Chapter: One

Introduction
1.1 Background of the study:
We are the student of Bangladesh University of Business & Technology (BUBT). For
achieving the BBA degree we have to conduct some courses. According to the course
conduct now we are completing Human Resource Management Practices in
Bangladesh. Human Resource Management Practices in Bangladesh is a practical and
theoretical course. Beside the theoretical knowledge, practical knowledge is very
much important for getting appropriate knowledge about the research procedure. In
this process we want to conduct a research which is “Globalization and Transit”. Our
honorable teacher Mr. Syeedul Al-Amin is assigned us this topic.
Business schools typically strive to meet two goals: the exploration of knowledge
through research and the exploitation of knowledge through instruction. Over the past
few years, the popular press routinely has published rankings of business schools
which focus only on instruction. This is the great opportunity to know about this
industry very closely through our program.

1.2 Objective of the study:

As a business executive of the future, we should have to gather more experience
beside our study. We should not concentrate our lessons only in classroom but to
implement it in practical life that will help us in our professional life. A clear
objective help in preparation of well decorate report in which others take right type of
decisions. So, identifying objectives is very much important.
Here the objectives of the report is categorized in two parts, they are-
1.2.1 Broad/ General Objectives
1.2.2 Short/ Specific Objectives

1.2.1 Broad/ General Objectives:

The broad objective is to prepare a report on “Globalization and Transit” as the partial
requirement of BBA program.
1.2.2 Short/ Specific Objectives:
However, besides the broad objectives, the study is an attempt to fulfill the following
objectives:
 To analyze the significance of Globalization.
 To study the opportunities and challenges are creates for globalization.
 To study globalization creates how much impact on transit.
 To provide necessary suggestions for solving the problems.
 To gather more knowledge and experience about these sectors.
1.3 Methodology of the study:
1.3.1 Type of research:
This is an exploratory and descriptive research on Globalization and Transit.

1.3.2 Sources of data:

The study is based on both secondary and primary sources of data. The secondary
sources which have been reviewed are: books, journals, reports, and data from various
official and unofficial sources. The primary sources are personal observations.
1.3.3 Data analysis:
We analyzed the data by averaging the response of the sample. Most of the analysis
and discussions of this study have been made on the basis of the information obtained
from the interview. Besides, observation of the interviewers has also been an
important component of analysis and discussion.

1.4 Scope of the study:

Mainly we have tried to focus on the following factors:
 Current scenario of Globalization.
 Reasons for a healthy growth
 Reasons for having comparative advantages in the world market.
 Economical and financial contribution of globalization in Bangladeshi
economy.
 Beside these, we also brought several foreign benchmarks and statistics for
doing the research work in a better way.
The detailed analysis of each segment was beyond the scope of our report. We only
focused on the general overview of this subject.

1.5 Limitation of the study:

Since our study is based on both primary and secondary data, there is a possibility of
getting fake information. If the surveyed personnel provide us with any fabricated
information about their opinion of their organization, then the report findings may be
erroneous. Above all, this study is weak in some points. The notable ones are as
under:
 Lack of experience in this field.

 Lack of proper authority to conduct the interview program.

 Hard to reach to get the respondent help.

 Lack of practical skills, and so forth.

 Chapter: Two

Theoretical Aspects
2.1 What is Globalization?
According to the Oxford English Dictionary, the word 'globalization' was first
employed in a publication entitled Towards New Education in 1952, to denote a
holistic view of human experience in education. An early description of globalization
was penned by the American entrepreneur-turned-minister Charles Taze Russell who
coined the term 'corporate giants' in 1897, although it was not until the 1960s that the
term began to be widely used by economists and other social scientists. The term has
since then achieved widespread use in the mainstream press by the latter half of the
1980s. Since its inception, the concept of globalization has inspired numerous
competing definitions and interpretations, with antecedents dating back to the great
movements of trade and empire across Asia and the Indian Ocean from the 15th
century onwards.
The United Nations ESCWA says globalization "is a widely-used term that can be
defined in a number of different ways. When used in an economic context, it refers to
the reduction and removal of barriers between national borders in order to facilitate
the flow of goods, capital, and services and labor... although considerable barriers
remain to the flow of labor... Globalization is not a new phenomenon. It began
towards the end of the nineteenth century, but it slowed down during the period from
the start of the First World War until the third quarter of the twentieth century. This
slowdown can be attributed to the inward-looking policies pursued by a number of
countries in order to protect their respective industries... however, the pace of
globalization picked up rapidly during the fourth quarter of the twentieth century.
HSBC, the world's largest bank, operates across the globe. Shown here is the HSBC
Global Technology Centre in Pune, India which develops software for the entire
HSBC group.
Tom J. Palmer of the Cato Institute defines globalization as "the diminution or
elimination of state-enforced restrictions on exchanges across borders and the
increasingly integrated and complex global system of production and exchange that
has emerged as a result."
Thomas L. Friedman has examined the impact of the "flattening" of the world, and
argues that globalized trade, outsourcing, supply-chaining, and political forces have
changed the world permanently, for both better and worse. He also argues that the
pace of globalization is quickening and will continue to have a growing impact on
business organization and practice.
2.2 Effects of Globalization:
Globalization has various aspects which affect the world in several different ways-
1. Industrial- emergence of worldwide production markets and broader access
to a range of foreign products for consumers and companies. Particularly
movement of material and goods between and within national boundaries.
International trade in manufactured goods increased more than 100 times
(from $95 billion to $12 trillion) in the 50 years since 1955. China's trade with
Africa rose sevenfold during 2000-07 alone.

