Speech of
H.E. Mr. Tariq A. Karin, High Commissioner of Bangladesh to
India at conference: "From Land-locked to Land-linked; Northeast
India in BIMSTEC"
Shillong, 8-10 April 2010
*****
Respected Chairman
Excellencies, my Colleagues and friends from Myanmar and Thailand
Illustrious panelists
Distinguished guests
Ladies and gentlemen
First of all let me congratulate the Ministry of External Affairs, the Jadavpur
University and the CII for jointly organizing this conference aimed at
exploring the opportunities presented by BIMSTEC not only for India's
northeastern states, but also for the BIMSTEC sub- region as a whole. This
conference will allow us all to take stock of the initiatives that have been
undertaken through the BIMSTEC over the years and how we can exploit
these opportunities for mutual gain, prosperity and development. Having
been a primary culprit in the mid-nineties in having pushed for adoption of
the concept of sub-regional cooperation within SAARC that was ultimately
adopted by the SAARC summit in 1997 and led to the formation first of the
South Asian Growth Quadrangle (SAGQ) and then of BIMSTEC, I look on
BIMSTEC with some fond nostalgia and a sense of satisfaction that I did,
after all, do some things right in my previous incarnation.
I thank the organizers for honouring me so by requesting me to be one of
the keynote speakers for this session which is supposed to explore the
opportunities available to the States of the northeast for export within the
BIMSTEC region. I cannot, of course, presume to give advice to the northeastern states of India on what they should market, how and to whom. That
is a matter that is best left to their own better judgment. I will, rather, focus
my address on how Bangladesh can help itself by helping the northeast
achieve its potential, by taking advantage of the opportunities of available
linkages and by developing new ones, that will extend and connect to and
Thailand to our east.
Before I begin I must mention how happy my wife and I are to be back in
this lovely city of Shillong which we have had the privilege to visit just a few
weeks ago. Following my arrival in New Delhi to join my post as High
Commissioner in early August last year, my time and energies were largely
consumed doing the homework and preparing the grounds for the first visit
of Prime Minister Sheikh Hasina to India in this her second term in office.
That visit was, by all accounts, not merely a very successful visit, but a
historic and game-changing visit. Following that landmark visit, the two
states that I chose to visit first, as a part of my familiarization tours in India,
were Meghalaya and Assam. During that visit I had the opportunity of
meeting the Governor of Assam, the Chief Ministers of Assam and
Meghalaya and some senior members of their respective Cabinets, business
leaders, academics, media persons, and people from all walks of life. My wife
and I were deeply moved, indeed overwhelmed, by the spontaneity of
warmth and goodwill with which we were greeted by everyone, everywhere. I
left the states convinced that we must do more to seize on this huge capital
of goodwill and leverage it for the greater benefit of the peoples of
Bangladesh and Meghalaya, and indeed the entire northeast region of India
and for the BIMSTEC partners as a whole.
I do believe that only when Bangladesh and its neighbours in the Indian
northeast work together, hand-in-hand, to meaningfully and fully realize
their latent, but so far untapped potentials, will India's •'look East" policy
truly acquire substance and come of age. The regional political stars have
come into a rare alignment with the elections in Bangladesh and India in
2008/2009. This phenomenon opens up for all of us gathered here a unique
window of opportunity. It is in this context that I think this conference is
very timely. It will give us all the chance to learn more about new ideas and
opportunities that have opened up, and take them on board as we
endeavour to reshape our respective destinies. As we revive lost linkages and
explore once again rediscovered friendships, we cannot escape the reality
that we are linked to each other by a shared history and cultural strands
that form the warp and the weave of a richly hued and complexly patterned
tapestry.
Importance of BIMSTEC for the development of the region
Ladies and gentlemen,
Though we are all familiar with the activities of BIMSTEC, I would like to
highlight a few points about the importance of BIMSTEC as a sub-regional
organization and how it can play an important role in the success of our
various initiatives to develop the region.
