Bangladesh

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Bangladesh

  1. 1. BANGLADESH<br />Asian Business Country Report<br />
  2. 2. Agenda<br />
  3. 3. Bangladesh<br />History and Country Overview<br />
  4. 4. People’s Republic of Bangladesh<br />
  5. 5. Bangladesh Before<br />
  6. 6. Facts of Bangladesh<br />Official name : People’s Republic of Bangladesh<br />National flag <br />National emblem<br />Capital city : Dhaka <br />Nationality : Bangladeshi<br />Name of currency : Taka (TK)<br />Area : 147570 sq.km<br />
  7. 7. Facts of Bangladesh<br />Boundary: North - India<br /> West - India<br /> South - Bay of Bengal<br />East - India and Myanmar<br />
  8. 8. Divisions<br />
  9. 9. Ethnic groups<br />Bengali 98%, other 2% (includes tribal groups, non-Bengali Muslims) (1998) <br />
  10. 10. Language<br />-Bangla (official, also known as Bengali), English <br />
  11. 11. Religion<br />Muslim 90%, Hindu 9%, other 1% (1998) <br />Source:en.wikipedia.org/wiki/Demographics_of_Bangladesh<br />
  12. 12. Muslim Population<br /> across Bangladesh<br />Hindu Population<br /> across Bangladesh<br />
  13. 13. Bangladesh<br />Geography and Natural Resources<br />
  14. 14. Geographic-- Natural Resource<br /><ul><li> Natural Gas</li></ul>Natural gas - Production(cu m) 2008<br />
  15. 15. Geographic-- Natural Resource<br />Bangladesh Tea<br />Bangladesh Tea Board: To regulate, control and promote the cultivation, sale and export of tea. <br />In Chittagong, Panchagarand Sylhet Districts<br />Global Production of Tea 2006 (Million Kg) <br />
  16. 16. Permanent Crops & Arable Land (Percentage Intensity)<br />Sparsely Vegetated<br />Undetermined (0 - 30)<br />30 - 40<br />40 - 60<br />&gt; 60<br />Water<br />No Data<br />Geographic-- Natural Resource<br />Other Resources<br />Arable Land<br />Timber<br />Coal<br />Leather<br /><ul><li>21.50 million Bovine and 17.50 million Goat and Sheep
  17. 17. Bangladesh produces the world’s finest goatskin of smooth grain pattern.</li></ul>Jute (Natural fiber)<br /><ul><li>Bangladesh has been blessed with the favorable climate and the potentials to be the largest grower and exporter of the best quality jute, the golden fiber. This gives Bangladesh advantage over other jute growers anywhere in the world.</li></li></ul><li>Bangladesh<br />Population and Demographics<br />
  18. 18. Demographic<br /><ul><li>Population: 153,546,896 (July 2008 est.)
  19. 19. Population growth rate: 2.002% (2008 est.)
