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Business & Finance News Tuesday, September 23, 2003 Compiled by SDNP Head Lines
Economic reforms a must in developing
and
developed countries: Saifur The Bangladesh Ovserver
Finance
and Planning Minister M Saifur Rahman on Monday said that economic and
structural reforms must be needed both in the developing and developed
countries in the interest of the present global economic order, reports
BSS.
The Finance
Minister said, “The international financial organisations including
World Bank (WB) and International Monetary Fund (IMF) are now convinced
that the emerging socio- economic and political realities of the
countries concerned should also take into consideration for
implementation of the reforms.” Talking to newsmen at the VIP lounge of
Zia International Airport on Monday morning on his return from annual
meetings of the WB and the IMF in Dubai, he said the G-7 countries
finally agreed to generate more
resources to bring dynamism in the world economic order.
Responding to
a question, Saifur said the WB and the IMF have now recognised the
public sector which is capable of building infrastructure in the
essential fields. “They are now ready to assist our public sector for building infrastructure in power generation, water and sewerage, irrigation, port, telecommunications, flood control, etc.,” he said.
The Finance
Minister said the notion emerged in the early 90s that the private
sector could build infrastructure in these sectors, but it failed to
yield desired results even in the developed countries.
Saifur said
the IMF and the WB are very happy with the good financial management
that we have attained during the last two years.
“Our foreign exchange management, specially introduction of the free exchange rate, has been appreciated greatly by many countries” he said adding that “They wondered how we have executed this without any hue and cry.”
In recognition
to our success in the financial management and the pace of reforms, the
WB offered to provide us with record one billion dollar assistance which
is over half of its programme loan, the finance minister added.
Saifur said, “We have already submitted projects involving 300 million US dollars while 250 to 300 million dollars will be sought for more projects in view of fresh WB assurance,” he said.
He said the
assistance will be increased further in future as we have a three-year
approach in this regard.
During his
visit to Dubai, the finance minister addressed a workshop on the ‘role
of IMF in low-income member countries’, held separate meetings with WB
President James D. Wolfensohn, WB Vice-President Praful C. Patel, IMF
Deputy Managing Director Shigemitsu Sugisaki, and senior officials and
executives of the WB and the IMF.
Oil price continues slide ahead
of
mid-week OPEC meeting The Bangladesh Ovserver
SINGAPORE,
Sept. 22:–Oil prices continued to head south today ahead of OPEC’s
mid-week gathering to review production policy for the fourth quarter,
with all signals pointing to no change in the cartel’s output limits,
reports Reuters.
U.S. light crude for October delivery, which is due to expire at the close of New York trade on Monday, shed 15 cents to $26.88 a barrel. The November contract lost 12 cents to $26.95.
Crude prices have dropped almost 15 pe rcent since the end of August to their lowest levels in four months as a scare over a summer gasoline crunch in the United States eased and speculators pulled out of the market.
“Besides the extent of the fall, its speed and regularity are somewhat surprising. Over the past two weeks the market has barely had time to reflect on what price would be justified by recent fundamentals,” said Societe Generale in a research note.
Ministers of the Organisation of the Petroleum Exporting Countries are scheduled to meet in Vienna on September 24 to decide whether to alter production. Over the weekend, Venezuela and Algeria were the latest OPEC members to call for the group to leave its production ceiling unchanged at 25.4 million barrels a day, echoing comments in recent weeks from Saudi Arabia, Kuwait, United Arab Emirates and Indonesia. OPEC’s production limits exclude Iraq.
“I think that the September 24 ministerial reunion will maintain the production level at 25.4 for its 10 members to balance the market,” Algerian Oil Minister Chakib Khelil was quoted saying in the El Moudjahid newspaper on Sunday.
Iraq, struggling to revive its oil industry, will send a delegation to the OPEC meeting for the first time since the U.S. invasion in March.
OPEC estimates released on Friday put cartel production at 26.81 million bpd, including output of 1.08 million bpd from Iraq.
It is the first time Iraqi output has topped the million- barrel mark since before the war, but production is still well below pre-war capacity of 2.8 million bpd due largely to sabotage and bombings on its key northern pipeline export system.
David Thurtell, a Sydney-based commodities strategist at Commonwealth Bank of Australia, said it was unlikely that OPEC would change output limits at current prices.