Compared to other regional organizations, BIMSTEC, relatively, is still in its
infancy. It has only completed 14 years since its inception in 1997 with a
much smaller membership of four countries only at that time, namely:
Bangladesh, India, Sri Lanka and Thailand. They were joined by Myanmar
six months later in December 1997. In 2004 the Member States welcomed
Bhutan and Nepal into its fold which gave a complete shape to the
organization which was conceived to link two of the world's most populous
and rapidly developing sub-regions, namely South Asia and South East
Asia. BIMSTEC has over the years sought to identify and strengthen the
synergies existing among the member states and to identify specific sectors
for targeted projects for rapid development. The sectors identified for
cooperation by the members are, Trade & Investment, Energy, Technology,
Tourism, Fisheries, Agriculture, Cultural Cooperation, Public Health,
People-to-People Contact, Poverty Alleviation, Environment & Disaster
Management,
Transport
&
Communication,
Counter
Terrorism
&
Transnational Crime, and Climate Change.
I will briefly summarize the developments in two sectors of BIMSTEC,
namely trade and commerce, and transport, since both these sectors are
immensely relevant for the topic of our conference today.
The Member states of BIMSTEC have been negotiating under a Framework
Agreement for finalizing the subsidiary Agreements on Trade in Goods,
Trade in Services, and Investment. A Trade Negotiating Committee (TNC)
formed in this regard has met several times and in the last meeting of the
TNC, held last year, the members finalized the BIMSTEC Free Trade
Agreement on Trade in Goods. I am happy to note that we have finalized the
size of the Negative list, Fast track list, List of Normal Track reduction and
list of Normal track elimination. The meeting also decided that the dates of
the first tariff reduction of the Fast Track would be 1 July 2010 and for the
Normal Track it would be 1 July 2011. I understand that the next meeting
of the TNC is to be held in India later this month and it is expected to
finalize the Schedules under the Agreement in Trade in Goods.
The achievements under the transport sector have been equally impressive
and important. The BIMSTEC Transport Infrastructure and Logistics Study
(BTILS), undertaken with ADB technical assistance is designed to help
promote inter-regional and intra-regional integration by increasing trade
and travel among the BIMSTEC countries. Let me recapitulate the key
objectives of this Study very briefly:
i.
Identification of the transport infrastructure and logistics bottlenecks in the
BIMSTEC region and their root causes;
ii.
Identification of existing policies, strategies and development plans by
various parties to address these physical and non-physical barriers;
iii.
Development of proposals for relevant and practical policies and strategies
to eliminate or mitigate these identified constraints;
iv.
Identification of the roles that various organizations should or could have in
promoting and implementing changes to the regional transport and logistics
environment; and
v.
The development of a proposed action plan for the phased introduction of
enhanced logistics in response to the changing transport environment
within BIMSTEC and in the global logistics marketplace.
A three-tier implementing mechanism has been conceived consisting
of a Ministerial conference of relevant transport ministry for policy and
decision making, Sectoral Committee on Transport for overall transport
sector coordination and integration at the technical level and Expert groups
for sub-sector technical discussion. Five experts groups have been set up,
for road development, railways, maritime, aviation and transport facilitation
and logistics.
How do we use these initiatives and exploit them for our specific needs,
particularly for our goal to re-link the northeast for the overall development
and benefit of the region?
Re-linking the disconnected linkages
Ladies and gentlemen,
For several decades now, we have had the image of the northeast of India as
an isolated community, detached from the rest of the world except for the
"Chicken's Neck" Shiliguri Corridor. In this image the Northeast has been a
sort of romanticized stereotype, a locale for exotic adventure holidays,
plagued by insurgency movements, faced with transport and logistic
barriers, culturally and ethnically separate. This picture, however, is not
just incomplete, but a travesty of the truth: it ignores that for centuries the
peoples of this region had been trading across national boundaries,
communicating with each other through the densely forested hilly terrain
and across their criss-crossing river systems, maintaining a vibrant cultural
and mosaic of separate ethnic and tribal entities that nevertheless formed a
whole that was greater than its composite parts. This picture was rent
asunder first by the Partition in 1947, and then more definitively by the iron
curtain that descended following the Indo-Pakistan war in 1965. However,
the wheels of history, and perhaps of fate, have turned full circle to offer us
a new opportunity to rediscover each other, and revive our ties of yore, once
again.
