How long will garments factories remain death traps?
August 10, 2010
Death rarely comes by appointment. It arrives without warning, as it did at Garib and Garib sweater factory at Bhogra under Gazipur district on February 25. 21 workers, 15 of them female, died and several others were injured. When such death occurs due to human negligence and callousness, one has to feel scared.
A&E arranges training for RMG people
April 27, 2010
Bangladesh should look into how it can develop the skills of workers, especially the production management and quality control segment, in Read more
Students find fashion and used clothes are a fine line
April 13, 2010
FIRST-YEAR fashion management students at Robert Gordon University proved that shabby is the new chic at the launch of their first exhibition last night.
A Mixed Outlook
March 25, 2010
When the global recession hit in September last year, there were dismal predictions for the Bangladesh economy. Exports would plummet and credit would dry up, feared experts. The readymade garments sector, Bangladesh’s biggest export earner, was expected to suffer most and drag the economy down with it. But as the financial markets crashed, jobs disappeared and growth took a nosedive in much of the world, it was clear Bangladesh had missed the script.
Although annual GDP growth dipped slightly compared to previous years, Bangladesh still managed to reach a healthy 5.9 percent in Financial Year 2009 (July 1, 2008 to June 30, 2009). Low level of integration with the world economy helped shield Bangladesh from the negative effects of the global downturn. Although consumers in the developed countries spent less, basic clothing items still sold well, and this helped the RMG sector weather the storm. Lower international food and oil prices, combined with a bumper rice crop, helped bring down inflation. The external current account recorded a large surplus of US$2.5 billion because of strong remittance inflows, double-digit export growth and a declining import bill.
Not only did widespread fears of a surge in unemployment and an increase in poverty and social disorder prove unfounded, by June 2009 Bangladesh was being mentioned in the same breath as a handful of other countries that had defied the recession. The country was not going great guns, but it had still done better than many other nations in coping with adversity.
Any celebrations, however, would be premature. Towards the final quarter of 2009, it was clear that the “recession-busting” Bangladeshi economy was experiencing a delayed downturn of its own. The second half of 2009 saw growth fading in exports and remittances. While total year-on-year exports grew by an average of 20 percent in the first part of Financial Year, 09, export performance dipped to a negative growth by December. Moreover, the overall export data masks the diverging performance of ready-made garment exports and the non-RMG exports — with the latter registering negative overall growth in FY09. Remittances also show a similar pattern, with growth falling from 30.9 percent in the first half of FY09 to 15.7 percent during the second half.
This tale of two halves highlights several areas of concern. According to Dr Zaid Bakht, Research Director at the Bangladesh Institute of Development Studies (BIDS), the investment climate is less than healthy, which does not augur well for sustained growth in 2010.
“The import of capital machineries and raw materials is very low,” says Dr Bakht. “This means investors are holding back from new investments. The government must move quickly to restore investor confidence or the economy will stumble.”
Experts believe concern about the volatile global economic and financial situation, and political uncertainty during the caretaker government’s tenure may have restrained export oriented industries from building capacity during FY09. But since the elections, other factors including policy issues and availability of gas and electricity are dampening the investment climate. Reduced import of capital goods and machineries may affect the ability of the export sectors to respond to a possible rise in external demand in the near future even as the global economic recovery gathers steam in 2010.
“Taking advantage of the global recovery that appears to be underway will be one of the challenges of 2010,” says Professor Mustafizur Rahman, Executive Director of Centre For Policy Dialogue (CPD). “But in order to do this, we need investments.”
The weak investment climate is reflected by surplus liquidity in the banks. According to Bangladesh Bank data, surplus funds stood at Tk. 33,995 crore at the end of September. Although this was down by about 800 crore since June, analysts suggest the decrease may be due to purchase of government bonds by the scheduled banks, rather than any surge in commercial lending.
“Borrowers are not taking loans, which means they are unsure about the viability of their investments,” says Dr Zaid Bakht. “Fear of a double-dip recession may be partly to blame. But the main reasons are internal. Having a good set of macro fundamentals would be key to restoring investor confidence in 2010. This would include achieving reasonable fiscal balances, realistic exchange rate, low interest rates, and social and political stability. There are major infrastructure issues, and the dismal situation in the power sector is probably the most critical.”
