India- Border Haats Yesterday, Today and Tomorrow

Published by

Consumer Unity & Trust Society D-217, Bhaskar Marg, Bani Park, Jaipur 302016, Ph: 91.141.2282821, Fx: 91.141.2282485 Email: [email protected], Web: www.cuts-international.org

© CUTS International, February, 2021

Supported by In partnership with

Unnayan Shamannay

This Report has been published as a part of CUTS project entitled, ‘Border Haats between India and Bangladesh as a tool to reduce informal cross-border trade’ undertaken with the support of the Foreign, Commonwealth and Development Office, UK and in partnership with Unnayan Shamannay, Bangladesh.

The material in this publication may be reproduced in whole or in part and in any form for education or non-profit uses, without special permission from the copyright holders, provided acknowledgment of the source is made. The publishers would appreciate receiving a copy of any publication, which uses this publication as a source.

#2101 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 3

Contents

Contributors ...... 5

Abbreviations ...... 8

An Overview ...... 9

1. Role of Border Haat in Management of India-Bangladesh border...... 15 Joyeeta Bhattacharjee, Senior Fellow, Observer Research Foundation, New

2. Border Haats and Women Empowerment ...... 23 Mahbuba Nasreen, Professor and Director, Institute of Disaster Management and Vulnerability Studies & former Professor in Sociology, University of , Bangladesh

3. Border Haat as a Means to Promote Trade and Cross-border Value Chains Between Northeastern States of India and Bangladesh ...... 31 Biswajit Chakrabarty, Director, Federation of Indian Chambers of Commerce & Industry, North-East Advisory Council Guwahati,

4. Border Haats as Centres for Exchange of Agricultural Inputs, Ideas and Practices ...... 43 Sudhir Chandra Nath, Head of Business, Advanced Chemical Industries Limited, Dhaka, Bangladesh

5. Can Border Haats Become Centres for Cultural Exchange, Tourism and People-to-People Connectivity? ...... 53 A. K. Enamul Haque, Professor of Economics, East-West University, Dhaka, Bangladesh

6. Border Haats on Bangladesh-Myanmar Border: Opportunities and Challenges ...... 61 Nazneen Ahmed, Senior Research Fellow, Bangladesh Institute of Development Studies, Dhaka, Bangladesh 4 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

7. Border Haats on India-Myanmar Border: Opportunities and Challenges ...... 67 Subir Bhaumik, Editorial Director at Asian News

8. Reimagining Border Haats as Border Co-prosperity Zones ...... 75 Sabyasachi Dutta, Executive Director, Asian Confluence, Shillong,

9. Reimagining Border Haats as International Retail Trade Zones ...... 85 Pritam Banerjee, Independent Trade and Logistics Specialist

10. India-Bangladesh Border Haats in the post-COVID Era ...... 117 Indranil Bose, Associate Professor of Political Science, St. Xavier’s College, , West Bijaya Roy, Senior Research Associate, CUTS International

11. Role of the Media in Popularising Border Haats ...... 125 Asjadul Kibria, Planning Editor, The Financial Express, Dhaka, Bangladesh India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 5

Contributors

Asjadul Kibria Asjadul Kibria is a journalist based in Dhaka and now serving as Planning Editor, The Financial Express, Bangladesh. After completing his graduation in economics from the University of Dhaka, he started his carrier with the Prothom Alo, the largest circulated daily newspaper in Bangladesh. In his two decades of journalism, Kibria has worked on economy, finance, trade and development issues. He is also an author and translator of several books (in Bengali).

A K Enamul Haque A K Enamul Haque is a Professor of Economics at East-West University (Dhaka, Bangladesh), and a Director of Economic Research Group, the Executive Director of Asian Centre for Development, a Member of the Steering and Advisory Committees of the South Asian Network for Development and Environmental Economics. He is an environmental economist with teaching, research and popular articles on climate change, agriculture and urban issues in developing countries focussing South Asia, in general, and Bangladesh, in particular. He is an Honorary Fellow of the Unnayan Shamannay.

Bijaya Roy Bijaya Roy is a Senior Research Associate at CUTS International. She obtained her Bachelor’s in Economics from the University of Calcutta and Master’s in Economics from the Banaras Hindu University. Her area of interest includes trade facilitation, connectivity, regional integration, inland waterways among others.

Biswajit Chakrabarty Biswajit Chakrabarty is a professional involved in the industry and regional economic development in India’s northeast for over two decades. He has extensive experience working with governmental and multilateral agencies and the private sector with a focus on public policy, investment promotion, and regional trade. 6 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

Indranil Bose Indranil Bose is an Associate Professor at the Department of Political Science in St. Xavierís College, Kolkata. A recipient of National Scholarships and the Jubilee Prize, he was awarded an International Fellowship by Rotary International to participate in a Group Study Exchange Programme in Texas, the US, in 1995. He has also participated in various national and international seminars and his current research areas include political theory, political economy and international relations.

Joyeeta Bhattacharjee Joyeeta Bhattacharjee is a Senior Fellow in the Strategic Studies Programme at the Observer Research Foundation. She specialises in India’s neighbourhood policy, connectivity, border management, regional and sub-regional cooperation, gender and foreign relations. Her research is regularly cited in varied national and international media including Indian Express, BBC and New York Times. She was a Fellow of the International Visitors Leadership Programme of the State Department in 2016. In 2015, she participated in the COP-21 in Paris. Bhattacharjee holds a Ph.D. from Assam University.

Mahbuba Nasreen Mahbuba Nasreen is the Director and Co-founder of the Institute of Disaster Management and Vulnerability Studies, University of Dhaka, Bangladesh. She has been awarded a Ph.D. Degree in 1995 from New Zealand with Commonwealth Scholarship. Nasreen has been honoured with Mary Fran Myers Award, 2016, Gender and Disaster Network, Natural Hazards Center, Colorado University (Boulder), the USA, for her three- decade-long contributions pioneering gender and disaster research. Nasreen continuously contributes to policymaking towards inclusive disaster risk reduction and other national and international policy and regulatory frameworks. She is leading the Gender and Disaster Network Bangladesh Country Hub.

Nazneen Ahmed Nazneen Ahmed is a Senior Research Fellow at the Bangladesh Institute of Development Studies. Ahmed has over 22 years of experience in conducting research on socio-economic issues. Her research expertise includes issues related to macro-economy, industry, labour, socio- economic compliance, international trade, regional integration, agricultural marketing, and gender. She was a member of the Panel of Economists for adopting the 7th Five-Year Plan of Bangladesh. She is also a member of the Palli Karma Shohayak Foundation and Bangladesh NGO Bureau Bangladesh. India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 7

Pritam Banerjee Pritam Banerjee is a specialist in the international trade and connectivity sector in South and Southeast Asia. He has more than a decade of working experience in this sector. Before joining Asian Development Bank, he was involved with DHL.

Sabyasachi Dutta Sabyasachi Dutta is the Founder and Director of Asian Confluence. He is a social entrepreneur, educationist, artist and student of Indian history and international relations. He pioneered a unique leadership programme for India’s rural youth; a unique model of youth-led rural development which was lauded by the World Bank; set up a chain of eighty primary schools using the model of community participation propelled by youth leadership and introduced several innovations in the education.

Subir Bhaumik Subir Bhaumik is a veteran journalist and author. He worked for PTI, Ananda Bazar Group, Reuters, and BBC World Service. After retirement, he worked as Senior Editor at Dhaka-based bdnews24.com and Yangon- based Mizzima Media. He was a Queen Elizabeth House Fellow at Oxford University, UK; a senior fellow at East-West Centre (Washington) and a Eurasian Fellow at Frankfurt University. Bhaumik is the author of Insurgent Crossfire, Troubled Periphery, Doctrine, Living on the Edge and Counter-Gaze: Media, Migrants and Minorities. He is also a corporate risk analyst and media trainer.

Sudhir Chandra Nath Sudhir Chandra Nath is a veteran and passionate agribusiness professional and development expert. He has more than 36 years of value-added experience both in Bangladesh and Africa in core business development activities which include seed system, agricultural research & development activities, agricultural credit, employment and income generation programmes, community mobilisation, microfinance, agro-input and social enterprises. He received a Master’s Degree in Development Management from the Asian Institute of Management, Manila, Philippines. 8 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

Abbreviations

ASEAN: Association of Southeast Asian Nations BADP: Border Area Development Programme BCIM-EC: Bangladesh-China-India-Myanmar Economic Corridor BDZs: Border Development Zones BGB: BIDS: Bangladesh Institute of Development Studies BSF: CBMP: Coordinated Border Management Plan CBZ: Commercial Border Zones DG: Director General FBCCI: Federation of Bangladesh Chambers of Commerce and Industries FMCGs: Fast-Moving Consumer Goods ICBC: International Centre of Cross-Border Cooperation ICRIER: Indian Council for Research on International Economic Relations JBC: Joint Business Council JWG: Joint Working Group LCS: Land Station MEA: Ministry of External Affairs MSMEs: Micro, Small and Medium-Sized Enterprises OPD: Outpatient-Services PPP: Public Private Partnership RCEP: Regional Comprehensive Economic Partnership SEZs: Special Economic Zones SOPs: Standard Operating Procedures UMFCCI: Union of Myanmar Federation of Chambers of Commerce and Industries WTO: World Trade Organisation India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 9

An Overview

Introduction create for them an institutional space where they would be able to Border Haats along the fringes of meet from time to time and freely the Indo-Bangladesh border are trade their goods without having rough and ready markets that have to go through official and been established to enable cumbersome documentation residents on both sides of the procedures that are usually border to market their ‘local required when people cross produce’. People inhabiting remote borders between countries. These border locations are often mechanisms would also serve as a confronted by numerous confidence-building measure challenges like a dearth of among the citizens of two livelihood opportunities, countries. The result was Border inhospitable terrain and distance Haats. from urban centres and towns.

The idea of Border Haats was Historical Roots conceived by the governments of People residing in the Indian sub- India and Bangladesh to promote continent that today comprise the the wellbeing of these people. territories of India and Bangladesh Border Haats thus seek to re- have shared languages and establish the traditional system of dialects, lifestyles and food habits, marketing that existed among Gods and Goddesses and customs these people. Additionally, they and traditions through history. facilitate people-to-people Before 1947, the region formed a connect and strengthen ethnic and part of a large contiguous geo- cultural bonds between people political entity, including present- living close to the border areas in day Bangladesh, India and even both countries. British Burma. Trade within this large geographic area was India shares with Bangladesh a unrestricted, goods and people border that stretches almost 4100 moved with ease. km. Recognising the years of symbiosis that characterised the Backed by abundant natural lives of these people who have resources, an extensive network of inhabited geographically rivers, and one of India’s earliest contiguous areas across railway networks, this was one of generations, the governments of the economically progressive India and Bangladesh decided to 10 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

regions in the country. After years eastern borders to facilitate of such togetherness and commodity trade between local generations of co-existence, a communities living on both sides fence ran through their lives of the border. splitting families and friends, relatives and neighbours. People The border haats restored for the who had lived as one community border dwellers a past which they were given different badges of feared was lost permanently – here national identity. they meet each other, greet each other, and have fun with each To reach out to their neighbours, other. It is an elegant place for the they were required to navigate exchange of cultures, a place to through cumbersome procedures revive and strengthen old ties and and bureaucratic hurdles: friendships, and a place which passports and visas, customs and holds immense attraction for the border checkpoints. A decisive tourist! change had taken place in their lives. Unalloyed Benefits and Over time, however, things began more to shift on the ground. Both India The Border Haats between India and Bangladesh’s economy began and Bangladesh are yielding to experience significantly higher economic benefits for the local economic growth. The growth was, people in several ways however, centered on the major They promote several cottage metropolis in both countries. The industries of Bangladeshi border people – living in remote manufacturers producing items areas – remained out of such as gamchha, lungi, garments connectivity with the mainstream and mats. There are also plastic economy. and melamine products, processed food items, juices, agricultural However, with improved mobile produce, household tools like telecom technology and internet spade, axe, plough, sickle, etc. The facilities, it became difficult to rules and regulations of BH trade keep these remote people at bay. require sellers and buyers to reside It became evident that the people within proximity of 5 Kms radius of living on the edges need support a particular BH. This is mainly for and both governments possibly securing improved standards of found it easier to support them living and the economic collectively. development of residents. Therefore, in 2011 the However, people residing well governments of Bangladesh and beyond the stipulated distance India took a historic step by manage to travel to the haat and introducing local cross-border participate as buyers in practice. trade centers through an MoU. Traders get a trading permit, which Both countries agreed to open is usually valid for one year and border haats on their northern and India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 11

they are required to carry photo disrupted by partition and the identity cards. For several vendors subsequent disruption of who have regular shops in their connectivity linkages, while others villages, the Border Haat is an survive nominally through informal additional venue where they can trade. augment their income. Border haats have also created The study on “Border Haats employment opportunities for the between India and Bangladesh as a local youth who have emerged as Tool to reduce Informal Cross providers of various services: Border Trade” by CUTS transporters, labourers, food stall International, draws attention to owners. some cross border value chains, such as the betel nut value chain in Border Haats address gender the Kalaichar-Baliamari area. These issues and women empowerment got a new lease of life because of the Border haat set up in that area. Several women folk manage to earn a modest sum on haat days after finishing with their Border Haats can serve as a household chores. They are seen platform for the exchange of doing odd jobs like offering various agricultural inputs assistance to vendors in setting up If seeds, pesticides, fertilisers, and stalls at the haat, or carrying herbicides are to be exchanged headloads for a buyer. Border through formal channels, several Haats are thus seen to have sanitary and phyto-sanitary impacted gender issues positively. obligations need to be fulfilled. To bypass these often cumbersome There has been a persistent and time-consuming processes demand on part of women in the involved in the formal channels, border regions of Meghalaya for agriculture inputs are traded the reservation of more vendor through informal channels and ships in favour of women. By often in significant volumes. contrast, there is a paucity of women vendors in the Allowing trade in these products Haats, probably because of more via the border haats could lead to entrenched patriarchal values a significant decline in the volumes among families residing in Tripura. traded through informal channels. Border Haats have indeed However, this would require facilitated women’s empowerment. putting in place appropriate A means to promote trade and measures to ensure biosafety. In cross-border value chains this regard, the governments in India and Bangladesh could Northeast India and Bangladesh mutually prepare a list of share complementarities for agricultural inputs with several products and service value appropriate certifications/licenses chains. Many of these value chains related to biosafety. that existed through history were 12 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

