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VOL IX NO REGD NO DA 1589 Friday, August 16, 2002
Headline
Revised Power Tariffs
Who Cares about Consumers?
Nanotechnology and Destroyer Drugs
Iraq Tells US to Drop War Threats
A Vow against Militancy
For Cordial Relations
Reducing Extravagance
News Panel
Editor : Moazzem Hossain
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Revised Power Tariffs


THE decision of the government to increase the power rates, that too, for the second time within less than eight months appears to be ill-timed. The decision is unlikely to be taken well by the common people who are already feeling the heat of the rising prices of some daily necessities due to disruptions created by a flood of moderate scale in a number of districts of the country. The government decision, which came into effect from the first day of the current month, provides for the increase in power tariffs not only for domestic, commercial and industrial consumers but also for the users in the country’s agricultural sector - a sector where power rates were not revised for the last 11 years considering its importance in the national economy as well as paying ability of the small and marginal farmers. It is understood that the government has raised the power rates not on its own but following intense pressure from the multilateral donor agencies, which have set a number of preconditions for extending financial assistance to the country’s power sector. The donors stopped providing loans to the sector since the late '80s alleging its poor performance. They suggested various reforms, including creation of an organisation like Dhaka Electric Supply Authority (DESA), as preconditions for resuming fresh assistance to the sector. There were a number of reforms in the power sector, prominent among them being the entry of independent power producers (IPPs), over the last few years. But the World Bank and the Asian Development Bank on different pretexts have delayed resumption of their assistance, which has again created a different sort of problem in the power sector. The government had to fall back upon costly suppliers’ credit and enter into some unattractive IPP agreements with a view to meeting the huge shortfall in power generation. There is no denying that the performance of the power sector has since long been poor. Inefficiency, corruption, large-scale pilferage of power etc. have rather crippled the sector. The Bangladesh Power Development Board (PDB) and the DESA lose altogether about 100 million dollar annually and the government, on an average, provide an annual subsidy to the power sector to the tune of 350 million dollar, an amount more than the health budget. Yet the number of beneficiaries of the power sector is very low, only 18 per cent of the entire population of the country. That small percentage of the people again has to suffer for lack of reliable supply of power. The situation can be understood well from the finding of a recent WB study that, in the year 2000, consumers had uninterrupted supply of power for only 111 days. Inefficiency coupled with extensive pilferage of power has sapped the financial strength of both PDB and DESA. These two factors long ago had eaten into the vitals of the PDB, which was then solely responsible for generation, transmission and distribution of power. Later, at the dictate of the WB, the DESA was created to take over the power distribution and stop power pilferage. Unfortunately, the new organisation not only failed to demonstrate any positive results but also instantly caught a highly contagious disease called corruption. The average per unit cost of power generated by the PDB itself or purchased from IPPs, according to reports, is higher than that of average power tariff and retail tariffs in real terms that have declined since 1995. It is true tariffs of utility services like any other services need to be revised or readjusted from time to time. Consumers cannot take it for granted that, since the utility services are in the public sector, their tariffs will always be to their liking. Yet, reality is that practical steps on the part of the authorities concerned to reduce pilferages in utility services would have saved to some extent the consumers from frequent revision in tariff rates.

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Who Cares about Consumers?

Inexplicably, the process of the passing of the vital consumer protection law has been dragging on for years, writes M A Aziz


