G20 Puts Italy Under Watch

G20 puts Italy under watch, but no new aid for eurozone

Leaders of the world's top economic powers Friday pushed Europe in to acting to cease France following Greece in to a debt crisis, but failed to come up with new money to boost the IMF war chest.


While the G20 summit agreed in principle to increase IMF funding, the leaders did not settle on any exact figure or timetable, kicking the issue down the road. Financial markets were unimpressed.


Nor was there any let-up in pressure on debt-laden Greece, whose ongoing political & economic crisis still hung heavily over Cannes' rain-lashed seafront summit venue, as an example of the threat facing France.


The risk premium on Italian bonds shot up to a brand spanking new record & eurozone stock markets tumbled, with London's FTSE-100 index closing down 0.33 percent, Paris' CAC-40 down by two.25 percent & the Frankfurt DAX by two.72.


"Put basically, the world faces challenges that put our economic recovery in danger," said US President Barack Obama, reflecting concerns Europe has failed to get to grips with its sovereign debt debacle.


"With respect to Europe, they came to Cannes to discuss with our European friends how they will move forward & build on the plan they agreed to last week to resolve this crisis."

Bangladesh Fund

Bangladesh Fund's public shares have received huge local and foreign responses, the Investment Corporation of Bangladesh (ICB) says.

ICB managing director Mohammad Fayekuzzaman told bdnews24.com on Saturday, "I went abroad and talked to many non-resident Bangladeshis. Besides those, I also talked to many people and organisations in the country and got huge responses on this fund."

The sale of public shares worth Tk 35 billion might start from Oct 10, Fayekuzzaman said.

State-run ICB announced on Mar 6 the creation of this Tk 50 billion syndicated fund as part of measures to give the share market a shot in the arm, which has been reeling from repeated shocks.

Eight entrepreneurs of the fund had already pumped in Tk 15 billion and the rest will be collected from the market.

Earlier he told journalists on Sept 19, "We expect to start selling the public shares of Bangladesh Fund from Oct 2."

When asked about the rescheduling of the issue date, he said, "We are planning to inaugurate the sale of the shares in a big way. So we deferred the opening date."

"We plan to invest the entire fund of worth Tk 35 billion in the stock market," he said.

Besides ICB, the other co-sponsors of the fund are the four state-owned banks (Sonali, Rupali, Agrani and Janata), and Sadharan Bima Corporation, Jiban Bima Corporation and Bangladesh Development Bank Limited.

Fayekuzzaman said, "Almost all of the entrepreneurial part of the contingency fund—Tk 15 billion—has already been invested in the stock market." 

Tim Cook’s email to Apple employees

Tim Cook as new CEO of Apple, Steave Jobs resigns

Team:

Ars Technica has received what they feel confident is an email from new Apple CEO Tim Cook to all Apple employees. In it, Cook addresses his new role, and his confidence in Apple and his team going forward.

I am looking forward to the amazing opportunity of serving as CEO of the most innovative company in the world. Joining Apple was the best decision I’ve ever made and it’s been the privilege of a lifetime to work for Apple and Steve for over 13 years. I share Steve’s optimism for Apple’s bright future.
Steve has been an incredible leader and mentor to me, as well as to the entire executive team and our amazing employees. We are really looking forward to Steve’s ongoing guidance and inspiration as our Chairman.
I want you to be confident that Apple is not going to change. I cherish and celebrate Apple’s unique principles and values. Steve built a company and culture that is unlike any other in the world and we are going to stay true to that—it is in our DNA. We are going to continue to make the best products in the world that delight our customers and make our employees incredibly proud of what they do.
I love Apple and I am looking forward to diving into my new role. All of the incredible support from the Board, the executive team and many of you has been inspiring. I am confident our best years lie ahead of us and that together we will continue to make Apple the magical place that it is.
Tim

Social business: The new economic concept

Social business: The new economic concept 

Traditional business operating in capitalist economy, teaches how to maximise profit, which means how to be selfish. On the other hand, social business teaches how to solve various social problems in a business way with a very minimum profit, which means how to be selfless. Today's business world has an ever-changing phenomenon. But many of us are not always ready to accept these changes even if they are positive. In this ever-changing business world, many economic paradigms emerge, evolve and disappear with the pace of time. But 'Social Business' is such a concept which has got huge attention worldwide due to its unique character of gaining profit, expanding business and solving social problems simultaneously. This new economic paradigm was introduced and developed by Nobel Peace Prize winner Professor Muhammad Yunus. In his book "Creating a World Without Poverty: Social Business and the Future of Capitalism" (2008), he introduced this concept for the very first time. Then in 2010, in another book "Building Social Business: The New Kind of Capitalism That Serves Humanity's Most Pressing Needs", he has shown the social business model in detail.

Social business is a cause-driven business. In a social business, the investors/owners can gradually recoup the money invested, but cannot take any dividend beyond that point. Purpose of the investment is purely to achieve one or more social objectives through the operation of the company; no personal gain is desired by the investors. Profits are used in a manner in which they may expand the company's reach and improve the product or service to a greater extent. The company must cover all costs and make profit, at the same time achieve the social objectives, such as, healthcare, housing, and financial services for the poor, nutrition for malnourished children, providing safe drinking water, introducing renewable energy, etc. in a business way.

There are two basic types of social business. In the first method social business focuses on providing a product and/or service with a specific social, ethical or environmental goal. A prominent example is Grameen Danone. The other type social business is a profit-oriented business that is owned by the poor or other underprivileged parts of the society, who can gain through receiving direct dividends or by indirect benefits. Grameen Bank, being owned by the poor, is the prime example of this type.

Many of us may be confused with other closely related terms, like Non-profitorganisations and non-government organisations (NGOs). Theseorganisations mostly depend on donations and charity funds. They do not have any investor or owner. This is why these organisations are not sustainable. On the other hand social business is sustainable and can be expanded by itself, because money or capital invested here will be recycled in a continuous manner.

