Term paper onTrade-Balance Relationship

Department of FinanceUniversity of DhakaCourse Name: International Trade & FinanceCourse No: F- 208

Prepared For:Ms. Tanzila DeeptyLecturerDepartment of FinanceUniversity of Dhaka Prepared by: Group no: Department of Finance University of Dhaka Date of submission: 26/10/2011

Group Introduction

SL. No.NameID

01Md. Nurul Hoque16-009

02Mohammad Nahidul Islam Nahid16-021

03Titu Chowdhury16-031

04Robin Kumar Saha16-039

05Mohammad Kafil Uddin16-047

06Deepangkar Saha16-089

07Ishrat Amin16-119

08Annaya Nandy16-139

09Md. Atiar Rahman16-141

10Md. Anowarul Hoque16-253

Letter of Transmission

January 14, 2012Ms.Tanzila DeeptyLecturerDepartment of FinanceUniversity of DhakaSubject: - The Letter of TransmissionDear Madam:Here is the term paper on the Implementation of our theoretical knowledge from the International Trade and Finance Course on the Japan-Bangladesh Relationship perspective on in response to the subject you have given us to prepare a term paper.We would like to say that this term paper was helpful for us to know about the different aspects of terms of trade balance and their practical and real life applications. We also get an overall idea on the Japan and Bangladesh Economic and Trade relationship. We are very thankful to you for giving us such a wonderful opportunity of widening our knowledge from the pages of our book to the field of practice.You will be happy to know that, we have tried our best to make this term paper more & more informative and factual & applied our learned tools as many as we can.Sincerely YourId no. 16-On behalf of the group-Department of FinanceUniversity of Dhaka

Acknowledgement

For the completion of this study we cant deserve all praise. There were a lot of people who helped us by providing valuable information, advice and guidance for the completion of this report in the scheduled time.Course report is an essential part of BBA program as one can gather and implement practical knowledge within the short period of time by observing and doing the works of chosen organizations. At first we like to pay our thanks to almighty Allah, for helping us to do all the works with perfection. We would like to pay our gratitude to our supervising dear course teacher Ms. Tanzila Deepty who instructs us in the right way and give us proper guidelines for preparing this report. We convey our overall gratitude to the entire person who has been involved in assisting us to complete the report.This report is prepared by us to meet only for our academic purpose and not for any other reason. It might not be used for the benefit of any other purpose.

Table of Content

Introduction

As per the course requirement of our BBA program International Trade and Finance we studied different theories related to international trades and some important financial terms and applied our learning of this course and made an analysis of the terms of trade balance on the perspectives of the Japan-Bangladesh trade relationship. We were told to study on this by honorable course teacher Ms.Tanzila Deepty. We gathered knowledge on the economy of the Japan and Bangladesh. Although we were very familiar with these terms as the students of Business Studies we do not have any clear idea on their real life implications. After doing the assigned terms ask we came to know about the whole process and gain more clear distinctive views and ideas. We hope the experience will help us in near future to achieve our goal to be an owner of successful business career.

Objectives of the Study

The objective of our assignment is to bridge the gap between textbook knowledge and real life practices. We have read about the importance and the performance activities of several sections of International Trade and Finance in our book and made a detailed analysis regarding the effect of these.

General Objective

Main objective of this report is to evaluate the performance of the international trade in any country and find out the efficiency of their economic policy. Another objective of our study is to teach different issues of practical application of the terms and theories of the balance of trades between countries to country.Specific Objective The objectives of this study are as follows: To know the performance of the different financial tools between the country to country basis. To know about the detail of economic and financial conditions of the Bangladesh. To know about the details of the economic and financial conditions of Japan. To know about the Bangladesh and Japan economic, democratic relationships etc. To simplify the terms and conditions of trade balance between Bangladesh and Japan.

Limitation of the report

The present study was not free from limitations. It is important to note that these limitations have somehow contributed in developing a dazzling and outstanding report. These limitations are discussed briefly below:Inadequacy of Data: The websites and internet was the main source of information that was not enough to complete the assignment and provide the reader a clear idea about the organization.Inefficiency of knowledge: We are young enough to apply the higher level economic trade theories and to analyze it from the practical Bangladesh Japan perspectives.Non Co-operative: Every country has their own secrecy that is not revealed to others. While collecting the economic data that can affect the safety and security, country website did not disclose much information for asked of confidentiality of the economy.Lack of the implications of the trade theories: Various trade theories had not been used while analyzing the data, as the very limited knowledge on international trades terms and conditions.

SummaryJapan has developed and maintained cordial relations with Bangladesh since theestablishment of diplomatic relations in 1972, primarily through Japans economiccooperation. Together with Bangladeshi peoples warm feeling towards Japan,Bangladesh has a strong expectation for Japans ODA. Japan is one of the largestdonor countries to Bangladesh.(Pop.:139.2millions, GNI/capita:$440, Rate of economic growth:6.3%)Outline of Japans ODA to BangladeshGoal and significance of Japans ODAMinistry of Foreign Affairs of JapanSeptember 2009Japanese ODA Loan Projects

Bangladesh is a moderate Islamic country and is making efforts to promoteregional cooperation as the advocator of SAARC. It is important to assistBangladesh for further sustainable development in order to achieve stability andeconomic development in the entire region. 36% of Bangladeshs total populationis under poverty line. It is also important to support Bangladeshs efforts towards(Jamuna Multipurpose Bridge, The western part of Bangladesh)

Jumuna Multipurpose Bridge Project

The Jumuna runs from north to south through Bangladesh, dividing the country to the east and west. And, the Jumuna formed a bottleneck in east-west traffic, because ferries were the only means of crossing the river, therefore the east-west disparity grew. Under these circumstance, the WB, ADB, and Japan jointly financed for the construction of a multipurpose bridge and incidental facilities. Japan provided with Yen loan of 21.6 billion yen. In 1998, service was opened. This bridge has a total length of about 4.8km.

Japans Country Assistance Program for Bangladesh was revised in May 2006.The priority areas are as follows;(1) Poverty Reduction through economic growth(private sector development, infrastructure development [transportation andpower sector], agriculture and rural development),(2) Social Development with Human Security(education, health, environment, and disaster management),(3) Good Governance (central, sectoral and local level).

Japanese ODA LoanJapan has been extending Japanese ODA loans mainly in the area of infrastructure.In FY2008, Japan provided Japanese ODA loans amounting to 39.749 billion yento Bangladesh. The cumulative amount of Japanese ODA loans to date has reached680.5 billion yen.In April 2003, Japan decided to relinquish the Japanese ODA loans of 158.09billion yen to Bangladesh, based on the UNCTAD resolution in 1978.Eastern Bangladesh Bridge Improvement Project (about 7.82 billion yen)This project is to renovate the bridges, which have high priority and urgency for repair in Eastern Bangladesh, with due consideration to flooding. New Haripur Power Plant Development Project () (about 22.21billion yen)This project is to construct the highly efficient gas combined-cycle thermal power station, which contributes to reduce carbon-dioxide emissions, in Narayanganj District, on the outskirts of Dhaka, and to provide management support. (Climate Change Japanese ODA Loan)

Focus Areas Exchange of Notes on Feb. 22 2009in FY2008 (Total amount: about 39.7 billion yen)poverty reduction to achieve MDGs.Central Zone Power Distribution Project (about 9.72 billion yen) This project is to construct and rehabilitate the distribution networks in central, greater Mymensingh and Sylhet zones, and to assist development of organizational capacity of the new public power distribution company. (ClimateChange Japanese ODA Loanes must benefit and add value

JAPAN BANGLADESH TRADE RELATIONSHIP

Japan is one of the richest countries in the world and important development partner of Bangladesh. She is the significant source of foreign aid to Bangladesh. Japan has some important political and economic goals in Bangladesh. Bangladesh is an important source of raw materials and trade partner of Japan and significant Place of investment. Japan and Bangladesh has been maintaining cordial relationships in an atmosphere of goodwill and cooperation during the last three decades and a half. This relationship is being strengthened and reinforced through bilateral relations between- the two countries.

Though Bangladesh has political, economic and cultural relations with Japan, but Bangladeshs main relation with Japan is economic. Japan achieved her economic goals in Bangladesh by providing aid, developing trade and by making infrastructural investment. The following discussion will tell us to how Japan did achieve her economic goals in Bangladesh. Though we have political, economic and cultural relations with Japan, but our main relation with Japan is economic. Japan achieved her economic goals in Bangladesh by providing aid, developing trade and by making infrastructural investment. The following discussion will tell us to how Japan did achieve her economic goals in Bangladesh.

First of all, aid is a vital tool of achieving Japanese economic goals in Bangladesh. Some features of Japans aid program which derive from this Asia - centric approach are that, it is project based (particularly for high profile projects). With a predominance of bilateral loans, and that there is an emphasis on infrastructure developments. It focuses on low-income countries (and not the best developed countries for example) as recipients, gives close attention to technical skills human resource development, and is aligned with the concept of heart to heart democracy and co-operation rather than charity.

