Term paper on

Trade-Balance Relationship















Department of Finance
University of Dhaka
Course Name: International Trade & Finance
Course No: F- 208








Prepared For:
Ms. Tanzila Deepty
Lecturer
Department of Finance
University of Dhaka

Prepared by:
Group no:
Department of Finance
University of Dhaka

Date of submission: 26/10/2011






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SL. No. Name ID
01 Md. Nurul Hoque 16-009
02 Mohammad Nahidul Islam Nahid 16-021
03 Titu Chowdhury 16-031
04 Robin Kumar Saha 16-039
05 Mohammad Kafil Uddin 16-047
06 Deepangkar Saha 16-089
07 Ishrat Amin 16-119
08 Annaya Nandy 16-139
09 Md. Atiar Rahman 16-141
10 Md. Anowarul Hoque 16-253









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January 14, 2012
Ms.Tanzila Deepty
Lecturer
Department of Finance
University of Dhaka
Subject: - The Letter of Transmission
Dear 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 Your
Id no. 16-
On behalf of the group-
Department of Finance
University 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.













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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.











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.









Limitation of the report





Summary
Japan has developed and maintained cordial relations with Bangladesh since the
establishment of diplomatic relations in 1972, primarily through Japans economic
cooperation. Together with Bangladeshi peoples warm feeling towards Japan,
Bangladesh has a strong expectation for Japans ODA. Japan is one of the largest
donor countries to Bangladesh.
(Pop.:139.2millions, GNI/capita:$440, Rate of economic growth:6.3%)
Outline of Japans ODA to Bangladesh
Goal and significance of Japans ODA
Ministry of Foreign Affairs of Japan
September 2009
Japanese ODA Loan Projects

Bangladesh is a moderate Islamic country and is making efforts to promote
regional cooperation as the advocator of SAARC. It is important to assist
Bangladesh for further sustainable development in order to achieve stability and
economic development in the entire region. 36% of Bangladeshs total population
is 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 and
power 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 Loan
Japan has been extending Japanese ODA loans mainly in the area of infrastructure.
In FY2008, Japan provided Japanese ODA loans amounting to 39.749 billion yen
to Bangladesh. The cumulative amount of Japanese ODA loans to date has reached
680.5 billion yen.
In April 2003, Japan decided to relinquish the Japanese ODA loans of 158.09
billion 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 2009
in 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 rates
Japan 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 goods
2. Ready-made garments
3. Shrimp
4. Frozen Food
5. Footwear


Common import items of Bangladesh from Japan:
1. Transport equipment
2. Software
3. Iron and steel
4. Electronic products & Home appliance

By 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

Political
First 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.

Economic
First 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) Ltd
BJIT 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 cars
State-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 Exchanges
Every 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 Boishakh
There 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 2011
The 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 2011
The 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 Sidr
Japan 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 Aila
Japan had expanded their hands towards Bangladesh on this disaster also.
Bangladeshs response to 2011 earthquake and tsunami of Japan
Bangladesh 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 Bangladesh
Bangladesh 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 Bangladesh
Japanese investment in Bangladesh ranks 4
th
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 Development
No 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 Floods
Bangladesh 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 Resilience
Last 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)

Education
Education 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 Services
Public 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 Reform
ICDDRB 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 Hospital
Japan 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 Energy
Power 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 Democracy
Even 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 Asia
On 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 Bangladesh
By 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 cases
6. Building capacity at the enterprise level to ensure compliance with SPS-TBT standards
7. Providing training in SPS-TBT issues for the entrepreneurs
8. Providing support for promotion of marketing of the identified agri-products
9. Preparation of Hand Book of Rules of Origin of major export countries and organize
training for exporters: BFTI
10. 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 cases
17. Building capacity at the enterprise level to ensure compliance with SPS-TBT standards
18. Providing training in SPS-TBT issues for the entrepreneurs
19. Providing support for promotion of marketing of the identified agri-products
20. Preparation of Hand Book of Rules of Origin of major export countries and organize
training for exporters: BFTI
21. Providing training on SPS-TBT Compliance
22. Initiate bilateral arrangements for JAS and JIS Compliance for Japanese market
23. Launching relevant national standards for auto-compliance
24. Equipping BSTI for international standard compliance testing at pre-certification stage
25. Organize export fairs in EU and Japan
26. Development of e-commerce for product selling
27. Development of product promotion facilities based on importing country language.
28. Providing training on SPS-TBT Compliance
29. Initiate bilateral arrangements for JAS and JIS Compliance for Japanese market
30. Launching relevant national standards for auto-compliance
31. Equipping BSTI for international standard compliance testing at pre-certification stage
32. Organize export fairs in EU and Japan
33. Development of e-commerce for product selling
34. Development of product promotion facilities based on importing country language.

