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Bangladesh: Perspectives on South Asia
Abul Ahsan

Bangladesh's attitude towards, and involvement in, South Asia, and for that matter, the world at large, is based on some fundamental realities facing the nation. It is a small country with a large population. The density of population per square kilometre at 1025 is one of the highest in the world. Per capita income is low ($370 per annum) and about 29 percent of the population lives on less than a dollar a day1. Even after the restoration of democracy in 1991, political process remains fragile because of confrontation and lack of accommodation on the part of two main political parties, the Awami League and the Bangladesh Nationalist Party.

The country is all but surrounded by its big neighbour India. The only other country with which it shares a common border is Myanmar. As a nation, Bangladesh faces the formidable challenges of security, under-development, integrating ethnic, linguistic and religious minorities in the main stream of national life and establishing good governance.

Bangladesh has limited military and economic power and its ability to project that power outside its borders is even more limited. The physical infrastructure of the country is yet to be developed and harnessing the natural resources, particularly water, can best be done with the co-operation of the adjoining countries. Given this background, Bangladesh has laid emphasis on promoting peace and co-operation in the region and the world. It has consistently striven to establish mutually beneficial political, economic, cultural and other relations with other nations. As a small country, particular effort was directed to expand and deepen relations with Nepal, Bhutan, Maldives, and Sri Lanka next door. Within the limits imposed by the small size of economies of each country and in many cases the competitive nature of production structures, these have produced positive results. Regular visits at the level of heads of government and cabinet ministers and exchange of government and private sector delegations have served to establish personal contact and promote goodwill and understanding.

Bangladesh’s relations with Pakistan have grown steadily. The legacy of the pre-1971 era and the questions of resolving outstanding issues, such as those relating to division of assets and repatriation of Pakistani nationals from the country, have been overshadowed by the growing mutuality of interest in political, economic and security fields. Bound together by historical and religious ties, the two countries have worked together in the Organization of Islamic Countries (OIC) ,the Commonwealth and the United Nations on issues of common concern, particularly on economic and trade issues, Middle East and Palestine.

Bangladesh's relations with India are sensitive and multi-faceted as they are complex. In size, population, economic and military strength, India towers over Bangladesh. The two countries share a long and highly porous border and there is the legacy of the past, which sometimes casts its shadow on relations between them. For many Bangladeshis the pre-dominant threat to the country's security and integrity comes from the big neighbour.

This notwithstanding, it must be said that over the years the two countries have managed their bilateral relations rather well. There has hardly been any serious breach of peace or dislocation of political and economic relations as many prophets of doom have long suggested. Some of the issues which once appeared intractable, such as the division of water of the Ganges, the Chittagong Hill Tract refugees in India and the demarcation of land boundary, have largely been resolved to mutual satisfaction. Trade and economic relations have increased steadily although the balance of trade tilts heavily in favour of India. The formal and informal export of India to Bangladesh now totals about $ 3 billion a year, making Bangladesh the fourth largest importer of Indian goods in the world2. No doubt, some of the outstanding problems, such as Indian allegations of illegal Bangladeshi immigration to India, providing safe haven to Indian dissidents and rebels, particularly from the northeast and allowing Pakistani ISI to operate against India from Bangladesh territory, are yet to be satisfactorily addressed. On its part, Bangladesh is keen to resolve the questions of sharing waters of the remaining common rivers with India, stopping incursion of Indian security forces into Bangladesh which frequently leads to death and destruction on the Bangladesh side, speedy conclusion of demarcation of maritime boundaries and narrowing the growing trade gap. Some of these are, no doubt, serious issues but what is important is the realisation on both sides that they can, and should be, resolved peacefully through discussion.