I was particularly interested to join this conference because the focus of this
conference is the opportunities for the landlocked States of Northeast India
and exploring what BIMSTEC has to offer to them and what they have to
offer to the BIMSTEC region. I would like to underscore here that because of
some recent unprecedented initiatives undertaken by the Government of
Prime Minister Sheikh Hasina, Bangladesh is in the very happy position of
being able to offer itself as a gateway to this region. We are ready to take on
our destiny as the natural bridge between two dynamically thriving regions,
that is between South and Southeast Asia. We are ready and willing to help
to reconnect not only the states of the Northeast to the rest of India, but also
enable Nepal and Bhutan to gain access to the sea, and enable India to
reach Myanmar and Thailand overland through easy terrain. Bangladesh is
eager to serve as the hub of regional linkages in all its modes - air, road, rail
and riverine. Following the momentous visit of our Prime Minister to India in
January this year, Bangladesh and India have agreed to restore the historic
linkages connecting our two countries. This momentous decision has
critically important implications for the entire BIMSTEC region. Let me
elaborate on this point.
In terms of riverine connectivity, remember, Bangladesh has numerous
rivers criss-crossing it. Traditionally, our rivers have been the arterial
system in our geographical circulatory structure. There was a time when
steamships and boats would carry people and goods from Guwahati in
Assam and Allahabad in UP to Dhaka in East Bengal. I have a dream! I
dream, that we shall reconnect these routes once again. This will lend real
substance to the term "multi-modal" that we use so incompletely today. We
have taken a bold step in this direction now. Ashuganj in Bangladesh and
Silghat in India have now been added as new ports of call under existing
riverine transit and trade arrangement between Bangladesh and India. The
addition of these new ports of call will mean that goods destined for the
northeast and beyond will be able to reach their destination much more
quickly, thus saving time and cost.
As a logical corollary to the above, we have also agreed to allow India to use
Chittagong and Mongla ports in Bangladesh, which would make such
riverine connectivity really meaningful for the region. At the same time,
Bangladesh has decided to allow Nepal and Bhutan to use Mongla and
Chittagong ports as well with transit through its territory. These ports will
facilitate seagoing access for the land-locked BIMSTEC regions with Sri
Lanka in the Southeast and Thailand in the east, and beyond.
In our geographical circulatory matrix, the railroads may be likened to the
human body's venous system. The railroads must carry the bulk of heavy
loads, particularly well suited to containerized traffic of goods. So we are
seriously engaged in and committed to reopen the old rail links in the
region which had been severed allowed to atrophy since 1965. Significantly,
the Prime Ministers of Bangladesh and India decided to make Rohanpur—
Singabad broad gauge railway link available for transit to Nepal and to the
conversion of Radhikapur-Birol railway line into broad gauge also to
facilitate trade and connectivity with Bhutan. Though some operational
details still need to be ironed out, the Maitree Express is now fully
operational connecting Dhaka with Kolkata. We are also examining the
setting up of a railway link between Akhaura and Agartala. Similar options
are being explored for reopening the railway links between Kolkata and the
northeast
through
the
northwest
of
Bangladesh.
Once
these
are
established, traveling distance and time by train to the northeast will be
considerably shortened, with benefits for the peoples of both the countries.
For Bangladesh, because of the nature of the terrain and climatic
conditions, the roads are not well suited, nor have the capacity, to bear
continuous heavy loads on larger axle vehicles. Our roads are more akin to
the human body's capillary system. While some of them may eventually
carry heavy vehicular traffic and containerized cargo (once we have
addressed the challenges of crossing mighty rivers in full floods), for the
present they must be the channels carrying goods and people from the
farthest nooks and corners of the land and connecting them with our
arterial
rivers
and
venous
railroads.