Border Haats add a new over the years. From the dimension to Indo-Bangladesh experience of border haats at border cooperation and different places of the Bangladesh- management India border, it appears that This is a clear departure from more establishing border haats at conservative measures for suitable junctions along the addressing border security Bangladesh Myanmar border could challenges. The institutionalisation bring benefits to the people in the of trade in such formal respective border areas. mechanisms has also lessened the scope for trade between the It is noted that the border trade concerned people through point Maungdaw sometimes informal channels. BSF personnel remains closed due to tensions confirms that with the erection of between Bangladesh and Myanmar the fence along the border, over issues like the Rohingya crisis. dacoits and theft problems have There is a possibility that also come down perceptibly. establishing a border haat could Smuggling of forbidden items like allow smooth trading of goods drugs and opium has also even when there is a ban on trade decreased by an appreciable at the regular border points. measure. Since local communities from the The border haats highlight the same ethnic stock often straddle intimate relationship between the India-Myanmar border (like trade, security and border the Nagas or the Mizo-Chin-Kukis), communities, an aspect often it is worthwhile exploring how overlooked while framing policies. possible border haats between Border haats underline the India and Myanmar can be importance of border communities expanded to foster cultural in effectively managing and exchanges. The ‘haat culture’ in securing the border. Expansion of rural South Asia has an the border haats will help larger entertainment and cultural numbers of people enjoy its component besides trade. That benefits, which will contribute to could be played into the border the development of the region and haat system both on the India- deepen bonds between people. It Bangladesh and the India- will also help in sustaining border Myanmar borders. cooperation between the two countries. It may be pointed out that the success of the border haat arrangement on the India- Exemplary Models for Bangladesh border should Other Border Areas encourage India and Myanmar to try this out along their extensive Though trade across the land frontier. It is also desirable to see border between Bangladesh and the arrangement not as a self- Myanmar is quite notable, limiting exercise but as a bilateral trade between the two beginning which, in consultations countries has not increased much India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 13

with local communities, can in historical importance of shared future be expanded to cover newer border points; areas like industrial production and • make local, regional and cultural exchange. This will enable international tourism a major to promote greater people-to- driver for the economic people contact, a vital goal of development of the border area current bilateral diplomacy. by encouraging points of sale at border areas; This exercise cannot be restricted • forge institutional to just national bureaucracies that collaborations with local bodies are usually resistant to change but to encourage local skills, talent should increasingly involve pro- and produce of the point, and active participation of border making the local people the key communities and their producers and interested representatives. This would also be stakeholders for the region; in sync with India’s present • promote setting up of disposition to build its soft power institutional collaborations in as a new foreign policy strategy. education or health services as major drivers for people-to- people contact in the border Border Haats: Pregnant point. with promises The last decade’s experience has Such steps can well enable border seen a renewed interest in haats of today to upscale into developing border areas to make ‘Border Co-prosperity Zones’ of points along the border as tomorrow. connectors and corridors of prosperity. So far, the border haat The connectivity between the two mechanism can be seen as one countries triggered by Border whose value far exceeds simple Haats can be enhanced if wider trade to include intangible benefits institutional spaces like such as aiding border security, international retail trade zones bolstering bilateral relations and replace the Border Haats in the becoming an indicator of the days to come. Such zones will progress towards regional enable interested people on both cooperation. sides of the border to forge contracts without undertaking the It may not be impossible to hassles of visas or complicated conceive of a mechanism that customs clearance procedures (up extends the idea of a border haat to some limits of goods to a larger specifically demarcated purchased). and designed area based on the following principles: They will also provide • celebrate shared borders by entertainment and a place to sell showcasing and facilitating a and promote other services such deeper appreciation of the as healthcare, education, and even unique natural, cultural and tourism. Such zones would greatly 14 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

improve consumer welfare of the towards informal trade which was populations on both sides of the predominant in these areas before border. They will provide a wider the establishment of the haats. variety of goods, at more competitive rates, and through Once re-opened, the haats can formal channels that eliminate serve as a market for new products criminal elements that dominate like a face mask, hand sanitisers, such exchange of goods in the personal protection equipment, present eco-system. etc. Local womenfolk who are engaged in tailoring can produce Conclusion face masks and sell them through the border haats, which will We may conclude that the border buttress income opportunities haat can serve as a model of even further. shared prosperity among the border residents. They cater to In view of the importance of the improved regional stability by border haats for the lives and facilitating better border livelihood of the local cooperation and management and communities, there is an urgent also enhance border security by need to re-open the border haats, reducing informal trade and but with necessary on-the-ground disruptive illegal practices. And in measures for the health and all this, they contribute to peace hygiene safety of the participants. by fostering and strengthening people-to-people connect. In this regard, there is a need to include an addendum to the The dust raised by the still-raging existing protocols for their global pandemic will perhaps take functioning on the ground. longer to settle. In the event of Indefinite closure of the Haats, indefinite closure of Border Haats given the prevailing pandemic, it is logical to be apprehensive that might well amount to throwing the pangs of unemployment and away the baby with the bathwater. hunger might even drive a few India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 15

Role of Border Haat in Management of 1 India-Bangladesh Border

Joyeeta Bhattacharjee Senior Fellow, Observer Research Foundation, New Delhi

The border haats have been transformational in the management of India and Bangladesh border. Traditionally, border management was perceived, from the prism of security, therefore, restrictions were imposed on the people in the bordering areas, thus hampering development.

Given the security-centric approach to the border, India undertook a policy of restraining development in the areas adjacent to the international boundary. Unfortunately, such a policy backfired and instead of securing the border, increased vulnerabilities and the border region became a hub of illegal activities. The haats were established to bolster development in the border region by generating livelihood opportunities and controlling cross-border illegal activities.

This Paper studies the role and impact of the border haats in the management of the India-Bangladesh border.

Understanding Border customs, immigration and local Management police. Border management approaches vary from one country Border management has two major to another — the border can be objectives – firstly, to facilitate the open or closed. movement of legitimate goods and people across the border between The border management policies two sovereign countries; and are determined by the nature of secondly, to ensure the security of bilateral relationship a country the country by restricting entry of enjoys with the other country illegal goods and those individuals across the border. Despite across the border who might divergent approaches, security is a 1 disturb the peace. key component of border management across the globe. For Given the objectives, border example, India shares around management requires the 15,000 kilometres of land borders involvement of multiple agencies with six countries, however, its like — border guarding forces, policies are not uniform. The 16 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

country follows different policies Presently, border management based on the nature of the policies are desired to create relationship with a specific country. opportunities for interaction India has open borders with Nepal among the communities across the and Bhutan, where the movement border without hampering the of people is easier while its borders security. India has been more with and Bangladesh are forthright in testing this new restrictive. approach and its experimentation is visible, especially, in the border Notably, when it comes to borders, with Bangladesh. Establishment of open or close, security is at the border haats along the Bangladesh core of border policies, that border is a reflection of its new encourages securitisation of the approach to border management. Border haats border, which in turn increases the along the India propensity for militaristic measures India’s Approach in and Bangladesh in dealing with challenges. It is a preference for the militaristic Managing Bangladesh borders are solution that inspires nations to Border established to deploy security forces in the India shares around 4,096 provide a border. India has five border kilometres of border with livelihood to the guarding forces deployed to secure Bangladesh covering five states its international land boundary. border including , Assam, communities Meghalaya, Mizoram and Tripura. Lately, a change is visible in the The border lacks any natural understanding of ‘borders’, one and runs through diverse that regards the border as not topography amidst congested necessarily divisive, but rather as a towns, villages, paddy fields, hills meeting point among the and rivers. The in countries.2 Such a transformation 1947, of which Bangladesh was a in thinking is influencing the part, is responsible for the framing of border management complexity of the border. policies globally. Though border remains an innately descriptive The partition, besides, creating an element of a state, nevertheless, artificial boundary disrupted socio- countries are more willing to explore economic conditions of the two new border management options countries and the border regions in that are not exclusively militaristic. India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 17

particular. It did not only divide the 1987. The BADP aims to meet the nations but also separated families, special developmental needs of the villages broke down connectivity people living in remote and linkages and hampered economies. inaccessible areas near the international border by building Prior to 1947, many of the regions critical infrastructure, providing that constitute the border today economic opportunities and were in fact, centres of major promoting a sense of security economic activities, which among the border population.5 unfortunately lost their importance post-partition. The areas close to the India realised the necessity for the border turned remote and lacked cooperation of the neighbouring development. The vulnerabilities countries for enhancing the visible in the border region have efficiency of managing the border. their roots in the partition. The India and Bangladesh had set up a Expansion of the border became a major ground for three-tier institutional mechanism border haats will the proliferation of cross-border in 1994 to discuss and resolve crimes. Major crimes across the security and border management help larger Bangladesh border include — cattle issues. The three tiers include: numbers of people smuggling, smuggling of arms and i) Talks between Director to enjoy its narcotics, trafficking of women and General (DG) of BSF and DG, benefits that in children.3 The border is prone to Border Guards Bangladesh turn will informal trade also. (BGB), contribute to the ii) Joint Working Group (JWG) at development of Initially, India emphasised guarding the level of Joint Secretaries of and regulating for purpose of both the countries the region and securing the border. India adopted iii) Meeting between Home deepen bonds several measures including — Secretaries of the two between people deployment of Border Security countries. Force (BSF) between entry and exit points for guarding the Again, home and foreign ministers international border, establishing of the two countries have been Border-Out Post, erecting barbed meeting regularly to discuss issues wire fences within the 150 metres concerning border management. inside its territory, floodlighting These interactions have helped and increasing surveillance along voice concerns and develop an the border.4 understanding between the two countries. The sustained interaction For regulating the border, India between the two countries has established land custom stations helped to deepen cooperation and immigration check posts at between them. BSF’s deployment of designated entry and exit points non-lethal weapons at the border along the border with Bangladesh with Bangladesh in an attempt to to check entry of foreigners. reduce the death of Bangladeshi nationals at the border — a India recognised the need for concern raised by the Bangladeshi developing the bordering areas border guarding force — is an and Border Area Development outcome of these dialogues.6 Programme (BADP) started in 18 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

Introduction of non-lethal weapons management difficult. The peaceful has indeed reduced the number of resolution of the land boundary the deaths of the Bangladeshi dispute further helped to boost nationals. In 2009, the number of confidence between the two deaths at the border was 67 while countries. 24 people died in 2017.7 In 2011, India and Bangladesh India and Bangladesh at present signed a Coordinated Border share close ties and cooperation Management Plan (CBMP). The aim with respect to border of singing the CBMP was to management. A landmark episode synergise efforts of the border of this cooperation has been the guarding forces and to control resolution of the boundary dispute. cross-border illegal activities and India and Bangladesh through crimes more effectively and sustained dialogue resolved issues maintain peace and harmony along like delimitation of the land the border. boundary, enclaves and land in adverse possession; which was a As per the plan, the two countries source of irritation between the resolved to fight trans-border two countries for a long period. crimes like — human trafficking, Closure of the land boundary drug smuggling, arms/ dispute contributed to better ammunition/ explosive trafficking, management of the border. dealing with fake currencies, trespassing (arm/unarmed) of the For a long time, the enclaves were border, smuggling, theft, terrorism, an important corridor for straying of animals, cattle transnational crimes between the smuggling and illegal migration. two countries and made border India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 19

Under this plan, the two countries Involvement of the border pledged to carry out coordinated communities in cross-border patrolling, exchange intelligence, crimes, which is largely an outcome hold dialogues and meetings of a dearth of livelihood between the forces to resolve opportunities in the border areas, is issues mutually and respond with recognised as an obstacle to a joint action in case of a serious peaceful border between the two incident. Today, India and counties. Thus, a necessity for a Bangladesh carry out joint holistic solution was felt, one that patrolling to curb criminal activities would address both issues of across the border. livelihood and curb illegal activities, primarily smuggling, in the The step has been the outcome of bordering areas simultaneously. the cooperative approach adopted by the two countries. The border It is worthwhile to mention that guards are also conducting joint prominent products smuggled exercises to strengthen between India and Bangladesh cooperation. On February 27-28, include dry fish, fruits and 2019, BSF and BGB conducted a vegetables, kerosene and garments. two-day long Mainamati Maitri- The exchange of these products Exercise-2019 in the Tripura sector across the border does not qualify to enhance operational efficiency as criminal activity as such, and between the two countries in hence, could be dubbed as combating the vulnerabilities informal trade. together.8 However, since the trade does not Despite the progress achieved in take place under the legal the border management framework it falls under the cooperation between India and category of smuggling. A Bangladesh, controlling illegal prominent reason for the thriving activities across the border of such illegal trade across the remained a challenge and border is procedural difficulties demanded a fresh outlook to the involved in legal trade, which problem.9 communities find hard to fulfil or lacks the necessary skill to handle.10 20 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

Continuation of such illegal trade is Roughly, goods worth Rs 4 crore are problematic because of following traded annually in each of these reasons — a) causes loss of haats.11 Given the volume of bilateral revenue; and b) the trade because trade between India and of its informal nature is not Bangladesh, via formal channels, is monitored like in the case of legal around US$10bn, the percentage trade, hence creates opportunities of trade happening through the for the criminal groups to take border haats is minimal. advantage of its loopholes to carry Nevertheless, the impact of these out various criminal activities under haats on the lives of the its cover. Some of the risks are – communities has been phenomenal. cross-border money laundering since payment of such trade cannot The haats have been a boon for the take place via formal channels. communities living closest to the Additionally, the fear of fake border. The traders are benefiting currency racket runs high. Given by selling their products in the These haats are the risks involved, formalising the haats, the buyers are also saving informal trade became a necessity. money as they do not have to contributing to the travel far for buying the products. empowerment of Impact on Grassroot Again, the haats are providing new women in these avenues of livelihood for local areas as they are Stakeholders communities since they are also participating in the Border haats along the India and involved in providing services like economic activities Bangladesh border are established transport, running tea and food that have emerged to provide a livelihood to the stalls on the haat days. due to the border communities. Further, it aimed at formalising the informal Additionally, these haats are establishment of trade across the border. India and contributing to the empowerment the haats Bangladesh established the first of women in these areas as they border haat in 2011. Currently, four are participating in the economic border haats are functioning in the activities that have emerged due to states of Tripura and Meghalaya the establishment of the haats. bordering Bangladesh. Initially, Earlier, women of the bordering goods produced in areas close to areas where the haats are located the border were traded in these had limited opportunities to haats but the number of products participate in economic activities has been increased over time. because they could not travel out of the locality, unlike the male Following are the four operational members in their community. border haats: • Balat (Meghalaya)- Again, the border haats promoted Sunamganj () ties among communities across the • Kalaichar ( Meghalaya)- border. The people across the Kurigram (Rangpur) border have familial, social and • Srinagar (Tripura)- linguistic linkages but these ties Chagalnaiya () were disturbed due to the division • Kamalasagar (Tripura)-Kasba of the country. The haats provided (Chittagong) the communities to re-energise India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 21

these bonds by providing a Conclusion meeting platform for families The border haats add a new having their relatives in the dimension to the India and neighbouring country; as for many Bangladesh border cooperation (especially women), visa and and is a clear departure from more immigration process particularly conservative measures for travelling to a foreign country is addressing border security cumbersome and unaffordable. challenges. The haats have become meeting points for the communities and The border haats highlight the help to develop and promote close relationship between trade, mutual understanding, which security and border communities, contributes to the peace and an aspect often overlooked while stability in the border region in no framing policies. The border haats uncertain terms. highlight the importance of border communities in effectively Besides, the haats have reduced managing and securing the border. informal trade substantially as Expansion of the border haats will items earlier traded through help larger numbers of people to informal channels are presently enjoy its benefits that in turn will traded through border haats. A contribute to the development of rise in formal trade helped in the region and deepen bonds subverting the risks involved in between people. It will help in informal trade, which in turn, sustaining the border cooperation threatens national security. between the two countries.

Endnotes

1 Joyeeta Bhattacharjee, “Enhancing Border Management Cooperation for BBIN”, ORF Special Report, July 2017 2 Joyeeta Bhattacharjee, “Integrated Check-Posts on the India-Bangladesh Border: A Field Survey and Brief Analysis”, ORF Special Report, August 2019 3 Joyeeta Bhattacharjee, “India-Bangladesh Border Management: The Challenges of Cattle Smuggling”, ORF Special Report July 2013 4 Pushpita Das, “ India-Bangladesh Border Management : A review of Government’s Response”, Strategic Analysis 32(3):367-388, May 2008 5 About the Border Area Development Programme”’, Ministry of Home Affairs, Government of India 6 Pushpita Das, “The India-Bangladesh Border: A New Beginning”, IDSA Comment, 10 October 2011 7 Kamrul Hasan, “Diplomacy drives down border deaths”, Dhaka Tribune, 9 September 2018 8 “Border guards of India and Bangladesh conclude 3-day joint exercise in Tripura”, Devdiscourse.com, 28 February 2019 9 Views expressed by a retired border security professional of India during an interview with the author. 10 Sanjib Pohit and Nisha Taneja, “India’s Informal Trade with Bangladesh: A Qualitative Assessment”, World Economy 26(8): 1187-1214. February 2003 11 Nikita Singla and Sanjay Kathuaria, “Connecting communities through border haats”, World Bank, 24 September 2018 22 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 23

Border Haats and 2 Women Empowerment

Mahbuba Nasreen Professor and Director, Institute of Disaster Management and Vulnerability Studies & former Professor in Sociology University of Dhaka, Bangladesh

Historically, women in South Asia are restricted from participating in the labour market due to various socio-cultural constraints. However, as with other countries in the region, opportunities for participation of women in labour force have increased in Bangladesh and India. This has happened due to gender-friendly changes in the policy advocacy and enactment of the legal provision in favour of women over the last decade.

As most of the Border Haats are located in remote areas, the means of transportation are inadequate. Although there are a few women visible on the Indian side of the bordering areas, women are almost invisible on the Bangladesh side (two percent only).

This Paper argues that Border Haats can be instrumental to women’s empowerment in the region by enhancing women’s participation in the labour market.