At the regional level, security is a predominant consideration for Bangladesh as well as other countries of South Asia today. The most serious security issue in the region arises from highly charged and confrontational relations between India and Pakistan, who have already fought three major wars. The matter has assumed serious dimensions since the two countries acquired nuclear status and missile technology. In recent years, each of them has engaged in a game of brinkmanship to promote their political and security agenda as evident in the Kargil episode, mobilisation of huge troops along the common border and other similar activities. These developments hang heavy on the security environment of the entire South Asian region. Taking advantage of the situation, militants, religious fundamentalists and gun runners on both sides of the border and in some cases extra-regional powers are actively promoting their own agenda further complicating an already volatile and sensitive situation. Meanwhile, non-traditional security threats including violence and terrorism along ethnic and religious lines as well as environmental security threats relating to food, water and land are undermining the stability, sustainability and sapping the vitality of South Asian societies.

These developments affect Bangladesh and the whole of South Asia in several ways. First, the environment for peace and stability in the region is vitiated. Second, it adversely impacts the SAARC process. Third, the region becomes open to intervention by outside powers that have their own design and interest in the area. Fourth, much needed resources are diverted to defence at the cost of needs of education, health and development of infrastructure.

It has been estimated that expenditure on maintaining nuclear arsenals including providing for safeguards, training, command and control will cost India and Pakistan $ 15 billion for a ten year period. As it is, Pakistan, Bangladesh and India are estimated to spend about 26, 10 and 13 percent of their annual budget respectively on defence. The amount represents 181, 40 and 57 percent of what each of them spends on health and education combined3. Bangladesh has consistently tried to remain neutral in the disputes between India and Pakistan or any other bilateral issue anywhere in the region. In fact, in its own modest way, the leadership of the country has tried to diffuse tension through bilateral engagements whenever the situation assumed a degree of seriousness.

Poverty and underdevelopment are also serious problems for South Asia, where average per capita income of less than $500 is lower than even Sub-Saharan Africa. About 40 percent of 1.3 billion world’s poor live in the region. The rate of adult literacy is low and female literacy is a mere 36 percent. South Asia accounts for only 2 percent of the world's output and 2.3 percent of trade, although one fifth of the world's population lives in the area4. In the context of the above economic, political and security situation facing South Asian nations individually and collectively, Bangladesh mooted the idea of South Asian Association for Regional Co-operation (SAARC) in the early 80's. Although the emphasis of the initiative was economic cooperation it was felt that contact and co-operation resulting from it would promote peace, friendship and goodwill among member states. Unfortunately, even after two decades of its existence and regular summits and ministerial level meetings, SAARC has not achieved the desired results.

Intra-regional trade in South Asia is still less than 5 percent of the region's global trade. This contrasts sharply with intra-regional trade in the Association of South East Asian States (ASEAN), the European Union and the North American Free Trade Association (NAFTA), which stands at 32, 62 and 48 percent, respectively5. South Asian Preferential Trade Area (SAPTA) launched a few years ago, has not improved the situation. The subsequent move of the organisation to establish a free trade area has not seen any progress either and a few deadlines to finalise a draft agreement have already been missed. Similarly the progress in attracting foreign private investment, another notable feature of all such arrangements, has also been discouraging.

On the other hand, net investment in MERCOSUR, also called Southern Common Market, increased 33 percent per year from 1992-966. ASEAN has benefited from the industrial complementation project and joint investment program activity supported by Japan, Korea, and Taiwan. Another major strategy of any regional organisation is to harness complementarities and reap the benefit of economies of scale through development and strengthening of communication network like roads, rails, ports, etc. In South Asia, even the historical network has decayed and remains un-operational. The recommendation of the SAARC Group of Eminent Persons to establish a South Asian Economic Union by the year 2020 in phases (free trade area, custom union and eventually economic union) is making little headway.

SAARC remains mired in lack of commitment and seriousness to the idea on the part of the major South Asian countries-India and Pakistan and their conflict and confrontation on Kashmir and other political and security issues. In this context it may be underlined that from the very beginning Bangladesh's initiative was viewed with suspicion as being a ploy of outside powers and a measure either to rally round small nations against the biggest of them or to formalise the latter's domination in the area7.