Second of all, trade is another important way of achieving economic interest of Japan from Bangladesh. In many respects, international trade is the life blood of Japanese economy. The trend of the three decades and a half of Japan Bangladesh trade balance can be seen as negative balance of trade.Last of all, Japan fulfilled her economic interest in Bangladesh by making investments. As a developing country, Bangladesh welcomes flow of foreign investment in the country for an Introduction of new technology to help improve the job market and the economic growth. Japan is one of the largest investors in Bangladesh. In 1961, Japans first investment was in Bangladesh, a joint-venture textile mills.21 Till now more than 14 Japanese companies inside EPZs and 40 outside EPZs are operating in Bangladesh.22 According to board of investment sources up to June 2004 Japanese companies registered with BIO invest in Bangladesh 1,188. 647 Million US dollar.23 Japanese investment in Bangladesh ranks 4th among the foreign investing countries after the U.S.A., U. K. and Malaysia. There are presently about 120 projects with 100 percent Japanese investment or joint venture between Bangladesh.Bangladeshi-Japanese relations were established in February 1972. Japan is Bangladesh's 11th-largest export market; imports from Bangladesh make up 26% of all Japanese imports from the least developed countries, second only to those from Cambodia.Diplomatic Relations

1972 February Japan recognized the People's Republic of Bangladesh

1972 March Japan opened the Embassy in Dhaka

1972 July Bangladesh opened the Embassy in Tokyo

Bangladesh is deeply appreciative of the Government and the people of Japan for standing by its side over the last 38 years as the leading development partner. Japan has been greatly instrumental in our economic infrastructure building; poverty alleviation efforts and human resources development. Japan aided infrastructures including bridges in Bangladesh have directly helped its economy to grow at healthy ratesJapan has been a major contributor to our successful poverty alleviation efforts. Japan has also helped in our human resources development. Today hundreds of trainees from Bangladesh who have been trained in Japan are helping build a better Bangladesh. Most of them speak fluent Japanese. We would like Japan to continue and broaden assistance in our education sector particularly in science, IT and emerging technology.There are more examples of Japanese assistance presenting Bangladesh as a role model of successful utilization of ODA. Bangladesh has welcomed the decision of the Government of Japan for providing substantially enhanced project loans of US$ 440 million this year. We hope the present flow of ODA to Bangladesh will continue in the future too.Japan is also a major trading partner and source of foreign direct investment. Although the volume of bilateral trade and investment is yet to reach the full potentials, joint and new efforts may substantially raise the level for mutual gains. Bangladesh offers enhanced investment support services, incentives, large market, inexpensive workforce and quality export products as evidenced in JETRO studies recognizing the country with lowest cost of doing business and capable of supplying IT products for Japan. Big businesses like BJIT, NTT Docomo, UNIQLO, SEIYU, Ito Yokado, NITORI, and Mitsubishi have started or negotiating for doing business in Bangladesh. More such delegations also bear the testimony of the hard work and relentless efforts this mission has put in to motivate and encourage the big Japanese companies to invest and doing business in Bangladesh.Private sectors of the two countries have also developed close cooperation over the years. Japan-Bangladesh Committee of Economic and Commercial Cooperation (JBCCEC) hold its sessions in Tokyo and Dhaka alternately to discuss and review business and investment issues. Bangladesh encourages increased Japanese investment including relocation of facilities in expensive locations elsewhere. An exclusive EPZ for the Japanese entrepreneurs may also be set up. Tourism is an area our two countries can cooperate to further promote the friendship, goodwill and exchange between the people. From time immemorial, travelers visited Bangladesh attracted by its charm and fame. It is a country of immense scenic natural beauty and rich flora and fauna. The land and nature that takes variety of shades as the six seasons visit throughout the year. Bangladesh also has ancient history and rich tradition, culture, heritage, art and literature. Todays modern Bangladesh and its people embody all these characteristics and make an attractive place for the Japanese tourists who also have long history, rich culture and tradition; particularly the Buddhist archeological sites would be of great delights for them.There are more than 10,000 Bangladesh nationals living in Japan and are engaged in various activities including business, employment, research and academic related pursuits. There are also good number of Japanese people living in Bangladesh who, too, are involved in various activities such as business, employment and voluntary services. These expatriate nationals are providing valuable contribution to the strengthening of people to people contact and are building a strong bridge of friendship between Bangladesh and Japan. In order to harness the potentials and strength of Bangladesh businessmen living in Japan, this Mission helped launch a Bangladesh Chamber of Commerce and Industry in Japan in 2007. The chamber has already started playing an important role towards increased bilateral trade and investment, between the two countries. There is a cultural agreement between our two countries and also a cultural exchange programme under the agreement. Both the government may facilitate more exchanges in the field of culture that would further reinforce our friendship.There has been regular exchange of visits between the two countries since our independence. The visits not only added visibility of excellent friendly relations but also contributed to the steady growth of close multifarious cooperation between Bangladesh and Japan.

Common exports items of Bangladesh to Japan:1. Leather goods2. Ready-made garments3. Shrimp4. Frozen Food5. Footwear

Common import items of Bangladesh from Japan:1. Transport equipment2. Software3. Iron and steel4. Electronic products & Home applianceBy 2004, Japan had become Bangladesh's fourth-largest source of foreign direct investment, behind the United States, United Kingdom, and Malaysia. Direct Investment from Japan (July 2005-June 2006) was $1.64 million. Japan's political goals in its relationship with Bangladesh include gaining support for their bid to join the United Nations Security Council, and securing markets for their finished goods. Japan is a significant source of development aid to Bangladesh.

Japans Political and Economic Goals in Bangladesh

PoliticalFirst of all, Japan would like to be a permanent member of the United Nations Security Council. So, Japan seeks Bangladeshs support for the draft resolution on the United Nations Security Council reforms.Second of all, Japan would like to see peace and stability in South Asia. During the last three decades of Japans vital political interest was to establish peace and stability in south Asia. Since1945, Japan was tied politically and strategically to the Western Block and has been a close ally of the U.S.A. During the middle1970s the United States withdrew militarily from the mainland South East Asia. So she is no longer in hegemonic role, and as the Sino - Soviet competition for influence intensified, Japan was called upon to contribute to the stability of the region. Besides, Bangladesh is a major source of essential raw materials for Japan, and an important market for Japanese manufactured goods. Bangladesh is also an attractive place for substantial Japanese investment. Moreover, in addition, the water ways of Southeast Asia are increasingly vital for Japans international transport system. About 60 percent of Japans oil imports and 40 percent of its foreign trade are transported via the Straits of Malcaca, and the Lomok Straits.Third of all, Japan would like to develop its international leadership, since the mid 1980s. Japan has sought leadership through growing contributions to North-South relations and international peace and security. Fourth of all, Japan would like to assume leadership in Asia. Such a perception and self image are based on the following consideration: Basis for such a claim is based on Japans economic predominance in Asia. Basis for Japanese leadership rests on its efforts to resolve regional conflicts in Asia. It provided funds and from 1992, peace keeping personnel to support UNO, peace plan for Cambodia.Fifth of all, Japan would like to establish and patronize democracy in Asia. During the mass upheaval in Bangladesh against the autocratic regime of Mr. Hossain Mohammad Ershad, Japan indicated the possibility of withholding aid to Bangladesh, if political repression continued. During the 1991 general election in Bangladesh a multiparty team of the Japanese Diet visited our country.Sixth of all, during the cold war, Japan played an expensive political and military role to contain communism in the emerging Japanese Vision of the future. Japan would like to fashion a foreign policy that exhibits greater activism on a traders diplomacy was sustainable into the mid 1970' s largely because the United States had willingness to play an extensive political and military role to contain communism in the region, hereby leaving little room for Japanese action.

EconomicFirst of all, Japan is interested to secure supply of essential raw materials from Bangladesh. being one of the most highly-industrialized countries and consequently, of the largest exporters of industrial goods, Japan needs to import huge quantities of raw materials from Bangladesh.Second of all, Japan is interested to have continued access to markets in Bangladesh for its finished goods. In order to preserve its prosperity and employment levels, Japan must export a tremendous amount of industrial goods of very high quality with modest price.Third of all, Japan would like to protect and promote the present international trade regime that includes, by and large, the preservation of the present monetary order, institution of aid and free trade. The Japanese can be expected to lend a helping hand in preserving the present world economic order and if requires more aid, the Japanese will come up with it. Their political democracy and peace orientation powerfully reinforces this priority. But the obverse is also true. If the world economic order fails to sustain free trade, both raw materials and industrial goods with a reasonable degree of expansion every year the whole apple cart will be upset. Fourth of all, Bangladesh is an important place of Japanese product. The cost of production is less than that of any other countries of the world. Ample scope and opportunities also exist in Bangladesh for marketing their (Japans) products. The South Asian free trade arrangement (SAFTA) will have ample scope to provide the willing Japanese entrepreneurs to invest in Bangladesh.