Introduction Economic empowerment through access to income-earning The empowerment of women is opportunities is one of the major crucial to the promotion of gender indicators of women equality. It focuses on identifying empowerment. However, and redressing power imbalances discriminatory practices are and giving women more autonomy discernible in the context of to manage their own lives. gender-based participation in public and private spheres, Women’s empowerment is vital to especially in South Asian countries. sustainable development and the realisation of human rights for all. Culturally, women in South Asia are Empowerment of women is restricted from participating in measured through several labour market due to socio-cultural indicators such as economic, constraints and women’s gender educational, political identity. Reproductive roles of empowerment as well as access to women, gender norms in the reproductive health support and patriarchal social structure, and resources. 24 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

such other barriers militate against As the informal trade (mainly in women’s mobility and respect of agricultural empowerment. commodities) has a gender face, the CUTS project attempts to Although women in the region develop a model to formalise the contribute significantly to the cross-border economic transaction informal sector, much of their opportunities for marginalised activities are counted as domestic women and men. or subsistence roles (women involved in food processing or It is expected that Border Haats packaging from within their could be instrumental to women’s households), their gender-assigned empowerment and encourage roles (women participate in almost women to emerge as all the production-related activities, entrepreneurs. However, in in addition to their domestic achieving such a goal, attempts chores, while men are mostly should be made to usher in engaged in the public sphere) all of changes in the existing socio- which are mostly unremunerated. cultural conditions, peoples’ attitudes towards women However, over the years, significant entrepreneurs and create mass changes in policy advocacy, legal awareness and a favourable public Women in South provisions in favour of women, opinion. Asia are restricted access to credit, and other relevant actions in countries like Why Women’s from participating Bangladesh and India have created in labour market Involvement in the opportunities for women to Economy is a Major due to socio- increase their participation in the cultural labour force. Indicator of constraints and Empowerment? Bangladesh and India have shared- women’s gender Despite being a fast-growing culture, trade, and language identity region, women’s involvement in the through history. Although the labour force is quite low (23.6 per political division in 1947 cent) compared to men (80 per interrupted many of the ties, cent) in South Asia. State formal and informal trade between machinery in the region does not the countries persisted. seem to consider women’s economic empowerment as crucial However, over the years, both for achieving inclusive and countries have been witness to sustainable development. Yet, informal ways of trading and convergent theories agree that attempted to overcome the income generation activities of challenges and risks involved in the women as individuals or groups are process. Women and men in the related to their economic small and marginal categories are empowerment. mostly involved in informal trading. Women’s economic empowerment is related to the social, political, India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 25

psychological basis as well as the Over the last decade, governments transformation of society. With the in South Asian countries have taken provision of increased economic remarkable strides in the direction opportunities, a girl would be of economic development and considered as an asset rather than empowerment of women. In a liability (Nasreen, 2012; 2019). Bangladesh, for example, gender budgeting in ministries, the This will ultimately contribute to introduction of interest-free or low- increasing women’s participation in interest loans in banking and the labour force and thereby raise microcredit systems for women’s their status in society (Moyle et al, business, and the development of 2006; Hossain, 2001; Steps & GAD small entrepreneurship have Alliance, 2020). encouraged a large number of women to start-up businesses and Although women’s involvement in trading. business or trade has increased in South Asian countries, their However, the concept of the Border participation is very low compared Haat trade, especially the to men. Research indicates that participation of women as vendors, women’s involvement in business is still at an infant stage and or trade depends on factors such requires integration in the as autonomy and freedom in the mainstream agenda. workplace, security, and satisfaction with the work involved. Women Engagement in Economic empowerment, through Border Haat as Vendors entrepreneurship, running a It is evident in the Border Haat business, or trade can provide a areas in both Bangladesh and India woman who has experienced that men are outnumbering redundancy, divorce, or such other women as vendors. In the crisis a sense of self-esteem and gendered culture, selling security. Fulfillment of personal commodities in an open market or goals through income-earning vending at the Haat is considered opportunities is also related to too strenuous, unsuitable, and improving women’s status in unsafe for women, as most of the society. Border Haats are located in remote 26 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

areas where transport is Bangladesh (Sunamganj). The inadequate and connectivity poor. major driver of this stark difference is the different cultural ethos in However, although there are a few these mirror locations. Meghalaya women visible on the Indian side society is a matrilineal society and of the bordering areas, women are Bangladesh is strictly patriarchal. almost invisible on the Bangladesh side (two per cent only). Even when In Bangladesh, in some areas, even there are some women, they are visiting a Haat is considered an accompanied by male members of offence for women who are liable their families. There is also wage to maintain the culture of parda/ discrimination between men and purdah (veiling) norms. The only women (CUTS, 2019). one-woman vendor found in the Sunamganj belongs to a tribal/ There is a different social status of indigenous/ethnic community women in different locations in (Garo/Mandi), which is also both India and Bangladesh. For matrilineal. example, in the Sunamganj border area, women’s participation from On the other hand, Tripura state of Meghalaya of India, both as India is host to a patriarchal society vendors and vendees, is not only and so hardly any woman is seen to significant but also dominating, be involved in trade at Border Haat, however, in contrast, there are as highlighted by CUTS. hardly any Bangladeshi women visible in that location, especially as However, the participation of vendors. women vendors is dependent not only on their visibility, About 50-percent of vendors from infrastructural facilities of the India are female in contrast to only Border Haats also play a significant one female vendor from role in this regard. Not only are India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 27

there no separate washrooms for them at the Border Haat with a men and women, but the toilets substantial margin for themselves. are also often unusable on account of paucity of water and hygiene. It must be mentioned here that political clout is also invoked in The open spaces for sellers seem ensuring selection as Border Haat unsafe and there is a fear that traders. The lack of political women may lose things they carry. connection of women limits them These conditions restrict women from becoming traders at the who fail to get the necessary Border Haats. approval from their families to participate in Border Haats. The Border Haat committee in Balat has taken special initiative to Specific Challenges for increase women’s participation in the Indian part by increasing the Increasing Women number of vendor ships in favour Vendors of women, from 12 to 25. This is a remarkable step towards The process of selecting traders in addressing the issue of gender Border Haats often works to the equality. If other Haats also follow detriment of women traders. The this instance, alongside following issues are considered in The Border Haat enhancement of infrastructural selection: committee in facilities, women’s participation in • Is the vendor a resident? Border Haats would certainly Balat has taken (Whether s/he lives within 5 increase. special initiative km of the Haat) to increase • Does s/he run any business In Balat, BSF has constructed women’s of her/him own? (If so, copy separate toilets for women and participation in of trade license) men nearby of Border Haat. • Does the applicant have a the Indian part by However, since these fall in Indian bank account corroborated increasing the territory, by the Bank statement? number of vendor would not be able to access them. ships in favour of Women are aggrieved that they are To increase women’s interests and women often disqualified from doing participation as vendors and business at the Haat for not vendees, initiatives may be complying with the afore- encouraged about the exploration mentioned items/item. Farmers of local items based on women’s also face similar problems as they interests. There are several are neither involved in businesses handicrafts, homemade food of their own nor do they possess products, and indigenous fruits and any trade license. herbs which women fancy and which are, unfortunately, fading. Such qualifications work to the These could be revived and advantage of the better off popularised through research on businessmen, making them the indigenous knowledge and skills of sole traders at the Haats. They local communities. purchase items from local people at relatively cheap rates and sell 28 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

Women as Buyers in items at relatively cheaper prices. Border Haat As the Haats are located nearby their households, women can Although women’s participation as frequent these markets to procure vendors is limited in Border Haats, necessary items with the help of their role as buyers/consumers is their modest earnings or savings. significant. A survey on 60 women This has consequences for the well- in the border area around India being of the household, in general, indicates that 18 of them purchase and for women, in particular. goods from the Border Haat for sale in the local markets or for self/ For example, the intra-household family consumption. These women food allocation system is far from usually purchase vegetables, fruit equal, with men consuming the juice, melamine or plastic goods, lion’s share. Women visiting the and clothing. Haats may also find items they like or fancy (such as household items Most of them own small shops or handicrafts, etc.) and which they through which they sell the goods feel reluctant to ask for out of fear purchased at the Haat in the local of facing anything from ridicule to market. All the 18 women rejection. mentioned that they can’t stay long or go to different Haats due Out of the above-mentioned 18 to compelling domestic women, 12 are linked with the Balat responsibilities like looking after Border Haat and consider that their children and other chores. annual incomes have risen after they engaged with the Haat. Border Haats also benefit women However, the lives and livelihoods in poorer and marginal categories of women (7 in number) in the by offering them access to food Border Haat area of Tripura have India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 29

not shown any significant change. Conclusion They purchase items for their Border Haat is a relatively new family consumption. venture in the region bordering India and Bangladesh. It is A similar survey was conducted in expected that the initiative will the Bangladesh part with 60 boost the quality of lives and respondents, 13 of whom were buttress the livelihood women). These women visit the opportunities of the local Border Haat occasionally for inhabitants. They would purchasing essentials for personal simultaneously work as instruments or family consumption. They for limiting illegal businesses and usually purchase cosmetics, fruits, formalise informal trade. spices, vegetables, and other food items. Border Haats can also be good avenues for enhancing women’s Like women in India, women in participation in the labour market, Bangladesh also come to the thereby empowering them. Cultural Border Haat to purchase goods at norms and practices prevalent in a cheaper prices. Some women on patriarchal society often restrict the Bangladesh side mentioned women from participation in public that in the Border Haat goods are fora, especially in the Border Haats. sold in wholesale and they often have to return home without Given the conducive, secure, and buying any item. flexible working environment of Border Haats, the community, in In most cases, women and men in general, and women, in particular, Bangladesh purchase goods from need to be sensitised about the Border Haat for their women vendor ships and related consumption and show less prospects for women interest in developing empowerment that Border Haats entrepreneurship. hold out. However, the traders of Bangladesh requested an increase in the Recommendations number of vendors in Border To enhance women’s participation Haats. It must be mentioned here in Border Haats, the following that, while the number of traders complementary measures are on the Indian side (Kalaichar- suggested: Baliamari Border Haat) increased 1) Flourishing informal trade in from 25 to 50 percent, no such the bordering areas between development has happened on the India and Bangladesh may be Bangladesh side. reduced through building the capacity of women in trading; 30 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

2) Making provisions for a 4) Exploring and exploiting local flexible and safe working resources and skills to get environment for women by more women interested and putting in place adequate involved in trading; and infrastructural facilities like 5) Raising awareness of clean, well-functioning, and community and household separate washrooms for members through gender- women alongside sensitive initiatives to help transportation facilities and women overcome entrenched security measures; patriarchal customs, attitudes, 3) Extending financial support and practices that retard and incentives to women such women empowerment. as easy or interest-free loans;

References

Bordering on Happiness: An Assessment of Socio-Economic Impacts of Bangladesh-India Border Haats - CUTS International, Jaipur, India. 2019.

Hossain M.K, M. Kabir, 2001; “Purdah, mobility and women’s empowerment and reproductive behaviour in rural Bangladesh” published for Council for Social Development – 84-102 Social Change Vol. 31 No.3

Moyle Tracey l. Maureen Dollard and Saswata Narayan Biswas, 2006; “Personal and Economic Empowerment in Rural Indian Women: A Self-Help Group Approach”; International Journal of Rural Management 2(2); published in Sage Journals

Nasreen, Mahbuba, 2012; 2019. Women and Girls-Vulnerable or Resilient? Institute of Disaster Management and Vulnerability Studies, & former Professor in Sociology, University of Dhaka, Bangladesh

Steps towards Development and Gender and Development Alliance (GAD), 2020, Interest and Condition free loans for Rural Small Women Entrepreneurs, June 2020 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 31

Border Haat as a Means to Promote Trade and Cross-border Value Chains 3 Between Northeastern States of India and Bangladesh

Biswajit Chakrabarty Director, Federation of Indian Chambers of Commerce & Industry, North-East Advisory Council Guwahati, Assam

The primary objectives behind the establishment of border haats between the North- eastern states of India and Bangladesh were to provide alternative livelihood opportunities to the local inhabitants and reduce informal trade. The encouraging performance of the four existing haats reflects that these institutions are instrumental to the creation of an ecosystem that enhances interaction and cooperation between communities residing across borders.

In this context, this Paper explores the potential for buttressing Indo-Bangladesh trade through institutions, such as border haats. Initiatives like infrastructural upgrading, specific policy expansions and trade, and investment promotions are discussed in this regard. Furthermore, the paper highlights the possibilities of facilitating cross-border value chains leveraging border haats as hubs of increasing economic activities.

Introduction When people living in the border areas have limited livelihood Trade is considered by many to be options the problem is even more as old as or even older than pronounced. The Northeastern civilisation; trading as against the states of India have faced these primordial urge to seize by force, is issues ever since the country was perhaps one of the most important partitioned in 1947. building blocks of the modern civilisation. Before 1947, the region formed a part of a large contiguous geo- Given the complexity of our political entity including present- civilisation, competing demands of day Bangladesh, the rest of India, society, and national interests make and even British Burma. Trade it necessary to regulate trade in within this large geographic area different ways. Whenever the trade was unrestricted, goods and barriers are set too high, people people moved with ease. tend to find ways to circumvent the formal system, giving rise to Backed by abundant natural informal trade. resources, an extensive network of 32 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

rivers, and one of the earliest Overnight, farmers and producers railway networks in India, Assam, lost access to their primary which comprised most of the markets, and villagers were forced Northeast, emerged as one of the to procure their daily necessities economically progressive regions elsewhere, often facing far greater of the country. levels of difficulty and at a greater cost. Products like tea, timber, petroleum produced in the upper reaches of After Bangladesh came into being Brahmaputra, or in the Surma in 1971 some of the old Valley had easy access to seaports connectivity links were re- in Kolkata and Chittagong from established and intermittent efforts where they were exported to made to ease the movement of different parts of the world. goods between Northeast India and Bangladesh. Road connectivity The hill districts of the region sold across some border crossings, such The India substantial quantities of as -Tamabil and Agartala- Bangladesh Joint horticultural produces, betel nut, Akahaura was revived. Also, the Committee on forest products, etc. in the markets riverine routes were partially Border Haats has of eastern Bengal. In return, they reopened through the India- acknowledged the imported salt, yarn, and other Bangladesh Protocol on Transit and contribution of industrial products from Bengal Trade. the haats in and other parts of the country since the late 19th century. After the initial spurt of activity, providing however, the efforts became livelihood All this, however, came to a virtual constrained by various factors and opportunities and standstill following the partition of seamless connectivity has remained enhancing people- India. But for a narrow corridor, the elusive to date. Despite India and to-people Northeastern states were almost Bangladesh share friendly relations, connectivity cut off from other parts of India. As the movement of goods and between the two eastern Bengal became East services across the border with Pakistan, railways and road Northeast India is anything but countries linkages snapped almost unfettered even today. immediately and riverine connectivity, which remained Given the difficulties and often operational for some time, high transaction costs associated eventually snapped as a fallout of with formal trade, informal trade the war with Pakistan in 1965. began to flourish; so much so that at one point it was estimated that Border villages and towns which the volume of Informal trade was had always traded with each other more than double that of formal were suddenly asked to stop trade. trading with their neighbours and look for markets elsewhere Today, Northeast India presents a because an imaginary line called unique study in contrasts. With the international border now 5300 km of international borders, divided them. the region accounts for over 35 per India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 33

cent of India’s total length of land It was also felt that the border borders. The region is also India’s haats would help reduce informal only land link with the Association trade by creating an avenue for of Southeast Asian Nations trade outside the normal channels (ASEAN). Yet the region accounts of trade. for only a minuscule share of India’s international trade. Following this announcement, the first border haat became For example, the region’s trade operational at Kalaichar in Garo with Bangladesh accounts for only hills of Meghalaya in July 2011 and four per cent (2.7 per cent of encouraged by its performance exports and 10.6 per cent of and smooth operation, three more imports) of the country’s trade with border haats were established the neighbouring country. The between 2012 and 2015 in Tripura figure seems appalling given the and Meghalaya. long-standing cultural and economic relations that the north- The haats located on the zero lines east shares with Bangladesh. of the India-Bangladesh border, operate once a week during In 2010 during the visit of the daylight hours for about six hours Prime Minister of Bangladesh to with a limited number of buyers India, the two countries decided to and sellers. set up border haats to give a boost to people to people connectivity While the border haats allow only and help mitigate the difficulties limited trade in select products and faced by people living in the traders require authorisation to buy remote border areas, by providing or sell, the haats have been them alternative livelihood instrumental in improving opportunities. livelihood conditions and in 34 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

reducing illegal trade. The as meeting their primary objective achievements of the haats have is concerned. been so encouraging that the two governments have decided to take Considering the success of Border the initiative a step further by Haats so far, it is felt that the sanctioning border haats at six new border haats have the potential to locations. become an important means for enhancing bilateral trade through an The India Bangladesh Joint expansion in their scope, in terms of Committee on Border Haats has the number of items traded, the also acknowledged the contribution number of vendors allowed and the of the haats in providing livelihood days and hours of operation. opportunities, augmenting trade, and in enhancing people to people As of now, only a limited number of connectivity between the two items can be traded in the border countries. haats and only a few of these items account for the bulk of the trade. Opportunities for For example, in the Kalaichar Growth and Border Haat, during the past three Bottlenecks years, over 90 per cent of the trade value was accounted for by only a The border haats were established few items like Plastic Products, Betel as a confidence-building tool with nuts, and spices (particularly cumin the limited objective of providing seeds). Given below is an illustrative alternate livelihood opportunities Table 3.1 showing the value of to people living in the border commodities traded at the border areas. The existing haats have haat during the first quarter of 2018. performed reasonably well in as far

