Friday 6 May 2016

From non-cooperation to cooperation, Bangladesh’s political narrative is taking a U-turn

Pratim Ranjan Bose

The misfortune of a Bangladesh is its achievements are always under-reported.
Leave alone global media, which didn’t see much beyond poverty in this part of the world, till about 20 years ago, even the Indian media rarely pays attention to the valiant attempts of this tiny Muslim majority nation, that was once a part of Pakistan, to chart a distinct course of history.
Perhaps this has something to do with its location. Conduct a snap poll in the elite Indian cities of Delhi and Mumbai – which dictate the life of every Indian – any many may be at hardship in locating India’s East and North East - that shares 4100 km border, fifth longest in the world, with Bangladesh.

If you take it as a brag-post, just check out the number of media reports on how Dhaka is scripting a change the political narrative of the subcontinent from Pakistan influenced politics of mindless rivalry to collaborative growth; ignoring pressure from the ultra-nationalist bogey, having substantial control over the nation’s financial system; I don’t think you will find many.

Tremendous achievements

The collective amnesia is surprising, considering Bangladesh’s track record of throwing surprises.
Her freedom from Pakistan, in 1971, was a denial of the ‘Two-nation” theory that divided the sub-continent in 1947. But what is more spectacular is Dhaka’s consistent attempt to rebuild an economy based on principles of democracy and growth. 
The job was, and still is, not easy. The 24-year Pakistani rule had its trailing effect on the economy. From cost inefficient energy economics to army rule; weak democratic institutions to rise of fundamentalism and attack on minorities – Bangladesh undergone the same set of problems that is so common with Pakistan
To add to its problems, the genocide carried out by Pakistani army created a severe intellectual void in Dhaka that was already suffering from landslide out-migration (of Hindus), one of the biggest in the world history, during the Partition.

Islamabad didn’t suffer from this problem. Also, Pakistani cities like Karachi or Lahore were far more prosperous than Dhaka. Add to this the impact of internal colonisation by Pakistan and, Bangladesh was one of the poorest countries in the world in 1971.
But, the striking difference between the two nations is the resilience of Bangladesh (courtesy a rich Bengali cultural heritage), in fighting these odds.
It took Pakistan more than six decades to see a democratically elected government completing full five-year term in 2013. On the contrary, all elected governments in Dhaka completed their tenure from 1990 with army slowly but surely finding the way back to the barracks.
 During the 1970’s and mid-1980’s Islamabad used to take pride in stronger growth numbers than Delhi. Today, it has nuclear bombs but the economy is in tatters. On the contrary, Bangladesh hasgrown at an average of six per cent, throughout the last decade. Leave alone Pakistan; Bangladesh is today better placed than India in many social development indicators.
And, they are craving for more.

The new paradigm

This aspiration is now bringing the most prominent change in Bangladeshi politics through an overt support to India-led regional cooperation initiative.
Delhi’s crucial support to Bangladesh’s Independence, mutual interdependence and strong people-to-people contact notwithstanding; Bangladeshi politics had all through revolved around anti-India sentiments fanned by pro-Pakistan staunch Islamic influencers like Jamaat-e-Islami and/or Bangladeshi Islami Chhatra Shibir.
Though a marginal force in terms of electoral fortunes; Islamists took maximum advantage of Post-Independence roller coaster to champion the cause of hate politics.
Throughout the 1980’s and 1990’s, Bangladesh played host to North Eastern ultras for common purposes with Pakistan and, was noncommittal to cooperation initiatives, to put it mildly.
That the early promise of friendship was engulfed by a sense of enmity can be understood from the fact that the cross-border rail links which were snapped in 1965 were never restored.
I am not passing the entire blame to Dhaka. But, it is history that the P V Narasimha Rao government in Delhi did make a serious attempt to amend the historic deficiencies on the part of Delhi by opening “Tin-Bigha corridor” to Bangladesh in 1992. He was committed to moving ahead with cooperation initiatives for regional stability and growth. But a Khaleda Zia-led BNP government belied his expectations.
Things started changing sometime in early last decade when the same Zia was in power. That the Indian companies started taking the interest in Bangladesh is a key pointer to this argument. The most talked about investment offer during this period was a multi-billion dollar proposal from the Tata Group. It is true that the investment didn’t materialise apparently due to Zia’s failure to clear the deck. But, it is also correct that Dhaka made some attempts to accommodate it.
Asjadul Kibrika a Dhaka-based financial journalist feels, there were “both politics and economics” behind the failure to accommodate the offer. He particularly points out inexperience of his country in handling such mega investment offers
Consider India’s failure to pave way for implementation of greater part of the $180 billion investment offer - inmines, minerals, power and steel projects - in Orissa, Chhatisgarh and Jharkhand from the world biggies like Posco or Mittal; and you know Kibria has a point.
Culture is not restricted in the rendition of Rabindra Sangeet (Tagore Songs that the Bengalis are so fond and proud of), it also plays a role in the prosperity of a Gujarat and the poverty of Bihar. And, Dhaka now understands it more than ever.
The Sheikh Hasina-led Awami League government in Dhaka is now out to change the political culture of Bangladesh from the root by formally giving a red-carpet welcome to Indian investments, responding to all connectivity proposals between the two countries and, helping create a common market in the East that can be harnessed by either side for mutual prosperity. 

