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It is evident that NGOs, too, have played crucial roles in integrating Bangladesh into the world capitalist system by way of facilitating the operations of multinational corporations on the one hand, and on the other, by way of managing to pacify social discontent and conflicts from time to time through short-term reform measures, while thus repeatedly obscuring the sites of actual material contradictions writes Melissa Hussain
The role of NGOs in Bangladesh
ALTHOUGH the World Bank so far has constituted our discussion, it should be noted here that over the past four decades, Bangladesh has had plenty of 'development' projects and, ironically enough, accumulated a huge international debt for achieving this so-called development. During this particular process, of course, an immense number of consultancy firms, think tanks, and particularly non-governmental organisations emerged, contributing to the process of integrating Bangladesh into the world capitalist system.
From the mid-1970s, NGOs in Bangladesh experienced rapid growth, both in terms of numbers and size (Edwards and Hulme, 1992). Estimates of the number of NGOs in Bangladesh vary widely depending on how they are defined. Interestingly, one common way to quantify the number of specialized development NGOs is to determine the number receiving foreign funds, information available from the government's NGO Affairs Bureau. (152)
But regardless of how they are defined, what do these NGOs do in Bangladesh? Buckland makes a few observations which I think are valid:
Such activities might look attractive and even people-oriented in the first place. But, as I will show later in the case of the Grameen Bank in particular and also in the case of other NGOs, the NGO model has been considered ideal in certain cases by the international financial institutions themselves.
"He (Bangabandhu) faced more problems than his contemporary leaders," Tully said in an interview at his New Delhi residence ahead of Bangabandhu's 35th martyrdom anniversary.
Tully said, "He had bigger problems-the nation was broken, then there was global economic recession, coupled with rise of prices of petroleum products."
"There was the open border with India making it impossible to stop smuggling . . . he had faced more problems than any other leaders of his time," added Tully.
While revisiting memory lanes recalling his personal acquaintance with Bangabandhu particularly after the independence, the British journalist described him as a leader who was "extremely friendly and open, a man who loved his people most."
"I found him extremely friendly and open, he was a very friendly man, a very big person in every sense of the term of the word," the elderly British journalist recalled.
He also recalled the memories of Bangabandhu's public meetings, which he had attended and said, "He (Bangabandhu) had a wonderful voice that could mesmerise the crowd. I could feel from their reactions when Sheikh Shaheb used to address public meetings."
Tully recounted that he was deeply saddened 35 years ago on hearing news of Bangabandhu's assassination when he was working at the London head office of the radio service. He was expelled from India some time before following a state of emergency in 1975 proclaimed by then premier Indira Gandhi.
"I was working in the night shift when the news of his brutal assassination came. I was obviously very sad as Bangabandhu had been very kind to me," said Tully.
"Personally I was sad because when I met him for the first time, I saw the high hopes and optimism he had for his people and his belief in the future of Bangladesh," said the journalist.
During his visit after Bangladesh's independence, Mark Tully was to make some reports on the new-born country and sought an interview with the charismatic leader of the new-born Bangladesh.
"Of course I wanted to interview the Bangladesh leader. But I never knew he would grant permission to actually see me so soon. I was told Sheikh Saheb was interested to meet me. We had a long discussion and he spoke a great deal about the new-born Bangladesh," he added.
"Sheikh Shaheb told me about his determination to establish secular democracy in Bangladesh and all about his dreams."
Tully recalled that Bangabandhu, at the very outset of the interview, thanked him for his contribution to the Liberation War while he replied saying "I merely reported the news, many other journalists had done like me."
But Bangabandhu would not agree and at the end of the conversation he presented him with a painting, which "is still with me."
"I was very much touched by this gesture (the gift) and you might be knowing we (BBC journalists) are not supposed to accept gifts."
"I told my BBC head office in London about the gift and informed them that I would put the painting in the BBC office in Delhi, which I did."
At the end of the interview Sir Mark Tully showed the painting hung in his living room. It was a painting by artist Muzimul Azim, in 1973.
Asked how he managed to do so, "I simply took it from the office," Tully quipped with a smile as the rare gift from Bangabandhu would remain a treasure to him for a long time.
Tully, recipient of 'Padmashri Award' from the Indian Government in 1992, said he had met the Bangladesh leader several times after that. But he could not recollect the number of times that Bangabandhu told him that he was upset with the mountain of problems.
Why did Pranab meet them?
After his meeting with Prime Minister Sheikh Hasina, the visiting Indian minister separately met up with three senior leaders of Awami League. What was the agenda?
by ANWAR PARVEZ HALIM
Speculations abound concerning the recent whirlwind visit of the Indian Finance Minister Pranab Mukherjee. Did he come to Dhaka just to be present at the signing of the one billion dollar credit deal, or was their some hidden agenda behind the visit? Analysts are scrutinizing the matter with attention to microscopic detail. And when Pranab Mukherjee met with three senior reformist leaders of Awami League, who have been sidelined for long, this gave rise to further speculations. There is also some curiousity as to whether the Indian Minister had any special new message for Prime Minister Sheikh Hasina.
