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Dhaka should reap benefits of granting India transit rights
M.I. Ali
HOLIDAY - August 3, 2007
An Indian junior minister, during a recent trip to Bangladesh, reiterated India's desire for securing transit rights through Bangladesh to its north-eastern territories. As in the past, this time too the response to the request was not positive, with Bangladesh arguing that its request for transit rights to Nepal and Bhutan has not been honoured by India. India does not see the need for reciprocity as granting Bangladesh such rights will loosen the Indian stranglehold over these two landlocked countries and India will not be able to choke essential supplies if they do not tow the Indian line.
India has made it clear time and again that it does not believe in multilateral relations among its neighbours and all issues involving it must be dealt with on a bilateral basis. The best example of the Indian policy is SAARC, which is probably the most emasculated and ineffective regional forum in the world.
Bangladesh, on the other hand, does not have any hegemonic aspirations regarding its neighbours. Therefore, granting India the transit rights will not have equal political importance, except for some people in Bangladesh who believe that it may jeopardise the country's security. For Bangladesh, the transit issue should not be addressed from a political point of view as it is most unlikely that India would use any Bangladesh route to transport unauthorised cargo like weapons and ammunition to arm its forces in the northeast.
As for security threats to this country, India does not need transit rights for carrying out mischief here. There are lots of other options open to it. On the other hand, giving India the transit rights will help Bangladesh improve its much-needed transport infrastructure and give a boost to its economy. India being the blue eyed boy of the West, all multilateral development and financial organisations are going to fall over each other to develop the infrastructure in this country to facilitate the implementation of the agreement.
The transit issue for Bangladesh is an economic one and should be evaluated on that basis. If giving transit to India is profitable for Bangladesh then it should be given by all means and we should extract the maximum benefit from it. Due consideration should be given to the fact that roads in Bangladesh are already overcrowded with our own traffic. Therefore, a completely new road system should be developed to accommodate the Indian traffic that will transit through Bangladesh.
However, as this is the most densely populated country in the world and the new road system will displace a huge number of people who, in no way, can be resettled elsewhere in Bangladesh' after all, land is extremely scarce here, the only way this problem can be resolved in the short run is India agreeing to settle them temporarily in Arunachal or Assam, where unpopulated land is abundant, until industrial jobs are created for them in Bangladesh for their return. The population density in these states is very low and infusion of the temporary settlers, who are farmers, will help boost their agriculture. Bangladesh can import these excess agricultural produces. Here, too, India can help Bangladesh by encouraging its industrialists to invest in Bangladesh. The sooner the jobs are created the sooner the displaced persons can return to Bangladesh.
Once the transit protocol is operational, raw materials can be brought from India, processed in Bangladesh using cheap energy and labour, and exported abroad, including India. Unlike India, where the strong rupee is making exports expensive, Bangladesh has a stable currency and a disciplined labour force that make it a better platform for setting up industries than India. Indian entrepreneurs will definitely seize the opportunity if conditions are conducive here.
India should also be allowed to use the Mongla Port to facilitate international trade of eastern India, including Bihar and West Bengal. The Chittagong Port should be reserved for Bangladesh as it is currently meeting the most of this country's needs and does not have excess capacity to meet India's requirements. Mongla should be developed as a regional entrepot and the cost of such development should be borne by India as a gift to Bangladesh, with no strings attached. Unfortunately, Mongla has a serious situation problem that must also be addressed by India. This can be done through the release of an adequate amount of water from Farakka Barrage to flush Mongla Port of silt to keep it navigable throughout the year. India should stop diverting the Ganges waters to central India, if it considers the use of Mongla Port important to its economy, and make that water available for flushing Mongla Port.
Many economists and logistics experts have identified Bangladesh as the ideal transportation hub for the north-eastern India and south-western China. However, when Bangladesh was punched out of the eastern region during the 1947 partition of India, the economy of the region was upset. Many political and economic pundits had predicted that time that this country would fail to stand on its own and would have to revert to status quo within a short period. The opposite has happened and now the economic stability of the entire eastern India is at stake because of the disruption of the traditional lines of communication. These lines were further disrupted following the 1962 Sino-Indian war when cross-boarder movements became restricted. To become economically viable, the region has to be integrated as a near-homogenous economic unit once again. This is in the interest of both India and Bangladesh, but more so in India's than Bangladesh's.
