The Spanish government's First Vice President Nadia Calvino was elected chair of the group of finance ministers and central bankers that advises the IMF's board, the organization announced Thursday.    Calvino, who is also her country's economy minister, replaces Swedish Prime Minister Magdalena Andersson as head of the International Monetary and Financial Committee (IMFC), and will remain in office for two years, beginning January 3.    The IMFC consists of 24 members who are central bankers and governors, finance ministers or officials of equivalent rank, who are chosen from among International Monetary Fund member countries.    Calvino has been Spain's first vice president since July and economy minister since 2018.    She previously held several positions at the European Commission, including director general in charge of the budget from 2014 to 2018.    The IMFC is the main advisory body to the IMF's board of governors and deliberates major policy issues. Source: AFP/BSS AH

In continuation of constant emphasis on boosting self-reliance, the Indian government has thrust renewed vigor into various sectors, predominantly, in the manufacturing arena. Within this segment, the toy sector has formed a significant chunk of a developing economy that is slowly coming of age. Toys or gaming have served as primary contact points for most children in school as well as within the confines of their homes for quite some time now. As instruments of engagement, these have the potential to significantly impact the mental health of an individual, clearly influencing one's ability to be creative. Though, it is also a genuine concern that increasingly violent gaming has become a popular medium of “entertainment” amongst children and young teens resulting in numerous cases of self-harm that could have otherwise been avoided. When it comes to the toy sector as an industry, from the late 1990s itself, China is known to have shifted its focus to manufacturing toys on a massive scale and now holds a virtual monopoly over this segment as far as Asia is concerned. In different circumstances, currently, India had very little to show in terms of global market share or production line supply in this sector. Having only 1.5 percent share of this otherwise $100 billion world market, India has remained heavily dependent on other countries for the humongous demand it generates considering it is the second most populous nation in the world with a significant component being the youth, particularly children. One can only imagine the huge amount of monetary losses India is making at this point, with such heavy domestic demand being met solely by external suppliers. However, over the last couple of years, India has woken up to this reality and has begun to understand the wide potential of the toy market. Like other low-income countries, though India continues to import an overwhelming majority i.e., about 80 percent of the toys for its domestic use, the country has begun taking measures that would ensure that its presence in the global toy manufacturing market could be secured and shares increased substantially. During coronavirus-induced lockdowns, a massive fillip was given to virtual platforms and consequently online opportunities rose manifold. The lockdowns and the resulting compulsion of individuals to resort to online interactions have come as a blessing in disguise for many people working in the toy sector. New virtual gaming devices and initiatives that would synergize toys/gaming with real-time fitness/health saw increased demand and benefitted in terms of profits. Interestingly, a noted example is the app developed by the KCG College of Technology in Chennai wherein the idea is to help correct the body posture by promoting yoga through gaming. Combining technology with tradition, the app has figured out a unique way of ensuring sustained business interest as well as spreading yoga throughout the globe. Another fascinating app developed by Arogya in Dehradun ensures that one can improve one’s dietary preferences and eating habits by getting real time updates on the nutritional quality of the food via the gaming route. Though the sector did not find much mention in the schemes of the erstwhile governments, in recent times, particularly, during the lockdown period, numerous initiatives have been undertaken and the results are slowly unraveling. Following a clear call to “become vocal for local” in the toy industry, the Department for Promotion of Industry & Internal Trade (DPIIT) in collaboration with the Ministry of Commerce undertook a detailed study in this sector. After its submission and detailed deliberations, multiple ministries were taken on board for a cohesive framework that would enable policies to be made to increase India's share in the global market. Linking the same to India's glorious culture and civilization, a Toycathon was organized for the first time in India providing youngsters and industry leaders a platform to engage and share new ideas. New innovations came to light with the event wherein more than 13,000 exhibitors participated, with widespread consultations between players and officials about the possible road map that the Indian government ought to take toward ensuring self-reliance. These innovations can subsequently ensure manufacturing takes place on a larger scale, with the potential to deliver development to remote areas of the country where it is most needed. Rarely does a capitalist venture find itself taking roots in areas that are far-flung or amidst mountainous terrains and excludes a huge population of the society i.e., mostly Dalits, tribals, women and other individuals/groups who live on the fringes. In fact, in its effort to give impetus to this sector, the government recently announced plans for setting up a more than 400 crore Toy Park in the Jewar region of Uttar Pradesh in which 134 companies have already agreed to establish their manufacturing units. An airport is also being reportedly planned in its vicinity. Expected to provide permanent jobs to more than 6,157 people, the Park spread over an area of 100 acres will be manufacturing electronic, plastic, stuffed, silicon toys along with wooden toys to incentivize regional artisans to hone their skills. Better late than never, this manufacturing industry, if developed properly with the necessary support from the government and the innovation needed from the corporate world, has a good shot at providing immense benefits to not just remote regions in the country but also the most vulnerable sections of society who with dignity and honor can participate in the country’s development paradigm. Source: ANI IH

