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Background

1.1History

The study of Bangladesh history and her descriptions are within very shortly as
because in common understanding there are in many way and dimension to explain
the History of Bangladesh or Discovery of Bangladesh potential to give details. The
territory constituting Bangladesh was under the Muslim rule for over five and a half
centuries from 1201 to 1757 A-D. Subsequently, it was under the defeat of the British
after the defeat of the last sovereign ruler, Nawab Sirajuddowla, at the Battle of
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Plessey on the fateful day of June 23, 1757. “The British ruled over the entire Indian
sub-continent including this territory for nearly 190 years from 1757 to 1947. During
that period Bangladesh was a part of the British Indian provinces of Bengal and
Assam. With the termination of the British rule in August, 1947 the sub-continent was
partitioned into India and Pakistan. Bangladesh was then a part of Pakistan and was
known as East Pakistan. It remained so about 24 years from August 14. 1947 to
March 25, 1971. It appeared on the world map as an independent and sovereign
state on December 16, 1971 following the victory at the War of Liberation from March
25 to December 16, 1971” (Statistical year book of Bangladesh 2001, page-19, 22nd edition).

1.2 Bangladesh

Intervention of the central government from depriving Sheikh Mujib-ur-Rahman of a


source of living and his greatest contribution was in instilling among Bengali 2
bureaucrats and elite the courage for dissent and a great measure of self-confidence.
“After nine months of war, the Pakistani military forces surrendered by freedom
fighters of Bangladesh at Dhaka on 16th December 1971 after killing three million
people. Due to the heroic fight and supreme sacrifices of the heroic freedom fighters
Bangladesh finally became an independent country. Bangladesh came into existence
in 1971 when Bengali East Pakistan seceded from its union with West Pakistan”
(Global Interactive Marketing and Technology Solution).

“Bangladesh is one of the world's most densely populated and least developed
country. Its economy is predominately agricultural (employs two thirds of population),
with rice being the chief crop. These rural communities are very weak to the frequent,
devastating cyclones and floods and about a third of this enormously Least
Development Country (LDC) floods annually during the monsoon rainy season,
hampering economic development” (Global Interactive Marketing and Technology
Solution).

First as part of British India and then of Pakistan, the area now constituting
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Bangladesh suffered from chronic economic neglect. “The region produced large
quantities of agricultural goods, including most of the world's jute, but received little
investment in such basic items as transportation facilities and industrial plants.
Bangladesh's gross domestic product was estimated at $42.7 billion in 1998. The
manufacturing sector, which contributed 18.10 percent of Bangladesh's domestic
product in 1998, is made up principally of unmechanized, small-scale enterprises.

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The chief manufactures of the country are jute products (such as cordage and sacks),
textiles, processed food, beverages, tobacco items, handicrafts and goods made of
wood, cane, or bamboo. Large-scale factories process jute and sugarcane. Much of
the nation's heavy industry, including a small steel mill, is in the port of Chittagong”
(Sugata Bose & M. M. Akash, History of Bangladesh, Page – 92-157).

1.2.1 Country Profile

Official name : The People’s Republic of Bangladesh


Location & borders : South Asia. Bordered by India on the east, west & north &
by the Bay of Bengal on the south and the small border
strip with Myanmar on the south-east.
Government : Parliamentary form of government, headed by Prime
Minister.
Area / Land : 147, 570 square km / Mostly alluvial fertile plain.
Climate / Seasons : Sub-tropical monsoon / Summer, monsoon, autumn,
winter
Temperature : Varies between 11° C to 29° C in Winter & 21° C to 34° C
in Summer.
Annual rainfall : Varies from 160 cm to 400 cm at different areas.
Humidity : Highest 99% in peak Summer in July, Lowest 36% in
Winter in Dec-Jan.
Standard time : GMT + 6 hours.
Population / Literacy : 135 million / 65 (15 years +)
Official language : Bangla, English is generally understood & used as a
second language.
Capital : Dhaka. Other major cities are Chittagong, Khulna, Sylhet,
Rajshahi & Barisal.
Intl. Airports : Dhaka, Chittagong & Sylhet.
Sea ports : Chittagong & Mongla.
Currency / Exch. Rate : Taka (TK.) / Floating exchange rate hovers round US $
1=Tk. 59.72, Euro 1=Tk. 74.51.
GDP / Rate of growth : US $ 57 billion (2003-2004) / 5.5% (2003-2004)
Sectoral share of GDP : 22.83% agriculture, 27.80% industries (including
manufacturing and construction) and the rest for others)
Per capital GDP / GNI : US $ 421 / US $ 444 (2003-2004)
Annual export & import : US $ 7.60 billion & US $ 10.87 billion (2003-2004)
respectably.
Major exports : Ready-made garments, frozen food (Shrimp), leather,
leather products, jute, jute products, tea, ceramics, textile
fabrics, home textile, chemical products, light engineering
products including bi-cycle.

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Major imports : Oil, edible oil, petroleum products, wheat seeds, fertilizer,
yarn, capital goods, machinery, power generating
machinery, scientific & medical equipments, iron & still,
motor vehicles, raw cotton, chemicals.
Major trading partners : USA, EU countries, China, India, Japan, South Korea,
Australia, Malaysia, Hong Kong, Taiwan, Thailand,
Indonesia, Saudi Arabia, UAE etc.

Source: Annual Report 2002-2003, EPB, Page-4

1.2.2 Geography

“Bangladesh lies in the north eastern part of South Asia between 20° 34' and 26° 38’
north latitude and 68° 01' and 92° 41' east longitude. The country is bounded by India
on the west, the north, and the north-east and Burma on the south-east and the Bay
of Bengal on the south. The area of the country is 56,977 sq. miles or 1, 47,570 sq
k.m. The limits of territorial waters of Bangladesh are 12 nautical miles and the area
of the high seas extending to 200 nautical miles measured from the base lines
constitutes the economic zone of the country” (Statistical year book of Bangladesh 2001,
page-19, 22nd edition).