Social Entrepreneurship is the work of social entrepreneurs. A social entrepreneur recognises a social problem and uses entrepreneurial principles to organise, create and manage a venture to achieve social change. Social entrepreneurs are most commonly associated with the voluntary and not-for-profit sectors. So, the basic difference between social entrepreneurship and social business lies in its profit motive. Social business is allowed to earn a minimum profit after covering production and operating cost -- with the condition that the profit will stay with the company and will be used in expanding social benefits it provides.

Corporate social responsibility (CSR) is a form of corporate self-regulation integrated into a business model. The goal of CSR is to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public. To be very frank, CSR is a type of indirect advertisement done by the profit orientedorganisations with a view to creating a favourable image in the society.

Seven Principles of Social Business:

Prof Muhammad Yunus and the co-founder of Grameen Creative Lab

Hans Reitz developed seven principles of business objective. The objectives are overcoming poverty, or problems which threaten people and society; not profit maximisation; secondly, financial and economic sustainability. The third objective is that investors get back their investment amount only, no dividend is given beyond investment money; fourthly when investment amount is paid back, company profit stays with the company for expansion and improvement; fifthly environmentally conscious; sixthly, workforce gets market wage with better working conditions; and finally, …do it with joy.

Social Business and the Millennium Development Goals (MDGs): The eight goals set by the United Nations are: (1) eradication of extreme poverty and hunger, (2) achievement of universal primary education, (3)promoting gender equality and empowering women, (4)reduce child mortality, (5) improve maternal health; (6) combat HIV / AIDS, malaria and other diseases; (7) ensure environmental sustainability, and (8) develop a global partnership for development.

Social businesses operating in Bangladesh; and initiated jointly by Grameen and some other multinational organisations will give a clear understanding how social business will help us achieve the MDGs.

Grameen Danone: Grameen and Group Danone went into a joint venture to create a yogurt fortified with micro-nutrients to decrease malnutrition for the children of Bangladesh. The yogurt is sold in a very affordable price for poor and is produced with solar and bio gas energy and is served in environmentally friendly packaging. This initiative is serving goals 1, 4 and 7 at the same time. 

Grameen Veolia Water Ltd: Due to geological reasons many of our groundwater source has been found to be contaminated with arsenic, very often at such levels that make it a heath hazard. Today, more than 30 million Bangladeshis have fallen victims to chronic arsenic poisoning and some have even died. Grameen Veolia, a joint venture between Grameen Health Care Services and Veolia Water AIM, has established a number of water treatment plants in some poorest villages in the center and south of Bangladesh. According to the social business model, drinking water will be sold at factory gate at Tk 1.0 per 10 litres. If implemented properly, this initiative will serve the Goals 4, 5 and 7.

Grameen BASF: Grameen and German company BASF went into joint venturebecause there are areas in Bangladesh where there is a high risk of malaria. The product manufactured is a mosquito net to protect against malaria. Half a million nets have already been produced. The idea of the joint venture was to develop affordable products for the poor that could protect them from deadly diseases. This social business is serving Goal number 6.

Grameen Intel: It wants to take Information Technology (IT) to the lower income people to improve the lives of people. Currently it is working on two basic streams: the first one is providing maternal health care to rural women which includes periodic check-up, diagnostics services and providing other necessary guidelines during pregnancy. The second one is providing agricultural support to the poor farmers which include soil testing, providing information to select appropriate fertiliser. This is clearly serving Goals 1and 5.

Grameen GC Eye Care Hospital: In 2001, as a social business Grameen Bank undertook the Prevention of Cataract Blindness Project, which has now become the Grameen Green Children Eye Care Hospital in Bogra. A second Eye Care Hospital has now been set up in Barisal, in southern Bangladesh, which began operating in April 2009. The Grameen Green Children Eye Hospital projected to perform 50,000 eye examinations and 10,000 cataract operations annually. 

So far we have seen what social business actually is, how it operates and how a developing country like Bangladesh can achieve MDGs through social business. Every idea no matter how noble it is may have some criticisms. But critics should deliver them in a constructive manner, because "the more criticisms come forward the more opportunity for your idea to be stronger." But unfortunately some of our politicians and so called intellectuals criticise the concepts of micro credit and social business without knowing what actually they are. Prof Yunus is thus being criticised without being understood. There is a proverb 'A prophet is not recognised in his own land'. Unfortunately this is happening with Prof. Muhammad Yunus. 

Md Nazmul Hossain

Lecturer of the Department of Marketing,
University of Dhaka
email: nhossain01@yahoo.com

Libyan rebels say military chief killed

Libyan rebels military chief killed

Libya's rebels say their military chief was shot dead in an incident that remains shrouded in mystery and may point to deep divisions within the movement trying to oust Muammar Gaddafi.


The killing, announced late on Thursday, came as the rebels launched an offensive in the west and won further international recognition, which they hope to translate into access to billions of dollars in frozen funds.


The rebels said Abdel Fattah Younes, who was for years at the heart of the Gaddafi government before defecting to become the military leader in the rebel Transitional National Council (TNC) in February, was shot dead by assailants after being summoned back from the battlefield.


After a day of rumors, rebel leader Mustafa Abdel Jalil said Younes and two bodyguards had been killed before he could make a requested appearance before a rebel judicial committee investigating military issues.


It was not clear where the attack took place. Adding to the confusion, Jalil said the bodies were yet to be found.


Younes was not trusted by all of the rebel leadership due to his previous role in cracking down on dissidents.


But his death is likely to be a severe blow to a movement that has won the backing of some 30 nations but is laboring to make progress on the battlefield.


"A lot of the members of the TNC were Gaddafi loyalists for a very long time. They were in his inner circle and joined the TNC at a later stage," said Geoff Porter from North Africa Risk Consulting.


"(The killing) is indicative of schisms that have been appearing within the TNC over the last few months ... We might be seeing the most egregious examples of the divisions between the former regime members and the original rebels," he added.


The rebels claimed to have seized several towns in the Western Mountains on Thursday but are yet to make a serious breakthrough. With prospects fading of a swift negotiated settlement, both sides seem prepared for the five-month civil war to grind on into the Muslim holy month of Ramadan in August.


A rebel official said no deal was worth talking about unless it meant Gaddafi and his powerful sons left Libya, while the veteran leader vowed to fight on "until victory, until martyrdom."


