The globally famed Bloomberg news agency has praised Prime Minister Sheikh Hasina for her “timely reform steps” to negate impacts of the worldwide economic crisis in Bangladesh, predicting the initiatives to elect her government for fourth straight term in next general elections.   “She is expected to win a fourth straight term in the elections,” the international finance based news service wrote in an article, simultaneously suggesting Sheikh Hasina “needs to push more reforms to receive all funds”. “Sheikh Hasina is widely expected to win a fourth straight term in national polls expected by January 2024 — not least because many of her opponents are behind bars or ensnared in legal cases”. The Bloomberg published the article against the backdrop of Bangladesh’s receipt of International Monetary Fund (IMF) loans which it attributed to the South Asian country’s timely reforms to maintain economic stability ahead of the next national election. The article commented that Sheikh Hasina’s victory was expected not merely “because many of her opponents are behind bars or ensnared in legal cases” but due to her success in ensuring economic stability. Following is the full Bloomberg article headlined “Bangladesh Leader Bets IMF-Mandated Rigor Will Pay Off in Polls” with two sub-heads:                                                                     Sheikh Hasina needs to push more reforms to receive all funds                                                                      She is expected to win a fourth straight term in the elections Government leaders across the world have often balked at implementing reforms agreed with the International Monetary Fund for fear of being penalized at the ballot box. Bangladesh Prime Minister Sheikh Hasina isn’t one of them. Her quick execution of IMF mandates have stood out in South Asia where Pakistan is still fiddling with fuel subsidies just as it inches closer to reviving a bailout. Sri Lanka has delayed local municipal polls as it raised taxes and interest rates to clinch IMF funds last week. Bangladesh, which in July became the last of the three countries to ask for IMF support, was the first to get loans approved after swiftly raising energy prices. Hasina, 75, made no apologies for the move. “Gas and electricity supply can be provided if all agree to pay the purchasing costs,” she said a week $4.7 billion in IMF loans were secured on Jan. 31. “How much subsidy can be given? And why should we continue subsidies?” Such comments are typically unheard of as elections approach: All three nations face key votes over the next 18 months. But unlike leaders in Sri Lanka and Pakistan, Hasina is widely expected to win a fourth straight term in national polls expected by January 2024 — not least because many of her opponents are behind bars or ensnared in legal cases.  “If the ruling party manages to maintain economic stability, that could preempt anger or public sentiment that works against the government,” said Michael Kugelman, director of the Wilson Center’s South Asia Institute. “Hasina certainly has the credibility to pull this off.” In contrast, Pakistan Prime Minister Shehbaz Sharif polled low in a survey ahead of elections later this year and has been blamed by voters for the economic crisis. While Sri Lankan leader Ranil Wickremesinghe has pushed through reforms, he depends on the support of a party run by a powerful clan and will need to seek a new mandate in presidential elections due September 2024.  Hasina is banking on her government’s move to go to the IMF to show to markets and voters that she has prevented the $460 billion Bangladeshi economy from going the way Sri Lanka has with a default. Pakistan is also facing the prospect of a default.  Bangladesh went to the IMF as it grappled with an energy crisis with commodity prices soaring last year due to Russia’s war in Ukraine, while the rising costs of imports widened the trade deficit. The local currency depreciated by a fifth and reserves fell to the lowest in three years.  By winning access to IMF funds, Hasina’s government is gaining some time to fix the economy before the elections. Signs of a weakening economy could well trigger public anger against the premier who has overseen growth of more than 6% on average for the past 14 years though it slowed to about 3.5% during the pandemic. The first review of the IMF program is set for the second half of 2023, and Bangladesh Mission Chief Rahul Anand sees the authorities “taking comprehensive steps” to unwind subsidies and move to a market-driven exchange rate.  Bangladesh has received $476 million under the facility so far. Further disbursements depend on the government ensuring reforms for the financial sector, ranging from the central bank pursuing an independent monetary policy to reducing non-performing loans and spurring climate change funding.

The police chief is thought to have had a strong relationship with the former prime minister Frank Bainimarama, who ruled the Pacific nation for 16 years after seizing power in a military coup in 2006. Fiji suspended its police chief on Friday, in a major change since a new government was elected last month. President Ratu Wiliame Katonivere announced that Commissioner of Police Sitiveni Qiliho had been suspended "effective immediately" on the advice of the Constitutional Offices Commission. Qiliho is thought to have had a strong relationship with the former prime minister Frank Bainimarama, who ruled the Pacific nation for 16 years after seizing power in a military coup in 2006. After a fiercely contested election last month, Prime Minister Sitiveni Rabuka — also a former coup leader — came into power. The commission also suspended Bainimarama's brother-in-law Francis Kean from his role as the corrections service chief, and the Supervisor of Elections Mohammed Saneem. Fiji stepping away from pro-China policies Rabuka indicated he is breaking away from the pro-China policies of his predecessor. He is reportedly planning to do away with the  police cooperation deal with Beijing, in place since 2011. "There's no need for us to continue, our systems are different," he said on Wednesday. "Our system of democracy and justice systems are different so we will go back to those that have similar systems with us," the prime minister said, in reference to countries such as Australia and New Zealand. In October, Fiji had signed a deal with Australia for increased military cooperation. The Pacific island country has played a crucial role in the region's response to rivalry between China and the United States. Military keeping eye on reforms The reforms come despite the powerful warning against "sweeping changes". The military has indicated that it is eyeing Rabuka's reforms "with growing concern". Fiji's constitution allows the military wide powers to intervene in politics. The island nation has seen four coups in the past 35 years.