JBCCI & Private Sector Development
Japan-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 Development
Japan 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 Substitution
Bangladesh 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 Backlash
It 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 Bangladesh
Japan 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 Agreements
Date of
sign

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

2 Agreement for the Exchange of International Money Orders. 1978
3 Agreement for Air Services. 1980
4 Cultural Agreement 1982
5
Convention for the Avoidance of Double Taxation and the Prevention of Fiscal
Evasion with respect to Taxes on Income.
1991

6 Agreement concerning the Promotion and Protection of Investment 1999
7 Agreement on Technical Cooperation 2002
8 Loan Agreement on Paksey-2 Project. 2003
9 Exchange of Notes on 1.46 billion USD Debt Relief Measure 2004
10
Loan Agreement of 11,345 m Yen for Eastern BD Rural Infrastructure Dev.
Project.
2005

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

12 Bangladesh-Japan Cultural Exchange Agreement. 2005
13
Exchange of Notes, Record of Discussions, Agreed Minutes concerning the
Project for improvement of Metrological Radar System at Coxs Bazar and
Khepupara.
2005
14 Record of Discussions on Technical Internship Program 2005
15
Loan agreement for US$ 60 million towards Emergency Disaster Management
Projects.
2008

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

17
Exchange of notes on Improvement of Audio-Visual Equipment of Bangladesh
National Museum of 62,300,000.
2008

18 Japan Debt Cancellation Fund (JDCF) worth of BDT 46 billion/ US$680 million. 2008
19 Agreement on Technical cooperation between the GOJ and the GOB. 2008
20
Note of Exchange worth 1.2 billion Japanese Yen on Improvement of Solid
Waste Management in Dhaka towards the low carbon society.
2009
21
Exchange of notes relating to 30
th
ODA loan package worth 39,749 million.
2009
22
Projects under 30
th
ODA Loan Agreement.
2009
23 Comprehensive Economic Partnership Agreement (CEPA) 2009

Some Important Agreements:
Cultural Agreement
The 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, and in accordance with the Cultural Agreement signed in Dhaka on February
10, 1982, will create favorable conditions for the development of long-term cooperation in the field
of culture. The main objectives of this agreement were-
a. Educational and Academic Exchanges
b. Cultural and Artistic Exchanges
c. Youth, Sports and Tourism
d. Press, Radio, Television and Communication
e. General Provisions
Agreement for the Exchange of International Money Orders
The Government of Japan and the Government of the People's Republic of Bangladesh,
desiring to conclude an agreement for the exchange of international money orders between the two
countries and considering mutual benefits derived from promoting the economic and social
development of their respective countries has made this agreement




Agreement on Technical Cooperation

The Government of Japan and the Government of the People's Republic of Bangladesh,
desiring to strengthen further the friendly relations existing between the two countries by the
promotion of technical cooperation, and considering mutual benefits derived from promoting the
economic and social development of their respective countries has made this agreement.

Comprehensive Economic Partnership Agreement (CEPA)

The Comprehensive Economic Partnership Agreement (CEPA) between Bangladesh and
Japan has emerged as one of the most important tools for bilateral cooperation. The main aim of
this agreement is strengthening bilateral economic partnership with the ultimate objective of
developing a regional production network, and trade and investment liberalization along with system
facilitation and institutional capacity-building. Focusing on a range of issues including trade in goods
and services, investment and intellectual property rights among others, towards a free, fair and rule-
based economic integration among these two friendly countries.


























Recent High Level Contacts














From Japan to Bangladesh


Year Name
1994
President of the Japan-Bangladesh Parliamentarians' League
Hiroshi Mitsuzuka
1995 State Secretary for Foreign Affairs Hakuo Yanagisawa
1996, 1998, 2000, 2001, 2002
Vice-President of the Japan-Bangladesh Parliamentarians League
Shin Sakurai
2000 Prime Minister Yoshiro Mori
2003
Acting President of the Japan-Bangladesh Parliamentarians
League Shin Sakurai
2004
President of the Japan-Bangladesh Parliamentarians League Shin
Sakurai
2005
Senior Vice-Minister for Agriculture, Forestry and Fisheries
Takayoshi Tsuneda
2005 Senior Vice-Minister for Foreign Affairs Shuzen Tanigawa
2005 Senior Vice-Minister for Foreign Affairs Ichiro Aisawa
2006
President of the Japan-Bangladesh Parliamentarians League Shin
Sakurai
2006 Former Foreign Minister Nobutaka Machimura
2006 Foreign Minister Taro Aso
2009 State Foreign Secretary Ms. Seiko Hashimoto








