ECONOMIC DIPLOMACY

One of the hallmarks of the foreign policy of the present Government has been the pursuit of a vibrant and dynamic economic diplomacy. Spread of education, acceleration of the democratic process and the gradual empowerment and awareness of the mass of the people everywhere are making the decision of foreign policy issues more transparent. These developments have equally brought new preoccupation and concerns such as question of trade, investment, environment, human rights and poverty alleviation in the forefront of the foreign policy agenda. The present Government of Prime Minister Sheikh Hasina since its assumption of office election has made all out efforts for national economic development and achieving a better quality of life for its people by leading the country on the path of self sustained growth.

Some of the notable successes achieved through the launching of a vigorous drive of economic diplomacy by the present government are as follows:

1. The value of exports during the first six months of 2000 was US$ 2744.50 Million. Breakdown of export earnings for these six months show that export of knit wear and hosiery products increased by 29.9 percent, leather by 24.8 percent, chemical products by 13.8 percent, frozen foods by 9.2 percent and ready made garments by 7 percent. The Growth in total exports is 27 percent during the current fiscal year and it can exceed the year’s target of 6314 Million dollars if the current trend continues. Due to the adoption of a pragmatic and effective Export Policy the Export earnings were higher as compared to the previous years As a part of the economic diplomacy the GSP problem with the European Union has been solved and the new Five Year Export Policy (1997-2002) has been adjusted against with the newly evolved rules of origin. The Ready Made Garments Textiles, Knit wear and foot wear sectors all registered higher growth rates this year. The progressively liberalized trade policy environment and the resulting increase in exports have greatly improved Bangladesh’s position. The export promotion drive under the directives of the personal guidance provided by Prime Minister Sheikh Hasina played an important role in successfully penetrating the highly competitive Read Made Garment (RMG) markets in the USA and the EU.
2. Another important area for successfully carrying out the policy of economic diplomacy is providing necessary incentives for raising the level of remittances of our workers abroad. It is expected remittance would increase by 14.3 percent over the previous year to US$ 1959 during the FY 2000 that will increase current transfer to US$ 2579 million and decrease current account deficit to US$ 197 million compared to a deficit of US$ 394 during FY 99. The Government played an active role in promoting the inflow of remittances through making the workers and professionals aware of the various incentives provided by the present Government for investing their hard earned money in Bangladesh. On the other hand efforts were also taken both at the bilateral and multilateral level to increase the employment prospects of Bangladeshis were there is a storage of skilled workers.
3. Foreign Investment (FDI) in Bangladesh has increased significantly since the present government of Prime Minister Sheikh Hansina assumed office. Between FY 97 and FY 99, FDI increased from US$ 281 Million to US$ 807 Million. Gas (39.40%) and power (25.83%) attracted the largest proportion of FDI, followed by telecommunications, cement and other industries. Adoption of BOO/BOT has facilitated foreign direct investment. The cumulative investment in the EPZ’s at Chittagong and Dhaka stood at US$ 391 million in FY 99 showing 19 percent growth over the last five years. Total estimated investment in the current financial year would be US$ 466 million that will increase to US$ 670 million during FY 2002. Exports from the EPZs account for 13 percent of the total exports from Bangladesh. This increase was brought about due to trade and exchange liberalization, current account convertibility, liberalization of the investment regime and significant findings of gas deposits. The present Government has been successful in creating and projecting a favorable investment climate in Bangladesh. Following the directives of the Hon’ble Prime Minister, the Government have been making all out efforts to attract foreign Investment through promotional and motivational campaigns.

In turn with the needs of the times to promote regional and sub regional economic cooperation Bangladesh has been striving hard to further strengthen bilateral and sub-regional ties with her neighbors especially in the field of trade, commerce and investment. The process of transition from South Asian Preferential Trading Zone to South Asian Free Trade Zone is moving in the right direction.

BIMST-EC: The BIMST-EC (Bangladesh, India, Myanmar, Sri Lanka, and Thailand-Economic Co-operation) formally came into existence through the signing of the BIMST-EC Declaration in June 1997. The Second successful completion of the meeting Bangladesh assumed the Chairmanship of this sub-regional grouping. Bangladesh assumed the chairmanship successfully organized the BIMST-EC Sectoral Meeting on Trade and Investment in November 1999. The MIMST-ECT Economic/Trade Ministers Meeting was held from 26-27th April, 2000 in Delhi The Hon’ble State Minister for Foreign Affairs attended the Third BIMST-EC Ministerial Meeting which was held in Delhi from 3rd till 6th July, 2000. It was in this meeting that the BIMSTEC Economic Forum comprising of public and private sector trade and business representatives was formally launched. The scope and potential for further cooperation in the economic area between these countries are ver bright. An inter-governmental group of experts have been formed to find out the ways and means to establish a preferential trading arrangement between these countries and gradually move towards a free trade area.

Developing Eight (D-8): The Developing Eight or the D-8 is another economic Forum where Bangladesh is one of the founding members. This organizations formally came into existence through the adoption of the Istanbul Declaration in June 1997. The Second D-8 Summit was successfully organized b Bangladesh in Dhaka from 1st till 3rd March 1999 through the adoption of the Dhaka Declaration. Our Prime Minister was unanimously elected as the Chairperson of the D-8 for the next two years. The Third D-8 Summit was held at Cairo on 25th February 2001 where our Hon’ble Prime Minister Sheikh Hasina Presided. The enthusiasm for expanding cooperation within the D-8 is gaining momentum.

A Three-Nation Business Summit consisting of Bangladesh, India and Pakistan was successfully held in Dhaka in January 1998. The UN Secretary General has personally praised Bangladesh initiative in convening this meeting. Bangladesh also actively participated with the Bangladesh delegation at the UNCTAD-X Conference held in Bangkok in February 2000. Bangladesh also took the initiative in forming the South Asian Growth Quadrangle with Bangladesh, Nepal, Bhutan and the North Eastern States of India.

Bangladesh is also the coordinator of the Least Developed Countries and she has been actively taking part in the preparatory meetings especially the UN_ESCAP and UNCTAD sponsored Regional High Level Preparatory Meeting held in Dhaka in November, 2000 which laid a solid ground For the UN-Third Conference of the Least Developed Countries to be held in Brussels in 14-20 May 2001. Representatives of the Ministry of Foreign Affairs also effectively participated in the South Summit in Havana and the NAM Foreign Ministers meet held in Cartagena, Colombia held in February 2000.

The Government can justifiably feel proud of building up a positive image of the country and making relentless efforts through it’s missions to secure our national interests and objectives and promote the growth of trade, industry and commerce.

The present Government’s commitment to build a working pattern of relations with our neighbors through the framework of SAARC remained firm. Due to the relentless efforts of the Government of Prime Minister Sheikh Hasina, the cooperative process under SAARC is making progress and gradually gaining further momentum after it suffered some set back in the recent past.

EPILOGUE

The Position of respect and dignity that Bangladesh enjoys today in international affairs is what the Father of the Nation, Bangabandhu Sheikh Mujibur Rahman had dreamed about and what the people had fought the liberation war. So much has been done and yet, so much remains to be done. If the record of the last four and half years is of any standard of assessment, then the future can only be of promise. And under the leadership of Prime Minister Sheikh Hasina, the people of Bangladesh will surely see the fulfillment of that promise.

Source:
Foreign Policy of Bangladesh 1999-2001, A Story of Success and Achievements, Published by Bangladesh Awami League Election steering Committee 2001.

< Multilateral Diplomacy

Page : 1 2 3 4 [ 5 ]
 

Home | Bangladesh Awami League |  Contact Us