Bangladesh may sign protocols with India, Nepal and Bhutan to provide the countries with transit benefits through its two to three road routes.A government assigned committee has earlier identified 17 transit routes -- seven by road, seven by rail and three by waterway.India, on the other hand, proposed in April for 15 routes, all linked to Chittagong and Mongla ports.
Transit How Bangladesh gains out of it
The gain of Bangladesh can be many folds.
The gain of Bangladesh can be many folds.
1. How Bangladesh can become a regional transport hub, was described by ADB Country Director Hua Du in a seminar recently. She mentioned – “You can benefit tremendously through opening up transit and great opportunities for crossing from east to west and giving the land-locked neighbors access to the sea”.The Chittagong port can become a modern busy port like Singapore serving the SAARC countries and even China. Huge foreign investment may be attracted to Bangladesh and finally a throbbing service sector like banks, insurance, hotels, rest houses, petrol pumps etc. may develop around the Trans continental roads and railways.
2. There is an estimate of direct economic gain from transit fees. It ranges from 500 crore taka to 4,666 crore taka.
3. The last but not the least, is the mutual transit. Bangladesh, in return, will get a much shorter route to China, which already is its second largest trading partner. Unfortunately, most of the trading nowadays takes place through sea-route. The cost of import increases, as well as Bangladeshi goods loose competitiveness in Chinese market. If Bangladesh wants to access South Chinese underdeveloped market, they must go through India. This was a point of concern for the Chinese delegates during Kunming initiative in 1999, an initiative to link Chinese province of Yunan with Seven Sisters of India, Myanmar, Thailand and Bangladesh. See reference map to link Kunming in China with Bangladesh.
2. There is an estimate of direct economic gain from transit fees. It ranges from 500 crore taka to 4,666 crore taka.
3. The last but not the least, is the mutual transit. Bangladesh, in return, will get a much shorter route to China, which already is its second largest trading partner. Unfortunately, most of the trading nowadays takes place through sea-route. The cost of import increases, as well as Bangladeshi goods loose competitiveness in Chinese market. If Bangladesh wants to access South Chinese underdeveloped market, they must go through India. This was a point of concern for the Chinese delegates during Kunming initiative in 1999, an initiative to link Chinese province of Yunan with Seven Sisters of India, Myanmar, Thailand and Bangladesh. See reference map to link Kunming in China with Bangladesh.
The potential damages Bangladesh could suffer
1. The corridor through Bangladesh could increase Indian Intelligence Service activities in Bangladesh.
2. It could lead to spreading of AIDS and could become a potential route for drug-trafficing.
3. The road and ports of Bangladesh could get overcrowded, thus resulting in poor efficiency in domestic industries.
2. It could lead to spreading of AIDS and could become a potential route for drug-trafficing.
3. The road and ports of Bangladesh could get overcrowded, thus resulting in poor efficiency in domestic industries.
Keeping in view the benefits, it seems the above mentioned risks are too small, from economic perspective. But, a country is not made up of its economy only, it has its political, ideological and popular faces also. To sum up the whole condition, Bangladesh currently does not allow India the transit because of non-economic reasons.
. The problem complicates when the same issue becomes a multilateral one, crops up as a part of a multilateral development program. Unfortunately, Bangladesh has refused to join Asian Highway project fearing it would allow transit to India.
The future of the economy of a country depends on how the policies remain focused on economy overcoming the political pressure. This is a proven truth in case of China, Japan and might be India in near future. Hence, giving up economic advantages to some non-economic causes will never help a poor country in a poorest region to grow out of its poverty.
Source:The new Horizon, The Daily Star
Source:The new Horizon, The Daily Star
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