Technological Cooperation Since the dawn of Bangladesh Japan has been a great helping hand in technological sector. Japan has been steadily giving assistance to us. Some important attempts are given below -Telecommunication and ICT

Backbone network development and construction and promotion of total telephone density of fixed as well as cellular telephones are the prime need to support the public as well as the private sectors investment and growth acceleration. Completion of Optical Fiber Cable network and enhancement of the capacity of the international segments for transmission of Internet Protocol Data are the key requisite to be set up. The Bangladesh Telecommunication Company Ltd. (BTCL), Bangladesh Telecommunication Regulatory Commission (BTRC) are the important government institutions dealing with this sector and to make this sector more vibrant, reforms of the BTCL as corporatization and capacity building of BTRC are still under process to face the more competitive services with the private service providers/companies which requires to bring revitalization and reinvesting and increasing efficiency, transparency and more accountable to the public. The Government of Bangladesh signed the project with JBIC, the Government of Japan titled as Telecommunication Network Development Project in June 2006 as Yen Loan Project of Yen 8040 million to build up Basic Infrastructure-Telecommunication Network Development Project along with the policy of corporatization of the BTCL, and aid modalities such as Training, Technical Cooperation project (ICT Skill). Other development partners such as World Bank is also financing for corporatization and capacity building. Preparatory study for Rural Telecommunication project with a view to formulation of policy framework regarding the universal access has also been taken up and activated by the GOB in partnership with the GOJ and World Bank.Bangladesh Japan Information Technology (BJIT) LtdBJIT was the first joint venture ICT Company in Bangladesh by a Japanese company. Since its incorporation in 2003, it has grown rapidly as a total ICT solution provider. BJIT are dedicated to provide solutions like software development, web and e-commerce, and network solution. The company has full cooperation from the parent company at Japan in both the management and technical side.The company has developed software for renowned companies like NOKIA, Motorola, Panasonic, NTT Data, Study-Box, Connect Technologies, INT, ANK, Polygon Magic Inc. and also with companies in USA, Hong Kong and Switzerland. The company now employs over 140 software programmers in Bangladesh.State-run Pragati to assemble Mitsubishi sedan carsState-run Pragati Industries Limited is set to assemble sedan cars of the Japanese automaker Mitsubishi Motor Corporation in Chittagong from 2011.The price of such car will be at least 30 per cent lower than that of the price for existing and available Mitsubishi sedan cars, which are imported and marketed by a private dealer in the country. The meeting decided that a memorandum of understanding would be signed in this regard soon enabling Pragati to assemble sedan cars, a fast growing segment in motorized vehicles, first time in the country.The Japanese car maker showed the interest after companies from South Korea and Malaysia planned to build car plants in the country to tap the growing market. Sales of sedan cars increased substantially in the recent years as Bangladesh Road Transport Authority registered 61 cars a day between July and December 2009.Pragati, a subsidiary of BSEC, has been assembling popular brand Pajero of Mitshibishi. The company assembled 2,000 Pajero cars annually in recent years, which are purchased by public sector. Pragati will also assemble sedan cars for the private sector, along with the public sector, said the BSEC chairman. Besides, Pragati will market a new type of sport jeep instead of Pajero in another new plant which would require investment worth more than $10 million by the Mitsubishi, he added. The Japanese car maker has agreed to provide technological help in setting up a factory of spare parts.

Cultural ExchangesEvery year, more than a hundred Bangladeshi students receive Japanese Government Scholarships to study in Japan, and Bangladesh is one of the largest recipient countries of these scholarships in recent times. So far total about 2000 Bangladeshi student have been to Japan under the scholarship since 1955. Professor Mohammad Kibria is one of the renowned painters who studied in Japan as a scholarship student of the Japanese Government.Japan has extended assistance for the preservation of Monuments of Begerhat and Paharpur Bihar from 1992 to 1997, through the UNESCO/ Japan trust Fund for the preservation of the World Cultural Heritage. Experimental conservation work was successfully carried out, detailed plan and the restoration completed.Japanese Society in Dhaka and Spring Festival

Japanese Commerce and Industry Association in Dhaka (Sho-ko-kai) have recently published a booklet commemorating the 30th year of its inception, which looks back the history of the Japanese society in Bangladesh.

As the editor, Mr. Kunito Nishimura aimed at making the booklet "interesting to read, informative, and valuable as record." The contents are really interesting and I encouraged all Japanese who are involved with Bangladesh to read it. It is difficult to imagine the hardship of the life in Dhaka compare with Japan described in a round-table talk and some essays in the booklet. It reminds us again that in such a tough environment, Japanese people made utmost efforts to build the base of the development of Bangladesh and the ground of effective partnership between Japan and Bangladesh. Today's Bangladesh and the amicable Japan-Bangladesh relationship would not have been possible without those efforts.

This year's Spring Festival was held on February 17 with around 300 attendees. Both adults and children prepared very well for their performances, and the audiences including myself were impressed with the Japanese spirits. On the following day, the Indian dance by six Japanese women was outstanding, too, at the cultural programmers following the Bengali Speech Contest organized by the JUAAB.

Shaheed Minar in Tokyo

Laying foundation stone of the much-expected Shaheed Minar in Tokyo, in her last visit to Japan in 2005, Prime Minister Khaleda Zia hoped construction of the monument commemorating the language movement martyrs would further intensify the cultural relations between Bangladesh and Japan. Referring to activities of Japanese language teaching centre in Dhaka and Chittagong, and Bangla language teaching centre in Japan, she hoped the scope of learning each other's languages will expand further.

Celebration of Pohela BoishakhThere was an event "Boishakh Mela" to celebrate the Bangladeshi New Year "Pohela Boishakh" at the Ikebukuro West Park on April 16, 2011.In addition to a free medical consultation, there was a ceremony to celebrate the completion of the construction of a Shaheed Minar replica, which was inaugurated by Prime Minister Khaleda Zia in July. The Bengali community in the Japan celebrates the Bengali New Year with a street festival in Tokyo. It is the largest Asian festival in Japan and one of the largest Bengali festival outside of Bangladesh.Observance of the National Mourning Day 2011The Embassy of the Peoples Republic of Bangladesh in Tokyo, Japan, has observed the National Mourning Day and the 36th death anniversary of the Father of the Nation Bangabandhu Sheikh Mujibur Rahman in a befitting manner on Monday 15 August, 2011. Iftaar Mahfil following the discussion program organized by Bangladesh Community in Japan. All distinguished members of Bangladesh community in Japan are cordially invited to the aforementioned program.Observance of Victory Day on 16 December 2011The Embassy of the Peoples Republic of Bangladesh in Tokyo, Japan, is going to observe the Victory Day of Bangladesh in a befitting manner on 16 December 2011 (Friday). The days programs including official hoisting of the National Flag at the Chancery and offering of special Munajat seeking Divine blessings for the departed souls of the valiant Martyrs as well as for the continued peace, progress and happiness of the country; video projection on glorious memory of war of independence; discussion meeting on the significance of the liberation war.

IFF Announcement for IFF at Tokyo Big Sight

It's a great pleasure to inform that Bangladesh is going to participate with a notable business group, which includes 40 Knit/Woven/Leather companies and organizations, to the upcoming JFW-International Fashion Fair at Tokyo Big Sight during January 25th-27th, 2012. Bangladesh Pavilion at the Fair will be scheduled and operated by the Export Promotion Bureau (EPB) under the Ministry of Commerce of Bangladesh. Not only because of such a huge business group but also the Fashion-originated atmosphere well updated and empowered by our People and Industry.

Bangladesh and Japan, both the countries, have shared a relation of mutual friendship from the very beginning of the independent Bangladesh. They responded with their utmost effort to help each other in their greatest troublesome moment which includes mainly the cyclone sidr of Bangladesh and 2011 earthquake and tsunami of Japan.Japans response to Cyclone SidrJapan had responded to the Cyclone Sidr with a helping hand. Japan provided tents, blankets, sleeping mats, drinking water system, and electricity generator to the helpless and shelter less people of Bangladesh. Japan sent a search and rescue team consisting of a medical wing to Bangladesh. They also provided financial help with $1,500,000 of funding and $2,651,862 of uncommitted pledges.Japans response to Cyclone AilaJapan had expanded their hands towards Bangladesh on this disaster also.Bangladeshs response to 2011 earthquake and tsunami of JapanBangladesh sent a search and rescue team consisting of a medical wing to Japan. Bangladesh also gave medicines, 2,000 blankets, 500 rubber boots and 1,000 rubber gloves.Relief Supplies was also formally handed over the Japanese people affected by the massive earthquake and huge tsunami that hit the Northeastern coast of Japan on 11 March, 2011, as humanitarian assistance sent by the government of Bangladesh for.