Hossain Khaled, managing director of Anwar Group and former president of Dhaka Chamber of Commerce and Industries (DCCI) argues that a sense of security must prevail if investment is to occur. “We have had instances of mobs burning down factories, and extortionists shooting at businessmen because they wouldn’t pay. It is the government’s job to provide security for entrepreneurs. But apart from physical security, we need guarantees that we will receive enough gas and electricity to run our factories.”
An improvement in power generation would probably top the New Year’s wish list of any businessman in Bangladesh. Power shortages are the most serious and immediate of the infrastructure constraints, with damaging impact on productivity and investment. Hossain Khaled believes it is a lack of initiative rather than a lack of resources that is holding back the power sector.
“We have gas and coal,” says Khaled. “We must take immediate steps to explore and utilise our resources in the best manner possible. There are also various options we can explore to overhaul or replace aging power stations. But delay in taking decisions is costing us.”
“The country has a shortage of 1300MW to 1500MW power,” explains Prof Mustafizur Rahman. “To ease the problem, the power plants that are near completion, including rental ones, must be brought on-stream at once. Tender process for future plants must be rapid and transparent.”
A broad swathe of economists and energy experts believe that Bangladesh’s long-term energy policy must rely on rapid and efficient extraction of domestic coal reserves. Five good quality coal deposits, with proven reserves of more than 2.5bn MT have been discovered in Bangladesh.
“National Coal Policy needs to be finalised as soon as possible,” says Prof Mustafiz. “There is a debate going on about the local environmental and social effects of mining, but we should have an open dialogue about this as soon as possible. Coal can be extracted in a responsible way by ensuring the local inhabitants are taken care of. This is vital for sustainable development of the country.”
Experts have also called for speeding up gas exploration in offshore blocks while maintaining transparency. “If there is a lack of transparency then there is bound to be opposition,” says Dr Bakht. “The government must also actively resolve maritime boundary disputes with India and Myanmar to facilitate exploration.”
Following a slew of dismal data, economists are growing increasingly concerned about the sustainability of GDP growth in the years ahead. According to a report by the World Bank, if the energy situation stagnates or deteriorates and global recovery falters then export growth cannot be sustained at FY09 levels and real investment growth could decline further. On this trajectory, GDP growth would be unlikely to reach even 5.5 per cent, let alone the 6+ growth that Bangladesh has seen through much of the decade.
Ironically, the economy is turning sluggish at a time when most of the developed countries are exiting recession. Coupled with strong demand in countries like China and India, this recovery could drive up prices of commodities in 2010, warn experts.
“One challenge for 2010 would be containing inflation, and ensuring food security,” says Prof Mustafizur Rahman. “The Aman crop has not been that good, and now we must look to the Boro. The government must be vigilant about the risk of spiralling prices.”
According to data from the Bangladesh Bureau of Statistics, inflation rose by 46% on a point-to-point basis and stood at about 6.71 percent in October. Rising food prices were to blame, say market watchers. The salary of government employees was raised recently, and this could also feed into the inflation scenario.
“It is vital for the government to stimulate job creation at this stage,” says Dr. Bakht. “For this the investment climate must be boosted, and the government must also implement the Annual Development Programme (ADP) quickly and transparently.”
One of the few consistently bright spots for the economy has been robust remittance inflow. But Bangladesh cannot take remittance for granted. Not only has the international trade of capital, goods and services slowed down during the recession, but so has the international movement of people.
“The number of people going abroad for work has almost halved,” says Prof Mustafiz, “and this is something the government must look at very carefully. There is no scope for complacency here.”
The CPD executive director believes the government must take a number of urgent steps in 2010 to handle the macroeconomic situation. “The economic stimulus package must be spent wisely, and make sure credit is available and affordable. Decisions must be taken quickly regarding the power sector, and in a transparent manner. The health of the RMG sector must be ensured, but we must also diversify our exports. Our exporters are facing challenges because some of our competitors have made exports cheaper by devaluing currency. Provided adequate steps are taken, there is room for cautious optimism going into 2010.”
“The government has spoken of some ambitious infrastructure projects,” asserts Hossain Khaled, “and these need to be implemented quickly to stimulate the economy — the Dhaka Chittagong highway, the Deep Sea Port, new EPZs. Let 2010 – 2020 be the decade of implementation as we move towards 50 years of our independence.”