From Bangladesh to Japan


Year Name
1994 Prime Minister Begum Khaleda Zia
1997 Prime Minister Sheikh Hasina
1998 Foreign Minister Abdus Samad Azad
2000 Foreign Minister Abdus Samad Azad
2001
Minister for Science, Information and Communication
Technology Abdul Moyeen Khan
2001 Minister for Women and Children Affairs Moudud Ahmed
2004, 2005
Minister for Food and Disaster Management Chowdhury Kamal
Ibne Yusuf
2005
Minister for Health and Family Welfare Khandaker Mosharraf
Hossain
2005
Prime Minister Begum Khaleda Zia
.
2007 Nobel Laureate Dr. Muhammad Yunus visited Japan.
2008 Foreign Adviser, Dr. Iftekhar Ahmed Chowdhury, visited Japan
2010 Prime Minister Sheikh Hasina



Prime Minister Begum Khaleda Zias visit of 2005

Begum Khaleda Zia, the Prime Minister of the People's Republic of Bangladesh, paid an
official working visit to Japan from July 11, 2005 at the invitation of the Japanese Government. The
two Prime Ministers had constructive dialogue on bilateral, regional and international issues and
affirmed the importance of close and cooperative relations between the two countries. Japan holds
Bangladesh in high esteem for its efforts in overcoming various development difficulties
and in nation-building under the leadership of Prime Minister Begum Khaleda Zia and also for
making great efforts for regional and international peace and stability. The Japanese side expressed
its appreciation for Bangladesh being a moderate country with a Muslim majority and for its
commitment to democracy and respect for democratic values and practices. Japan also regards
Bangladesh as a bridge between South Asia and East Asia and as a country which can play a
significant role for steady development of Asia in future.



Prime Minister Sheikh Hasinas visit of 2010
The Prime Minister of the People's Republic of Bangladesh, H.E. Sheikh Hasina, is paying
an Official Working Visit to Japan from 28 November 2010 at the invitation of the Prime Minister
of Japan, H. E. Mr. Naoto Kan. The two Prime Ministers held official talks on 29 November 2010
and had a constructive dialogue on bilateral, regional and global issues. They reaffirmed the
importance of further enhancing the long standing close and cooperative relationship between the
two countries, sharing democratic values, and they reached a common view that they will cooperate
further in order to bolster global peace and security as well as the prosperity of the international
community and the South Asian region. The two Prime Ministers expressed satisfaction at the
substantive results gained following the meeting of their respective Foreign Ministers held this year,
and decided to make further efforts to strengthen high level policy consultations and to expand
high-level visits and dialogue at various levels, including exchanges among opinion leaders and
members of their parliaments.

























Findings and Recommendation













Difficulties to face in Japanese market

Apart from the lifelong odds with respect to nature, politics, and governance, and on the
scenario on which we are standing, we feel the most important difficulty to face in penetrating the
Japanese market is that the Japanese mainly rely on Japanese people.

1. So, on the sales part, one has to approach Japanese trading co., agent or make a partner.
But we feel they need a Japanese smell in the manufacturing system from the sales point of view.

2. On raw material part, one has to use fabrics and other major trimmings which are out of
Japanese investments offshore. Since we do not have such investments in Bangladesh, we need to
import from countries like Malaysia, Indonesia, Thailand where there are huge Japanese investments
in textile and related material. By doing so, we lose in lead time compared to those countries and
China. So, we are restricted to non-fashionable items, which can have longer lead time i.e.
commodity items, which are essential but highly competitive in prices.

3. On the production part, one has to adapt to a Japanese approved system of production,
preferably using Japanese technical experts or Japanese certified experts of other origin. This is the
most important and critical function as a RMG exporter. This is very important to create a highly
efficient manufacturing team of strong quality-conscious behavior, with constantly adopting to
improvements. To be highly efficient is to ensure a competitive cost of quality production in
comparison to emerging exporters like the silent parts of China, Myanmar, Laos, and Cambodia with
low wage level. Without this, it would not be possible to consistently survive in the Japanese market.

We have any particular recommendation or suggestions to put forward. We can only say, what we
have done is; we have fitted ourselves in the total commerce-

By arranging machinery as per Japanese standard requirement,
By smoothly arranging raw materials specified to us,
By arranging and maintaining production process specified to us,
By maintaining quality control ensured by Japan, and
By arranging and developing manpower ourselves under supervision.