2. Financial - emergence of worldwide financial markets and better access to

external financing for borrowers. By the early part of the 21st century more
than $1.5 trillion in national currencies were traded daily to support the
expanded levels of trade and investment. As these worldwide structures grew
more quickly than any transnational regulatory regime, the instability of the
global financial infrastructure dramatically increased, as evidenced by the
financial crisis of 2007–2010.

3. Economic - realization of a global common market, based on the freedom of

exchange of goods and capital. The interconnectedness of these markets,
however, meant that an economic collapse in one area could impact other
areas. With globalization, companies can produce goods and services in the
lowest cost location. This may cause jobs to be moved to locations that have
the lowest wages, least worker protection and lowest health benefits. For
Industrial activities this may cause production to move to areas with the least
pollution regulations or worker safety regulations. Almost all notable
worldwide IT companies have a presence in India. Four Indians were among
the world's top 10 richest in 2008, worth a combined $160 billion. In 2007,
China had 415,000 millionaires and India 123,000.

4. Job Market- competition in a global job market. In the past, the economic
fate of workers was tied to the fate of national economies. With the advent of
the information age and improvements in communication, this is no longer the
case. Because workers compete in a global market, wages are less dependent
on the success or failure of individual economies. This has had a major effect
on wages and income distribution.

5. Health Policy - On the global scale, health becomes a commodity. In

developing nations under the demands of Structural Adjustment Programs,
health systems are fragmented and privatized. Global health policy makers
have shifted during the 1990s from United Nations players to financial
institutions. The result of this power transition is an increase in privatization in
the health sector. This privatization fragments health policy by crowding it
with many players with many private interests. These fragmented policy
players emphasize partnerships and specific interventions to combat specific
 problems (as opposed to comprehensive health strategies). Influenced by
global trade and global economy, health policy is directed by technological
advances and innovative medical trade. Global priorities, in this situation, are
sometimes at odds with national priorities where increased health
infrastructure and basic primary care are of more value to the public than
privatized care for the wealthy.

6. Political - some use "globalization" to mean the creation of a world

government which regulates the relationships among governments and
guarantees the rights arising from social and economic globalization.
Politically, the United States has enjoyed a position of power among the world
powers, in part because of its strong and wealthy economy. With the influence
of globalization and with the help of the United States’ own economy, the
People's Republic of China has experienced some tremendous growth within
the past decade. If China continues to grow at the rate projected by the trends,
then it is very likely that in the next twenty years, there will be a major
reallocation of power among the world leaders. China will have enough
wealth, industry, and technology to rival the United States for the position of
leading world power. Among the political effects some scholars also name the
transformation of sovereignty. In their opinion, 'globalization contributes to
the change and reduction of nomenclature and scope of state sovereign
powers, and besides it is a bilateral process: on the one hand, the factors are
strengthening that fairly undermine the countries' sovereignty, on the other –
most states voluntarily and deliberately limit the scope of their sovereignty'.

7. Informational - increase in information flows between geographically remote

locations. Arguably this is a technological change with the advent of fiber
optic communications, satellites, and increased availability of telephone and
Internet.

8. Language - the most popular first language is Mandarin (845 million

speakers) followed by Spanish (329 million speakers) and English (328
million speakers). However the most popular second language is undoubtedly
English, the "lingua franca" of globalization:

 About 35% of the world's mail, telexes, and cables are in English.

 Approximately 40% of the world's radio programs are in English.