Japans Economic Assistance to Bangladesh

Overall Picture of Japans Oda to BangladeshBangladesh as a newborn state had to face multidimensional challenges with tremendous food, foreign exchange crises for which she had to depend heavily on the Foreign Food Aid from Japan and USA and other international community. The relation between Bangladesh and Japan has been characterized by mutual trust, cordial friendship especially in the areas of economic assistance and cooperation. When we look at the Aid commitment and disbursement position of Japans ODA to Bangladesh, it reveals a vivid picture of Japans leading trend of providing ODA to Bangladesh, initially more in the form of Food Aid, Commodity Aid and Project Aid. Among the 20 major international donors providing donations to Bangladesh, Japan stands just after IDA (International Development Association) but bilaterally the largest donor to and development partner of Bangladesh. Japan, the second largest economy and technologically the most advanced nation in the world, has been able to project its positive image as the leading donor globally. Over the years, the relationship and economic cooperation between these two Asian Countries have been growing stronger and stronger. Since 1985 Bangladesh has ranked first as the recipient of Japans Grant Aid (roughly 10% of Japans total grant aid) with a moderate rate of increase annually.

Aid Grants: The Foreign Aid Flow chart reflects that over the period of 1971/72 to June 2004, Bangladesh received a total grant disbursed of US$ 3220.50 million and a total amount of loans disbursed of US$ 3439.50 million from Japan which stands the highest among the 20 major donors. Out of this amount total Project Aid disbursement stands at US$ 2605.805 million bilaterally from Japan and which is the highest among the donors. Till 1976, Japanese ODA was dominated by the Food and Commodity Aid, and there after the Project Assistance started increasing gradually. Unto 1980, the volume of Food and Commodity Aid was greater than Project Aid. The table reveals the fact that Food Aid stands the lowest in comparison to Commodity and to Project Aid, and it is only of 7.62% of the total Grant Aid amount and Food loan is of 4.75% of total loan disbursed over the said period. Again over the period, Japan has the second leading position in terms of Food Aid disbursement to Bangladesh, after the USA. In the initial years (1971-1976), Bangladesh had to have Food Aid largely in the form of grant because of its food shortage due to war and post-war situations, but gradually she attained her food sufficiency through some special internal policy programs like income growth/self-reliance movement/Green Revolution being supported heavily by the high fertility rate of her lands and adoption of Multi-crop Diversified Agricultural and Irrigation system, the declining birth rate achieved through successful Family Planning Programs over the decades. But it is also the fact that due to flood propensity and recurrence, Bangladesh requires instantly some food aid to meet up her emergency requirements which has also been reduced due to the gradual increase of efficiency in disaster management system. Project aid provided strong support to have permanent infrastructure development like construction of cyclone and flood shelter etc. On the other hand, it is also considered favorably that huge quantity of food grains are utilized through the Food for Work and Food for Education Programs which have contributed largely to the construction of local network of roads and to the increase of literacy rate reducing the rate of dropouts at the elementary school level. It reflects that Food Grant has been absolutely dominating over its loan over the whole period. It is also significant that from 1985-2005, no loan was provided as Food Aid.

Loans (Project and Non-Project): The Aid Flow chart shows that out of whole ODA disbursed to Bangladesh over the period of 1971-June 2004, the amount of loan was US$ 3439.50 million which is 51.64 % of the whole of ODA. It also reveals an increasing rate of commodity loan. This type of loan has been used to assist the balance of payments and fiscal revenue and to purchase/import raw materials and intermediary goods, machineries in order to provide support to the productive sectors and some priority projects. As macroeconomic management, commodity loans have been found contributing and supporting to the generation of foreign exchange by selling imported goods and to meet up the local cost of some projects. It is fact that Japan as donor and Bangladesh as the recipient country thrusts their importance on the effective appraisal, planning and formulation procedures and implementation and utilization of commodity loans and supply of necessary goods in the aid package with realistic commitment and feasible conditionality. The ex-post conversion of loans into grants through the process of debt relief mechanism reflects the system of non-credit worthiness and realistic policy which could accelerate long term growth and development. In order to meet fiscal deficits and to maintain balance of payment, import substitution industry building was given high priority and was supported by project aid significantly. And for the purpose of investment and promotion ex-post, infrastructure sector was provided with Project Aid on an increasing rate. It is also revealed from the Aid Flow Chart that both Project and Non-Project loans disbursed over the said period was higher than the grant. The disbursement chart shows sectors like Transport, Power, Water Resources, Physical Infrastructure, Industries, Agriculture, Oil, Gas and private sectors got priority and preference for utilization of project fund provided by bilateral, multilateral, OECD, OPEC and other countries donors.Debt Relief Grant Assistance (Drga):It is also true that Bangladesh has been benefited by the Debt Relief Grant Assistance (DRGA) arrangements and through this type of mechanism, Bangladesh gets back the amount she pays to Japan in the form of debt servicing in accordance with the decision undertaken in the Board of Trade and Development of UNCTAD in its session of 12 March 1978. The last agreement of the 25th DRGA 7th installment was signed on 16 April 2003. The GOJ adopted Debt Relief Measures in the form of JDCF (Japan Debt Cancellation Fund) which replaced the earlier DRGA. A Note of Exchange was signed between Bangladesh and Japan on 21 March, 2004 in this regard. Under this JDCF, Bangladesh will be getting the benefit of Debt Cancellation of about US$ 160 million each year up to the year of 2018. Bangladesh has started utilizing this Debt Cancellation Fund, especially in the Human Resource Development Projects effectively under which senior and mid-level officials of the government have been imparting training in different fields. Under this program, many officials and students from both GO and NGOs are getting scope of training, studying mostly in Japan. No doubt that the decision for debt relief through the creation of JDCF has been considered very effective and gracious gesture of the creditors towards the recipient LDCs including Bangladesh. Surely it has reduced the Bangladeshs burden of repayment of overdue loans. It has benefited Bangladesh in her human resource development efforts along with increasing her credit worthiness. It is also true to the fact that all of the loan projects could not have accrued equal success of implementation, but if we look at the total aid package, it reveals that the flow of grant aid in Bangladesh is gradually declining and bilateral aid has been decreasing with multilateral been increased. Bangladeshs debt obligation is mainly of public sector, with very negligible amount in the private sector. The outstanding figure of loans was 339001.3 million Yen (US$ 3131.94 million) as of June 2004. The rate of payments of Debt Service has also been increased. The total debt service payment in 2003/2004 is 13.72% of countrys merchandise export, 8.77% of exports of good and services and 1.8% of GDP. The Development Budget of Bangladesh also reflects that the share of external components gradually have been declined with the passage of time, though the extent of bilateral obligation has been increased. Bangladesh has been proved manageable well without rescheduling its loan repayment. Bangladesh has also been termed as less indebted country by World Bank.