Soon after Jalil's announcement, gunmen entered the grounds of the hotel where he was speaking and fired shots in the air, a Reuters reporter said. No one was hurt
.


At least four explosions rocked the center of Tripoli on Thursday evening as airplanes were heard overhead. The city has come under frequent NATO bombing since Western nations intervened on the side of the rebels in March under a United Nations mandate to prevent Gaddafi's forces from killing civilians.


The killing of Younes, who was involved in the 1969 coup that brought Gaddafi to power and then became his interior minister, came after the rebels attacked Ghezaia, a town near the Tunisian border held by Gaddafi throughout the war.


By late afternoon, the rebels said they had taken control of the town, from which Gaddafi forces had controlled an area of the plains below the mountains.


"Gaddafi's forces left the areas when the attack started," said rebel fighter Ali Shalback. "They fled toward the Tunisian border and other areas."


Reuters could not go to Ghezaia to confirm the report, as rebels said the area around the town could be mined. But looking through binoculars from a rebel-held ridge near Nalut, reporters could see no sign of Gaddafi's forces in Ghezaia.


Juma Ibrahim, a rebel commander in western mountains, told Reuters by phone from the town of Zintan that Takut and Um al Far had also been taken in the day's offensive.


Rebels have taken swathes of Libya since rising up to end Gaddafi's 41-year rule in the oil-producing north African state.


They hold northeast Libya including their stronghold Benghazi; the western city of Misrata; and much of the Western Mountains, their closest territory to the capital.


Yet they remain poorly armed and often disorganized.


"We can beat Gaddafi now, we have captured more weapons from the Libyan army, mostly rockets and AK-47s," said Mohammed Ahmed, 20, a market trader turned fighter.


STALEMATE
The fighting has led to a stalemate in a conflict that Gaddafi has weathered for five months, despite rebel gains, mainly in the east, and hundreds of NATO air raids on his forces and military infrastructure.


A recent flurry of diplomatic activity has yielded little, with the rebels insisting Gaddafi step down as a first step and his government saying his role is non-negotiable.


Western suggestions that Gaddafi might be able to stay in Libya after ceding power appeared to fall on deaf ears.


UN envoy Abdel Elah al-Khatib visited both sides this week with plans for a ceasefire and a power-sharing government that excludes Gaddafi, but won no visible result.


The rebels said any deal that did not envisage Gaddafi and his sons leaving the country was "not worth talking about" while the Libyan leader appeared defiant on Wednesday, urging rebels to lay down their arms or suffer an ugly death.


At a briefing to the UN Security Council in New York, Lynn Pascoe, who heads the body's political department, said both sides had been posturing since discussions began, and added:


"Both sides are willing to talk, but they are still emphasizing maximum demands at this point, and patience is clearly required before detailed discussions can begin."

MONEY

The rebels received a further boost on Thursday when Portugal followed Britain in recognizing them.


London has also unblocked 91 million pounds ($149 million) in frozen assets, joining the United States and about 30 other nations who have now recognized the opposition, potentially freeing up billions of dollars in frozen funds.


Austria said it wanted to unfreeze up to 1.2 billion euros ($1.7 billion) of Libyan money and transfer it to the rebels, but needed legal papers to show that a financial body set up by the NTC amounted to a valid central bank "identical to the one in Tripoli" to which the money had belonged.


The cash-strapped rebels, who control Libya's oil-rich east, have been selling fuel to raise urgently-needed funds, but are unable to pump new supplies because of war disruption.


A tanker carrying crude oil has sailed from Benghazi for Italy, as the rebels sell the last of their stockpile, industry sources and ship tracking data said on Thursday.

Target the youth

Media and communications teacher discusses the role of youth in branding

Business tends to pick social media, as new platforms -- Facebook and Twitter -- have multifaceted applications. Social media is exploding as a new media channel. It differs from other advertising channels because messages are multi-directional and generated by many parties: marketers, influencers, individuals and consumers.

Social media is not a one-way broadcast of messages to the masses, but a conversation taking place between many individuals. Unlike the real world, the conversation can have many others observing and consuming the content, not just during the conversation, but practically forever into the future. Social media marketing has an easily accessible and long memory.

The practical side of social media is that it can target lifestyles, said Mohammad Masud Chowdhury, a senior lecturer of the media and communications department of Independent University Bangladesh. Chowdhury said social media is integrally linked with our life and offers a range of available products that suit our lifestyles."

He said every person with an internet connection has an account on the social media site Facebook. This site is like a kaleidoscope.

People want to know the impacts of social media in businesses, but they do not want to research the topic. "So we should do an in-depth analysis or research on the impacts of Facebook on our lives and businesses," he said. "This would help us decide what to do next."

Media is an integral part of business now a day, said Chowdhury.

For example, one can get an idea of global finance by analysing Bloomberg reports. Similarly, we should study the impacts of new media so that we can make predictions on the business of the country.

He asks what is needed for the business entity. Businesses need to reach out to the youth of the country because they are the real consumers. They dictate their parents about brands that would be purchased.

A lawyer friend of mine was supposed to purchase an ordinary car. But his adolescent daughter persuaded him to get the Toyota Premio brand,"he said as an example.


This brand is much costlier than one he chose at first. But the choice of the young members in the family become important in buying goods, he explained.

He said businesses should address this segment of society for marketing with the help of new media.

It is very easy to reach out to this young crowd with the help of music too, he added. This segment is also very adventurous.

He said businesses should be more aware of what is happening or changing in society. There will be new pressure groups in the market; they will use high-tech methods. To sustain in the digital market, business people should concentrate on new media.

The concept of brands differs between the parents and children, he added.

Kids basically share their brand concept with their peer groups. What they say really matters. So every campaign should target that group. Using new media in branding or campaigning is still absent in Bangladesh. But the landscape is changing very fast.

Now a day, we see sugar or oil vanishing from the market. But the day is not so far when oligopolies or monopolies will disappear from the market. These are very old business concepts.

The architecture of information is shifting very fast. The paradigm is changing, said Chowdhury.

The senior lecturer said one could get digital solutions if required.

People are even using smart cards in the chicken markets.

The internet has become a part of everyday life, he said. This means that spending behaviours are changing. People don't want to carry cash for security reasons. New media has a lot to do here.