The present government came to power on a platform of affordable food prices, and stable jobs. The honeymoon period is almost over and 2010 will be the time to start delivering. Addressing the weaknesses of the investment climate, complemented by appropriate policy reforms and good governance, should therefore be of top concern to enhance the economy’s productivity and long-term growth, and contribute to eventual poverty reduction. The road ahead contains challenges that will test the government’s resolve. Unfortunately, most of the heartache will be felt by Bangladesh’s poor as they continue the perpetual struggle to put two square meals on the table.
Episode one of the global recession may have been a phantom menace as far as Bangladesh is concerned. If there is an episode two, it may not be. The economy, for better or for worse, will take centre stage in 2010.
Sourch: http://www.thedailystar.net
BGMEA eats humble stimulus pie
February 9, 2010
After a spell of criticism from different quarters, BGMEA yesterday backtracked on its previous demand for Tk 3,000 crore from the government to pay salary and bonus to garment workers before Eid.
The apex trade body for garment makers and exporters also instructed the owners to pay salary and bonus to the workers from their own fund before the festival.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) came under fire for its president’s recent comment on payment of salary and bonus.
BGMEA President Abdus Salam Murshedy at a press conference on September 3 urged the government to give Tk 3,000 crore from the government’s stimulus package of Tk 5,000 crore to pay the RMG workers’ salary and bonus.
At the press meet Murshedy had said if any labour unrest breaks out due to the government’s inaction in giving the package, the owners should not be held responsible for it.
After dissemination of the news, criticism poured in for such a demand to pay the workers before Eid.
Later, the BGMEA issued a statement on Sunday, saying that there is no room for misunderstanding as the BGMEA only repeated its earlier demand for government fund to revamp the sector.
For further clarification, the trade body yesterday called another informal press conference.
At the briefing Acting President of BGMEA Shafiul Islam Mohiuddin regretted the way the comment was made at the press conference on September 3, where Murshedy demanded the amount to pay their workers before Eid.
“Actually we didn’t demand the money to pay our workers before Eid, we wanted the amount for the survival of the sector,” said Mohiuddin.
“I am sorry for such a statement,” he said, adding that it is the obligation of the owners to pay their workers.
“Paying the workers is our duty and obligation for running the industry,” Mohiuddin said. He said the owners must not deprive the workers.
The BGMEA has been urging the government for giving stimulus package to the garment sector over the last one year to tackle the fallout of global recession, the acting BGMEA boss said.
“The president’s statement came out of frustration as the government was not responding to the owners’ demands despite having several meetings with it and its departments concerned,” he said.
“The expression of the content was just out of frustration,” Mohiuddin said.
He said the owners felt insecure, as the government did not hold the second meeting of the taskforce committee on recession impact despite the garment sector’s recent negative growth in exports.
Moreover, BGMEA faced pressure from the general members at a recent meeting as many owners were nearing to close down their factories amid poor work orders from international buyers due to the recession, he said.
Mohiuddin said they have no intention to blackmail the government.
He said the garment industry is no longer an individual property — now this industry is the national asset, as more than three million people are directly employed in the sector and hundreds of banks and financial institutions are running with the thriving garment business.
However, the government’s announcement of the stimulus package of Tk 5,000 crore in the national budget for fiscal year 2009-10 inspired the garment entrepreneurs.
Faruque Hassan, vice president of the BGMEA, said the governments of the competing countries have already announced several stimulus packages for their apparel sector to offset the impact of the global recession.
“The competing countries started getting benefits from such financial supports during the recession as they are receiving more work orders now,” Hassan said.
Meanwhile, Finance Minister AMA Muhith downplayed the owners’ demand for Tk 3,000 crore to pay salary and bonus to their workers before Eid, saying it was their ‘tactic’ for realising money from stimulus package.
He said the garment factory owners are capable of paying their workers’ salary and bonus.
“We have statistics that they made profit this year, it may be lower than the previous years,” Muhith said.
Top global retailers plea for RMG workers’ wage hike
February 9, 2010
Top global retailers, including the world’s biggest Wal-Mart and Europe’s largest H&M, according to a report published in the FE, have written a letter to the Bangladesh Prime Minister requesting her to take ‘swift’ measures to increase the minimum wage of nearly two million readymade garment (RMG) workers. The retailers have also urged the highest authority of the government to treat the issue as a ‘high priority’ because of, what they have stated, the wage of the RMG workers has now dipped well below the poverty line. They have found a link between the recurrent unrest in the RMG factories and the poor rate of wage that the workers are paid and urged the government to create a sort of permanent arrangement to make an annual review of the RMG workers’ wage.