 English is the dominant language on the Internet.

9. Competition - Survival in the new global business market calls for improved
productivity and increased competition. Due to the market becoming
worldwide, companies in various industries have to upgrade their products and
use technology skillfully in order to face increased competition.
10. Ecological - the advent of global environmental challenges that might be
solved with international cooperation, such as climate change, cross-boundary
water and air pollution, over-fishing of the ocean, and the spread of invasive
species. Since many factories are built in developing countries with less
environmental regulation, globalism and free trade may increase pollution and
impact on precious fresh water resources (Hoekstra and Chapagain 2008). On
the other hand, economic development historically required a "dirty" industrial
stage, and it is argued that developing countries should not, via regulation, be
prohibited from increasing their standard of living. London is a city of
considerable diversity. As of 2008, estimates were published that stated that
approximately 30% of London's total population was from an ethnic minority
group. The latest official figures show that in 2008, 590,000 people arrived to
live in the UK whilst 427,000 left, meaning that net inward migration was
163,000.

11. Cultural - growth of cross-cultural contacts; advent of new categories of

consciousness and identities which embodies cultural diffusion, the desire to
increase one's standard of living and enjoy foreign products and ideas, adopt
new technology and practices, and participate in a "world culture". Some
bemoan the resulting consumerism and loss of languages. Also see
Transformation of culture. Spreading of multiculturalism, and better individual
access to cultural diversity (e.g. through the export of Hollywood). Some
consider such "imported" culture a danger, since it may supplant the local
culture, causing reduction in diversity or even assimilation. Others consider
multiculturalism to promote peace and understanding between people. A third
position that gained popularity is the notion that multiculturalism to a new
form of monoculture in which no distinctions exist and everyone just shift
between various lifestyles in terms of music, cloth and other aspects once
more firmly attached to a single culture. Thus not mere cultural assimilation as
mentioned above but the obliteration of culture as we know it today. In reality,
as it happens in countries like the United Kingdom, Canada, Australia or New
Zealand, people who always lived in their native countries maintain their
cultures without feeling forced by any reason to accept another and are proud
of it even when they're exceptive of immigrants, while people who are newly
arrived simply keep their own culture or part of it despite some minimum
amount of assimilation, although aspects of their culture often become a
curiosity and a daily aspect of the lives of the people of the welcoming
countries.

12. Social - development of the system of non-governmental organizations as

main agents of global public policy, including humanitarian aid and
developmental efforts.

13. Technical- Development of a Global Information System, global

telecommunications infrastructure and greater transformer data flow, using
 such technologies as the Internet, communication satellites, submarine fiber
optic cable, and wireless telephones. Increase in the number of standards
applied globally; e.g., copyright laws, patents and world trade agreements.

14. Legal/Ethical- The creation of the international criminal court and

international justice movements. Crime importation and raising awareness of
global crime-fighting efforts and cooperation. The emergence of Global
administrative law.

15. Religious- The spread and increased interrelations of various religious groups,
ideas, and practices and their ideas of the meanings and values of particular
spaces.

2.3 What is Transit?

Transit can be viewed different way like-
Make a passage or journey from one place to another; "The tourists moved through
the town and bought up all the souvenirs;" "Some travelers pass through the desert"
Pass across (a sign or house of the zodiac) or pass across (the disk of a celestial body
or the meridian of a place); "The comet will transit on September 11"
Revolve (the telescope of a surveying transit) about its horizontal transverse axis in
order to reverse its direction
Transportation system: a facility consisting of the means and equipment necessary for
the movement of passengers or goods.