Japanese investment in BangladeshJapanese investment in Bangladesh ranks 4th among the foreign investing countries, after the USA, UK, and Malaysia. So far about 146 projects with 100 percent investment or joint venture between Bangladesh and Japanese companies have been registered with the BOI having the figure amounting 1193.769 million US $. The areas of Japanese investment are chemical fertilizer, deep sea fishing, metal parts and components, automobile parts, golf shafts, camera parts and electronic accessories, jute twines, etc. During 2009-10 Japan has made individual and joint-venture invested in Bangladesh an amount of $2.624 million in 8 projects. Disaster Management and Environment DevelopmentNo doubt, Bangladesh is one of the worlds most disaster-prone countries owing to its geographic location, very extensive network of rivers and seas and changing climate. She has to face the increasing challenges of frequent occurrence and recurrence of floods, cyclones and other natural calamities. It is practical that when a disaster strikes it collapses all economic and social activities and damages the infrastructure as well as communication system creating tremendous human sufferings and miseries and consequent negative impact on the pace of poverty reduction... Disaster has been one of the major hindrances for effective poverty reduction in Bangladesh. Among the LDCs, particularly in Asia, Bangladesh has been the most adversely affected by natural calamities. Over the time, the Government and people of Bangladesh have been fighting out these challenges with indomitable courage and effective policy framework, and have developed commendable efficiency and homegrown strategies for prevention, evacuation and shelter, after-care services and rehabilitation and resettlement activities. In these initiatives, Bangladesh has been getting assistance from bilateral as well as multilateral organizations and collaborative efforts of the government of Bangladesh and the development partners have also been emphasized in the PRSP with a view to poverty reduction bringing a paradigm shift in disaster management. The Government of Japan, since 1971/72 till to-date, has always stood by the side of Bangladesh and her people with aid and assistance. JICA extends its cooperation to strengthen disaster monitoring systems, disaster forecast/warning and evacuation systems as well as the highly urgent and important area of infrastructure development. JICA also considers emergency relief during any disaster occurs. Major on-going and upcoming projects in the sector that JICA has implemented are Grant Aid Project for Improvement of the Meteorological Radar System in Coxs Bazar and Khepupara (2005-2006).The project, funded by the Japanese Government, aims to replace Coxs Bazaar and Khepupara meteorological radars to continue monitoring tropical cyclones in the Bay of Bengal towards providing more accurate forecasts/warnings and to contribute to the reduction of devastations and causalities by tropical cyclones. JICA funded and facilitated the smooth implementation of the project. Grant Aid Project for Multi Purpose Cyclone Shelter (MCS) Project (Phase V) (2004-2005). JICAs cooperation for constructing high-floored shelters as a priority matter as well as strengthening monitoring systems and preparing forecasting and warning systems, assisted immensely in coping with natural disasters.Human lives and livelihood in Bangladesh are intricately intertwined with nature. Bangladesh is a signatory of the Multilateral Environmental Agreement by which government is committed to undertake certain environmental management actions which will be largely beneficial to the poor. Policies and actions of the Government must not cause marginalization of the poor and force them to intensify over utilization of the open access natural resource base, or make them more vulnerable to pollution hazards. The majority of the poor are highly dependent on natural resources; the improved management of natural resources is a prerequisite for poverty reduction. Conservation and regeneration of natural resources through appropriate intervention, investment and management have to be ensured so that the poor and vulnerable communities can depend on the use of natural resources on a sustainable basis. Improvement of Environmental System specially in the Mega city Dhaka where construction of population density is abnormally high such as-Development of Sewerage System/Waste Water Management project/ supply of drinking water system have been given priority. Minimization of the huge gap between water demand and supply. The supply capacity is three-fourth of the demand in Dhaka city and one-third in Chittagong. Japan will provide support to the construction of water supply and sewerage systems by Yen Loan together with Technical Assistance, Improvement of Public Health and promotion of industrial development along with the improvement of water quality through local govt. institution (such as CWASA and other cities) having no assistance from other development partners. The improvement of the weak management system and poor financial position of local govt. institutions is the prime concern of our economic cooperation to address.

Towards a Permanent Solution to FloodsBangladesh is now languishing under serious floods. Japan, as well as other countries and international organizations, are supporting Bangladeshi efforts to overcome the immediate damages caused to human lives and properties by the floods.However, as the Prime Minister of Bangladesh rightly pointed out, permanent measures are required along with short-term ones to reduce the extent of flood damage in the years to come, as floods are quite recurrent in this country. There is a dire necessity to take lessons from the past experiences to bring about permanent solutions irrespective of the time, efforts and resources those may require.Japan suggests an initiative like "Bangladesh Land Remodeling Plan". Bangladesh may think about undertaking a move towards transforming or remodeling lands so that designated residential and industrial areas can be elevated above the floodwater.First, designate both residential and industrial areas to be protected all over Bangladesh.Second, build solid concrete framework surrounding each designated area. Then, fill their painstakingly with silt taken from rivers dredging (and concrete, if necessary) over the period of, say, thirty years.The process of such a transformation may be time-consuming and may require the tenure of several administrations. But such bold measures based on national consensus would bear long-term and permanent fruits for the people of Bangladesh.Waste Management System Development study by JICA is going on Dhaka. Solid Waste Management Project may be taken in 2009 by JBIC, GOJ. Collaboration between Local Govt. Institutions of Bangladesh and GOJ through JICA/JBIC water supply project, Dhaka Water Supply & Sewerage Project, Dhaka Solid Waste Management Project/Water Treatment Technology-Japans support to the construction of water supply and sewerage system by yen loan & technical assistance are being provided. Karnaphuli Water Supply Project was agreed upon and signed in June 2006 with JBIC for which the Government of Japan has been funding an amount of Yen 12,224(Twelve thousand two hundred twenty four) which is now under implementation .A project titled as Small Scale Water Resources Development Project has been included by JBIC for loan assistance in FY 2007 and is waiting for agreement to be signed. Khulna Water Supply and Karnaphuli Water Supply (II) Projects are also under proposal in the Yen Loan Rolling Plan on priority. JICA also extends its financial as well as technical and technological assistance to help solve Bangladesh the environmental problems like- solid waste, inadequate sewage system, air and water pollution. JICA is helping in supporting the formulation and implementation of the overall urban policy and a Master Plan for the Solid Waste Management in Dhaka city. JICA is also extending the assistance of the GOJ in order to mitigate Arsenic problems and thus help Bangladesh to ensure human security. JICA has undertaken Project for Sustainable Arsenic Mitigation under Integrated Local Government System in Jess ore (2005-2008) and is also planning for the Project for Strengthening Water Quality Examination System in Bangladesh. Under Japanese Grant Aid Assistance, JICA is also providing Policy Support through Japanese Experts and Trainings.Bangladeshi ResilienceLast years, there were a lot of disasters around the world. During the end of the year, tsunami hit countries around the Indian Ocean and claimed hundreds of thousands of lives. Japan, for its part, suffered from huge typhoons and a severe earthquake in its central region. Bangladesh also heaved under heavy losses from the biggest flood in July and August since 1988 and from another flood in September due to the heaviest rainfall in the last fifty-four years. In order to recover from these damages, the Government of Japan gave emergency aid and food assistance worth US$ 6.8 million. A significant portion of this fund was allotted for purification and restoration of wells for drinking water, and setting up sanitary latrines to avoid post-disaster outbreak of diseases in epidemic forms.Mr. Morten Giersing, Resident Representative of UNICEF, went to Koshba, Brahmanbaria, which is located next to Tripura, Northeast of India, in order to inspect how our assistance was being used and carried out.Human Development (Education and Health)

EducationEducation is the backbone of a nation and the effective instrument that enforces all development efforts such as one of human development, poverty alleviation, reduction of gender disparity and attaining socio-economic implement. For expansion of quality education at all levels this sector receives the highest budgetary allocation. Reforms measures in accordance with recommendation of Education Commission have also been undertaken. Measures have been taken to ensure womens empowerment by the expansion of Female Education, increased participation of women in socio-economic development activities, providing special opportunities to women like exception of tuition fees upto class XII including awarding stipends to female students, financial support for purchasing books and payment of examination fees enabling female to appear public examination with increasing importance for technical education. New infrastructure development for educational institutions have been prioritized and strengthened along with promotion of environment and renovation of old schools and colleges. The GOB is determined to ensure Universal Primary Education by 2015 to achieve fully the MDGs. Mothers can draw the stipend for their children at the primary level which reflects the GOBs commitment to Women Empowerment. At present the male: female ration of students at primary level is 50:50 which was only 55:45 in 1991. The distribution of books at free cost at the primary level has importantly helped the poor students continue their studies. The GOB has made special provision for the recruitment of female teachers in the primary schools against the existing vacancies. The recruitment rules have reserved 70% quota for the female teachers in the primary schools against the existing rules have raised the proportion of 21.09% in 1991. Japans ODA has increasing scope, space and effective role to play to add more to have socio-economic sustainability in Bangladesh and will help create opportunities for the foreigner as well as internal investors and will attract FDI. The changing role of Japans ODA policy strategy on the perspective of globalization is comprehensive and open in nature. In order to ensure the quality of teaching as a consistent and effective means for transfer of knowledge to attain effective result and to build student, JICA has under taking projects in capacity development of Bangladeshi teachers to improve quality of teaching materials and method, particularly in primary education.

