Open sky policy
There have been some suggestions by aviation experts and travel agents that the temporary open sky policy which the civil aviation ministry has allowed be extended for a longer period. I would like to know what is an open sky policy? Does this mean that any airline can fly in and carry away passengers to destinations outside Bangladesh? As far as I know, open sky policy is one that is agreed between two countries under a bilateral agreement. For example, Singapore government has open sky policy with the USA under which airlines of both countries can operate as many flights per week they want between the two countries. India has a similar agreement with the US. Bangladesh government has bilateral air agreements with many countries in the Middle East and Europe but these have remained under-utilised by Biman due to its own mismanagement.
On the contrary, airline like Emirates is taking maximum advantage of the bilateral agreement between Bangladesh and the UAE. So are the two airlines of India and GMG Airlines for flights between India and Bangladesh. Recently, an aviation expert on a TV talk show has commented that India has an open sky policy which I defer to agree. Indian open sky policies are limited to scheduled airlines with whom India has commercial agreements and allowed to increase flights during the winter tourist season. This was to bring in over-booked tourists from the West thus assuring a gain in foreign exchange earnings. In case of Bangladesh, it is the reverse.
Even if Bangladesh pursues an open sky policy it does not mean airlines from Far East, Middle East or Europe will rush in. In-coming passenger load to Bangladesh has always been low except during festival periods like Eid-ul-Fitr. Airlines have their own marketing strategies and they look at markets from both end. The best policy which the ministry of civil aviation can pursue is to allow private airlines of Bangladesh to operate on the under-utilised international routes of Biman. This may ensure foreign exchange earnings for Bangladesh as well. Before succumbing to suggestions of our local aviation experts, the ministry of civil aviation should make an in-depth study of aviation policies of neighbouring countries.
Ziauddin Ahmed
Dhaka
The ‘decoupling’ theory — is it working?
With the US economy sinking into recession, the question, which arises, is whether Asia is recession-immune. Many had thought that the ‘decoupling’ theory would work i.e. the theory that Asian economies are unlikely to be affected by the US recession. While it is true that the ‘decoupling’ theory may not have worked as was expected (since the MSCI Emerging Asia Index was down by 25 per cent at one point from its October high, this week), one can still say that this time around the emerging economies would be in a much better position compared to previous US downturns.
It is true that exports and profits would be hurt and it is also true that Asia is also exposed to the sub-prime mess. Singapore, Hong Kong and Malaysia have exports to the US accounting for 20 per cent or more of their GDPs. Singapore’s exports to the US fell by 11 per cent and Malaysia’s by 16 per cent. Despite all this one can still be optimistic because China’s and India’s exports to the USA are equivalent to 8 per cent and 2 per cent of their GDPs respectively. And other important factors are that in East Asia, the macroeconomic fundamentals are strong i.e. they have huge foreign exchange reserves, current account surpluses, strong economic growth rates. In addition, their domestic demand is also very strong and governments have more flexibility. And some economies have already decoupled. For instance Malaysia’s exports to the USA fell but still their GDP increased from 5.7 per cent to 6.7 per cent in the third quarter of last year. Many analysts now say that in 2001 Asian economies were affected not only due to declining exports, but because investment fell sharply. But today firms are in a much better position; capacity utilisation is high across the region, corporate balance-sheets are stronger and real interest-rates are low and thereby indicating investment is unlikely to fall. They can also implement fiscal stimulus measures to boost growth since they are facing budget surpluses. However, Bangladesh, which is heavily dependant on the US for its RMG exports, will be adversely affected.
So, it would be unwise to say that Asian economies will be badly affected. They will be affected but by much less than in the past. That is, the ‘decoupling’ theory may still be alive and well.
Wasif Wahed
Old DOHS, Dhaka
Custodial death
In reference to custodial death, I strongly urge that the court immediately intervene in the matter and appoint an independent investigating authority to enquire into the incident which have caused an untimely death of a man held in judicial custody recently. Particularly, an inquiry should be conducted to find under which circumstances the court granted remand of the victim without any scrutiny about the police conduct. If the abuse of power by the police or judiciary is proven in this case, strong action must be taken against those responsible.
I also demand that an independent judicial body inquire into the negligence committed by the concerned authority. If it is proven that the concerned authorities have committed negligence and the executive magistrate has violated the procedure of law, legal action must be taken against the officers responsible and must give adequate compensation to the victim’s family.
Gopal Sengupta
Canada