  20. 20. Population Density: 1,123.5 person/sq km
  21. 21. Thailand #86  127.14 person/sq km
  22. 22. U.S. #172  32.87 person/sq km
  23. 23. Age Structure:
  24. 24. 0-14 years: 33.4% Male 26,364,370
  25. 25. Female 24,859,792
  26. 26. 15-64 years: 63.1% Male 49,412,903
  27. 27. Female 47,468,013
  28. 28. 65 years/over: 3.5% Male 2,912,321
  29. 29. Female 2,529,502
  30. 30. Life Expectancy: 63.21 years – rank #169 (2008 est.)</li></ul>Notice!!! There is a significant decrease in % of people between 0-14 years  Next 15 years, the number of population in Bangladesh is likely to decrease.<br />
  31. 31. Demographic<br />Life Expectancy at birth: 63.21 years – rank #169 (2008 est.)<br />Literacy BangladeshThailand U.S.<br /><ul><li>Total Population 43.1% 92.6% 99%
  32. 32. Male 53.9% 94.9% 99%
  33. 33. Female 31.8% 90.5% 99%</li></ul>Education<br /><ul><li>Education Expenditure
  34. 34. 2.7% of GDP (2005) ---- Thailand (4.2%) ---- U.S. (5.3%)
  35. 35. Primary School: 16,225,658 students
  36. 36. Secondary School: 7,398,552 students
  37. 37. Colleges: 1,367,246 students
  38. 38. Professional Education: 60,043students</li></li></ul><li>Demographic<br />Income<br /><ul><li>Household Income or Consumption
  39. 39. Lowest 10%: 3.7%
  40. 40. Highest 10%: 27.9%
  41. 41. Distribution of Family Income– Gini Index</li></ul>Bangladesh Thailand U.S<br /> 33.2 42 45<br />Labor Force<br /><ul><li>70.86 million</li></ul>Note: Extensive export of labor to Saudi Arabia, Kuwait, UAE, <br /> Oman, Qatar and Malaysia<br /><ul><li>Workers' remittances estimated at $4.8 billion in 2005-2006
  42. 42. By occupation
  43. 43. Agriculture: 63%
  44. 44. Industry: 11%
  45. 45. Services: 26% </li></li></ul><li>Bangladesh<br />Social & Political Environment<br />
  46. 46. Independence<br />Previously known as East Pakistan, the war for independence in 1971 brought about the establishment of People’s Republic of Bangladesh with the help of India.<br />Problems after Independence: famines, natural disasters, prevailing poverty (later tackled with Education and Population policies), political turmoil, and military coups.<br />Restoration of democracy in 1991.<br />Constitution was given in 1992.<br />
  47. 47. Government<br />A parliamentary representative democratic republic.<br />Political crisis during 2006-2008<br />Widespread violence and rioting, taking lives of more than 40 peoople.<br />Current government<br />President: Zillur Rahman.<br />Prime Minister: Sheikh Hasina.<br />Important policies<br />Education<br />Population<br />
  48. 48. Opportunities and Threats<br />Opportunities<br /><ul><li>Foreign Relationships</li></ul>Threats<br /><ul><li>Transparency
  49. 49. Press: Bangladesh’s Freedom of Press ranked at 136 out of 173 nations.
  50. 50. Corruption: Ranked 147 on CPI from 180 countries with the score of 2.1 in 2008.
  51. 51. Political Instability
  52. 52. The 12th highest instability in the world on the Failed States Index (FSI) in 2007.
  53. 53. Economic Freedom
  54. 54. In 2008, Bangladesh ranked 108 out of 141 countries with the score of 5.94.</li></li></ul><li> Social Environment- Poverty<br /><ul><li>Poverty Rate has continued</li></ul> to fall at 1%/year<br /><ul><li>Still far too high, but each 1% is hundreds of thousands of people improvement.
  55. 55. 18% of people in 2002 lived under straw roofs and only 54% had access to safe latrines.
  56. 56. Today, only 7% live under straw roofs and 71% have access to safe latrines.</li></li></ul><li>Climate & Land Usage <br />Urban Drift & Population Density <br />Natural Disasters <br />
  57. 57. Inequality Between Rich and Poor<br />Gini Index of inequality stagnant since 1995 showing a more equal distribution of income.<br />Still score shows large income disparity.<br />Inequality Between Males and Females<br />School enrollment rates, literacy rates, and until recently life expectancy suggests women are marginalized in society.<br />Microfinance and modernization are helping to change this but much work still to be done.<br />Social Environment - Equality<br />
  58. 58. Grameen is a system of companies that originally started offering Micro-Loans to poor people.<br />Today Grameen operates numerous social businesses from education, financial, health care, communication, nutrition, etc… that are owned by the borrowers of Grameen Bank.<br />Much of the improvements in the field of poverty and equality have been attributed to Grameen and Professor Mohammed Yunus who also won the Nobel Peace Prize. <br />Social Environment - Grameen<br />
  59. 59.