The World Bank (WB) today approved US$600 million for two projects in Bangladesh to help over 1.75 million poor and vulnerable populations, including youth, women, disadvantaged groups, and returnee migrant workers, improve employability and livelihood opportunities, and build their resilience against future shocks like the COVID-19 pandemic. “In Bangladesh, the COVID-19 pandemic has affected the livelihoods of thousands of people, particularly, female workers, youth, and returnee migrant workers,” said Dandan Chen, Acting World Bank Country Director for Bangladesh and Bhutan. He said these two projects will help empower and mobilize rural poor people, prepare them for the future job market and support entrepreneurial opportunities, especially for women and disadvantaged groups. The $300 million ‘Accelerating and Strengthening Skills for Economic Transformation (ASSET) Project’ will equip more than 1 million youth and workers with skills needed for the future of work. The project will particularly support youth, women and disadvantaged groups, including people with disabilities to become skillful and to connect them to labor market. The project will also support industries to retrain their workers during and after the pandemic and thus accelerate recovery. “Building on the success of earlier projects, ‘STEP’ and ‘NARI’,’ the project will help modernize and build resilience of the technical vocational education and training sector of Bangladesh. It will set up an international standard model polytechnic in the country,” said Md. Mokhlesur Rahman, World Bank Team Leader for the project. “Further, the project will benefit the informal sector workers through expanding the ‘Recognition of Prior Learning (RPL)’ program,” he added. The $300 million Resilience, Entrepreneurship and Livelihood Improvement (RELI) Project will help improve the livelihoods of about 750,000 poor and vulnerable rural people across 3,200 villages in 20 districts. “The project will provide immediate and tailored livelihood support to rural poor people for responding to urgent needs such as the COVID 19 pandemic, improve their ability to cope with future shocks and help them come out of poverty through income-generating activities and skill development,” said Jean Saint-Geours, World Bank Team Leader for the project. The project will help organize village groups, build their capacity and finance community plans for savings and micro-loans, as well as climate-resilient infrastructure, giving priority to the poor and extreme poor, women, and youth. With over 90 percent female beneficiaries, the project will also support entrepreneurship and encourage crop diversification, good nutritional practices, while raising awareness of climate risk adaptation and mitigation, the spread of diseases, and gender-based violence. Both projects have a maturity of 30 years including a grace period of 5 years. The World Bank is among the first development partners to support Bangladesh following its independence. Bangladesh currently has one of the largest IDA programs totaling over $14 billion. Since independence, the World Bank has committed more than $35 billion in grants, interest-free, and concessional credits to the country. Source: BSS AH

Though Britain has left the European Union (EU) through Brexit, the UK’s Generalised Scheme of Preferences (GSP) will cover all the same countries including Bangladesh that are currently eligible for trade preferences under the EU’s GSP. “Imports from 47 of the world’s least developed countries, including Bangladesh and Malawi, will not face any tariffs– supporting their economic development through business and trade,” according to Department for International Trade, Foreign, Commonwealth & Development Office. Britain will allow businesses to trade with the UK as they do now without disruption, it said in a statement. The UK government announces that removals and reductions of tariffs on goods from developing countries to continue after the end of the transition period. The trade preference scheme will cover any eligible countries that do not have their existing trade agreements transitioned into a new agreement with the UK, it said. The UK imported approximately £8 billion-worth of textiles and apparel products from eligible countries last year. Besides, British importers will continue to pay zero or reduced tariffs on everyday goods such as clothing and vegetables from the world’s poorest countries now the UK has left the EU, the statement said quoting International Trade Secretary Liz Truss. “We are making sure that the world’s poorest countries can continue to take advantage of the opportunities that free trade offers them by allowing them to export their products to the UK at preferential rates,” she said. The scheme will also help British businesses to continue trading seamlessly after we leave the EU, as well as giving British consumers continued access to some of their favourite products at affordable prices. UK Foreign Secretary Dominic Raab said Global Britain is a partner of choice for developing countries. “(This) announcement demonstrates, we take a liberal approach to trade, recognising that many developing countries want to trade their way to greater prosperity,” he said. Source: BSS AH