We are ensuring a comfortable environment acceptable to both parties, and in the process, exporting
our products duty-free under the general system of preference guidelines to one of the highest
consumers pending societies in the world and where standard-wise competition complains are
valued as disgrace and not at all tolerated.





Challenges and Advantages of China+1 Policy
In a policy known as the China Plus One policy, Japanese buyers intend to relocate about
30 percent of their orders from China to other locations. Possible destinations include Vietnam,
Bangladesh and Cambodia with likely proportionate distribution set at 15 per cent outsourced to
Vietnam, 10 per cent to Bangladesh and 5 per cent to Cambodia2.
With Bangladesh knitwear exports heavily concentrated to three markets, the BKMEA has
acknowledged the need for more export diversification and is thus looking to diversify knitwear
exports to Japan. With this goal in mind, BKMEA carried out an exploratory mission to Japan in the
second quarter of 2009 and another scoping mission in September 2009 in collaboration with GIZ3
to strengthen existing contacts and trade links.
A follow up mission was also carried out in collaboration with GIZ from 10 to 16 October 2010
with the prime objective being to gain improved market access to Japan for knitwear products. The
delegation was also tasked with proposing to the Japanese government that the existing Rules of
Origin (RoO) for knitwear be relaxed so that the Japanese GSP (generalized system of preferences)
could apply to this sector. Other priorities included developing a knitwear fair in Japan to showcase
Bangladeshi products, alongside a promotional campaign to increase trade links with Japanese
buyers and investors. Technical assistance was also sought to improve worker skills and overall
product quality.

Challenges and way forward
To develop a strong trade relationship with Japan and to take advantage of Japanese buyers
China plus one policy, a number of steps should be taken:
1. The Bangladesh government must take measures to develop a policy to supply gas and
electricity consistently to RMG units,
2. Workers should be trained to handle Japanese buyers and the Japanese retail marketing
system and distribution channels. Skills in this area are sorely lacking.
3. A single country fair or international fashion fair (IFF) in Tokyo could showcase
Bangladeshi products
4. An established Economic Partnership Agreement (EPA) between Bangladesh and Japan
can also play an important role in moving this issue forward
5. The Japan External Trade Organization (JETRO), Japan Textiles Importers Association
(JTIA) and local Japanese companies in Bangladesh should be urged to help inspect and
monitor product quality to ensure adherence to standards set by the Japanese
government
6. A promotional campaign for proper channeling of products in Japan and production of
information materials are tools that are needed to grow market share
7. Japanese buyers and investors should be invited to Bangladesh to broaden trade linkages













Conclusion












After all these extensive analysis we found the purpose of Japans assistance to Bangladesh
like others is the cultivation of goodwill between the countries. Both Bangladesh and Japan have
been able to achieve their purpose with good results because of the matter of fact that Bangladesh
and Bangladeshi people as well as Japan and the Japanese have been very cordial, friendly and trust
worthy with a mutual sense of high gratitude to each other as a whole. Among the South-Asian as
well as the Third-world countries, Bangladesh having maintained the qualities of an important and
moderately democratic and peace-loving friendly state, has all strategic and favorable aid
considerations and special Asian attachment from the Asian most developed state Japan as well as
others in the world. Less conditionality of Japans ODA to Bangladesh and the principle of working
heart to heart with the grass-root people of Bangladesh in the rural development and school learning
areas, have made Japanese efforts popular and beneficial to the socio-economic progress in
Bangladesh. But systematic and low cost-effective technology transfer, operations and technical
maintenance provisions and procedures in the aid package can accrue more benefits and bring more
positive impact on sustainability and building working capacity supporting the development of
institutions in the long run. Japans contribution towards rural development, poverty alleviation and
fulfilling the requirements of MDGs especially in the education (primary and secondary), health and
sanitation and reduction of child mortality and enhancement of maternity and health care services
are spectacular successes in Bangladesh. In the case of FDI in co-financing (GO and multilateral
Partnership) projects, KAFCO is a glaring example of success where the profits so far accrued is in
over-saturation and of commendable import substitution project that helps achieve agricultural
development. It is also noteworthy that the GOJ has set 3 goals and of priority areas for Japans
ODA for poverty alleviation in Bangladesh which are-social development with human security,
education, health, environment, disaster management, economic growth, private sector development
and governance. Japans Grant Aid for Human Resource Development Scholarships since 2002 to
2007, JICA has provided fund as well as modern specialized and technical education for about 108
participants with higher studies in different subjects in different Universities and Institutes of Japan.
The importance of Japans ODA to Bangladesh deserves favorable considerations for some basic
reasons like geographical location of Bangladesh in the South Asia, socio-cultural and growing
economic factors, comparative advantages and opportunities for trade and investment, labor-
intensity and the cheapest labor availability, resilient national characteristics, positive notions
towards foreign nationals and active participation and commitment of workers, very low-cost
livelihood facilities, proficiency in Lingua-franca, and the trust and confidence of Bangladeshi people
in the Japanese Government and her people as a whole. But what is more needed now at this stage
to gear up further the engine of economic development of Bangladesh, a comprehensive approach is
required and which can bring expected results in the promotion of trade and business and FDI
along with the ODA package for infrastructure development and growth . Because it will create an
enabling situation that will attract more Foreign Direct Investment and foreign trade helping
Bangladesh to support her balance of payments increasing her foreign exchange and minimizing
fiscal deficits, and can help bring self-reliance. As it is seen in South East Economic Development,
the creation of such a comprehensive mix situation requires a set of basic factors such as political
stability, good governance and supportive economic infrastructure- gas, electricity, transport
including some other positive but committed initiatives in making an enabling healthy environment
from the part of the recipient country. And as it is viewed practically, the Government and the
people of Bangladesh, her business community, civil society do always welcome and appreciate, and
will continue to do so to have such a comprehensive, balanced and open approach of Japans Aid
policy and strategy.