New media has the power to change brand loyalty, said Chowdhury. The perception of a brand can be changed. You may have a tea garden in the Tetulia upazila of Panchagarh district, in the extreme north of Bangladesh. You also have the facility to market the garden as an organic one by using Youtube. You can raise consumer eagerness on organic food. You can even take orders on the net.

On the other hand, Chowdhury talks about digital governance. The products should be authentic, as expressed on websites. Social media has strong catalytic role to run a business.

RMG contributions to national exports rise

RMG contributions to national exports rise

The contribution of readymade garment products to national export increased by 1.02 percentage points in the immediate past fiscal year compared with the previous fiscal year, data from the Export Promotion Bureau (EPB) showed.
In fiscal 2010-11, the contribution of RMG (woven and knitwear) to national export was 78.14 percent or $17.91 billion compared with 77.12 percent or $12.50 billion in fiscal 2009-10, according to the EPB.
In the just concluded fiscal year, the country earned $22.93 billion from exports backed by $17.91 billion from the garment sector, the data showed.
Of the RMG products, the contribution of knitwear was worth $9.49 billion, or 41.37 percent, while woven products earned $8.43 billion contributing 36.79 percent to the total export in fiscal 2010-11, according to EPB data.
In fiscal 2009-10, knitwear contributed 40.01 percent or $6.49 billion and woven 37.11 percent or $6.01 billion to the total export. In 2008-09, the share of knitwear was 41.30 percent and that of woven was 38.02 percent.
If home textile, terry towel and specialised textile were included in the RMG sector, the share of the sector in the total export would cross 80 percent in fiscal 2010-11, exporters said.
In 2010-11, earnings from home textile export were worth $788.76 million, while terry towel earned $120 million, according to the EPB.
However, jute and jute goods also contributed significantly to the national export in 2010-11, crossing the one billion mark for the first time.
Monoj Kumar Roy, joint secretary (export) to the commerce ministry, said the overall export is increasing as almost every sector is performing well.
“The contribution of the RMG products is increasing significantly, whereas the export of other products is also picking up due to diversification,” he said. Previously, other sectors were not performing as per expectation due to a lack of diversification, he added.
Abdullah Al-Mahmud Mahin, managing director of Mahin Group, a local garment giant, said RMG export rose due to the relaxation of the Rules of Origin (RoO) in the EU under the Generalised System of Preferences (GSP) from January 1 this year.
“There is an increased pressure of orders from international buyers for higher cost of production in China and Vietnam. The added advantage for Bangladesh is that it mainly produces basic garment, which its competitors don't,” Mahin said. He said many entrepreneurs are now expanding their production capacity seeing a bright future.
Faruque Hassan, vice-president of Bangladesh Garment Manufacturers and Exporters Association, said export of RMG products increased due to price hike of per unit of garments following the rise in prices of raw materials like cotton and yarn last year.
Moreover, Bangladesh performed well in exporting to new destinations such as Japan, New Zealand, South Africa, South Korea, Malaysia, Turkey and Latin American countries, he said.
“A lot of orders for basic garments are shifting to Bangladesh from other countries,” he said.

No cellphone while driving: minister

No cellphone while driving

No cellphone while driving

The communications minister has warned that the people who use cellphone while driving will face the music from now on.

"Law enforcers will not only fine those talking over mobile phone while driving, but also seize their sets," Syed Abul Hossain said on Sunday.

After attending a meeting of the advisory council of National Road Transport at the Secretariat, he told reporters that legal measures would be taken against the drivers of private cars, jeep and microbus for not fastening seatbelts, too.

The multidisciplinary meeting was attended, among others, by shipping minister Shahjahan Khan, chairman of the parliamentary standing committee on communications ministry Majibur Rahman, Road Transport Association president Enayetullah Khan, and transport leaders.

The minister also said directives were given to the authorities concerned for taking effective steps to ease traffic gridlocks in Dhaka and major business points elsewhere in the country ahead of Ramadan.

Shahjahan suggested that effective measures be taken to rein in the highway police officers who extort money from drivers.

"Allegations have it that drivers face difficulties on highways because of extortion. In refusal, [police officers] file cases against them," he added.

1937 new govt assistant teachers selected

Over 1,900 people have been selected as assistant teachers for government secondary schools.

The director general of the secondary and higher studies directorate, Noman-ur-Rashid, told bdnews24.com on Friday that the posting for the 1,937 candidates, finally selected, would be presented in seven to 10 days.

The successful candidates came up through the written tests, held on January 7 this year, when some 130,000 candidates sat for the examination for 1,968 posts.

On Thursday night, the examination committee submitted the results to Noman.

Leadership change won't hamper ties: Thai envoy

The Thai ambassador in Dhaka has said Bangladesh and Thailand would continue to enjoy warm relations despite changes in leadership in Bangkok.

"I can assure you that our bilateral relations will continue to grow, no matter who is in power," Tasanawadee Miancharoen said at a media briefing on 'Destination Thailand Fair' at the Thai embassy on Tuesday.

The envoy made the remark as her country is going to see a new leadership with Yingluck Shinawatra set to become the country's first female leader.

She said the two-way trade would cross $1 billion for the last fiscal year and it is growing.

"Even two or three years back the embassy would annually issue about 40,000 visas, but now we issue 70,000," she said.

Miancharoen said Thailand is likely to invest $1 billion in power sector in the next five years.  

Laptop 'Doel' starts trial run

'Doel', one of the four models of cheaper laptop manufactured by state-owned Telephone Shilpa Sangstha (TSS), will hit the market by the end of this month, the telecommunications minister has said.

"The price of Doel will be Tk 12,000," Rajiuddin Ahmed Raju told reporters on Friday.

"Apart from the commoners, school and college students will be able to buy the low-priced laptops," he said after seeing the trial run of the laptop factory at TSS in Gazipur.

"We've planned to export the laptops in the future after meeting the local demand," he added.

On Thursday, the minister told parliament that there would be four models of the laptop priced at Tk 10,000, 12,000, 21,000 and 25,000 which would hit the market later this month after the prime minister's approval.

The efforts to market the laptops had been going on for over two-and-a-half years.

