Dr. Anu Mahmud :
The just concluded 21-hour visit of Japanese Prime Minister Shinzo Abe to Dhaka ushers a new hope to cementing the traditionally deep rooted bilateral relations between Bangladesh and Japan. The visit offered a big opportunity to reach a higher economic development trajectory for Bangladesh as Japan is looking at South Asia for investment. The existing congenial atmosphere between the nations can grab more investment in our thrust sectors. The visit is taking place when Japanese investment in China dropped by 45 percent over the last 11 months. It seems Bangladesh does not want to miss this opportunity this time as there is a possibility that Vietnam, Myanmar, India and other destinations might seize the chance if Bangladesh fails to fulfill Japanese investors’ expectations in terms of investment facilities. While addressing business leaders in Dhaka, Shinzo Abe expressed his plans to promote investment in transport, infrastructure, power and energy, and garment sectors. As many as 50 executives’ from top companies willingness of Japan likeliness to invest here will help advance the Japan-Bangladesh Comprehensive Partnership. In reciprocating, the government’s decision to sacrifice Dhaka’s candidature for a non-permanent seat in UN Security Council for the term of 2016-17 in favour of Tokyo seems to be a good move.
Marking Bangladesh economy as ‘an emerging’ one, PM Abe said, the Bay of Bengal Industrial Growth Belt (BIG-B) initiative is the “centre-piece” of Japanese cooperation with Bangladesh. He mentioned the $6 billion loan promises he made for the next four to five years were all under Japan’s BIG-B concept. The improvement of transportation and infrastructure, stable supply of power and energy, urban development including a special economic zone improvement, and also public sector development including improved market access to the financial market were the key to the BIG-B concept. Underscoring Bangladesh’s geo-political importance, Abe said the country is also important for implementing his “Abenomics”, a much-talked-about economic policy he has adopted to inflate the decade long deflated Japanese economy.
He has also emphasized the importance of creating proper investment climate to attract investment from Japan. Bangladesh enjoys duty-free benefit to Japanese market for 8,884 products, resulting rise on RMG exports and in 2011-12 the garment export to Japan increased by 38.8 percent from the previous year. When Japan is suffering due to an aging population Bangladesh could be an attractive potential market or sources of cheap labour-power for Japanese companies.
Prime Minister Sheikh Hasina also pointing out the investment potentials in textiles, leather, petrochemicals, pharmaceuticals, shipbuilding, agro-based industries, light engineering and electronics, telecommunications and IT. In last year, Japan provided a total of $11 billion grants and aid in forms of technical assistance and soft loans to Bangladesh. But the country is able to become self-dependent, not merely aid-dependent, if Japan invests in high-tech manufacturing like automobiles and microprocessors. For the use of foreign aid and cooperation, we in Bangladesh must have capability and competence. This is a clear indication from Prime Minister of Japan when he asserted the importance of investment in infrastructures.
BIG-B ‘centrepiece’ of cooperation
The Bay of Bengal Industrial Growth Belt (BIG-B) initiative is the “centrepiece” of Japanese cooperation in Bangladesh, Prime Minister Shinzo Abe has said. In his first speech during his less than 22-hour tour of Bangladesh, he sought support of businessmen from both sides for the mutual growth of the two countries like “brothers and sisters”. Speaking in Japanese, at a Bangladesh-Japan Business Forum event at Pan Pacific Sonargaon Hotel, he said he would “promote” trade and investment in Bangladesh. Bangladesh was “very important” for him for its location between South East Asia and India. He said the country was also important for implementing his “Abenomics”, a much-talked-about economic policy he has adopted to inflate the decade long deflated Japanese economy. “I am promoting Abenomics in Japan to lead Japanese economy. To me Bangladesh is very important to enhance trade and investment of Japan because I am leading Abenomic to lead Japanese economic growth.” “That’s why I chose Bangladesh for my visit today.”
He arrived, along with his wife Akie Abe, in a first visit of any Japanese prime minister to Dhaka after 14 years. Prime Minister Sheikh Hasina received him at Hazrat Shahjalal International Airport in a rousing reception. He went straight to the National Memorial in Savar from airport to pay respect to 1971 Liberation War heroes. Then he went to the Bangabandhu Memorial Museum at Dhanmondi to pay homage to the Bangladesh’s founding father before delivering a brief speech to businessmen of both sides. Businessmen of both sides including top executives of Japanese infrastructure, finance, garment, medical, food and safe water companies who are accompanying him were present during the speech.
Abe said both countries entered “a new level of cooperation” which was reflected in the frequent high-level visits. In this context he referred to his own visit, Sheikh Hasina’s visit to Japan in May and Japanese foreign minister’s Dhaka visit in March. “This year is a memorable and special year for Japan, Bangladesh relations.” He mentioned the $6 billion loan promise he made for the next four to five years including this year’s $1.2 billion during Hasina’s visit and said these were all under Japan’s BIG-B concept. Japan has a grand design of combining the two oceanic regions – Pacific Ocean and Indian Ocean – for more geo-political space to boost its economy.