There is no denying that labour wage in Bangladesh, particularly for those working in the export-oriented RMG sector is very low compared to that in other global competitors. A survey conducted on the global garment industries by a US-based consultancy firm recently has found that Bangladesh RMG workers get only one-third of the average wage their counterparts receive in other South Asian major apparel exporting countries. In 2006, for the first time, a minimum monthly wage of Tk. 1662.50 was fixed for an entry-level worker in the RMG sector. Last year, a nominal hike in the wage was put into effect. Still the daily income of a entry-level worker is less than a dollar a day, meaning that he or she, despite being employed in an export-oriented industry, does not have enough money to sustain a living. Their income situation would turn even worse if the recent UN baseline for poverty estimate is taken into consideration. Under the new UN estimate, any individual having a daily income below $1.5 is considered below the poverty line.
The RMG workers are seriously aggrieved by their low wage, no doubt. But most acts of vandalism in the RMG sector in recent years have happened mainly because of irregular payment of monthly wage, overtime bills and festival bonus by a section of RMG factory owners and poor management and workers relations. There is, however, a conspiracy theory. But conspirators, if there is any, actually exploit the growing resentment among the RMG workers over low wage and maltreatment by their supervisors at the factory level. Studies have found that the average productivity of the RMG workers in Bangladesh is lower than that of any other competing countries in South Asia, China, the Philippines and Vietnam. There could be a link between the low productivity and the low wage of the RMG workers in Bangladesh. In such a situation, RMG owners have to spend more money on workers’ wage to encourage the latter to raise their productivity level.
The retailers who have written to the PM calling for raking measure to effect a hike in the wage of RMG workers in Bangladesh are major players in the international apparel market. The government cannot ignore their concern because together they buy more than 40 per cent of the country’s total annual RMG exports. These companies have made it clear that they consider the workers’ unrest as a risk, which could damage Bangladesh’s reputation as a reliable sourcing market. Everybody would appreciate the points raised by the group of major buyers. But one cannot, however, ignore the problems being faced by the RMG factory owners who have suffered losses, in terms of value of their products and volume of exports, because of the ongoing global recession. The retailers are, reportedly, paying less than before for goods they are buying from Bangladesh. So, they will also have to make their contributions to the efforts for facilitating hikes in the wage of RMG workers in Bangladesh by paying a little more for the products they are procuring from here.
Local fashion designs win heart of the West
October 13, 2009
International buyers of apparel items now seek innovative designs from the local suppliers and manufacturers as the demand for the fashion design of Indian subcontinent is increasing in the West, industry insiders said.
So traditional Bangladeshi designs are becoming popular in the Western countries, said the businessmen.
The businesspeople and experts said if such demand for innovative designs can be met properly, the country will get a huge advantage in the international apparel business.
Previously, Bangladesh used to produce the apparel items on the basis of designs supplied by the international buyers, which were known as ‘cut and paste’ designs. But, the situation is taking a shift as the taste of the Western people is also changing, the manufacturers said. Read more
Delayed global recovery to weigh on B’desh economy, says ADB
September 27, 2009
The Asian Development Bank (ADB) has praised the government for “prudent” budgetary steps to stimulate the slowing economy, but cited a delayed global economic recovery as the major downside.
Even in the wake of the worst recession in living memory, the Bangladesh economy managed to avert a major economic slowdown and was relatively unhurt compared to its competing Asian peers.
The Asian lender, however, has blamed dampening demand exacerbated by slower growth in exports and remittances inflow for Bangladesh’s slight fall in growth last fiscal.
In its September economic update, the bank noted that the US$ 90 billion economy grew 5.9 per cent in the fiscal 2009, slightly down from 6.2 per cent in the 2008 financial year.
It said the budget for the 2010 fiscal strikes a “prudent” balance between the need to stimulate the economy against the backdrop of the global recession and to protect the poorest of the poor.
“It (new budget) increases spending on social safety net programmes to protect the poor, while preserving macroeconomic stability,” the ADB said in its update.