"Now it's a Tk 1.48 billion project. At least 10,000 laptops will be produced here per month. The project can be expanded if TSS gets a larger space for its factory," he told the journalists.

TSS managing director Mohammad Ismail said, "The project is being implemented in collaboration with the Bangladesh University of Engineering and Technology, Malaysian Thin Film Transistor (TFT) and foreign experts."

He said 60 percent of the laptop parts, including the motherboard, would be manufactured in the factory.     

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Indian microfinancier reveals staff fraud

India's biggest lender to the poor, SKS Microfinance has found 156 cases of alleged embezzlement by some of its former employees worth nearly $356,800, the company said in its annual report.
Nearly 60 percent of the amount defrauded has been written off after it was not recovered. A third of the accused are currently untraceable, SKS's auditors said in the document, which covers the last financial year ended March.
In the report, SKS said it also suffered 205 cases of fake loan transactions worth $1 million, given to non-existent borrowers on the basis of fictitious documents. The company recovered just over 25 percent of the fake loans funds.
SKS has sacked all employees involved in both types of fraud and is taking legal action against them, a company spokesman told AFP on Wednesday

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BEFORE VISIT

Paper for deals
* Transit

* Teesta water sharing
* Projects under Indian credit

Talks

Trade gap, border killings, electricity import, water resources management, enclaves, border demarcation

---

Indian Prime Minister Manmohan Singh will come to Bangladesh on a two-day official visit on September 6, which is expected to see a resolution to longstanding issues like Teesta water sharing, border demarcation, exchange of enclaves, transit and trade deficit.
He will visit Bangladesh at the invitation of Prime Minister Sheikh Hasina. Dhaka and New Delhi simultaneously announced the schedule of his visit yesterday afternoon.
"The visit is expected to infuse fresh dynamism into the multi-faceted and multi-dimensional relationship between the two countries. The two sides have been working towards making the visit by the Indian prime minister a successful and a fruitful one," said a statement of foreign ministry.
The announcement sets at rest all speculation about Singh's much-awaited visit to Bangladesh.
In the run-up to Singh's official visit, Indian External Affairs Minister SM Krishna will come to Dhaka tomorrow on a three-day tour.
The visit is expected to witness the signing of several memorandums of understanding on a 15-year interim arrangement for Teesta water sharing, border management, transit, cooperation in trade and railway, and projects under India's $1 billion credit to Bangladesh.
Moreover, Indian Congress Party Chief Sonia Gandhi will come to Dhaka on a two-day visit on July 24 to attend an international conference on autism.
The deal on transit will fulfil India's long-standing demand for easier and shorter connectivity between its mainland and land-locked north-eastern states.
The official announcement of the Indian prime minister's visit came after Dhaka gave the signal to sign the MoUs before Singh's visit, diplomatic sources said.
"Signing of the MoUs during SM Krishna's visit means that we are reaching an understanding for final agreements to be signed during the Indian prime minister's visit," said a senior foreign ministry official, seeking anonymity.
A number of issues are taken on board and both the sides are working relentlessly to reach an understanding, said the official.
The Indian side expects that at least three MoUs on transit, Teesta water-sharing and contracts under $1 billion credit will be signed after talks between the foreign ministers of the two countries. The projects under the line of credit are mainly related to railway infrastructure in Bangladesh.
This will be Singh's maiden bilateral visit to Bangladesh since he became prime minister -- the first time in May, 2004, and for a second term in May, 2009. It will also be the first bilateral visit to Bangladesh by an Indian prime minister in 12 years since Atal Bihari Vajpayee came to Dhaka to inaugurate the Dhaka-Kolkata bus service in 1999.
Singh, however, visited Dhaka in November, 2005 to attend the Saarc Summit, a multilateral event.
Hasina had invited Singh to Bangladesh when she was in New Delhi in January, last year when the two countries adopted a landmark 51-point joint communiqué with major decisions on bilateral cooperation in crucial areas like water sharing of Teesta and other rivers, trade, security, transit and electricity.
Our New Delhi correspondent reports: Singh, a firm and consistent proponent of India's neighbourhood diplomacy, is likely to announce some "unilateral" trade concessions to Bangladesh during his visit to address Dhaka's persistent concerns over the yawning bilateral trade gap tilted heavily in favour of India.
Another deal is also expected to be inked during his visit to resolve the long-festering issue of adversely-held enclaves and border demarcation. The issues had remained unresolved since the Indira-Mujib accord of 1974.
India and Bangladesh share a 4,156km border, 6.5 kilometres of which remain un-demarcated. Border demarcation remains pending along the north-eastern Indian state of Meghalaya where a joint survey was held up following objections from locals. It is likely to be sorted out in the next two months.
Indian Home Minister Palaniappan Chidambaram will also visit Dhaka later this month to finalise a pact on enclaves and border demarcation. Bangladesh has 3,000 acres of land inside India and 51 enclaves adversely possessed in Indian territories. Similarly, India has around 3,500 acres of land and 111 enclaves adversely possessed inside Bangladesh.
Meanwhile, Krishna at a press conference at his South Block office, said he would meet President Zillur Rahman, Prime Minister Sheikh Hasina and Leader of the Opposition Khaleda Zia.
He will also meet his counterpart Dipu Moni, and Finance Minister AMA Muhith.
The Indian minister will visit the National Memorial at Savar. Some of Hasina's advisers are expected to meet Krishna tomorrow ahead of formal talks between the two foreign ministers. 

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MNCs tax dodge worries UN

A UN body has urged international community to help develop a standard accounting system to stop multinational companies (MNCs) not paying tax.

"Adoption of globally consistent regulations for transfer pricing could encourage multinational companies to change their behaviour towards more transparency and accountability," according to a United Nations Development Programme (UNDP) report released recently.

Under a standard accounting system, MNCs would report sales, profit and taxes paid in all jurisdictions in their audited annual reports, it suggested.

The report, , titled "Illicit Financial Flows from the Least Developed Countries: 1990–2008" also revealed that dishonest exporters and importers, criminals, corrupt people and tax evaders sent $35 billion out of Bangladesh through illegal channels.

