Newsletter No. 1264
News-Analysis
January 26, 2009

 

The following newsletter has been contributed by Ridwan Khan (Shingetsu Member No. 181). Khan is a graduate of Emory University who now lives in Aomori Prefecture in Japan.

JAPAN REAFFIRMS ITS COMMITMENT TO SHEIKH HASINA’S POST-ELECTION BANGLADESH

Prime Minister Taro Aso contacted Sheikh Hasina to congratulate her on her party’s win in Bangladesh’s December 29th elections, which were widely considered legitimate. The Japanese prime minister reaffirmed Japanese support for the growth of Bangaldesh and continued good relations between the two countries. In a separate statement, Hirofumi Nakasone, the Minister of Foreign Affairs, called the elections “free, fair, and peaceful.” He went on to say that the election “was successfully carried out… [and] exemplifies a consolidation of democracy in Bangladesh.”

Japanese support for Bangladeshi infrastructure and economic development continues as Aso also pledged US$440 million in loans to Hasina’s government. The money is to be used for several infrastructure projects, including power plants, power distribution, and bridge construction. These loans carry a yearly interest rate of 0.01% with a repayment period of forty years.

Two Japanese aid agencies, the Japan International Cooperation Agency and Japan Bank for International Cooperation, have recently merged into one organization. Despite this change, the new JICA, which has US$10 billion in resources and more than 1,500 staff members, has reaffirmed its commitment to aid in Bangladesh.

Japanese business also is looking to Bangladesh. Clothing retailer Uniqlo has expanded outsourcing operations in Bangladesh, opening an office in Dhaka. Company President Tadashi Yanai explained the move in terms of the current economic crisis: “Uniqlo is market leader for low-cost clothes in Japan. As the income of Japanese consumers is going down, they are opting much for low-end products. Bangladesh can be the premium outsource destination for such low-cost products.” He went on to add that competitive clothing retailers must produce in nations like Bangladesh in order to remain competitive.