Table 3.1: Major Commodities traded at Kalaichar Border Haat (January-March 2018)1

Commodity Sold by Indian Sold by % of Total Traders (M) Bangladeshi Trade Traders (M) Plastic Items 4,241,280 14.7% Betel Nut 1,067,590 3.7% Cloths 287,100 1.0% Cumin Seeds 21,187,500 73% Ginger 810,790 3% Grapes 408,800 1% Others 818,531 114,310 3% 23,225,621 5,710,280 Total Trade (M) 28,935,901 Source: Department of Commerce, Government of India India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 35

Even a cursory glance at the For starters, the haats could be commodities traded in the other allowed to operate at least five-six border haats, reveals that trade in days a week. This will not only border haats is dominated by a increase the volume of trade but limited number of products, of also make it possible to allow a which, given the volume, a greater number of traders from substantial part is probably resold both sides to participate if outside the immediate vicinity of necessary on a weekly rotation the border haats. basis, even without necessitating any significant expansion of the Also, the buyers are only allowed to existing infrastructure. purchase goods worth a maximum amount of US$200 per day. As far as Then, more items should be the daily necessities of people living allowed for trade, without worrying in the border areas are concerned, too much about hurting the only a limited part is currently being interests of trade through other met by the border haats. formal channels. The volumes are too insignificant for that to happen This suggests the need for a in the immediate future. A CUTS study reassessment of the list of items draws attention allowed to be traded at the border And if the volumes do increase to to some cross- haats. It may well be argued that if such a level that other channels of border value the items for trade are selected trade come under pressure, a chains which got based on a proper need/market simplified system of levying and a new lease of life assessment, the volume of trade at collecting duties can be worked out because of the the border haats could see an at that time. exponential jump. Border haat set up Also, the daily limit of US$200 in that area Now that the border haats have worth of goods that is currently proven their worth and the system allowed for each buyer should be has been ironed out, it is perhaps enhanced so that there can be a time to move beyond the meaningful expansion of trade to necessary optics of bilateral include other products of daily relations and recognise the necessity. The existing economic potential of this infrastructure of border haats experiment. including washrooms is in urgent need of upgrading. If the border haats are to have any real impact on economic Connectivity to the border haats on development, a paradigm shift in both sides of the border also needs the entire outlook will be required. major improvement. Consideration The authorities on both sides of the should also be given to the possibility border need to view the border of expanding the infrastructure to haats as tools for enhancing allow more vendors and vendees to bilateral trade and economic participate in the haats. cooperation. Meanwhile, several initiatives could be taken without Given the limited number of border disturbing the existing framework. haats that are functioning at 36 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

present, the radius of 5 km within trade and other collaborative which vendors and vendees can ventures. Basic facilities for holding participate, could also be B2B meetings, displaying products, stretched to say 10 km for the time etc could be developed at each being, and ultimately even to 15 or border haat. 20 km. Allowing businessmen to meet Hubs of Economic without the need for time- consuming, expensive and at times Activity difficult travel to each other’s It has been acknowledged by both country could give a major boost governments, that, apart from to trade and investment. trading, the border haats also serve the important purpose of forging Facilities for limited value addition stronger people to people like sorting, grading, and connectivity. packaging could also go a long way in boosting the efficiency of This important role played by the operations and trade volumes. If border haats needs to be necessary, the value addition emphasised and expanded further facilities could be regulated to catalyse business-to-business through warehouses and by collaboration, to give a boost to creating specially designated areas bilateral trade and encourage the running under a system similar to development of efficient value custom warehouses. chains. Ultimately, the border haats could The window offered by the border form the nucleus around which haats should be utilised to create a Special Border Development Zones platform for businessmen from could come up at select locations both countries to meet and discuss along the border to encourage India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 37

investment in manufacturing from improvements in the supply chain, both countries. help upgrade the production base, enhance trade, and provide better Such special development zones in livelihood opportunities. Therefore, other parts of the world have had a the BDZs could give a major boost major impact on overall trade and to trade and investment not only in investment and, in most cases, India and Bangladesh but also have completely transformed the attract investments from other local economy. countries.

For example, the border The border development zone could development zones (maquiladoras) either be developed as Cross Border along the Mexico-US border Development Zones straddling both employ over 1.2 million people and sides of the border or could be account for over 40 per cent of standalone special development Mexico’s exports to the US. While zones on either side of the border. the maquiladoras, set up under There are several examples of Mexico’s Border Industrialisation successful models of both kinds from programme in the early 1960s, across the world. have played a major role in the economic development of Mexico, The Horgos/Khorgos Cross Border their impact is felt across the Economic Zone straddling China and border also. At one point, one of Kazakhstan, and the Mohan/Boten the maquiladoras in Ciudad Juarez Cross-Border Economic Zone created 20 per cent of the jobs between China and the Lao PDR, are across the border in El Paso2 (JESÚS two such cross border development CAÑAS, 2011). zones.

With proper development focus, The Horgos/Khorgos development the BDZs can bring about major zone was designed to be a hub for 38 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

trade, entertainment and their own BDZ’s close to the border intercultural exchange, where haats, with the haats providing a merchants and travellers from mechanism for connecting the two China, Central Asia, Europe, the border development zones. Russian Federation and Turkey could meet and stay for up to 30 Over time as synergies develop and days visa-free to communicate and inconsistencies are ironed out, trade. more robust connectivity will evolve naturally between the BDZ’s Since its opening in 2012, the SEZ and the governments may consider has served mainly as a duty-free integrating the two BDZs into one commercial centre, hosting large economic zone. shopping centres and convention facilities. The zone on the Chinese– For the BDZ’s to succeed, Lao border, in contrast, seeks to substantial infrastructure incorporate two border SEZs into investment will be required not Border haats one joint zone. only within the BDZ’s but also to could serve as provide dedicated customs facilities platforms for The Mohan SEZ on the Chinese and to build robust connectivity side was established in 2001 as a with the nearest economic centres. boosting business border trading zone. The Boten Special packages of benefits and collaborations Zone on the Lao side was incentives will also need to be and ventures developed in 2003 as a warehouse, offered to attract investments into between the two tourism, and trade centre. The the BDZ’s. countries and development plan of the cross- result in a greater border zone was finalized in 2015 Ideally, the BDZ’s should allow visa- flourish of between the two governments, and free entry of workers, vendors, the construction is still underway suppliers, etc from across the bilateral trade (Chen, 2019). border with reasonable checks. A package of incentives with access Modern, border development to tax exemptions discounted land zones are increasingly adopting a prices/rental rates, easy credit at cross-border model as a way to preferential rates, duty exemptions, concentrate resources of the two etc will help attract investments governments, better distribute the into the BDZ’s. benefits of the zone, and simplify the management of the zone by Experience in similar Border creating a separate customs area. Development Zones elsewhere shows that any revenue loss on However, such cross border models account of the benefits and may be quite complex to set up incentives is usually recovered and will require close coordination many folds in overall economic between the Governments of India benefits within a few years. and Bangladesh, policies and laws will also need to be reconciled. For example, the Lao Bao Special Economic and Commercial Zone on To begin with, therefore, both the Vietnam-Lao Border offers countries could choose to develop discounted rental rates and India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 39

concessions on foreign ownership border value chains such as the of land, a reduced corporate tax betel nut value chain in the rate of between 100 per cent and Kalaichar- Baliamari area which got 50 per cent, discount development a new lease of life because of the finance from the Vietnam Bank for Border haat set up in that area. Investment and Development, and financial support for infrastructure Northeast India and Bangladesh, development and marketing. rich as they are in natural resources, are home to several Between 2002 and 2009, the zone other value chains that could attracted 50 projects, at a total benefit immensely from a cross- capital investment of VND3,670bn border approach to their (around US$168mn). This has development. brought about a major transformation in the largely rural For instance, Northeast India is a economy of Central Vietnam. source of some of the best spices and horticultural products in the By natural progression, the border world, while Bangladesh has a haats should evolve into hubs of sizeable food processing industry economic activity. While a different that could import fruits, vegetables approach from the one suggested and spices from the Northeast. here, may yield better returns or may be more prudent, the fact Aggregation centres with customs remains that the opportunity for warehouses and facilities for basic greater economic productivity value addition could be set up in offered by the Border Haats ought the border haats or their vicinity not to be ignored. and the products could be supplied to Bangladeshi companies through Facilitate Cross Border the border haats. This would however require investment in Value Chains testing laboratories etc and the Northeastern India and Bangladesh rules will have to be tweaked share complementarities with suitably. respect to several products and service value chains. Many of these Then again, Bangladesh has a value chains which existed through flourishing garments industry history were disrupted by partition which is also looking at diversifying and the subsequent disruption of its range of products. The exquisite connectivity linkages, while some silk and handloom products from others survive nominally through the hills of Northeast which border informal trade. Bangladesh could prove to be a valuable resource for the garments The study on “Border Haats industry. between India and Bangladesh as a Tool to Reduce Informal Cross The Industry houses from Border Trade between the Two Bangladesh could support Countries” by CUTS International, handloom clusters in the border draws attention to some cross- haats, with raw material and buy 40 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

back their products through the quality of their lives and living border haats, with suitable standards. provisions/amendments in respect of the rules governing the border Women, otherwise engaged haats. exclusively in the performance of domestic chores, have found a The plastics industry in Bangladesh means to derive incomes through which imports all its raw material partial engagement with border from countries like Saudi Arabia, haat trade. Malaysia, and India (, etc.), also sells its products in the Border haats, have, therefore, Northeast. This industry could served as a means of women benefit by importing its raw empowerment. People-to-people material from Assam, which has a connectivity among residents on gas cracker plant and saves on the two sides of the border has also transportation cost. been buttressed through the interactions among participants of These are but a few indicative value border haat trade and the chains from a long list of products opportunities for socialisation that and services which could border haats offer. It also needs to benefit both countries with a be reiterated that informal trade cross-border approach to their has perceptibly declined as a result development. An exhaustive study of border haats. of value chains should be carried out to help identify Border haats have made a products and services which could perceptible difference to the lives be prioritised for each border haat. of the local inhabitants. Not only that, border haats may have a Ultimately, to develop sustainable growing role to play if one bilateral economic cooperation considers the various natural between India and Bangladesh, it resources and complementarities must be balanced and mutually that the border regions between beneficial. A value chain approach India and Bangladesh offer. Such to economic cooperation will complementarities may well pave ensure that economic cooperation the path to sustainable value chains is based upon mutual in respect of various products and complementarities. services.

Conclusion Under the circumstances, border haats could serve as platforms for The poor and marginalised people boosting business collaborations residing in remote locations along and ventures between the two the border between India and countries and result in a have benefitted much flourish of bilateral trade. It may from the institutionalisation of not be unduly optimistic to hope border haats. A spurt of livelihood that the day is not far off when opportunities has resulted in a border haats will serve as hubs of veritable improvement in the economic activity and vital nerve India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 41

centres of bilateral trade between If necessary, a framework for the India and Bangladesh. regulation of these activities could be evolved. Ultimately, the border With the learnings from the haats could form the nucleus successful operation of the border around which Special Border haats over the last few years, it is Economic Development Zones time that the border haats be used could come up. Similar zones in for greater economic cooperation, different parts of the world have by creating facilities for business- contributed significantly to to-business interactions, economic growth in their exhibitions, and specially respective countries. designated areas for value addition.

Endnotes 1 Compiled from monthly reports submitted by Superintendent of Customs, Mahendraganj LCS to Deputy Commissioner, South West Garo Hills, Ampati, Meghalaya. 2 https://www.dallasfed.org/~/media/documents/research/papers/2011/wp1107.pdf 42 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 43

Border Haats as Centres for Exchange of Agricultural 4 Inputs, Ideas and Practices

Sudhir Chandra Nath Head of Business, Advanced Chemical Industries Limited, Dhaka, Bangladesh

Border haats are rough and ready markets organised on a specific day of the week for a specific duration. No tax or customs duties are levied on the products bought or sold through the border haats. Presently, there are four operational border and six sanctioned border haats along the India-Bangladesh border. These border haats are located in distant locations that are not well connected with urban centres. Agriculture is the mainstay of a majority of the villagers residing in the vicinity of the border haats.

Various studies underline that significant trade in agricultural inputs happens between the two countries through informal channels. A study by CUTS established that these border haats not only had a positive impact on the lives and livelihood of the border communities but were also instrumental in reducing informal trade.

This Paper argues that the benefits from border haats could be further upscaled if farmers residing on either side of the border are allowed to exchange various agricultural inputs and associated knowledge on agricultural practices through the border haats.

Introduction revision of the MoU in April 2017 (an addendum had been signed in In 2010, the prime ministers of 2012), Governments of both India Bangladesh and India signed a and Bangladesh decided to open comprehensive framework six more border haats. These steps agreement covering a range of expanded the scope for trade and issues, one of which was a economic activities for the border memorandum of understanding communities residing close to the (MoU) to promote cross-border border haats.2 trade and cooperation through the establishment of border haats.1 The border haat initiative recognised and re-established the Subsequently, four border haats long-standing people-to-people were established along the India- ties in this sub-region, where well- Bangladesh border. Following a established demand and supply 44 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

structures had been severed, once an important stop along the following the partition of Bengal. Silk Road. It was considered a showcase of border trade in The initiative also sought to Central Asia, characterised by the reduce informal trade by diverting document-free movement of such trade to formal channels and traders and the duty-free by doing so it reduced smuggling movement of goods and services. and associated unlawful and The World Bank (2007) documents disruptive activities in the relevant that 1,300 Kazakh traders – 46 per border areas. This undoubtedly cent of whom are women – cross promoted goodwill among the into China, daily, to purchase bordering communities and goods to be resold back in reinforced people-to-people Kazakhstan. connect in the region. Imports from China not exceeding Also, the initiative sought to 50 kilograms by weight and $1,000 provide market avenues to the by value are allowed into border communities residing in less Kazakhstan, duty-free. If the developed and sometimes remote traders wish to import more, up to border regions. On all counts, the 10 tonnes of agricultural goods A study by CUTS venture proved to be successful. and up to two tonnes of industrial established that products, both not exceeding these border About Border Haats, $10,000 in value are permitted to haats not only do so on a flat-rate duty of 17 per had a positive some examples cent. The market and its ancillary impact on the Border trade is often defined as services offer employment to 30 lives and trade destined for markets within per cent of the active population in the Kazakh border town of Jarkent livelihood of the five kms of the border and usually involves nonstandard channels, (Kaminski and Mitra 2012). border that is, not through the Land communities but Customs Stations (LCS), often in The area has become a free trade were also small quantities rather than in bulk. zone – The Khorgos International instrumental in Centre for Boundary Cooperation – reducing informal Border markets exist throughout and has been operationalised since trade the developing and developed December 2011. However, this world. The markets range widely in expansion met with mixed reviews scale and ambition and are based (Shepard 2016; Trilling 2014). on unique local realities and supporting policies. Some of the big Amidst isolated farming national, regional and international communities at the Indonesia- bazaars in Central Asia, which have a Malaysia border, the small centuries-old tradition of bazaars, Malaysian town of Serikin has are now complemented by a developed into a weekend hub of sophisticated logistics infrastructure semiformal trade, where more than and are akin to shopping malls in 180 traders, mostly from Indonesia, industrialised countries. sell their wares (Awang et al. 2013), mostly garments and fabric, food Khorgos bazaar, a market at the and beverages, furniture and China-Kazakhstan border, was handicrafts, and electrical and India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 45

household goods, all priced each stall a nominal fee for relatively cheap, but higher cleaning up. compared to their home country. Some of the products purchased in The traders feel that Serikin offers Serikin are also sold by Malaysian secure business opportunities and women in their local markets. Thus, easy cross-border procedures. while the Indonesians trade in Locals have benefited by supplying goods, the Malaysians trade largely the traders, services such as rentals in services.3 of stalls, parking places at homes, and storage space. Ancillary In contrast, cross-border trade in services have sprung up, including the Great Lakes Region in Africa is room stays, hostels and restaurants largely informal, hazardous, and as traders are allowed to stay over micro in scale (Brenton et al. 2011). weekends. Monthly profits from At some border crossing points (for these services are high. example, Goma, in the Democratic Republic of Congo–Gisenyi, An individual renting business Rwanda), formal trade takes place space could earn as much as along the “grand” barrier at a US$500 a month, while a restaurant formal border crossing point. owner could make as much as US$210 per month. Other than Informal cross-border trade flows selling products, the Indonesian through the “petty” barrier traders also buy various items for alongside the grand barrier. domestic consumption. Toilets and Informal traders, mostly women, bathing areas behind the shops are carry basic foods and commodities offered on a pay-per-use basis and through the petty barrier. Informal the local municipality charges from crossings reportedly involve a great deal of harassment and extortion. 46 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