"Illicit fund flows from Bangladesh increased from $1.1 billion in 1990 to $4.5 billion in 2008 and the total illicit outflow is 3.41 percent of the country's gross domestic product," it said.

According to the UNDP-commissioned paper, about 65 percent of illicit fund flows from LDCs are done through trade mispricing — imports are overpriced and exports underpriced on customs documents.

The report blamed corruption, uncongenial business climate, underground economy and political instability as the driving forces behind the illicit flows.

TRADE MISPRICING

Trade mispricing accounts for a bulk of illicit outflow and tendency for mispricing has increased along with increasing external trade, says the report.

The UN body in its report, therefore, recommended systematic customs reforms and adoption of transfer pricing regulation to reduce illicit fund flows.

Implementation of specialised software to identify possible incidents of transfer pricing may also be useful, it suggests.

"Tax administration reforms and increased dependency in direct tax can be a good alternative to reduce tax evasion."

Indirect taxations are difficult to manage and it has built-in incentives for tax evasion, the report observed.

GOVERNANCE FACTORS

The UNDP report says resources are not properly allocated due to corruption as public officials favour those who are willing and able to pay bribe or kickbacks.

"Public corruption typically involves the abuse of authority or trust to private benefit," it said.

The temptation, the report reveals, indulged not only among public officials but also among the rent-seekers in private enterprises and non-profit organisation.

Poor governance encourages corrupt people to engage in malpractice as long as they believe that they can get away with the 'loot'.   

Use social business to achieve MDGs

Experts urge countries on Social Business Day

Bangladesh yesterday celebrated the second Social Business Day along with a dozen countries, urging all nations to use the new economic theory to speed up efforts to reach millennium development goals.
All nations across the world have only less than five years to reach eight internationally agreed targets on poverty, hunger, maternal and child deaths, disease, inadequate shelter, gender inequality and environmental degradation set in 2001.
And in some areas, experts said, the picture is not very bright -- not only in Bangladesh but also in the rest of the world.
“We are doing well in some areas of MDGs, but not in all areas. We have to achieve the goals, but we have not enough time left,” said Nobel laureate Muhammad Yunus.
The anti-poverty champion said Bangladesh has gained a significant achievement in the last few years in terms of eradicating poverty. “We are ahead of many countries that are pushing hard to achieve the goal.”
“But in areas like cutting rate of maternal mortality we are lagging behind. It is a shame for a civilised society to accept that women are dying while giving birth to a child. It could be avoided,” said the 2006 Nobel peace prize winner.
“We cannot accept it. We have the capacity to stop it,” said Prof Yunus, whose Grameen Bank is credited with empowering millions of Bangladeshi women through microcredit.
His comments came at the inaugural ceremony of a daylong event organised to mark Social Business Day along with 12 countries across the world.
Yunus Centre, a hub of social business movement, organised the event at Sonargaon Hotel in the city, in association with Grameen Telecom Trust, Bangladesh-German Chamber of Commerce and IHS Alliance Fibreglass.
The event aimed at listening to the latest developments in social business around the world, and the know-how to use the concept to help people create their own ventures to fight social problems, organisers said.
The theme for this year's event is “achieving the millennium development goals through social business”.
Top officials of social business ventures from around the world, anti-poverty activists, economists, politicians, civil society members, academics and students took part in the event.
Despite all confusions and criticisms, the social business concept is well set to win, thanks to its sheer simplicity and transparency, said Dr Yunus.
“It is a simple idea and will attract more and more people from around the world,” he said. “The business is not about money. The essence of it is creativity and innovation.”
A social business is a non-loss and non-dividend company where investors can recoup their dividend but nothing beyond that. All profits will be used to improve the products and services offered, and/or to stretch the reach of the company.
Prof Yunus, also the microcredit pioneer, has developed the concept of social business, a type of business dedicated to solving a social problem.
“Social business is your capacity to change the world,” said the economist.
Thomas Stelzer, UN assistant secretary-general for policy coordination and inter-agency affairs, Saori Dubourg, president, regional functions and country management, Asia Pacific, BASF, Corinne Bazina, chief executive officer of Grameen Danone, Hans Reitz, founder of Grameen Creative Lab, Masaharu Okada, executive director of Grameen Creative Lab at Kyushu University in Japan, Rokia Afzal Rahman, president of Bangladesh Federation of Women Entrepreneurs, also spoke.

Discuss ConocoPhillips deal in JS: Menon

Workers Party MP Rashed Khan Menon has demanded discussions in parliament on the deal with US firm ConocoPhillips to explore oil and gas in two deep-sea blocks.

Taking part in budget discussions in parliament on Saturday, Menon said, "We'll have to extract our gas resource. We don't want to live in the Medieval Age. I demand discussions in the House on the deal."

"People own the state. But it cannot be allowed that they [people] will remain in the dark about the deal and some advisors, chairmen and secretaries will know all about it. I want to alert people about the game of the multinational gas firm," he added.

Referring to the admission of oil and gas company Niko Resources that it bribed former BNP junior minister A K M Mosharraf Hossain, Menon said, "Maybe, we'll see in the future that there had been underhand dealing in the agreement with ConocoPhillips, too."

On June 13, he told the House that while the government was planning to import LNG, the multinational company will have the authority to export 80 percent of gas, and the country will be left with the rest 20 percent only.

"This is a tragedy that on one hand, the government is planning to import LNG and allowing export of gas on the other," he added.

The agreement with the US firm came when the country is reeling under severe energy crisis and many factories are out of operation or cannot come on stream due to gas crisis.

A citizens' platform, the National Committee on Protection of Oil, Gas and Mineral Resources, Power and Ports', declared to enforce a general strike in the city on July 3, protesting the deal signed on June 16.

'GOVERNMENT'S POPULARITY DECLINING'

Menon slated the budget for the 2011-12 fiscal saying that there was no word on coal lifting policy in it.

"I thank the finance minister for his remark on fixing the goals of the budget, but he'll have to take some unpleasant decisions, or lese its implementation will be difficult," he said.

"People consider budget as a shopping bag which is getting squeezed gradually. The government's bag of popularity is also on the wane," he added.