M.I. Ali
HOLIDAY - August 3, 2007
An Indian junior minister, during a recent trip to Bangladesh, reiterated India's desire for securing transit rights through Bangladesh to its north-eastern territories. As in the past, this time too the response to the request was not positive, with Bangladesh arguing that its request for transit rights to Nepal and Bhutan has not been honoured by India. India does not see the need for reciprocity as granting Bangladesh such rights will loosen the Indian stranglehold over these two landlocked countries and India will not be able to choke essential supplies if they do not tow the Indian line.
India has made it clear time and again that it does not believe in multilateral relations among its neighbours and all issues involving it must be dealt with on a bilateral basis. The best example of the Indian policy is SAARC, which is probably the most emasculated and ineffective regional forum in the world.
Bangladesh, on the other hand, does not have any hegemonic aspirations regarding its neighbours. Therefore, granting India the transit rights will not have equal political importance, except for some people in Bangladesh who believe that it may jeopardise the country's security. For Bangladesh, the transit issue should not be addressed from a political point of view as it is most unlikely that India would use any Bangladesh route to transport unauthorised cargo like weapons and ammunition to arm its forces in the northeast.
As for security threats to this country, India does not need transit rights for carrying out mischief here. There are lots of other options open to it. On the other hand, giving India the transit rights will help Bangladesh improve its much-needed transport infrastructure and give a boost to its economy. India being the blue eyed boy of the West, all multilateral development and financial organisations are going to fall over each other to develop the infrastructure in this country to facilitate the implementation of the agreement.
The transit issue for Bangladesh is an economic one and should be evaluated on that basis. If giving transit to India is profitable for Bangladesh then it should be given by all means and we should extract the maximum benefit from it. Due consideration should be given to the fact that roads in Bangladesh are already overcrowded with our own traffic. Therefore, a completely new road system should be developed to accommodate the Indian traffic that will transit through Bangladesh.
However, as this is the most densely populated country in the world and the new road system will displace a huge number of people who, in no way, can be resettled elsewhere in Bangladesh' after all, land is extremely scarce here, the only way this problem can be resolved in the short run is India agreeing to settle them temporarily in Arunachal or Assam, where unpopulated land is abundant, until industrial jobs are created for them in Bangladesh for their return. The population density in these states is very low and infusion of the temporary settlers, who are farmers, will help boost their agriculture. Bangladesh can import these excess agricultural produces. Here, too, India can help Bangladesh by encouraging its industrialists to invest in Bangladesh. The sooner the jobs are created the sooner the displaced persons can return to Bangladesh.
Once the transit protocol is operational, raw materials can be brought from India, processed in Bangladesh using cheap energy and labour, and exported abroad, including India. Unlike India, where the strong rupee is making exports expensive, Bangladesh has a stable currency and a disciplined labour force that make it a better platform for setting up industries than India. Indian entrepreneurs will definitely seize the opportunity if conditions are conducive here.
India should also be allowed to use the Mongla Port to facilitate international trade of eastern India, including Bihar and West Bengal. The Chittagong Port should be reserved for Bangladesh as it is currently meeting the most of this country's needs and does not have excess capacity to meet India's requirements. Mongla should be developed as a regional entrepot and the cost of such development should be borne by India as a gift to Bangladesh, with no strings attached. Unfortunately, Mongla has a serious situation problem that must also be addressed by India. This can be done through the release of an adequate amount of water from Farakka Barrage to flush Mongla Port of silt to keep it navigable throughout the year. India should stop diverting the Ganges waters to central India, if it considers the use of Mongla Port important to its economy, and make that water available for flushing Mongla Port.
Many economists and logistics experts have identified Bangladesh as the ideal transportation hub for the north-eastern India and south-western China. However, when Bangladesh was punched out of the eastern region during the 1947 partition of India, the economy of the region was upset. Many political and economic pundits had predicted that time that this country would fail to stand on its own and would have to revert to status quo within a short period. The opposite has happened and now the economic stability of the entire eastern India is at stake because of the disruption of the traditional lines of communication. These lines were further disrupted following the 1962 Sino-Indian war when cross-boarder movements became restricted. To become economically viable, the region has to be integrated as a near-homogenous economic unit once again. This is in the interest of both India and Bangladesh, but more so in India's than Bangladesh's.