Weekly News Clippings 25 April 2013
The Savar tragedy is yet another blow for the country’s
readymade garment (RMG) industry which is still recovering from the aftermath
of the Tazreen disaster, said economists and garment exporters. With the
numbers expected to rise, over 100 people, most of them garment workers, were
killed and 500 were injured when a nine-storied building housing five garment
factories and other shops collapsed on April 24. Locals alleged that the owner did
not cordon off the building even after engineers had ordered the building to be
evacuated on Tuesday after cracks developed in the building earlier that day.
The apparel factory owners also ignored the advice and kept their units running.
Apparel workers alleged that the structure of the building was so frail that it
used to shake even when a generator ran. The RMG sector, which has been under
severe criticism and scrutiny from international community and buyers for the
last few years for lacking workplace safety, came under more pressure after 112
workers were killed in a devastating fire at Tazreen factory in November, 2012.
(This is an evolving story and updates are available
through any of the major news outlets.)
The government has assured the United States Trade
Representative (USTR) of strengthening its monitoring of working conditions in
factories. With a promise to comply with labour rights and safety at factories,
the government also said that it would increase the number of factory inspector
post to 848 from the existing 183 and improve vigilance against rights
violations at factories, especially in the garment sector. At present, the
Department of Inspection for Factories and Establishments has only 90 factory
inspectors despite 183 approved posts to monitor the working conditions. To
retain the Generalized System of Preferences in the US market the government
assured that the draft of Occupational Health and Safety Policy, which was
scheduled to be placed before the cabinet by June 30 this year for approval, is
in its final stage.
The National Board of Revenue has termed the government’s revenue
collection target for the upcoming 2013-2014 financial year unrealistic and
unachievable and recommended to bring it down. According to the NBR chairman, it
will be impossible for the revenue board to achieve the target set by the
government in the current political unrest and downtrend in macroeconomic
situation. At the Sixth Five-Year Plan,
the government had set a revenue target for the NBR at Tk 1,36,000 crore with
21 per cent growth over the previous year but the NBR said they could hardly
achieve a target of Tk 1,25,000 crore, or 13 per cent growth.
Producing quality goods and complying with the laws can
strengthen the export prospects for Bangladesh
industries in the international markets, according to speakers at a seminar on
“Promotion and strengthening of export prospects for Bangladesh-made products
in the US
and EU markets”. Sourcing at MAGIC organised the seminar.
Bangladesh retains its position as the seventh most
remittance-earning country in 2012. According to a World Bank’s Migration and
Development Brief 2013 released on Friday, the total inward migrant remittance
to the country was Tk 1,12,000 crore (i.e. $14 billion) last year. In 2011, the amount was Tk 96,000
crore (i.e. $12 billion). India remains the largest recipient of migrant
remittances with $69 billion closely followed by China.
Energy experts at a roundtable on “Nuclear power in
Bangladesh: prospects and concerns” have endorsed the government plan for
nuclear power plants to meet the growing energy demand but warned of the safety
issues, as well. They emphasized the importance of trained and competent
technical manpower to operate nuclear reactors and ensure their safety.
The government has recently signed an agreement with Russia to build a 2,000-MW nuclear
power plant. Bangladesh
plans to produce 2,000 megawatt of electricity using nuclear energy by 2023 to
meet the demand for 21,993MW and another 4,000MW by 2030 to meet the demand for
33,708MW.
The government’s move to construct the Padma Bridge
with its own fund may eat up a giant share of the next budget creating resource
constraints for many important projects in the health, education sector and
social security sectors. The local think tank, Centre for Policy Dialogue (CPD)
said that the government “should be aware of its ambitious targets and should
present an austere, conservative, compromising and careful budget for the next
fiscal year." The government plans
to allocate Tk 68.52 billion in the next fiscal year's annual development
programme (ADP) for the Padma
Bridge project.
The World Bank has banned the Canadian engineering firm
SNC-Lavalin Inc from taking part in any of its projects for the next 10 years.
According to a statement by The World Bank (WB), the firm has been linked to
corruption in a number of WB-funded projects including the Padma bridge
construction and a rural electrification project in Cambodia.
Bangladesh economy would grow by 6.0 percent in the
outgoing fiscal year, ending in June, which is lower than the government's
target of 7.2 percent. According to the latest report of the Economic and
Social Commission for Asia and the Pacific
(ESCAP), political instability hampered production and transportation and
eventually ate up economic prospects. The ESCAP in its report commented that
although the growth would be lower than the initial target, it would be in line
with the growth performance in the recent years. Bangladesh obtained 6.3 per cent
growth in last fiscal year and 6.7 per cent in 2010-11.
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