Shifting priorities towards East

There has been a discreet shift in the government's foreign policy with an eastward bias.
Bangladesh borders India and Myanmar on three sides except the south with the Bay of Bengal. India surrounds Bangladesh from three sides and the position of Bangladesh is like a flannel from the Bay of Bengal. Moreover, Bangladesh is wedged between two rising Asian giants-- India and China. It is a challenge for Bangladesh as to how to maintain a delicate balance of relations with China and India. China and Japan will be central to pro-east policy, but considering its geographical location, Myanmar is no doubt important.  
The strategic location of Bangladesh at the juncture of two important regions of Asia, namely-- South Asia and South East Asia, has opened a window of opportunity in terms of trans-border commodity exchange, investment and communications. Improving international communication has, of late, brought the issue of Asian Highway and Trans Asian railway network to the fore. Bangladesh can make the best use of sub-regional, regional and international cooperation to further develop its economy.
Apart from increasing income, China, Japan and Korea have two other special features which have distinguished them from developing countries like Bangladesh. Firstly, because of their strong export trade, these countries have large current account surplus. Their foreign exchange reserve has been swelling with China topping the list in foreign exchange reserves with a reserve of $ 3.9 trillions. Japan is next with a reserve of $ 1.3 trillions and Korea is eighth with $368 billions. Such robust foreign exchange reserves demonstrate the economic strength of these countries. Secondly, all the three countries have vast knowledge and experience in technology, design and engineering of infrastructure. Their technological efficiency is comparable with that of the most advanced countries.
Because of surplus resources, these countries can be important funding sources for infrastructure projects in developing countries. Japan has remarkable efficiency in town planning. Bangladesh can take expert opinion and technological help from Japan and make Dhaka a more productive city by efficient town planning and improved transportation system. Bangladesh trade relations with South Asia and South East Asia have been at its highest since 2000. Nearly 40 per cent of its total trade is transacted with these two regions. South East Asia is fast becoming a principal source of our imports. Normally, most of Bangladesh's imports come from China followed by India. This means, our exports are characteristically west-bound and imports east-bound.
It is clear that an eastward business policy is essential for Bangladesh. Bangladesh has successfully opened and expanded its export market in the USA and the EU but there is little scope for further expansion. But since increasing exports is at the core of the country's development agenda, it has to move eastward -- towards China, Japan and Korea. In order to diversify their investment activities, these countries are also looking for investment opportunities in developing countries. With its export success in RMG, Bangladesh can invite these countries to invest here. In view of its convenient location advantage, Bangladesh can be an attractive entry point for the West and East Asia's businesses and can eventually provide an attractive passage for Japan, Korea and China to the south and central Asia to the west. The possibilities should be explored judiciously.
Due to its land and infrastructural limitations, the growth rate of Bangladesh has remained around 6 per cent. Eastward policy is one good way to overcome infrastructural limitations. An eastward policy is also consistent with Bangladesh's development requirements. The policy should be implemented with highest political support alongside correct planning, long term efforts and sustained monitoring. Few techniques to make eastward policy successful can be:
1. to attract foreign investment with well formulated policy of land acquisition and development. The problems regarding land transfer in Korean EPZ, Chittagong must be solved quickly.
2. to analyze carefully the market, commodities and commodity prices, status and ability to import; and devising strategies for increased export to China, Japan and Korea;
3. to evaluate prospective trade and export, possibility of trade agreements with various countries;  
4. to encourage turnkey system in order to avoid delay in implementation of infrastructural facilities and remove purchase related  corruption.     
In view of a probable bias towards China, India and USA may raise some sensitive political issues, which will have to be overcome through judicious trade policies. India and USA are the two largest business partners of China and Bangladesh will have to adopt a policy of economic cooperation with them in the interest of its economic development. We shall have to consider four measures for an effective eastward policy:
1. trade expansion
2. expansion of foreign investment
3. expansion of regional communication
4. infrastructure projects to remove communication limitations.
Next to the RMG sector, Bangladesh has successfully developed its leather and shoe industries. If, side by side, shipbuilding, electronics, bicycle industries etc., can be developed and if Japanese agro-industries come forward, the country can move ahead faster and create new markets. Many Japanese companies helped Korea and China with technology, particularly on automobile and electronics which contributed significantly to their economic development. During the last decade, South Korea earned $20 billions by exporting Samsung mobile phones and accessories only, which is equivalent to our total RMG exports.
While visiting Bangladesh recently, the Japanese Prime Minister Shinzo Abe termed Bangladesh as a country of possibilities. Japan will help Bangladesh to capitalise on these possibilities, particularly the Bay of Bengal industrial belt, known as the Big B. Bangladesh can consolidate its economic relations with Japan by removing the problems faced by the Japanese companies, particularly the problems relating to land tax, power supply and infrastructure. In addition, we shall have to conduct studies to find out which countries are interested to invest here. If tariff on our products is reduced, it can increase exports of those and thus help expand our market.
Economic security is a priority and is subject to the level of economic development. To advance economic development, growth of export, flow of foreign investment, increase of official development assistance (ODA), access to the external market for Bangladeshi goods, transfer of technology from industrialised countries and human resources development are some of the priorities to be addressed. This implies that Bangladesh has to maintain close relations with western countries for their assistance and support and proceed eastward to achieve further breakthrough in the eastern markets. Eastward policy should be viewed from a balanced relationship with the East as well as the West.
[email protected]