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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?

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.

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.
 

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.

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.

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.

Sri Lanka, you have a right to know!

Idah Z. Pswarayi-Riddihough's picture
Sri Lanka's Right to Information act (RTI) can help citizens hold governments accountable and encourage citizens to participate actively in their democracy.
Sri Lanka's Right to Information act (RTI) can help citizens hold governments accountable and encourage citizens to participate actively in their democracy.


Today, the world marks the International Day for the Universal Access to Information. Fittingly, we in Sri Lanka, celebrate 7 months since the Right to Information (RTI) Bill was enacted.  

The product of a slow and steady reform process, RTI is a milestone in Sri Lanka’s history.

Yet how many citizens know about its benefits?

As open access to information takes international center stage today, I’m hoping Sri Lanka’s Right to Information Bill, one of the world’s most comprehensive, will get the attention it deserves.

There is indeed much to celebrate.

Civil society organizations and private citizens are putting Sri Lanka’s RTI to the test. Diverse requests have been filed, from questions relating to how investments are made for the Employees’ Provident Fund (EPF) to how soil and sand mining permits have been allotted in districts like Gampaha.

Interestingly, people living in rural areas are more aware -- and vocal -- of their rights to know than people in urban areas.

The government is making steady progress. In the last six months, more than 3,000 information officers have been recruited. An independent RTI Commission enforces compliance and acts on those who do not follow the law. If, for example, an information officer refuses to release information pertaining to a citizen’s life, they must provide a valid reason or face legal penalties.

In the next few years, the Sri Lankan bureaucracy faces the huge task of revamping its record management, including its land registration system. This reform is an opportunity to live up to RTI’s ambitions of open governance and help citizens access land title information and records that give them a legal title to their property.

Reforms Sri Lanka needs to boost its economy

Idah Z. Pswarayi-Riddihough's picture
 Joe Qian/World Bank
The Colombo Stock Exchange. Credit: Joe Qian/World Bank

Many Sri Lankans understand the potential benefits of lowering trade costs and making their country more competitive in the global economy. The majority, however, fear increased competition, the unfair advantage of the private sector from abroad and limited skills and innovation to compete.

Yet, Sri Lanka’s aspirations cannot be realized in the current status quo.  

While changes in trade policies and regulations will undeniably improve the lives of most citizens, I’m mindful that some are likely to lose. However, many potential gainers of the reforms who are currently opposed to them are unaware of their benefits.

Implementing smart reforms means that government funds will be used more effectively for the people, improve access to better healthcare, education, basic infrastructure and provide Sri Lankans with opportunities to get more and better jobs. Let me focus on a few reforms that I believe are critical for the country.  First, Sri Lanka needs to seek growth opportunities and foreign investment beyond its borders.    

First, Sri Lanka needs to seek growth opportunities and foreign investment beyond its borders.

Experience shows that no country in the world today has been able to create opportunities for its population entirely within its own geographic boundaries. To succeed in this open environment, Sri Lanka will need to improve its skills base, better understand supply and demand chains as well as produce higher quality goods and services

Experience shows that no country in the world today has been able to create opportunities for its population entirely within its own geographic boundaries. To succeed in this open environment, Sri Lanka will need to improve its skills base, better understand supply and demand chains as well as produce higher quality goods and services.

Towards a cleaner Bangladesh: Safe water, sanitation, and hygiene for all

Qimiao Fan's picture
 
 The World Bank
Bangladesh has made progress in recent years in the field known as WASH -water, sanitation access, and hygiene. Image courtesy: The World Bank

Community-Led Total Sanitation might be the greatest Bangladeshi export you’ve never heard of.  In countries across Asia, Africa and Latin America, a consensus has emerged that the best approach is Community-Led Total Sanitation, which is widely credited with changing people’s behavior around the world to no longer defecate in the open, which has greatly improved global health.

Bangladeshis can take plenty of pride in these far-away accomplishments. That’s because it is Northern Bangladesh - more specifically the Mosmoil village in Rajshahi district - that pioneered this approach seventeen years ago. Its success at home led to its widespread adoption abroad.

Safe drinking water is a right and proper sanitation is dignity of the citizens. Proper management of freshwater ecosystems and access to safe water and sanitation are essential to human health, environmental sustainability and economic prosperity. Water and sanitation are at the core of sustainable development critical to the survival of people and the planet. Goal 6 of Agenda 2030 not only addresses the issues relating to drinking water, sanitation and hygiene, but also the quality and sustainability of water resources worldwide.

The ‘Global Water Supply and Sanitation Assessment’ by World Health Organization (WHO), United Nations Children Fund (UNICEF), Water Supply and Sanitation Collaborative Council (WSSCC) reported that in 2012 about 40% (2.6 billion) of the world’s population was without access to safe water. Approximately 4 billion cases of diarrhea each year causes 2.2 million deaths, and majority of them are children under the age of five. This situation in Bangladesh is also challenging. A study by Water and Sanitation Program (WSP) wing of the World Bank reveals that Bangladesh incurred a loss of Tk295.48 billion in 2010 due to inadequate sanitation, which is 6.3% of the GDP.
 
Indeed, there is much to emulate in Bangladesh’s remarkable progress in recent years in the field known as WASH -water, sanitation access, and hygiene. Today, 98 percent of the population gets drinking water from a technologically improved source – water which comes from a manmade structure– up from 79 percent in 1990.  Bangladesh also largely succeeded in providing access to basic sanitation. It is estimated that only three percent of the population practice open defecation, down from 34 percent in 1990, thanks to behavior change campaigns and the building of many new toilets. 

But, much has yet to be done. Bangladesh has still a long way to go to meet the Sustainable Development Goal (SDG) of providing universal access to clean water and sustainable sanitation by 2030. The World Bank recently completed a study, the WASH Poverty Diagnostic, which examines the remaining challenges in ensuring access to safe water, sanitation, and hygiene. The findings are startling.

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