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Thorns in Indo-Bangladesh relations
Transit plays a vital role in designing
Indo-Bangladesh relations. However, the public opinion in Bangladesh is not in favour of transit,
writes Wajid Ali Khan Panni
WHILE envisioning the future of Indo-Bangladesh relations in the current era of democratic optimism, I am reminded of the words of Bangabandhu. In a speech delivered in Kolkata in February 1972, he said, ‘Let us bring to an end once and for all the sterile policy of confrontation between neighbours. Let us not fritter away our national resources but use them to lift the standard of living of our people.’
Unfortunately, he could not shape the destiny of South Asia through cooperation, trust and mutual assistance as he envisioned. The subcontinent not only lost the vision but also the leader. The following decades have seen ebbs and flows in bilateral relationship between India and Bangladesh, making it one of the biggest historical anachronisms.
India and Bangladesh should have had a special relationship, because India supported our war of independence and fought the war along with our freedom fighters and helped liberate Bangladesh from the oppressive rule of Pakistan. Bangladesh is the first country in the post-Second World War period to attain freedom as a consequence of struggle for liberation. Even today, the war of independence and the heroic role of Indian army live in the minds of Bangladeshis who have witnessed the traumatic years of conflict, killings and assassinations. Apart from that, India and Bangladesh share common history, heritage and cultural ethos. So it was expected that both countries will soon herald an era of mutual respect and cooperation to address the issues of poverty and economic underdevelopment.
Bangabandhu’s speech indeed reflected such expectations. However, the folklore of liberation heroism did not last long in Indian political circles which ultimately affected the relationship between these two countries. Mutual respect gave way to distrust and cooperative goals were shifted to diplomats’ dinner tables. Instead of exploring the possibilities of pragmatic policies, we always ended up in never-ending dialogues and accusations. But now the time has come to discuss the core issues in a realistic manner. In an era of globalisation and internationalisation of trade, the economic prosperity of India and Bangladesh is closely linked to the future of our bilateral relationship. However, both the countries have yet to find a formula, an acceptable system that can provide with the tranquillity we so desperately need, to effectively confront our enormous human needs. Hence, it is important to discuss the prospects of Indo-Bangladesh relations in the current context of democratic revival in Bangladesh.
From the perspective of a Bangladeshi, I think that we respect India and are grateful to India for playing the role of midwife in the birth of our nation. We are still a nascent democracy, trying to project our own identity as a nation amidst innumerable problems of internal chaos. However, we hail our national spirit, political sovereignty and independence without any compromise. We are always willing to work with India on any bilateral or sub-regional issues on the basis of mutual respect as sovereign equals with full understanding that Bangladesh’s territorial integrity will be respected irrespective of our internal problems and past history.
In international relations, sovereign states are always inclined to protect crucial issues of national interest irrespective of the assistance rendered to them during crisis period. It is the very basis of nation-state system. Naturally, Bangladesh took a realistic stand on issues related to border demarcation, water sharing, transit and refugee problem, etc, which was not reciprocated by India.
As a sovereign country, Bangladesh, for all its inconsistencies, has to seek answers to our impending problems. Bangladesh shares common border with India on the north, west and east. Even in the south, the Bay of Bengal is dominated by Indian naval presence. Hence, the two countries cannot ignore each other, both strategically and politically.
Bangladesh expected that India would extend her help and support in the economic development of the country through better trade relationship and investment. But India’s relationship with Bangladesh was always dominated by military and security concern rather than friendship and equal status.
When there was an acute shortage of rice after the Sidr devastation, the Indian external affairs minister came to Dhaka and offered to sell 500,000 tonnes of rice, and also rehabilitation of an entire village. But in reality the rice sale had lots of problems and there is no news about the reconstruction of the village. In fact, India’s flood control schemes have only compounded the same problem downstream in Bangladesh. Bangladesh’s cries of despair fell on deaf ears in New Delhi.
The border demarcation dispute is still pending from the Indian side whereas Bangladesh has done its part. The maritime border demarcation is also pending with the Indian side.
Though bilateral trade between the countries has increased after the 1990s, the balance of trade is significantly in favour of India. The Indian economy is larger, diversified and more advanced in industry, service, science and technology, etc. India is one of the most important sources of import of Bangladesh.
Approximately 12 per cent of Bangladesh’s total imports originate in India. Imports from India far exceed $1 billion annually (unofficially almost the same amount) and are highly diversified, which makes Bangladesh one of the large clients for Indian goods, whereas exports are very small, around $100 million. Consumer industries in India are booming. Kolkata looks prosperous with its health clinics, hospitals, private schools, hotels, shopping centres minting money. I was told that Bangladeshis spend around 5-6 crore rupees a day in just Kolkata, which should give reason to India to look at us as a very important and useful neighbour.