Healthcare and Medical ServicesPublic expenditure on Healthcare has been increased. Bangladesh has achieved some spectacular success in this sector. In order to improve the overall health status of the nation, government has successfully made effective interventions like expansion of medical facilities, establishment of medical colleges and new hospitals at the district, sub-district and union levels, construction of national health centers, construction of training centers at the district level. Government has setup Medical University at the national level. The GOJ through JICA has been providing aid assistance with extension of cooperation for the improvement of maternal and child health and controlling infectious diseases. JICA has under taken some projects like Safe Motherhood Promotion Projects, Expanded Program of Immunization Activities (1999~) Filariasis Control Program (2004~). Government has further made its commitment towards achieving MDGs. Over the decades, the actions and measures taken by the GOB as well as NGOs have been proved very effective and result-oriented and have brought some spectacular outcomes.ICDDRB and Health Sector ReformICDDRB was established in 1960 in Dhaka as Cholera Hospital in Bangladesh. It made a fresh start as an international organization in 1978. Oral Rehydration Saline (ORS), which was developed by ICDDRB in the 1960s, has become a handy remedy for diarrhea throughout the world, and now saves over three million lives annually. For this accomplishment, ICDDRB was awarded the first ever 'Gates Award for Global Health' in May 2001.The finest points of ICDDRB are not only its world-class research standards, but its ability to cure 120,000 people annually, and train up many doctors and other medical practitioners. Through these "tripartite" activities, ICDDRB develops the easiest and cheapest remedy for diarrhea, and offers it to hospitals and clinics in all parts of Bangladesh. As long as malnutrition situation is not improved, patients will come back to hospitals. Therefore, ICDDRB also teaches mothers how to cook to get enough calories, mainly using vegetables, before leaving the hospital. ICDDRB tries to spread this method all over the country.Now ICDDRB is coping with not only diarrhea, but also reproductive health, family planning, dengue fever, infectious diseases such as tuberculosis, nutrition, safe water, HIV/AIDS, etc. Moreover, it is handling problems related to the aged, violence, health for slum people, etc. It uses social sciences as research tools. If ICDDRB continues to teach improved health care methods and management talents, and offers them to hospitals and clinics in all parts of Bangladesh, the health sector in this country will improve gradually.Japan has invested directly and substantially in the past in research work of International Center for Diarrheal Disease Research, Bangladesh (ICDDRB) that has benefited poor people. The Centre's work is consistent with Japan's support for the generation of new health knowledge of global or regional significance, and for building research capacity in developing countries for pro-poor health research. Few countries have such a long association with ICDDRB and its predecessors, the Cholera Research Laboratory (CRL) and the Pakistan-SEATO CRL, as does Japan. Scientific collaboration began even earlier, but Japan began to provide annual funds to ICDDRB in 1980 and was a regular contributor to the ICDDRB since then. Japan's interest in the Centre has grown over the years. Japan was one of the founding sponsors of ICDDRB and its financial contribution increased considerably since 1990s. In 1994, the annual Japanese contribution was raised by some 80% to US$ 680,000, approximately 6.5% of the Centre's total budget. Since then, this dollar level of commitment was maintained and in 2000, Japan gave a record amount of US$1.78 million to ICDDRB. This annual contribution included the usual core contribution as well as US$1 million to the Centre's Hospital Endowment Fund. In year 2001, its contribution was at US$980,000.Since its internationalization in 1978, Japan has made major investments in the Centre. These investments should be protected and capitalized upon, particularly now at a time when the institution is acknowledged to be highly productive and to be making extremely important contributions to the health and well-being of billions of people worldwide. The Centre serves as a model of collaboration with government and people of Bangladesh in a way that respects and supports each other and ultimately benefits the people of Bangladesh and other countries.The Centre successfully transitioned from a laboratory, highly focused on cholera, to a full-fledged comprehensive health centre of research, service and training. Furthermore, it has shown how an institution with vision, purpose and principles can thrive through changes in governments, donor priorities, and senior staff. In short, it has matured into a world-class institution. In addition to the financial support to the Centre, Japan has also contributed to the centre in terms of joint scientific projects. More than 25 Japanese scientists have participated in the Centre's scientific projects during the last decade. These collaborations have benefited the Centre, and we believe the Japanese scientists have also benefited through this experience in Bangladesh.

Japan Bangladesh Friendship HospitalJapan Bangladesh Friendship Hospital is currently one of Dhaka's leading hospitals with its 100-bed premise located in Central Dhanmondi at 55 Satmosjid Road, Jigatola, Dhaka, 16 years ago, this hospital was initially founded by Bangladeshi young doctors pioneer laparoscopic surgeon Dr. Sarder A. Nayeem and Pioneer pain specialist DR Jonaid Shafiq in Gulshan who wanted to establish this hospital in partnership with their Japanese doctor-friends. Japan Bangladesh Friendship Hospital was first inaugurated in 1993. From then onwards, Japan Bangladesh Friendship Hospital never had to turn back. It always moved forward towards the path of success and progress.

Power and EnergyPower is the key to development. The demand for power as a source of energy is rising in many spheres starting from industries to day-to-day demand of the general public, agriculture and service sector. In an electrified village, the annual income of an electrified household is Tk. 92,963 which is 65 percent higher than the income of a non-electrified household. Government has involved private sector along with the Public sector for power generation so that it can reach electricity to the doorstep of every household by 2020.In Bangladesh at present only 25% of the total population and 31% of all households have access to electricity. Still there is a considerable gap between demand-supply of power, and issues such as routine power outages and frequent voltage fluctuations are forming a bottleneck for economic growth. JICA has been extending possible technical cooperation in collaboration with investment projects in this sector. Projects like Strengthen Management and Performance Standards and Improvement of Operation and Maintenance of Power Plan including Policy Support through the Expert Dispatch have been assisted by JICA. JIBC has given priority for Power Generation and Transmission and Distribution of Bangladesh and has funded projects in 2005, 2006, and has also included projects in this sector from 2007 to 2009. In 2006, JICA has signed a project titled as Grid Substations and Associated Transmission Lines Development of yen 4642 million which is under implementation now and has included the project named as Generation Capacity Project in Haripur in the 29th Loan Package awaiting for signing in 2007.

Infrastructure Development (Transportation and Communication)

In the infrastructure building initiatives, the contribution of Japan and the success of the projects have very tangible benefits. Transport System- Road and Bridge Development of the Public Transportation Network system the Government of Japan has provided financial as well as technical and technological support. JJICA has also targeted further development of maintenance system of roads and bridges. The construction of the Jamuna Bridge has accrued benefits more than it was expected in the Appraisal in cost-benefit analysis. The construction of the Jamuna Bridge in 19978(yen 7.768 billion), the Meghna and Meghna-Gumti bridge in 1991 & 1996(yen 8.148 billion and 8.343 billion) respectively and the construction of Pakshey bridge in 2003(yen 18.066 billion) and the Rupsha Bridge in 2005(yen 8.30 billion) stand as landmark in the history of ODA Loan and co-financing project implementation with WB, IMF and ADB. Japan has already completed the Feasibility Study for the construction of the Padma Bridge in 2004-2005, and has assisted the development of partnership with ADB and World Bank for its further study. The Three Years Rolling Plan of JBIC (2006 to 2009) reflects hopes for the inclusion and commitment of the Government of Japan towards funding the Construction of the Padma Bridge. Prospects for getting ODA fund and technical cooperation from Japan for Establishment of a Deep Sea Port and Construction of Subway or Monorail for Dhaka city Public transportation are on discussion with great hopes.

Padma Bridge and Promotion of DemocracyEven before Bangladesh achieved its independence, Japan widely cooperated in the nurturing of talented people, which is necessary to build a nation. Since 1955, JICA has invited more than 4,000 Bangladeshis to its training programs in Japan. These days, JICA experts have eagerly been working on the future of Padma Bridge. Since it was decided that the bridge construction point would be between Mawa and Janjira, the feasibility study team embarked on its work on modalities for construction of the proposed bridge, and issued an interim report in late September. The report concluded that the length of the bridge would be 5.58 kilometers, which is longer than Jamuna Bridge. It recommended that the bridge type should be PC Extradosed Girder by linking or connecting several suspended girders.According to this method, the span length between bridge piers will be 180 meters. This is almost twice as long as that of Jamuna Bridge at 100 meters. Reducing the number of piers cuts down expenses. Each pier comprises a caliber of 30 meters and a height of 100 meters. "Social Environment and Resettlement Study" prior to the construction of the bridge and approach roads is still being drawn up. JICA experts plan to arrange meetings between resettlers of Jamuna Bridge and people potentially affected by Padma Bridge to reduce their anxieties. This will ensure that they are not forced to move, but will rather agree to move willingly. Some donors ask for hasty democratization, because they wish developing countries to be democratized within the shortest possible time. However, it is not as easy as they think. As advanced democratic countries, donors should show some ideas or lead ways to realize the process of democracy. From this viewpoint, the above solution of problems through discussion among the residents suggested by JICA experts seems to be one of the most convincing ways to teach democracy to the people in this country.The Inauguration of Rupsha Bridge and Development in South AsiaOn May 21, there was the inauguration ceremony of Khan Jahan Ali Bridge (Rupsha Bridge) which was built with financial assistance from Japan. Mr. Shuzen Tanigawa, Senior Vice-Minister for Foreign Affairs attended the ceremony. This was as immense a construction as Lalon Shah Bridge (Paksey Bridge) that was opened to traffic last year. Rupsha Bridge will bring huge benefits to Bangladesh and neighboring countries; it will not only contribute to economic and social development in and around Khulna, the third biggest city in Bangladesh, but also make big progress in building a transportation system so that Nepal and Bhutan could utilize the Mongla Port, the second biggest port in Bangladesh. Bangladesh took an initiative to establish the South Asian Association for Regional Cooperation (SAARC) with six other countries in 1980 in order to achieve prosperity through regional cooperation. However, due to political strains and disagreements between member countries on several issues, the SAARC has not achieved expected results yet. Recently, there were more VIP visits between Japan and India to expand bilateral trade and investment relations with the purpose of expanding the strategic partnership. It is right for Japan to give higher priority to deepening its ties with India, a big regional power, in devising.