In South Asia, there are border between Myanmar and northeast markets in areas where the border India (De and Majumdar 2014). is either hard (Bangladesh-India and India-Pakistan) or, or is de Recognising traditional trade links facto - open (Bhutan-India and and responding to the demands of India-Myanmar). Border trade in communities and political leaders South Asia reconnects in Mizoram state, the governments communities that share a common have allowed visa-free movement culture and who historically traded of people within 16 kilometers of with each other before the border the border and for 72 hours. There demarcations and enforcements are demands to return to the freer severed traditional ties. regime of 60 kilometers and 60 days (Kashyap 2017). For example, traditional tribes in northeast India’s Mizoram state live However, the free passage of in India and Myanmar. They people is not always feasible along continue to trade informally along the border and crossing points in the 400-kilometer open border or South Asia because of problems at the one formal border crossing ranging from insurgency to point in Zokhawthar, near smuggling and illegal migration. Champhai (RIS 2011). Bilateral Trade Scenario Border trade between India and Myanmar is allowed on 40 types of of India-Bangladesh products at 5 per cent duty, as Bangladesh is India’s most initially determined by the Border important trading partner in South Trade Agreement of 1994. A great Asia. Trade and commercial ties deal of informal trade and between the two countries have smuggling continue to take place witnessed tremendous growth over along the entire open border the last few years with bilateral India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 47

trade growing more than three through informal channels are times to US$9.5bn in 2017-18, sugar and salt.5 from US$3.11bn in 2008-09. Bangladesh imports from India, Additionally, various agricultural products valued at US$8.62bn inputs like pesticides, fertiliser, whereas its exports to India animal feed, fish feed, animal and products valued at US$873.27mn. fish vaccines are also traded through informal channels. Major imported products from Demand for Bangladeshi seeds for India include Raw Cotton, Yarn and Bitter gourd, Cauliflower, Fabric, Cereals, Vehicles, Cucumber, Turai (Jhinga) and Machinery, Boilers and Equipment, herbicide is significant. According Residues and Waste, Edible to the farmers, seeds and The border haat Vegetable, Electrical Machinery, herbicides in India are costlier initiative Iron and Steel, Plastics and Plastic whereas the productivity or quality recognised and re- Goods, Organic Chemicals among is not at par with the seeds or established the others. herbicides of Bangladeshi origin6. long-standing people-to-people Major products exported by As a result, Indian farmers buy ties Bangladesh to India include these items informally from their Readymade Garments, Jute and Bangladeshi counterparts. Jute Goods, Animal or Vegetable Fats and Oils, Rags and Other India-Bangladesh Clothing, Lead and Lead Goods, Fish and Crustaceans, Beverages, Border Haat Spirits and Vinegar, Copper and As of date, Bangladesh-India has Copper Goods, Plastics & Plastic four border haats that operate 4 Goods among others. once a week. Total Bangladesh- India trade reached US$6.8bn Informal Trade (M44,294 crore or Rs 442.9 billion) Scenario of India- in 2015-16. The total trade at each haat is estimated by the state Bangladesh governments to be around Apart from trade through formal US$600,000 (M4 crore or M40 channels, significant trade in million) a year. agricultural items takes place through various informal channels. Even if the purchase limit at the The majority among them include haats was doubled to US$200, the seed varieties of rice, jute, pulses, number of days of operation other vegetables and spices like raised to two days a week and tomato and onion, fresh many more haats, say 50, were vegetables, betel nuts, seasonal established along the border, these fruits such as mango, banana, markets could generate a total apple and guava. Informal trade trade of US$120mn (M800 crore or also includes spices like fresh M8 billion) a year, which would still onion, turmeric and ginger. Some only be slightly more than 1 per of the other food items traded cent of the total formal trade between Bangladesh and India.7 48 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

Border haats have also created areas but also for these residents earning opportunities for the to avail of necessary goods at vendees who buy the products reasonable prices. Additionally, from the haats and sell them in the border haats have also been local markets and thereby manage instrumental in reducing informal to earn some profit. These border and illegal trade. haats are not only instrumental in boosting trade but also in One must also consider that the generating livelihood border haats have created a opportunities for the residents of platform where women can the area. participate in the trade that takes place on the haat days. However, Border haats have, therefore, there is scope for increasing directly impacted income women’s participation through the generation opportunities for all border haats.8 the participating stakeholders, such as vendors, transporters, Additionally, the haats have labours, service providers and become centres for people-to- even vendees. people connect where friends and family members can meet, connect Border haats have not only created and socialise without having to go livelihood opportunities for the through cumbersome passport or people residing in remote border immigration formalities. India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 49

Facilitating Cross- both India and Bangladesh could Border Exchange in mutually prepare a list of Agriculture agricultural inputs having appropriate certifications/licences Given the various commonalities in related to biosafety. terms of food habits and agricultural practices, the border Access to Agricultural haats could play an important role Implements as centres of exchange not only for The border haats are generally agricultural products but also in located at border points that have respect of agricultural limited connectivity with their technologies and practices. nearest urban centres/markets. As a result, for people residing in Exchange of Food Commodity remote border locations, they Border haat can provide a platform either do not get access to the where farmers from both India and improved agricultural implements Bangladesh, residing in the vicinity or they have to pay amounts of the haats can exchange their higher than the market price surplus production of agricultural (which also involves the carrying Border haat can and horticulture products. Some of cost) for purchasing the implements. provide a the important commodities could be rice, wheat, pulses, spices and platform where vegetables. If allowed, the border communities farmers from both could get access to various India and Exchange of Agro Inputs agricultural implements from their neighboring countries through Bangladesh, Border haats can provide a border haats. residing in the platform for the exchange of vicinity of the various agricultural inputs like – Additionally, when it comes to after- haats can seeds, pesticides, fertilisers and sales service, it becomes easier to herbicides. Exchange of these inputs exchange their get the required service from across through formal channels requires surplus the border, rather than getting it fulfillment of some sanitary and production of from distant urban centres. phyto-sanitary obligations. To agricultural and bypass these often cumbersome horticulture and time-consuming processes Benefits from Trade in products involved in the formal channels, Agriculture these agriculture inputs are traded through informal channels and Understanding Demand often in significant volumes. Complementarities of Agri- inputs Allowing trade in these products A detailed market study needs to via the border haats could lead to be undertaken to take stock of the a significant decline in the volumes demand and supply gap in specific traded through informal channels. agricultural inputs in the border However, this would require villages. This will help in putting in place appropriate identifying, which agri inputs have measures to ensure biosafety. In high demand (and short supply) in this regard, the governments in the border villages and explore 50 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

how the two countries can profit margin on the products sold complement each other in through the border haats. addressing the demand-supply gap. Policy and Regulations Promote Rural Entrepreneurship There is a need to put in place It is imperative to create rural appropriate regulations to ensure entrepreneurs who would be biosafety coupled with approval for involved in the trade of agricultural the sale of select agricultural inputs, inputs and implements. Agriculture including seeds, through the is a diverse subject where every border haats. Besides, appropriate seed has a unique production precautionary steps like technology. This underlines the certification and licensing need to need for imparting proper training be worked out to allow trade in among the rural entrepreneurs on only genuine agri inputs through agro-inputs. the border haats.

This, in turn, can ensure quality Creating Awareness service and support to the rural The need for creating awareness of communities, especially farmers. new agri inputs would have to be Every seed has a production created among the farmers residing technology so, proper training is on either side of the border. Before important for purpose of ensuring an Indian/Bangladeshi farmer buys production. The border haats and uses an agri input of are not only Bangladeshi/Indian origin Promoting Private Sector instrumental in respectively, the farmer should be Engagement boosting trade well aware of the ways to use them Private sectors (especially in the to avoid any crop loss. but also in production and marketing of generating seeds, fertilisers, pesticides and The border haats could play an livelihood herbicides) in both countries are important role in this regard. On working towards promoting good opportunities haat days, small awareness quality agricultural inputs in the generation meetings could be rural areas. The private sector in organised at the haat premises, both countries can help in which will help in such cross-border sustaining trade in agri inputs sharing of knowledge on through border haats by giving agricultural products and related product distributorship to rural practices. entrepreneurs and supplying the products that have significant Additionally, such knowledge demand on the other side of the exchange should not be limited border. only to the farmers but also disseminated among the respective This will help the rural agricultural extension officers so entrepreneurs in getting the that they could promptly respond required product from the to any unintended crop diseases company at the dealer’s price and and/or pest attack. help the entrepreneurs earn a India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 51

Monitoring and Record-keeping Bangladesh, irrespective of the level of Agriculture is technology. Technological security at the borders. At times, such trade exchange is a sensitive issue for both could lead to adverse results. The wheat 9 countries. Monitoring and record-keeping blast is one of the best examples in this especially for seed exchange can ensure the regard. Trading of agri inputs through traceability of products, which is especially informal channels leads to a loss in the significant from biosafety. traceability of an input.

A careful selection of plant species and other Conclusion agricultural inputs for trade through the Border haats might evolve into business border haats could play an instrumental role hubs and serve as centres for agro-input and in not only ensuring traceability of the technology exchange where government and product but also act as an incentive to private organisations can play vital roles to various stakeholders to switch to formal facilitate cross-border exchange of not only channels that are less risky. agricultural produce but also agricultural implements, agricultural inputs and Additionally, this could also help in creating knowledge on agricultural practices. and also strengthening value chains among border villages in India and Bangladesh, It can have a positive cascading effect by not where, seed and associated inputs could be only exposing farmers to newer and better supplied by one country, the crop being inputs and practices but also in promoting produced in another country and sent back rural entrepreneurship, leading to further again to the host country for post-harvest creation of better income and livelihood processing and marketing. opportunities, not to mention the impact this can have in reducing informal trade in The creation of such cross-border agricultural inputs. dependencies is imperative for creating prosperous borders, which can go a long Informal trade in agricultural inputs viz. way in creating co-prosperity zones and seeds, fertilisers, pesticide and herbicides are facilitate better border management. rampant along border villages in India and

Endnotes 1 A haat is a local market that enables small-volume trading among communities. 2 Kathuria, Sanjay. 2018. A Glass Half Full : The Promise of Regional Trade in South Asia. South Asia Development Forum;. Washington, DC: World Bank. © World Bank. https://openknowledge.worldbank.org/handle/10986/ 30246 License: CC BY 3.0 IGO 3 Border haat study 2018 4 www.hcidhaka.gov.in 5 www.cpd.org.bd 6 https://cuts-citee.org/pdf/Research_Report_on_Linkages_and_Impacts_of_Cross- border_Informal_Trade_in_Agricultural_Inputs_in_Eastern_South_Asia.pdf 7 Supra Note 2 8 Ibid 9 Wheat blast occurred in Bangladesh for the first time in Asia in 2016. It is caused by a fungal pathogen, Magnaportheoryzae Triticum (MoT) pathotype. Despite the many efforts to control the disease, it spread to neighbouring regions including India, the world’s second largest wheat producer. 52 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 53

Can Border Haats Become Centres for Cultural Exchange, Tourism and 5 People-to-People Connectivity?

A K Enamul Haque Professor of Economics, East-West University, Dhaka, Bangladesh

Bangladesh and India in 2011 took a historic step by signing an MoU to set up border haats on their northern and eastern borders to facilitate commodity trade between local communities living on either side of the border.

Under the new reality, Indian and Bangladeshi traders use such haats once a week to trade their goods with customers on both sides. The opportunity for trade is not only the beginning of a new era of communication between local people on both sides; it is also an opportunity for understanding each other’s culture and languages.

This Paper presents cases on how the border haats have been able to glue together communities and people who were apart for many years. The border haats brought them back to the origin – here again, they meet each other, greet each other, and have fun with each other. It is an elegant place for the exchange of cultures, a place to develop friendships, and a place to become a tourist! - a place at the ‘No Man’s land between Bangladesh and India.

Introduction well accord with a division by contiguous majority areas of The Partition of Bengal in 1947 Muslim and non-Muslim brought changes in the lives of majorities.(Jamwal, 2004) people living along the borders between Bangladesh and India’s This depicts the difficulty in current States of West Bengal, defining borders between Assam, Meghalaya, Mizoram and Bangladesh and India. The final Tripura. These five states surround drawing of the 4056-kilometer-long Bangladesh. While creating the border between India and boundary for the-then-East Bangladesh was submitted to the Pakistan, Sir Cyrile Radcliffe wrote: Governor-General of British India The province (Bengal) offers few, on August 12, 1947, but the if any, satisfactory natural dispute did not end there. To boundaries, and its development narrate the partition, Pankaj Misra has been on lines that do not 54 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

wrote in his book Exit Wounds: The countries. The initial separation Legacy of Partition: was, however, not a hard one Cyril Radcliffe, a London because the borders were soft. barrister, was flown to Delhi and Families on both sides could visit given forty days to define each other and the community life precisely the strange political went on uninterrupted. One could geography of an India flanked by go to the other side and plough his an eastern and a western wing cropland. Citizenships were called Pakistan. He did not visit different but their lives were the the villages, communities, rivers, same. or forests divided by the lines he drew on paper. Ill-informed The Turning Points about the relation between agricultural hinterlands and It was 1965 when the first India- industrial centres, he made a Pakistan war began over the mistake of enormous economic dispute in Jammu and Kashmir. The consequence when, dividing war ended through a cease-fire Bengal on religious lines, he agreement between India and deprived the Muslim majority in Pakistan but the political dynamics the eastern region of its major between the two neighbouring city, Calcutta, condemning East countries changed. There were Pakistan—and, later, infiltrations and accusations of Bangladesh—to decades of rural covert operations and so the two backwardness. (Mishra, 2007). countries began to tighten the grips on their borders (Indo- The Radcliffe line went through Pakistani War of 1965, 2020). bedrooms, kitchens, houses, villages, and croplands of millions As such, the free movement of of people living together at the people between families and border. As such, brothers were citizens of Bangladesh and India divided with citizenships in two were affected. The two countries India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 55

were no longer ready to allow is longer than that with Pakistan, people on both sides to travel China, Nepal, and Bhutan. So, without proper travel documents. finally, in 1986, India decided to Visa regimes began and people on erect barbed wire fences on the both sides began to realise that border between Bangladesh and they are living in two countries and India (Datta, 2018). This was the have got separated permanently. beginning of the third turning point on the border relationship Restrictions on trade began. While between Bangladesh and India. It the big picture was no different was the final nail on the coffin. from other regions and countries Border people became helpless of the world, the ground realities and were permanently blocked between India and Bangladesh from each other’s touch. The opportunity were different. People who were for trade is not families could not visit each other, By 2014, India completed nearly only the the markets they used to visit to 2424 km long barbed-wire fences beginning of a buy products were now on the border between Bangladesh new era of inaccessible, and the doctors they and India. With the completion of communication used to share were no longer border fences there emerged a new between local approachable. On the other hand, problem as revealed by Datta many poor people could not afford (2018). He wrote: people in India to visit capitals to get passports .. border fencing displaced many and Bangladesh and visas for visiting families. families from their place at the but is also an same time many families are still opportunity for The second turning point on the living a restricted life outside the understanding borders between Bangladesh and border fencing under the strict each other’s India was in 1971 when millions of surveillance of Indian Border culture and crossed the border Security Force. (Datta, 2018) into India to survive the atrocities languages of the Pakistani Army and began to The Border Haats fight for their freedom. The war lasted from March-December of Over time, however, things began 1971 and ended with the creation to shift on the ground. Both India of Bangladesh – an independent and Bangladesh’s economy began country. The friendship on both to experience significantly higher sides of the border, however, did economic growth. The growth was, not last long. however, centered on the major metropolis in both countries. The By 1974, Bangladesh experienced border people – living in remote the second famine of the century. areas – remained out of Economic hardships led to the rise connectivity with the mainstream of smuggling and there were economy. accusations from the Indian side that illegal migration of people However, with improvement in into India is on the rise. mobile telecom technology, internet facilities, it became difficult Incidentally, India shares the to keep these remote people at longest border with Bangladesh. It bay. It became evident that the 56 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

people living on the edges need support a week to trade their goods with and both governments possibly found it customers from both sides. The easier to support them collectively. opportunity for trade is not only the beginning of a new era of communication Therefore, in 2011 the governments of between local people on both sides, but Bangladesh and India took a historic step also led to a new understanding of each by introducing local cross-border trade other’s culture and languages. centres through an MoU under which both countries have agreed to open As one trader from Meghalaya (Indian) border haats on their northern and put it – “I never knew how to count eastern borders to facilitate commodity Bangla money, did not know about it but trade between local communities living now I know it and also know how a on both sides of the border. Bangladeshi buyer bargains, what they want and I have picked up a part of the Under the new reality, Indian and local language too”. Bangladeshi traders use such haats once

Border Haats: A spot for a reunion of families Roksana is a Bangladeshi girl. She has been living in a village near the border, far away from the mainstream markets and the economy. Their closest neighbours are the Indian villagers living across the border. They grew up together, played together. Finally, at the age of 13, she married a boy from other side of the border. There was no fence at that time. Then the fence was built. She could not visit her mother anymore. She could not afford to have a passport and a visa to see her mother. With a broken heart, she used to gaze across the fences to see a glimpse of her family members living in Bangladesh – mother, father, and sisters. Finally, the border haat allowed her to see and meet them after 15 years of separation. Border haat – to her – is a place of family re-union, a perfect opportunity to remain connected to her parents, to exchange food, to exchange gifts, and to enjoy the touch of her mother.