1.2.3 Physiography

“Except the hilly regions in the north-east and the south-east, some areas of high
lands in the north and north western part, the country consists of low, flat and fertile
land. A network of rivers of which the Padma, the Jamuna, the Teesta, the
Brahmaputra, the Surma, the Meghna and the Karnaphuli are important, and their
tributaries numbering about 230 with a total length of about 24140 k.m. covering the
country How down to the Bay of Bengal. The alluvial soil is thus continuously being
enriched by heavy silts deposited by rivers during the rainy season” (Statistical year
book of Bangladesh 2001, page-19, 22nd edition).

1.2.4 Forest

“The total forest area covers about 13.36% of the land area. The country produces
timber, bamboo and cane. Bamboos grow in almost all areas but quality timber grows
mostly in the valleys. Among the timber sal, gamari, chaplish, telsu. jarui, teak, garjan,
chandon and sundari are important. Sundari trees grow in the Sundarbans located in
the south-western part of the country bordering the Bay of Bengal, Plantation of
rubber in the hilly regions of the country was undertaken recently and extraction of
rubber had already started. Varieties of wild animals are found in the forest areas.
Sundarban is the home of the world famous 'Royal Bengal Tigers' and cheetahs, of
other animals elephants, bears, deer, monkeys, boars, leopard, and crocodiles are
worth mentioning. A few hundred species and sub-species of birds are found in the
country. Some of them are of seasonal and migratory types” (Statistical year book of
Bangladesh 2001, page-19, 22nd edition).

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1.2.5 Government

Since the nation's formation in 1971, the government of Bangladesh has undergone
many changes and a secular parliamentary form of democracy was established by
the 1972 constitution, but it was suspended in late 1974 and replaced in January
1975 by a presidential form of government. The 1972 constitution, as amended, was
suspended again in 1982 after a coup d'& état. 4
A ban on political activities was
withdrawn and the constitution reinstated in 1986.

“Bangladesh became independent and sovereign after a clarion call Bangladesh


now has a multi-party democratic system with a parliamentary form of
government. A sovereigntary parliament (Jatiya Sangsad) is elected by the people for
a five-year term. It acts as the legislature and approves the annual national budget.
It can amend the Constitution with the support of at least two-thirds of the
330 members in the House. A simple majority is, however, sufficient to approve
laws and pass the budget. Three hundred Members of parliament are elected by
direct franchise while 30 seats reserved for women are filled in through indirect
election by elected MPs. Parliament has to sit every two months and is summoned
into session by the President. It has tenured of five years” (Bangladesh History and &
Government, Title: Democratic System).

1.2.6 Bangladesh Economy

“The economy of the country has achieved a growth rate of 5.3% during the year
2002-2003 compared to 4.8% during the preceding year. GDP during the year was
US$ 5189 million compared to US$ 47571 million during the preceding year. Per
capita GDP was US$ 389, which was US$ 361 during the previous year Inflation
increased to 5.2% during 2002-2003. Agriculture still holds an important position in
our national economy in creating employment and increasing national income. The
contribution of this sector in national income is about 23.5%. Growth in agriculture
has increased to 3%. Fish production has increased by 2.3%. Growth in the sector
during the preceding year was 2.2%, Food production during the year 2002-2003 was
about 27.1 million tons, compared to 26.1 million tons in the year 2001-2002. As the
depression in the world economy is almost over, growth in the industry sector during
the year 2002-2003 Increased to 7.3% compared to 6,6% during the previous year”
(Annual Report 2002-2003, EPB, Page – 6-7).

“Gross national savings during the year was 18.24% of GDP compared to 18.5%
during the previous year. Gross fixed investment increased by 6.3% in 2002-2003
compared to 7% in 2001-2002. Total investment during the year 2002-2003 was US$
1615.25 million out of which US$ 1512 million was registered with the Board of
Investment. Investment made by Bangladesh Small & Cottage Industries Corporation
was US$ 18.25 million; Investment in the EPZs was US$ 85 million. Import payment
during the year 2002-2003 was US$ 9658 million compared lo US$ 8540 million
during the year 2001-2002. Import expenditure increased by 13%. In total import, the
contribution of" capital goods was 22%, industrial raw materials 16%, primary
commodities 10%, others including EPZ 45%. Total export earning during the year
2002-2003 was US$ 6548 million. The principal exportable are - Woven garments

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49.7%, Knitwear 25.26%, Frozen food 4.91%, Jute Products 3.93%, Leather 2.92%.
Chemical Products are 1.53% and Raw Jute 1.26%. Trade deficit during the year
increased to US$ 3110 million, which was US$ 2554 million during the previous year.
Remittance from expatriate Bangladeshis was US$ 3000 million compared to US$
2501 during the preceding year registering an increase of about 20%” (Annual Report
2002-2003, EPB, Page – 6-7).

1.2.7 Labor

”The civilian labor force of Bangladesh was estimated in 1998 to include 64.1 million
people. Agriculture (including fishing) employs 64 percent of the workers, while 9
percent worked in industry and 24 percent in services and the unemployment and
underemployment are significant problems in the country” (Global Interactive Marketing
and Technology Solution).

“Occupationally, 75 percent of the civilian labor force, which is currently estimated at


56 million, is directly or indirectly engaged in agriculture. Only 12 percent is engaged
in industry. Unemployment is estimated at around 18.5 percent. In terms of age
structure, it is more youthful than in the western countries. Heavy pressure of
population on scarce land has no doubt created an extremely unfavorable land-man
ratio. Coupled with this is the problem of unequal distribution and heavy
fragmentation of land in the rural areas. This is expected to improve with more
vigorous efforts at poverty improvement and advancement of educational and social
consciousness. Slowness of the agricultural sector has resulted in its increasing
dependence on the whims of nature and the per capita daily availability of food grains
coming down to low level of 432 gram. Nearly 45% of the people live below the
poverty line” (Discovery Bangladesh, Wednesday April 13, 2005).

1.2.8 Manufacturing

The manufacturing sector, which contributed 18.10 percent of Bangladesh's domestic


product in 1998, is made up principally of unmechanized, small-scale enterprises.
The chief manufactures of the country are jute products (such as cordage and sacks),
textiles, processed food, beverages, tobacco items, and goods made of wood, cane,
or bamboo. Large-scale factories process jute and sugarcane. Much of the nation's
heavy industry, including a small steel mill, is in the port of Chittagong (Global
Interactive Marketing and Technology Solution).

