Friendly foreign policy: The catalyst for Bangladesh’s economic development

Since its inception, Bangladesh's government has followed a foreign policy based on the notion of "friendship to all, malice towards none" -- which Bangabandhu Sheikh Mujibur Rahman, the country's founding father, ingrained in the 1972 Constitution. Till today, the country carries on upholding this diplomatic concept to promote economic development and progress.

Bangladesh has negotiated difficult international ties by deft diplomatic maneuvers, guaranteeing friendly relations with world heavyweights like China and India, and fostering economic growth. With a foreign policy that gives economic diplomacy priority, Bangladesh has established itself as a major actor on the regional and international stage. The strategic ties developed with superpowers and neighbours have resulted in significant economic gains, therefore supporting the national developing path.

Bangladesh-China

Strong economic cooperation defines Bangladesh's relationship with China. China has made significant investments in Bangladesh’s mega projects including power plants, and infrastructure projects like the Padma Bridge and Payra Seaport under the Belt and Road Initiative (BRI). Along with improving Bangladesh's infrastructure, these projects have generated job opportunities and consequently stimulated economic development. Crucially important for ongoing economic development, major infrastructure projects sponsored by Chinese funding have transformed Bangladesh’s energy and transportation sectors.

Trade between Bangladesh and China has experienced a gradual increase. With bilateral trade totalling $24 billion, China is among Bangladesh's biggest trade partners. Technology transfer made possible by cooperation with Chinese companies has raised local capacities in many different fields.

Bangladesh-India

Bangladesh's economic growth has certainly been supported by its diplomatic connection with India -- which is characterized by historical, cultural, and economic links. From commerce and investment to security and cultural interaction, the two nations have participated in thorough collaboration covering all aspects.

Among the markets, Bangladesh’s exports to India are among the biggest ones. Different trade agreements, the two nations have signed, have greatly elevated bilateral trade volume though not at a satisfactory level.

Energy security, which is vital for industrial development, has been strengthened in Bangladesh by sharing energy-related projects. Projects improving regional connectivity, like rail and road connections, have helped trade and products flow more freely, which has boosted Bangladesh's economy.

Projects improving regional connectivity, like rail and road connections, have helped trade and products flow more freely

Trade diversity: EU and Middle East

Under Prime Minister Sheikh Hasina, Bangladesh's foreign policy has focused on diversifying economic alliances to prevent too close a reliance on any one nation. Engaging several nations and international organizations under this approach has helped to achieve trade agreements supporting sustainable development as well as investments and aid.

With the Generalized System of Preferences (GSP), Bangladeshi goods have duty-free access to European markets, hence the EU is a major trading partner. A major source of remittances, labour exports to the Middle East have helped Bangladesh's economy to flourish. Good working conditions and pay for Bangladeshi employees have been guaranteed by diplomatic efforts.

International aid

Bangladesh has skillfully applied initiatives for foreign aid and development to improve its economic future. The government's foreign policy has made it easier to get financing and technical help from groups like the World Bank, International Monetary Fund (IMF), and Asian Development Bank (ADB).

Many initiatives aimed at reducing poverty have been supported by international aid, therefore raising living standards and boosting local businesses. The investments in education and healthcare have helped build human capital which is considered to be the foundation of economic prosperity. Infrastructure developments have been funded by grants and loans from foreign companies, thus improving economic connectedness and efficiency.

Achieving a smart balance and prioritizing development

Although Bangladesh's foreign policy has brought it significant economic gains, it has to constantly negotiate geopolitical issues, particularly between China and India. Striking a balance between two ties calls for smart diplomacy so Bangladesh may maximize advantages from both without becoming caught in regional rivalries. Bangladesh's foreign policy follows its dedication to the United Nations Sustainable Development Goals (SDGs).

Maintaining the priority of equitable and sustainable economic development calls for ongoing international collaboration and respect for the norms of other countries. The direction of Bangladesh's economic growth in the future is much dependent on industrial and technical progress. Maintaining economic growth will depend critically on strengthening diplomatic connections with technologically developed countries and supporting innovation and research cooperation.

By use of strategic economic diplomacy, Bangladesh has effectively negotiated challenging foreign ties, guaranteed investments, improved trade, and promoted sustainable development. Bangladesh's foreign policy will remain a major determinant of its economic destiny as the country develops, thereby guaranteeing that it stays a vibrant and forward-looking actor on the international scene.

Writer: Dr Pranab Kumar Panday; Professor in the Department of Public Administration at the University of Rajshahi.

Courtesy: Dhaka Tribune