Bangladesh is more open and liberalised, compared to India. Hence the restrictive trade policies of India also affected the balance of trade in Bangladesh. Apart from that Bangladesh has not had adequate marketing and distribution facilities in India. Hence, Bangladesh goods often fail to penetrate the huge Indian market and compete with domestic firms which enjoy the economies of scale, competitiveness and government support.
We expect reciprocal trade relationship with India with a proactive and concessional trade linkage which will boost our export, trade and economy in general. However, India doesn’t seem to be interested in initiating a proactive and facilitating role in economic relations on this ground. This asymmetric relation has indeed reflected in political sphere as well. We feel India as a big neighbour should extend help and knowledge support to Bangladesh to develop our human resources, scientific and technological innovations, social and physical infrastructure, etc. Bangladesh could have been an ideal place for Indian entrepreneurs to invest in consumer industries whose products could have been exported to the Seven Sister States, and then the pressure for transit would have not been there. However, India was not forthcoming to take active role in emancipating the small neighbour without interfering in territorial integrity.
The slow progress in economic issues between the two countries is due to the fact that Indian military and security establishments play a major role in shaping foreign policy. India suspects that Bangladesh is supporting insurgency movements in its north-eastern region and giving infrastructure support to jihadi forces. India has been demanding for transit facility through Bangladesh because the economic revival of the Seven Sisters depends on a road channel through Bangladesh. In fact, transit plays a vital role in designing Indo-Bangladesh relations. However, the public opinion in Bangladesh is not in favour of transit. Moreover, the physical infrastructure in the country is not developed to carry additional vehicular transport within the territory.
Bangladesh has neither the money nor the technical expertise to modernise internal transport system to accommodate goods passage from India. Strategic and security related concerns will also emerge since north-east is a melting spot of Indian territory. Hence, India should realise the sensitive nature of the transit issue and the practical difficulties involved in it. So, there is a need for icebreaking from both sides on the transit issue. If India can redesign the trade and investment policy to help and emancipate Bangladesh economy through more investment, concession in exports and assistance for infrastructure development, it will definitely create a favourable public opinion in Bangladesh which will ultimately lead to the amicable solution of the transit issue.
Another bone of contention between India and Bangladesh is the issue of illegal migration to West Bengal. However, the Bangladesh government denies that the country has ever encouraged anti-Indian movements in the north-east. Regarding the danger of terrorism, Bangladesh offered support and highlighted the need for a joint task force to counter terrorist attacks within the subcontinent. In fact, the recent election result in our country has ultimately proved the victory of secularism and democracy amidst the widespread propaganda about the Talibanisation of Bangladesh by extremist forces.
Leaders practising divisive politics and narrow-minded policymakers also contributed to the strained relationship between Bangladesh and India. In Bangladesh, it was believed that anti-Indian slogan was sure to get popular votes in elections. There was a misconception that the masses in Bangladesh view India as a factor for their own economic and political problems. However, the recent election verdict again proved that India-bashing is not necessary to win elections. For, the people of Bangladesh are more concerned about the efficiency and capability of the internal political system rather than outside factors. There is, however, no denying the fact that seeds of hatred was sowed in the minds of people from both sides despite common ethos they share and inherit. We should realise the foolishness of the hatred campaign and try to initiate concrete step towards a better bilateral relationship rather than digging the graveyard of past problems and lack of trust. Meaningful dialogue is required at all levels, from local to national.
Bangladesh needs the support and good will of India not only as a strong neighbour but also as a strong ally in our struggle against all forces of extremism, hegemony and armed conflict. The political and economic destiny of the subcontinent largely depends on sub-regional cooperation rather than dispute and hatred.
I am sure that India has also realised that friendly relationship with Bangladesh is essential for the development of the Seven Sisters. India will continue to share concern for events in Bangladesh because Bangladesh is positioned in a sensitive and highly volatile area. Hence how India will structure its relationship with Bangladesh will be central to the economic life of its Northeast.
Likewise, improving the relationship with the emerging Asian giant will help Bangladesh to develop our industry, trade and infrastructure. Though there are differences of opinion, as a political entity operating under the intricacies of market economy, Bangladesh cannot afford ignoring India’s friendship.
For this to happen, the political leaders of both countries have to change their mindset and myopic vision.
Our bilateral relationship was always viewed through the coloured glasses of security concerns and military interests. The mind set and pre-conceptions inherited from the past often influence the policy decisions.
Lack of stable governance in Bangladesh also affected possibilities of concrete steps towards greater cooperation. Now the time has changed. Once again democracy has resurrected in Bangladesh with a clear popular majority. Hence it is the responsibility of the Awami League to take bold and positive initiatives to improve bilateral relationship without compromising the values and national ethos Bangladesh always stands for. I hope our prime minister will succeed in this effort and will make the dreams of her father a reality.
