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Bicycles can boost Bangladesh's exports

Nadeem Rizwan's picture
Bangladesh is the 2nd largest non-EU exporter of bicycles to the EU and the 8th largest exporter overall
Bicycles are the largest export of Bangladesh’s engineering sector, contributing about 12 percent of engineering exports. Credit: World Bank
This blog is part of a series exploring new sources of competitiveness in Bangladesh

Did you know that Bangladesh is the 2nd largest non-EU exporter of bicycles to the EU and the 8th largest exporter overall?

Bicycles are the largest export of Bangladesh’s engineering sector, contributing about 12 percent of engineering exports.
 
This performance is in large part due to the high anti-dumping duty imposed by the EU against China.
 
Recently, the EU Parliament and the Council agreed on EU Commission’s proposal on a new methodology for calculating anti-dumping on imports from countries with significant market distortions or pervasive state influence on the economy.
 
This decision could mean that the 48.5 percent anti-dumping duty for Chinese bicycles may not end in 2018 as originally intended. China is disputing the EU’s dumping rules at the World Trade Organization.
 
As the global bicycle market is expected to grow to $34.9 billion by 2022, Bangladesh has an opportunity to diversify its exports beyond readymade garments. Presently, Bangladesh is the 2nd largest non-EU exporter of bicycles to the EU and the 8th largest exporter overall.
Bangladesh is the 2nd largest non-EU exporter of bicycles to the EU and the 8th largest exporter overall
EU27 bicycle imports in 2016 (Million $). Bangladesh is the 2nd largest non-EU exporter of bicycles to the EU and the 8th largest exporter overall. Source: UNComtrade through WITS

However, if the EU anti-dumping duty against China is reduced or lifted after 2018, Bangladesh’s price edge might be eroded.
 
Bangladeshi bicycle exporters estimate that without anti-dumping duties, Chinese bicycles could cost at least 10-20 percent less than Bangladeshi bicycles on European markets. And Chinese exporters can ship bicycles to the EU market with 35-50 percent shorter lead times.
 
So, how can Bangladeshi bicycles survive and grow?

ශ්‍රී ලංකාවේ ආනයන සහ අපනයන යෙදෙන්නන්ගේ තොරතුරු දැනගැනීමේ අයිතිය තහවුරු කිරීම

Dinesha Nilakshi Samaranayake's picture

පසුගිය සැප්තැම්බර් මස 28 වෙනිදා ජාත්‍යන්තර තොරතුරු දැනගැනීමේ දිනය වශයෙන් රජය විසින් ප්‍රකාශයට පත් කරනු ලැබුවා. විශ්වයේම තොරතුරු ඇසුරු සැණකින් අතේ තිබෙන ජංගම දුරකථනය හරහා ලබාගත හැකි යුගයක තොරතුරු දැනගැනීමේ අයිතිය තහවුරු කරන්න වෙනම දිනයක් අවශ්‍ය දැයි ඔබට සිතෙන්නටත් පුළුවන්. නමුත් දිනපතා සිය භාණ්ඩ රේගුවෙන් නිදහස් කරගැනීමට පොර බදන කුඩා හෝ මධ්‍ය පරිමාණ වෙළඳ  මහතකුගෙන් මේ ගැන විමසුවොත්, සමහර විට ඔබේ එම අදහස වෙනස් වේවි .



කොළඹ, ගාලු පාරේ, සිය කාර්යාලයේ සිට ආනයන-අපනයන වෙළඳාම පවත්වාගෙන යන චමිල් පෙරේරාට තමන්ගේ ආනයන භාණ්ඩ රේගුවෙන් නිදහස් කරගැනීමේ ක්‍රියාවලිය ප්‍ර‍තිවාදියෙකු සමඟ පොර බැදීමකට දෙවැනි නැහැ. චමිල් වගේ බොහෝ පිරිස් තමන්ගේ වෙළඳාම් කටයුතු හරහා රටට ආදායමක් උපදවා දෙන අතරම නව රැකියා අවස්ථා උත්පාදනයටත් දායකත්වය ලබා දෙනවා. නමුත් ඉහත කී ක්‍රියාවලියේ දී රේගු කටයුතු ගැන හරි තොරතුරු ලබා ගැනීමට තිබෙන නොහැකියාව වගේම ක්‍රියාවලියේ ඇති සංකීර්ණ බව නිසා විශාල ලෙස කාලය හා මුදල් නාස්ති වීමකට ඔවුන් මුහුණ දෙනවා.