Appendix

Some Notable Institutions and Association

JETRO Dhaka is the official investment and trade promotion organization of government of Japan
under the Ministry of Economy Trade and Industry (METI). It is a non-profit organization.

JETRO head office was established in 1958 & it inaugurated its overseas office in Bangladesh in
1973. Since then JETRO Dhaka is dedicated to promoting mutually beneficial trade and investment
between Japan and Bangladesh.
Our activities in Bangladesh are specially designed to assist potential Bangladeshi entrepreneurs
(mostly those of SMEs) to export to Japan as well as to promote industrial & technical co-operation
and to attract Japanese Investment in Bangladesh. We have identified sectors like readymade
garments, textile, dying, ceramic, information technology, handicraft, energy saving and human
resource development as the priority areas of cooperation. JETRO in Bangladesh also conducts
technical seminars and training programs.

Japan International Cooperation Agency (JICA) is an independent governmental agency that
coordinates official development assistance (ODA) for the government of Japan. It is chartered with
assisting economic and social growth in developing countries, and the promotion of international
cooperation. Since 2005 it has been led by Sadako Ogata, the former United Nations High
Commissioner for Refugees.
JETRO (www.jetro.org), a program run by the Japan External Trade Organization, is a non-profit
government related organization established in 1958 to aid Japan's postwar export drive. They have
six different branches located across the United States: Atlanta, Chicago, Houston, Los Angeles,
New York and San Francisco. Their task is to find American companies with products that can be
sold in Japan and to help them do it.

The Japan Bank for International Cooperation (JBIC) is a Japanese public financial institution
and export credit agency, and was created on October 1, 1999, through the merging of the Japan
Export-Import Bank (JEXIM) and the Overseas Economic Cooperation Fund (OECF). JBIC is
currently the international wing of Japan Finance Corporation (JFC) (administered by the Ministry
of Finance) established on October 1, 2008.
The bank is wholly owned by the Japanese government, and its budget and operations are regulated
by the JBIC law. It is headquartered in Tokyo and operates in 18 countries with 21 offices. The main
purpose of the institution is to promote economic cooperation between Japan and oversea
countries, by providing resources to foreign investments and by fostering international commerce. It
also has a major role in promoting Japanese exports and imports, and the country's activities
overseas. The bank's presence can be seen both in developed and developing countries. It tries to
contribute to the stability of the international financial order and to the promotion of sustainable
development. It follows a policy of not competing with ordinary financial institutions. The bank is
one of the instruments of Japan's official development assistance (ODA), which contributes to the
execution of the country's foreign policy.

Japan Bangladesh Joint Committee on Commercial and Economic Cooperation (JBCCEC)
is an organization that intents to expand trade and investment in sectors such as tourism, textile and
garments sectors. It also helps to hold a single country trade fair in Tokyo. But, not only in Japan,
also in Bangladesh it assists to organize similar fair.

Japanese Universities Alumni Association in Bangladesh (JUAAB)

Websites
http://www.stat.go.jp/english/
http://www.bd.emb-japan.go.jp/
http://www.bdembassy.jp/
http://www.jetro.go.jp/
http://www.indexmundi.com/
http://www.epb.gov.bd/