2.4 Bangladesh-India transit debate:

The debate over allowing India transit and charging fees and costs etc associated with
it is still on. Both Bangladesh and India have been discussing this issue for a pretty
long time, but could not arrive at a clear conclusion on the application and the
enforcement of different pros and cons of the subject. The government is reported to
have constituted core-committees, sub-committees, and working groups comprising
national and international experts of outstanding reputation to prepare comprehensive
reports within the framework of regional and international law and practice to finalize
the deal in the upcoming summit expected to be held in Dhaka sometime in 2011
between the prime ministers of the two countries.
In the meantime, Bangladesh has been put to an embarrassment when our Customs
officials seized two Indian ships which refused to pay the transit fees on the plea of
the protocol of the Inland Water Transit and Trade (IWTT) signed by the two
countries in 1972. The said protocol does not mention payment of transit fees, but
provides for payment of annual charges of Tk 50 million to Bangladesh for
maintenance of the river routes. Bangladesh Customs officials levied the duties
ostensibly in line with the contents of the joint communiqué released following the
summit of our Prime Minister with her Indian counterpart in January 2010. But the
Indian officials were sticking to the protocol of 1972, and were unwilling to pay the
duties imposed. However, the problem was resolved with the intervention of our
Finance Minister who allowed waiver of fees against bank guarantee from the Indian
side pending re-fixation and revision of the issues under the changed scenario, and
allowed resumption of the IVTT7 protocol 1972, so far the fees related to the
waterways was concerned. However, it was categorically stated by the Finance
Minister that the fees and charges for road and rail routes will remain in force.
Bangladesh has been expecting to be highly benefited in financial terms once the
transit is given to India. India, especially its North-Eastern region consisting of seven
states-Tripura, Manipur, Nagaland, Meghalaya, Mizoram, Arunachal, and Assam,
whose boundaries surround Bangladesh, would be benefited as well. This fact had
been reverberated during the Bangladesh tour of India's ex-minister Manishankar
Ayar last July. He said, "Without Bangladesh the northern people of India are like
prisoners. The prosperity of the north-east Indian region and Bangladesh is inter-
linked. Bangladesh could reduce the widening trade gap that favors India by transit
fees and remittance from north-east India."
To be literally meant, the transportation of goods of one country over the territory of
another country is called transit. Changing transportations, while carrying goods of
one country over another, is defined as transshipment. It is clear that Bangladesh is
eager to provide India both the privileges of transit and transshipment. According to
international law, paying tax duty in inter-country goods transportation is not
applicable. But the question is, when hundreds of heavy goods-carrying vehicles will
move over our land, and will use our bridges, rivers and roads, who will take the
responsibility of the costs and damages caused when these transportations deteriorate
the conditions of our roads and highways, and put a negative impact on our
environment? From a political perspective, giving away transit is certainly a massive
and risky step that would be taken by Bangladesh. If Bangladesh is not benefited in
any way by giving away transit, then is it really necessary to remove the lid and open
the 'Pandora's Box'?
The idea of our country's sovereignty to be vulnerable due to the transit facility we are
giving, if flamboyant, especially, when it comes to giving this facility to a
neighboring country 23 times larger than Bangladesh. The opposition parties,
especially BNP happens to hold a very critical perception when it comes to do
anything that improves the Bangladesh-India relationship. The BNP hadn't hesitated
to label the Bangladesh-India Friendship Treaty following the Liberation War as a
treaty for slavery. Then again, they not only protested the CHT Peace Treaty, but also
had spread rumors about selling a part of Bangladesh to India. It was also claimed that
Indian flags would fly in different regions of Bangladesh, as a result of that treaty.
Therefore, Bangladesh can normally expect the same amount of response from India
after taking this much risk and showing courage by approaching the transit issue.
Nevertheless, the fact that Bangladesh has asked India for use of its territory in order
to import electricity from Nepal and Bhutan is faced by the reality that Bangladesh
actually does not have any long-term treaty with India to use its land. India's Finance
Minister Pranab Mukherjee has announced a treaty regarding this matter during his
recent Bangladesh tour. The initiation and effectiveness of the already discussed
corridor use treaty with India is vital before making any other treaty regarding the
transit to Nepal and Bhutan. It is impossible to go for any treaty with Nepal or Bhutan
before solving the matter with India, and here the role of India is essential. It is true
that, even though the Bangladesh government has signed a treaty with Nepal and
Bhutan on 1976 and 1980, it couldn't be effective due to India's lack of cooperation.
Now, this entire matter might be spoiled in the event India puts conditions not to pay
any fees/tax/cost in exchange of the transit privilege for Nepal and Bhutan as asked
for by Bangladesh. Therefore, it would not be fair to justify this matter in terms of
financial profits/loss by India. 'This is a pound of flesh, but not a drop of blood'
attitude of India, which is not acceptable. They should consider the future
development, political stability, and sentimental aspects of its seven north eastern
states. At present, these states are deprived of the mainstream development progress
of India, and the helping hand of Bangladesh, to connect these regions to keep up with
the development prospects of the rest of India is crucial.
In recent times, the political and economic relationship of Bangladesh with China is
fast improving. The rate of trade affairs with that country has increased more than
ever. Our excessive dependence on India has decreased, and this is a real scenario as
well. The fact that China and Myanmar will be allowed to use the Chittagong and
Mongla ports has been announced during the China tour of Prime Minister Sheikh
Hasina. The agreement of setting up a rail-line communication from Bangladesh to
China's Kunming through Myanmar has been signed. China's eagerness to build a
deep sea port in the Bay of Bengal has been marked as a milestone in developing our
relationship. India's mass media has been complaining against their government, that
India is not doing its best to develop the country's relation unlike Bangladesh.
Actually, this treaty should not be limited within the governments of the two
countries. The depth of this treaty is also being considered as a bridge between the