THE finance minister in his pre-budget consultations with different interest groups met representatives of such groups to get their views and recommendations for possible consideration and incorporation in the budget. The business community was seen specially active in these meetings and, like always, some of their suggestions could be met or favourably acted upon. Thus, the producers and sellers have had the opportunity to be heard by the government on the eve of the declaration of the national budget which was very important for all kinds of production and selling activities involving the producers, the financiers, the distributors and so on or the entire business chain. But the consumers or the preponderant number of people in the country who are to consume the products and services of businesses were not similarly consulted. This, on the one hand, reflects the weaknesses of whatever consumer organisations there are in the country and, on the other, government's callous attitude towards consumers' interest. But this is highly undesirable because proper economic management essentially calls for giving a boost to right type of not only production activities but equally, the consumption activities. The productive efficiency or allocative efficiency of resources in an economy is determined not only by how goods or services are produced but whether these can effectively satisfy the maximum demand of consumers at prices they can afford as well as meeting consumers' expectation in respect of quality or safety of the products and services. If consumers are persuaded by lack of regulation and information or misinformation to consume more demerit goods that provide no social benefits or negligible such benefits but create high costs to society from their consumption, then hardly the goals of positive consumption are attained. Consumption should be more and more in areas that generate much greater social benefits than costs so that the economy can grow in the right direction or the right economic growth can be sustained. Powerful consumers' groups in many countries act as a go between the producers and the government and contribute to government's policy formulation so that consumers' interests as well as the best interests of the national economy are promoted. The absence of such groups in this country or their presence in rather feeble form has meant inadequate representation of consumers' interest in government. But that does not absolve the government of its responsibility to act on its own and doing its best to safeguard the interest of consumers because this is not only desirable from the perspective of consumers but also very necessary for the economy's efficient functioning to ensure best utilisation of resources or maximising their value. Recently, it was reported that the laboratory testing of the products of some well known producers showed that the quality of these products did not quite match the claims on their labels. This brings to mind the necessity of adequate consumer protection laws to deal with the situation. Laws here are in existence to uphold consumers' interests but the same are weak in their provisions and bite and, therefore, the need for a comprehensive and tougher consumer protection law was felt long ago. The irony is that such a law was also drafted probably years ago and several times it was made known that it would be introduced in parliament and approved. But even the introduction of it in parliament is pending for unknown reasons. Probably the producers' lobby is active to withhold the passing of the law which they fear would create compulsions on them to take much greater care as regards the quality, price and safety of their products. If this is the case, then the existing consumer organisations need to come together for launching a strong enough campaign for the passing of this vital legislation. The Bangladesh Standards and Testing Institution (BSTI) has recently identified thirty-five companies for marketing substandard or spurious goods The companies found guilty of marketing such goods range from cement producers to producers of foodstuffs and toiletries. The companies identified by BSTI include some well known ones and also the not so well known companies. Both categories of companies that market such products are defrauding consumers and hazarding their health. But the information that even well known companies - which appeal to huge number of consumers because of their reputation - are also practicing objectionable marketing, should cause very serious public concern. It is not known what BSTI has done following its identification of the companies. Reportedly, its helmsmen have confessed to the press that it is not empowered to take steps against the companies. There are gaps in the laws and the same should be bridged to empower BSTI to take steps against the offending companies. If this is so, then the people would like to know when such laws will be framed to deliver them from the deceit and hazards imposed on them. As it is, a comprehensive consumer protection law has been probably drafted. It was supposed to be submitted in the form of a bill long ago to approved and made into law. What is holding back its submission to the parliament is a mystery. Could it be that vested groups of the producers are exercising their influences to stop the passing of this vital piece of legislation ? If this is the case, then the consumers would demand that the highest authorities in the government should look immediately into the matter and take immediate action for the proposed law to be submitted and passed in the next session of parliament. BSTI's recent activities demonstrated that it is not an ineffectual organisation . If it wants, it can spring to action and conduct effective monitoring of the markets to detect illegal and hazardous market behaviour of the producers or sellers. BSTI authorities often complain about their lack of equipment and personnel to do their job efficiently. But its recent activities showed up that these limitations are insignificant. What it needs is motivation from its higher level and a push from the ministry concerned to engage in its tasks on a regular basis. There has been frequent allegations made against it for its deliberate under-performance due to a section of its corrupt personnel. This allegation will have to be investigated and every effort made to make BSTI a properly functioning organisation in the public interest.