India on Wednesday expressed concern that some suggestions on reforming the World Trade Organization (WTO) could give rise to fundamental changes in the institutional architecture of the trade body, which could eventually damage the developing nations more. While addressing the thematic session on WTO reforms held on Day 4 of the ongoing ministerial meet in Geneva, commerce and industry minister Piyush Goyal said such suggestions could run the risk of skewing the system against the interest of developing countries. He further added that the gaps between the developing and developed members have, in fact, widened in many areas, emphasizing that the special and differential treatment (S&D) must continue. Such treatment has been a treaty-embedded and non-negotiable right for all developing members, the minister added. With no substantial outcome at sight, the WTO secretariat on Wednesday announced that the ministerial would be extended by a day, till June 16, even as hectic parleys are expected to continue all throughout the night.   In the afternoon, when all the thematic sessions got over, Goyal and select negotiators were invited by WTO's director-general Ngozi Okonjo-Iweala to attend a green room meeting to sort out certain draft texts still in brackets. "The DG invited 35 countries including India to find a middle path on a number of issues," an Indian officer told ET. In fact, reforming the trade body has been one of the key themes of the ongoing WTO's ministerial. But India's position has been crystal clear on how such reforms should be undertaken. "In all such reforms, we must ensure that multilateral rule making processes are neither bypassed nor diluted," Goyal said, adding that the principles of non-discrimination, predictability, transparency and most importantly, the tradition of decision making by consensus need to remain sacrosanct. While insisting that India strongly supports robust WTO reforms and modernisation agenda, the minister stressed that the reform process should take place in the general council and other regular bodies too.   Source: The Economic Times

Even as the jury is still out on the extent of capital account convertibility, the reforms in the capital account have been strong enough to attract among the highest foreign direct investment (FDI), finds a study by RBI economists. An analysis of the recent trends in FDI flows at the global level and across regions/countries suggests that India has generally attracted higher FDI flows and continued to remain among the top attractive destinations for international investors in line with its robust domestic economic performance and gradual liberalization of the FDI policy as part of the cautious capital account liberalization process. A study published in the Reserve Bank of India's latest monthly bulletin said that an empirical analysis of factors influencing inward FDI, considering major countries in terms of its FDI stock position in India reflects that inward FDI is significantly influenced by the trade openness, economic growth prospects, market size, labor cost and capital account openness of the host countries. Besides, foreign trade had a substantial share in the business where import intensity in purchase remained higher than export in sales for foreign subsidiary companies, the study notes.   FDI in India initially picked up in the mid and late nineties following a series of policy measures to liberalize and strengthen the FDI environment in the country. But they slowed down after the global financial crisis of 2008 because it affected India macro-economic fundamentals which continued till FY '2013-14. FDI again got a major push during September 2014 after the government launched the ‘Make in India’ initiative to facilitate investment, foster innovation and build best in class manufacturing infrastructure. The reform made a positive foreign investment climate in India and helped in increasing growth in FDI inflows mainly due to strong investment in top three industry recipients viz., ‘manufacturing’, ‘communication’ and ‘financial services', the study notes. During 2015 to 2019, India received a cumulative FDI inflow to the extent of $ 173.3 billion and the share of top five investing countries in India stood at 76.7 per cent. Three major sectors viz., ‘manufacturing sector’, ‘communication services’ and ‘financial services’ together accounted for more than 50 per cent share in FDI inflows amounting US$ 89.6 billion during 2015-2019 Over the period the quality of FDI data has also improved in lines with globally best standards. A number of information bases on FDI Statistics for India have become available. Global concepts help in understanding the statistical methodologies that countries employ in compiling the statistics and the resultant statistics can be used for cross-country comparison though countries with liberal investment schemes experience major challenges in estimation of foreign investment.   Source: The Economic Times

