Investment Should Not Become Liability

Investors with dubious intention Cause trouble and irritation. Revenue loss,fraudulent activity Result of investment-liability.

For the development of a country, investment plays a crucial role. Foreign Direct Investment fosters employment generation. FDI also brings foreign currency/US dollar into the country. Bangladesh right now feels the hit of a record current account deficit due to lack of foreign currencies.

Apart from that the most crucial thing FDI does is to bring new technology that propels a country to a new stage by increasing productivity, value addition and access to wider market.

Failure to meet these goals deviates a country from the road to reach the next destination. Just a month ago I came across a news report that divulged how our investment policies are being misused by a vested group who plays all the dirty tricks in its book to fool the authority. The report says a Chinese company CONDA Art Materials opened a factory at Chattogram EPZ and exported goods to various countries using “Made In Bangladesh “ label. EPZ authority to its surprise found that the company put “Made In Bangladesh “ tag on Chinese-made goods,forged documents and exported the goods abroad,evading taxes and other tariffs applicable to it as per Bangladeshi laws. The company even paid punitive fees for its act¹.

In this case,no value addition took place,government did not get proper revenue and workers missed the remuneration that went to Chinese workers pockets.”Made In Bangladesh “ price tag is deliberately misused to market goods that are not produced by Bangladeshis.Danger is such misdeed may be replicated if no action is taken.

We need FDI. But who are investing here, how they plan to go ahead with their proposed projects,type of investment are the things that call for greater scrutiny.

Bangladesh lies in a region where bouts of corruption,turmoil, longest running insurgency prevail.Bitter truth is that these things have leverage on our external trade.We should be more cautious to maintain our independent and buffer role when when we give nod to FDIs.

In social media,I watched few videos made by British Travel blogger Simon Wilson who coincidentally/accidentally unearthed how the good intentions of investment may turn ugly. In Cyprus, a British gangster invested in real-estate in a bid to legalize his wealth which he amassed somewhere else. The investment was not properly planned or done with dubious intentions.It led to unsold houses. Some even went to court to sue the gangster for selling one unit of house to multiple clients².

In this case,investment did not resolve the housing problem of the Cypriots and the worst part is that criminal activity spread to other part of the Europe.

Bangladesh’s resource is limited and capacity of our government is not good enough like those of other countries.So detection of fraudulent acts in disguise of investment / economic activity is an uphill task for a poor and corrupt country like ours.

What is worrying we do not have laws or institutions that could distil undocumented money and convert them into productive capital and direct it to economic activities.

Investment, be it domestic or foreign ,should not turn sour. In the case of Cyprus, investment made by British gangster may drive up the housing prices,making it difficult for the ordinary Cypriots to buy a house. Waste of resources (man-hour,land) is also observed. In Myanmar, operation of foreign tour operators did not bring any foreign currency due to Chinese tour operators’ “zero-dolllar” policy. So every penny spent by a tourist went straight into the pockets of Chinese tour operators who arranged the trip. In this case, investment did a tremendous disservice to local industry.

The case of metro could be brought here for discussion. We made investment in public transportation not for quick returns. Metro is considered cheapest mode of transportation.Aam-Admi(ordinary people) travel on metro.That is why fare is cheaper than bus.But in Bangladesh, according to a news report by the Daily Star,minimum fare of metro is TK 20 whereas it is TK 8 for bus.Across the globe metro system is conceived and designed for the mass. And its pricing reflects it.Metro fare in Bangladesh is even higher than that exists in the neighboring countries. I think per kilo fare of metro should be less than per kilo fare of bus,now TK 2 or 2.20. A fare in the range of TK 0.75 –TK 1.5 would be ideal for me.If Delhi,Kolkata can expand their network with such a low fare,then Bangladesh can also follow their footsteps.

Investment should not be a mean to amplify the ordeals of ordinary citizens. It should not be a scope to rich the portfolio of those with bad reputation.It should not also be a source to increase the liability of the country.