“But if we see
another 40 to 50 cents come off by Wednesday we may see OPEC talk about
possible supply cuts,” Thurtell said. Country's MSMEs contribute Taka 741 billion to GDP ECONOMIC DESK, The Independent The country's micro, small, and medium enterprises (MSMEs) contribute Taka 741 billion equivalent to 20 to 25 per cent to the Gross Domestic Product (GDP). A national private sector survey of enterprises in Bangladesh, which was released yesterday, said that there are approximately six million micro, small, and medium enterprises (MSMEs), which include enterprises with up to 100 workers. International Consulting Group prepared the survey for Department for International Development, USAID, Swiss Agency for Development and Cooperation (SDC) and Swedish International Development Cooperation Agency (SIDA). It said About 31 million people or 40 per cent of the population aged 15 years and older are employed in MSMEs. About three-quarters of MSMEs contribute half or more of the household income in both urban and rural areas, while over three- quarters of MSMEs are located in rural areas. The survey pointed out that the higher income is not surprising since enterprises operate 11 months a year, 28 days per month, and ten hours per day on average. Commerce Minister Amir Khasru Mahmud Chowdhury, British High Commissioner in Bangladesh David Carter, FBCCI President Abdul Awal Mintoo and Survey Team Leader Lisa Daniels spoke on the occasion. Addressing the function, the commerce minister underlined need for more effective role of the financial institutions in the development of MSMEs in the country. He said the entrepreneurs of MSMEs had lesser scope to be heard in the formal business groups, which could have helped them in doing business more successfully. The minister in this context underlined the need for taking measures to phase out underage laborer from the sector in this age of globalisation. The British High Commissioner said the planners and the government should listen to the MSMEs entrepreneurs for attaining the targets of development as the private sector would play a vital role in the march to progress. FBCCI President said that MSMEs must hold the key to nationaldevelopment for a long time to absorb the increasing labour force in the future. The survey was conducted during a 13-week period from March to June 2003 visiting 52,036 household or enterprise sites. At these sites, 10,096 enterprises were enumerated. An enterprise was defined as any income-generating activity that markets at least75 per cent of its product. The objective of the survey was to produce a statistically valid picture of the private sector by providing information on the magnitude, composition, and characteristics of enterprises. Information was also collected to identify constraints, examine business associations, and determine the contribution of enterprises to national income. The survey results show that the industrial structure of the MSME sector in Bangladesh consists of primarily wholesale and retail trade and repairs 40 per cent, production and sale of agricultural goods 22 per cent, and manufacturing 14 per cent. The average age of an MSME is 11 years old and the median age is seven years. About one-third of all MSMEs are less than four years old. The average size of an MSME is five workers, including the proprietor and the median size is two. Thirty-six per cent of MSMEs are operated by the proprietor alone and 83 per cent have one to five workers. More than half of all workers employed in MSMEs are adult paid workers. The survey found that one-third of all proprietors have no formal education and over half of them completed primary school or less. Ten per cent of proprietors reported that they started their enterprise because they had no other alternative. The median annual net profit per proprietor and unpaid worker is Taka 18,000 within MSMEs, after subtracting depreciation. Considering individual sectors, the highest profits are earned in transport and service activities based on actual hours worked. Based on the full-time equivalent measure, the highest profits are earned in health and social work followed by fishing. Thirty-five per cent of MSMEs received credit from informal sources and 35 per cent from formal sources. Non-government organizations were the most common source of formal credit. Women own only six per cent of MSMEs in Bangladesh. Furthermore, they represent only nine per cent of the workforce within MSMEs. Female proprietors tend to be most heavily concentrated in manufacturing of clothing and retail sales. ECONOMIC REPORTER, The Independent Spain and Bangladesh could ensure economic benefits through augmenting mutual trade relations, speakers made the observation at a discussion meeting yesterday. Spain-Bangladesh Chamber of Commerce and Industry (SBCCI) arranged the discussion meeting on 'Spain-Bangladesh Business Development: Present and Future' at a city hotel chaired by President of SBCCI Sharif M Afzal. Editor of The New Age AZM Enayetullah Khan presented the key-note paper at the discussion meeting that was addressed, among others, by Spanish Ambassador in Bangladesh and India Don Rafael Conde D Saro, Executive Chairman of the BEPZA Brig General (retd) Mofizur Rahman and Joint Secretary of the Commerce Ministry Mohammad Abdul Karim. Speaking at the meeting, Saro said that Spain is now keen to invest in Asia though its capital was once concentrated in Latin America and Europe. Referring to the case of Bangladesh, the Spanish Ambassador said the two-way trade between Dhaka and Madrid had increased in the last four years. But, as Saro opined, the flow of Spanish investment to this South Asian country could not expand rather it remained stagnated as investors were unaware of the investment situation of the country. Even Spanish buyers know little about the Bangladeshi products, the Ambassador said, stressing the need for exchange of trade delegation between the two countries. Mofizur Rahman gave a rundown of the facilities at the EPZs offered for the foreign investors, saying that the conditions of the country's zones were better those of other South Asian nations. Bangladeshi export to Spain totalled US$ 132 million while it imported goods worth $20 million from fifth largest economy of Europe in the last in the last fiscal, leaving a trade deficit of $112 million favouring Dhaka. Major Bangladeshi items exported to Spain include apparel products, jute and leather goods. |
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