Indo-Bangladesh relations must not become a one-way street
October 16, 2010 00:00:00
Actress Mousumi inaugurating the first showroom of international attire brand 'Famkam' on Tejgaon-Gulshan link road in the city Thursday. Managing Director of Famkam FM Kabir Mohiuddin, Chairman of Apparel Twenty One Lutfa Mohiuddin and Directors of Lithi
When Bangladesh's Prime Minister (PM) travelled to India last year, there was a great deal of enthusiasm noted among wishers of improved Indo-Bangladesh relations in both countries. To some extent, it has been not wrong to assume that mind-sets have been at work in both India and Bangladesh that frustrated greater or better Indo-Bangladesh relations. Think tanks in Bangladesh expressed their opinion that Indians today or the Indian leadership happen to be far different from the seventies with a more generous and liberal outlook. Indian people and their leaders have realized the very great gains to come to India from relenting to well intentioned suggestions from neighbouring countries. The realizations could lead to situations where there would be collective as well as individual gains for the South Asian neighbours of India including specially Bangladesh but India might gain more in proportionate terms, according to these think tankers.
Thus, the PM's trip to India and signing of an accord with the hosts that paved the way for India's getting of formal access to its landlocked north eastern states through land corridors in Bangladesh, were seen as acts of wisdom in the changed context of the mentality of the Indian leaders that would mean the mutual benefit of both countries. India would be happy to see its long cherished goal of access to the north eastern states fulfilled. Indian economy and businesses would be mightily helped from cost-efficient transportation of goods to these states. Bangladesh in turn expected to earn money in exchange for allowing this access to India.
India was quick to make good use of the concession rather cheaply. Its goods are already travelling through corridors and transportation facilities offered by Bangladesh. Furthermore, a loan from an Indian bank is helping Bangladesh to upgrade its transportation related infrastructures. The public in Bangladesh was told that the loan would enable massive upgradation of transportation related infrastructures in Bangladesh. But from a closer look, it should become clear that mainly transportation networks to selectively facilitate travel of Indian goods through Bangladesh would be mainly improved under this loan facility. Of course, Bangladesh will also use these facilities but its use would be far less than India's as most of the time these transportation networks would remain engaged in the haulage of Indian cargoes. But the Indian bank would recover with interest a far greater amount from Bangladesh than it had given even in the medium term. Besides, the contracted terms of the loan would ensure the maximum use of Indian technical assistance and consultancy for the projects to be financed by the loan. Therefore, it should be obvious that the loan was arranged and extended for the express purpose of benefiting India. Bangladesh is found to be a sucker from a dispassionate analysis of this deal.
What little earning Bangladesh expected from allowing the transit facility, the same has also become very uncertain from Indian insistence that Bangladesh authorities should waive these transshipment fees. Indian businesses and government are expected to make enormous saving of resources from getting and maintaining the access. The previous mode of sending goods to their land locked states through the much longer and difficult Shiliguri corridor in north-eastern India, was not only very time consuming but the same involve several times the costs of sending the goods through Bangladesh. Therefore, Indian businesses and the Indian economy as a whole are expected to reap very great profits and economic dividends respectively from the use of the Bangladesh corridors. But in exchange of such a facility, Indian authorities seem not to be prepared even to pay peanuts to Bangladesh.
Soon after signing of the transit agreement, Indian government asked Bangladesh government to waive transshipment fees. Bangladesh government must have first thought that this proposal was only a transient one and would be withdrawn after further talks. But the Indian pressure for the waiver remains consistent and has even hardened. Recently, Bangladesh authorities had to stop some Indian freight at the border for their refusal to pay the transshipment fee. Our foreign ministry had to sit with Indian diplomats stationed in Dhaka to sort out the immediate problem. But Indian authorities appear adamant in their insistence that Bangladesh must waive the transshipment fees. The issue, therefore, is causing some tensions in their bilateral relationships.
From the present rate of shipment, Bangladesh stands to earn some 1-2 billion Taka only as transshipment fee fixed by it. The amount is a pittance when contrasted to the total budgetary allocations of some 1,321.7 billion Taka for Bangladesh in the current fiscal year. The revenue budget or the projected revenue earnings of Bangladesh in the current fiscal year is some 926 billion Taka. Thus, whatever Bangladesh may get as annual transshipment fees even if India cooperates is nothing significant. But Bangladesh authorities are finding it an uphill task to collect even this very small or token amount from India whereas they have already conceded to a major Indian proposal from which the Indians would make very great gains in all respects.
From the experience of dealing with India on different issues over the last thirty-nine years, government in Bangladesh was expected to be far more prudent and realistic in signing the transit agreement after ensuring the country's best interests. It should have been written in the agreement that India would pay transshipment fees to Bangladesh in return for access and even the fees for transshipment should have been specified. The specified fees also needed to be much higher than the present ones. If these issues were sorted out prior to signing the agreement and the agreed document reflected the same to the satisfaction of Bangladesh, then it would not be in such a stressful or highly disadvantageous position-- as now-- of contracting an obligation and then belatedly moving for protecting its own interests under it.
It was likely that India would consent to signing such an agreement with Bangladesh given its desperation to find a better access to north-eastern India. But the opportunity for Bangladesh to sign a transit agreement also favourable to it, was lost from meekness and the unnecessary over eagerness to please India.
But Indian leaders must realize that unless they are seen to be fair or reasonable in their dealings with Bangladesh , whatever temporary advantages they are getting or will get, stand to be under serious risks from people's disillusionment in this country in the longer run. If they wish to retain their advantages vis-à-vis Bangladesh, then they have no other option than practicing reciprocity in bilateral relations.