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TECHNOLOGY TODAY

Nanotechnology and Destroyer Drugs

Jim Kelsey


TWO United Kingdom companies have formed an alliance to develop a production facility to exploit the potential of nanotechnology. This involves the manipulation of atoms and molecules to achieve extreme miniaturisation of products and materials - for instance, computers will shrink to the size of a wristwatch. The alliance brings together QinetiQ, the UK's largest independent science and technology company, and the BOC industrial group which is one of the world's leading gases companies. QinetiQ formed a nanotechnology subsidiary at the beginning of 2002 and its first nanomaterials production plant will be commissioned near London. BOC will supply the pure argon and other industrial gases that are critical to the production process together with a compressed dry air supply. The managing director of QinetiQ Nanomaterials, Paul Relp, said: "The capabilities of this technology have been proven and hold significant promise for the future. This alliance with BOC will help QinetiQ Nanomaterials to achieve its aims of bringing advanced nanomaterials in significant quantities to the market place, and to develop new applications based on those materials." BOC's combustion and development group manager Ian Spiller added: "BOC and QinetiQ Nanomaterials will be looking for opportunities to extend the alliance in future to create a world class and establish nanomaterials as a global reality." An alliance spokesman said nanotechnology, which works at the nanometre scale of one billionth of a metre or 1/80,000th of the diameter of a human hair, is regarded by many as one of today's highest growth markets. He explained: "It has recently been estimated that the total world market for nanoparticulate materials was 490 million US dollars in 2000 and is expected to be 900 million dollars in 2005, an annual growth of 13 per cent. "The number of commercial applications for nanotechnology is vast but several of the key application areas that are already or will be implemented within the next five years include drug delivery systems, anticorrosion coatings, cosmetics and ultraviolet protection gels, tailoring the viscosity and thermal expansion properties of lubricants, and composite materials that are lighter, stronger, thinner or incorporate other particular requirements." A UK advisory group of nanotechnology applications which has just presented its report says nanotechnology is destined to be as important for the economy as information technology and biotechnology. Its spokesman said: "Nanotechnology has the potential to provide more sensitive medical instruments, bringing faster and more accurate diagnostic techniques. It also provides new ways of making things, with greater functionality, less raw material and less energy. Computers will shrink to the size of a wristwatch, transforming their use in communications, manufacturing, healthcare and the way we manage major systems like traffic or industrial processes." In the light of this, the UK government plans to increase its investment in nanotechnology research from 30 million pounds sterling a year to 50 million pounds. Another report says that a new breed of "destroyer drug" which only targets diseased cancer cells is in the first stages of development by the Oxfordshire based biotechnology company Avidex. The body's natural antibodies and T cells can spot different types of abnormal proteins called antigens. Monoclonal antibodies can seek out and destroy diseased cells but are not 100 per cent efficient. They can only target the antigens on a cancer cell's surface - 10 to 15 per cent of the total number. The new class of drugs called monoclonal T cell receptors (mTCRs) can hunt down the antigens inside cancer cells, thereby enabling them to attack and destroy them all. T cells in the body use the receptors to check protein fragments called peptides that appear on the surface of all cells. They are the remains of proteins from within the cell. T cells can tell if the protein the peptides come from should be there. If not, the cell is destroyed. Avidex and Sunol Molecular in Florida, United States, are developing the new breed of destroyer drugs that has been heralded as the biggest breakthrough in cancer therapy in recent years. The companies have created artificial T cell receptors that can exist independently from their hosts. Starting with human T cells, Avidex researchers extract the genes that manufacture the receptor. They then shuttle the genes into E.coli bacteria that produces identical copies of the receptor protein. There is no difference between them and those on T cells. Avidex believes that the new drugs could be used to attack particular cancer cells by screening patients' T-cells. By identifying the ones already targeted by diseased cells, they know the right receptor to clone. Another approach is to alter receptor genes until mTCRs that attach to particular target cells are produced. Both the UK and US companies have already discovered mTCRs that attach to cancer cells. The UK researchers have already begun animal tests but predict that it will be two years before the new drugs could be tested on humans.