India had come forward to help Bangladesh in its liberation struggle of 1971, but 39 long years have passed. India's foreign policy, leadership and politics have quite a new dimension now. Much water has passed through the Ganges since then and circumstances have undergone a sea change.
In the fifties, the fundamental message of US Secretary of State George Marshall's doctrine was: "There are no permanent friends, only interests." India apparently also adheres to such a doctrine and its interventions in Sri Lanka, Nepal and other South Asian countries are no secret. So when, after meeting with Sheikh Hasina, Pranab Mukherjee went on to meet three senior leaders of the ruling party, much significance was read into the visit. What did they discuss? What was the agenda?
Meeting the three leaders
Pranab Mukherjee held this meeting with the three leaders at the residence of the Indian High Commissioner. The High Commissioner was not present -- it was just a cosy foursome between Pranab and Tofail, Amu and Suranjit.
There is possibility of Indian Prime Minister Manmohan Singh visiting Bangladesh in October. He may inaugurate the transit for Indian goods to be taken from Akhaura through Ashuganj. Observers feel that Pranab came to ensure the implementation of the bilateral agreements between India and Bangladesh before this visit. They feel he has put pressure on Sheikh Hasina to accelerate the implementation of the deals and this too was the agenda of his meeting with the three leaders.
A veteran leader of Awami League tells PROBE, there are both positive and negative aspects of Pranab's meeting with the three senior leaders. It is negative, in a sense, for Sheikh Hasina, but positive for the three, Pranab has given importance the three leaders who have been snubbed in no uncertain terms by Hasina. As a result, the existing division within Awami League has become more apparent to its leaders and workers. It also indicates that the reformists are strong.
These deprived leaders long ago had drafted reforms in the party constitution. When Hasina was behind bars during the last caretaker rule, these leaders were pioneers of reform. They became known as the 'reformists'. These leaders are Razzak, Amu, Tofail and Sunranjit, whose popular acronym now is RATS. But they have had to pay for their reformist stance when Hasina came to power and reined them in. They may be become MPs, but not ministers. Their powers were curtailed. These leaders were fuming within themselves and their nationwide followers were crestfallen. These four heavyweight leaders had become dead horses virtually.
But now things have taken a turn. Hasina may have pushed them to one side, but Pranab has given them importance. Analysts feel this may be an indication that positions of significance await them in the offing.
A reformist leader says, this visit by Pranab has given the supporters of these leaders fresh impetus. The fact that these leaders were neglected for so long, has simply been emphasized further.
Some analysts state that the reformist move by these leaders was a product of the outside initiators of 1/11. That is why, in time, they are likely to be brought in from their present state of obscurity. Some feel Pranab's move aimed at closing the gap between the government and these reformists.
The bottom line is not any message that Pranab delivered to the three leaders, but the fact that he met them. This in itself is significant.
Pranab's package
Sign, sealed and delivered
by Badiul Alam
The Indian credit line of US$1 billion has stirred fresh debate in the country's political arena. The deal was inked on August 7 during the four-hour brief visit of Indian Finance Minister Pranab Mukherjee. Secretary, Economic Relations Division, Mosharraf Hossain Bhuiyan and Chairman Exim Bank of India TCA Ranganathan signed the deal in presence of Finance Minister Abul Mal Abdul Muhit, Food Minister Dr. Abdur Razzaque, Pranab Mukherjee, Prime Minister's Economic Adviser Dr. Mashiur Rahman and other senior officials of the two sides.
The credit bears 1.75 per cent interest per annum with 0.5 per cent service charge for non-utilization of the fund in time. Multilateral development partners like the World Bank and the Asian Development Bank (ADB) impose such service charges. India always opposed the imposition of such service charges in the international forum, but have used the same instrument when in comes to Bangladesh whom they consider as one of their favoured nations.
The credit line from a single source is big, but it is not so big compared to the size of Bangladesh's economy or GDP, which is more than US$90 billion. In taka currency the size of Indian credit is around seven thousand crore. Such an amount could be organized from the internal sources. For example, to implement the Jatrabari-Gulistan flyover, an investment of around 1,400 crore would be required, which is being organized from our internal sources.
Bangladesh takes credit from various sources including the WB and the ADB. So, there is no harm to take loan from India, which is our close neighbor and both Bangladesh and India are linked in many ways including culture and economy. Despite that, controversy or the debate has been developed over the Indian credit line. The opposition BNP and its allies have demanded scrapping of the loan deal which they say goes against the national interests.
The ruling circle and its allies, especially a section of the media upholding Indian causes in Bangladesh, have started lauding the deal and lavishing it with elaborate praise.
There is reason for the debate developing over the Indian credit line because it bears both political and economic significance. Through this deal the ground breaking of the much talked-about transit or corridor has taken place. A good number of projects that would be financed from the credit line facilitate transit or corridor to India, establishing easy commercial and other links with the landlocked Seven Sister north-east Indian states. Indian economy and business would derive more dividends from this credit line compared to Bangladesh's business and economy. The 20-year tied credit line could be used as an instrument of pressure in the future against Bangladesh who may not be as friendly to Delhi as the present regime of the country.