Notes And References:

1. ”Chiney Toirey ‘Made In Bangladesh' Ponno Jukto Rashtrey Roftani Kora Hochhey(Chinese Made ‘Made In Bangladesh' Products Are Being Exported To USA)”,AOW News. For more see https://tinyurl.com/44b5ryve
2. Simon Wilson's video on Cyprus millionaire,"Abandoned Millionaire Ghost Town In Cyprus". For more see https://tinyurl.com/ytjdn9z7

La Semaine Dernière A Mes Yeux

(02 septembre --- 09 septembre)

Ma Semaine Gastronomique

Date	Petit déjeuner	Déjeuner	Dîner	Snacks,Sucreries,Boissons et Fritures
03	Pain tchapati,Haricot vert	Riz,Bombili poisson,Soupe aux lentilles	Riz,Haricot vert,Omelette, Soupe aux lentilles	Riz gonflé, Miel,Lait
04	Pain tchapati,Lait	Riz,Purée de Pomme de terre,Haricot Vert,Soupe aux Lentilles	Riz,Purée de Pomme de terre,Haricot Vert,Soupe aux Lentilles,Lait	Riz gonflé,Miel
05	Pain tchapati,Œuf poché,Haricot vert	Riz, Purée de pomme de terre,Soupe aux lentilles	Riz,Purée de pomme de terre,Œuf poché,Soupe aux lentilles	Lait, Miel
06	Pain tchapati,Citrouilles	Riz,Citrouilles, Ruhi poisson	Riz,Ruhi poisson,Papaye-Pommes de terre	Riz gonflé,
07	Pain tchapati,Œuf poché,Papaye-Pommes de terre	Riz,Ruhi,Épinards malabar,Soupe aux lentilles, Papaye-Pommes de terre	Riz,Papaye-Pommes de terre,Haricot Vert>	Lait,Riz gonflé
08	Pain tchapati,Omelette, Haricot vert	Riz,Courge amère,Papaye,Purée de pomme de terre	Riz,Courge amère,Purée de pomme de terre,Œuf poché	Riz gonflé
09	Pain tchapati,Papaye	Riz,Épinards de l'eau,Luffa-Haricot vert	Riz,Épinard de l'eau,Œuf poché,Soupe aux lentilles,Luffa-Haricot Vert	Jhal Mury

Now Tea Becomes Costlier

After milk,tea becomes costlier Hinting a market no longer holier. More entry and regular hearing Could end the price engineering.

In a surprise move, tea distributing companies have raised the price of tea by Tk 60 per kilo.It came in the wake of government’s decision to raise the daily wage of tea workers from TK 120 to TK 170,the lowest daily wage of a tea-worker in the world.Before that tea-workers across Moulavibazar and Sylhet went into strikes demanding a wage hike. But the tea-garden owners were adamant that they would not give in to workers' demands. Intervention of the govt resolved the standoff.

The condition of tea-workers is really horrific. They could vie for a true case of bonded-labor. Colonial garden owners lured them from various parts of India to work in tea plantations in the Bengal. They were given a contract with a meagre salary and deceived to continue the work generation after generation. Their children do not get proper education. So they cannot scale up from poverty. Neither they can get easy credit /opportunity to start their own businesses. TK 120 /day as salary was not only inadequate to feed couple of mouths in the family,it was unjust. So their protest was just and garnered lots of attention.

The little increase TK 170 is still unjust. In addition, it can hardly meet daily expenses in this high inflation era.However, the fuel price hike coupled with wage increase used as pretext to raise the tea price. As I was watching a news clip,one garden-owner shrugged off the responsibility laying the blame squarely on the distributors who invented lots of reasons to justify the price hike.

Rise in prices of milk,meat and rice still rankled with ordinary citizens. Tk 60 increase in one kilo rubs salt to inflation-injury.

However, govt's announcement to reduce diesel price by TK 5 is viewed as gentle breeze to this never-ending price heatwave. But the decision is yet to be translated into prices of essential items.

Big distributors engaged in marketing tea have other ventures too,as we see in the case of other consumer goods. Some even own their own gardens. The price increase came as a shock.If gardens were allowed to market tea at consumers’ doorstep,we would see much lower prices of tea than what we are seeing now. A complete revamp in marketing and distribution of tea is what we want to see now.