1.2.9 International Organizations

”Bangladesh is a member of the Commonwealth of Nations and was admitted to the


United Nations in 1974 and It also belongs to the Colombo Plan for Cooperative
Economic and Social Development, headquartered in Sri Lanka” (Global Interactive
Marketing and Technology Solution, Page-1, Front page), title: About Bangladesh History).

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1.1.10 Commerce and Foreign Trade

”The per-capita volume of Bangladeshi internal and foreign trade is low. Domestic
trade is conducted largely through thousands of periodic markets called hats. Since
independence in 1971 the value of Bangladesh's annual imports has usually been at
least twice that of exports; in 1998 imports cost $6.9 billion, and exports earned $4.2
billion” (Global Interactive Marketing and Technology Solution, Page-1, Front page. “The
principal exports are jute products and raw jute; clothing, seafood, tea, and hides and
leather goods are the other important exports. Imports include foodstuffs, basic
manufactures, mineral fuels, machinery, and transportation equipment. Exports go
mainly to European countries (especially Germany and Italy), the United States, Hong
Kong, and Japan; imports come chiefly from the India, European countries, China,
Japan, Hong Kong, South Korea, and the United States and only a small number of
tourists visit Bangladesh each year” (Annual Report 2002-2003, EPB, Page – 29-31).

1.3 Incentive to Export-Oriented and Export-Linkage Industries

Export-oriented industrialization is one of the major objectives of the Industrial Policy


1999. Export-oriented industries will be given priority and public policy support will be
ensured in this respect and an industry exporting at least 80% of its manufactured
goods or an industry contributing at least 80% of its products as an input to finished
exportable, and similarly, a business entity exporting at least 80% of services
including information technology related products will be considered as an export-
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oriented industry. The export-oriented industries, further to the provisions of
Bangladesh Bank foreign exchange regulations, will be entitled to receive additional
foreign exchange, on case to case basis, for publicity
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campaign, opening overseas
offices and participating in international trade fairs. The entire export earning from
Handicrafts and Cottage Industries will be exempted from income tax, for all other
industries, income tax rebate on export earning will be given at 50 percent and 100%
percent export-oriented industry outside EPZ will be allowed to sell 20% percent of
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their products in the domestic market on payment of applicable duties and taxes.
The Export-oriented industries which are identified by the government as "Thrust
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Sector" will be provided special facilities and venture capital support.

Apart from the above-mentioned facilities, other facilities announced and provided in
the Export Policy will be applicable to export-oriented and export-linkage industries.

1.4 Handy Craft of Bangladesh

“The traditional crafts of Bangladesh have been a focal point of interest for visitors
from abroad for centuries. The rural-based infrastructure has made it a potential
ground for the development of numerous items crafted out of wood, jute, cane,
bamboo, grass, straw, clay and other indigenous raw materials. The items produced
by early craftsmen were not only singularly beautiful, but also representative of the
culture, tradition and customs of the country. With the passage of time, however, new
and modern styles and designs have been adapted and this has paved the way for a

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unique blend of the old and the new. Popular items in vogue are bamboo mirror and
picture frames. Split bamboo shoots can be used as wall lining to create the ultimate
tropical decor. Bamboo and cane furniture as well as rattan, grass and cane
handicrafts and cane screens are just a few of the products available in an amazing
array. Leather goods of attractive design and finishing are being produced by skilled
craftsmen; the items produced are handbags, wallets, belts, shoe uppers, travel bags,
pen holders, card holders and many other utility items. Jute again is another fiber
from which a variety of useful products can be fashioned-be it bags, belts, light shoes,
wall hangings, draperies and of course jute carpets. Color fast, fire-resistant, hazard-
free jute carpets are unbelievably price advantageous. They are also popular for
health and environmental reasons all over the world” (Information Division, Export
Promotion Bureau, March - April '99).

1.4.1 Handicraft Sector

“Bangladesh is now very much a part of the international scene and keeping in mind
the discerning taste of the consumers, a vast range of crafts and novelties are now
produced in the country under the technical supervision of qualified
product development specialists. With the resurgence of worldwide interest in cane,
development of cane products has gained momentum. Bamboo, another tropical
grass is often used as a base for support of cane furniture and handicrafts, Bamboo
baskets of various shapes and sizes are in great demand in Europe and America”
(Export Promotion Bureau, March - April '99).

“Five Bangladeshi handicraft companies recently participated in the Frankfurt


international trade fair Ambient-2005 and received spot and prospective orders of
US$ 550 thousand (5.5 lakh). The five companies, which participated in the fair under
the auspices of the Export Promotion Bureau (EPB), are Creation (Pvt.) Limited, Folk
International, Heed Handicrafts, the Source and Wax Lyrical. The EPB set up a
pavilion for the companies in the fair, the biggest ever for handicraft and consumer
goods. The EPB takes part in the fair every year on a regular basis to promote and
expand the export of handicraft items from Bangladesh” (Daily News Monitoring Service,
February 25, 2005).

1.4.2 HANDICRAFT EXPORTS

The most recent national survey on handicraft and cottage


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industries in Bangladesh
was undertaken by BSCIC in 1991 and published in 1994. The survey found that 1.3
million people were employed in handicrafts and cottage industries and over three
quarters are employed in three industries - food preparation, textiles/leather, and
wood/cane/bamboo, these were followed in importance by metal work and potteries
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including minor crafts, a total of 940,000 were employed in craft industries. Exports
of general handicrafts reached a peak of US$ 8.7 million in 1991/92 and declined to
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US$ 6.5 million in 1994/95, 0.2 % of total manufactured exports. By contrast leather
goods exports increased from nothing in121990/91 to US$ 6.4 million in 1994/95 and
artificial flowers from nil to US$ 800.000. The main importing countries of general

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handicrafts in order of importance are UK, USA, Germany, and Italy; for leather
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goods, USA, Japan and Italy for artificial flowers Italy.

1.4.3 GOVERNMENT POLICY

“The Bangladesh Export Development Strategy 1992-2000 includes measures to


promote handicraft exports and the identification and proposals for the removing
bottlenecks limiting the growth of handicraft exports is the objective of the present
report. The incentives relating to bonded import of materials and duty drawback on
imports are not of great importance to the handicraft sector as local materials are
mostly used Even where imported materials are required (e.g. dyes and chemicals)
they are purchased by the small handicraft producers in the local market” (Report on a
mission by David Holboutnr, May 8 – June 1996, Page- 2-3).

