China’s Cooperation Indispensable to Bangladesh’s Economic Recovery
People need food, clothing, shelter, education and healthcare to live. Among these basic needs, food is the first condition of life. The same is true for a country’s economic ties. Bangladesh needs balanced, friendly and business ties with all countries, including China, India, Japan, the United States and the European Union. But when the economy is weak, and investment and jobs must grow, the country must give priority to deeper ties with the country that can give the most useful economic help. Just as people need food to live, Bangladesh needs recovery of its economy the most in the present situation. The country needs investment and jobs most to make its weak economy strong. In this, there is no alternative to China’s help.
In nearly 17 years, corruption, money laundering, bank sector irregularities and poor economic management under the autocrat Ms. Sheikh Hasina hollowed out the economy. The interim government also ruled for about a year and a half, but it did not improve the hollow state of the economy much. So the big challenge before the present government is to turn the economy around. It must raise production, investment, jobs and people’s income. When the economy is strong, its benefits reach people’s lives directly. When factories run, jobs grow, people earn more, and the market gets better supplies of goods and services.
When farm output and food processing grow, the supply of daily goods gets support. When the country secures enough power, gas and fuel, the cost of production can fall. When production and transport costs fall, prices of daily goods fall too. So a strong economy opens the way to better income, buying power and living standards. In this situation, it is very urgent to deepen economic ties with China. China has experience in industrialisation, technology, building infrastructure, power, energy, ports and international trade. If Bangladesh can use China’s help in these areas, it can solve several economic problems together.
Prime Minister Tarique Rahman’s visit to China from 22 to 26 June this year has opened a door to new chances. He met Chinese President Xi Jinping, Premier Li Qiang and Mr. Zhao Leji, Chairman of the Standing Committee of the National People’s Congress. China welcomed the Prime Minister formally and showed interest in widening ties and economic help between the two countries. The joint statement issued on 26 June speaks of more cooperation in industrialisation, trade, investment, agriculture, technology, energy and communication.
The wide chance of help that China has given Bangladesh can be called a blank cheque. This means Bangladesh can choose the projects it wants help with, based on its own development priorities, and move ahead with China. Now the government has the duty to turn this chance into real work. The diplomatic success of the visit will count only when industry, markets, jobs and ordinary people see its benefits.
First, the government must quickly carry out the plan to build a Chinese economic and industrial zone in Chattogram. If new factories open there, local and foreign investment will come, production will grow, and many people will find jobs. Besides garments, the country has a chance to build electronic parts, medicine, leather goods and other export focused industries. Bangladesh can raise its own production capacity with Chinese technology and investment. This will cut its dependence on imports and open a way to earn more from exports.
Second, the government must move faster on the upgrade and expansion of Mongla Port. If the port’s capacity grows, import and export of goods will get easier, transport and supply will take less time, and business costs can fall. Factories, traders and consumers can all gain from this. At the same time, the country must act to raise exports of garments, leather goods, medicine, farm goods and seafood to the Chinese market. To use this market access, it is urgent to improve product quality, production capacity and the export system.
Third, the country must give special weight to cooperation in power and energy. Factories need a steady supply of power and gas to keep production going. Chinese technology and investment can improve power generation, renewable energy such as solar power, and energy infrastructure. If power generation and supply improve, industry can cut its production cost. Better efficiency and savings in energy will also help the whole economy.
Fourth, the country must carry out the Bangladesh China Myanmar economic corridor at any cost. If this corridor works, regional trade and goods transport will get easier. Investment will grow in Bangladesh’s ports, roads, railways, warehouses and logistics. Local traders will get a chance to supply goods to a bigger market. Bangladesh can become an important link in regional trade. This will create new jobs in transport, trade, warehousing and services.
Fifth, the country must use China’s help in the integrated management and restoration project for the Teesta River. If the project goes ahead, it can help irrigation, water management and farm output. It can have a good effect on the livelihoods of farmers and ordinary people in the northern region. If Chinese technology also helps in storing, processing and marketing farm goods, farmers can earn more and food waste can fall.
Sixth, the country must raise cooperation in information technology, modern industrial technology and technical training. Setting up new industries is not enough. The country must also train skilled workers to run them. If technology exchange and training programmes with China begin, young people will gain better skills. The quality of products made in the country will improve, and new technology based jobs will arise.
After so many chances have come up, the question now is where the visible progress is. More than five months have passed since the Prime Minister’s visit. Naming projects and areas of cooperation in a joint statement does not finish the work. The ministries, offices and Chinese authorities must start effective talks quickly. The government must publish a clear action plan. It must say which project will go first, where money is needed, which agency will take charge, and how long the work will take.
The government must also make sure that red tape and slow decisions do not block these efforts. If any part of the bureaucracy holds up projects for personal gain, group gain or any other reason, the government must find it and act. There is no room for needless delay on matters of national economic interest. It goes without saying that a weak economy raises poverty, unemployment and frustration. In such a time, some opportunist political groups may use people’s anger and feelings to create unrest for their own gain. When living standards improve, when work and income become more secure, and when families feel at ease, the effect of provocation and false propaganda falls. So the country must link economic development with social stability.
Bangladesh will keep friendly ties with all countries. But it is now the demand of the time to use quickly the chance of economic cooperation that has opened with China. The government must not keep the wide chance, like a blank cheque from China, only on paper. It must carry it out in industrial zones, ports, corridors, the Teesta project, power, energy and technology. If investment grows, production will grow. If production grows, jobs and people’s income will grow. When the economy is strong, the country will also be able to improve the supply of daily goods, ease price pressure and raise people’s living standards. What the country needs now is quick decisions, effective action and keeping promises.
Writer: Columnist and politician.
