International Events August 2023
Asian Development Bank to provide 400 million US dollars in loans to Bangladesh
The Asian Development Bank (ADB) will provide 400 million US dollars in loans to Bangladesh for the construction of 102 kilometers long dual gauge railways between Chattogram and Cox’s Bazar to promote trade, investment and tourism. It aims to transport 2. 9 million passengers annually between Chattogram and Cox’s Bazar by 2024. ChattogramCox’s Bazar Railway is part of the Trans-Asia Railway (TAR) network, an initiative led by the United Nations, aiming to provide seamless rail links between Asia and Europe to better connect people and markets. The 128,000-kilometre-long rail network passes through 28 countries and was formalised through an Inter-governmental Agreement on TransAsian Railway network in 2009. The assistance forms the third part of USD 1. 5 billion ADB loans for the SASEC’s (South Asia Subregional Economic Cooperation) Chattogram-Cox’s Bazar Railway Project.
Asian Development Bank:
- Formation: 1966
- Headquarters: Mandaluyong, Philippines
- Membership: 68 countries
- President: Masatsugu Asakawa
ADB approves $50 mn loan for Nepal
The Manila-based Asian Development Bank (ADB) has approved a $50 million loan to help Nepal improve its domestic and international trade. The program will help implement the current Customs Reform and Modernization Plan by improving customs processes through introducing digital technologies, such as electronic payments of customs duties and fees and electronic submission of export documents.
Nepal:
- Capital: Kathmandu
- Currency: Nepalese Rupee
- Prime minister: Pushpa Kamal Dahal
- Capitals: Colombo, Sri Jayawardenepura Kotte
- Currency: Sri Lankan Rupee
- Prime Minister: Dinesh Gunawardena
- Official languages: Sinhala, Tamil
- President: Recep Tayyip Erdoğan
- Capital: Ankara
- Currency: Turkish lira
World Bank approves $700mn to help Sri Lanka implement foundational reforms
The World Bank has approved USD 700 million in financing as budgetary and welfare support for Sri Lanka. This is the biggest funding trance for the island nation since the International Monetary Fund (IMF) bailout package in March. The USD 500 million of the funds will be allocated for the ‘Sri Lanka Resilience, Stability & Economic Turnaround (RESET) Development Policy Operation’. Meanwhile, welfare support of USD 200 million will be earmarked for the ‘Social Protection Project’. Note: In March 2023, the IMF approved nearly USD 3 billion which Sri Lanka expects will bring additional funding of up to USD 4 billion from the World Bank, Asian Development Bank and other multilateral agencies.
Sri Lanka
Saudi Arabia buys Turkish drones during Erdogan’s visit
Saudi Arabia agreed to buy Turkish drones, one of several lucrative contracts President Tayyip Erdogan secured for Turkey’s struggling economy as Ankara reaps the benefits of his recent diplomatic push to repair ties with Gulf Arab powers. Investments and funding from the Gulf have helped relieve pressure on Turkey’s economy and its currency reserves since 2021, when Ankara launched a diplomatic effort to repair ties with Saudi Arabia and the United Arab Emirates.
Türkiye:
Egypt, Turkey upgrade diplomatic relations by announcing new ambassadors after a decade
Egypt and Turkey upgraded their diplomatic relations by announcing new ambassadors for the first time in a decade. The decision aims to re-establish normal relations between the two countries. Mr Amr Elhamamy will become Egypt’s ambassador in Ankara, while Turkey nominated Salih Mutlu Sen to become its ambassador in Cairo.
Israel parliament approves bill that limits Supreme Court power
Israel’s parliament gave preliminary approval to a bill that limits some Supreme Court power, part of a rebooted judicial overhaul by Prime Minister Benjamin Netanyahu. The new bill seeks a curb on the Supreme Court’s power to void decisions made by the government, ministers, and elected officials by ruling them unreasonably. It now returns to the committee for discussion and could be altered before being brought for the final votes.
Israel:
- Capital: Jerusalem
- Prime Minister: Benjamin Netanyahu
- Currency: New shekel
- President: Isaac Herzog
- Capital: Dhaka
- President: Mohammed Shahabuddin
- Prime Minister: Sheikh Hasina
- Currency: Taka
- Headquarters: Beijing, China
- Secretary-General: Zhang Ming
- Capital: Tehran
- President: Ebrahim Raisi
- Currency: Iranian rial
- Formation: 16 November 1945
- Headquarters: Paris, France
- Director-General: Audrey Azoulay
India and Bangladesh start bilateral trade in rupees
India and Bangladesh have started bilateral trade in rupees. India and Bangladesh will trade in Indian rupees alongside the usual transaction method in US dollar. Trade settlement through Indian rupee will only apply to export amount from Bangladesh while the rest of imports from India will be settled in US dollars. From Bangladesh side trade and transactions with India will be done by its Eastern Bank and Sonali Bank Ltd, while from Indian side operations will be done by State Bank of India and ICICI Bank. Bangladesh is India’s biggest trade partner in South Asia and India is the second largest trade partner of Bangladesh in Asia. Reserve Bank of India has allowed banks from 18 countries to trade in rupees including Germany, Russia, Singapore, Sri Lanka, the United Kingdom, Myanmar, Oman and others. Note: Bangladesh become 19th country to trade with India in rupees.
Bangladesh:
Iran becomes a new permanent member of SCO
Iran has become the new permanent member of the Shanghai Cooperation Organisation (SCO) at an India-hosted virtual summit of the grouping. With the addition of Iran as a new member, the total membership of the SCO reaches nine. The SCO was founded at a summit in Shanghai in 2001 by the presidents of Russia, China, the Kyrgyz Republic, Kazakhstan, Tajikistan, and Uzbekistan. India and Pakistan became permanent members of SCO in 2017.
SCO:
Iran:
Unesco approves US propos al to rejoin organisation
The Unesco’s 193 member states have approved a proposal submitted by the US to rejoin the organisation. During an Extraordinary Session of the General Conference, 132 member states voted in favour, while Russia, North Korea, Palestine, Belarus, China, Eritrea, Indonesia, Iran, Nicaragua, Syria voted against the return of the US to the organisation. In 2017, the administration of former President Donald Trump announced the country’s withdrawal from the Unesco, citing anti-Israel bias. The decision took effect a year later. The US and Israel had stopped financing the UN body after it voted to include Palestine as a member state in 2011. Note: The US had pulled out of the Unesco twice,in 1984 and 2017, causing a negative impact on the Paris-based UN body’s work.
United Nations Educational, Scientific and Cultural Organization (UNESCO):