Issues to consider before joining the Asian Highway project
ISSUES TO CONSIDER BEFORE JOING ASIAN HIGHWAY
Syed Jamaluddin
The Asian Highway project was conceived in 1959. This grand project of building a highway in the Asian continent was sponsored by the Economic and Social Council for Asia and the Pacific(ESCAP) of the United Nations. The project remained in a limbo for more than a quarter century and was revived in accordance with the inter-governmental agreement in 2001 in Seoul. The Asian Highway Authority set the deadline of December 31,2005 for joining the multilateral project. The deadline has already expired. But countries can still join the project
Bangladesh could not decide in time to be part of the project. Of the three possible routes that may connect the country with the continental network, the last BNP government preferred the Dhaka-Yangon alignment. Bangladesh was willing to make the necessary construction at its own cost. But Myanmar was yet to agree to this arrangement. The two other options start from Benapole of India near Bangladesh border and end at Tamabil. Both of these routes start and end in Indian territory after a short journey through Bangladesh.
Bangladesh is enthusiastic to join the project. The two routes (India to India) may hamper the commercial interest of Bangladesh and pose a security threat to the country. The last BNP government found it difficult to join the project by accepting either of the two options indicated above. Some of our intellectuals are in favour of joining the project without arguing. But there are many others who are not supporting the project with either of the two options mentioned above as it will go against the interest of the country.
The two proposed routes have been planned, keeping in view the convenience of India. This means that through these routes India will use Bangladesh as a corridor. There is a story behind the proposed alignment of the Asian Highway through Bangladesh. Both the Executive Secretary and the concerned Director of ESCAP were from Bangladesh at the time of preparation of route design relating to Bangladesh and India.
These officials sought Indian support for their promotion and extension. Therefore, they worked in favour of the Indian interest and did not brief the Bangladesh government properly on this issue. The Executive Secretary is dead. The said Director is back to Dhaka after retirement from ESCAP and is still pushing for the Benapole-Tamabil route.
Bangladesh showed interest in Dhaka-Chittagong-Cox's Bazar-Yangon route. Myanmar was also interested in this proposal. The government of Bangladesh will have to present this proposal jointly with Myanmar. India reportedly has been influencing Myanmar to accept the ESCAP proposal. But it now appears that government has decided to join the project on the basis of India-to-India route.
They are saying that Bangladesh will be isolated if they do not join the project. But the issue is not about joining the project. The real problem lies in choosing the alignment. BNP preferred the Dhaka-Yangon route whereas this government is going for the Benapole-Tamabil route.
BNP did not join the Asian Highway as per ESCAP proposal as they were not willing to provide transit to India. Giving transit to India will be a major concession. Bangladesh must get equivalent concession from India. Let India say that they will return south Talpatty in return for the transit. Granting of transit to India without commensurate benefit will amount to betrayal of the cause of Bangladesh. It is necessary to go for hard bargaining in this case.
Bangladesh situation was not unique in not accepting the ESCAP proposal. The Philippines has not yet accepted the proposal. Because the project may not be beneficial for a country consisting of many islands. Singapore has reservation about road link with Malaysia. Turkomenistan has problems with the neighbouring countries. North Korea has connectivity problem. Therefore, much remains to be done before the Asian Highway project can be completed. Many issues remain unresolved.
The logical thing is that this road project should enter a particular country in one place and there will be an exit in another point. In this case, the road enters India twice. Normally the route is to start from Delhi and reach Dhaka. From Dhaka it should proceed to Yangon and then connect Bangkok. This is how the route will connect Europe. There is no reason why ESCAP will not buy this idea. They have to be convinced along this line.
It is often claimed that there is great prospect of cooperation between Bangladesh and the north eastern states of India. These states are less developed compared to the other states of India. It is true that our products have great demand in those states. But Bangladeshi products cannot move to these places unless India applies a special trade regime for states.
But the central government of India will never do this. On the other hand, if transit is allowed, the requirements of those states will be met by transporting goods from the rest of India thereby eliminating the prospect of market for Bangladeshi goods in the north eastern states of India. This will be a real loss for Bangladesh.
There was a newspaper report recently that the future of the Padma bridge will depend on giving transit to India. The World Bank and Asian Development Bank (ADB) may not provide funding for the bridge project unless transit is given to India. But this report is not likely to be true. Donor agencies cannot put pressure on Bangladesh for giving transit to India.
This is an issue to be decided between India and Bangladesh. At one stage, an idea was floated that investors may not come to Bangladesh if transit is not granted to India. This is how the matter is played in the media. Interested quarters float many ideas in support of their target.
It may not be wise for the government to proceed unilaterally on this issue which is sensitive. There may be political risks involved in the matter. While there is no disagreement on joining the Asian Highway project, the choice of route is the bone of contention. The debate is on selecting the most appropriate and beneficial route for Bangladesh. A suggestion has been made to arrange a referendum on this controversial issue.
The Tariff Commission has made a good proposal to the government. Their suggestion is to conduct a cost-benefit analysis of transit covering economic, social and political issues, prior to granting transit facility to India. According to them, a multi-dimensional approach to the issue of transit appears to be realistic.
Five major issues such as conceptualisation of transit, benefit of transit, infrastructural requirement and costs involved for providing transit and requirement for customs and other facilities for border agencies need to be addressed clearly before taking a decision. It is hoped that government will take a comprehensive view of the issue before taking a decision.
