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Bangladesh's new government facing fresh challenges
2009-03-18 22:34:16
by Shams Chowdhury
DHAKA, March 18 (Xinhua) -- After overcoming the crucial aftermath of last month's border guard mutiny, Bangladesh's new government led by Prime Minister Sheikh Hasina is facing newer challenges of the impact of the global economic downturn, power shortage and foreign direct investment.
The Feb. 25-26 mutiny staged by members of paramilitary border force Bangladesh Rifle (BDR) at their headquarters in capital Dhaka that left more than 70 people dead had virtually put her new government in tatters.
The mutiny against the commanding army officers had slowed down the administrative functions as the two-month old government was fully occupied to tackle its aftermath of reported grievance in the country's armed forces.
In last few days Hasina has massively reshuffled the civil administration, the police department and the army hierarchy, putting the things in the right track to meet her ambitious election manifesto.
Political analysts say dusts started settling down. Hasina who assumed the office on Jan. 6 now has established her grip over the evolving situation.
But a critical task before Hasina who came to power for the second term after 1996-2001 is to complete the ongoing investigations into the BDR mutiny and bring the killers to justice.
However, apart from the BDR incident, analysts say newer challenges are waiting for the new government as the country has felt pinch of the ongoing global financial meltdown.
The economic downturn has already started whipping the country's manpower export and apparel sector, the country's potential means to earn foreign exchanges.
Last year Bangladesh received record amount of remittance of 9.02 billion U.S. dollars but recruiting agencies here said the remittance, which contribute to 12 percent of GDP, will shrink this year as worker recipient countries stopped recruiting workers in the wake of the economic contraction.
Recently Malaysia has canceled 55,000 visas for Bangladesh workers. Some 400,000 Bangladeshi labors are working in construction, agriculture and service sectors of that country, a major recipient country of Bangladeshi workers.
The garment sector, accounting for more than 76 percent of total export earning, is also receiving less orders from European and American buyers battered by the recession.
President of Bangladesh Garments Manufacturers and Exporters Association Abdus Salam Morshedi said buyers' order has already shrunk by 25 percent following the recession.
To cope with the situation the country's apex trade body Federation of Bangladesh Chambers of Commerce and Industry proposed 60 billion taka (about 857.1 million U.S. dollars) stimulus plans to support the apparel and other sectors facing the impact.
Bangladesh's Finance Minister AMA Muhith recently admitted thatsome export sectors have been hit by the recession. He apprehended "serious problem" at the least for the next two fiscal years (2009-10, 2010-11).
Expressing his concern, the finance minister said "We are in a tight situation for next two years...I'm really anxious about how to move on."
The minister hinted the government is likely to announce a bailout package for the business sector early next month. A high-powered all party task force headed by Muhith will sit on March 24to map out a crisis-shooting plan.
World Bank vice-president for South Asia Isabel Guerrero who came here early this month suggested strengthening the social safety-net program to face the fallout of the global recession.
As summer season is coming, the formidable power crisis has become another challenge to the government, as authorities is seemed unable to meet the demand of power during the upcoming peak season.
According to control room of Power Ministry, the country generates over 3,300 MW electricity on average against a demand for more than 4,500 MW currently. But the situation will obviously worsen in summer.
Hasina's two-and-half-month old government is now also trying to focus on how to tackle unemployment and to bring overseas investment to boost economy and fulfill her ambitious election manifesto.
News Analysis: Bangladesh's new government facing fresh challenges_English_Xinhua
2009-03-18 22:34:16
by Shams Chowdhury
DHAKA, March 18 (Xinhua) -- After overcoming the crucial aftermath of last month's border guard mutiny, Bangladesh's new government led by Prime Minister Sheikh Hasina is facing newer challenges of the impact of the global economic downturn, power shortage and foreign direct investment.
The Feb. 25-26 mutiny staged by members of paramilitary border force Bangladesh Rifle (BDR) at their headquarters in capital Dhaka that left more than 70 people dead had virtually put her new government in tatters.
The mutiny against the commanding army officers had slowed down the administrative functions as the two-month old government was fully occupied to tackle its aftermath of reported grievance in the country's armed forces.
In last few days Hasina has massively reshuffled the civil administration, the police department and the army hierarchy, putting the things in the right track to meet her ambitious election manifesto.
Political analysts say dusts started settling down. Hasina who assumed the office on Jan. 6 now has established her grip over the evolving situation.
But a critical task before Hasina who came to power for the second term after 1996-2001 is to complete the ongoing investigations into the BDR mutiny and bring the killers to justice.
However, apart from the BDR incident, analysts say newer challenges are waiting for the new government as the country has felt pinch of the ongoing global financial meltdown.
The economic downturn has already started whipping the country's manpower export and apparel sector, the country's potential means to earn foreign exchanges.
Last year Bangladesh received record amount of remittance of 9.02 billion U.S. dollars but recruiting agencies here said the remittance, which contribute to 12 percent of GDP, will shrink this year as worker recipient countries stopped recruiting workers in the wake of the economic contraction.
Recently Malaysia has canceled 55,000 visas for Bangladesh workers. Some 400,000 Bangladeshi labors are working in construction, agriculture and service sectors of that country, a major recipient country of Bangladeshi workers.
The garment sector, accounting for more than 76 percent of total export earning, is also receiving less orders from European and American buyers battered by the recession.
President of Bangladesh Garments Manufacturers and Exporters Association Abdus Salam Morshedi said buyers' order has already shrunk by 25 percent following the recession.
To cope with the situation the country's apex trade body Federation of Bangladesh Chambers of Commerce and Industry proposed 60 billion taka (about 857.1 million U.S. dollars) stimulus plans to support the apparel and other sectors facing the impact.
Bangladesh's Finance Minister AMA Muhith recently admitted thatsome export sectors have been hit by the recession. He apprehended "serious problem" at the least for the next two fiscal years (2009-10, 2010-11).
Expressing his concern, the finance minister said "We are in a tight situation for next two years...I'm really anxious about how to move on."
The minister hinted the government is likely to announce a bailout package for the business sector early next month. A high-powered all party task force headed by Muhith will sit on March 24to map out a crisis-shooting plan.
World Bank vice-president for South Asia Isabel Guerrero who came here early this month suggested strengthening the social safety-net program to face the fallout of the global recession.
As summer season is coming, the formidable power crisis has become another challenge to the government, as authorities is seemed unable to meet the demand of power during the upcoming peak season.
According to control room of Power Ministry, the country generates over 3,300 MW electricity on average against a demand for more than 4,500 MW currently. But the situation will obviously worsen in summer.
Hasina's two-and-half-month old government is now also trying to focus on how to tackle unemployment and to bring overseas investment to boost economy and fulfill her ambitious election manifesto.
News Analysis: Bangladesh's new government facing fresh challenges_English_Xinhua