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Bangladesh – the new Asian tiger on the horizon

author:Ancient and modern, Chinese and foreign history

Bangladesh is a relatively new country, and 2021 will be the country's 50th anniversary. It has a large population, with an incredible 165 million (the actual number may be higher) living on 147,000 square kilometers. Bangladesh is located in South Asia. It is surrounded by India to the west, north and east, and Myanmar to the southeast. Nantong the Bay of Bengal and the Indian Ocean, and the largest port is Chittagong. India's Siliguri Corridor (commonly known as the "chicken's neck") separates it from Bhutan and Nepal.

Bangladesh – the new Asian tiger on the horizon

Bengali beauty

Sovereign independence

Before the 1971 War of Independence, Bangladesh was known as East Pakistan because the departing British colonists gave the area to Muslim-majority Pakistan. Independence was declared on March 26 due to its oppressive status in the Pakistani state and the refusal of the Islamabad junta to transfer power to Rahman's Awami League after elections in 1970. A bloody war of liberation ensued, in which the Pakistani authorities committed horrific massacres and genocides against the people of Bangladesh. Pakistan carried out repression and genocide while receiving active support from the United States, headed by President Nixon, because it was an ally of the United States in the Cold War and did not have as close ties to the Soviet Union as India.

Bangladesh – the new Asian tiger on the horizon

Flag of the People's Republic of Bangladesh

Nevertheless, in December 1971, Bangladesh emerged victorious with the help of India. After liberation, an arduous task was the development of the country. Then-U.S. Secretary of State Henry Kissinger (a staunch opponent of Bangladeshi independence) used the term "basket" to describe the plight of the emerging nation of the Indian subcontinent, as Dhaka relied on international aid to prevent starvation of its vast population.

In addition to overcrowding, Bangladesh is known for poverty, illiteracy, corruption, and climate change that causes severe weather disasters. In recent years, however, the country's economy has grown so fast that many analysts call it the New Asian Tiger or the Emerging Asian Tiger. This statement is correct. Bangladesh's economic development is very impressive. GDP is growing steadily year by year, and the current nominal GDP ($416 billion) is 50 times higher than it was when the country was founded in 1971. Food production has increased fourfold, and now diversified exports have grown even more. Services accounted for 56.5% of GDP, industry 29.3% and agriculture 14.2%.

Bangladesh – the new Asian tiger on the horizon

Bangladesh: Victory Day is celebrated

The center of the global textile industry

Bangladesh has become recognized as the center of the global textile industry. China and the European Union still dominate world clothing exports, with Bangladesh in third place, ahead of countries such as Vietnam, India, Turkey and the United States. Garments dominate Bangladesh's exports, with Dhaka's top five exports of goods being: knitwear ($20.3 billion, 44.5% of total exports), other clothing and fashion accessories ($19.4 billion, 42.4% of total exports), footwear ($1.1 billion), various textiles ($1 billion), paper products and fabrics ($603.3 million). Other commodities that are most exported are: fish, animal products, leather, plastic products. Bengali textiles are mainly sold to developed countries such as the United States, Germany, Britain, Spain, and France.

Bangladesh has rightly chosen the traditional path of development. He embraced the traditional labor-intensive light manufacturing industry, planned for development, and established a dominant position. Bangladesh's success represents a major victory for industrial policy. It turns out that economic growth in the 21st century can be based on classic industries, not just modern activities such as services and IT sectors. Bangladesh's labor-intensive manufacturing proves that human labor is still important.

Bangladesh – the new Asian tiger on the horizon

Bangladesh receives a lot of foreign investment, especially in the textile industry and garment processing industry.

The biggest threat

Bangladesh became the first constitutionally defined secular state in South Asia in 1972. Islam was declared the state religion in 1988. In 2010, the Supreme Court reaffirmed secular principles in its constitution. A strong threat to Bangladesh's economic growth is political in nature, with strong Islamists in the country suppressed in 2016 through harsh authoritarian measures. Although Bangladesh is a parliamentary democracy, the country has huge problems in terms of corruption and political malfeasance.

The biggest threat is climate change. Bangladesh is geographically located on the northern shore of the Bay of Bengal, in the delta of the Ganges, Brahmaputra and Meghna rivers. The confluence of these rivers, the Bengal Delta, is the largest delta in the world. Such a geographical location makes the country vulnerable to floods, storms, variable rainfall and rising sea levels. Bangladesh is one of the most sensitive countries to climate change. Over a century, 508 hurricanes have hit the Bay of Bengal region. As climate change intensifies, increased precipitation, rising sea levels and tropical cyclones are expected to intensify, adversely affecting agriculture, access to drinking water and food, and human homes. It is estimated that by 2050, rising sea levels will inundate about 20% of land and displace more than 30 million people. In response to this threat, the Bangladesh Delta Project 2100 was launched.