The packing credit and simplification of export procedures will help especially the
small and novice exporter, but it seems that much more progress is required in ibis
direction Assignee with participation in fairs is useful, but the contribution of costs
required of the exporter, is usually too great for the smaller entrepreneur to benefit.
Specific measures to promote leather goods exports- which include tax and duty
concessions and bonded facilities, are important, as leather goods are the most often
exported item from the handicraft sector. “The 25% subsidy on local fabrics used for
export may help certain handicraft industries, especially embroidery and embroidery
related products. The export Crash Programme includes several handicraft product
categories - gifts, stationary, artificial flowers, bamboo and cane. Certain measures
are aimed specifically at the handicraft sector - the setting up of a handicrafts village,
and award of a national trophy, but neither of these measures have a very direct
bearing on the promotion of exports Developments in the use of jute through technical
innovation, may be the answer for the long term development of jute product exports
But they may not help the existing producers of jute export handicrafts” (Report on a
mission by David Holboutnr, May 8 – June 1996, Page-2). At present most jute handicrafts
are made by small rural groups using locally purchased fiber, and the finished product
is purchased by an exporting organization in Dhaka. If the fiber has to be pre-
processed in bulk, then it will probably be more feasible to also centralize the
manufacture of the finished product.

1.4.4 HANDICRAFT INDUSTRY

Thirty three (33) handicraft enterprises were surveyed in detail comprising.

Organization Number

NGO exporters of handicrafts………………………………………7


NGO or cooperative producers (non-exporters)………………….4
Private manufacturer/exporters ..…………………………………10
Small private manufacturers (non-exporters)……………………12

Source: Report on a mission by David Holboutnr, May 8 – June 1996, Page-3

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The large NGOs were the main buyers of the products of the small non-exporting
private manufacturers as well as the small NGO producers. The large NGOs
surveyed one was 100% export and the remaining sit combined exporting with local
sales through their own retail outlets, mainly in Dhaka. For three, the major part of
their income was export sales, and for three it was in retail sales. “Although the large
NGOs involved in handicrafts are basically traders, they provide a great deal of
support to their cooperative and self-help group suppliers. Assistance may include
training, product development and design, start up financial assistance-management
support, transport and materials supply of the eight private manufacturer/exporters
three were 100% export, three exported the major part of their output and also
supplied (mainly NGO) handicraft retail outlets and two sold the major part of their
output through their own retail outlets” (Report on a mission by David Holboutnr, May 8 –
June 1996, Page-3).

1.4.5 DESIGN, QUALITY AND PRICE

The NGO exporters have often quite large design departments, staffed by art college
graduates who have in addition received training and guidance from foreign designers
supplied by their foreign partners. Private enterprises often depend on the creativity
and the ability of the proprietor to develop new product ideas and designs, often very
successfully. Others simply copy designs from local competitors or foreign catalogues
or produce to specifications supplied by the customer (which is often one of the big
NGOs).

The quality of the best of the traditional decorative work on Jute product, Home
testile, Lather goods, Wooden, Bamboo and Candle product are outstanding.
Unfortunately the making up and finishing of articles is usually not up to the same
standard as the technical work, and often the quality of the assistance and coating
and other materials also detracts from the overall effect.

“The huge cost projected is unjustified and unsustainable in the long term. The
proposals for making the centre self-financing are unrealistic. A more focused and
cost effective approach avoiding an unnecessary man-agreement burden and high
fixed costs (in particular a big wage bill) could provide essential support services
which are difficult or impossible for members to acquire individually, leaving members
to undertake those tasks most effectively tackled by the individual enterprise” (Report
on a mission by David Holboutnr, May 8 – June 1996, Page- 5-7).

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1.4.6 Demanded Handicrafts in Bangladesh

The demanded Handicraft products are available in Bangladesh, these are as below:
Main Product Sub Product
Twine, hessian, gunny bag, twill, carpet
backing, wool pack, tarpaulin, mats,
Jute products canvas, wall cover, upholstery, and as
furnishing fabrics of different types and
natures
Nakshi Katha, Jamdani Sharee,
Benarashi Sharee, Bags, bed cover,
Home textile Cushion Cover, Ornaments Box, Table
Prettification, Vest, Wall Mat
Leather Embroidered bags, spectacle
cases, chair backs, embossed coin purse
Lather goods wallets made from buff leather, nappa
leather wallets and bags etc.
Wooden Desk Accessories, Kaleidoscope, Kitchen
Accessories, Photo Frame, Show Piece
Bamboo products Basket, Shoe piece, wall accessories
Candle products Birth candle, musical candle, candle doll
Source: Brac-Arong

1.4.6.1 Jute Product

Jute a natural fiber has been in use for various purposes over the centuries through
the world. Bangladesh has been blessed with the favorable climate and the potential
to be the largest grower and export of the best quality jute, the golden fiber. Jute,
having been the most environment friendly natural fiber because of its inherent
unique properties, has great advantages over man-made artificial polymer fiber,
twine, hessian, gunny bag, twill, carpet backing, wool pack, tarpaulin, mats, canvas,
wall cover, upholstery, and as furnishing fabrics of different types and natures sheet
and packing materials on many counts. The uncompromising resolve to stick to the
use of the best raw jute, strict adherence to buyer’s needs and specification rigorous
quality control and timely delivery Bangladesh has earned an international eminence
as the principle source of high quality jute products.

1.4.6.2 Home Textile

In recent years, remarkable progress has been made related to the development of
this sector. Home textile products of Bangladesh which include all sorts of towel, bar
mat, nakshi katha, jamdani sharee, benarashi sharee, bags, bed cover, cushion
cover, ornaments box, table prettification, vest, wall mat, bath rob, wash cloth, ehram
for haj, kitchen gloves, dish cloth, mommy napkin, pillow cover etc. are quite popular
in the world market for their quality and design. The government has formulated a
favorable police for its over all development envisaging its potentiality. Producers for

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export at the custom points have been simplified and speedy shipment of goods has
been emphasized for boosting export.