Emerging possibilities

In a way, Dhaka’s aspirations have many similarities to the liberalisation of the Indian economy in 1991 that had changed the course of Indian politics forever. From 2004, a dominant majority of the elections in India was won or lost on growth issues.
Atal Bihari Vajpayee-led NDA government did enough to ensure future growth but lost the 2004 election as the fruits of such initiative were yet to reach people. The same people voted a corrupt Congress-led UPA government back in power in 2009, courtesy the high growth regime. And, as the growth rates became sluggish they brought in a Narendra Modi-led NDA in power in 2014.
From the communist-led Tripura government to regional Telegu Desam -led Andhra Pradesh every Indian State is today striving for economic prosperity. Even in West Bengal that was an exception to this trend, politics is now revolving around growth.
In many ways, Hasina’s consistent attempt to give cooperation a chance for last six years started impacting life on either side of the border. Bangladesh now sources 600 MW of cheap thermal electricity from India to meet part of the peak 1500 MW shortage. The supplies will increase in the days to come. Similarly, India’s North East is now rejoicing freedom from unstable data connectivity as Bangladesh offered additional bandwidth on commercial terms.
It is not surprising therefore that North Eastern states, especially Tripura is acting as a pressure group on the Indian government to give more leeway to Bangladesh to help Dhaka to fight the ultra-nationalist bogey. And, in the evolving federalism in India, border States will play a role in Delhi’s relationship with neighbours.
Indian Corporates are keeping a close watch on the changing environment and making steady moves. Though not high in quantity, Indian FDI in Bangladesh has increased exponentially in last two years.
But that is just a precursor to the future growth opportunities. Indian tyre major, Ceat is setting up a plant in Bangladesh that will take advantage of zero-duty imports to cater both sides of the border. Hiranandani Group of Mumbai is planning a floating LNG terminal on the coasts of Bengal that will cater the demand of gas on either side through a cross-border pipeline.
For a single product (textiles) country that doesn’t have many home grown brands; Bangladeshi entrepreneurs will take time to take advantage of the easier access to Indian markets. Also, stiff restrictions on capital outflow are coming in their way to tap opportunities in India.
Bangladeshi Prime Minister Sheikh Hasina 
Hopefully, Bangladesh will respond to the need for reforms initiative else, its companies will find roundabout ways to do tap opportunities. 
Bangladeshi food products company, PRAN, for example, invested in India through an overseas outfit. The brand is enjoying a free run in seven North Eastern States which are not duly catered by the Indian companies. Bangladesh is losing the direct dividend.

Many challenges

Dhaka is trying its best to bring in force a business-first policy. But the move forward will not be easy at least not as easy as liberalising Indian economy.
The wall of mistrust built over years will take time to dissipate from the public mind. Dhaka therefore, will most likely face unjustified criticism for entering energy deal with India or nodding to connectivity proposals. They are remains of an era when anything to do with India was opposed tooth and nail. It’s a cultural issue and will not go away easily.
What is more important, the ultra-nationalist and fundamentalist forces have developed strong roots in Bangladesh’s socio-economic-political system. It will take a long time to weed them out. Till then, they will try their best to sabotage collaborative efforts.
The recent spate of killings in Bangladesh may point at a concerted effort to create unrest and spoil growth prospects. It’s a power struggle and may reach brutal end, if it hasn’t already.
Will Dhaka be able to take this in its stride? I am confident it will.
The world and the Indian experience of liberalisation say it is difficult to open up ignoring vested interests. But, once done, it’s unstoppable.
 No one talks about erecting the Berlin Wall, once again.


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(Disclaimer: photos taken from the web. Will be removed in case of any complaint)
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