people of north-east India's seven states, and the people of Bangladesh.
It is not an exaggerated fact that the north-eastern part of India is the most deprived
region in India, mainly because of the poor communication and the distance. Now, as
a result of Bangladesh government's positive role play, the solution of the unsolved
issues and the reincarnation of a good relationship with India are being initiated. The
responsibility of its proper use lies on the Indian government's shoulders. The relation
between Bangladesh and India is far better than the relation India has with Pakistan
over their long outstanding dispute concerning Kashmir, and with China regarding
their boundary. But there is no such outstanding problem between us. But it seems
that the mindset of the Indian bureaucracy against the relational development of these
two countries is a huge barrier. This barrier should be eradicated by the political
leaders of the two countries with strong determination and political sagacity.
According to a recent media report, Bangladesh shall earn Tk 4.0 billion per year as a
result of transit. Many of us still remember the case of gas export from Bangladesh to
India in the late 90s. Many of the international media and multinational oil companies
have portrayed Bangladesh as a country rich in vast natural resources of gas.
Therefore, Bangladesh was thought to be capable of exporting gas to India and earn
billions of dollars, and thus it was told that overcoming the ongoing trade deficiency
(then $1 billion) of Bangladesh with India was merely a matter of time. This issue was
exaggerated to such an extent that it was one of the most discussed agenda during the
Bangladesh tour of the then President of the United States Bill Clinton in 2000.
Awami League was then running the government, and Sheikh Hasina was the Prime
Minister. At that time Sheikh Hasina had informed President Clinton that Bangladesh
would be more than happy to export natural gas, if we have enough of it reserved for
the next 50 years. She had also asked for help from the United States regarding the
technical knowhow to find the amount of the reserve and our need of gas for the next
50 years. However, earlier, the BNP government had agreed to export gas without
even analyzing the matter thoroughly and properly. From their opinion, it was
worthless to keep such resources underground and not do anything about it, and that it
was vital to export the gas abroad. Anyway, the matter was solved right there
following Sheikh Hasina's strong determination and reasonable viewpoints. But what
exactly would have happened to our fate if the Awami League government agreed to
export this gas like its predecessor? People are realizing the benefits of reserving this
gas at present. Therefore, it is a crucial fact to properly analyze the extent of profit
Bangladesh would gain as a result of the transit and transshipment process. Here our
Finance Minister's statement is very important, he said, "India has to pay a precise
amount of fee at a certain rate in order to transport its goods through Bangladesh
territory. The rate of this fee payment is being determined. According to the law of
the land, India has to pay tax while using our roads and railways. There has been no
such rule to pay taxes in case of transits. But they must pay as they are going to use
our property."
We have to approach very carefully with constant vigilance, while negotiating with
foreigners, keeping our potentialities and limitations in mind. We must be aware of
not repeating our mistakes. Recently, a weekly English newspaper said, "Some
government and pro-Indian business houses have always maintained that Bangladesh
would receive at least $2.0 to $3.0 billion from transit and transshipment business."
Bangladesh may perhaps earn a maximum amount of Tk 8.0 billion, and therefore this
assessment should be made only after a meticulous analysis of the rational facts and
figures. Another newspaper, in one of its articles has stated, "An estimated 15.64
million tonnes of freight traffic between different states in India could potentially be
diverted through Bangladesh where rail corridors could be the most cost effective.
Bangladesh is expected to earn a total net profit of $23 billion from cargo handling in
30 years. Bangladesh has a unique geographical location with two land locked region
of North East India as its hinterland. It has two sea-ports (Chittagong and Mongla)
which these areas can access. Establishment of regional connectivity will provide
tremendous opportunities for these regions to develop itself as a regional transport
hub." This report shows how much beneficial the transit system is not only for
Bangladesh, but also for all the north eastern states of India. The report goes on to
say, "What India is now doing is transporting commodities from eastern India to
north-east India mostly by train from Kolkata to Agartala via Guwahati and Lamding.
The distance is 1635 km. The alternative route is transit through Bangladesh
(Akhaura-Benapole) will reduce the distance by 1000 km to only 625 km. Tea
produced in Assam is largely exported through Kolkata port to Europe. The road
distance between Guwahati (Assam) and Kolkata is 1380 km. But if allowed through
Chittagong port via Akhaura the distance will be reduced by 60 per cent to only 530
km."
From the above condition we can have a glimpse of the obviousness that the trading
between Bangladesh and north eastern India is going to be much simpler as a result of
the transit-transshipment. Thus a positive change will be brought in the heuristic
relationship of India with Bangladesh. In this condition, the finalizing of transit fee
must be done after considering every aspect intertwined with it. It is told that if the
transit is given, Bangladesh is going to end up being another Singapore. It will
become another Asian Tiger. But first it should be thoroughly sorted out that after all
these calculations and analyzing, Bangladesh should not be left with nothing. It must
be brought to everyone's attention that, the transit/transshipment fee is not going to be
limited within Bangladesh-India only. Besides, Nepal, Bhutan, Myanmar, China are
also being involved in it, hence Bangladesh must charge the same amount of fee for
everyone in order to show equity. Favoring a particular country with special
privileges might put Bangladesh in a delicate and vulnerable position from political
perspectives. The ball rests in India's court at this moment. Bangladesh's Prime
Minister has taken her first step on this path with tremendous courage and risk, and
now it's time for India to respond likewise. If India's helping hand does not meet our
expectation, prevailing long term peace might remain a mere figment of the
imagination. Theoretically, half of Bangladesh's total population was born after
liberation. They value the present more than the past, and their future dreams are
based on today's reality. The Indian leaders must come to a solution by keeping this
reality in mind, so that a win-win situation is created for both countries in the
upcoming summit of the Prime Ministers of the two countries sometimes in 2011.

