News Clippings from the Week (November 8)

FBCCI Polls 2012 (The Financial Express, November 08, 2012)

A new group of individuals has announced their candidacy for leadership positions within the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) under the banner of Gonotantrik Porishod.  The group is led by Abu Alam Chowdhury and is supported by former FBCCI chief Annisul Huq.  The main issue for the group is regaining the right to internally elect its own chief, a power that was stripped from the organization in 2002.   Member organizations currently elect some of the FBCCI’s leader positions but not all.  Elections for are to be held on Nov. 24. 

Towel makers go for expansion, target higher exports  (The Daily Star, November 07, 2012)

Industry owners see good prospects for Bangladesh in towel exports. "Presently, around 100 factories, mostly by Bangladeshis, are manufacturing and exporting towels, with towel exports fetching $140 million in fiscal 2011-12." To these entrepreneurs the towel industry offers the same potential as readymade garments.  The industry also benefits from cheap labor but it is less dependent on accessories than the readymade garments industry.

Bangladesh gaining strong position in global IT outsourcing market (The New Age, November 04, 2012)

Bangladesh is gaining a strong position in global IT outsourcing market due to low labor cost, skilled and efficient human resources, and quality output. The head of the industry association BASIS reports that renowned companies are moving towards here with more orders. Industry insiders said the average wage of an outsourced IT sector employee is around $8 per hour in Bangladesh compared to $20 in India and $10 to 15 in the Philippines.  The country is home to some 500 registered IT outsourcing companies that collectively employ 20,000. In addition, there are an estimated 15,000 freelancers in Bangladesh doing outsourced work for technology companies from across the globe.

BRAC puts women in the driving seat (The Daily Star, November 01, 2012)

In collaboration with the government, BRAC is funding and training about 600 poor women to become professional drivers.  The project is not uncontroversial but it represents a new income generating activity for women.  According to one participant, "Village elders declared my family an outcast. They said that a young woman like me should not live alone away from her family and that driving is not for women."  But she responded, “I told my parents everything will be fine if I become financially solvent. Village elders don't give us food when we go hungry." At the BRAC School of Driving, classes include parking, lane discipline, basic vehicle maintenance and practising on a simulator.

Low price: a boon for leather exporters (The Daily Star, November 01, 2012)

This Eid the price of rawhide dropped by 20% due to the fall of demand in the international market. "The low price of rawhide does have a silver lining as it might give exporters a competitive edge in the international market. The leather industry, which is reliant on local hides and skins, has now emerged as the third largest export sector, after garments and jute and jute goods."