De/Cypher Data Dive 📈
For the third year in a row, the biggest industry for startups in 2024 is Software & Data. According to StartupBlink estimations, this industry accounts for 33.7% of the world’s startups.
The Global Startup Ecosystem Index Report 2024 identifies significant trends and shifts in Asian startup landscapes. The report highlights Singapore’s rise to the top of Asia’s startup rankings, surpassing China. Singapore City jumped four spots to 16th in the world and surpassed Shenzhen as the sixth best in Asia-Pacific. This surge reflects Singapore’s strategic positioning and capitalizes on Hong Kong’s declining ecosystem.
South Asia also demonstrated strong momentum. Pakistan climbed five places to 71st, Sri Lanka climbed seven places to 76th, and Bangladesh advanced to 83rd, maintaining its fourth place in South Asia, thanks to significant improvements in Dhaka, which climbed 71 places to 140th worldwide. Dhaka is also notable for its position in the Agtech industry, which ranks seventh in South Asia. The IDEA Project and new high-tech parks are examples of government initiatives that benefit Bangladesh’s ecosystem.
Pakistan has made remarkable progress, with Karachi jumping 55 spots to enter the top 200 globally. Lahore and Islamabad both saw increases, with Lahore ranking 217th and Islamabad rising 247 places since its Index entry. The Pakistani government supports startups through programs such as the Ignite National Technology Fund and Special Technology Zones. However, post-Series A funding remains challenging. Digital infrastructure enhancements include a focus on 5G spectrum and regulatory frameworks for digital banking.
India continued to rise, claiming third place in the region, surpassing South Korea and Japan. Indian cities such as Surat, Coimbatore, and Indore have made significant gains in global rankings. China continues to dominate the automotive industry, with Shanghai, Beijing, and Shenzhen leading the top ten.
Despite government efforts, China faces challenges in state-entrepreneur relations, which have an impact on its startup ecosystem. The ANT Group IPO failure and the Didi crackdown highlight the ongoing tension, indicating a cautious approach to entrepreneurial freedom in China.
Overall, Asia’s startup ecosystems are dynamic, with countries and cities throughout the region experiencing significant growth and adaptation as a result of strategic initiatives and infrastructure development.
Asia View
Food Insecurity and Climate Change in South Asia
Written By Priyanka Garodia, Geopolitical Research Analyst – South Asia
The adverse impacts of climate change have been ruthless in its manifestation in South Asia. The reported number of extreme weather events in the region has seen a significant spike. The 2023 Global Climate Highlights report 2023 to be the hottest year with temperatures close to 1.5 degrees above pre-industrial levels. These changes in weather patterns are not confined to the environment alone but also have notable consequences for water security, food security, migration and other areas of life. All of this has a collective impact on the quality of life of people and raises worrying questions for the future of the planet.
South Asia has been experiencing extended periods of heatwaves, cold spells and shifting seasons that have been disastrous for agriculture in the region. The World Weather Attribution has reported that two consecutive years of heatwaves in the region, including the 2022 India and Pakistan heatwave and the 2023 humid heatwave that hit India, Bangladesh, Lao PDR and Thailand, have wrecked havoc on the agricultural production systems in place. The altered state of agricultural production has caused an alarming rise in food insecurity in countries like Pakistan and Afghanistan, among others.
Crop production, the nutritional value of agricultural produce, and the destruction of crops due to unpredictable rain patterns are some of the major problems faced by farmers in the region. The high levels of heat, followed by unexpected rain, have resulted in fungal pathogens, leaf related diseases and other diseases that threaten crop production in countries. All major crops, including cotton, rice, maize, sugarcane, and wheat, crops that are commonly grown in all South Asian countries, are extremely vulnerable to the climate crisis, reports the Food and Agricultural Organisation (FAO) of the United Nations. A region that already has some of the highest levels of undernourishment – 15.6 percent (313.6 million), while more than 809 million are either moderately or severely food insecure in that subregion, has seen the worsening of the situation in contemporary times. The challenge of providing a nutritious meal for their family is a widespread issue, as evidenced by the fact that in the fiscal year 2021–22, 74.1% of Indians, 82.8% of Pakistanis, 76.4% of Nepalis, 66.1% of Bangladeshis, and 55.5% of Sri Lankans faced significant obstacles. Women were more insecure at 42.7% when compared to men at 37.3%.