ISSUES TO CONSIDER BEFORE JOING ASIAN HIGHWAY
Syed Jamaluddin
The Asian Highway project was conceived in 1959. This grand project of building a highway in the Asian continent was sponsored by the Economic and Social Council for Asia and the Pacific(ESCAP) of the United Nations. The project remained in a limbo for more than a quarter century and was revived in accordance with the inter-governmental agreement in 2001 in Seoul. The Asian Highway Authority set the deadline of December 31,2005 for joining the multilateral project. The deadline has already expired. But countries can still join the project
Bangladesh could not decide in time to be part of the project. Of the three possible routes that may connect the country with the continental network, the last BNP government preferred the Dhaka-Yangon alignment. Bangladesh was willing to make the necessary construction at its own cost. But Myanmar was yet to agree to this arrangement. The two other options start from Benapole of India near Bangladesh border and end at Tamabil. Both of these routes start and end in Indian territory after a short journey through Bangladesh.
Bangladesh is enthusiastic to join the project. The two routes (India to India) may hamper the commercial interest of Bangladesh and pose a security threat to the country. The last BNP government found it difficult to join the project by accepting either of the two options indicated above. Some of our intellectuals are in favour of joining the project without arguing. But there are many others who are not supporting the project with either of the two options mentioned above as it will go against the interest of the country.
The two proposed routes have been planned, keeping in view the convenience of India. This means that through these routes India will use Bangladesh as a corridor. There is a story behind the proposed alignment of the Asian Highway through Bangladesh. Both the Executive Secretary and the concerned Director of ESCAP were from Bangladesh at the time of preparation of route design relating to Bangladesh and India.
These officials sought Indian support for their promotion and extension. Therefore, they worked in favour of the Indian interest and did not brief the Bangladesh government properly on this issue. The Executive Secretary is dead. The said Director is back to Dhaka after retirement from ESCAP and is still pushing for the Benapole-Tamabil route.
Bangladesh showed interest in Dhaka-Chittagong-Cox's Bazar-Yangon route. Myanmar was also interested in this proposal. The government of Bangladesh will have to present this proposal jointly with Myanmar. India reportedly has been influencing Myanmar to accept the ESCAP proposal. But it now appears that government has decided to join the project on the basis of India-to-India route.
They are saying that Bangladesh will be isolated if they do not join the project. But the issue is not about joining the project. The real problem lies in choosing the alignment. BNP preferred the Dhaka-Yangon route whereas this government is going for the Benapole-Tamabil route.
BNP did not join the Asian Highway as per ESCAP proposal as they were not willing to provide transit to India. Giving transit to India will be a major concession. Bangladesh must get equivalent concession from India. Let India say that they will return south Talpatty in return for the transit. Granting of transit to India without commensurate benefit will amount to betrayal of the cause of Bangladesh. It is necessary to go for hard bargaining in this case.
Bangladesh situation was not unique in not accepting the ESCAP proposal. The Philippines has not yet accepted the proposal. Because the project may not be beneficial for a country consisting of many islands. Singapore has reservation about road link with Malaysia. Turkomenistan has problems with the neighbouring countries. North Korea has connectivity problem. Therefore, much remains to be done before the Asian Highway project can be completed. Many issues remain unresolved.
The logical thing is that this road project should enter a particular country in one place and there will be an exit in another point. In this case, the road enters India twice. Normally the route is to start from Delhi and reach Dhaka. From Dhaka it should proceed to Yangon and then connect Bangkok. This is how the route will connect Europe. There is no reason why ESCAP will not buy this idea. They have to be convinced along this line.
It is often claimed that there is great prospect of cooperation between Bangladesh and the north eastern states of India. These states are less developed compared to the other states of India. It is true that our products have great demand in those states. But Bangladeshi products cannot move to these places unless India applies a special trade regime for states.
But the central government of India will never do this. On the other hand, if transit is allowed, the requirements of those states will be met by transporting goods from the rest of India thereby eliminating the prospect of market for Bangladeshi goods in the north eastern states of India. This will be a real loss for Bangladesh.
There was a newspaper report recently that the future of the Padma bridge will depend on giving transit to India. The World Bank and Asian Development Bank (ADB) may not provide funding for the bridge project unless transit is given to India. But this report is not likely to be true. Donor agencies cannot put pressure on Bangladesh for giving transit to India.
This is an issue to be decided between India and Bangladesh. At one stage, an idea was floated that investors may not come to Bangladesh if transit is not granted to India. This is how the matter is played in the media. Interested quarters float many ideas in support of their target.
It may not be wise for the government to proceed unilaterally on this issue which is sensitive. There may be political risks involved in the matter. While there is no disagreement on joining the Asian Highway project, the choice of route is the bone of contention. The debate is on selecting the most appropriate and beneficial route for Bangladesh. A suggestion has been made to arrange a referendum on this controversial issue.
The Tariff Commission has made a good proposal to the government. Their suggestion is to conduct a cost-benefit analysis of transit covering economic, social and political issues, prior to granting transit facility to India. According to them, a multi-dimensional approach to the issue of transit appears to be realistic.
Five major issues such as conceptualisation of transit, benefit of transit, infrastructural requirement and costs involved for providing transit and requirement for customs and other facilities for border agencies need to be addressed clearly before taking a decision. It is hoped that government will take a comprehensive view of the issue before taking a decision.