For far too long,we have tolerated anarchy in consumer goods and agro-processed goods market by allowing few operators who managed their capital from tobacco,distillery,lending,pharmaceuticals and real-estate businesses.Yet consumers have not seen any drop in prices. An active role of consumer rights body and entry of new comers into the market could put an end to this bad practice.

La Semaine Dernière A Mes Yeux

(26 août --- 02 septembre)

Ma Semaine Gastronomique

Date	Petit déjeuner	Déjeuner	Dîner	Snacks,Sucreries,Boissons et Fritures
27	Paratha,Omelette	Riz,Soupe aux lentilles, Épinards malabar,Papaye-Citrouilles	---	Lait
28	Pain tchapati,Rice pudding ,Lait	Riz,Anguille en zigzag poisson,Soupe aux lentilles	Riz,Purée de pommes de terre,Soupe aux lentilles	---
29	Pain tchapati,Omelette	Riz,Courge amère,Ruhi,Soupe aux lentilles	Riz,Pois de chiches avec pommes de terre,Courge amère,Ruhi	Singara
30	Pain tchapati,Omelette,Lait	Riz,Haricot vert,Courge amère,Soupe aux lentilles	Riz,Haricot vert,Soupe aux lentilles	Lait,Gâteau au rônier,Miel
31	Pain tchapati,Haricot vert,Lait	Riz,Courge amère,Papaye-pommes de terre,Poisson-chat à moustache longue	Riz,Papaye-pommes de terre,Soupe aux lentilles, Omelette	Riz gonflé,Miel
01	Pain tchapati,Haricot vert,Lait	Riz,Citrouilles-Gourde pointue, Purée de la peau de gourde pointue, Purée de la peau de gourde calebasse,Soupe aux lentilles	Riz,,Citrouilles-Gourde pointue, Purée de la peau de gourde pointue, Purée de la peau de gourde calebasse,Soupe aux lentilles	Lait,Riz gonflé,Miel
02	Pain tchapati,Lait	Riz,Ruhi poisson avec gourde épineuse, Haricot vert	Riz,Ruhi poisson avec gourde épineuse, Haricot vert	Riz gonflé,Miel,Lait

Intervene In Protein Market

Sudden hike in milk price Hints the market is not fair and nice. Updated consumer rights' laws Could fix the market and address the flaws.

Recently prices of liquid milk distributed by big companies have increased by TK 10. From now on 1-litre of liquid milk will cost Tk90.Few companies operate in this market. And many of them dominate the food-processing industry.The latest decision will make protein costlier for the middle and lower middle-income groups. Earlier, eggs were sold at Tk180/170 per dozen. Now it is hovering somewhere around Tk120/130 per dozen.

Inflation-battered household is already paying a heavy price by curtailing their consumption and spending.Rise of coarse rice price gives an indication about the gravity of the situation. A year ago ,1 kilo of coarse rice was being sold between Tk 35 and 38. Now the coarse rice is being sold at Tk 55.Tk 20 increase is indeed costly for the lower income groups. Even flour/atta price rose to an uncomfortable level. Official figure of inflation is 7%. But the food-inflation has long crossed the double digit figure and many argued that it is more than 15%.While household income is fixed many find it an uphill task to fight this battle against rising food-inflation.

Except Milk Vita, there is no successful cooperative in Bangladesh. If we have few more examples like Milk Vita,Amul then they could comfort cash-strapped middle class pockets by delivering affordable agro-products.Consumers would not mind if the high prices they pay for eggs,milk,milk-products and meat went to the pockets of govt-backed,regional cooperatives.

The issue here with current big operators of agro-products is that they have wide range of product line and they are dominating in every domain,from banking to media, from consumer goods to export-oriented industry. Moreover, many here operate in agricultural input market.It is unhealthy competition and unacceptable.Nowadays, we have seen people representing these groups have becomes MPs. Now groups are at policy level to influence the production and prices of inputs and final products.

As we have left-induced narrative-making machinery---very strong here,we have seen left-leaning media embarked on carrying narratives that justify the price increase of a particular product. Who did tell you to give the breakdown of cost of making a particular product?And such reports are not being carried out by profit-making media. At the end of the day, the inflated price became the new price of the product.This is a tremendous disservice to the consumer in general.

