic ticket fare on the domestic routes of Royal Bengal Airways, only from their own sales counters. The offer will be valid till November 6.

Fahad Saleh, Deputy General Manager, Marketing of Grameenphone Ltd and Syed M Zamal, Director, Royal Bengal Airways signed the agreement on behalf of their respective organizations.

Reshadur Rahman appointed Honorary Consul of Poland

Reshadur Rahman has been appointed as the Honorary Consul of The Republic of Poland in Bangladesh.

Apart from being an industrialist, he is a sponsor shareholder and former Director of the Dhaka Bank Limited and Chairman of the Executive Committee of the Dhaka Bank Foundation.

Mr. Rahman is the Managing Director of the different units of RR GROUP.

He is also associated with Dhaka Telephone Company Limited, HP Chemicals Limited, Alliance Stitches Limited, Alliance Bags Limited and Quality Breeders Limited.

Mr Rahman is also associated with different philanthropic and socio cultural activities, including number of professional clubs in Dhaka and Chittagong.

The Bangladesh Government handed over the Exequatur of his appointment to him as per approval of the Republic of Poland in a simple ceremony held at the Ministry of Foreign Affairs recently.

Mr. Rahman was born and brought up in Dhaka and is the son of Mr Md Fazlur Rahman. He is married to Mrs Shamsi Rahman and they are blessed with three sons and three daughters.

Japan reaches free trade deals with Vietnam, Switzerland

AFP, Tokyo

Japan said Monday said it had struck free trade deals with Vietnam and Switzerland, seeking to strengthen economic ties with individual countries amid a deadlock in World Trade Organisation talks.

About 92 per cent of trade in goods between Japan and Vietnam will be duty-free within the next 10 years, Tokyo officials said.

Under the agreement with Switzerland, Japan's first with a European country, 99 per cent of trade will be tariff-free within a decade. Neither agreement has been formally signed yet.

'Vietnam gave us a high level of liberalisation that it had never given to other countries such as China and South Korea' under their deals with the Association of Southeast Asian Nations, a foreign ministry official said.

Japan, Asia's largest economy, has also already signed a separate deal with the whole of ASEAN, which includes Vietnam.

Vietnam will get free access to the Japanese market for shrimps, durian, and okra, among other farm and marine products, while Japan will secure duty-free trade for its auto parts, steel and electronic goods, officials said.

EU to open 'job centre' in Africa

BBC West Africa

The European Union is to open its first immigration centre outside Europe, in Mali's capital, Bamako.

Thousands of young West Africans try to make it into Europe illegally each year and many die on the way.

The EU hopes the new centre will help people find legal work in Europe and cut down on illegal migration.

It is not clear how many jobs will be advertised but it will just be a drop in the ocean compared to the number of Africans desperate to work in Europe.

The European Commission says the new centre offers guidance on legal migration and helps with job training and the search for work abroad.

The centre will also raise awareness about the dangers of illegal migration.

Cotton subsidies

Mali has been chosen for good reason.

The West African nation is at the centre of well established migration routes. Thousands of young West Africans set off from the north of Mali each year across the Sahara Desert towards Europe. They are often ill-prepared for the journeys and many die on the way.

Travelling by sea from the West African coast to the Canary Islands is also a popular and risky route.

Young men from countries like Ghana and Nigeria often pass through Mali on their way to the coast of Senegal or Mauritania, where they are crammed into rickety fishing boats.

Just last week the Spanish coastguards rescued a group of 230 young Africans-the largest single boatload of illegal immigrants to reach Spain. A sharp increase in the cost of food and fuel has recently made life even harder for people in this region. In many West African countries, even university graduates struggle to find employment and a menial job in Europe is therefore a surer way of supporting a family.

Many argue that making world trade fairer is the best way to tackle illegal migration as it would help reduce the main cause - poverty.

Mali is one of the world's poorest countries and growing cotton is a popular livelihood.

However subsidies paid to US cotton farmers make it almost impossible for Malians to compete.