  60. 60. Bangladesh<br />Economic Structure & Development<br />
  61. 61. Economic Overview<br /><ul><li>GDP per capita $1700 in 2008
  62. 62. GDP growth rate 5.9%
  63. 63. agriculture: 19.1%
  64. 64. industry: 28.6%
  65. 65. services: 52.3%
  66. 66. Public Dept 43.6% of GDP
  67. 67. Labor Force 70.86 million people
  68. 68. Resource endowment
  69. 69. human resource base
  70. 70. rich agricultural land
  71. 71. relatively abundant water
  72. 72. natural gas</li></li></ul><li>Economy overview:<br />&gt; 1/2 of GDP is generated through the service sector<br />Rice as the single-most-important product. <br />Garment exports, and <br />Remittances from Bangladeshis working overseas, mainly in the Middle East and East Asia<br />workers&apos; remittances estimated at $4.8 billion in 2005-06<br />
  73. 73. LAND USAGE…<br />
  74. 74. BUT…<br />GDP - composition by sector (2008 est.) : <br />
  75. 75. Reasons behind…<br />Climate: tropical; <br /> mild winter (October to March); <br /> hot, humid summer (March to June); <br /> humid, warm rainy monsoon (June to October) <br />Terrain: mostly flat alluvial plain; hilly in southeastern <br />But:<br />Natural hazards: droughts, cyclones; routine floods yearly<br />About a third of this extremely poor country floods annually during the monsoon rainy season, hampering economic development. <br />Soil degradation/erosion; deforestation<br />
  76. 76. Therefore…<br />Agriculture - products:-Rice, jute, tea, wheat, sugarcane, potatoes, tobacco, pulses, oilseeds, spices, fruit; beef, milk, poultry<br />Industries:-cotton textiles, jute, garments, tea processing, paper newsprint, cement, chemical fertilizer, light engineering, sugar <br />Electricity - production:-22.78 billion kWh (2007 est.) <br />Natural gas - production:-15.7 billion cu m (2007 est.)<br />Oil - production:-6,746 bbl/day (2007 est.) <br />
  77. 77. Imports/Exports:<br />Exports:$13.97 billion<br />Exports - commodities:garments, jute and jute goods, leather, frozen fish and seafood <br />Exports - partners:US 23%, Germany 13%, UK 9.1%, France 5.5%, Belgium 4%<br />Imports:$20.17 billion <br />Imports - commodities:machinery and equipment, chemicals, iron and steel, textiles, foodstuffs, petroleum products, cement <br />Imports - partners:China 15%, India 14.3%, Kuwait 8.3%, Singapore 6.2%, Hong Kong 4.2% <br />
  78. 78. Infrastructure<br />
  79. 79. Economic Development<br />Independence in 1971-1990<br />$30 billion in grant aid and loan commitments from foreign donors<br />Large trade deficit, financed through aid receipts and remittances from workers overseas <br />The static economic model- the nationalization of much of the industrial sector resulted in inefficiency and economic stagnation <br />
  80. 80. Economic Development<br />1975<br />Greater scope to private sector, but banking and jute sectors remain under government control <br />Inefficiency in the public sector<br />Resistance developing the country&apos;s richest natural resources<br />Limited capital restrict <br />Mid-1980s<br />Encouraging private enterprise and investment<br />Denationalizing public industries<br />Reinstating budgetary discipline<br />Liberalizing the import<br />
  81. 81. Economic Development<br />1991-1993<br />New economic program -financial sector reform, liberalization, encourage investment <br />Income transfer measures, Food-for-Work<br />Successfully followed an enhanced structural adjustment facility (ESAF) with the International Monetary Fund (IMF) <br /> Failed to follow through on reforms in large part because of domestic political troubles<br />
  82. 82. Economic Development<br />Late 1990s to 2001<br />Exports grew 14% in 1996 <br />GDP growth rose 5.5% from 1996 to 1997<br />Economic slowdown because of flooding in 1998-1999<br />Unprecedented growth in gas production and electricity production sectors<br />Economic policies became more entrenched <br />Drop in foreign investment<br />2002-2003<br />IMF approved 3-year, $490-million plan as part of the Poverty Reduction and Growth Facility (PRGF) <br />World Bank approved $536 million in interest-free loans<br />The privatization of public sector industries has proceeded at a slow pace - worker unrest in affected industries <br />Access to capital is impeded<br />State-owned banks control about three-fourths of deposits and loans, carry classified loan burdens of about 50%.<br />
  83. 83. Economic Development<br />Now<br />poor, overpopulated, and inefficiently-governed nation <br />Half of income from service sectors<br />two-thirds of Bangladeshis are employed in the agriculture sector <br />Garment exports and remittances from Bangladeshis working overseas fuel economic growth<br />Pursued a monetary policy aimed at maintaining high employment<br />Higher inflation<br />A lot of banks, but dominated by 4 Nationalized Commercial Banks <br />Nobel Prize Winning, Garmeen Bank, Specialized micro finance bank <br />
  84. 84. BUSINESS CULTURE<br />Supplement to Economics Section<br />
  85. 85.