The report noted public investment declined further, sliding from 5.0 per cent of GDP (gross domestic product) to 4.6 per cent, as annual development programme (ADP) implementation continued to be weak.
“Taking the economy to a higher growth path and more rapid and sustainable poverty reduction will require large-scale infrastructure investment well beyond what the government can provide,” said the report, released Tuesday.
The government’s strategy to address the infrastructure gap includes action on two fronts: building a more conducive environment and enhancing the framework for public-private partnerships (PPPs).
The agriculture sector grew by 4.6 per cent in FY09, up from 3.2 per cent in the last fiscal, owing to high growth in food-grain production, aided by favourable weather and strong government support.
The bank said measures to speed up delivery of seeds, fertilisers, power, and credit and scaled up subsidies for fertiliser and power used for irrigation were key factors in boosting the sector’s output.
Industry sector growth, however, declined to 5.9 per cent last fiscal year, from 6.8 per cent in the previous year as export production in the second half of the fiscal year slowed due to the global slowdown.
Weak investor sentiment also affected manufacturing growth, as did slow implementation of power and energy projects, and weak construction activity, the economic update said.
Growth in the power and gas sub-sectors dropped to 4.5 per cent in FY2009 from 6.8 per cent in FY2008, while growth in the construction sector dipped slightly to 5.7 per cent.
The service sector growth, like that of industrial sector, also slowed slightly to 6.3 per cent in FY2009, due to the slowdown in remittance inflows and lower trading activities.
Slower export growth and a fall in import volumes affected trade and transport services. Retail and wholesale services were affected by moderating consumer demand.
Annual inflation declined to 6.7 per cent in FY2009 from 9.9 per cent in FY2008.
The ADB report said the successive cut in domestic fuel prices in October and December 2008 and January 2009, in line with the fall in international commodity prices and rise in domestic food supplies, has helped to ease price pressures in recent months, particularly of foodstuffs.
Revenue collection remained unchanged at 11.2 per cent of GDP in FY2009 because of the sharp fall in import growth due to the fall in international fuel and commodity prices, the global economic crisis and slower expansion of economic activity.
Revenue from the National Board of Revenue sources increased by 10.7 per cent, far below the budget target of 18.6 per cent and the 27.4 per cent growth of the previous fiscal year.
On the expenditure side, public spending was lower at 15.3 per cent of GDP, down from 15.9 per cent in FY2008, because of savings on food, fuel, and fertiliser subsidies given the fall in international prices and ADP underutilisation.
As savings on public spending were larger than the shortfall in revenue, the fiscal deficit of 4.1 per cent of GDP was lower than the budget target of 5.0 per cent.
Private sector credit growth slowed to 14.6 per cent year-on-year in June 2009, down from 24.9 per cent in June 2008, because of the slower trade growth and slackness in investment activities due to the global economic recession.
Exports grew by only 10.3 per cent in FY2009, a sharp deceleration from the 15.9 per cent in FY2008. Retail sales in developed economies fell, leading to a slowdown in garment export orders and shrinking profit margins for Bangladeshi exporters through price reductions.
Imports in FY2009 rose by only 4.1 per cent, mainly due to the sharp fall in imports of food items and capital machinery.
RMG industries battered by engineered troubles
July 21, 2009
The export-oriented readymade garments (RMG) sector that earns 76 per cent of the country’s foreign currencies and employs some 3.5 million workers, fell victim to violence during 2007 and 2008. It is really regrettable that the authorities concerned have learnt no lesson from the past experience and this pivotal sector continues to be threatened with the reappearance of large-scale vandalism.
Vandalism of a serious nature engulfed the RMG sector from the later part of 2006 that extended well into the next year. Sporadic incidents threatened the sector even under the caretaker administration. Meanwhile, the owners of the RMG industries have done a great deal in the last two years to meet the various demands of the workers including that of higher wages. But recent incidents of violence in RMG industries only highlight the point that dependable peace is yet to bless this all too important sector. Many RMG factories at Narayanganj, Ashulia and Savar have closed down operation apprehending fresh outbreak of troubles for no fault on their part.