Poverty Alleviation and Economic Growth

Bangladesh has laid her emphasis and firm commitment for Poverty Alleviation and Economic Growth of Bangladesh through the formulation of the PRSP (Poverty Reduction Strategy Paper) in October 2005, which highlights the principles of country ownership and results-oriented one. It outlines a comprehensive medium-term strategy for the implementation of pro-poor growth, effective safety-net programs and human development, more social inclusion and empowerment of the poor and the women, promotion of good governance and service-delivery practices towards attainment of the MDGs. It has focused a compelling agenda for concentration of total efforts of the nation on employment, nutrition, quality education, maternal health, local governance, criminal justice, sanitation and safe water. The government of Japan has set three goals and nine priority areas of Japans ODA for promoting poverty reduction in Bangladesh which supports the PRSP goals of Bangladesh both in principle and operational strategy.

Goal 1: Social Development with Human Security such as- Education, Health, Environment, Disaster Management; Goal 2: Economic Growth: Agriculture and Rural Development, Power, Transportation, Private Sector Development; Goal 3: Governance: As a member of Japanese ODA team, JICA has taken up major on-going and upcoming projects in Bangladesh that are aim to contribute to poverty reduction under the mentioned framework. JBIC also unveiled a Medium term Strategy for Bangladesh for Overseas Economic Cooperation Operations (OECOs) which envisages the 3-Years Rolling Plan Strategy for Bangladesh. This Strategy centers its priority on seven priority areas: Support for Poverty Reduction, Infrastructure development for economic growth, support for environmental promotion and anti-pollution measures, assistance to address global issues, supporting human resource development, supporting the dissemination of Information Technology and provincial development. Based on these strategy JBIC has been preparing and providing funds for implementation of 3-Years Rolling Plan in these priority sectors.Poverty Reduction Strategy Implementation Forum"Poverty Reduction Strategy (PRS) Implementation Forum" was held with the attendance of the Government of Bangladesh and development partners (countries and international organizations among others) from 15 to 17 November. This forum was titled "Bangladesh Development Forum (BDF)" till last year, but Bangladeshi Government decided to make it a forum for the implementation of the "Poverty Reduction Strategy Paper (PRSP)," which had been finalized after a few years' preparations. At the BDF last year, Bangladeshi Government was not able to show many improvements despite its promise at the previous year's BDF. It drew dissatisfaction and severe criticism by some donor countries, which seemed to have made Bangladeshi Government initially think that some small donors were always criticizing it in spite of the small amount of aid they extended. Therefore, Bangladeshi Government wanted to abolish BDF and instead, hold a forum every alternative year, saying that it cannot make meaningful progress within a year. We pointed out that Bangladeshi Government needs to continue consultations with all the donors for the following reasons: donors criticize the government because they genuinely hope for development of Bangladesh as effectively as possible; the amount of their aid is high compared to their GNPs, which shows their clear willingness for Bangladesh's development; Bangladesh needs foreign assistance regardless of its size for the time being in order to take a leap from the current development level; in particular, Bangladeshi Government should not treat small donor countries lightly since they, if united, have a strong voice at boards of WB and Asian Development Bank (ADB). As a result, it hinders effective takeover if a forum is to be held every alternative year. In the case of Japan, the local taskforce is divided into 12 sectors and sub-sectors, which run implementations, improvements and publicity of cooperation projects on a yearly basis. Therefore, we need to have consultations with Bangladeshi Government to summarize and appraise those activities every year.At the same time, we appealed to the donors' side for more constructive criticism against Bangladeshi Government. Also, we had to be very careful in order not to make a gap between major donors and smaller donors. Because, at that time, four major donors (WB, ADB, UK and Japan) were deepening cooperation, which was per se a very welcoming progress. After discussion among donors, Chief Representative of USAID, Mr. Gene George, was elected as new chairperson of the Local Consultative Group (LCG), and with his leadership, cooperation among donors became well coordinated. At the same time, we held frequent consultations with Bangladeshi Government. The new PRS Implementation Forum was thus realized. After the Hon'ble Prime Minister Khaleda Zia inaugurated the forum, intensive discussion was held at five individual sessions; PRSP implementation; social development; trade, investment and private sectors.

Japans Other Economic Assistance to BangladeshBy 2004, Japan had become Bangladesh's fourth-largest source of foreign direct investment, behind the United States, United Kingdom, and Malaysia. Japan's political goals in its relationship with Bangladesh include gaining support for their bid to join the United Nations Security Council, and securing markets for their finished goods. Japan is a significant source of development aid to Bangladesh.The experience of GSP utilization shows that due to many supply side constraints, often the preferential market access remains only in paper. The system of standard compliance is very complicated and costly which often not possible for LDCs to afford. The capacity building and technical assistance are essential for realizing the potential into reality, which have been generated through the extended preferential treatment of EU and Japan.The following is a short list of measures, needed to be taken for overcoming supply side constraints by Bangladesh:1.Establishment of Food Technology Research Institute (lessons can be learnt from Indian experience of establishment of Central Food Technology Research Institute (CFTRI);2.Establishment o f Packaging Technology Institute;3.Establishment of Agricultural Processed Food Products Wing under EPB to help the agro-products exporters (Indian experience: APEDA);4.Establishment of Product Specific Institutions to guide the manufacturers complying standards, fashion, test and promotional techniques;5.Building capacity to deal with trade remedies including ADD and CVD cases6.Building capacity at the enterprise level to ensure compliance with SPS-TBT standards7.Providing training in SPS-TBT issues for the entrepreneurs8.Providing support for promotion of marketing of the identified agri-products9.Preparation of Hand Book of Rules of Origin of major export countries and organize training for exporters: BFTI10.The experience of GSP utilization shows that due to many supply side constraints, often the preferential market access remains only in paper. The system of standard compliance is very complicated and costly which often not possible for LDCs to afford. The capacity building and technical assistance are essential for realizing the potential into reality, which have been generated through the extended preferential treatment of EU and Japan.11.The following is a short list of measures, needed to be taken for overcoming supply side constraints by Bangladesh:12.Establishment of Food Technology Research Institute ( lessons can be learnt from Indian experience of establishment of Central Food Technology Research Institute (CFTRI);13.Establishment of Packaging Technology Institute;14.Establishment of Agricultural Processed Food Products Wing under EPB to help the agro-products exporters (Indian experience: APEDA);15. Establishment of Product Specific Institutions to guide the manufacturers complying standards, fashion, test and promotional techniques;16.Building capacity to deal with trade remedies including ADD and CVD cases17.Building capacity at the enterprise level to ensure compliance with SPS-TBT standards18.Providing training in SPS-TBT issues for the entrepreneurs19.Providing support for promotion of marketing of the identified agri-products20.Preparation of Hand Book of Rules of Origin of major export countries and organize training for exporters: BFTI21.Providing training on SPS-TBT Compliance22.Initiate bilateral arrangements for JAS and JIS Compliance for Japanese market23.Launching relevant national standards for auto-compliance24.Equipping BSTI for international standard compliance testing at pre-certification stage25.Organize export fairs in EU and Japan26.Development of e-commerce for product selling27.Development of product promotion facilities based on importing country language. 28.Providing training on SPS-TBT Compliance29.Initiate bilateral arrangements for JAS and JIS Compliance for Japanese market30.Launching relevant national standards for auto-compliance31.Equipping BSTI for international standard compliance testing at pre-certification stage32.Organize export fairs in EU and Japan33.Development of e-commerce for product selling34.Development of product promotion facilities based on importing country language.

JBCCI & Private Sector DevelopmentJapan-Bangladesh Chamber of Commerce and Industry (JBCCI) were also launched in 2004. It was big event for us, but only the very first step towards a new trade and investment relationship. A large number of Bangladeshi people are still looking to Europe and America for business. However, there is a growing business potential in Asia, and Japan is an integral part of it. JBCCI organizes a series of programs for its new members to promote trade and investment.Vibrant private sector is the key to development of Bangladesh. A number of young Bangladeshi entrepreneurs who came back from foreign countries want to begin business here. Such "repatriation" is an encouraging trend, and Bangladeshi assets overseas will hopefully follow suit. Japan offers new opportunities for those entrepreneurs for the future development of this country.We find the emergence and presence of a strong private sector in the national economy of Bangladesh. In the FY 2005-2006, the rate of private investment is 18.67%. 75% of our total investment in the national economy comes from the private sector. Government is persistently encouraging private sector involvement in various service sectors including power, energy, mining, transport and communication, education and healthcare. Formation of the Board of Investment and the Privatization Commission, and implementation of extensive reform measures in the capital market are conspicuous moves in this direction. Privatization in the banking and non-financial institutions along with reforms is underway. Textile and garments industry and pharmaceuticals have preferably been taken for privatization at a faster pace. The on-going process of denationalization of the industrial as well as commercial is advancing steadily but with speedy pace. Service sectors like telephone and ICT have been made open for private investment from both internal and external. The government of Bangladesh has formulated Private Sector Guidelines to encourage more participation of private sector. Government of Japan through JICA and JBIC has recently made interventions for Private Sector Development (PSD). JICA is participating in the Private Sector Development Support Project (PSDSP) in order to enhance the competitive strength of Bangladesh in a post-MFA world. The PSDSP is a collaboration project between the Government of Bangladesh and donors such as World Bank, DFID, DIDA and EU. JICA has contributed to its design process and considered to join the implementation stage as well.