2.5 Transit to benefit India, Bangladesh, Nepal and

Bhutan:
India will be allowed to use Bangladeshi territory to reach seven landlocked north-
eastern Indian states through establishment of road and railway connectivity, Bengali
Foreign Minister Dipu Moni disclosed Sunday (August 8).
Bangladesh will also be allowed to use Indian Territory to reach Nepal and Bhutan,
and will have direct access to the north-eastern Indian states, she said.
She also revealed that India will allow passage to Nepal and Bhutan as well, for their
access to Mongla and Chittagong ports in Bangladesh.
"They [India] will allow Nepal and Bhutan to do third country trade," she said.
During Prime Minister Sheikh Hasina's visit to India in January, It was already agreed
upon that Bangladesh will allow India to use the sea ports too.
"We are thinking about transforming Bangladesh into a regional hub, and when the
entire region will be brought under connectivity, India will have access to its north-
eastern states," Dipu Moni said while addressing a media briefing at the foreign
ministry Sunday on the occasion of Indian Finance Minister Pranab Mukherjee's visit
to the country which led to the signing of a loan agreement between Bangladesh and
India. According to the agreement, India will loan Bangladesh US$1 billion for
infrastructure development. Dipu Moni said people and goods will move freely as
soon as the connectivity is established.
In March this year, Hasina also sought Chinese assistance for establishing direct road
and rail links with China. A specific proposal was put forward for construction of
Chittagong-Kunming highway through Myanmar to boost trade and economic
cooperation.
"Bangladesh has been almost isolated regionally and globally, but we don't want to be
isolated as the world is now moving fast, and countries around the world are
connecting with each other for economic development," the foreign minister said at
the briefing Sunday, adding that Bangladesh will benefit economically by allowing
transit facilities to India, Nepal, and Bhutan.
The issue of allowing India transit to its north-eastern states through Bangladesh was
a bone of contention between the two neighbours. Replying to a question, Dipu Moni
said not only trucks from Nepal will have access to Banglabandha in Bangladesh;
similarly Bangladeshi trucks will also have access to Nepal through India. In that
context, she made it clear that no fresh agreement or protocol or amendment to
previous protocol will be required to open the transit way for Nepal and Bhutan. "This
will be done just through exchange of letters. We are hopeful to do that within this
year," she said.
The foreign minister expressed the hope that an interim agreement between
Bangladesh and India on sharing the water of the Teesta River will also be concluded
next year.
The Joint Rivers Commission will meet in few months, and both countries are moving
towards a positive conclusion, she added.
When asked whether the 14 projects approved for getting allocations from the Indian
billion dollar credit will serve only Indian interest, connecting its eastern and western
parts, Dipu Moni said, "The one billion dollar line of credit was taken for
Bangladesh's interest, but India will also benefit. If the connectivity is in place, all
will be benefited. It will be a win-win situation."
She said people should get rid of the negative thinking that only India will be
benefited if roads and ports are developed. "Bangladesh will be benefited, and in
some areas India will also get the benefit."
Terming the Indian loan at the interest rate of 1.75 percent as a kind of a
"concessional loan", the foreign minister said donor agencies will not provide loans
for every project that serves Bangladeshi interest. When donors provide loans or
grants, they protect their own interests too, she added.
Replying to another question, Dipu Moni said the Indian government will give the
loan through Exim Bank, and the Bangladesh government will fix its priority projects
for utilising the loan.
When a reporter pointed out that the projects slated for allocations from the loan, were
identified not by the Bangladesh government alone but by both governments, Dipu
disagreed saying, Bangladesh will prepare the projects, and India will provide the loan
for the projects.
When reporters pointed out that Indian Finance Minister Pranab Mukherjee in his
statement said the two governments identified the projects together, she expressed her
ignorance about Pranab's arrival statement at Shahjalal International Airport on
Saturday.