“The art of weaving is perhaps as old as human civilization. Bangladesh can proudly
claim to have many branches of this ancient art, of which the best known and most
popular is the specialty Jamdani, which is one of the varieties of the famous Dhaka
Muslin or Mul-mul. For over ten centuries, the Dhaka area has been renowned for this
fine fabric. So fine was its texture and quality that it was said to be woven with the
"thread of the winds" and the Greek and the Roman texts mention the "Gangetic
muslins" as one of the most coveted luxury items. Woven from superfine cotton or silk
yarn, jamdani fabric is embroidered or inlaid on the loom with silk, gold and silver
threads. Over the years, the weavers simplified the designs making them more
stylized and geometric.

A new handloom product has been developed by Grameen Bank- a leading non-
government rural-oriented financial institution with trade name "GRAMEEN CHECK"
which is soft, colour fast and 100% cotton, The "Grameen Check" fabric and the
apparels made out of it have already made a breakthrough in the European markets
with potential of penetrating Other- parts of the world.
Another delicate and finely woven product is the glowing soft silk of Rajshahi in
rainbow hues. Very ethnic are the striking, bold designs which is the trademark of the
colourful, tough fabric woven by the weavers belonging to the various tribal races who
inhabit the hilly areas like Cox's Bazar, Rangamati and Sylhet.
Apart from those that already have been mentioned, there are numerous other
handloom materials which have made their particular district of origin famous. The
most notable are sarees of Dhaka, Tangail and Pabna, Monipuri blankets of Sylhet
and Khadi or Khaddar products of Comilla.
At present, the number of handlooms in Bangladesh is five hundred thousand and
there are about one million weavers. Handloom products have shown decisive
upward trend in the export market since 1972 and Bangladeshi handloom products
with their distinctive design and superior quality have created a niche for themselves
in overseas markets. We can now proudly claim to be equipped to meet the demand
for the latest fashion. An international expert's study reveals that the technical skill of
the weavers of Bangladesh is second to none in the handloom producing world.
The product range of handloom is simply amazing and include Muslin Jamdani
Sarees, Bedcovers, Bedsheets, Tapestry, Upholstery, Place mats, Rugs or Blankets,
Satranji or Durees, Crochet, Muslin, Tribal textiles, Silk fabrics, Sofa covers, Block
Prints, Table cloth and Napkins, Towels, Dusters, Kitchen towels, Gents, Ladies and
Baby Wear and Shirts, Panjabis, Bedsheets and other household linen in printed,
plain or embroidered Khadi”.
Export Promotion Bureau Bangladesh Web page. Title about handloom
http://www.epbbd.com/expprod/handloomT.htm

1.4.6.3 Lather Good

Leather goods of attractive design and finishing are being produced by skilled
craftsmen, The items produced are handbags, wallets, belts, shoe uppers, travel
bags, pen holders, card holders and many other utility items.

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A leather product of export quality require specialized machinery and equipment
(even though the work is very labor intensive and requires a high level of craft skill)
and is usually done in a factory with a high level of division of labor. Only one exporter
visited had the technical standards, and capacity, to manufacture competitively for
export of retail goods, although there are specialist markets which the smaller
factories may be able to exploit. Although it is difficult for small manufacturers to get
the quantifies they need at competitive prices in the open market; most of the better
quality leather is exported or used in the tanners' own leather goods and footwear
manufacturing units. A large minimum order is required to get supplies direct from the
tanneries. Moreover at present in Bangladeshi prospective lather products are
Leather Embroidered bags, spectacle cases, chair backs, embossed coin purse
wallets made from buff leather, nappa leather wallets and bags etc.

1.4.6.4 Wooden

Wooden made handicrafts are popular through the world. Mainly this sector is popular
in producing furniture, dolls, showpieces etc.

1.4.6.5 Bamboo Product

With the resurgence of worldwide interest in cane, development of cane products has
gained momentum. Bamboo, another tropical grass is often used as a base for
support of cane furniture and handicrafts, Bamboo baskets of various shapes and
sizes are in great demand in Europe and America. Popular items in vogue are
bamboo mirror and picture frames. Split bamboo shoots can be used as wall lining to
create the ultimate tropical decor. Bamboo and cane furniture as well as rattan, grass
and cane handicrafts and cane screens are just a few of the products available in an
amazing array.
Export Promotion Bureau Bangladesh Web page. Title about handicraft
http://www.epbbd.com/expprod/handicrafts.htm

1.4.6.6 Candle Product

Candle is now a days popular as because of its design, color and low price. It is very
easy to give attractive shape to candle and the process also simple and less costly.

1.4.7 Problem of Handicraft Exporting from Bangladesh

1. Handicrafts, unlike fair trade foods, are not repeat products.


2. Alternative Trading Organizations and fair trade importers have
historically lost market share to commercial importers
3. Expenditure is very seasonal.
4. World Shops generally lack professionalism
5. Global recession
6. Stiff competition from China and SE Asia, where labor rates are very low
7. Traditional giftware faces competition from ‘gift experiences’, where
vouchers can be exchanged for activity days
8. ATOs and importers are focusing on food products to increase sales
(especially in mainstream outlets)

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Source: Ecommerce and poverty

Lack of products and designs suitable for the commercial market has been identified
as one of the main constraints to growth of handicraft exports from Bangladesh in
recent years. There is little capacity for expansion of traditional craft exports; the
demand for handicrafts as such is very limited. Handcrafted products have to
compete directly on price, design, and capacity, with modern machine made products
as well as with handcrafted products from other countries. House wares, home
decoration, seasonal products, toys and personal accessories and designs need to
be in modern or in nostalgic styles in the western tradition Existing Bangladesh
products and designs are often clearly Bangladeshi in style. They are often very
beautiful, and there has been a very healthy trend in the demand in the local market
in recent years. But a reorientation of the product range is needed to benefit from the
export and job creation opportunities presented by the challenge of the international
market.

