China-Bangladesh economic relationships
Friday, 19 September 2008
China for all practical purposes is an economic superpower today and Bangladesh should consider itself fortunate to have such a powerful economic giant so close to its borders. It is also noted that the People's Republic of China has been traditionally a great friend of Bangladesh and concrete evidences are there of its friendship in this country. The friendship bridges that have already been built by China in Bangladesh must be recognized gratefully as a major contribution to its infrastructural or economic development. Chinese assistance in various other fields have been received by Bangladesh which have proved to be beneficial for its economy.
It is in this backdrop that the Chief Adviser (CA), Dr Fakhruddin Ahmed, is undertaking an official trip to China at the invitation of the Chinese government. He has had significant talks in China that led to several agreements. Under the terms of one such accord, China would extend market access to a number of Bangladeshi products under special preference with a view to narrowing the trade imbalance between the two countries which is in the favour of the former and understandably so as a far stronger economic entity. It should be realized that though Bangladesh's exports to China are far smaller than its imports, this only reflects the economic reality of Bangladesh as a far weaker entity in terms of competitiveness to successfully deliver to the Chinese markets. But Bangladesh gains from procuring a great deal of raw materials, intermediate products and finished products from China at significantly lower costs compared to other sources. Now, China has offered to extend special terms to ease the entry of some Bangladesh products to its market. This needs to be seen as model behaviour by an economic superpower in relation to a far weaker neighbour in the economic sense.
China has also reiterated, during the visit by the Chief Adviser, its earlier offer to help in the establishment of a nuclear power plant in Bangladesh, to set up two more bridges, to provide assistance for building of roads through Myanmar that would facilitate the dispatch of goods to and fro between Bangladesh and China, cooperation with Bangladesh in the field of agricultural research and assistance to its pharmaceutical sector. Thus, the tally of economic benefits to accrue to Bangladesh from the visit is not a small one but considerable by any measure. The pledges of economic assistance to Bangladesh that have been given, cover its infrastructures, trade, industry and agriculture. Bangladesh can, indeed, reap the gains from the same provided it now follows-up energetically with China in materializing these projects at the fastest. After all, the Chinese assistance can be channeled only after preparatory ground works are done by the authorities in Bangladesh to receive the same.
For example, the nuclear power plant project is of great importance for Bangladesh in its present power starved conditions. The building of such a plant has been on the cards for more than thirty-six years at Ruppur since the Pakistani days. Even land was acquired for the purpose and buildings were constructed to accommodate employees and others. But these remain in disuse with no progress in the project even though China pledged to give full support to the construction and operation for the Ruppur plant only some years ago when a former Prime Minister from this country visited China.
Thus, the government in Bangladesh will have to show real zest in utilizing these promises of economic assistance from China. It does no good if substantial aid and assistance are put into the pipeline and then the same get wasted or remain not utilized for the characteristic sloth of the bureaucracy here in doing preparatory works in time for aid utilization. All concerned would express the hope that government in Bangladesh this time will show far greater activism in making good and timely use of the promised assistance from its economic superpower neighbour in the north. Bangladesh needs to deepen and hasten economic relationships with China for the flourishment of its economy.
It is in this backdrop that the Chief Adviser (CA), Dr Fakhruddin Ahmed, is undertaking an official trip to China at the invitation of the Chinese government. He has had significant talks in China that led to several agreements. Under the terms of one such accord, China would extend market access to a number of Bangladeshi products under special preference with a view to narrowing the trade imbalance between the two countries which is in the favour of the former and understandably so as a far stronger economic entity. It should be realized that though Bangladesh's exports to China are far smaller than its imports, this only reflects the economic reality of Bangladesh as a far weaker entity in terms of competitiveness to successfully deliver to the Chinese markets. But Bangladesh gains from procuring a great deal of raw materials, intermediate products and finished products from China at significantly lower costs compared to other sources. Now, China has offered to extend special terms to ease the entry of some Bangladesh products to its market. This needs to be seen as model behaviour by an economic superpower in relation to a far weaker neighbour in the economic sense.
China has also reiterated, during the visit by the Chief Adviser, its earlier offer to help in the establishment of a nuclear power plant in Bangladesh, to set up two more bridges, to provide assistance for building of roads through Myanmar that would facilitate the dispatch of goods to and fro between Bangladesh and China, cooperation with Bangladesh in the field of agricultural research and assistance to its pharmaceutical sector. Thus, the tally of economic benefits to accrue to Bangladesh from the visit is not a small one but considerable by any measure. The pledges of economic assistance to Bangladesh that have been given, cover its infrastructures, trade, industry and agriculture. Bangladesh can, indeed, reap the gains from the same provided it now follows-up energetically with China in materializing these projects at the fastest. After all, the Chinese assistance can be channeled only after preparatory ground works are done by the authorities in Bangladesh to receive the same.
For example, the nuclear power plant project is of great importance for Bangladesh in its present power starved conditions. The building of such a plant has been on the cards for more than thirty-six years at Ruppur since the Pakistani days. Even land was acquired for the purpose and buildings were constructed to accommodate employees and others. But these remain in disuse with no progress in the project even though China pledged to give full support to the construction and operation for the Ruppur plant only some years ago when a former Prime Minister from this country visited China.
Thus, the government in Bangladesh will have to show real zest in utilizing these promises of economic assistance from China. It does no good if substantial aid and assistance are put into the pipeline and then the same get wasted or remain not utilized for the characteristic sloth of the bureaucracy here in doing preparatory works in time for aid utilization. All concerned would express the hope that government in Bangladesh this time will show far greater activism in making good and timely use of the promised assistance from its economic superpower neighbour in the north. Bangladesh needs to deepen and hasten economic relationships with China for the flourishment of its economy.