Climate change is a reality that is exacerbated by the conditions of poverty, malnourishment and rising populations in the region. One of the best methods of reducing food insecurity is for nations to begin investing in climate-resilient agriculture (CRA). CRA adopts the concepts of adaptation and resilience in transforming agricultural practices to better suit the changing climate. The implementation of this form of agriculture will require that governments make interventions at the policy level, provide the necessary financial and technical skills to those involved and create a robust information management system that allows farmers to be well informed about the impending climate crisis and how to better manage their yield.
Af-Pak De/Cypher
24 June, 2024
Economy
IMF welcomes govt’s tough measures
Irshad Ansari writes in The Express Tribune that the International Monetary Fund (IMF) has welcomed the federal government’s strict policy measures proposed in the upcoming federal budget during virtual talks with the government authorities with regard to the next bailout package. According to official sources, there has been progress in the talks between Pakistan and the IMF. The Fund, they said, has welcomed the tough economic decisions in Pakistan’s federal budget and praised the positive role of political parties.
Senate panel terms budget against national interests
Mubarak Zeb Khan writes in Dawn that the Senate Standing Committee on Finance has expressed dissatisfaction with tax measures announced in the budget 2024-25, lamenting that they appeared more aligned with the International Monetary Fund (IMF) priorities than national interests. The committee, led by Chairman Senator Saleem Mandiwalla, concluded its discussions on the Finance Bill 2024 on Saturday. The committee is set to deliver its recommendations on Monday and promptly send them to the Senate on the same day.
Internal Politics 🏛️
Pakistan approves new operation to root out terrorism
Sarah Zaman writes in Voice of America that Pakistan’s top civilian and military leadership has decided to launch a new multi-faceted nationwide counterterrorism campaign amid the country’s deteriorating security situation. According to a statement released by the prime minister’s office, operation “Azm-e-Istehkam,” or Resolve for Stability, was approved at a high-level meeting presided over by Prime Minister Shehbaz Sharif. The goal of the operation is to combat the menaces of extremism and terrorism in a comprehensive and decisive manner.
Breakthrough as PML-N accepts most of PPP’s Punjab-centric demands
Zulqernain Tahir writes in Dawn that the PML-N has accepted most of PPP’s demands. The PPP, which is unhappy with the PML-N government on several issues, said on Sunday that the latter has accepted most of its demands, including bringing an end to political victimisation of its workers and holding local bodies’ elections in Punjab at an early date. It was also agreed that PPP would be given due share in development schemes in the province. Senate Chairman and PPP leader Yousuf Raza Gilani had earlier declared that the PPP would consider joining the PML-N government provided it was given a proper share and space in Punjab by the provincial government.
Punjab, Sindh brace for above normal rains
The Express Tribune reports that different parts of Pakistan are expected to receive monsoon rains from the first week of July, showers that may cause flooding of rivers and nullah. According to the monsoon weather projection, issued by the National Disaster Management Authority (NDMA) on June 22, different parts of Balochistan are expected to receive approximately 15-35 mm of rain in the first week of July; 25-50 mm rain in the second week; 15-25 mm in the third week and 25-50 mm of rainfall in the fourth week. Different parts of the Khyber Pakhtunkhwa (K-P), it said, were likely to receive approximately 15-50 mm of rain in the first week of July.
Security
Pakistan police register a case against a mob that killed a man suspected of desecrating the Quran
Ground News reports that the police in north-western Pakistan registered a case against hundreds for attacking a police station and killing a man suspected of desecrating the Quran. The suspect, identified as Mohammad Ismail, was from Punjab and was killed by a mob after being questioned by police in Madyan. Ismail was accused of burning Quran pages, leading to the mob attacking the police station, killing him, and burning his body.
Pakistan And The World🌐
Islamabad to re-engage with Kabul
Kamran Yousaf writes in The Express Tribune that Pakistan has mounted fresh negotiations with Afghanistan. Pakistan will mount fresh diplomatic efforts to persuade the interim Afghan Taliban government to dismantle terrorist sanctuaries as part of the new plan approved by the country’s civil and military leadership, people familiar with development revealed on Sunday. The Central Apex Committee of the National Action Plan (NAP) on Saturday gave a go ahead to launch a new military campaign codenamed operation Azm-e-Istehkam to eradicate terrorism and extremism.