The NGO exporters have design departments, staffed by trained designers who
develop products suitable for the local and/or the foreign Alternative Trading
organization
14
(ATO) market, which organizations also provide product development
assistance. However they do not have much experience in developing products for
the commercial export market. The decline in ATO demand for handicraft products
has forced the NGO exporters to look to the needs of commercial
15
buyers in order to
maintain and expand their employment creation programs. Private enterprises often
depend on the creativity and the ability of the proprietor to develop new product ideas
and designs. Others simply copy designs from local competitors or foreign catalogues
16
or produce to specifications supplied by the customer. Few have the expertise and
necessary exposure lo international17markets to develop products which fully exploit
the skills and raw materials available. The main constraints on their growth are lack
of access to capital, lack of original and export oriented designs, inefficient production
18
systems and inadequate technology, and insufficient market exposure.

1.4.8 Prospect of the Handicraft in Bangladesh

Bangladesh is a land of opportunities. Fertile land, hundreds of inland water sources,


favorable climate, abundant human resource and ethnic homogeneity are the main
strengths of the country. Every inches of land in this country can be utilized. Besides,
some development indicators like mortality rate, literacy rate, and nutrition rate are
also increasing. And democracy has been institutionalized. Despite so, I think we
failed to attain the growth rate that it should be. Now time has come to redesign
Bangladesh economic policy to attain faster growth. Keeping the open market
philosophy in mind we have to develop our economic policy in a way so that our
export volume substantially increases and side-by-side import substitute industries
successfully compete with foreign goods. Above all, to attain ultimate and sustainable
economic growth there is no alternative of massive rural economic development.
Considering all the implications of new economic order we like to present an
economic strategy through which we could achieve economic independence.

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“We have divided the economic activities or basic types of industries into three
categories, which are discussed below:

a) Agriculture
b) Labor
c) Handicraft

But our main concern deals with effective promotion strategy of the Handicrafts in
Bangladesh. Our handicraft has earned enormous respect in the global market with
the initiative of Arong and some other NGOs. Most of the ingredients of these items
are locally made and easily available. Technology is well known to us and our rural
women are very efficient in manufacturing these handmade items. We can produce
more quality handicrafts with better training and technology. More commercial firms
should come-up to make the work done by rural women workers and market them
both at home and abroad. If men can generate income through agriculture and other
businesses women can also earn through handicrafts. This combined effort and
earnings of the family members ultimately increase their lifestyle and generate more
money flow in the economy. Not only that these industry will also uplift the image of
our cultural heritage to the global community. This basic industry can be the
backbone of our economy. If we are able to develop the industries we can earn
foreign currency through exportation after meeting our own need” (Author: Shayokh
Ahmad, March 01, 2005).

1.4.9 Communication Systems

Our study has been directed communicate to the effective promotion strategy of
Handicrafts; how Bangladeshi Handicrafts very promptly can influence the world
market from setting home situations? So, the convenient of the promotion Handicrafts
in the world markets we may apply few communication systems which will be more
effective for those who are exporter in Bangladesh. The communication systems are
as follows:

1.4.9.1 Media Campaign


Bangladesh handy craft manufacturers can attain world wide export opportunity
through media campaigns .To promote awareness about handy crafts among the
people, media campaigning is very vital promotional activities. To visualize and
provide information about handy crafts, advertising is very effective as well as
communicable. Detail information make available in Index but some sources are
given below:

Export Import Burro


Aarong Web Page. Title about Aarong – An Overview
http://www.brac-aarong.com/about.asp

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According to above representation , we realize that , if we research the above
sources , should get accurate information and also establish handy trade in
international market.

1.4.9.1 Direct Export:

Direct export is one of the most popular and profitable media for the exporters.
Thorough these media exporters attract the foreign importers and by satisfying their
demand exporters export the goods directly to the importer’s country.

1.4.9.2 Online Marketing


Online Marketing facilitates number related activities such as product advertisement,
order, payment and place requirement etc.
Philip Kotler & Gray Armstrong, Principles of marketing, Seventh Edition, CHAPTER
15 PROMOTING PRODUCTS: MARKETING COMMUNICATION STRATEGY. Page #
479
As prior , we assumed, Bangladesh is a cost effective handy craft manufacturing
country in the world but they fail to satisfy the world market quality handy crafts
demand within a cheaper price , only because of ineffective communication system.
From our view point, through online , can place our products , the importers can
give their specification of desired product in accordance their requirement and
exporters also state their requirement about their products. So its very easier way to
transaction between buyers and sellers and also transparency is there. We provide in
detail in Index, now we just provide the sources in below:

Alibaba.com web page. Title about Product


http://www.alibaba.com
From the above scenario, if we examine and explore correctly through sources
with accurate and precise information, should be benefited to promote
Bangladesh handy crafts manufacturers in international market.

1.4.9.3 National & International trade fare

Bangladesh is developing country and growing up very fast. As because we are


developing country , so to reduce the rate of unemployment, to save foreign
exchange , also use inexpensive and abundant resources, to increase local
production, should have to focus on local and international operation by export,
invite foreign importers who are interested to buy handy crafts from Bangladesh
etc. Some sources are given below:

Source:
E-commerce for crafts producers web page
www.ecommerceandpoverty.info/chap6.htm
www.basebangladesh.com/

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From the above state, if we observe and discover correctly through sources
with accurate and precise information, should be benefited to encourage
Bangladesh handy crafts manufacturers in international market

1.4.9.4 Local & International Advertisement

The world is very much competitive now and Medias are very strong and available to
reach almost every one in the world. So advertising is very important.
Advertising locally and internationally is now a days very attractive and effective for
any product.

1.4.9.5 Personal selling

Personal selling means the personal presentation of the product by the companies’
sales force. This promotion tool builds strong customer relationship
(Chapter 15 Page 461, Principles of Marketing. By Philip Kotler & Gary Armstrong)

1.5 Government Facilities

To attract foreign direct investors, the government should take initiative and corrective
actions to invest our country. The government should provide all protection and
also political stability so that they feel secure to invest here and also cover their
return as well as profit. The necessary sources are given below:

Source:
Export Import Burro
www.ecommerceandpoverty.com
http://www.brac-aarong.com/about.asp

According to above illustration , we comprehend that , if we research the above


sources , should get accurate information and also establish handy trade in
international market.