The leaders of the RMG industry did reportedly carry out their own investigation into the incidents of violence and also drew the attention of the government and people repeatedly to the results of the investigations. These showed that the violence in many cases were premeditated and helped on by outsiders with vested interests who wanted the destroy the flourishing garments sector in Bangladesh. Investigations from different security agencies of the government also reached the same conclusion. The government investigation teams found out the identities of the sponsors of the violence. But for reasons unknown, stern actions were not taken against them. No wonder, therefore, that the spectre of violence stalks the garments sector.
Added to the activities of the perpetrators of such violence from behind the scene, the RMG sector is suffering recently from heavy extortionist demands. The threat is an extensive one and according to media reports, extortionists are demanding and collecting money regularly from RMG industries since the change of the government. The father-in-law of one RMG industry owner was gunned down only months back for failing to pay the demanded money to the extortionists. The targets of the assailants were the owner and his children who were in the same car of the deceased but they luckily escaped unhurt. The owner of this RMG industry had earlier reported to the police and RAB about the demands on him. The two forces apparently failed to act.
Media reports say that extortion in the RMG sector is now widespread. The owners of the RMG industries have told the press that if the extortionist activities are not effectively prevented, then many of them will have to take the decision of closing down their enterprises sooner rather than later.
The leaders of the RMG sector did earlier propose to the government to form an industrial police force to cater to the security requirements of industries in general and the garments industries in particular. It is particularly welcome that the government has nor pro-actively responded to this proposal. It should make all necessary arrangements to operationalise such a force as promptly as possible.
Unrest in RMG sector endangers economic security
July 7, 2009
The situation in garments factories, which are mainly clustered in and around the capital city, is now the worst. Fifty garments industries were attacked and damaged in different ways in the last four days of unending violence. The Bangladesh Garments Manufacturers and Exporters Association (BGMEA) in its preliminary estimate has put the losses arising from destruction of machineries, premises, raw materials and finished products at Taka 3.0 billion. But this is considered a conservative estimate and the actual losses sustained, so far, will be clearer when another count would be taken. For all, or nearly all concentrated garments industries outside the Dhaka Export Processing Zone (DEPZ), decided to stop production and bring shutters down on their establishments from last Monday. Thus, production losses or production foregone would very soon be turning into very large losses.
But the present losses could prove to be peanuts compared to what losses await this industry as a whole in the future. For very poor signals have gone to buyers of RMG products in the last couple of days about the awful unrest in Bangladesh’s RMG sector. Buyers are very watchful and sensitive about such developments in the exporting countries. They plan their short- and long-term strategies based on the stability and uninterrupted production and delivery capacities from where they source their imports. They know that the RMG sector in Bangladesh has been facing intermittent serious violence in recent years. But the on-going troubles are the worst and most extensive, so far. This scenario could very soon persuade the importers of Bangladeshi RMG products to decide on switching their sourcing decisions from Bangladesh in favour of other countries. Once such a shelf gets underway, the same becomes irreversible. This country has built up its goodwill about RMG exports over three decades and this goodwill among buyers is its best asset in continuing to be a leading player in the export of RMG products in world markets. A bad blow to this goodwill could translate into major setbacks to earnings in the short term and, more worryingly, into serious decline in the fortunes of the sector over the longer turn if buyers turn their backs on Bangladesh.
The RMG sector presently earns about three-fourths of the country’s total earnings from exports of goods and employs over 3.5 million workers directly. A much greater number get their sustenance through linkage activities for this sector. A dwindling down of this sector, therefore, would only mean a debilitating blow to the economic security of the country and this absolutely cannot be allowed to occur under any circumstances. Thus, the sloppy handling of the situation by the government or for that matter by the law enforcement or security bodies, has very greatly shocked, surprised and angered all concerned. How could it be that the home ministry which should have been the focal point of mobilisation of all kinds of measures to stop the violence in its tracks, be so casual or easy-going in the face of the challenge ? A far greater mobilisation and deployment of forces with strict orders, was the bare minimum needed to quell such unruly acts for the sake of protecting the core economic interests of the country.
The leaders in the government do need to realise immediately the impact of the lack of seriousness seen in providing adequate protection to a very vital economic sector, through insufficient or delayed actions. They should seek now to limit the damage and be proactive in very swiftly taking uncompromising and tough lawful actions against vested quarters who are considered to be the real engineers of the violence from behind the wings by exploiting the grievances of a minority among the workers. This is the minimum expected from the government now.