‘No Man’s Land’ at Indo-Bangla Border Basu Miah is a Bangladeshi citizen. He was a freedom fighter. He fled to India during the liberation war of Bangladesh in 1971. His father was under surveillance of the Pakistani Army and so he joined the Peace Committee to protect his family. During the war, he spent months in India and met Swapan. They became good friends and shared many a thought. They had their secrets too. After the independence, they used to meet at the border, used to shout at each other (there is a 150-yard no man’s land between Bangladesh and India -’No Man‘s Land’ at Indo-Bangla Border, 2010) to share their ideas and exchange greetings. Despite living across the border for so long they are still good friends. Now they get to meet at the border haat. However, they also meet others who come and visit the markets from nearby villages. They have made new friends – they spend time together and gossip with each other. To them, some people simply visit the haat as tourists – simple curious people who want to see the other side of the border – which is still restricted to them because they cannot afford to travel to cities to get passports and visas. Meeting people from another country is fun, entertaining and also a source of pleasure like travelling abroad! India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 57

By now, the two countries have sides can access the same market completed the teething phase and and the economies of scale agreed to extend their cooperation enabled traders to bring these further and create more such products. markets. They are new realities on the borders between Bangladesh There are products which were not and India. It is a place where produced on one side of the people not only exchange goods, border due to inaccessible terrains but it is also a window for them to (like sea fish on many Indian exchange greetings, to see their borders in the east), These are now relatives and friends who once traded in the border haats – shared the same village, the same allowing people’s access to markets market, the same schools, same where non-local products are courtyards, and the same crop available. fields. There were also cases of over- Moreover, the markets are now a supply on one side and so prices showcase of products for each were very low, the border haats other. On either side of the border, enabled them to sell their products remoteness prevented them to in a larger market and so prices access many goods that were went up leading to higher incomes. difficult to find in local markets These are the stories of Border because the local market is too haats. The following cases are small to cater to their needs. The presented to illustrate some of border haats expanded the market- these facts about border haats. size where consumers on both

Respecting other cultures will teach you cultural values Szario, a Christian woman, has been living in Meghalaya in a remote border village near Bangladesh. Both sides of the border are remote and distant, in terms of connectivity with the mainstream economy. She has an orchard where she grows the best oranges on earth. During the season, it is difficult for her to transport the products to the nearby city in India; with the creation of a border haat near her village, she brings her produce to the market. She gets a much higher price for her products. As a result, her income has increased four-fold. However, she has also learned to appreciate a completely new culture of the plains on the other side of the border. They are Muslims, they greet you differently, they have a different currency even the languages are different. She learned how to count Taka, how to greet a Muslim, and even tasted their food. For her, it is like travelling into a new world – a world that was alien to her as she never met anyone from Bangladesh before the opening of this market. It has not only created for her a new place of business, but has also offered her a new place where she can greet a different culture, and mingle and appreciate and share each other’s ways. 58 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

Conclusion fun with each other. It is an elegant place for the exchange of cultures, Border Haats have indeed opened a place to develop friendships, and up a new horizon to the people a place to become a tourist! - A living at the borders. They were the place at the ‘No Man’s land neglected – the distanced citizens between Bangladesh and India. who were living under the watchful In 2011, the eyes of the border guards on both governments of sides. They had limited access to Recommendations Bangladesh and markets, entertainment, products, The initial experiences of border India took a and cultures. They had haats between Bangladesh and apprehensions and prejudices historic step by India have provided some insights against each other as the new introducing local into the future course of actions to generations never met them. cross-border trade promote cultural exchange centres through between people of border regions. They used to gaze at each other Here are some of the an MoU under from a distance and yet found recommendations: which both them engaged in similar economic countries have activities like producing rice in the Recommendation 1: Bangladesh paddy fields, catching fishes in the agreed to open and India can consider issuing same river though, on different border haats on temporary border passes to allow sides, they also used to share a their northern and frequent exchange of people for common heritage. All of these were eastern borders to limited time within the bordering lost due to the partition and districts. It will help regain trust facilitate subsequent measures taken by among them and develop a better commodity trade both countries. trust on each other. between local Such a pass may be availed by the The border haats gifted them with communities border residents to visit family a past which they feared was lost living on both members across borders for a permanently – here they meet each sides of the border limited period. other, greet each other, and have India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 59

Recommendation 2: Promote free both economies to uplift the tourism pass for a limited period to economic activities at a minimum promote a greater cultural cost. It will also allow regions to exchange between Bangladesh and share resources to benefit each India. This means, Bangladeshis other. from other regions may be allowed to travel to tourist sites for a Furthermore, since the two limited period (say maximum a countries have a shared history, week) with a valid passport/travel stalls could be earmarked at the documents like driving license or border haats for dissemination of national ID. The two countries may information about places of also consider sanction of on-arrival strategic and historical importance. passes for tourists travelling to This will have a positive impact on bordering districts. This will the promotion of tourism. It will promote investments and also also facilitate, strengthen and employment in border regions in reinforce cultural exchange both countries for tourism. between the two countries.

Recommendation 3: Develop These measures, if introduced, will border areas as special economic help make the border free from zones (SEZs) for joint investments. conflict and build trust between Border areas are often the Bangladesh and India at the border remotest regions of a country from which has been marred by its centre and hence are less occasional border clashes, at times attractive to investors. Creating resulting in deaths. SEZs in the border areas will help

[Note: The names used in the document have been changed to keep their identity anonymous]

References Datta, A. (2018). Barbed Wire Border Fencing: Exclusion and Displacement at the Indo-Bangladesh Borderland. India Quarterly: A Journal of International Affairs, 74(1), 42–60. https://doi.org/10.1177/0974928417749640 Indo-Pakistani War of 1965. (2020). In Wikipedia. https://en.wikipedia.org/w/index.php?title=Indo- Pakistani_War_of_1965&oldid=959175363 Jamwal, N. S. (2004). Border Management: Dilemma of Guarding the India-Bangladesh Border | Manohar Parrikar Institute for Defence Studies and Analyses. Strategic Analysis, 28(1). https://idsa.in/strategicanalysis/ BorderManagementDilemmaofGuardingtheIndiaBangladeshBorder_nsjamwal_0104 Mishra, P. (2007, August 13). Exit Wounds. The New Yorker. https://www.newyorker.com/magazine/2007/08/13/exit- wounds ‘No man`s land’ at Indo-Bangla border. (2010, January 31). Zee News. https://zeenews.india.com/news/nation/no- mans-land-at-indo-bangla-border_600389.html 60 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 61

Border Haats on Bangladesh-Myanmar Border 6 Opportunities and Challenges

Nazneen Ahmed Senior Research Fellow, Bangladesh Institute of Development Studies, Dhaka, Bangladesh

The establishment of border haats along the India-Bangladesh border could lead to a reduction in informal trade in those areas, by generating livelihood opportunities for the border residents and facilitating the trade of products through the haats, which were earlier traded informally. Therefore, it could be expected that the establishment of border haats along the Bangladesh-Myanmar border could also result in a reduction of informal trade in those regions, thereby reducing security concerns in those areas.

In this regard, this Paper discusses the nature of formal trade between Bangladesh and Myanmar; possible positive outcomes of establishing a border haat along their borders; expected challenges that this initiative might face; and concludes with a few recommendations to address these challenges.

Introduction improve the relationship among the local people as the haats create Border haat is ‘a rough-and-ready business opportunities and market’ allowing ‘local people to interactions between people on trade in locally-grown agricultural two sides of the border. and manufactured’ items along the border. The core idea behind the Currently, Bangladesh and India border haat is to provide a formal have four border haats in different arrangement of trading between locations along the border the local communities of two between these two countries. With countries who have limited access the experience of the positive to big markets mainly due to long impacts of those haats on various distances. It is also argued that economic and social aspects, both through the formalisation of a Bangladesh and India have trade by setting up of border haats, sanctioned the establishment of six it would be possible to reduce more border haats and are also informal trading at the borders. It is considering the prospects of a few envisaged that border haats more. 62 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

Additionally, India and Myanmar Cross-border Trade have already progressed in setting between Bangladesh up several border haats in different and Myanmar parts of the border they share. Positive impacts of border haats Myanmar is not a significantly large between Bangladesh and India trading partner in Bangladesh. Total have led to the consideration of imports from Bangladesh to the establishment of haats in the Myanmar in the fiscal year (FY) border areas between Bangladesh 2018-2019 amounted to and Myanmar that stretches for US$90.91mn, while the export was 270 kms, and divided by the river US$25.11mn (Table 6.1). Naf into some areas. Similarly, only 0.37 per cent of the This Briefing Paper discusses the exports of Myanmar were directed opportunities and challenges of to Bangladesh in 2018-19 (Table establishing border haats along the 6.2). The share of Bangladesh in the Bangladesh-Myanmar border. total imports of Myanmar in the

Table 6.1: Bangladesh’s Trade with Myanmar (in US$mn)

Year Export Import 2011-2012 11.86 65.26 2012-2013 11.22 83.95 2013-2014 11.80 92.16 2014-2015 17.01 31.48 2015-2016 26.02 38.77 2016-2017 19.47 48.65 2017-2018 18.34 188.90 2018-2019 25.11 90.91 Source: India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 63

same fiscal year was 0.15 per cent. informal border trade between the Thus, Bangladesh is also not a large two countries. Similarly, border trade trading partner of Myanmar. through Sittwe started on December 28, 1998. Goods from Sittwe to Border trade between the two Teknaf border in Bangladesh side countries is conducted through the comes via waterway. Around 40 per Sittwe and Maungdaw cross- cent of exports from Myanmar to border camps. Myanmar- Bangladesh and around 29 per Bangladesh border trade through cent of import of Myanmar from Maungdaw started on September Bangladesh takes place through 05, 1995, to mainly legalise borders.

Table 6.2: Myanmar’s Trade with Bangladesh

Year Total Export to Share of Total Import Share of export of Bangladesh Bangladesh import of from Bangladesh Myanmar (in US$mn) in total Myanmar Bangladesh in total (in US$mn) export of (in US$mn) (in US$mn) import of Myanmar (%) Myanmar (%) 2012-2013 8977.02 31.09 0.35 9068.914 12.18 0.13 2013-2014 11203.96 59.09 0.53 13759.51 15.92 0.12 2014-2015 12523.72 30.08 0.24 16633.15 9.15 0.06 2015-2016 11136.88 18.13 0.16 16577.95 15.26 0.09 2016-2017 11998.54 24.00 0.20 17211.06 19.96 0.12 2017-2018 14850.66 170.05 1.15 18686.95 22.25 0.12 2018-2019 17060.42 63.20 0.37 18086.6 27.81 0.15 Source: Based on the information provided by the Ministry of Commerce of Myanmar

Table 6.3: Trade through the Border with Bangladesh by Myanmar (in US$mn and %)

Export of Myanmar through borders Import of Myanmar through borders with Bangladesh with Bangladesh Mawtaung Sittwe Total Share of Mawtaung Sittwe Total Share of Border Border Export of export Border Border import of import Year (in US$mn) (in US$mn) Myanmar to through the (in US$mn) (in US$mn) Myanmar through the Bangladesh border in from border in (in US$mn) total export to Bangladesh total import Bangladesh (%) (in US$mn) from Bangladesh (%) 2012-13 - 3.66 31.09 11.76 0.18 12.18 1.44 2013-14 0.09 10.35 59.09 17.67 1.90 5.71 15.92 47.75 2014-15 0.08 6.43 30.08 21.63 0.58 0.09 9.15 7.29 2015-16 0.40 5.35 18.13 31.71 2.11 0.98 15.26 20.26 2016-17 2.27 4.47 24.00 28.08 0.97 0.18 19.96 5.76 2017-18 5.02 13.76 170.05 11.05 2.40 1.05 22.25 15.51 2018-19 12.08 12.98 63.20 39.64 7.01 1.25 27.81 29.69

Source: Based on the information provided by the Ministry of Commerce of Myanmar 64 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

Major products traded between Estimates suggest that the volume the two countries include bamboo, of unofficial trade between the two ginger, peanuts, onion, saltwater countries could be worth prawns and fish, dried plums, garlic, US$300mn per year (Yesmin, 2013, rice, mung beans, blankets, candy, cited in Maung Tun, 20162). plum jams, footwear, frozen foods, The establishment chemicals, leather, jute products, Informal trade is generally of border haats tobacco, plastics, wood, knitwear predominant in all the border areas and beverages. Consumer goods across the world. One of the major along the India- that were mainly exported from reasons is limited livelihood Bangladesh Myanmar to Bangladesh during opportunities for the border border could lead 2019 via the Maungdaw border residents and poor connectivity of to a reduction in trade centre, comprise mostly these remote regions with their informal trade in marine products, ginger and onions. own country. Informal trade is those areas, by often the reflection of synergies generating Border Haat on among the border residents of neighbouring countries, which had livelihood Bangladesh-Myanmar developed out of necessity. opportunities and Border facilitating trade CUTS International’s3 (2019) study Despite the Myanmar of products shows that the establishment of government’s attempt to promote border haats along the India- through the haats trade through formal channels, Bangladesh border could lead to a informal cross-border trade reduction in informal trade in those activities continue to thrive largely areas, by generating livelihood on account of a complicated trade opportunities for the border licencing system that requires residents and by facilitating trade various documents, including sales of products through the haats, that contracts, letters of credit and bank were earlier traded informally. transactions in a single currency Therefore, it can be expected that prescribed by the government the establishment of border haats (Taneja et. al.).1 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 65

along the Bangladesh-Myanmar border Additionally, that (Bangladesh-Myanmar) could also result in a reduction of haat could also promote border tourism, informal trade in those regions, thereby which will further facilitate the reducing security concerns in those areas. development of these remote areas and create better people-to-people These border haats have been connectivity at the local level. instrumental in generating employment opportunities in form of vendors, product It is noted that the border trade point handling labourers, transporters, support Maungdaw sometimes remains closed service providers and reducing informal due to tension between Bangladesh and trade also been effective in raising the Myanmar over issues like the Rohingya standard of living of the border residents crisis. There is a possibility that (by enabling access of cheap essential establishing a border haat could allow commodities through the haat). smooth trading of goods even when there is a ban on trade at the regular These have also helped empowering border points. women; strengthening the people to people connectivity among people of Moreover, this initiative will not only both the country and overall strengthen the relationship among the development of those areas such as border residents, but also the bilateral improvements in the quality of roads relationship between the two countries, leading up to the haats. which strained as a result of the maritime dispute and Rohingya refugee crisis All these observed benefits are expected mainly. to be realised by the border residents of Bangladesh and Myanmar through the This strained relationship between the establishment of border haats along the two countries might inhibit the Bangladesh-Myanmar border. It is also governments to get into dialogues expected to create cross-border value regarding the establishment of border chains at the local level and in turn, boost haats. Other challenges in the local industries in both the countries. establishment of border haat could be 66 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

the presence of different In December 2011, a Joint insurgency groups at different Commission for bilateral locations along the Myanmar- cooperation between Bangladesh Bangladesh border; the and Myanmar was established and, geographical challenges a Memorandum of Understanding emanating from the nature of the was signed for establishing a Joint terrain at the shared borders Business Council (JBC) between the (mostly hilly, riverine and Union of Myanmar Federation of maritime); and opposition from Chambers of Commerce and Border haats have residents on the ground of their Industries (UMFCCI) and the opened new sentiment regarding the Federation of Bangladesh opportunities to Rohingyas. Chambers of Commerce and enhance trade Industries (FBCCI). The objective and people-to- Also, the border security forces behind setting up the Joint people connect occasionally seize huge amounts of Commission was to explore ways drugs on the Myanmar-Bangladesh to augment trade between the two between different border, so there could be countries. However, the idea of countries and apprehension about an increase in establishing border haats was not generate drug peddling with the taken into account. livelihood establishment of border haat. opportunities for Governments could utilise the the border Conclusion and Memorandum of Understanding residents on the establishment of a JBC Recommendations between UMFCCI and FBCCI, to Border haats have opened new discuss issues about various trade, opportunities to enhance trade investment opportunities as well as and people-to-people connect potential to establish a border between different countries and haat. generate livelihood opportunities for the border residents. Following that, governments Considering these positive impacts should select locations strategically as well as externalities, Bangladesh involving all relevant stakeholders and Myanmar could explore to accrue maximum benefits and opportunities for the then conduct a feasibility study in establishment of such border haats the locations proposed by them to after considering all the possible rule out issues and concerns about challenges. the establishment of haats.