No room for lapses in foreigners’ security, says interior minister
Iftikhar A. Khan writes in Dawn that the Internal Minister of Pakistan, Mohsin Naqvi has said that there is no room for negligence in providing security to foreigners in Pakistan. He made these remarks on Saturday while chairing a meeting at the Ministry of Interior to review security measures for foreigners, especially Chinese citizens. The meeting also evaluated the overall security situation in the country. Mr Naqvi instructed the officials to implement standard operating procedures regarding security as per the devised plans. He said the plan should be regularly reviewed at all levels, and relevant departments should improve coordination to “thwart nefarious intentions of anti-state elements”.
Afghanistan Update
NRF Attacked Kabul Airport, 28 Other Targets Last Quarter, Confirms UN Secretary General
Afghanistan International reports that the UN Secretary-General António Guterres announced that the National Resistance Front (NRF) has carried out a total of 29 attacks on Taliban forces in the past three months. Among these, 20 attacks were in Kabul, six in Takhar, two in Baghlan, and one in Parwan. According to the report, the NRF managed to attack the military facilities at Kabul Airport during this period. The UN revealed that “three rockets were fired at a helicopter upon entry, but there were no casualties or damage”. Guterres also confirmed that the Afghanistan Freedom Front launched 14 attacks on the Taliban in Kabul over the past three months.
Taliban accuse UN rights expert on Afghanistan of undermining Doha meeting
Ayaz Gul writes in Voice of America that the Taliban has criticized the latest United Nations report on alleged human rights violations as an attempt to “tarnish perceptions” in the lead-up to this month’s international meeting to discuss the crisis-ridden country. Zabihullah Mujahid, the chief Taliban spokesman, emphasized Wednesday the need for “constructive and positive engagement” between their government and the international community.
Kabul Urges UN to Hand Over Seat to Interim Govt
TOLO News reports that The Islamic Emirate said that by assigning Afghanistan’s seat to the representative of the interim government, issues such as imposed sanctions, frozen funds, and negative perceptions against the interim government will be resolved. Zabihullah Mujahid, the spokesperson for the Islamic Emirate, said that the allocation of Afghanistan’s seat at the United Nations is the right of the interim government and should be given to its representative. Meanwhile, some political analysts say that for the Islamic Emirate’s request to be accepted, they also need to meet some of the world’s legitimate conditions.
Bangladesh De/Cypher
24 June, 2024
Economy
WB okays $900m to improve economic, urban resilience in Bangladesh
Daily Sun reports that the World Bank has approved a $900 million loan to Bangladesh for enhancing financial resilience and urban projects. The loan includes $500 million to strengthen the financial sector and $400 million for climate-resilient urban development. These initiatives aim to bolster Bangladesh’s growth, facilitate its transition from LDC status, and manage urbanization.
Another renewable boost: Sirajganj 68MW solar plant set for June launch
Joynal Abedin Shishir writes in The Business Standard that a 68MW solar power plant in Sirajganj, Bangladesh, is set to connect to the national grid by the end of June. The project, a collaboration between China and Bangladesh, is nearly complete with 150,000 solar panels being installed. The $87.7 million project aims to boost renewable energy capacity and supports Bangladesh’s target to generate 40% of its electricity from renewable sources by 2041.
Bangladesh cancels 4 LNG spot cargo deliveries after storm damages terminal
bdnews24.com reports that Bangladesh has canceled four spot LNG cargo deliveries after Cyclone Remal damaged one of the country’s two import terminals. The Floating Storage Regasification Unit (FSRU) was significantly damaged and sent to Singapore for repairs, expected to return by mid-July. The cancellations include two cargoes priced below $10 per unit and two above $10, aligning with current spot market prices around $13. The disruption has severely impacted CNG refueling stations across the country. The government is temporarily relying on long-term deals to maintain supply.