In
terms
of
extending
land
connectivity, we could also, in due course, consider the possibility of
extending the existing Dhaka-Kolkata and Dhaka-Agartala bus routes and
take them from Agartala to Shillong or Guwahati, or from Kolkata to
Shillong and Guwahati. And the West Jaintya region here in Meghalaya
can be linked by road via Mymensingh in a manner that makes Dhaka just
a few hours drive away.
But in this modern era of globalization, let us also add air connectivity to
complement and exponentially augment the more traditional modes. When I
visited Meghalaya and Assam last time, I heard loudly and clearly the
demand for direct air connectivity to Bangladesh, I imagine this will be the
resonating refrain I will hear when I visit Mizoram, Manipur, Tripura,
Arunachal Pradesh, Nagaland and Sikkim next. I intend to vigorously
pursue the possibilities of establishing new air routes from the northeast to
Dhaka and beyond.
All this opening up and establishing of new linkages will mean that the
entire matrix of connectivity within the sub-region consisting of Bangladesh,
Bhutan, Nepal and northeastern India is going to change dramatically very
soon, and open up exciting new vistas of connectivity with the BIMSTEC
partners to our east and beyond.
I have for long been a firm believer of the "bridge concept". If people are
separated by a river, very few will want to swim across to the other side,
while some will ford it by taking a boat if one is available; but if a bridge is
built, people WILL cross it, even if out of idle curiosity to begin with. Such
are great adventures of discovery started.
I believe that the BIMSTEC Transport and Logistic Study will be most
helpful for us to not only identify the traditional links that can be restored
and extended beyond what our bilateral agreements envisage, but also
guide us on how we can most effectively harness, more meaningfully, the
potential of connectivity in the region. I would urge the BIMSTEC member
states to urgently conclude the work of the Study and take up necessary
action for its early implementation.
Trade and commerce: opportunity waiting to be harnessed
Friends,
The Prime Ministers of Bangladesh and India also focused on another issue
which has the potential to significantly improve the lives of the people of
this region. The two leaders have identified that it is only by promoting
rapid growth in trade and commerce that our two countries would be able
to move forward in all the other areas that we wish to progress. Once the
peoples of the two countries begin to enjoy the benefits of unfettered trade
and commercial activity, they would be happy to accommodate each other's
concerns in all other areas. The trade imbalance in India's favour has long
been a matter of concern for Bangladesh. It is heartening for us to note that
the Indian government has responded sensitively to our concerns and has
offered some measures which, though unlikely to tilt the balance
significantly, will help to convince the people of Bangladesh that there is no
dearth of goodwill for Bangladesh in India and that it is serious in
addressing our concerns.
Some of these measures agreed to by the two Prime Ministers are of course
known to most of us gathered here today. These include: encouraging
imports from Bangladesh by India by removing tariff and non-tariff barriers
and port restrictions and facilitating movement of containerized cargo by rail
and water. India has also declared that it will provide duty-free access to
SAARC LDCs and reduce the number of items from India's negative list. A
number of measures have been taken to promote and facilitate trade
between India (particularly, its north eastern states) and Bangladesh.
Here again, I believe that B1MSTEC has an important role to play. Once the
BIMSTEC Free Trade Agreement comes into effect, the various concessions
offered under its aegis will begin to make their impact on the ground on a
wider scale. Bangladesh as well as the other countries will be able to take
advantage of the duty free schemes provided under the FTA and they will
also be able to offer better quality goods at more competitive prices. The
economic benefits to the people of the region, and resultant spin-offs, are
bound to be significant.