The price of oil surged Friday as global investors were gripped with uncertainty over the potential repercussions after the United States killed Iran's top general. News that Gen. Qassem Soleimani, head of Iran's elite Quds Force, was killed in an air attack at the Baghdad international airport prompted expectations of Iranian retaliation against U.S. and Israeli targets. In previous flare-ups in tensions with the U.S., Iran has threatened the supply of oil that travels from the Persian Gulf to the rest of the world. About 20% of oil traded worldwide goes through the Strait of Hormuz, where the shipping lane is only 3 kilometers (2 miles) wide and tankers have come under attack this year. The international benchmark for crude oil jumped 4.1%, or $2.70, to $68.95 a barrel in London trading. "Revenge will come, maybe not overnight but it will come and until then we need to increase the geopolitical risk premium," said Olivier Jakob, head of consultancy Petromatrix, in a note to investors. He noted that Iran's response may not be limited to the Strait of Hormuz. In September, Yemen's Iran-backed Houthi rebels launched drone attacks on the world's largest oil processing facility in Saudi Arabia. The strike briefly took out about half of the supplies from the world's largest oil exporter. The U.S. directly blamed Iran, which denied any involvement. Launching attacks that can't be easily linked back to Iran limits the chances of direct retaliation. But Iran has also directly targeted tankers. This year it seized a British-flagged tanker, the Stena Impero, for several weeks. And it has shot down a U.S. military drone. About 80% of the crude oil that goes through the Strait of Hormuz goes to countries in Asia, including China, Japan, India and South Korea. But the rise in the global price of oil will affect other countries more widely, particularly oil-importing countries with big manufacturing sectors like Germany and Italy. Those countries fared worst in the stock market on Friday, with their main indexes falling 1.4% and 1.1% respectively. Source: AP/UNB AH

Jim Yong Kim, the president of the World Bank, abruptly announced that he will be leaving his post on February 1, more than three years ahead of the end of his term. “It has been a great honor to serve as President of this remarkable institution, full of passionate individuals dedicated to the mission of ending extreme poverty in our lifetime,” Kim said in a statement on Monday. “The work of the World Bank Group is more important now than ever as the aspirations of the poor rise all over the world, and problems like climate change, pandemics, famine and refugees continue to grow in both their scale and complexity,” he added. Mr Kim has been at the helm of the World Bank since 2012, and was re-elected for a second five-year term that began in 2017. Kristalina Georgieva, the Chief Executive of the World Bank, will be interim president starting on February 1, while Kim said he would join a firm that focuses on infrastructure investments in developing economies. Source: Financial Times AH

The ongoing trade dispute between the United States and China has led both countries to announce billions of dollars’ worth of tariffs on each other’s products. China is the largest single exporter to the U.S. – more than 500 billion dollars worth of Chinese goods entered the U.S. last year – and American tariffs on Chinese products were on the high side even before the latest round of tit-for-tat increases. But they are by no means the highest import duties the U.S. charges. Those would be on imports from several developing South Asian nations whose exports to the U.S. are heavily weighted toward clothing and other products that the U.S. generally taxes highly. Bangladesh, for example, exported about 5.7 billion dollars worth of goods to the U.S. last year, 95 percent of which were apparel, footwear, headgear and related items, according to a Pew Research Center analysis of data from the U.S. International Trade Commission (ITC). Nearly all Bangladeshi imports were subject to U.S. duty, and the tariffs on them were equivalent to 15.2 percent of the total value of that country’s shipments to the U.S. – the highest such average rate among the 232 countries, territories and other jurisdictions in the ITC database. Other countries with similar profiles are Cambodia (duties equal to 14.1 percent of the total value of imports from there), Sri Lanka (11.9 percent), Pakistan (8.9 percent) and Vietnam (7.2 percent). By contrast, the duties on Chinese imports totaled 13.5 billion dollars last year, or 2.7 percent of their total value. For all imports worldwide, the U.S. imposed tariffs equal to about 1.4 percent of total value. The average tariff rates the U.S. imposes on its other major trading partners are much lower than those on China. Mexico and Canada, the second- and third-highest sources of U.S. imports, had average duties last year of just 0.12 percent and 0.08 percent of the value of their imports, respectively. (The three countries are linked in the North American Free Trade Agreement.) The average rates for Japan and Germany were both less than 2 percent; South Korea, with which the U.S. also has a free trade agreement, had duties equal to just 0.25 percent on its 70.5 billion dollars in total exports to the U.S. Average tariff rates on U.S. imports from a given country, as defined above, depend on two things: the share of total imports that are subject to duty, and the average rate the U.S. places on that share. In general, U.S. tariffs are lower today(relative to the total value of imports) than they were two decades ago, mainly because more imported goods are fully exempted from duties. In 1996, for example, three-quarters (75.5 percent) of Chinese imports were subject to duty, at an average rate of 7.2 percent. Last year, only about two-fifths (41.3 percent) of imports from China were dutiable, with the rest entering the country duty-free; the average rate on the dutiable portion of Chinese imports was 6.5 percent. (Looking at the average rate on only the dutiable portion of imports – rather than on all imports – moves Bahrain, Haiti, Barbados and several other small nations to the top of the list, mainly because of relatively high rates on a relatively small portion of their total imports.) Source: Pew Research Center. AH