'TARIQUE, COCO MODELS OF CORRUPTION'

The workers party president termed BNP chairperson Khaleda Zia's sons Tarique Rahman and Arafat Rahman Coco as 'models of corruption'.

"They have established themselves as role models of corruption among the youth. The nation will have to be protected from this rot," he said.

Khalid Mahmud Chowdhury MP said, "The sons [of Khaleda] were made looters by taking money from the state coffer. I urge Khaleda Zia to apologise to the nation for this."

He also urged the government to bring back and try Tarique, who is facing several corruption cases.

A Dhaka court on Thursday convicted Coco in a money-laundering case filed during the last caretaker government. Coco is now in Thailand, while Tarique in London.

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G20 strikes historic farm deal

G20 farm ministers settled a deal on Thursday to tackle high food prices, agreeing to a watered-down declaration that fell short of France's ambitious proposals to tighten regulation of commodity markets.
"The member states of the G20 concluded an agreement this morning on an action plan on volatility of food prices and global agriculture," French Farm Minister Bruno Le Maire told journalists after chairing the meeting.
A communique was not immediately available, but a G20 source said it urged finance ministers of the Group of 20 major economies to improve rules and supervision of commodity markets.
The deal appeared to lack, however, a commitment for a tough crackdown on speculators that French President Nicolas Sarkozy had campaigned for in the run-up to the summit, the first-ever G20 agriculture meeting.
"We recognize that appropriately regulated and transparent agricultural financial markets are indeed key for well-functioning physical markets," the communique said, according to the source.
"On this basis we strongly encourage G20 finance ministers and central bank governors to take the appropriate decisions for a better regulation and supervision of agricultural financial markets," it added.
World food prices hit a record high earlier this year, reviving memories of soaring prices in 2007-2008 that sparked riots in developing countries, and giving fresh urgency to debate about how to improve a global food system that leaves some 925 million people hungry.
France had wanted all G20 countries to commit themselves to imposing position limits -- a curb on how much of the market an investor can buy into -- but the G20 source said the communique only said reforms could include trading limits.
The action plan includes increasing agricultural output, improving market transparency through a new database and removing export restrictions for food aid, Le Maire said.
France, which heads the G20 this year, was keen to crown agreement on areas like data transparency and policy coordination with firm proposals for regulating commodity derivatives, but partners like Britain had so far remained opposed to stringent controls on financial markets.
UK Agriculture Minister Caroline Spelman told Reuters on Wednesday that Britain backed efforts to improve regulation but said it was up to G20 finance ministers, not farm ministers, to come up with concrete measures.
Paris has taken a hard stance on negotiations in recent days, saying it would not sign a half-hearted agreement as it pushed for an ambitious deal that would boost Sarkozy's profile 10 months before a new presidential election.
Under the deal, G20 members agreed to exclude humanitarian aid from export restrictions, US Agriculture Secretary Tom Vilsack said in a statement.
G20 members had committed to getting the deal approved under World Trade Organisation rules, a source close to the talks said.
The scope of commitments on regulation and other divisive issues like biofuels and emergency food stocks would be limited, however, other sources had said.
Brazil, a major producer of sugar-based ethanol, has been staunchly opposed to suggestions biofuels contribute to rising food prices, while the United States has been sceptical on the idea of developing food stocks for humanitarian purposes.
"There will be some sentences about biofuels but these will be about the need for more studies, research, not really trying to introduce a drastic new approach," said a source, who was involved in last night's discussions.
Sarkozy had urged G20 farm ministers on Wednesday to adopt France's proposed action plan, including a tough line on speculators whom he blames for driving up food prices and fuelling political upheaval in some countries.
"A market that is not regulated is not a market but a lottery where fortune favours the most cynical instead of rewarding work, investment and value creation," he said.
European wheat prices tumbled 7 percent on Wednesday amid signs of intense competition on export markets, giving fresh evidence of market volatility which France sees as not justified by physical supply-and-demand factors

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 Asian nations moved to release emergency oil stockpiles on Friday as part of a rare global coordinated action by consumer countries to prevent high energy prices from stunting a stuttering economic recovery.

The move, led by Washington and criticised by the oil industry as an unnecessary distortion of markets, suggests a fundamental shift on the part of industrialised nations toward intervention in commodity markets as an economic policy tool.

Brent oil prices edged back up on Friday after tumbling to a four-month closing low on Thursday, reflecting doubts that the unexpected decision by the International Energy Agency to release 60 million barrels over the next month would have a long-term impact.

Japanese Economics Minister Kaoru Yosano said the move was a warning to speculative buyers but India's Oil Minister S Jaipal Reddy doubted the action would have an impact.

"Even if there is a slight increase in production (supply), those gains will not be made available to us because of unbridled speculation in the financial markets of the world," he said. "We don't know whether this (weaker oil prices) is a stable trend."

The stock release is only the third in the 37-year history of the agency that was set up as a counter weight to exporting group OPEC.

IEA Asian members Japan and Korea said that from next week they will start releasing oil reserves in line with the agency's targets.

Japan will cut the reserve requirement for oil companies by 7.9 million barrels over the next 30 days and South Korea will release 3.46 million barrels, together providing about 19 percent of the IEA target.

Australia and New Zealand, the remaining members from the Asia-Pacific region, are not participating.

The news follows a Group of 20 agreement, struck in Paris on Thursday, to tackle high food prices by boosting farm output, food market transparency and policy coordination.

The G20 deal is another sign that global policymakers are reaching beyond traditional economic policy tools to sustain global growth.

The world economy, recuperating from the 2008-2009 global financial and economic crisis, has shown signs of losing traction in recent months and the Federal Reserve acknowledged that this week by cutting its forecasts for growth in the world's biggest economy.

High commodity costs that sap consumers' spending power and squeeze manufacturers' profit margins are blamed for much of the slowdown.

SCARCE OPTIONS

Industrialised nations managed to pull their economies from the brink of depression by dishing out trillions of dollars in stimulus packages and slashing borrowing costs to record lows.

But that left rich economies from Japan to the United States with huge debt and few policy options if their economies were to weaken again.

While the release of oil was spearheaded by the United States and other developed nations, booming emerging powerhouses such as China and India are also set to benefit as they try to contain stubbornly high inflation without sacrificing too much growth.