Investment for promotion of trade:
Ladies and Gentlemen,
The initiatives announced by the Prime Minister of Bangladesh and India for
promotion of trade were equally matched by their keenness to promote
investment in each other's countries. To this end, both Prime Ministers have
called for investors of both the countries to take advantage of the investor
friendly regimes and to invest in areas where there are mutual gains to be
made. A very positive development in this regard during the visit of the
Prime Minister of Bangladesh was the signing of an agreement between
Bharti Airtel of India and Warid Telecom in Bangladesh where Bharti has
agreed to invest upto US$ 1 billion in Bangladesh. There are so many
opportunities that the entrepreneurs from India can take advantage of, for
investing in sectors like power generation, IT & telecommunications,
textiles, pharmaceuticals, agriculture, healthcare, HRD, infrastructure,
media and entertainment, hospitality, travel and tourism sectors. We have
announced a number of measures that are aimed at making Bangladesh
one of the most foreign investor-friendly destinations. An added advantage
is that our two countries have already formalized all the institutional
mechanisms necessary to protect our investments safe, including Bilateral
Investment Promotion and Protection Agreement, and Agreement on
Avoidance of Double Taxation.
How does investment from Bangladesh to India and from India to
Bangladesh benefit the peoples of the northeast? Let me give you an
example of a unique cross border joint venture project between Bangladesh
and India. The Lafarge Company, a French company has set up, with
assistance from a consortium of countries and lending agencies, a cement
plant in Chhatak situated in the border of northeast of Bangladesh district
of Sylhet. The raw material for this plant, that is limestone and shoal are
wholly quarried from the mines across the border in Meghalaya. Thus the
mines of Meghalaya are wholly dependent on the plant in Chhatak as a
market to sell their limestone, and similarly, the cement plant is wholly
dependent on the limestone from Meghalaya. And very importantly, it
provides continuous employment to the local peoples on both sides,
generating other economic spin-offs, growth and development. The project
will have to be shut down if for any reason the supply of limestone from
Meghalaya is stopped or if for some reason there is stoppage of cement
production at the plant in Chhatak. This circle of mutually beneficial
interdependence must be sustained unbroken, so that it can act as a model
for other similar joint collaborative ventures. We can even contemplate a
replication of this model, with Thailand and Sri Lanka becoming investment
partners along with the Asian Development Bank and UNESCAP.
Other entrepreneurs can take similar advantage of the geographical
proximity of the States of the northeast and Bangladesh and consider
similar joint ventures. The raw material may be supplied from the northeast
State while the plant is set up in Bangladesh and both (as well as the wider
clientele beyond, can enjoy the benefits of the end products. Conversely,
plants can be set up in the northeast for processing raw material from
Bangladesh and the product sold in both the countries and to the larger
regional market. I firmly believe that such symbiotically interdependent joint
ventures will go a long way in dispersing the cobwebs of misunderstanding
in the minds of the people and help to promote healthy bilateral relations. I
do not see any reason why such arrangements should not be used to
include our other partner- countries in the region.
Linkages of trade: improving infrastructure
Ladies and gentlemen,
For the BIMSTEC partners to realize their full potentials, and for their
contemplated FTA to be truly and meaningfully effective, they must also
identify the other factors that are holding them back from trading with each
other to full potential despite their geographical proximity and historical
familiarity with each other. The most glaringly identifiable stumbling block
in this regard is poor and outdated infrastructure. There is virtually no
physical infrastructure to support the large scale movement of goods
between the countries of the region. Let us take the example of the land
ports/land customs stations between Bangladesh and India as a case in
point. Apart from the Benapole-Petrapole land port between Bangladesh and
West Bengal, the physical infrastructure of the other land customs stations
are woefully inadequate. The most important of the stations through which
we do trade with northeast India are Fulbaria-Banglabandha, BurimariChengrabandha, Tamabil-Dauki, Sheola-Suterkandi. Zokeyganj-Karimganj,
and Akhaura-Agartala. Till recently there was no linkage between Mizoram
and Bangladesh, but following the visit of Prime Minister of Bangladesh it
has been decided to operationalize the Land Customs station between
Demagiri-Tegamukh in this border. There are many other points that are
under active consideration of both the governments for operationalizing:
Nakugaon-Dalu in the Meghalaya-Mymensingh border and SabroomRamgarh in Tripura-Ferii border are some of these. Perhaps I would not be
wrong in assuming that the highest number of land ports/land customs
stations between the states of the northeast are with Bangladesh, compared
to any other BIMSTEC member country.