Like the political circles, quarters among the civil society are divided over the issue. Former caretaker government Adviser and former Chairman Regulatory Reforms Commission termed the credit line as 'Indian biased' because Bangladesh would have to buy Indian products and services without having any international competition, which might compromise both price and quality. Dr. Akbar Ali Khan also said that some of projects that would be financed from this credit line would not bear any benefit to Bangladesh, rather would be providing transit or corridor to India.
On the other hand former ESCAP executive Rahmatullah who is know as an upholder of the Indian causes in Bangladesh said that the projects dedicated to facilitate transit to India would have immense benefit for Bangladesh's economy. He, however, could not reply whether infrastructure that would be developed facilitating transit or corridor would have enough traffic to maximize the economic benefit of Bangladesh.
Among the projects, five or six projects are not directly related with facilitating transit or corridor to the India. The remaining projects are directly or indirectly linked up with the transit or connectivity facilities.
As sovereign nation Bangladesh would take loan from any source for serving its economy. But this is the first time in the history of Bangladesh; credit has been taken for serving the direct interest of our neighbor India.
In the past while raising the transit or corridor demand, the Indian side hinted that cost of infrastructure that would be required for facilitating transit or corridor would be borne by them. But now it seems the entire infrastructure cost for facilitating the transit or corridor to India will be borne by Bangladesh. The question is, whose interest is Bangladesh government serving?
The nature of the Indian credit line deprives Bangladesh from international competition for procuring railway engines, coaches, wagon etc. and construction services. This is likely to deprive Bangladesh of the best price and best quality of service.
The price of Indian products and Indian construction services would be virtually determined by them and Bangladesh would have to accept the same. Indian constructors would be employed for implementation of the different infrastructure projects including the development of the container port at Ashuganj, construction of two railway bridges, overpass, flyover and road networks. Bangladesh would be deprived of the best construction services in the absence of the international competition. Experience indicates that the Indian firms would protect their national interests while providing services to Bangladesh.
Very recently an Indian firm, Simplex International Ltd, was given the job for construction of the Jatrabari-Gulistan Flyover by the Orion Group. For construction purposes of the flyover, around 100 thousand cubic meters of hard rock would be required. The Indian company decided to import that same from India despite the fact that good quality hard rock is available at Bangladesh's Maddhypara Hard Rock Mine.
The fact is that India has offered the US$1 billion credit for marketing its products and services in Bangladesh.
Bangladesh is likely to face huge losses
Dr Akbar Ali Khan raised a pertinent question of rate of return from the infrastructure that would be developed from the Indian credit. According to him the per capita income of the Indian landlocked states is very low and demand of goods and services are also low. Under these circumstances, would it be possible to have good economic returns from the infrastructure? If not, then Bangladesh will have to incur huge losses, which might cripple the repayment capacity. Despite the various hardships, Bangladesh has never failed to address its international obligations and commitments.
Credit of be used to facilitate Indian power business
An amount of US$150 million from the US$1 billion credit would be used for development of 100-kilometer long power interconnection facilitating the Indian power business with Bangladesh. Earlier, the two sides signed an agreement regarding bulk power business. India would export 500-mw electricity to Bangladesh to augment the quantum of power supply. A long 142 kilometer power inter connection would have to be developed to translate the power business in reality. Out of 142 kilometers, 42 kilometers fall within Bangladesh territory and 100-kilometer fall within Indian territory. It was thought that the Power Grid Company of Bangladesh would responsible for the development of the inter connection within Bangladesh territory and the interconnection within Indian Territory would be developed by the respective Indian Agency.
While signing the power agreement, it was not mentioned how the expenditure of the interconnection would be met. It was thought that the respective governments would bear the interconnection costs. Accordingly, the Power Grid Company of Bangladesh made credit line with ADB for development of 42-kilometer long interconnection within its domain.
After inking the Indian credit deal, it was found out that that the cost of the Indian interconnection facilitating the Indian power business with Bangladesh would have to be borne by Bangladesh. The Indian Agency would spend Bangladesh money and Bangladesh agency would have nothing to say.
What has Bangladesh gained?
After the election victory of the grand alliance in the last general election, India has taken systematic moves to address all of its concerns, which include security and transit. Bangladesh responded positively. First there was the crack down on the fugitive ULFA leaders who were caught and handed over to India. Now the transit issue is going to be resolved through the utilization of the Indian credit line. But in exchange what has Bangladesh gained?
Bangladesh's main concern is the sharing of water of all common rivers with special emphasis on the sharing of Teesta waters. Except promises, nothing could be attained in this field. During the brief visit, Indian Finance Minister Pranab Mukherjee could not say definitely when the Teesta water sharing would take place. He simply reiterated the earlier promise that the Indian is considering water sharing of the Teesta River.
Bangladesh could not stop border killings by the Indian Border Security Forces (BSF). So far, one-sided goodwill and friendship has been developed between Dhaka and Delhi with the odds weighing heavily in Delhi's favour.
Projects to be financed from the Indian credit line