Wajid Ali Khan Panni is a former MP, deputy foreign minister and high commissioner. wajidpanni@gmail.com
How the west could save itself
Instead of bailing out reckless banks, the west should re-assess the global financial system itself,
writes Wim Naudé
FOLLOWING the World Economic Forum’s gathering this week in Davos in the icy grip of winter, expect to receive yet more descriptions of an apparently deepening economic crisis. Indeed, an avalanche of metaphors has already been used to describe the crisis. From ‘hurricane’ to ‘perfect storm’ to ‘global meltdown’, the message is the same: the whole world stares an unprecedented crisis in the face, we should all fear for our jobs, incomes, assets, health, stability and security. In the world media the crisis has become a basso continuo, a refrain that has now been taken up by policymakers and others as a modern-day bogeyman.
Yes, there is a financial crisis in the USA and in parts of Europe. Yes, these countries will be in recession in 2009: but it will neither be their first nor last recession. And yes, the recession in many countries in the west and the world’s largest economy will have a negative impact on other regions of the world. But no, there is no global recession or global ‘meltdown’. No, most countries in the world, particularly in emerging and developing regions, are not in recession.
All expectations are that countries in Asia, Africa and Latin America will on average experience growth of at least 4 per cent and upwards in 2009 and beyond. China, now the world’s third largest economy, just posted a 6.8 per cent growth for the last quarter of 2008. Shock and horror, many cried! But when last did any western economy grow that fast? And Germany, the world’s fourth-largest economy, just indicated that it expects the recession there to have blown over by next year and to resume positive growth, albeit more modestly. So really, comparisons with the Great Depression are greatly exaggerated.
Having a bogeyman may however be convenient, as parents with unruly children understand. In the media it may just be good business, as humans have a tendency – hard-wired by evolution – to be biased towards bad news. The media like to simplify and package news and information, so ‘global recession’ is a convenient explanation for a complicated phenomena. Western bias in the media also plays against explanations of what might be happening in developing economies.
But the danger is not the slowing down of growth over the short-term. No, the world has seen many upswings and downturns, and the mistake would be to believe that the business cycle is something of the past. Come boom, come bust: the IMF has documented 124 systemic financial crises since the 1970s. The world has survived them all. This will therefore not be the last financial crisis; and although the impact on poverty is a real cause for concern, we should perhaps be even more concerned about the underlying lasting danger posed by the crisis as bogeyman.
The lasting danger, to be feared, is talking up a global financial crisis that scares nations into believing that the only way out is through bailouts – basically throwing their hard-earned taxpayers’ money at the problem. Or worse, giving it to those responsible for the crisis amidst even more expansionary monetary policies than those that contributed to the crisis. The real danger is Bailout Man, not the bogeyman of global meltdown.
There are at least five dangers inherent in the rich world bailing out firms. First, the moral hazard problem of rewarding bad behaviour. The crisis is largely the consequence of greed and reckless risk-taking, amid cheap and easy credit and inadequate regulation, by overpaid CEOs and asset managers. How will financial institutions behave in the future knowing that if they get risk assessment and capital management wrong, they have an automatic ‘get-out-of-jail-free’ card? And shouldn’t we be concerned that policymakers, wanting to avoid this obvious moral hazard, will not now over-regulate and control the financial system, thereby stifling future growth?
Second, a message is being sent out that not only are some firms too large and important to fail, but by rescuing them and consolidating some into even more concentrated sectors they will become even more important. How would financial institutions and other firms behave in the future knowing they have even more potential market power? Will consumers still pay the price of the bailouts in terms of higher prices and poorer service long after the crisis has passed?
Third, some would argue that bailing out banks at least would prevent systemic instability. But what about other firms such as car makers? Where should the line be drawn? And who decides?
Fourth, what if many more countries started to bail out their unsuccessful industries? What if this means carte blanche for populous countries such as China and India to openly increase subsidies to their car makers and other industries? What would this mean for international bodies (such as the World Trade Organisation) based on reciprocity? And what would it mean for the environment?
Fifth, the bailout-bogeyman may protest that these bailouts are ultimately in the interest of developing countries. Really? Affording the bailouts (which will probably exceed $2 trillion in the US and EU) will involve a substantial transfer of resources from developing countries, which now hold $6 trillion of the world’s foreign reserves. As the United Nations said in its Global Outlook 2009, ‘Developing countries as a group are net creditors to the rest of the world, and their savings will quite likely provide, directly or indirectly, a major source of funding to cover the costs of the multi-trillion dollar bail-outs of financial institutions in the United States and Europe.’
The poor are literally filling the purse of Bailout Man. And it is not that this is the first choice of investment for these countries: holding so many US dollars is a great cost and risk. It largely reflects the inadequacy of the global financial system, about which much has been written, but little done, especially since the Asian financial crisis a decade ago.