I am very happy to note that the officials of the governments of Bangladesh
and India are now seriously working to upgrade these Land ports - they
need to work out requirements for customs, warehousing, immigration,
banking/money exchange, communication, improvement of approach
roads, electrification, and all the other details that would make these Land
ports user-friendly for the exporters and importers of both the countries. I
am afraid that unless we first set right these things on the ground, our
policies for promoting regional trade will not take off no matter how
attractive they may appear on paper.
Let me reemphasize: these infrastructural improvements are essential not
only for promoting trade from Bangladesh to the northeast but also for
allowing exports from the northeast to Bangladesh or through the
Chittagong and Mongla ports to the world beyond. This is another area
where the BIMSTEC transport and logistic study could play an important
role by identifying the bottlenecks and suggesting practical ways of
removing them.
Vital requirement: upgrading of infrastructure
Ladies and gentlemen,
The Prime Ministers of Bangladesh and India recognized that in order to
ensure that the linkages between the northeast and Bangladesh as well as
the other countries are seamless and that lack of infrastructure
development on either side (particularly Bangladesh, which is the natural
conduit for these states) does not block the smooth flow of traffic. This is
again where the Prime Minister of Bangladesh and India have shown
remarkable clarity of vision. Much of the US$ 1 billion credit that has been
pledged to Bangladesh during the visit of Hon’ble Prime Minister Sheikh
Hasina is expected to be used for infrastructure development in
Bangladesh. This includes construction of two bridges, one on the river
Padma and the other on the river Titas, upgrading of the railway lines all
over the country, upgrading of railway rolling stocks in the country and
dredging of rivers both for the purpose of flood management and to improve
the navigabilty of the rivers used for riverine transit by India. I need not
underscore how vitally important it is that we complete all these planned
projects at the earliest so that we can all begin to enjoy the benefits of these
developments.
Border haats: a new twist to an old concept
Ladies and gentlemen
There were many traditional links between the isolated communities in our
part of the world. They exchanged goods and services, established cultural
links, as well as supported the economic development and growth of the
communities. Unfortunately these traditional ties were snapped when the
borders were arbitrarily redrawn, leaving the communities bereft of the
traditional means of livelihood through local trade and commerce. There has
been a longstanding demand of the people of the northeast bordering
Bangladesh, particularly those in Meghalaya and Assam, for permitting the
border haats to reopen. I am happy to note that in this regard also, we have
been able to make significant forward movement. Three locations have '
already been identified for establishing the border haats in Sonarhat (in
Sylhet District)-Lyngkhat/Lakhat (in East Khasi Hills), Baliamari (in
Kurigram District)-Kalaichar (in East Garo Hills); and Narayantala (in
Sunamganj District)-Balat (in East Khasi Hills).
The officials of the two sides will be meeting soon to finalise the modalities
for the functioning of these border haats which is expected to be
formalized with the signing of an MoU. The border haats will permit the
local
people
to
sell
locally
produced
vegetables,
fruits,
spices
(dried/powder), fish and poultry, minor forest produces e.g. bamboo,
bamboo grass and broom sticks (excluding timber), produce of local
cottage industry like gamchha, lungi etc, tobacco (dried and bidi), small
agriculture household implements, e.g. dao, plough, axe spade, chiesel
etc., second hand garments, melamine products and processed food items,
e.g. fruit juice. Only people living within 10 kms. of the border would be
allowed to sell their products in the border haats and the number of sellers
would initially be limited to 25 only. This is the most welcome aspect of
this initiative - it will bring direct benefit to isolated communities who
would otherwise have to undergo considerable hardship to obtaining the
goods and allow them to gain from the local commerce.
Bangladesh is ready to formally open, as soon as the Indian side has
completed what has to be done on this side. The Bangladesh Commerce
Minister called me the day before yesterday and said he was ready to
inaugurate jointly with the Chief Minister of Meghalaya the opening of the
first such haat on 14th April, which corresponds to Pahela Baishakh, the
first day of the Bangla calendar.