  86. 86. General Society<br />Hierarchical society (age & position) <br />Wiser <br />Granted respect<br />The most senior male is expected, by age or position, to make decisions<br />
  87. 87. Communication Styles<br />Relatively implicit/indirect communication<br />long, rich and contextualized sentences (only make sense with body language)<br />Aware: communication styles may be seen as rude and the information provided inadequate. <br />Less personal space: stand close when speaking to someone<br />same gender (otherwise, space increases) <br />touch is common<br />
  88. 88. Meeting & Greeting<br />Relatively formal<br />Proper behaviour is expected<br />Men: a handshake, rather soft (arriving & leaving)<br />Foreign men: nod to a Bangladeshi woman (unless she extends her hand)<br />Addressing men: &quot;Bahadur&quot; (&quot;Sir&quot;), <br />Addressing women: &quot;Begum&quot; (&quot;Madam&quot;)<br />Wait until your counterpart moves to a first name basis before you do so. <br />
  89. 89. Gift Giving Etiquette<br />The importance: the thought rather than the value <br />gifts should be generally reciprocated <br />rude to offer someone a gift that is difficult to reciprocate<br />
  90. 90. Some guidelines :<br />Alcohol<br />Money<br />Non-halal meat<br />White flowers<br />Frangipanis<br />Open gifts in front of the giver<br /><ul><li>Gifts are given with two hands</li></li></ul><li>Business Card Etiquette<br />Exchanged after the initial introduction <br />Educational qualifications are valued: include any university degrees <br />Present your business card with the right hand<br />Treat business cards given to you with respect<br />Study it, comment on it and ideally place it into a business card holder<br />
  91. 91. Business Meetings<br />The place where decisions are disseminated rather than made<br />Usually lead by the most senior present, who sets the agenda, the content, and the pace of the activities<br />Meeting structures: not very linear (an agenda and a starting time = guidelines) <br />Priority: Completing a meeting <br />time may be extended <br />Meetings may begin with some small talk<br />Communication is formal and follows a hierarchical structure. Respect to the most senior person in the group is expected (especially dealing with government officials) <br />
  92. 92. Never let professionalism slip. Casual behavior may be misinterpreted as a lack of respect. <br />Never lose your temper or show emotion. <br />May lead to a loss of face = a loss of dignity & respect. <br />The need to avoid a loss of face is also reflected in communication styles. <br />Re-phrase sentiments: &quot;we will try&quot;, &quot;that may be difficult&quot;, or &quot;we will have to give that some thought&quot; <br />Therefore: ask questions in several ways to be certain<br />Silence is often used as a communication tool. <br />Lack of smiles = demonstrate maturity<br />Business Meetings (cont.)<br />
  93. 93. Bangladesh<br />Current Opportunities<br />
  94. 94. Imagine you are an investor with $1 Million. You have identified 3 potential investment opportunities in Bangladesh.<br />IT/Software Outsourcing<br />Natural Gas Sector<br />Textile Manufacturing<br />Where are you going to invest?<br />Opportunities - Industries<br />