This crisis has now shown that the global financial system itself can be a cause of moral hazard by encouraging western countries to pursue reckless growth. Addressing the five dangers mentioned here within the context of reforming the system is thus not only in the interest of developing countries who have been clamouring for change, but also in the interest of sustained growth in the west, and most notably the US.
The Guardian, UK. February 2, 2009.
Market over schools!
by Kazi SM Khasrul Alam Quddusi
Conscious people of Chittagong are passing anxious days due to an adamant stance of the Chittagong City Corporation’s mayor ABM Mohiuddin Chowdhury and his corporation regarding construction of a marketplace by demolishing two girls’ schools — Aparnacharan Girls’ High School and Krishnokumari Girls’ High School.
Initially, though the people were taken by surprise at such a move by the city mayor, they are not acting as mere spectators. Many renowned personalities, civil society groups, political parties, student organisations, etc have already started voicing strong protests against such a reckless attempt by the city corporation — processions, meetings, sit-ins are taking place regularly to persuade the city corporation not to go with the move. The role of media too is appreciable in this regards. But since the episode is taking place away from the capital it is not getting due attention. And, therein lies the risk of the matter getting hushed up by the authorities concerned — the political authority at the port city.
Reportedly, these two girls’ high school of Chittagong were built nearly 80 years ago on land donated by a philanthropist for advancement of female education in the region. The land was donated for this purpose only and nothing else. The Chittagong City Corporation now manages these two schools. Does the responsibility, however, give the corporation the license to do whatever it wishes with those educational institutions that has precious historical significance? Enlightened people of Chittagong are unanimous on this point that the City Corporation just cannot destroy these schools with commercial interest.
The contribution of these two schools towards betterment of female education is significant. Many students of these two schools are serving the government and the country in various capacities. However, it bears special mention that Prilitlata Waddedar, the martyred anti-British revolutionary of the subcontinent, was once the headmistress of Aparnacharan School.
Interestingly enough, a good number of famous and old markets of Chittagong namely New Market, Reazuddin Bazar, Rifle Club Market, Shah Amanat Market, and Jahur Hawkers’ Market are positioned in and around these two schools. Then how can constructing another market and, that too, at the place of the original school buildings and adjacent playgrounds make any sense?
Moreover, the Chittagong Development Authority, building-design approval authority of the port city, has not yet approved the proposed design of the commercial building due to defects in the design. The question of ownership will, however, not solve even if the CDA approves the design as the all-important ‘public interest argument’ will remain as strong as it is.
The argument on behalf of the city mayor is, reportedly, accumulation of money for development work for the school. Concerned citizens of Chittagong have, however, rejected this argument outright. They are of the opinion that this is a sheer commercialised thinking. It is quite natural that movement of girls, too, will become highly hazardous, as the proposed multi-storied building will have markets and shops as well girls’ schools housed in the same complex.
Admittedly, big cities of our country are becoming increasingly dense these days Dhaka and Chittagong is one of the worst affected ones. Most of the newly set-up educational institutions ranging from kindergarten to university have no real infrastructure now, let alone a playground, which is a sine qua non for any educational institutions.
It is, thus, really unfortunate that a mayor of the second largest city of Bangladesh is out to snatch the playgrounds from the students of two historically significant girls’ schools. Such an act by the elected mayor has really frustrated as well as infuriated the general citizens.
Though it was initially a plea of the students of two girls’ high school of Chittagong, it is rapidly becoming a people’s issue mainly because the people just cannot wait and watch while the city father and his corporation goes on with their destructive plan.
Kazi SM Khasrul Alam Quddusi is an assistant professor, Department of Public Administration, University of Chittagong
Tiffin at schools
Introduction of tiffin at primary and secondary-level schools was proposed at Jatiya Sangsad to reduce dropouts of students.
We welcome this initiative.
Habibur Rashid Ismail
Chittagong
I often notice that many people, especially politicians, are surrounded by a group of people while they answer questions from the journalists. I wonder who these people are. Do they reflect the extent of unemployment in Bangladesh? Or does it reflect the extent of sycophancy?
Waheed Nabi
UK
Obama’s team
Obama has shown astuteness and foresight in his cabinet appointments. Appointing Hillary Clinton as his secretary of state was a master-stroke. Hillary has shown tremendous skills and she will lead America to a new dawn. America needs to cultivate friends abroad and at the same time send clear signals to rogue states: either come on board to make the world a safer place; otherwise, be prepared to face the might of the United States. The message need not be sent in a belligerent manner but just firmly.
Sarah Chowdhury
Los Angeles, USA
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a. Ruling party, opposition come down hard on interim govt (New Age, February 2)
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c. Dhaka to buy 3 flats in NY while prices are still low (New Age, February 2)
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