The largest Bay in the world, Bay of Bengal forms the north-eastern part of the Indian Ocean. Bangladesh is located in the north of this Bay. Abe mentioned three dimensions of the BIG-B concept.
(a) One is to promote infrastructure improvement for industrial development,
(b) second is to create better environment for investments and
(c) last to promote improved “solidarity and unitedness” in the region including Bangladesh.
Specifically, he said improvement of transportation and infrastructure, stable supply of power and energy, urban development including special economic zone improvement, and also public sector development including improved market access to the financial market were the key to the BIG-B concept. He expressed his hope that in those areas Japanese technology would be “fully leveraged and used in Bangladesh”.”….by doing so it will bring mutual benefit and prosperity to the two countries.” He also highlighted Matarbari power generation project near the port city of Chittagong in his speech terming it as one of the “flagship” cooperation between the two countries. But for promoting investments, “voices of Japanese investors should be heard in making investment friendly environment.
“He highlighted the role of Japanese companies in Bangladesh’s infrastructure development and said “this Sonargaon Hotel (where he spoke) was constructed by Japanese companies using Japanese Yen loan”. Japan is the largest aid donor of Bangladesh. Abe said he was “surprised to see that so many Bangladesh’s apparels in Japanese store” that he said was “inconceivable” even ten years ago. He said it was because of duty-free market access facilities of Bangladesh’s ready-made clothes. He also mentioned the “comprehensive partnership” both leaders launched in May, and said businessmen of both sides were “very important players” to achieve the partnership. Cooperation toward attaining global peace and stability, economic cooperation leading towards the promotion of mutual interest and regional prosperity, and promotion of cultural and people to people exchanges were the three highlights of the partnership. Japan also wants Bangladesh’s support for a non-permanent seat in the UN security-council in which Dhaka is the other contender. One will be elected in the next year’s elections. But, pointing at the flags of both the countries, he said, “we are going to help each other like sisters and brothers and we are aiming to grow mutually together. “Bangladesh and Japan’s flags are rectangular in size with red circle on the body of green and white respectively.
Japan is Bangladesh’s foremost donor and business partner. Ties between the two countries have continued to flourish and strengthen since Japan accorded recognition to independent Bangladesh in 1972. Shinzo is the first Japanese Prime Minister to visit Bangladesh in 14 years. He frankly and openly declared Japan’s policy of comprehensive partnership with Dhaka. Recalling Japan’s offer of giving $5.71 billion as project assistance and grants over next four-five years, Bangladesh expressed hope for further expansion and consolidation of ties for mutual benefits. Bangladesh as a memento of its unrelenting friendship has withdrawn its candidature for a non-permanent seat on the United Nations Security Council in favour of Japan – something which is not very common nor is easily negotiated. The gesture of Prime Minister Sheikh Hasina has been duly acknowledged by her Japanese counterpart who profusely praised Bangladesh for its commitment towards development in partnership and economic cohesion. Abe and Sheikh Hasina will again meet at the UN General Assembly soon but they will not have much to discuss as they have already set a long course of action based on mutual understanding and friendship while the world is still reeling from effects of economic slowdown.
Sheikh Hasina has asked Shinzo Abe to import more Bangladesh products including readymade garment and offered Japan best opportunities for investment. Sheikh Hasina even offered to create a special investment zone for the Japanese in Bangladesh.
Premier Abe mentioned that Bangladesh lacked technology while Japan lacked manpower. So, the two countries can complement each other in these areas. Seen from the two high profile visits Tokyo and Dhaka by Sheikh ilasina and Shinzo Abe, there can be no denying that the two countries have come a long way of cooperation over the decades and would like to go further ahead. We should, however, not view Abe’s visit as one taken granted for anything.
The major elements of the Joint Statement on the outcome of the visit of Japanese Prime Minister Shinzo Abe to Bangladesh sound clearly target-specific, programmatic and visionary. As these spell out shared intent, understanding and decisions at highest political level, the rhetoric phase enters the substantive one. Now these fall squarely on the bureaucracies and private sector leaders to follow through ,coordinate and implement the decisions.
We have often made a good start but when it came to follow-up measures we would be found wanting .The speed and competence with which we meet our part of the bargain can make all the difference between a half-way house and a fully gainful bilateral engagement.
The questions are: What do the Japanese want from us or aim at? How do we plan to meet their already aired expectations? According to Japan’s China -plus policy, Tokyo wants to relocate its investment in and step up trade with a country like Bangladesh. It seeks special economic zone with emphasis on location, competitive incentives, improved infrastructure and labour supply as critical factors.
High -profile Japanese CEOs have made it clear that they look at Bangladesh as the next investment destination; already steelmaker Nippon is willing to open a factory in Chittagong.
The two prime ministers agreed on a direction of economic cooperation under the initiative of the Bay of Bengal Industrial growth Belt(BIG-B).Its three pillars are: Developing infrastructure, improving investment environment and fostering connectivity.
What we need to do is known; institutional linkages are in place, and now we have to strike the iron when it is hot.
(The writer is an economic analyst and columnist. e-mail [email protected].)