1.7 Conclusion

Opportunities also exist in export markets as these markets are exposed to the
unique design characteristics of Handicrafts. Small amounts of handicrafts are
already being exported to Europe, Japan and the U.S. however exporters continue to
be confronted by numerous obstacles in meeting the quantity and cost demands of
these world wide markets. In order for exporters to be able to take advantage of new
economic opportunities and capture new markets the need assistance to promotion
our production capacity: Up-gradation the quality of Handicrafts products will be the
standards demanded by potential buyers and overcome the many obstacles situation
of our country. The NGO’s Project and local private organization also can be provided
the necessary support to the Export Promotion Department in the Ministry of
Commerce, to provide trouble shooting help desk services, government to
government liaison, and international promotion of Bangladeshi Handicraft products.

- 16 -
The background clearly indicates the opportunity for Bangladeshi handy crafts in the
form of handy crafts made of Jute, home made textiles, leather goods, wooden
products and Bamboo & candy products and in the market USA, CANADA &
European Union. However the Strategic implementation issue and confirmation of the
above need to be assumed.

2. Synopsis

A sufficient number of exporters to justify its setting up must make a commitment to


exploiting the resources of the centre. They should be committed to developing their
businesses by updating and upgrading their product range, and be prepared to
convert new ideas on products, designs and production into a commercial reality by
contributing the necessary resources - materials, sample making capacity
management time, test production, market promotion etc.

The successful achievement of the project purpose i.e. the development of more
acceptable products am designs, can contribute to the achievement of the overall
objective of increasing exports, assuming that EPB and the ITC export promotion
project give special attention to the promotion of handcrafted products and support
exporters in their efforts to find new international markets - for gifts, house wares,
decor, seasonal products, toys, and accessories.

The project proposal is based on the assumption that candidates of the right caliber,
with appropriate qualifications (albeit in need of further training), and very special
personal qualities, will be available to recruitment to the key posts, in particular the
posts of director and senior designer. If this is not the cast rather than appointing less
than suitable persons to key posts upon which the whole success or failure the
project depends, an alternative approach to providing the product development needs
of exporters must be adopted. This might for example consist of a Bangla craft
program based on the use of free-lance of part-time designers, technicians and other
consultants to supply the services required by exporters It assumed however, that a
qualified information officer/librarian can be recruited (preferably one with a interest in
design, handicrafts and related subjects) as a suitable candidate would be required to
have recognized and fairly common qualification.

3. Problem Identification:
The secondary study indicate that any clear cut promotional strategy to ensure
successes of handy craft export from Bangladesh are not been undertaken. In edition,
the issue of which product for market or media should be consider has not been
designed clearly. For more it also needs to assume the feasibility of the strategy if it is
implemented.

4. Methodology:

4.1 Broad Objective:

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The objective of the research is to identify the most effective promotion strategy for
Bangladeshi handy crafts.

4.2 Specific Objectives:

1) To check if the product identify in the secondary list actually be considered


prospective.
2) 2) To assess the demand for various products
3) 3) To check the opportunity to export Bangladeshi handy crafts regarding
competitive advantages.
4) To design a promotional strategy based on the opportunity.
5) To measure the effectiveness of the various media that can be used for
promotion of handy crafts.
6) To identify a ‘SWOT’ analysis of the various product.

5 Hypotheses:

Types of Information Hypothesis


Are the products selected for promotion H1: Based on Background study we
prospective? can say that the product classes those
we have chosen for our study are
prospective.
What will be the sequential order of the H1: Based on Background study,
selective handy crafts? among those selective products, the
sequential order is handy crafts made of
Jute home made textile, leather goods,
wooden products and Bamboo & candy
products
What are the attributes given by the world H0: Qualitative
exporters regarding their handy craft?
What will be the competitive advantages that H1: Bangladeshi exporters can export
can be provided by Bangladeshi exporters to quality handy crafts with in a cheaper
the world market? price.

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H1: Bangladeshi exporters can export
handicrafts which will represent the
uniqueness of Bangladeshi culture &
tradition.
What are the promotional strategies H1: From background study we can say
available to the handy crafts exporters of the that on-line marketing is one of the most
world market? effective promotional strategies
available to the handy craft exporters of
the world market.
H1: From background study we can say
that international trade fair is one of the
most effective promotional strategies
available to the handy craft exporters of
the world market.
What will be the effective promotional H0: Qualitative.
strategy that can be applied for promotion of
Bangladeshi handy crafts?
What are the media available in Bangladesh H1: Local and international trade fair is
for export purpose? a media available in case of exporting
handy crafts.
H1: B2B is a communication media
available in case of exporting handy
crafts.
What are the most effective media that can H0: Qualitative.
be used for export purpose?
What are the ‘Strengths’ of Bangladeshi H1: From background study we can see
handy crafts? that Lower cost is a significant
characteristics that is considered as a
‘Strengths’ of Bangladeshi handy crafts.
H1: From background study we can see
that idiosyncrasy in design is a
significant characteristics that is
considered as a ‘Strengths’ of
Bangladeshi handy crafts.
What are the ‘Weaknesses’ of Bangladeshi H1: From background study we can see
handy crafts? that lack of proper communication is a
‘Weaknesses’ of Bangladeshi handy
crafts.
What are the ‘Opportunities’ of Bangladeshi H0: Qualitative.
handy crafts?
What are the ‘Threats’ of Bangladeshi handy H0: Qualitative.
crafts?

To identify the facilities those are given by Bangladeshi government for


exporting Bangladeshi handicrafts.

- 19 -
6 Research Question:
1. What types of product were exported more in last five year?
2. What is the listing position of the handy crafts those are by us?
3. Does government provide any facility for those products?
4. Is there any research or any study takes place for particular products?
5. When the exporter or the government fines out that those products has future for
export?
6. Find out what is the last 5 years ranking position of handy crafts on export ?

7. To identify which country is eagerly interested for the handy products?


8. Are they have any categorize for that product?
9. To identify what strategy they are easily reached to obtain?
10. Regarding foreign country, to identify, what is the best strategy which is
appropriate for them?
11. If they follow any existing marketing strategy?
12. To identify, if there any training institutions regarding handy crafts (foreign
countries)?
13.What type of conveniences provided by the government in export of handy
crafts and also compare and evaluate with other countries?
14. To identify, what type of media they are using for export?
15. If there is any organization in abroad as regards handy crafts?
16. To identify what facilities are provided by Bangladesh Embassy in Foreign
country as regard to export?
17. What are the ‘Strengths’ of Bangladeshi handy crafts?