"To some extent, it will help lessen some inflation pressure facing Asian countries and it is also good news for the global economic recovery," said Gong Jialong, former chairman of a body representing China's petroleum industry body.

Gong and others, however, compared the move that will increase daily supply by nearly 2.5 percent to currency market intervention. It is not something that could reverse a broad trend but it could help prevent excessive price moves.

"The hoped-for impact is not to induce a downward trend in commodity markets, but instead to head off potential price increases stemming from the increase in third quarter demand," said PFC, a Washington-based energy consultancy.

Seasonal oil demand ramps up in the third quarter as refineries prepare for the northern hemisphere winter when heating consumption peaks.

Another factor suggesting that the IEA decision will only have a short-term impact on prices is that oil faces an incremental increase in demand now that several countries are turning away from nuclear power generation following Japan's crisis, a Japanese government official said.

"Demand for fuel will rise globally with more countries unable to rely on nuclear power as much as that had initially hopes. That means prices have more reason to rise further than decline," he said. He declined to be identified because he is not authorised to speak to the media.

JPMorgan Chase, however, said that even some cooling effect on prices would prove a boon to the world economy.

"If our projections are realised, the IEA release provides the equivalent of a $140 billion stimulus to consumers," it said in a note. "The release will prove stimulatory to the global economy, particularly for emerging markets and the U.S."

DEEPENING CONSUMER CONCERN

The IEA decision was the culmination of a plan that President Barack Obama put into motion more than a month ago, and shows the deepening concern among rich nations over the economic damage from high energy costs.

Obama drew immediate criticism from the oil industry and Republicans, who called it an ill-timed misuse of stockpiles that risks leaving the government with less ammunition should a deeper supply crisis emerge.

Oil prices have risen 20 percent over the past year, pushing U.S. retail gasoline prices to $4 a gallon.

While Brent crude peaked above $125 in April, it has since fallen sharply. After dropping a further 6 percent on Thursday, prices are only a little higher than mid-February, just before the Libyan conflict began.

The IEA said the action would fill shortages caused by the Libyan conflict and get oil quickly to market while Saudi Arabia makes good on its pledge to pump more oil.

The 28-nation agency will decide whether to release more oil in a month.

The previous two releases followed abrupt shortages caused by the first Gulf War in 1991 and by Hurricane Katrina in 2005, and the global response was swift. In this case, it has been over 3 months since Libya's exports stopped.

The United States will provide 30 million barrels from its huge 727-million barrel crude reserve, about 1.5 days of U.S. consumption, with Europe supplying 30 percent in crude and refined products and the rest from Pacific OECD nations. 

Greek government survives, battles on to avoid bankruptcy

Greece's government will approve a new austerity package on Wednesday after it survived a confidence vote that was a crucial hurdle in a battle to avert the euro zone's first sovereign debt default.

Prime Minister George Papandreou's reshuffled cabinet aims to get parliamentary approval for a package of spending cuts, tax hikes and state asset sales by June 28 and implement it by July 3 to secure 12 billion euros ($17 billion) in aid that is vital to avoid bankruptcy.

The vote follows a European ultimatum linking the release of the next instalment of a 110 billion euro EU/IMF aid package to the tougher new five-year belt-tightening plan.

Without the loans, Athens would plunge into default next month, sending shock waves thr-ough the global financial system.

The euro rose in hopes that the immediate threat of market chaos could be avoided. But the gains were short-lived as traders remained worried about the will to implement harsh austerity measures against fierce public resistance and by doubts about Greece's ability to reduce its debt burden without some form of restructuring.

The yield on Greek government bonds tightened slightly against benchmark German Bunds, with the 2-year bond yield dropping 28 basis points, while Greek banking stocks opening flat after strong gains on Tuesday.

After some brief scuffles between police and protesters after the late night vote, the streets of Athens were calm on Wednesday with traffic running normally through Syntagma square where 20,000 demonstrators besieged parliament on Tuesday night.

The government won the late night confidence motion by 155 to 143 with two abstentions after all of Papandreou's Socialist Party deputies voted solidly with the government.

But with unions bristling for a fight and much of the public outraged by new austerity measures, implementing any reforms will be a challenge as Greece struggles in its worst recession in 37 years.

"Within the parliament there is no problem at all, the real problem is in society," said Costas Panagopoulos of pollster ALCO. "There's a lot of disappointment in the Greek society, there's a lot of anger and there's no hope at all. The new minister of finance and the government...have to offer some hope otherwise I cannot see how the government could remain stable."

Eurozone creditor governments were starting talks with commercial banks and insurers on Wednesday about a "voluntary" private sector contribution to a second rescue program for Greece, a source in the German government said.

"The finance ministry has invited banks and insurers for talks on a working group level in Frankfurt," the source told Reuters, adding that the same would begin elsewhere in the 17-nation single currency area.

Private bondholders will be asked to commit to rolling over their Greek bonds when they mature, but Berlin was forced to drop a more ambitious plan for a bond swap extending maturities by seven years after the European Central Bank objected.

Speaking hours after the vote, Mohamed El-Erian, head of Pimco, the world's biggest bond fund, said he expected Greece to end up defaulting on its debt.

"For the next three years, we're going to see different economies work out different problems. For European economies, especially Greece, it would be through default," El-Erian told a conference in Taipei.

Papandreou managed to stifle dissent within his party last week, replacing unpopular government figures with critics of the austerity plan and repeatedly hammering home the message of what was at stake.

"If we are afraid, if we throw away this opportunity, then history will judge us very harshly," Papandreou said in a final appeal for support before the confidence vote.

Having already missed targets agreed in its first, year-old bailout, Athens needs the reforms to keep receiving those funds and secure a second bailout worth an estimated 120 billion euros.

The new mid-term plan envisions raising 50 billion euros by selling off state firms and includes 6.5 billion in 2011 fiscal consolidation, almost doubling existing measures that have helped extend a deep recession into its third year.

Most analysts remain skeptical that Greece will be able to repay its vast public debt pile of 340 billion euros, 1.5 times its annual economic output and more than 30,000 euros for each of its 11.3 million people, even if the reforms are implemented