IFC to lend EPIC Group $100m for sustainable textile manufacturing in Bangladesh, India
The Business Standard reports that the IFC is lending EPIC Group $100 million for sustainable textile manufacturing in Bangladesh and India. The funding includes a $70 million sustainability-linked loan and a $30 million green loan. This will support EPIC Group’s expansion, upgrade facilities to reduce environmental impact, and create over 27,500 jobs. The partnership aims for significant reductions in GHG emissions and freshwater use, promoting sustainability in the textile sector.
Dhaka costlier to foreigners than New Delhi, Bengaluru, Islamabad
Prothom Alo reports that Dhaka has become significantly more expensive for foreigners, rising 14 spots to 140th on Mercer’s 2024 cost of living ranking. Dhaka surpasses New Delhi (165th), Bengaluru (195th), and Islamabad (224th), but is still less costly than Mumbai (136th). The most expensive cities include Hong Kong, Singapore, and four Swiss cities. Rising housing costs and volatile inflation are challenging global talent mobility and increasing operational costs for multinational organizations.
Internal Politics 🏛️
Section of bureaucrats are becoming corrupt, Abdul Momen tells parliament
New Age reports that MP Abdul Momen that a segment of bureaucrats is becoming corrupt, tarnishing the reputation of the entire civil service. He advocated for mandatory disclosure of assets by civil servants to ensure transparency and accountability. Momen expressed concern over rampant corruption affecting projects and public trust, criticizing provisions in the budget allowing black money to be whitened with a 15% tax.
Bangladesh will retaliate if fired on: home minister
The Daily Star reports that Home Minister Asaduzzaman Khan said Bangladesh will retaliate if Myanmar’s military or the Arakan Army continues firing at Bangladeshi boats on the Naf River and its estuary. He emphasized that both sides in Rakhine state have been warned about these incidents, highlighting recent tensions surrounding Saint Martin’s Island.
North-East Bangladesh flash floods impacts over 772,000 children
The Business Post reports that over 772,000 children are affected by flash floods in north-eastern Bangladesh, according to UNICEF Representative Sheldon Yett. The floods have impacted over 2 million people, with rivers flowing dangerously high. UNICEF is prioritizing child safety and well-being, providing safe water to over 100,000 people for five days and distributing emergency supplies. Over 810 schools and nearly 140 community clinics are affected, with almost 500 schools used as shelters.
Dengue cases likely to increase in July
The Bangladesh Post reports that although the initial dengue cases this season are slightly lower than last year, the death rate has doubled. With favorable conditions for Aedes breeding due to current rainfall and temperature, experts predict a surge in dengue outbreaks by late July. The Health Emergency Operation Center notes 41 deaths among 3,315 hospital admissions this year, with Dhaka particularly affected due to repeated infections and critical cases being centralized there.
Security
US slaps travel ban on ex-Army chief Aziz Ahmed
Daily Sun reports that the United States has imposed a travel ban on Bangladesh’s former army chief, Aziz Ahmed, citing allegations of significant corruption. The US Department of State accused him of accepting bribes and manipulating military contracts for personal gain, actions detrimental to Bangladesh’s democratic institutions. Aziz Ahmed denied the allegations, claiming injustice and challenging the US to provide evidence. Bangladesh’s Foreign Minister clarified that the ban was enacted under specific US legislation targeting corruption, not standard visa policy.
US, UK, EU voice worry over conflict in Rakhine State
The Daily Star reports that 15 countries, including the US, UK, and EU, expressed concern over the escalating conflict in Myanmar’s Rakhine State. They emphasized protecting civilians amidst the intense fighting between the Myanmar military and the Arakan Army, which has displaced hundreds of thousands, including Rohingya. The countries acknowledged Bangladesh’s role in hosting over a million Rohingya refugees and pledged continued support for essential services and advocacy for the crisis.
Rohingya may have entered Bangladesh in recent Myanmar clashes, refugee official says
The Business Standard reports that escalating violence in Myanmar’s Rakhine State may have caused some Rohingya Muslims to cross into Bangladesh, despite Dhaka’s stance against accepting more refugees. Mohammed Mizanur Rahman, a Bangladesh official for refugee relief, indicated that some Rohingya have entered unofficially and taken refuge in Cox’s Bazar. The violence follows the breakdown of a ceasefire between the Arakan Army and Myanmar’s junta. The Arakan Army, denying targeting Rohingya, has captured several towns and warned Maungdaw residents to evacuate ahead of an offensive.