This attitude has resulted in the establishment of SAARC with vague aims and purposes (improving the quality of life of the people and their welfare, intensifying mutual co-operation). The SAARC activities are to be funded through voluntary contributions. Bilateral and contentious issues have been left out of the SAARC agenda and unanimity has been made the basis of all decisions of the organisation. For a region which is starved of capital involvement of donor countries, international organisations and private sector in SAARC activities have been either left out or subjected to strict procedures8. Cooperation in core economic areas (trade, industry, finance) which provide the vital rationale for other regional organisations was left out of South Asian agenda until recently.

In an era of economic liberalisation and globalisation of production and distribution which is led by WTO, World Bank, IMF, and multinational corporations, there is no alternative for South Asia but to integrate with the world economy. But in order to do so smoothly the region must first go for economic integration within South Asia itself. It needs to be underlined that in spite of globalisation, regional organisations still attract serious attention both in the developed as well as the developing parts of the world9. The European Union and ASEAN have expanded membership in recent years and widened and deepened their economic co-operation. Intra-regional trade in European Union, NAFTA, ASEAN, and MERCOSUR today stands at 61.5, 47.5, 25, and 22.8 percent of global trade of member countries10. This is because despite dramatic development in information and communication technology, markets still remain fragmented and cultural differences, costs of transportation and consumer preferences still continue to play an important role in trade and economic exchanges.

As is evident from the foregoing, Bangladesh is in favour of strengthening regional economic co-operation in South Asia and eventual establishment of South Asian Economic Union. No doubt, the matter should be examined carefully and special provisions made for the weak and small economies like Bangladesh for sufficient lead and transition time to avoid serious economic dislocation. Equally there will be need for special arrangements for investment to allow diversification of their base of production and provide market access. In similar circumstances, these are common features in other regional economic organisations.

In conclusion, it needs to be emphasised that the concept of national security has undergone a qualitative change in recent years. The spread of education, democratisation of societies, empowerment of people and increasing transparency and accountability of government action domestically and in foreign affairs underlie the change. The emergence of instant communication and active print and specially the electronic media are other important factors.

But South Asia seems to be still bogged down in traditional thinking and old mindset. Much time and resources are being wasted at the altar of outmoded ideas about security and national chivalry depriving the common man of the opportunity for a better life thrown open by developments in modern science and technology. At a time when most parts of the world are actively pursuing a policy of reconciliation and mutual accommodation with neighbours to promote peace stability and development South Asia stands by and stagnates. Through a process of realistic review of national priorities and pre-occupation not only smaller states like Bangladesh, but even India and Pakistan would gain politically and economically. A strong and vibrant South Asia is sure to improve the individual and collective international standing of member states and enable them to play their due role in the comity of nations.


(Abul Ahsan is Vice-President of Independent University and a former foreign secretary of Bangladesh).

References

1. World Development Report 2003 World Bank Oxford University Press New York 2003 p234,236
2. Prof. Mustafiz ur Rahman, Bangladesh-India Economic Relations: Current status and unfinished task Centre for Policy Dialogue January 2001 Dhaka p5, 6.
3. Human Development in South Asia 1998, Human Development Centre, Oxford University Press, 1998 Karachi p184
4. Ibid p15
5. Pascal Petit and Luc Soete, ‘Globalization In search of a Future’, International Social Science Journal, June 199 Globalization Vol I& 2 p167-168
6. MERCOSUR IN Brief US Doc MERCOSUR Desk 2003 p1&2
7. Pervaiz Iqbal Cheema, ‘SAARC Needs Revamping’, South Asian Survey Volume 1&2 Sage Publication India Pvt. Ltd December 1996 p312-315
8. Abul Ahsan, SAARC Perspective, University Press Limited P 55 (SAARC Charter)
9. ‘Economics’, The Economist 1999,Profile Books Ltd, London 2001 p14&15
10. Ibid 5 p 170
Produced By: Free Media Foundation For South Asian Free Media Association