Government needs to break the cartel in fish feed,animal feed,poultry feed market. If it requires to intervene in these markets then it should leave no stone unturned to do so.Remember the greater good here is to ensure cheaper protein for the consumers. To do so if govt thinks it should allow import of eggs and meats then it should do so without delay.

Review of antitrust laws,quintessential to protect consumer interest is a must at this critical moment.Proper amendment should be made to bring down any obstacle to entry into the input and agro-processing market, to bar the companies operating in both the input and output market and to discourage them operating media outlet and running for MP election.

For an export-oriented industry, it is ok for backward and forward expansion. Production is taking place in one country,inputs are procured from another country and final product is sold in another country. One tiny individual exporter cannot influence the price. But when the market is domestic and consumers’ interest gets top priority, we simply cannot let the input and output markets fall into the hands of few groups as we have not installed the proper check and balance mechanism for the operation of such groups.

In many developed and developing countries, investment in agro-processing industry led to benefit both the consumers and peasants. But here in Bangladesh we have not reaped that benefit yet. Producers are yet to be insulated from any bed spell of cultivation. And consumers are getting worse off day by day by paying high prices for the processed food with a compromise to quality and environment. The price I pay for a small amount of dry cake/plain cake is not worth of the product. I deserve higher quantities for TK 10. And plastic wrapping is detrimental to the environment. Instead of big companies,if we invest in and modernize the neighborhood bakeries to maintain hygiene and quality goods,they will do a fine job in terms of delivering higher quantities of quality foods. And employment and revenue for the govt will increase by many folds. If these big groups have so much money and brain why they do not go to somewhere else and invest there to make money,leaving the consumers' market alone. Similarly, I have serious doubts about the joint-venture one as Bangladesh is no place for saints.BM container depot tragedy revealed how foreign investors with little credentials operate at ease in this country. My point is agro-processing industry should not be an industry to mask your other fishy businesses. I observe that Bangladeshi consumers in general pay inflated price for agro-processed goods compared to other countries.

I think consumer protection body should immediately convene a hearing on the increase in liquid milk price. A clear explanation on what provoked the sudden increase should be demanded. Any unjust increase should be met with punitive measures and further reduction in price. Very few imported ingredients are used in poultry and animal feed. It is bizarre that price increases drastically in the agro-processed industry since we allowed investment of big companies here. This kind of tendency has to be stopped for the sake of of the consumers. And no compromise is allowed with the protein needs of the ordinary people.

Notes And References:

1. ”Companies Increase The Price of Milk”,Dhaka Tribune Desk,August 27,2022.For more read at https://www.dhakatribune.com/commerce/2022/08/27/companies-increase-the-price-of-milk

La Semaine Dernière A Mes Yeux

(19 août --- 26 août)

Ma Semaine Gastronomique

Date	Petit-déjeuner	Déjeuner	Dîner	Snacks,Sucreries,Boissons et Fritures
20	Pain tchapati,Ruhi poisson,Lait,Thé sans sucre	Riz,Purée de pommes de terre,Ruhi poisson	Nouilles	Dattes,Lait,Thé sans sucre
21	Pain tchapati,Pommes de terre,Thé sans sucre	Riz,Soupe aux lentilles,Ruhi poisson	PainPain tchapati,Ruhi poisson	Dattes,Lait,Thé sans sucre
22	Pain tchapati,Omelette,Thé sans sucre	Riz,Purée de pommes de terre,Soupe à l'œuf dur	Pain tchapati,Soupe aux pommes de terre	Dattes
23	Pain tchapati,Omelet,Lait,Thé sans sucre	Riz,Soupe aux lentilles,Haricot vert,Banane	Riz,Purée de pommes de terre,Soupe aux pois de chiches avec pommes de terre	Dattes,Riz gonflé,Thé sans sucre
24	Pain tchapati,Soupe aux pois de chiches avec pomme de terre et prunier de porc,Thé sans sucre,Banane	Riz,Purée de pois de chiches avec pommes de terre,Ruhi posson,Soupe aux lentilles	Riz,Ruhi,Soupe aux lentilles	Riz gonflé,Lait,Banane
25	Pain tchapati,Ruhi poisson	Riz,Soupe aux lentilles,Hilsa sec dans feuille de calebasse gourde,Purée de pommes de terre	Riz,Purée de pommes de terre,Soupe aux lentilles,Omelette	Dattes,Riz gonflé,Lait,Miel
26	Pain tchapati(fait par moi),Omelette	Riz,Ruhi,Épinards malabar,Soupe aux lentilles, Courge amère	Riz,Purée de pommes de terre,Soupe aux lentilles, Ruhi poisson, Courge amère	Lait chaud