Trade facilitation reform in Sri Lanka can drive a change in culture

Marcus Bartley Johns's picture

Two years ago, we started counting how many Sri Lankan agencies were involved in trade facilitation processes such as issuing permits and managing the movement of goods in and out of the country.  We counted at least 22 agencies in this assessment, and today, the Department of Commerce estimates that number at least 34 agencies are involved in issuing permits or publishing regulations that affect trade.
 
We know trade is critical to Sri Lanka’s future and that there are strong links between trade, economic growth and poverty reduction.

However, the trading community reports a lack of transparency, confusion around rules and regulations, poor coordination between various ministries and a dearth of critical infrastructure—you can see why trade has suffered in Sri Lanka.

 

When the World Bank evaluates a country’s performance in critical rankings like Doing Business, the ease of trading across borders is one of the benchmarks we consider. In this, and in other lists like the Logistics Performance Index, Sri Lanka is underperforming compared with its potential. Here, the average trade transaction involves over 30 different parties with different objectives, incentives, competence and constituencies they answer to, and up to 200 data elements, many of which are repeated multiple times. This environment constrains the growth of Sri Lanka’s private sector, especially SMEs.  
 
But now for the good news. By ratifying the World Trade Organisation Trade Facilitation Agreement, Sri Lanka has signalled its determination to intensify reform efforts.

Towards a clean India

Guangzhe CHEN's picture

When Prime Minister Narendra Modi launched the Swachh Bharat Mission in 2014, it marked the beginning of the world’s largest ever sanitation drive. Now, a 2017 survey by the Quality Council of India finds that access to toilets by rural households has increased to 62.45 per cent, and that 91 per cent of those who have a toilet, use it. Given India’s size and diversity, it is no surprise that implementation varies widely across states. Even so, the fact that almost every Indian now has sanitation on the mind is a victory by itself.

 Guy Stubbs

Achieving a task of this magnitude will not be easy. Bangladesh took 15 years to become open defecation free (ODF), while Thailand took 40 years to do so. Meeting sanitation targets is not a one-off event. Changing centuries-old habits of open defecation is a complex and long-term undertaking.

Securing a prosperous future for Afghanistan amidst challenges

Christina Wieser's picture
Also available in: دری | پښتو
 Rumi Consultancy/ World Bank
According to a recent report, just over half of Afghan children attend primary school and most of them were boys. Photo Credit: Rumi Consultancy/ World Bank


Fueled by unprecedented levels of aid, literacy, school enrollment, and access to basic services, Afghanistan made tremendous progress between 2007–08 and 2011–12. However, declining aid and increasing conflict during the period between 2011–12 and 2013–14 slowed progress, especially on education and maternal health outcomes, as documented by our recent World Bank report, the “Afghanistan Poverty Status Update: Progress at Risk.”

In this blog, we look at how Afghanistan has performed across several important development indicators in the last few years.

د شته ستونزو سربېره؛ آیا په افغانستان کې د سوکاله راتلونکي رامنځته کېدل امکان لري؟

Christina Wieser's picture
Also available in: English | دری
 Rumi Consultancy/ World Bank
د وروستۍ رپوټ پر بنسټ، یوازې څه باندې نیمایي په شرایطو برابر ماشومان لومړني ښوونځي ته ځي، چې البته ډیرۍ شمیر یی هلکان دي.  انځور: د رومي مشورتي شرکت/ نړیوال بانک