Despite rapid economic growth, Bangladesh is still a very poor country in terms of GDP per capita of $2633. The country ranks 139th in the world on the level of Ghana, Honduras and Djibouti. In terms of GDP per capita, Bangladesh will soon surpass its big neighbor, India, and has already surpassed Pakistan. It still has a long way to go to reach the status of a developed country. Bangladesh's growth also shows that globalization, despite its shortcomings, can well provide opportunities for developing countries, and without globalization in the world, Dhaka would never have become the center of the global textile industry, because access to export markets in Europe and the United States is the key to development. Dependence on the United States and the European Union has accounted for at least 80% of Bangladesh's export earnings over the past decade, making Bangladesh a global power in the textile industry.

According to the Human Development Index, i.e. quality of life, Bangladesh is ahead of India and Pakistan, and it is only a matter of time before it overtakes Sri Lanka, which is mired in a severe economic crisis. Life expectancy in Bangladeshis has increased from 46 to 72 years, higher than Pakistan's 69 years. Women in Bangladesh are among the most emancipated in the subcontinent, including India. The female labour force is 33.6% in Bangladesh, 22% in Pakistan and 20.3% in India. Education and health are two areas of priority for the Government. Bangladeshi students study abroad, including in India, and wealthy enough families can access quality medical services in Indian hospitals. Healthcare in Bangladesh itself has improved in the 21st century, but significant investment in healthcare is still needed.

Bangladesh – the new Asian tiger on the horizon

Dhaka downtown

standpoint

In today's society, Bangladesh still manages to remain neutral in international relations while achieving rapid economic growth. Contemporary Bangladesh is known as an emerging Asian tiger with ambitions to become a regional and global power. Bangladesh aspires to become a medium or regional power on the international stage. This rather audacious act was particularly evident during the administration of current Prime Minister Sheikh Hasina, who came to power in 2009. Hasina is the world's longest-serving female prime minister and the daughter of Sheikh Mujipur Rahman, the founder and first president of Bangladesh.

Bangladesh's geopolitical behavior is one of the rare examples of successful manipulation between great powers to secure their own national interests. Bangladesh's geographical location, half-surrounded by India, has led to good relations between Dhaka and New Delhi, although sometimes slightly deteriorating. Good relations with India have somewhat hindered China's possible aspiration for economic dominance. China's major financial and security investments of more than $18 billion in Bangladesh include a series of ambitious infrastructure projects that are part of China's New Silk Road: the $3.3 billion Padma Bridge, the $1.9 billion Payala power station, 1 worth grid development, $32 billion, and $1 billion worth of digitization projects. Bangladesh has become a partner of China. At a time when ASEAN countries are forced to choose sides between the two Asian superpowers, Dhaka's move between Beijing and New Delhi shows how small countries can maintain good relations with large powers without taking sides, and it also shows Bangladesh's character in terms of geopolitics: it is open to the best economic cooperation in the national interest, but will choose political neutrality.

Bangladesh – the new Asian tiger on the horizon

Ambassador of Bangladesh to China

Over the past two decades, Dhaka's foreign policy has relied heavily on implementing UN international support measures for the world's least developed countries and access to foreign trade preferences, free of tariffs. Even as the United States stopped offering trade preferences in 2015 and China stepped in to allow 97% of Bangladeshi goods to enter duty-free, it is clear that Bangladesh will remain neutral in international relations despite its economic ties.

However, the consequent loss of trade privileges when it develops to a point where it leaves the world's least developed country status means that Dhaka will have to rely on regional and bilateral agreements with other countries to sustain its economic development. Many economists believe Bangladesh will have to turn primarily to cooperation with developed East Asian countries. To achieve further economic development, Bangladesh must transform its labor-intensive economy into a capital-intensive one, as South Korea did in the 80s of the 20th century. On the other hand, Bangladesh's auto industry is already the third largest in Asia, and its expansion plans are very ambitious. To ensure long-term growth, its economy will have to diversify and start producing furniture, a lot of food, in addition to revitalizing the pharmaceutical, electronics and IT industries. To succeed in this regard, it is necessary to build better infrastructure and attract foreign investors. In the midst of a changing international community, let's see how Bangladesh does next.

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