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Iraq Tells US to Drop War Threats

Iraq has urged the United States to abandon its hostile policy and the United Nations to continue negotiations with Baghdad to open up to new disarmament inspections


"THE United States must review its hostile policy towards Iraq and deal with it taking into account its regional, Arab and international importance," the ruling Baath Party's Ath-Thawra newspaper said. Washington must stop "putting pressure on the world body to prevent it from answering the legitimate concerns of Iraq and normalising relations." Meanwhile, amid growing signs Washington is planning an attack, a prominent Iraqi Kurdish leader said he has offered Washington the use of military bases controlled by his group for a possible US attack on the regime of Iraqi leader Saddam Hussein. Jalal Talabani, head of the Patriotic Union of Kurdistan, told CNN the US response was positive to his offer of bases in exchange for protection from possible retaliation with chemical or biological weapons. Talabani - one of several Iraqi opposition leaders who met over the weekend with US officials - said he has assured Washington the US troops would be welcomed. "The American army will be very warmly welcomed in Iraqi Kurdistan, contrary to the rumors," Talabani told reporters. "It will be welcomed and believe me the United States is very popular now in Iraqi Kurdistan." Most of northern Iraq has been outside Baghdad's control since a Kurdish uprising following the 1991 Gulf War. In Washington, the US defence officials said the US Navy is contracting two commercial ships to move military hardware, including Bradley fighting vehicles and helicopters, to Jordan and an undisclosed Red Sea port. However, a spokesman for the US Central Command said the shipments were part of a broader transfer of military equipment from the European theater to other parts of the globe. "We consider this just a routine shipment," said Commander Frank Merriman, a spokesman for the US Central Command. Baghdad's call for an end to US hostility came after Iraqi Foreign Minister Naji Sabri revealed Iraq was still working on a response to UN demands for unconditional inspections, which came after Baghdad invited the chief UN arms inspector, Hans Blix, for talks on the possible resumption of monitoring. But US Defence Secretary Donald Rumsfeld said it would be difficult for international arms inspectors to expose Iraq's hidden weapons programmes even if they were let back in the country, as in the past the biggest breaks have come from defectors. Noting that even Saddam's own son-in-law was executed for disclosures that led UN inspectors to make their biggest discoveries about Iraq's chemical and biological weapons programme, Rumsfeld said "an inspection regime would have to be so intrusive, it would have to be any time, any place. "So if you can't get access to people to get information, and access on a basis that they feel safe and that their families feel safe, it would seem to me it would be very difficult." UN Secretary General Kofi Annan has asked Iraq to confirm its agreement with the Security Council's terms on disarmament and weapons inspections before Blix accepted the invitation to Baghdad, emphasising that Iraq must comply with every point of Resolution 1284, the last major overhaul of the council's Iraq policy, adopted in 1999. Baghdad had Monday undermined international hopes for renewed UN arms monitoring when Information Minister Mohammad Said al- Sahhaf said weapons inspectors had finished their work in Iraq. However, diplomats said Sahhaf appeared to be re-stating Iraq's long-held view and was not totally ruling out a return of inspectors. "Iraq has expressed more than once its readiness to agree to a return of weapons inspectors in exchange for the respect by the United Nations Security Council of its commitments to Iraq," a Western diplomat told the news agency privately. "Iraqis believe and are still totally convinced that they can reach a just settlement to all their problems with the UN on condition that the United States does not interfere in this dialogue." Washington has repeatedly accused Iraq of harbouring terrorists and developing biological and chemical weapons since disarmament inspectors fled on the eve of sustained US air strikes in December 1998. US President George W Bush has called for a change of regime in Iraq "by any means necessary," but also has promised to consult allies and the US Congress before taking any action. However, most members of the US-led international coalition in Afghanistan, including European allies and especially those in the Middle East, have voiced serious reservations about US calls to expand the war against terrorism to Iraq. - AFP

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A Vow against Militancy

Pakistan's President Pervez Musharraf vowed Wednesday to crush Islamic militancy blamed for a wave of violence in recent months