Conclusion: regional cooperation most important for common
prosperity
Dear friends,
As I mentioned at the beginning of my statement, there is no dearth of
goodwill among the people of the northeast for the people of Bangladesh.
Our peoples have already started to take advantage of the changed
environment. It is heartening to note that the Chief Minister of Meghalaya
has already visited Bangladesh twice in the space of two months. On the
first occasion, he went to participate in the Indo-Bangla Conclave and Trade
Fair held in Dhaka in February. I understand he was accompanied by a
large business delegation. His second visit, on 26 March, the Independence
and National Day of Bangladesh was of more emotive nature. The people of
Bangladesh recall with deep gratitude the contribution of India, particularly
the governments and peoples of the States bordering Bangladesh during its
War of Liberation in 1971. We were proud and happy that Mr. Lapang and
Mr. Manik Sarker, Chief Minister of Tripura could find the time to celebrate
the glorious day with us.
These reflect well the growing realization that the destinies of Bangladesh
and the northeast are inextricably intertwined. Each needs the other to truly
realize its own full potential. For the Significantly, Standard and Poor's in
their annual country ratings of credit worthy countries announced on April
5, 2010 has assigned Bangladesh 'BB-/B' Sovereign Credit ratings and a
stable rating outlook for the foreseeable future. This reflects their
"expectations that a prudent macroeconomic policy-setting will prevail
and microcconomic reforms to gradually address the multitude of
growth constraints will continue". Please indulge me and allow me to
quote the relevant sections of their analysis:
"In our opinion, the ratings on Bangladesh are supported by strong real
per capita income growth and favorable growth prospects. Real per
capita GDP growth has averaged 4.2% in the past 10 years. The high
growth performance has occurred with what we consider as stable fiscal
and
monetary
conditions,
and
minimal
external
imbalances.
Bangladesh's economic growth generally displays very low volatility;
during the 2008-2009 global recession, real per capita GDP growth
remained
at
4.6%.
In
the
medium
term,
and
notwithstanding
infrastructure deficiencies, the garment sector, remittances, and
agriculture should underpin growth rates in line with recent trends.
Assuming current fiscal policies and ongoing donor engagement, debt
ratios should continue to recede over the medium term, even in the
absence of additional reforms.
Bangladesh Bank's growing international reserves is another rating
support,
in
our
view.
We
expect
usable
reserves
to
reach
approximately five months of current account payments in 2010,
up from two months in 2000, while gross external financing needs,
as a percentage of current account receipts plus usable reserves,
have declined to 78% in 2009 from a peak of 101% in 2001.
Garment exports and remittances contribute 45% and 35% of
current account receipts, respectively, and have emerged as the
main sources of foreign exchange in the pasl decade. Both segments
have performed well during the 2008-2009 global recession, and we
expect them to remain a steady source of foreign exchange."
(Source: Standard & Poor's Global Credit Portal: Ratings Direct,
published April 5, 2010)
The above adequately justifies the growing interest of the northeast Indian
states in Bangladesh as a development partner that will free them of the
epithet "land-locked", and make them truly "land-linked", not only with
Bangladesh but with the prosperous regions beyond.
Friends,
We, the member states of BIMSTEC, are fortunate to live in one of the most
unique corners of the world - it is very rich in resources, it is endowed with
a climate that is naturally suited for rich agricultural produce, we have
commonality of cultural values and yet there is a rich cultural diversity
amongst us. We are linked by history, traditions, and ethnicity. We have
now been given a small window of opportunity which we can use for freeing
ourselves
of
the
shackles
of
poverty
and
underdevelopment,
and
transforming ourselves into a leading growth engine for the greater region
around us. Bangladesh and India have taken the lead by its leaders at the
highest level taking some difficult and bold decisions. With this political
mandate, we all now need to take all actions required to operationalize the
shared vision of our Prime Ministers, implementing them for the mutual
benefit and prosperity of the peoples of this sub-region and for the adjoining
regions beyond. Let us do it!
I thank you all for your patience.