“BIG-B for Shared Prosperity” a positive initiative both for Bangladesh, region: Prof Shahab

“The new framework moves the old Matarbari-centred idea into a wider frame of connectivity, energy resilience, rules-based investment and maritime safety. That is a logical and sensible direction for a country that wants to become a logistics and industrial hub,” he told UNB on Saturday in response to a question.

Prime Minister Tarique Rahman and Japan’s Prime Minister Sanae Takaichi agreed to upgrading the concept of “Bay of Bengal Industrial Growth Belt (BIG-B)” into a new strategic cooperation initiative, “BIG-B for Shared Prosperity”, under the four pillars - strengthening connectivity; preparedness for natural disasters and geopolitical risks; public-private partnership for co-creation of economic growth opportunities and rule-making; and cooperation for peace and stability.

They also agreed to working together to make the Bay of Bengal region, with Bangladesh as its hub, a “region of shared prosperity.”

“Japan is a crucial actor in Bangladesh’s economy, as a development partner, a source of infrastructure finance and technology, and an investor with a long record of delivery. The strategic logic matters just as much,” said Shahab, who also serves as a professor at the Department of International Relations of Jahangirnagar University.

In recent years, he thinks, the politicisation of trade routes, and at times of trade itself, in Bangladesh’s neighbourhood has left us with sobering lessons about regional connectivity.

Japan’s role in building our eastward connectivity towards Myanmar and Southeast Asia through BIG-B, is therefore crucial, said the foreign affairs analyst.

“It also opens a path towards Southeast Asia, and towards a free and open Bay of Bengal all the way to the Strait of Malacca,” said Prof Shahab, noting that Bangladesh and Japan share a common interest in that stretch of water, stabilising Myanmar through trade and connectivity, and the two sides should coordinate closely on it.

A more rewarding partner

He said Japan will find Bangladesh a more rewarding partner if it engages the country on its own merits, with its own geography, priorities and agency, and not through the lens of any other neighbour or partner.

At the same time, the initiative links economic and security cooperation through patrol boats, maritime awareness and cybersecurity.

“Both Dhaka and Tokyo have an interest in presenting this clearly as a partnership for resilience and shared prosperity, which is how it is best understood by Bangladesh’s strategic, trading and other development partners,” Prof Shahab said.

He said delivery would decide everything. ‘Stability at home and long-standing concerns about our investment climate remain the real tests, which is why public-private partnerships and an empowered private sector are essential for growth.”

Prof Shahab said the Prime Minister himself acknowledged in Tokyo that Japanese firms have flagged energy supply, infrastructure, and customs and tax predictability, and those are the same obstacles other investors meet.

He said Japan’s new loan to improve the investment environment is welcome, but the real fix starts at home, with better investment-related institutions and a wider overhaul of others, some of which are too outdated for today’s trading patterns and regimes.

“That is painstaking work and needs political will, proper staffing and institutional restructuring. Dhaka should also be cautious about taking on too many geostrategic commitments at once,” said Prof Shahab.

Prime Minister Takaichi stated that upcoming private investment by Japanese businesses in Bangladesh is projected to mount up to one trillion yen (about US$6.34 billion) over the next five years, with an expected 200,000 jobs to be created, and expressed her intention to send a business mission to Bangladesh in the near future.

In May 2014, former Japanese Prime Minister Shinzo Abe announced to provide approximately US$6 billion, mainly in ODA loans, in 4 to 5 years.

What is "BIG-B"?

Bangladesh is located with embracing the Bay of Bengal from the sea point of view, and in-between South Asia and South-East Asia from the land point.

Under the current global economic power shift toward the Indo-Pacific Ocean region, this geographical advantage will provide a unique opportunity for the country to play a node and hub role in regional as well as inter-regional matters.

This also suggests the Bangladesh's renewed focus on "Look East" policy to exploit the vibrant economic growth from Pacific to Indian Ocean, according to the Japan International Cooperation Agency (JICA).

The BIG-B initiative is to accelerate industrial agglomeration along the Dhaka-Chittagong-Cox's Bazar belt area and beyond, encompassing developing economic infrastructure, improving investment environment and fostering connectivity.

BIG-B foresees Bangladesh transcending its national borders to become a heart of the regional economy and providing a gateway for both South Asia and South-East Asia to step into a closer interregional relation, so that she may reshape herself as a sparkling trading nation deeply incorporated into inter-regional and global value chains.

In light of the rapidly changing global situation, a more prevalent supply chain risk, rapid technological innovation and mounting social issues, the two countries agreed to upgrade BIG-B into “BIG-B for Shared Prosperity” as an initiative of strategic cooperation in the exclusive partnership between Japan and Bangladesh, aimed at enhancing the resilience and preserving each country’s freedom of decision.

The BIG-B for Shared Prosperity positions Bangladesh as a hub to promote common prosperity and to contribute to mutual growth, said the Japanese Ministry of Foreign Affairs.

Dhaka’s perspective on BIG-B

State Minister for Foreign Affairs Humaiun Kobir on Friday said Bangladesh and Japan discussed the Bay of Bengal Industrial Growth Belt (BIG-B) concept exclusively in the context of their bilateral economic partnership, ruling out any discussion involving a third country.

“There is no reference to any third country in the joint statement. There is no reference to the Bay of Bengal here. We will not discuss any third country in our discussions with Japan. That’s clear. And we did not do that,” he said, referring to the joint statement issued following Prime Minister Tarique Rahman’s four-day official visit to Japan.

Kobir said Bangladesh had made it clear to Japan that the discussions would focus on bilateral relations, particularly economic ties.

“We made it very clear in our discussions with the government of Japan that we came here to discuss bilateral relations between Bangladesh and Japan, economic relations in particular,” he said while responding to a question about whether BIG-B could be expanded into a regional industrial supply chain centred around the Matarbari deep seaport, involving Nepal, Bhutan and India's Seven Sisters.

Kobir said Bangladesh understands its responsibility when it comes to engaging other countries in regional initiatives.

“If we have to discuss anything else, then the respective representatives of those countries must be at the table, and we must be sitting across the table with them as well,” he said.

Following the visit, an Indian journalist during a regular media briefing in New Delhi asked whether Bangladesh, India and Japan could collaborate.

In response, Indian Ministry of External Affairs Spokesperson Randhir Jaiswal said India has a very strong partnership with Japan and is pursuing several initiatives involving Japan and its northeastern region.

“On the question of Northeast and Japan and India, yes, we have very strong partnership with Japan. We also have several initiatives that are going on involving Northeast and Japan, and we would like to further strengthen these linkages,” he said.

Jaiswal said work was underway to further strengthen the India-Japan economic and technological partnership, with the northeastern region also receiving attention as part of the broader engagement, reports UNB.