India - SEMINAR REPORT

India-Bangladesh Relations

Speaker: H.E. Tariq A. Karim, Bangladesh High Commissioner to India
Chair: Ambassador Lalit Mansingh, Former Indian Ambassador to the US

Chair’s Introductory Remarks

When Shri PV Narasimha Rao’s government initiated the Look East Policy, it did not cover Bangladesh. At that time, Bangladesh was in the news for all the wrong reasons, from illegal immigration to providing sanctuaries to militants. The present government of Manmohan Singh rightly expressed the need for India to forge closer ties with its neighbors while not forgetting the asymmetry in these relationships. This asymmetry was imperative to appreciate the differences between India and other countries. The election of Prime Minister Sheikh Hasina to power is a positive development and her recent visit to India was a step in the right direction for enhancing bilateral relations. There are various issues that have to be resolved to improve relations between our two countries from sharing the waters of 54 rivers that flow from India to Bangladesh, to , controlling terrorism and promoting economic development. The Mujib-Indira Gandhi agreement, which relates to the demarcation of the boundary, has still not been implemented.

H.E. Tariq A. Karim, Bangladesh High Commissioner to India

There are two dates that are indelibly etched in my mind for their significance in the history of Bangladesh-India relations. The first is 12 December 1996 and the second is 11 January 2010. On the first date, the historic Ganges Water Treaty was signed between the two countries. The second date signifies the recent visit of the Bangladesh PM, Sheikh Hasina to India, to meet with her counterpart, Indian PM, Manmohan Singh when they issued a Joint communiqué. The two leaders with a shared vision decided to change the game and the rules by which it was played for so many years. They have decided to give a new breadth, depth and far reaching vision to the relationship.

It has been 39 years since the liberation of Bangladesh and 35 years since the assassination of the father of Bangladesh. If  Bangabandhu Sheikh Mujibur Rahman had not been assassinated in 1975, the path the two countries would have treaded together would have been very different. Bangladesh realized that even as it constituted the majority of the population of the nation, its needs were not being addressed and so it had to address them on its own. At that time in 1971, there was a Congress government in India, while the Awami League formed the government in Bangladesh.

Today, there is a realignment of the same stars, so to say  which has happened very fortuitously. Neither the Congress in India nor the Awami League had expected such a majority in the elections in 2008 which brought Sheikh Hasina back to power. The results were not challenged and this election has been one of the most transparent, and credibly free and fair, in the history of elections in developing countries. 85 per cent of the registered voters cast their vote. Almost half of them were women and a significant number of them were the youth of the country voting for the first time. This unique situation can assist the leaders in both countries to focus on boldly enhancing the relationship. The outcome of the recent PM visit was the Joint Communiqué, one of the most important, boldest and most forward-looking documents since the Indira-Mujib era. It covers a wide range of issues that are very important.  The real challenge now is to operationalize the decisions taken by the two Prime Ministers and reflected in the Communiqué. Some of the important issues covered in the document are as follows:

Security

Bangladesh and India agreed to work together to combat terrorism which poses a common threat to both. Neither side will give sanctuary to or assist elements that are inimical to the security interests of the other. The lists of wanted criminals on both sides are finally being exchanged but things will take time. The accumulated baggage of  over 30 years will not be solved in a matter of 30 days, so it is important to be patient. Yet, as you are aware Bangladesh has already acted on some cases and these have been resolved to India’s complete satisfaction.