HE said a series of arrests following the attacks on a Protestant missionary school for foreign children near Islamabad and a Presbyterian hospital showed that intelligence and security forces were starting to win the fight against extremism. "All the perpetrators of the two attacks have either been killed or all of them have been arrested," the military ruler said in his address to the nation on Independence Day. Police say three men who shot dead six Pakistanis at the Murree school blew themselves up when challenged by police. One of three men who lobbed grenades into a crowd of nurses leaving a hospital chapel in Taxila died, as did four nurses. Police said Tuesday they arrested 16 suspected militants in connection with the Taxila attack, all belonging to two outlawed Islamic militant groups. "This is commendable work done by security and intelligence agencies and also by the judiciary in tandem with each other," said Musharraf, who spoke in English. "It is time that instead of criticising these agencies, as we always do, we appreciate their efforts." Musharraf has banned at least seven Islamic militant groups, but that has not stopped violence in recent months which claimed dozens of lives, including those of 11 French engineers and the wife and daughter of a US diplomat. Radical groups are angry at Musharraf's decision to support the US-led war on terror in neighbouring Afghanistan and at the crackdown on their activities. Several are linked to the separatist campaign in disputed Kashmir, the heart of a dangerous stand-off between nuclear-armed neighbours India and Pakistan. Pakistan, under pressure from the West, has sought to root out groups active within Pakistan and block infiltration across a military line into Indian- controlled Kashmir, but it still lends political and moral support to the separatist movement. Musharraf condemned last week's attacks, which raised fears of a new wave of militancy aimed at Christians and Westerners. "In the name of Islam, these misled criminals and their terrorist patrons and tutors even have the audacity to think their actions are the route to Jannat (heaven)," Musharraf said. "Who is the loser? Nobody but Pakistan, your country, and the poor of Pakistan whose sustenance depends on jobs through investment which shies away." Foreign companies have scaled-back their activities in Pakistan since September 11, as have diplomatic missions. Musharraf said that while there were no "quick-fix solutions", better equipment, training and manpower for the police and intelligence services were already yielding results. He called on clerics and political leaders to help curb militancy, which grew out of religious schools and training camps in Pakistan and Afghanistan during the Soviet occupation of Afghanistan in the 1980s. - Reuters

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For Cordial Relations


AWAMI League acting President Abdus Samad Azad in a recent private TV channel news coverage made the disclosure that during the last UNGA summit, Pakistan's President Pervez Musharraf had cancelled a scheduled meeting with the former Bangladeshi Prime Minister just five minutes before the time, which was against diplomatic norms and courtesy. According to him, Pakistanis always say that Bangladeshis are our brothers, but sometimes they do not extend brotherly treatment to us. Of course, in my opinion, the opposition AL could meet the visiting Pakistan President at least to show that Bangladeshis maintain hearty feelings and respect for all the Muslim brothers across the world including Pakistan. After all, President Musharraf was our guest. Meanwhile the visiting Pakistani President Pervez Musharraf has performed a moral as well as religious duty by saying 'sorry' for the '71 tragedy. While appreciating the stand of the Pak President, I would sincerely expect Pakistan to discharge other obligations very soon towards Bangladesh. M Zahidul Haque Associate Professor Sher-e-Bangla Agricultural University. Dhaka

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Reducing Extravagance


THE financial and economic hardship of our people continue unabated. There is always pricehike of goods and commodities. Devaluation of our currency and the sufferings of the people know no bounds. Why don't we cut our coat according to our cloth? Why don't we curb corruption, terrorism and wastage of public money? We are fed up with the pompous speeches and attractive promises of our different finance ministers from time to time. Our national budget is never people's oriented. Why is there rise in prices of soyabean oil, sugar, milk powder, cement? Why we are always having higher cost of many essential goods and commodities, rise in electricity charges, WASA, gas, travelling cost, higher rates of tariff of different goods and services offered by various public sector corporations? We strongly make a demand on the government not to impose new taxes, VAT, not to devalue our currency for the next five years. We also want a total ban on the import of luxury items. Undoubtedly, BNP and Awami League are the two most important political parties in our country. But unfortunately neither of the two parties is competent enough to look after and solve the law and order situation and socio economic development problems single handedly. We had many forms of government in our country - presidential, parliamentary, military government and neutral caretaker government, etc. But during the last 31 years we have miserably failed to mitigate the sufferings of our people. Let us forget our past differences and bitterness. Let us think and concentrate on the present and future welfare and well- being of our millions and millions of people. Let all our political leaders have a big heart and a wide vision and stop vilification and criticism against each other and do something good and constructive for the peace, happiness and welfare of the people. Where there is a will there is a way. A citizen Dhaka

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