Souls In Distress

Seven hapless souls in Kyrgyzstan Suffers in hands of satan. To protect the souls spartan Is Foreign ministry's top concern.

Last week,few migrant workers who are also victims of human trafficking held a press conference at Dhaka Reporters' Unity. Two NGOs Refugee And Migratory Movement Research Unit and Rights Jashore organized the event. In that press conference, they revealed how they were tortured and lost everything in Kyrgyzstan. What is interesting they went there after obtaining permit from BMET and following all the legal procedures. Yet they fall into the hands of organized criminal groups¹.

The members of the group reneged the terms of the contracts ,held them against their will , meted out tortures and grabbed extra money for their release. Many in the process lost their meagre resources and went bankrupt. Despite having all the valid documents, they were deceived and tortured. 7 Bangladeshis are still in captivity and going through the ordeals their freed colleagues endured all these months.

BMET permit,considered the hallmark of a qualified migrant worker,and procedures are bluntly abused by a bunch of goons.And it happened right before the govt eyes. It is an indication how organized criminal groups are operating at ease in this country.

Earlier in Italy,hundreds of Bangladeshis assembled before the embassy of Bangladesh in Rome. They are demanding new passports to the embassy². Some 15000 Bangladeshis faced difficulties and other job related complications in Italy as they are not able to update their passports. Failure to get passport in time cast shadow over their jobs and status in Italy. These are real concerns that govt to take in cognizance are witnessing how negative growth of remittances in our traditional overseas markets led to 20% depreciation of Taka against US dollar.

More recently South African ministry of interior laid down that Bangladeshis and Pakistanis require transit VISA to enter Lesotho and Swaziland using South African airports. The decision came after some Bangladeshis and South Africans were detained by the customs and immigration for clandestinely using the South African airports.

In South Africa in the last 3 or 4 years 400 Bangladeshis ,most of them shop owners or assistants,lost their lives in gun violence. Govt did a routine job to send some officials to investigate about the matters.But it did not disclose the progress about the investigations. Rare are the occasions that Bangladeshis manage to know the result of such investigation.

If we take a look at the remittances inflow from top 10 countries we could easily see that there is a negative growth of 20.6% in Saudi Arabia during July-June of 2021-22 compared to a year ago. The growth in UK is 0.8% in the same period. In Italy,7th country in the list ,the growth is 30% and remittances sent by Bangladeshis working in Italy crossed the $ 1 billion mark³.

While remittances from Middle Eastern countries keep falling,those from Occidental countries continue to rise. The record current account deficit is an Eye-opener and reminds us that problems band challenges in our remittances earning sources should be addressed immediately.

Similarly, those mock the legitimate and safe procedure of sending workers abroad should be brought to book so that an example is made out of them and no one dares to make fun of the procedure.

And Bangladeshis ,no matter what social strata they represent,should be at the heart of Bangladesh’s foreign policy. Their woes,grieves,ordeals should be concerns of the concerned authority and no effort should be spared to address them while holding the head high. Our workers are abroad to make contribution at a competitive wage market. Protecting their interests should be the first objective of our missions as they are pursuing economic diplomacy diligently.

Notes And References:

1. "Bideshe Shoitey Hoechhey Nirmomota,Fireo Boro Bipodey Tara(Tortures Abroad, Ordeals At Home)”,Daily Prothom Alo(P-3), August 17,2022
2. “Bangladeshis Protest In Italy Demanding Age Correction In Passport, 2 Detained”,Star Digital Report,Daily Star,August 20,2022.For more read at https://www.thedailystar.net/nrb/news/bangladeshis-protest-italy-demanding-age-correction-passport-2-detained-3097011
3. Bangladesh Bank