Human Resource DevelopmentJapan offers Japanese Development Scholarship (JDS) for the high quality people and plays important role in future for developing our country in various fields. People are the assets of the country. Japan, with small land and little natural resources, has achieved economic advancement thanks to its hard-working and committed people. However, the people at various levels and in many fields can take their own initiatives in actually getting things done.The Japanese Government invites more than 400 Bangladeshis to Japan under various training and scholarship programs every year. Japan will adopt more measures or arrangement be worked out so that the knowledge, capacity and inspirations that those people acquire in Japan would be surely utilized for the development of this country. Recently she has instituted a project for post graduate studies for students of Bangladesh on which about 30 students will be studying in Japan annually. This is in addition to Monbu Kagakusho and other programs that are in place.

Agriculture, Rural Development and Import SubstitutionBangladesh has achieved a steady growth rate over the last decade. In 2005-2006, the economic growth rate was 6.7%. The combined contribution of all sub-sectors of agriculture (crop, livestock, forestry and fisheries) to GDP is about 21.91 percent of which fisheries sub-sector accounts for 5.03 percent and the crop sub-sector alone is projected to contribute 12.10 percent to GDP. Of the total labor force in Bangladesh, 51.7 percent are engaged in agriculture (BBS Labor Force Survey, 2002-2003). In spite of the economic growth the Bangladesh has achieved, about half of her population still remains below the poverty line of which around 80 percent are resided in rural areas. Agriculture and Rural Development is perceived as an important sector in the acceleration of pro-poor growth and to achieve MDGs by 2015. JICA aims at agriculture based rural economic growth and poverty reduction of rural people. JICA has implemented Poultry Management Technique Improvement project and been taken Participatory Rural Development Project and Portable Steel Bridge Construction of Upzila and Rural Roads and income generating activities for the Landless and Marginal Farmers and promoting heart to heart relationship in rural Bangladesh in support to Bangladesh initiatives. Japanese assistance for self sufficiency in food through technical assistance, training and domestic production of inputs like fertilizer is very conspicuous. Its support for agriculture and forestry by way of creation of institutions like IPSA (now an Agricultural University) and CERDI (a core extension training centre now) will continue to bring fruit to the sector. Japan supported immensely for achieving self sufficiency in production of fertilizer. Starting with co-financing of the Chittagong Urea Plant, she assisted in setting up two other major fertilizer plants. Japan contributed in setting up 67% of the fertilizer production capacity of the country. Including the knowhow and transfer of technology, this was a great contribution in achieving self sufficiency in food. Steps have also been taken in strengthening of water management departments/organizations. The GOJ is extending support through JICA under taking Small Scale Water Resource Management project, Feasibility Study, Irrigation Project Technical Cooperation Project, and Rural Infrastructure Development Project. ADB, WB, Netherlands and others will also provide financial assistance in partnership.

Assistance to ward off post-MFA BacklashIt goes without saying that textile is one of the key industries in Bangladesh. However, with the phasing out of the Multi Fiber Agreement (MFA) at the end of this year, Bangladeshi textile industry is affected by international competitions, especially with China. Thus, the government of Bangladesh is taking various measures to increase its competitiveness, such as the improvement of the quality of cheap standardized cloths based on competitive labor force, shortening of delivery or lead time for export, and, to achieve this, big improvement of Chittagong port is being aimed at. Japan assists Bangladesh hand-woven and apparel industry. The characteristics of cloths made in Rangamati are very attractive. They come in vibrant colors and astonishing designs, but are markedly different from other Bangladeshi cloths and attires. Bright color is also a hallmark of Bangladeshi paintings. The apparels of Rangamati are influenced by the beautiful nature of Kaptai Lake or hills in Rangamati.

Tourism Promotion in BangladeshJapan helps Bangladesh in promotion of tourism industry. There are some points to be checked. These are First, Bridging the gap and improving the negative image are extremely important, not only because they would contribute to building the Bangladesh people's rightful self-respect, but also because they would help the foreigners to develop balanced and objective views about this country, facilitating possible direct investment for economic development in various sectors.Second, to improve this image, tourism could play a vital role. Tourists who visit this country and witness its many positive aspects will relate those to their friends and relatives after returning to their respective countries.Third, tourism is a main source of foreign exchange earnings and creating a very large number of jobs. It could be a powerful engine for national economic growth. No country, including Bangladesh, can afford to neglect such important industry as tourism.Fourth, apart from its economic role, tourism could play an equally important role in the promotion of cultural sector. When we see the success of tourism industry and cultural exposure of India and Thailand, we can notice that these countries have very successfully exported their own ethnic cultural image.Fifth, the National Museum needs to be more attractive. While there were a lot of interesting exhibits there, I noted that there was also substantial room for its improvement such as light and display.Sixth, the country needs to promote cultural activities, provide adequate security for the tourists here, ensure better maintenance of the tourist places, improve infrastructure, beautify Dhaka, and drastically improve traffic discipline of pedestrians, rickshaws and other vehicles.Seventh, the Government of Bangladesh could announce that the year, say, 2005, should be the first Bangladesh tourism year. It could then launch a nationwide campaign to mobilize all the ministries and people to implement the above projects in the respective fields, like initiating drives to improve security, beautifying Dhaka, improving traffic situations, etc. by the end of 2004. In the process of carrying out this campaign, we can expect to strengthen the national identity by mobilizing the entire nation towards a single goal.

Important Agreements between Japan and Bangladesh

Japan and Bangladesh have maintained friendly relations since February 10th, 1972, through economic and technical cooperation, cultural exchanges and mutual visits. Japan is a major development partner for Bangladesh, extending support to the efforts of Bangladesh for its economic and social development. The two governments signed the Agreement on Technical Cooperation between Japan and Bangladesh on December 8th, 2002 to strengthen further mutual technical cooperation by consolidating its infrastructure and simplifying its process under a single umbrella framework.Mutual support and cooperation in international arena have also produced excellent results and deepened the trust between both governments. In private economic sector, the bilateral relations are increasingly strengthened and diversified. Agreement between Japan and the People's Republic of Bangladesh concerning the Promotion and Protection of Investment entered into force in 1999.To facilitate trade and economic cooperation between Bangladesh and Japan many bilateral agreement and contract have been agreed upon by these two countries. A list containing those agreements given below

Name of the AgreementsDate of sign

1Exchange of Notes concerning the Dispatch of Japan Overseas Cooperation Volunteers.1973

2Agreement for the Exchange of International Money Orders.1978

3Agreement for Air Services.1980

4Cultural Agreement1982

5Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income.1991

6Agreement concerning the Promotion and Protection of Investment1999

7Agreement on Technical Cooperation2002

8Loan Agreement on Paksey-2 Project.2003

9Exchange of Notes on 1.46 billion USD Debt Relief Measure2004

10Loan Agreement of 11,345 m Yen for Eastern BD Rural Infrastructure Dev. Project.2005

11Record of discussion between Japan Intl Training Cooperation Organization (JITCO) and the Ministry of Expatriates' Welfare and Overseas Employment.2005

12Bangladesh-Japan Cultural Exchange Agreement.2005

13Exchange of Notes, Record of Discussions, Agreed Minutes concerning the Project for improvement of Metrological Radar System at Coxs Bazar and Khepupara.2005

14Record of Discussions on Technical Internship Program2005

15Loan agreement for US$ 60 million towards Emergency Disaster Management Projects.2008

16Japanese Grant for Human Resource Development Scholarship (JDS) of 294 million.2008

17Exchange of notes on Improvement of Audio-Visual Equipment of Bangladesh National Museum of 62,300,000.2008

18Japan Debt Cancellation Fund (JDCF) worth of BDT 46 billion/ US$680 million.2008

19Agreement on Technical cooperation between the GOJ and the GOB.2008

20Note of Exchange worth 1.2 billion Japanese Yen on Improvement of Solid Waste Management in Dhaka towards the low carbon society.2009

21Exchange of notes relating to 30th ODA loan package worth 39,749 million.2009

22Projects under 30th ODA Loan Agreement.2009

23Comprehensive Economic Partnership Agreement (CEPA)2009

Some Important Agreements:Cultural AgreementThe Government of the People's Republic of Bangladesh and the Government of Japan (hereinafter referred to as "the two sides"), desirous of further strengthening the friendly relations and of developing the cooperation between the two countries in the fields of education, culture, sports and journalism, an