په بې ساري ډول افغانستان سره د نړیوالو مرستو کولو ته په کتو، د ۲۰۰۷ – ۲۰۰۸ کلونو او بیا په ۲۰۱۱- ۲۰۱۲ زیږدیز کلونو پر مهال د سواد کچه، په ښوونځیو کې د زدکوونکو شمولیت یا نوم لیکنه او بنسټیزو خدمتونو ته لاسرسی په هر اړخیز او پراخ ډول بدلون موندلی. خو د پرمختګونو سره سره، د نړیوال بانک وروستی راپور، چې  د "په افغانستان کې د فقر او بیوزلۍ د حالت تحلیلي رپوټ: له خطر سره مخامخ پرمختګ"، تر سرلیک لاندې بشپړ شو؛ د دې ښکارندوي کوي، چې په ۲۰۱۱ – ۲۰۱۲ او ۲۰۱۳-۲۰۱۴ کلونو ترمنځ د مرستو کمښت او د نا امنیو زیاتېدل، په افغانستان کې د پرمختګ او ودې مسیر یې پڅ کړی دی، څرنګه، چې د پوهنې او د مور او ماشوم د مړینې کچې په اړه، د اندیښنې وړ راپور وړاندې شوی دی.

په دې ځای کې هڅه کیږي، څو په افغانستان کې په څو وروستیو کلونو کې د یو شمېر ځانګړتیاوو ته په کتو د پرمختګ څرنګوالی وڅیړو.
 

علی الرغم چالشهای موجود، ایا تحکیم اینده مرفع در افغانستان ممکن است؟

Christina Wieser's picture
Also available in: English | پښتو
 Rumi Consultancy/ World Bank
براساس اخرین گزارش، فقط بیشتراز نصف اطفال واجد شرایط به مکتب ابتدایه میروند که البته اکثر انها را بچه ها تشکیل میدهد. عکس: شرکت مشورتی رومی/بانک جهانی


با توجه به سرازیر شدن میزان بی سابقه کمک های مالی بین المللی، میزان سطح سواد، شمولیت در مکاتب و دسترسی به خدمات اساسی در افغانستان در جریان سالهای ۲۰۰۷ - ۲۰۰۸ و سپس ۲۰۱۱ - ۲۰۱۲  به طور همه جانبه و گسترده متحول گردیده است. اما وجود پیشرفتها، یافته های آخرین گزارش بانک جهانی، "وضعیت فقر در افغانستان، پیشرفت در معرض تهدید"، حاکی از آنست که کاهش کمک ها و افزایش میزان نا امنی ها در سالهای ۲۰۱۱ - ۲۰۱۲ و ۲۰۱۳ – ۲۰۱۴ میلادی، سیر رشد و پیشرفت در افغانستان را به شدت بطی ساخته، طوریکه در بخش های معارف و همچنان میزان مرگ و میر مادران وضعیت خیلی ها ناگوار گزارش داده شده است.

در این جا سعی مینمایم، تا چگونگی پیشرفت ها در افغانستان را پیرامون چندین شاخص های عمده انکشافی در جریان چند سال اخیر مورد مطالعه قرار دهم.
 

Six reasons why Sri Lanka needs to boost its ailing private sector

Tatiana Nenova's picture
 Joe Qian / World Bank
A view of the business district in Colombo. Credit: Joe Qian / World Bank

Sri Lanka experienced strong growth at the end of its 26-year conflict. This was to be expected as post-war reconstruction tends to bring new hope and energy to a country.
 
And Sri Lanka has done well—5 percent growth is nothing to scoff at.  
 
However, Sri Lanka needs to create an environment that fosters private-sector growth and creates more and better jobs. To that end, the country should address these 6 pressing challenges:

1. The easy economic wins are almost exhausted

For a long time, the public-sector has been pouring funds into everything from infrastructure to healthcare. Unfortunately, Sri Lanka’s public sector is facing serious budget constraints. The island’s tax to growth domestic product (GDP) ratio is one of the lowest in the world, falling from 24.2% in 1978 to 10.1% in 2014. Sri Lanka should look for more sustainable sources of growth. As in many other countries, the answer lies with the private sector.
 
2. Sri Lanka has isolated itself from global and regional value chains 

Over the past decades, Sri Lanka has lost its trade competitiveness. As illustrated in the graph below, Sri Lanka outperformed Vietnam in the early 1990s on how much of its trade contributed to its growth domestic product. Vietnam has now overtaken Sri Lanka where trade has been harmed by high tariffs and para-tariffs and trade interventions on agriculture.