Endnotes 1 Taneja, N. and Others, 2019. India-Myanmar Border Trade, Working Paper no. 378 Indian Council for Research on International Economic Relations (ICRIER), India. 2 Myint Maung Tun, 2016. Myanmar-Bangladesh Relations: Challenges and Opportunities, available at https://www.myanmarisis.org/publication_pdf/final-version-myanmar-bangladesh-relations-mmedits-ah2-1wpFhW.pdf (15 March 2020). 3 CUTS International (2019). “Bordering on Happiness: An Assessment of Socio-Economic Impacts of Bangladesh-India Border Haats”, report published by CUTS International in association with Unnayan Shamannay. India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 67

Border Haats on India-Myanmar Border 7 Opportunities and Challenges

Subir Bhaumik Editorial Director at Asian News

After the success of the ‘Border Haats’ on the India-Bangladesh border, the Government of India decided to establish similar haats along the country’s border regions with Myanmar. On January 20, 2020, the first border haat along the Indo-Myanmar border has been opened at Pangshu Pass in . The Mizoram government is also pushing for opening border haats along the Indo-Myanmar border.

In this regard, the Briefing Paper explores the prospects and challenges of establishing border haats along India-Myanmar border, keeping in perspective issues like ethnic insurgencies, high incidence of contraband trafficking including that of narcotics and weapons, infrastructure deficits at the border and difficult terrain leading to the high cost of transporting commodities from the procurement centres to the border haats.

As a way forward, this Paper explores whether it is possible to develop the ‘border haats’ as future border economic growth zones with industrial parks for medium industries exploiting locally available raw materials, because only then can more jobs be created and greater levels of prosperity achieved for border regions, thus possibly disincentivising contraband trafficking.

Introduction The threat of trans-border insurgency and terrorism, illegal For about six decades since contraband trade especially in independence, India has seen the narcotics and weapons, border as a problem, a liability hostilities by neighbours and illegal rather than as an opportunity. This migration impacting on owes much to India’s post-colonial demography in sensitive frontier history: the creation of a hostile regions seem to have left Pakistan and then a hostile China, successive governments with a both of whom backed insurgencies heavy security mindset in on Indian territory. Later, anti- managing the country’s borders, Indian insurgents also operated especially in the sensitive and from Bangladesh and Myanmar, remote Northeast. with or without the patronage of the state.1 68 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

The approach began to change as The Concept of Border India grew in confidence and her Haats economy began to grow dramatically post-liberalisation in As part of the new vision, decision- the late 1990s. The architect of makers in Delhi began to take into India’s neo-liberal economy, former account the ‘People’s Factor’ in Prime Minister (& Finance Minister) border management. It was argued Dr Manmohan Singh strongly that the daily needs of the border argued for a ‘new vision’ of communities, who often share strong ethnolinguistic ties across The Memorandum regional economic integration in South Asia, by which India’s the border, necessitated a new of Understanding neighbours would be as much a arrangement, which would for the opening of part of her growth story as remote discourage illegal cross-border ‘border haats’ on peripheries of the country. smuggling and legitimise border India-Myanmar trade. The first effort at border with a That vision necessitated open establishing border trade by India can be traced to the reopening of pilot project at borders and greater trade between India and South Asian nations and the Nathu La Pass in Sikkim in Pangshau Pass 2 the tiger economies of South-east 2006. (Arunachal Asia. India’s Look East policy (now Pradesh-Sagaing) rechristened ‘Act East’ by Besides Nathu La pass, now there was signed on incumbent Prime Minister are two more points, through May 28, 2012 ), originally with which border trade takes place with maritime in focus, increasingly China’s Tibet Autonomous Region - sought to situate the country’s Shipkila in and Northeast in its engagement with Lipulekh in . South-east Asia, especially after Myanmar joined the Association of After the reopening of India-China Southeast Asian Nations (ASEAN). cross-border trade on July 06, 2006, through Nathu La Pass, not

The Border Haat at the Pangshau Pass India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 69

only it has enhanced benefit in helped to strengthen ties between trade but also strengthened the the two countries, both culturally growth of tourism in Sikkim.3 Trade and economically. Further, these through Nathu La proved to be a border haats benefitted local means of livelihood for the people communities by providing of this region. opportunities for livelihood and social interaction.”4 Border Haat on India- Bangladesh Border Border Haat on India- Myanmar Border The ‘border haat’ as a trading market place for benefit of local After the success of the ‘border communities on either side of the haats’ on the India-Bangladesh border was conceived for border, the Indian government implementation along the India- decided to test this model in the Bangladesh border, as bilateral country’s border regions with Currently, four relations between the two another neighbouring country border haats are neighbours improved dramatically Myanmar. At the fourth India- operational along after Prime Minister ’s Myanmar Joint Trade Committee Awami League formed government Meeting in New Delhi on the India- in Dhaka in January 2009. September 27, 2011, the national Bangladesh governments of both India and border. Six more Currently, four border haats are Myanmar agreed to “work towards border haats on operational along the India- the opening of border haats (village the India- Bangladesh border. Two border local markets) at mutually agreed Bangladesh haats are located in Meghalaya at on locations, as it would benefit the border are in the Kalaichar and Balat and two are local population on either side of pipeline located in Tripura at Srinagar and the border.”5 Kamalasagar. Six more border haats on the India-Bangladesh border The Memorandum of are in the pipeline. Understanding (MoU) for the opening of ‘border haats’ on India- The border haats are organised on Myanmar border with a pilot a specific day of the week for a project at Pangshau Pass fixed time duration. Only registered (Arunachal Pradesh-Sagaing) was buyers and sellers are allowed to signed on May 28, 2012. In 2013, participate in the haats. There are the Indian government responding also restrictions on the type of to a letter by Nabam Tuki, Chief commodities to be sold in these Minister, Arunachal Pradesh haats. Also, there are restrictions on informed the state government of the amount of purchase to be the agreement with Myanmar for made by each buyer. Trade at the setting up the first border haat in border haats is permitted to be Pangshau Pass as a pilot project.6 carried out in Indian Rupees/ Bangladesh Taka. The border haat was formally inaugurated on January 02, 2020.7 Border haats or rural markets along Around M3.53 crore (M35.3 the border of Bangladesh and India million) was invested to build a 70 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

border haat at the international The officials of the governments of border’s Pillar No 173 on the Mizoram and Myanmar have Pangshau Pass. It was proposed recently conducted a joint survey that the border haat will contain 42 and identified the locations to set shops, a warehouse, a dumping up the border haats. Mizoram Chief yard, a security barrack, toilet and Minister , during his The ‘haat culture’ parking space. Landslides, heavy 2019 Independence Day speech, rains, insurgent activities and had said the proposed border in rural South difficulties in carrying building haats would become important Asia has an materials to the remote area have trade points between India and entertainment delayed the implementation of the Myanmar. and cultural pilot project by six years. component The state governments of Nagaland besides trade. Subsequently, the State and have also shown That could be Government of Mizoram has interest in opening border haats started pushing the Indian along their border with Myanmar played into the government to set up at least four to boost local-level trade. Like border haat border haats on its border with Mizoram, these two states have system both on Myanmar. To date, four locations also realised that border the India- namely, Hnahlan, Zote, Vaphai communities, often sharing Bangladesh and (Saikhumphai), and Sangau ethnolinguistic ties, have much to the India- (Pangkhua) in southeast Mizoram, gain from the border haats. There is Myanmar borders have been identified for the saying in Manipur that the state will construction of border haats. The prosper only if the Eastern Gates Commerce and Industries open, meaning when they can Department, Government of trade freely with Myanmar. Mizoram have sent the detailed proposals in this regard to the Challenges for Border Ministry of External Affairs (MEA), Government of India, and currently Haats on India- waiting for its approval. Myanmar Border The 1,643-km India-Myanmar border has been long afflicted by (a) festering ethnic insurgencies, which has prompted trans-border security operations; (b) the high incidence of contraband trafficking including that of narcotics and weapons; (c) the low level of infrastructure development at the border; and (d) difficult terrain and high transport cost from procurement centres to the border haat sites.

Map 1: Location of the Pangshau Pass and roads linking it with nearby places India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 71

Geo-Political Challenges India is, therefore, reluctant to Since the Pangshau pass is located open the Stillwell Road that goes on the historic World War 2 through the Pangshau pass and go vintage Stillwell Road, which many forward with the Bangladesh- in India and China have pushed for China-India-Myanmar Economic development as a potential Corridor (BCIM-EC), despite overland trade route between the agreeing to do so at the formal two countries (Map 1). It is governmental level. India is thus important to examine why India putting in place a border trading has not accepted the opening of point to partly satisfy local the Stillwell Road, which has the aspirations, instead of using a potential to change the face of viable trans-regional trade route North East India and the Northern through the Pangshau pass. part of Myanmar.8 Both Bangladesh and Myanmar are However, strident objections by the friendly nations who have cracked Indian army, who fear a massive down on anti-Indian insurgents on Chinese outflanking maneuver in their borders in recent years. But the event of a war by using this while Bangladesh has almost road, have dissuaded Indian wholly demolished their bases, decision-makers from opening up Myanmar has not been able to do the Stillwell Road as a trade route so. Naga and Manipuri insurgent to Upper Myanmar and south-west groups remain active, seeking to China. India also fears China could ‘tax’ any trade or business activity use this route for dumping goods on the frontier region. into Northeast India with an eye on the Indian market.9

Poor Road Condition along Indo-Myanmar Border 72 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

Though Mizoram is peaceful since Infrastructural Challenges the 1986 Mizo peace accord, the Poor physical infrastructure at the state’s border region has witnessed India-Myanmar frontier is a huge a huge spurt in the spread and worry for those who wish to see intensity of the Rakhine insurgency more ‘border haats’ coming up. At spearheaded by the 7,000-8,000 the Pangshau pass, even the strong . Stillwell Road continues to be a cesspool of slush and mud during The Indian army conducted monsoon. ‘Operation Sunrise’ in coordination with the Myanmar Army to Sturdy China-made motorbikes are dislodge the Arakan Army from its often the only way to carry goods sanctuaries in South Mizoram. But to the market place Bigger vehicles the Arakanese rebels have struck at tend to get stuck more often than targets on India’s Kaladan multi- not. Storage, sanitation, power, modal transport corridor that internet and other trading facilities seeks to connect Mizoram through Sturdy China- need a huge boost before the the Sittwe port and up the Kaladan border haat can transact a made motorbikes river. Construction workers, reasonable volume of trade. are often the only contractors and suppliers, even of Indian origin, have been way to carry kidnapped and then released for Possibility of Chinese goods to the ransom.10 Goods Getting Sold at market place. Border Haats Whether these rebels, who seem to Bigger vehicles The other big challenge for trade at be gaining in strength and are the India-Myanmar border is the tend to get stuck rather upset with India’s growing possibility of Chinese goods more often than military relationship with Myanmar, getting repackaged and sold at the not will or will not disrupt any ‘border haats’. The Chinese-made legitimate border trade on fake goods have been found selling Mizoram’s border is something in huge volumes in the Ngalamung decision-makers in Delhi and market opposite Manipur’s border Aizawl cannot ignore. town of Moreh on the road to the Myanmar border town of Tamu – With the border haat at Pangshau cheap Chinese stuff packaged as been formally opened and other popular western brands like states like Mizoram are raising Marlboro or Napolean brandy. demands for border haats on their Since they are now traded inside frontiers with Myanmar, Indian Myanmar but heavily bought by decision-makers are expected to Indians who are allowed into consider the status of trans-border Ngalamung by border guards, the insurgency, the trends of onus lies with our neighbouring contraband trade and the poor country in case allegations of WTO physical infrastructure in the violations are raised.11 border regions before expanding the number of border haats. India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 73

If they are formally traded in a That is likely to have a market in border haat jointly managed by Myanmar and also in Northeast India and Myanmar, the onus will India. fall on India as well. India is also very sensitive to rules of origin, as It will be worthwhile to explore if was evident during the recent physical infrastructure like power Regional Comprehensive Economic and roads can be improved Partnership (RCEP) negotiations at substantially in the border regions Bangkok. Chinese goods packaged in the years to come. With such in Myanmar brands may use the developments, perhaps border border haat route to enter the haats can be turned into an Indian market and then use the extended growth zone with a few contraband route to flood the MSME units processing locally market. Since border haats were available agricultural and forest conceived as a way to check produce or producing locally smuggling and illicit border trade, woven ethnic textiles and herbal the original purpose behind the products. They may be initially scheme may stand defeated. produced for trading through border haats but later sold in larger Conclusion and markets. Recommendations Since local communities from the Along the borders with both same ethnic stock often straddle Bangladesh and Myanmar, India the India-Myanmar border (like the needs to explore alternatives that Nagas or the Mizo-Chin-Kukis), it is could help develop ‘border haats’ worthwhile exploring how the as future border economic growth border haat can be expanded to zones with industrial parks for foster cultural exchanges. The medium industries exploiting ‘haat culture’ in rural South Asia locally available raw materials. Only has an entertainment and cultural that would lead to greater job component besides trade. That creation and greater levels of could be played into the border prosperity in the border regions, haat system both on the India- and in the process perhaps dis- Bangladesh and the India- incentivise contraband trafficking. Myanmar borders.

There is a proposal in Myanmar to To conclude, it may be pointed out develop such an economic growth that the success of the border haat zone in Tamu overlooking the arrangement on the India- border town of Moreh, which is a Bangladesh border should point of rampant smuggling at the encourage India and Myanmar to moment. Those behind the Tamu try this out along their extensive growth zone idea are looking for frontier. It is also desirable to see Indian investors like Haldiram to the arrangement not as a self- create production units limiting exercise but as a beginning manufacturing packaged snacks. which, in consultations with local 74 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

communities, can in future be expanded to cover newer areas like industrial production and cultural exchange to promote greater people- to-people connect, a vital goal of current bilateral diplomacy.

This is an exercise that cannot be restricted to just national bureaucracies, which are usually resistant to change but should increasingly involve pro- active participation of border communities and their representatives.

Endnotes 1 Subir Bhaumik, Insurgent Crossfire: Northeast India, Lancers, Delhi, 1996 2 http://news.bbc.co.uk/2/hi/south_asia/5150682.stm 3 Pramesh Chettri, India-China Border Trade Through Nathu La Pass: Prospects and Impediments. HIMALAYA 38(1), 2018 4 https://www.sasec.asia/index.php?page=news&nid=975&url=border-haats-boost 5 https://commerce.gov.in/writereaddata/trade/MoU_on_Estt_of_Border_Haats_with_Myanmar.pdf 6 https://timesofindia.indiatimes.com/city/guwahati/Centre-nod-to-border-haat-at-Pangsau-Pass/articleshow/ 18886661.cms?from=mdr 7 India-Myanmar Border ‘haats’ formally inaugurated in Arunachal Pradesh https://www.youtube.com/watch?v=40Pp-b9OUu8 8 https://www.bbc.com/news/world-south-asia-12269095 9 https://www.aljazeera.com/indepth/features/2012/11/20121125111624287499.html 10 Ibid 11 http://news.bbc.co.uk/2/hi/business/1871331.stm India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 75

Reimagining Border Haats as 8 Border Co-prosperity Zones

Sabyasachi Dutta Executive Director, Asian Confluence, Shillong, Meghalaya

It has been the consensus that Border Haats as an instrument to increase local livelihood, foster better cross-border micro-trade, facilitate people-to-people contact, reduce informal trade, and enhance border security, has been largely successful. The request for increasing the number and frequency of Border Haats has been forthcoming from many of the bordering districts.

