8 May 2020, NIICE Commentary 4571
Md. Zaki Faisal
The Belt and Road Initiative (BRI) is one of the largest infrastructural and investment projects initiated by China, which envisions to address the expanding infrastructure needs across over 60 countries, enhance regional integration, promote economic development and improve multi-modal connectivity. Out of the 232 indicators in Sustainable Development Goals (SDG), Bangladesh has identified to work on until 2020. These priority indicators are mostly related with the 5 themes of the BRI, as Bangladesh is an enthusiastic signatory to the BRI.
Dhaka-Beijing Cooperation on BRI
Based on the BRI, Bangladesh has developed cooperation with Beijing, where the key focus areas are infrastructure, economy and digital financial inclusion. The Padma Bridge Rail Link Project is one of the major infrastructural cooperation projects of Bangladesh with China, where 85 percent of the contract agreement is being provided by the Government of China. Apart from that, the Dhaka- Chittagong High-speed Railway and Power Plant in Payra are also some significant collaborative projects with China. This cooperation will foster the economy, increase employment opportunities and improve Intra-country connectivity, and most importantly, it can help Bangladesh to achieve industry, innovation and infrastructure. This collaboration with China is helping Bangladesh, directly and indirectly, to increase GDP, foreign investment growth and establish multilateral economic cooperation. In line with this strategy, the Dhaka stock exchange sold a 25 percent stake to Shanghai and Shenzhen stock exchanges and provided support to China-based companies by giving them access to a part of the 750-acre industrial park which is being built in Bangladesh. It will help Bangladesh to mitigate the challenges of decent work and economic growth. Besides, some popular digital payment systems of Bangladesh have already collaborated with China’s Alipay and UnionPay for creating a diversified payment system. This collaboration will create scope for faster and cheaper monetary services, explore e-commerce activity and enable access to financial services for all, through digital media.
Challenges Faced by Sustainable Development in Bangladesh
A few years back, Bangladesh did its Voluntary National Review (VNR) and it identified several challenges regarding implementing the SDGs. One of the major challenges for Bangladesh is the mobilisation of resources required for the implementation of sustainable development policies. A study reveals that Bangladesh would need an additional investment of USD 928 billion or USD 66 billion on an annual basis to achieve the SDGs.
Another crucial challenge is identifying the vulnerable communities, due to the lack of disaggregated data. In terms of hunger reduction, limited use of sustainable agriculture and fulfilling requirements of Agro-Processing Industries are the key challenges towards achieving the 2030 Agenda. Providing skilled attendance during births, and addressing the communicable and non-communicable diseases prevent in the country are the major challenges in achieving good health and well-being, in connection with good Health and well-being. In order to ensure gender equality, addressing violence against women and ensuring a safe and secured environment for women at the workplace emerge as the key challenges. On the other hand, the implementation of mega-projects and managing huge financing from multiple sources are the major challenges to attain sustainable industry, innovation and infrastructure. Similarly, depletion of fisheries and environmental degradation (chemical and thermal pollution) are the key challenges in securing life below water. However, the key strategy to address these challenges and achieve the SDGs is to work in collaboration and in close partnership with the other countries, the BRI, UN entities and other development partners.
Potential Impact of BRI on SDGs in Bangladesh
BRI can contribute significantly to address the mentioned challenges and foster the progress of Bangladesh towards achieving the SDGs, through policy coordination and connectivity. BRI can strengthen regional connectivity, as well as widen the scope for Government to Government (G2G) partnerships in large infrastructural and multilateral projects. This can be directly linked to partnership for the goals. Also, BRI can focus on improving the quality of roads, urban setups and rail transports, leading to attainment of sustainable cities and communities.
One of the key themes of the BRI is unimpeded trade and investment. With the help of BRI, Bangladesh can increase investments in the power and energy sectors, which can enable the country to foster trade relations in energy with China and other BRI member countries. These initiatives will also boost up exports, while there will be an increase in Foreign Direct Investment from China, leading to an overall economic betterment in Bangladesh. This theme has a crystal-clear correlation with poverty reduction, fighting hunger and reduced inequalities, among others.
Another theme under BRI – Financial Integration, can help attain the financial inclusion of the mass people and the poor, using better information technology. Better financial inclusivity is directly linked to income-generating activities and easy access for the people living in remote areas. Bangladesh has a population of 160 million people, but almost 50 percent of the population doesn’t have access to financial services. To ensure access to financial services for all, Bangladesh has established 5,000+ Digital Centers across the country and has introduced mobile banking, agent banking and micro-ATMs. Integration with international payment systems will enable financial inclusivity for more and more people. Moreover, it will provide easier access to global e-commerce sites to women and elderly population.
The third theme under BRI, that of people-to-people bonding, can increase medical tourism from Bangladesh to countries leading in providing medical-services, like Thailand, Singapore, India, and others. The BRI can also boost up the tourism sector of Bangladesh and increase scope for scholarships for higher education. Thus, it can escalate the progress of good health, decent work and economic growth, responsible consumption and production and quality education.
Along with the above potential areas, Bangladesh can be benefitted from the BRI for establishing a stable trade pattern, by widening net exports through explorations in new markets, and expanding employment opportunities through infrastructural development. This will also help Bangladesh in successful sustainable LDC (Less-Developed Country) graduation, to become a developed country by 2041.
The Case of ‘Bangladesh 100 Economic Zones’ is one the best examples of the greater impact of BRI. Taking BRI as highly important, Bangladesh has initiated the development of 100 Economic Zones on the communication lines across BRI, which will create 10 million job opportunities by 2030. This initiative will have a significant socio-economic and infrastructural impact for the growth of Bangladesh as well. Improved road connectivity and technological advancement will enable more foreign investment, and expand industrialisation. Most importantly, it will reduce the rural-urban gap throughout the country.
Cohesive Way Forward for Bangladesh
While there is a lot of potential to make a positive result through the BRI, the approach does not seem to be easy. Geopolitical and bilateral tensions related to the BRI are the biggest challenges in implementation, as was evident in the disjuncture of the Bangladesh-Myanmar-India-China (BCIM) Economic Corridor from the overall BRI. The India-China relationship and the strained Bangladesh-Myanmar relationship over the Rohingya crisis, are potential challenges to overcome. On the other hand, the lack of time is a big concern regarding the completion of mega-projects because Bangladesh still has backlogs in terms of implementing huge infrastructural projects. The threat to environmental protection, as opposed to the implementation of mega-projects, is also a million-dollar dilemma for Bangladesh. To mitigate these challenges, it is essential to coordinate on economic development strategies and policies. For the timely implementation of projects, the government should ensure good governance and put more emphasis on local job creation. Along with proper justification on all major constructions, the protection and restoration of biodiversity and natural resources also needs to be taken special care, for sustainable and progressive development.
