A New Era Of Japan-Bangladesh Friendship And Cooperation

It should be noted that Japan, the largest bilateral development partner of Bangladesh, has been significantly contributing to the socioeconomic development of the latter since her birth. In particular, they have always extended their generous assistance in crucial sectors for development like poverty alleviation, power generation and human resources development. According to the Economic Relations Division (ERD), till date, Japan has provided Bangladesh with $11 billion by way of assistance, of which $3350 million was grants and, $4100 million was loans.

Summary

This recently concluded visit has been hailed by many for opening new dimensions of cooperation between the two, already very friendly, nations. In total, 21 agreements were signed between the two countries during the four-day visit. Japan and Bangladesh jointly launched the “Japan Bangladesh Comprehensive Partnership”. The former pledged the latter $6 billion in assistance over the next five years by way of implementing the Bay of Bengal Industrial Growth Belt (Big-B) plan. Exchange of notes between the two countries were signed regarding the 35th package of the Official Development Assistance (ODA), under which Bangladesh is receiving $1.18 from Japan for a number of major projects.

Various incentives were offered to Japanese businessmen for investing in Bangladesh including the promise of an exclusive industrial park and special allocations in existing export processing zones (EPZs). Initiatives have been taken to hold regular foreign secretary level talks on politics and security issues. Dhaka and Tokyo will start a joint Bangladesh-Japan Public Private Economic Dialogue to promote trade and investment. Bangladesh asked for Japan’s assistance for building its second nuclear power plant and asked Japan to hire workers from Bangladesh for the upcoming Olympic and Para-Olympic games.

Tour Highlights

After reaching Tokyo on May 25 2014, Sheikh Hasina was transported in a ceremonial motorcade to Akasaka Palace where she stayed during her entire visit. Later in the evening, the Prime Minister met and addressed ‘friends of Bangladesh’ as well as former ambassadors of Japan to Bangladesh. On May 26 2014, Prime Minister Sheikh Hasina was accorded a welcoming ceremony at her place of residence followed by a Guard of Honour. She was then called on by the Japanese Foreign Minister Fumio Kishida, followed by members of Bangladesh-Japan parliamentary league.

Later on, she paid a visit to the Tokyo Imperial Palace where she spent some time as an audience with His Excellency, the Emperor of Japan, Mr. Akihito. Thereafter the Prime Minister of Bangladesh held summit level talks with her Japanese counterpart Mr. Shinzo Abe. Apart from attending a number of meetings with key trade bodies and businessmen of Japan to encourage them into investing further in Bangladesh, the Prime Minister attended a programme at Waseda University, Japan where she gave a talk on youth empowerment and education. Some of the main highlights of the tour include:

Increased assistance and ‘Japan-Bangladesh Comprehensive Partnership’

On 26 May 2014, Prime Minister of Bangladesh Sheikh Hasina and Prime Minister of Japan Mr. Shinzo Abe launched the “Japan-Bangladesh Comprehensive Partnership” agreement. Under the agreement, the two premiers re-affirmed their commitment to further strengthen the already existing warm bilateral relations “by elevating the friendly relationship to a new partnership”. The Prime Minister of Japan also pledged to provide nearly $6 billion in additional assistance for Bangladesh in the next four to five years starting this year. The promised assistance will come by way of implementing the concept of the Bay of Bengal Industrial Growth Belt (BIG-B) and will be used for the multipurpose tunnel under river Jamuna, cleaning of four rivers and other projects.

During the meeting between the two premiers, Bangladesh and Japan signed the Exchange of Notes concerning the 35th Official Development Assistance (ODA), which was pledged by the Japanese Foreign Minister Fumio Kishida during his visit to Bangladesh in March 2014. Under the ODA, Bangladesh will receive loans worth $1.18 billion for major projects as the 1200 MW Ultra Super Critical coal fired power plant in Matabari, Cox’s Bazar; Inclusive City Governance Project; Haor Flood Management and Livelihood Improvement Project; Natural Gas Efficiency Project; Small and Marginal-Sized Farmers Agricultural Improvement and Diversification Financing Project.

Exclusive industrial park/preferential allocation at EPZs

On 27 May 2014, Prime Minister Sheikh Hasina addressed a seminar on Investment and Business Opportunities in Bangladesh at the headquarters of Japan External Trade Organization (JETRO). In the same forum, Bangladesh Export Processing Zones Authority (BEPZA) and JETRO signed a memorandum of understanding (MOU) to establish an exclusive industrial park in Bangladesh. Bangladesh Export Processing Zones Authority (BEPZA) and JETRO signed memorandum of understanding (MOU) to establish an exclusive industrial park in Bangladesh. BEPZA Chairman Major General Habibur Rahman and JETRO Representative K Kawano inked the MoU in the presence of Sheikh Hasina and state minister of economy, trade and industry of Japan, Mr. Midori Matsushima.

Bangladesh offered 40 industrial plots in export processing zones (EPZs) exclusively to Japanese entrepreneurs. Under the deal, Bangladesh will reserve industrial plots at the EPZs in Ishwardi, Mongla and Uttara for the Japanese investors. Japanese investors will also be allocated factory buildings in the Adamjee and Comilla EPZs where there are no vacant plots at the moment. This would serve as a strong incentive for boosting Japanese investment in Bangladesh as currently investment proposals from Japan worth $1.2 billion are pending with the Board of Investment (BOI) in Bangladesh for a long time.

Concluding remarks

Bangladesh and Japan have had the warmest of bilateral relations from the former’s very birth. Over the years, increased economic, social and cultural exchanges have only strengthened this bond further. In line with that history, it can safely be hoped that this recently concluded visit by the Prime Minister of Bangladesh will add new dimensions to the existing friendship and cooperation between the two Asian nations.