18. What are the ‘Weaknesses’ of Bangladeshi handy crafts?

19. What are the ‘Opportunities’ of Bangladeshi handy crafts?

20. What are the ‘Threats’ of Bangladeshi handy crafts?

7. Scope of The study:


Scope of the study is limited to designing the effective promotion strategies for the
handy crafts. The handy crafts will be limited to handy crafts made of Jute, home

- 20 -
made textile, leather goods, wooden products and Bamboo & candy products. Both
Qualitative and quantitative research techniques will implement.

8. Sampling Type:

Sampling is a part or portion of the population chosen for the study or research. We
use sampling because it is not possible to count or measure every item in the
population. Through Sampling study, we can simplify ‘what information is required,
how should the sample members be selected,’ etc.

For our study we only focus on Non- Probability Sampling it should use for selecting
sample members primarily as a matter of convenience. In non- probability, we will go
for judgment and convenience sampling. Through it, we will assess the reactions of
the people on the promotion strategy of Bangladesh Handicrafts. By judgment and
convenience sampling , the data or information is easily communicable , accessible
and also inexpensive as well as we can collect data from specific areas which
create more values in a short time.

8.1 Sampling Unit:


The followings are to be sampled -

EPB (Export Promotion Burro)


Exporters of handy crafts
Foreign Projects on rural development
Bangladesh ‘Loc O Karu Shilpo’ Foundation.

8.2 Sampling Elements


Director General of Export Promotion Bureau, (EPB)
Exporters of Various Handy Crafts
Project Directors and Designers of Foreign Projects on rural development.
Handy crafts manufacturers of Bangladesh ‘Loc O Shilpo’ Foundation –Sonargaon,
Saver.

8.3 The Size of the Sample

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It is an important aspect of the planning of any survey involves the determination of
an appropriate number of sample members. The effective sample size should be
time and cost effective. For our study, we will work on two weeks which is 14 days.
Each day three members will collect data at 30 minutes. So, we have to locate 168
elements within 14 days.

Confidence Interval: 90% (Assumed)


Error Factor: 10

9. Research Budget:
Activities Cost Tk.
1. Sampling Survey (Including 3000/=
Conveyance)
2. Printing and publication 1000/=
3. Communication 500/=
4. Food 1000/=
5. Amusement 500/=
Total 6000/=

10. Organization:

Organization Profile

Company Name: Nakshi


Address: 16, Paribagh (1st Floor)
Sonargoan Road, Dhaka-1000 Bangladesh.
Mobile: 0189-182790, 0171-104354
E-mail: biddut_dazzle@yahoo.com , suman2100@hotmail.com

An overview of the Organization

The organization has been established to conduct a research based on the


promotional Strategy of Bangladeshi Handy Crafts. There are five people working in
this Organization as researchers. The Organization is doing this research under direct
supervision of Dr. Syed Ferhat Anwar. The research is expected to be completed
within 13 weeks.

- 22 -
Members of the Organization:

Md. Faizul Alam (Team Leader)


Area of Working: Idea Generating, Computer Graphics, Collecting various
types of information, Rearrange types of information, Distribution of the
activities, Data Analysis.

Ronald T. Reberio (Treasurer)


Area of Working: Money Arrangement, Collecting various types of information,
rearranges types of information, sampling survey.

Arafin Islam (Executive Member)


Area of Working: Sampling survey, communicating with other team members.

Humayan Rashid (Executive Member)


Area of Working: Sampling survey, Data Analysis, Communicating with other
sample elements.

Md. Enamul Haque (Executive Member)


Area of Working: Data Analysis, Printing and publication.

11. Contribution of the study:

The study will contribute on both Industry and Community. According to this study or
research, if the handy crafts will be marketed accordingly by promotional strategy, it
may help to create a handy industry in Bangladesh. On the other hand , promotion of
handy crafts will play a major role in case of rural development in Bangladesh
which will help on the development of the local community of Bangladesh. Through
Handy crafts promotion, can be reduced unemployment rate, to create job
opportunity, earn foreign exchange , to develop the trade and industry state and also
enriching our culture as well as civilization.

- 23 -
Research Question Level of Scale Types pf scale
What is the demand of Ordinal Rank order Scale
the following product
classes for export?
What types of product Ordinal Rank order Scale
were exported more in
last five years?
Rank the following Interval Likart Type Scale
product classes
according to their
demand.
What is the standard Nominal
attributes given by the
world exporters for
handicrafts export?
What are the specialties Interval Likart Type Scale
of Bangladeshi
handicrafts compare to

- 24 -
handicrafts of other
countries.

What are the most Nominal Itemized Rating Scale


common promotional
strategies available in
Bangladesh for
handicrafts export?

Chose the most effective Ordinal Rank Order Scale


strategy among the
following strategies for
handicrafts export.

What are the facilities Nominal


given by Bangladeshi
government for exporting
Bangladeshi handicrafts?
Do you think that the Typical Likart Scale
facilities those are given Nominal
by the Government for
exporting Bangladeshi
handicrafts are
satisfactory enough?

What are the short- Nominal


comings of the existing
facilities those are given
by Bangladeshi
Government?

What are the facilities Nominal


that should be given by
Bangladeshi Government
for exporting handicrafts?

- 25 -
What are the medias Nominal
available for export of
Bangladesh?

What are the medias that Nominal


can be used for exporting
Bangladeshi handicrafts
Rank the following Ordinal Q-sorting Scale
medias for exporting
handicrafts considering
effectiveness.
Rank the following Ordinal Rank Order Scale
medias for exporting
handicrafts considering
cost.
Rank the following Ordinal Q-sorting Scale
advantages those are
considered as ‘Strength’
of Bangladeshi
handicrafts?
Do you think Bangladeshi Nominal Typical Likart Scale
handicrafts have any
weakness?
If Yes, then what are the Nominal
‘Weaknesses’ of
Bangladeshi handicrafts?
Do you think Bangladeshi Nominal Itemized Rating Scale
handicrafts have some
‘opportunities’ regarding
handicrafts export?
What are the ‘Threats’ of Nominal
Bangladeshi handy
crafts?

- 26 -
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- 27 -
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- 28 -
17. Export Promotion Bureau, Assistant Editor: Akhtaruzzaman, Report March -
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