Border related issues: Boundary, Enclaves and Adverse Possessions

The Indira-Mujib accord had expressed the determination to solve the border issues but it was never implemented. India and Bangladesh share a border of about 4098 kms of which only a little over  6 kms still remain undemarcated and this small figure holds up the ratification of the border agreement. The problem is over three stretches of boundary, one is of land and two are on water. It is imperative to fix this problem speedily with political will. There are 111 enclaves spread over 17150 acres in Bangladesh and 51 enclaves spread over 7110 acres in India. The solution here is to turn the de facto in to de jure. The important thing is that people who are settled there  should not be disturbed. In the case of adverse possessions, there are 3500 acres of Indian Territory in Bangladesh’s possession and 3024 acres of Bangladeshi territory in India’s possession. These are also the grey zones between the two countries and have become  the hub of nefarious activities. These have to be brought under the respective administrative jurisdictions and justice systems. A lot of “informal” trade also takes place through this route. There is $ 349 million informal trade going to India and $ 3 billion formal trade, going to Bangladesh. According to official estimates, the informal trade is estimated at $ 4 billion going to Bangladesh and according to unofficial estimates, this informal trade could be as high as $10 billion. Informal trade leads to a massive loss of revenue to the legally elected government of Bangladesh. This will stop by resolving the borders.

Communication/Transportation/Connectivity

Currently in force parameters of inland water transport agreement will be expanded with the addition of Ashugang and Silghat as additional ports of call. The Rohanpur-Singabad broad gauge railway line will be available for transport to Nepal. Radhikapur-Birol railway line will be upgraded and will facilitate trade with Bhutan. The trucks have already started rolling from Bhutan. The use of Chittagong port was constantly demanded by India. Bangladesh decided that India (as well as Bhutan and Nepal) will be allowed the use of both Chittagong and Mongla ports in Bangladesh.

Trade

Bangladesh does not have the means to trade equally with India because India’s trade with Bangladesh is a huge sum of US$7 billion. On the Indian side, however, if India were to facilitate  Bangladesh’s exports to India by completely removing all tariff and non-tariff barriers, then the loss in revenues to India from duieis and levies would be insignificant while in return huge goodwill will be created. This is important because Bangladesh, like India,  is also a democracy and ultimately Sheikh Hasina cannot go against the demands of the people.

Waters

There are 54 rivers that flow between the countries. In the monsoons, if viewed  from the air, Bangladesh resembles small islands in an ocean of water, while during the lean (dry season), many areas suffer from drought. The water issue is  a highly emotive issue, as indeed it is between states within India. Discussions have to be resumed on the Teesta river, so that similar results as were obtained in respect of the Farakka barrage problem. If there are projects that are being initiated on Indian waters that will impact the Bangladeshi waters, then information should be shared with us and where feasible we must be made a stakeholder in these projects. Transparency in these matters is  very important, particularly when mindsets have been set for 30-40 years.

India and Bangladesh must not quibble about cusecs or percentage of share and realize that water is an intangible asset that does not recognize political boundaries. Instead, there should be an emphasis on water conservation and optimum water management. To solve this issue, India will have to shed its bilateral blinkers and think larger (sub-regionally). Rivers can be trained and tamed only if such works are undertaken holistically and simultaneously, at the same time, from the headwaters to the mouth of the rivers concerned (as China had addressed the problem of the Yellow river).  Related environmental issues can only be dealt with cooperatively and this can create immense economic benefits.

Power

Development cannot be achieved without fuel. India is projecting a growth rate of around 10 per cent next year, but it has to think about the means to fuel this development. India is currently 60 per cent short of its energy requirements. Bangladesh is similarly a power deficit country with a huge gap between demand and supply, which would jeopardize our steady 6 percent growth rate for the last few years and also prevent us from attaining our full potentials. Both countries have therefore decided to cooperate on this issue. A MOU on power sharing and establishing power grid connectivity was signed and negotiations to realizing the objectives of that MOU are proceeding smoothly.  India can now realize and operationalize its Look East Policy through co-opting Bangladesh as a partner.

Credit Issues

Although we had initially suggested a credit line of US$500 million, India increased  to US$1 billion to be used  in Bangladesh for infrastructure improvement and expansion. This credit line, the largest single country commitment made by India at one time creates a very positive image of India.

Culture and Education

There have not been adequate cultural exchanges between India and Bangladesh for a long time. These must be restarted. Educational exchanges are also important to change the mindset of the young people, who can really make a difference. The war in 1965 drew an iron curtain across our minds and people-to-people contacts  diminished.

Other Issues

Bangladesh and India will  support each others’ candidatures for the non-permanent seat in the  UN Security Council for the 2011-2012 and 2016-2017 terms respectively. .