  95. 95. IT/Software<br />Global Recession makes outsourcing<br />to Bangladesh an economic possibility<br />Natural Gas<br />Global non-oil energy demand steadily<br />Increasing, with abundant supplies in Bangladesh<br />Textile Manufacturing<br />New duty free textile agreements increase<br />outreach of Bengali goods except USA<br />Opportunities – Industries<br />17.5%<br /> 11%<br />24.4%<br />
  96. 96. Bangladesh<br />Development Recommendations<br />Development Recommendations<br />
  97. 97. 1) Increase FDI Inflows into Bangladesh<br />2) Pursue Free Trade/Open Economy<br />3) Develop Infrastructure and Disaster Response<br />4) Focus on Educating Workforce & Labour Mobility<br />Development Recommendations<br />
  98. 98. Participation in Regional Organizations (eg: SAARC)<br />Trade Talks with both Developed and Developing Partners (eg: US, India)<br />Spending on Infrastructure, Disaster Response, and Education (eg: WB)<br />Use of NGO’s and Privatization when necessary and appropriate (eg: Grameen)<br />The Role of Government<br />
  99. 99. “Moving up the economic ladder<br />as quickly as possible is the best protection against every form of foreign domination.” <br />– Mohammed Yunus<br />Conclusion<br />
  100. 100. References<br /><ul><li>http://en.wikipedia.org/wiki/Politics_of_Bangladesh
  101. 101. http://en.wikipedia.org/wiki/2006%E2%80%932008_Bangladeshi_political_crisis
  102. 102. Muhammad Yunus – Creating A World Without Poverty
  103. 103. http://news.bbc.co.uk/2/hi/south_asia/6241263.stm
  104. 104. http://en.wikipedia.org/wiki/Human_rights_in_Bangladesh
  105. 105. http://en.wikipedia.org/wiki/Transparency_International
  106. 106. http://en.wikipedia.org/wiki/List_of_countries_by_economic_freedom
  107. 107. http://en.wikipedia.org/wiki/Corruption_Perception_Index#CPI_Ranking_.2820zz.E2.80.932008.29
  108. 108. www.transparency.org/news_room/in_focus/2008/cpi2008/cpi_2008_table
  109. 109. http://en.wikipedia.org/wiki/Reporters_Without_Borders
  110. 110. http://en.wikipedia.org/wiki/Transparency_(humanities)#Politics
  111. 111. http://en.wikipedia.org/wiki/Ease_of_Doing_Business_Index
  112. 112. http://en.wikipedia.org/wiki/List_of_countries_by_Failed_States_Index
  113. 113. http://en.wikipedia.org/wiki/Bangladesh_Liberation_War
  114. 114. http://english.people.com.cn/90001/90778/90858/90863/6598183.html
  115. 115. http://energy.ihs.com/News/published-articles/articles/bangladesh-natural-gas-perspective.htm
  116. 116. http://goliath.ecnext.com/coms2/gi_0199-5878353/PROFILE-BANGLADESH-S-TEXTILE-INDUSTRY.html</li></ul>http://www.photius.com/countries/bangladesh/economy/bangladesh_economy_natural_gas.html<br />http://www.theodora.com/wfbcurrent/bangladesh/index.html<br />http://www.photius.com/rankings/economy/natural_gas_production_2008_0.html<br />http://www.epb.gov.bd/<br />http://www.teaandcoffee.net/0201/tea.htm<br />http://www.thefinancialexpress-bd.info/search_index.php?page=detail_news&news_id=48297<br />http://www.teaboard.gov.bd/<br />http://www.fao.org/countryprofiles/Maps/BGD/12/al/index.html<br />https://www.cia.gov/library/publications/the-world-factbook/flags/bg-flag.html<br />http://www.kwintessential.co.uk/resources/global-etiquette/bangladesh.html<br />http://www.bangladesh.com/culture/<br />

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