When another reporter pointed out that Bangladesh had prepared 29 projects for
utilising the loan, and then officials of the two countries primarily finalised 14
projects at a meeting in New Delhi, the foreign minister expressed her ignorance
about that as well.
Replying to another question, Dipu Moni informed the media that Bangladesh-India
Joint Boundary Working Group will meet in September to address the issues of
demarcation of 6.5 kilometres of border area, and exchange of enclaves and adversely
possessed lands.
Blasting an opposition leader for his comment about the Indian loan, the foreign
minister said, "I don't understand how a person who had worked at Economic
Relations Division made such a comment."
"When they [BNP] are in power they follow a policy of pleasing India, and when they
are in opposition they are vocal against India," she said adding that the opposition is
not finding any issue for politicking now, so they are launching pointless campaigns.
BNP standing committee member also a former minister MK Anwar at a news
briefing on Friday said the government is getting the loan from the Indian bank at an
interest rate seven times higher than what any multinational bank or donor agency
would charge.
He said the deal for infrastructure projects will eventually benefit India while
Bangladeshis will have to repay the loan. "The implementation of the projects with
the Indian loan will serve Indian interests more than Bangladesh's," he said.
The BNP lawmaker claimed that such loans are available from any multinational bank
at only .25 percent interest. Dipu Moni however made it clear Sunday that the
government signed the agreement with India by following international norms and
standards, and the cabinet also gave its nod.

2.6 Why Bangladesh should never allow transit to

India?
1. India has proven itself as an untrustworthy friend. During the liberation war,
while helping Bangladesh liberation, it secretly built the Farakka dam. “Farakka was
commissioned on permission from Mujib on the condition that it will have test run for
only 40 days. But unfortunately those 40 days is yet to be finished (even after 37
years) and Bangladesh is getting the pinch of dry rivers. Further 54 other international
waters were stopped by the friend of BAL making barrage/dams/ groins virtually
making lower riparian country Bangladesh’s rivers dry.”
During Mujib time, the Rakkhi Bahini head was made an Indian. The jute head
quarter was transferred to Delhi. With the Mujib -Indira Pact, river demarcation based
on the mid current was made a farce. Bangladesh is losing land. It is now a serious
problem. Mujib was persuaded to hand over the sovereignty of “BERUBARI” in
return of “Tin Bigha.”But Tin Bigha was never returned. A Berline wall was built in
Bengal to so-called stop Bangladeshis cross the border. India jammed the Bangladesh
TV. As a matter of target practice, India regularly kills Bangladeshi joans in the
border region. Even before the investigation, India blames Bangladesh for terrorist
actions within its borders.
“Due to sinking of several ships in Chittagong Port during Liberation War…, it was
difficult to import …essentials for war torn Bangladesh. Bangladesh requested India
to just to allow using Calcutta Port for only six months in 1972. India refused the
request.” “Bangladesh wanted only 16 miles transit to pave for easy trade between
two SAARC countries Bangladesh and Nepal.” But it was refused. Now India wants
600 miles of corridor. Bangladesh should never allow transit to India.
2. Without the transit, India’s seven non Indian sisters in the North East that now
depend on Bangladesh for manufactured goods, but with transit, India will sell its own
product to the region and Bangladesh will lose.
3. India doesn’t want to allow Bangladesh to have land route with Nepal and Bhutan
which is purely for trade purpose, India shows the excuse that it goes against its
territorial integrity, using the same logic Bangladesh can not allow transit.
4. Financial benefit from transit fees would outweigh its other disadvantages.
Bangladesh would risk destroying its own roads and highways, infect its citizens
AIDS. Roads and highways will be neglected by the chauvinistic Indian traders and
military personnel are passing through Bangladesh’s heartland.
5. India is an unreliable keeper of promises. It failed to keep up to the signed
treaties of Barubari/ Farakka. India first fix these problems than only trust building
will lead to transit.. RAW fed Indian chauvinistic government will never go for a fair
deal because its sole purpose is to help Bangladesh into a failed state.
6. Transit through Bangladesh will allow India to increase its repression in its
occupied North East. For such repression, Bangladesh suffered in the hand of Pakistan
and now as a peace-loving country, it shouldn’t allow India to increase its repression
over its non Hindi/ largely Asian/ Christian and Buddhist minority people
unfortunately made part of India. At the same time such a deal would make Indian
separatists rebels make Bangladesh a target.
7. Indian treaties are politically motivated. While Mujib signed the Mujib-Indra
Treaty 25 year treaty results in the beginning of trade deficit, water shortage, border
issues dispute, and dependence on India resulting in the India friendly Mujib’s
unpopularity and within a short period of time made Bangladesh bankrupt, “the
bottomless basket case” and brought his own death. If the past experience with India
is a guide, it is believed that people in favor of transit to India are the ignorant India-
lovers popularly known in Bangladesh as the “Indian Razakars” who are inviting
trouble for Bangladesh. For such an issue we suggest for a national referendum. If
people decide, let it be, if not, never!
Chapter: Three