Sri Lanka dropped down by 14 notches to the 85th position out of 137 in the recent  Global Competitiveness Index.
           
3. The system inhibits private sector growth

Sri Lanka’s private sector is ailing. Sri Lankan companies are entrepreneurial and the country’s young people are smart, inquisitive, and dynamic. Yet, this does not translate into a vibrant private sector. Instead, public enterprises are the ones carrying the whole weight of development in this country.
 
The question is, why is the private sector not shouldering its burden of growth?


From the chart above, you can see how difficult it is to set up and operate a business in Sri Lanka. From paying taxes to enforcing contracts to registering property, entrepreneurs have the deck stacked against them.
 
Trading across borders is particularly challenging for Sri Lankan businesses. Trade facilitation is inadequate to the point of stunting growth and linkages to regional value chains. The chart explains just why Sri Lanka is considered one of the hardest countries in the world to run a trading business. Compare it to Singapore–you could even import a live tiger there without a problem.

Joining forces to maximize resources for Bhutan’s citizens

Savinay Grover's picture
Public financial management signing
The Multi-Donor fund for Bhutan's Public Financial Management was launched September 21st in Thimphu

Several years ago, a newspaper cartoon in a neighboring country caught everyone’s attention when it depicted the government machinery as a big pipe in which lots of water was being poured from one side as taxpayer’s money and only a drop reached the poor on the other end. The water, representing the funds were being lost due to holes in the pipe. The holes were depicted as inefficiency, wastage, corruption etc. Globally, governments lose trillions of dollars due to various inefficiencies, and lack of proper controls and oversight. Citizens suffer as they do not receive the services that they are promised.

Bhutan provides lots of attention to good governance, which is also one of the pillars of Gross National Happiness. Public Financial Management (PFM) is an important element of good governance and delivering high quality of services to citizens as it’s comprised of budgeting, revenue, procurement, accounting and reporting, internal controls and institutional oversight. Sound PFM systems play an important role in strengthening the efficiency, accountability and transparency of the Government systems. Every dollar, every Ngultrum saved through sound PFM systems mean that more resources are available for better schools, hospitals, roads, and other services.

Bangladesh corridor vital to India’s ‘Act East’ policy

Sanjay Kathuria's picture
India-Bangladesh land border crossing, Photo by Sanjay Kathuria
India-Bangladesh land border crossing. Credit: Sanjay Kathuria

Deepening connectivity and economic linkages between India and Bangladesh will be critical for the success of India’s ‘Act East’ policy.

Here are five priority areas that have the potential to change the economy of Northeast India:

1. Transport Connectivity

After 1947, Northeast (NE) India has had to access the rest of India largely via the “Chicken’s Neck” near Siliguri, greatly increasing travel times. Traders travel 1600 km from Agartala (Tripura) to Kolkata (West Bengal) via Siliguri to access Kolkata port. Instead, they can travel less than 600 kms to reach the same destination via Bangladesh, or even better, travel only 200 km to access the nearby port of Chittagong in Bangladesh.

This is set to change as close cooperation between Bangladesh and India (including various ongoing initiatives such as the transshipment of Indian goods through Bangladesh’s Ashuganj port to Northeast India, expanding of rail links within Northeast India and between the two countries, the BBIN Motor Vehicles Agreement) can dramatically reduce the cost of transport between Northeast India and the rest of India.

The resultant decline in prices of goods and services can have a strong impact on consumer welfare and poverty reduction in the Northeast. Such cooperation also opens up several additional possibilities of linking India with ASEAN via Myanmar.

Moving forward, expanding direct connectivity between NE India and the rest of India via Bangladesh, while giving Bangladesh similar access to Nepal and Bhutan via India, is critical.

2. Digital Connectivity

Broadband connectivity of 10 gbps is now being provided from Bangladesh’s Cox’s Bazar to Tripura and beyond, to help improve the speed and reliability of internet access in NE India. Bangladesh has the capacity to provide more.

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