  International Desk, Rtv Indian civil aviation minister Jyotiraditya Scindia unveiled on Thursday a 100-day ambitious plan to bring major reforms in the aviation sector, including operationalising five airports, six heliports and 50 new routes under the regional connectivity UDAN scheme. Out of the 50 new routes, at least 30 will be operationalised by October 2021, he added. “We have a 100-day plan for the ministry on the basis of which we’ll be answerable to the stakeholders transparently. Under this 100-day target, we have three main foundations: infrastructure, policy targets and reforms initiative,” Scindia said at a press conference, adding that the scheme will continue till November 30. Under the 100-day scheme, the airports are set to come up in Keshod (Gujarat), Deogarh (Jharkhand), Gondia(Maharashtra), Sindhudurg(Maharashtra), and Kushinagar(Uttar Pradesh), while heliports will be made operational in Sanjoli(Shimla), Sase (Manali), Mandi, Baddi (Himachal Pradesh), Haldwani, Almora (Uttarakhand), he added. A grievance portal, AirSewa 3.0, will also be set up as part of the plan. Scindia said airlines will now be responsible for ensuring that passengers get refunds within the promised timeframe, even if tickets are bought through travel agents or online portals. At least four new airports will also be made operational over the next 100 days, he said. This includes the foundation stone laying of the Jewar Airport at Greater Noida; the inauguration of the ₹255-crore Kushinagar Airport, work will also begin on building another terminal building at Dehradun at a cost of ₹325 crore and work will also start on a new terminal building at Agartala Airport at a cost ₹490 crore. The ministry also unveiled a new policy for Maintenance, Repair and Overhaul (MRO) activities. “There’s a complete ecosystem in civil aviation sector - with airlines, airport operators, we have MROs where maintenance, repair & overall is done, there are flying-training orgs, cargo sector, ground handling sector, aircraft manufacturing sector,” he said. According to the proposed policy, upon the expiry of the existing contracts, the land which was given to these MROS shall be allotted, based on a bidding process. “The existing MRO would be eligible to participate in the bid. The existing MRO I would have the right of first refusal if his bid is within 15% of the bid given by the highest bidder, and he agrees to match the rates quoted by the highest bidder. Also the existing MRO shall settle all disputes and clear all the outstanding dues,” the policy stated. Source: Hindustan Times  

Farmers across India hit the streets on Friday, blocking roads and railway tracks, to protest reforms they feared would hurt their livelihoods. The fierce protests against three farm bills that were recently passed by the Indian Parliament began around 8 am, but remained concentrated in the northern states of Punjab, Haryana and Uttar Pradesh, where farm yields are high. While the Indian government has said that the reforms will help farmers get better prices by allowing them to sell their produce at markets and prices of their choice, the protesters fear the bills will hurt their interests as they pave the way for the entry of private players into the agricultural market. Harinder Singh Lakhowal of Bharatiya Kisan Union (Indian Farmers' Union), which is spearheading the protests, told the media, "Our agitations will continue until the government rolls back the anti-farmer reforms." India's main opposition Congress party, as well as some regional outfits, have lent their support for the farmers. Congress leader Priyanka Gandhi Vadra said: "They (the farmers) will be forced to become slaves of trillions through contract farming." Her brother Rahul added: "The new agriculture laws will enslave our farmers". The government, however, slammed the opposition parties for "misleading" the farmers. Prime Minister Narendra Modi said the reforms were necessary to increase farm incomes and productivity. "Our government has created history. Small and marginal farmers will benefit the most from the reforms," he said. Experts say the fear of farmers stems out of the fact that most of them currently sell their produce at government-controlled wholesale markets at a minimum support price. "They feel if the MSP goes, market forces will eventually dictate prices," said Prof BK Gupta, an agriculture policy expert. Indian President is yet to sign the three farm bills into law. What the 3 farm bills aim at? 1. End the monopoly of government-regulated markets and allow farmers to sell their produce directly to private players 2. Ensure a legal framework for farmers to enter into written pacts with companies and produce for them 3. Allow agri-businesses to stock food articles and remove the government's ability to impose restrictions arbitrarily. Source: UNB AH

Students have gathered again in the Dhaka University premises demanding quota reforms in government job recruitment. They took position in front of Raju sculpture with placards for their demands at around 12 pm on Tuesday. The agitating students raised question, if law is applicable for the incident of DU Vice Chancellor’s residence attack then why it will not be applicable for the attackers on student?  They demanded explanation from the administration and justice over the incident of attack on students. One of the agitating students said, government has to deliver written speech within 3 days over meeting our demands or not. We should be informed specifically within 7 days whether there is any need of law amendment. About Agriculture Minister Matia Chowdhury’s comment in the parliament he said, she has to say sorry by 5 pm. She termed the whole student society as Rajakar. Another student said, we are not safe in the dormitories or campus. We strongly condemned the attack on general students. The students are continuing their movement from February 14 with 5-point demand to reform the existing quota system. The demands are- reducing quota to 10 percent from 56 percent through reforms, filling the posts based on merit if there is no eligible candidate from quota, not using quota facility more than once in recruitment test, no special recruitment test under quota system and unilateral cut mark and age limit for all in employment. AH