Findings
From above discussion we have found the following findings-

 Geographically Bangladesh is a Transit country.

 India is neibouring country of Bangladesh.
 By the effect of globalization Bangladesh get lots of benefits from India.
 Bangladesh import onion, rice, potato and many other products from India.
 India is most developed in technology; Bangladesh gets this opportunity from
India.
 Bangladesh may perhaps earn a maximum amount of Tk 8.0 billion.
 The transit/transshipment fee is not going to be limited within Bangladesh-
India only. Besides, Nepal, Bhutan, Myanmar, China are also being involved
in it, hence Bangladesh must charge the same amount of fee for everyone in
order to show equity.
 Bangladesh can earn more revenue from overseas transport.
 FDI will increase.
 Unfortunately Bangladesh has largest trade deficit with India.
 India acts as dominator not as friend/ friend.
 Most of the time India violate international rules.
 India has proven itself as an untrustworthy friend. During the liberation war,
while helping Bangladesh liberation, it secretly built the Farakka dam.
 As a transit country, Bangladesh has bargaining power.
 India doesn’t want to allow Bangladesh to have land route with Nepal and
Bhutan.
 Financial benefit from transit fees would outweigh its other disadvantages.
 India is an unreliable keeper of promises. It failed to keep up to the signed
treaties of Barubari/ Farakka.
 Transit through Bangladesh will allow India to increase its repression in its
occupied North East.

Chapter: Four
 Conclusion

Developing countries like Bangladesh with vulnerable geopolitical locations and

weak economies are now depends on globalization to strengthen their economy to
fight any upcoming threats. But the role of globalization played by the western
dominated institutions such as, the World Bank (WB), International Monetary Fund
(IMF), Asian Development Bank (ADB) and the World Trade Organization (WTO).
The agenda of the Bangladesh’s economical sector and upcoming debt formulated by
these kinds of organizations, which are running on the process of economic
exploitation of a country. For this, they are willing to give money for construct a road
rather than a factory. Beside this for every debt they are selling there product in our
country without any tax. However, a closer look at the globalization will show that it
has both positive and negative impacts on the economy of Bangladesh. A thorough
understanding of the effect of globalization is needed to use its advantages to improve
her economy. This may also help Bangladesh maintain a sustained growth in the face
of likely economic peril.
Chapter: Five
Recommendation

From above discussion we the following recommendations-

 Transit is the result of globalization. So in case of transit deed there should
have unique rules and regulations.

 India should respect the rules and regulations of transits.

 India should minimize the trade deficit as much as possible.

 India should act as friend not dominator.

 India has proven itself as an untrustworthy friend. During the liberation war,
while helping Bangladesh liberation, it secretly built the Farakka dam, so India
should solve it.

 As a transit country, Bangladesh has bargaining power. Bangladesh should use

their bargaining power.

 India doesn’t want to allow Bangladesh to have land route with Nepal and
Bhutan.
 The political parties of Bangladesh are also responsible to gain the benefits of
globalization.

 Government of Bangladesh should be more tactful.

Chapter: Six
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