Bangladesh And The World🌐
Chinese minister Liu Jianchao in Dhaka
The Financial Express reports that Minister Liu Jianchao of the International Department of the CPC Central Committee is visiting Bangladesh for discussions on mutual interests. He arrived in Dhaka for a four-day official visit and is scheduled to meet President Mohammed Shahabuddin, Prime Minister Sheikh Hasina, and Foreign Minister Hasan Mahmud. The visit is part of regular high-level exchanges, with anticipated discussions including Prime Minister Hasina’s upcoming visit to China in July to bolster bilateral relations and investment.
India’s MEA details outcomes of Hasina-Modi summit
The Daily Star reports that during the Hasina-Modi summit, Bangladesh and India agreed to conserve the Teesta River and develop an interim water-sharing framework. They also discussed renewing the Ganges Water Sharing Treaty and enhancing sub-regional connectivity, including transit facilities for Bangladeshi goods to Nepal and Bhutan. Both nations will expand power collaboration, develop intra-regional electricity trade, and expedite construction of the Katihar-Parbatipur-Bornagar grid interconnection. They committed to enhancing defense cooperation, promoting economic and trade linkages, and collaborating on frontier technologies like space and civil nuclear projects.
Climate Adaptation: Loans to raise debt distress
Porimol Palma writes in The Daily Star that Prof. Patrick Verkooijen, CEO of the Global Center on Adaptation (GCA), criticized the climate finance system where countries like Bangladesh are forced to take loans for climate adaptation despite not being responsible for the crisis. He emphasized the injustice of increasing debt distress in countries of the Global South, highlighting Bangladesh’s significant annual investment of $1.2 billion in adaptation against a need of $8.5 billion.
China-Bangladesh Defense Synergy: Military Drills and Geopolitical Dynamics
Written By De/Cypher Team
In May, China and Bangladesh held their first joint military exercises, dubbed ‘China-Bangladesh Golden Friendship 2024‘, marking a significant step forward in their defense cooperation. These exercises centered on UN peacekeeping and counter-terrorism operations, emphasizing China’s growing military presence in South Asia. This development coincided with China’s significant economic investments in Bangladesh, which included critical infrastructure projects such as the Cox’s Bazaar submarine base.
The exercises sparked widespread interest in neighboring India, which saw them through the lens of regional geopolitics. During Prime Minister Hasina’s State Visit to India on Saturday, the two countries agreed to strengthen defense cooperation, promote economic and trade ties, and collaborate on frontier technologies such as space and civil nuclear projects.
India’s move was part of a larger strategy to position itself as a counterweight to China’s growing regional influence. Prime Minister Narendra Modi welcomed Bangladesh’s participation in India’s Indo-Pacific Oceans Initiative, emphasizing a neighborhood-first approach in the face of increasing competition for regional dominance. Despite Bangladesh’s close economic ties with China, its relationship with India remains critical, characterized by significant trade and shared concerns about security and regional stability.
Headlines Quick Recap
South Korea Fires Warning Shots After Third Border Breach by North’s Troops
South Korean soldiers fired warning shots after North Korean troops briefly crossed the border for the third time this month, soon after Russian President Vladimir Putin’s visit to North Korea. Read more: Bloomberg
Israeli Military Says Hamas Can’t Be Destroyed, Escalating Feud With Netanyahu
Israel’s military is airing doubts over Benjamin Netanyahu’s long-stated goal of destroying Hamas in Gaza, with Rear Admiral Daniel Hagari describing the idea in a television interview as “simply throwing sand in the eyes of the public.” Read more: WSJ
Biden Point-person on the Israeli-Palestinian Conflict Resigns Citing Family Reasons
‘Another huge loss for the Biden Admin’ said former Biden staffer, as Andrew Miller, a critic of Biden’s ‘Bear-Hug approach’ to Netanyahu, becomes the highest ranking official to quit. Read more: Hareetz
AI is already wreaking havoc on global power systems
The rise of AI is driving a surge in demand for larger data centers, severely straining global energy grids. By 2034, global energy consumption by data centers is expected to top 1,580 TWh, about as much as is used by all of India. Read more: Bloomberg
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