But beyond the several tangible benefits experienced, Border Haats have given way for several intangible benefits – managed to create a narrative to generate more interest and awareness on issues and opportunities of border regions; nurture relationships at a local level; and be confidence boosters in strengthening foundations of the bilateral relationship beyond politics of the day, regime changes and sheer economics.

This Paper proposes a logical evolution of Border Haats to take forward these tangible and intangible benefits in multiple dimensions to become centres, which celebrate shared borders. The idea of a ‘Border Co-prosperity Zone’ has been presented. The paper argues that such co-prosperity zones with requisite investment in appropriate infrastructure and technologies can inspire confidence in seeing border zones not as ‘thick lines of regulation’ but as ‘connectors for mutual growth and co-prosperity’.

‘Border Haats’: of rivers, i.e. home to rich Background Drivers biodiversity and habitat.

India’s north-eastern states and Since time immemorial many the eastern neighbours comprise a communities have thrived here geographically compact and with rich cultures and traditions. ecologically fragile region. Seen as Intra and inter-community trade of a whole, the region enjoys a the rich array of local produce natural mountain to sea ecosystem ensured economic prosperity. The in the heart of the Ganga- advent of partition drew hard Brahmaputra-Meghna basin, with political lines over this naturally several climatic patterns, contiguous region. connected by an interlaced system 76 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

Several communities were spilt in In the Indo-Myanmar border in the middle, finding themselves on Nagaland, the Indian government two sides of international borders. stopped the fencing of borders The natural movement of goods due to intense demands and and people became restricted and threats of conflict from local tribes. what was traded as a natural way Herein exists the case for creating of life suddenly became ‘illegal’. regulated borders with greater Regime changes in respective emphasis on developing people- nations, the twists and turns of to-people contact and cross- geo-politics, and many other border trade initiatives, which are factors such as the rise of likely to yield greater security insurgency, led to the borders benefits. becoming heavily securitised. Border Haats: The Areas along the borders, which were traditionally points of Initial Intent and exchange for goods and people, Experience So Far became hot spots of smuggling The mechanism of Border Haats contraband and arms. Due to this, The mechanism of was introduced as an experiment goods and services traditionally to reintroduce pre-partition Border Haats was traded and forming an integral synergies between Bangladesh and introduced way of life of the local India as an instrument primarily for between communities also came under the generating livelihood for people in ‘security scanner’. Bangladesh and the border areas of the two India as an countries that are marred with In effect, an entire way of life and instrument limited access to development livelihood for border communities primarily for though the trade of locally grown ran into peril. Vested interests of produce and products. generating nefarious players rose in keeping livelihood for these border zones The haats were also expected to people in the underdeveloped and dark. The channelise a part of the informal people-to-people exchange border areas of trade that thrives along the porous became suspect and the socio- the two countries borders of the two countries. Four cultural scene greatly deteriorated. border haats are presently in operation at the India-Bangladesh In the case of many communities border: two in Meghalaya (India)- living along the political borders, Rangpur/Sylhet (Bangladesh) sub- the desire to reconnect with their region and the other two in Tripura forcefully alienated community (India)-Chittagong (Bangladesh) members has led to intense sub-region. demands and attempts at establishing this reconnect at the These four haats have been popular level, often based on local reported to register a trade figure and individual initiatives. Most of M17 crore in the last five years. significantly, communities have The achievement of these haats has evinced interest to negotiate these also been acknowledged by the artificial boundaries. India-Bangladesh Joint Committee India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 77

on Border Haats in its first meeting Secondly many cases of families in Agartala, Tripura in July 2018.1 being united have been reported giving a huge comfort factor to In the last decade, the experiment otherwise distressed border of setting up such an institutional communities. Thirdly, almost all mechanism has been successful in border haats have shown a many measures. The demand for propensity to trade in a larger ‘Border Haats’ has grown bottom- variety of products that are not up from the states and local necessarily produced within the districts’ administration. region. Melamine ware (from Communities, who were isolated, Bangladesh) and Cosmetics (from got a new lease of life and the India) are such examples. micro-economics of the area greatly improved giving rise to Border Haats have also been constructive players. instrumental in generating livelihood opportunities for people Several new facets have also been at the border areas of both the revealed: Firstly, Border Haats, if countries that are marred with accessible such as that in limited access to development. Kamalasagar, Tripura, has been proven to be a potential tourist Although the Border Haats are destination on the sidelines, customs-free zones, with increasing the scope and quantum restricted/positive lists and the of trading. total trade of all Border Haats

1 Bordering on Happiness: An Assessment of Socio-Economic Impact of Bangladesh-India Border Haats, 2019, CUTS International, India 78 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

combined is a minuscule fraction prone to climatic hazards like of the formal bilateral trade excessive rainfall or floods, one between the two countries, the should consider the creation of haats have proved to be a concrete vending platforms and mechanism to introduce new items adequate shelters for various of trade that otherwise are not stakeholders to seek refuge. traded through formal channels: exotic fruits, locally developed However, already operational haats handicrafts, are some examples. in the likes of Kasba-Kamalasagar has been facing similar issues of The haats also helped channelise a waterlogging over years, with no large part of the informal trade in proper measures and the areas where they have started interventions. Other areas of functioning, helping, in turn, law infrastructural development that enforcement challenges in these could contribute to better remote locations. functioning of the haats include access to electricity, improved Lastly and most importantly, approach roads, availability of perhaps intangibly, it has stood its water and properly functioning test of time as an instrument to toilets. withstand the ups and downs of regime changes and bilateral One ought to bear in mind that relations at government levels and families from both sides of the truly shine as an enduring symbol border come to haats not only for of a bottom-up driven platform to economic reasons but also to foster people-to-people connect. socialise and meet up with friends, family, and acquaintances. A major area of improvement for existing Border Haats pertains to Additionally, it is equally important infrastructure. When a haat is to provide the necessary established in an area, which is equipment to security officials like India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 79

CCTV cameras, scanners, and metal of the region, transcending detectors, which will help them to beyond the argument of only monitor the haats more effectively. economic benefits. Augmenting female participation in the forms of vendors, vendees, In this context a fresh look at and other stakeholders can boost borders is apt. For the north- up the efficiency of haats. eastern states of India, border regions that were often seen and Recent times have also witnessed dealt with from a security prism real strides in regional integration. and meant to be kept remote are However, this is mainly in two becoming increasingly recognised spaces — one, led by governments for their potential to be corridors and two, initiated by big of international trade and transit. businesses. The potential of the Special Economic Zones along ‘third space’ has remained borders are being discussed. The achievement unappreciated and therefore, of these Haats largely unharnessed. International Customs Posts have has also been been established and upgraded. acknowledged by While governments can put in The paradigm shift of borders from the India- political structures and big being thick dividers demarcating Bangladesh Joint businesses in partnership with national boundaries to becoming government together can take corridors and connectors is being Committee on forward economic structures, it seen as a positive development Border Haats in requires a strong civil society towards regional cooperation and its first meeting driven network of communities increasing regional security and in Agartala, across the region to complete the prosperity. Tripura in July picture of integration. 2018 Towards this end, three enabling This ‘third space’ requires dynamic factors may be considered — stakeholders, people across Firstly, Border Tourism exploiting disciplines, who think creatively for the tourism potential of selected out-of-the-box solutions even to border points based on factors address concerns on the ground such as natural beauty, heritage, or such as loss of livelihood, invasion pilgrimage value. of identity, illegal migration, demand for statehood, cross- Secondly, border points could border terrorism among others. draw popular footfall if promoted as duty-free outlets, something the It is only when the people of the Border Haats have already hinted larger region see the ‘connected at in their present avatar, albeit on picture’ that binds them together, a minuscule scale and scope. will there be a sense of ownership over this narrative of integration. Thirdly, selected border points could be set as destinations for Connectivity and economic health and educational services by integration have to be seen in the setting up quality educational and context of the physical geography, health services institutions such as fragile ecology, and social history premier skill training institutes, 80 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

hospitals, residential universities In summary, the experience of the among others. last decade has seen a renewed interest in developing border areas Some glimpses of the above ideas to make points along the border as have already been witnessed in the connectors and corridors of existing border posts: Tamabil and prosperity. Jaflong on the Indo-Bangladesh border are very popular tourism The Border Haat mechanism so far sites. The potential for border can be seen as one whose value far tourism in the Balat-Sunamganj exceeds simple trade to include Border Haat is immense, owing to intangible benefits such aiding the rich natural beauty of the area border security, bolstering bilateral and the presence of river Jhinjira. relations, and becoming an indicator of the progress towards Dholabari on the Indo-Nepal regional cooperation. border is a popular shopping site. The Kasba-Kamalasagar haat in Imagining the Next Tripura due to its proximity to a revered temple and the urban Logical Step: The Case centre of Agartala are popular for a Customs-Free draws for shoppers. Trade Stimulus Zone Based on the experience so far, and The Shija Hospital in Manipur on converging on all the ideas the Indo-Myanmar border is a discussed it may not be impossible popular draw and one of to conceive of a mechanism that Bangladesh’s most prestigious extends the idea of a Border Haat schools is coming up just across to a larger specifically demarcated the Tamabil border in Jaintiapur. India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 81

and designed area based on the symbol of a celebration of shared following principles: borders as connectors of peoples and ideas by people themselves • Celebrate shared borders by facilitated by their respective showcasing and facilitating a governments. The BCZ location deeper appreciation of the could be chosen and unique natural, cultural, and operationalised with the following historical importance of shared components: border points.

Setting up a • Make local, regional, and • Location: For its location, the ‘Border international tourism a major BCZ can be housed in a Co-prosperity driver for the economic specially demarcated area Zone’ will need development of the border area based on bilateral agreement adequate political by encouraging points of sale and meeting the needs of at border areas. will, financial security agencies on both sides. inputs, careful • Forge institutional While Border Haats are now collaborations with local bodies planning, and located in the ‘Zero Point’ to encourage local skills, talent, convergence of between fences, the BCZ could and produce of the point, and be conceived of as more several agencies making the local people the key welcoming and people-friendly. on both sides of producers and interested While the BCZ could lie in parts the border stakeholders for the region. in both countries, it would be a • Promote setting up of naturally enclosed area or with institutional collaborations in a fence all around, with the the field of education or health focus being on developing the services as major drivers for tourism potential of the place, people-to-people contact in the along the border to facilitate border point, as well as a means entry of residents from the to showcase the strong bonds countries. of friendship beyond borders. The choice of location could • Use of smart technologies to be a scenic location, with good collect primary data on the connectivity to an urban centre meaningful outcome from and preferably enjoying some people-to-people contacts, heritage value as well as natural which can be up-scaled with beauty. For example, there are further means for increasing many riverine areas on the bilateral collaborations and Indo-Bangladesh, (for example, diversify trade. Ranikor on the Jadukata River, Dawki on the Umgot River) and It is with these ideas that the Indo-Myanmar border (Rih Dil concept of a ‘Border Co-prosperity Lake) with immense tourism Zone’ referred to as BCZ potential. henceforth is presented: • Security and Access Control: The BCZ is a specially chosen, To facilitate increased footfall to demarcated, enclosed, and the BCZ while at the same time designed area to be a living meeting security needs, the BCZ 82 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

could have ticketed entry for institutions, parking, and areas visitors. Special Identification aimed specifically for cards can be made available to and security vendors, officials, and staff. establishments from both sides could be included. A single window system for procuring and checking the • Planned Calendar of validity of tickets with the use activities: The BCZ could run of appropriate technologies an event calendar throughout could ensure accurate record- the year curating festivals, keeping of all traffic as well as educational tours, the aid surveillance. performance by local and celebrity artists, exhibitions by • Infrastructure and Facilities: master craftsmen of the area, The BCZ could house retail and special conferences on the spaces including floating border aimed to maintain markets in case of a water body healthy and regular footfall. available, duty-free shopping, kiosks of local produce. • Institutional Collaborations: Curated spaces for cultural The BCZ could be an performances, exhibition opportunity to forge spaces, food outlet for institutional collaborations common as well as local between civil society delicacies could be designed organisations, small with contemporary and entrepreneurs, and cultural traditional themes to attract organisations to create and footfall. host joint projects (live Activity spaces for training, performances, exhibitions) workshops, health and banking using the BCZ as a launch services, ample staff quarters, platform. Mechanisms for skill offices for the collaborating exchange and skill development India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 83

of local resources could be Conclusion and designed powered by such Recommendations collaborations. The above ideas are by no means • Institutional Representations: complete or exhaustive and need In light of the above the BCZ to be evaluated in detail. However, should also house a convergence of all the various representative offices for staff institutions and ideas proposed from regulatory authorities into a single focused area such as such as health and quarantine, BCZ has enormous potential to customs, border security, develop into a public-private- immigration, and testing labs to people-led project. facilitate quick resolution of issues that may come up. This can catapult bilateral relations to a new orbit: a case for more • Complemented by integrated and inclusive institutions: The BCZ could development of border regions: also house an educational or turning borders into connectors. health service institute in the likes of developing a university Setting up a ‘Border Co-prosperity town at the border. Zone’ will need adequate political will, financial inputs, careful • Size: The size of the BCZ planning, and convergence of should be large enough several agencies on both sides of keeping in mind the need for the border. adequate parking and growth opportunities for the future, What is finally possible may be in besides accommodating all the question. But the case of Border facilities. Haats has shown that the process 84 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

itself will be a great confidence People of the nation and booster in the idea of borders as particularly of the region need to connectors. see and understand the tangible benefits of connectivity in their There is a need There is a need for votaries of win- lives and livelihood, by drawing for votaries of win solutions across borders to upon their unique cultural and win-win solutions ensure overall balanced economic social identities and recognising growth, and ensure security and the factors that bind them across borders to stability. This is where the need for together. Political will, trade, and ensure overall re-envisioning and energising the commerce have to be balanced third space comes. complemented by knowledge and economic growth, participation from ground-level and ensure In the overall context of stakeholders. security and connectivity, there is a need to stability reclaim a space for ‘togetherness’ The real success of any initiative in all its dimensions: physical, towards this end would only flow economic, civilisational, and out of conscious facilitation of free mental. Generating ownership and interaction of people while stakeholder-ship in the overall retaining national boundaries and narrative amongst local people is imagining a feasible zone of the need of the hour. communication stretching across the borders. The BCZ proposed is a proposal towards this end. India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 85

Reimagining Border Haats as International Retail 9 Trade Zones

Pritam Banerjee Independent Trade and Logistics Specialist

Traditional cross-border retail trade has broadly depended on two formats. One is cross- border tourism where buyers across the border make purchases. The other format is to have a dedicated retail zone accessible to foreign buyers with special rules and regulatory flexibilities on or close to an international border.

Both these formats depend upon certain economic, political and geographic pre-requisites and are subject to concerns related to non-compliance with established trade and tax regulations, consumer security, and abuse of these channels for contraband trade.

This Paper provides a brief synopsis of the literature related to the traditional cross-border retail trade and establishes the difference between cross-border tourism and cross-border retail zones. It goes on to discuss the different models of cross-border retail trade based on existing examples extant internationally.

It provides some practical examples of addressing these concerns through administrative innovations and technology and proposes a potentially workable model for such retail zones in this region.

Introduction And like all institutional innovations, there are significant Borders are an institutional differences in the design of these innovation. This seemingly obvious laws and procedures and their and innocuous statement enforcement in different places, accurately sums up the challenges that is, major variations in the of border management and the quality of this institution (that is, economic impact they have on border) at different locations. their hinterlands. Like all institutional innovations, borders The literature related to transaction are governed by a set of rules, costs of international trade and procedures and laws administered trade facilitation is primarily by agencies that ensure adherence focused on the theoretical or to them. applied analysis of such variations 86 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

in institutional quality and design. economic development through However, the discussion in this the economic integration of literature typically focuses on the borderlands that should not be wider hinterland enclosed by this overlooked. border. More importantly, it can lead to The borderlands, that is, the significant improvement in the regions near the border on either economic and quality of life of the side of it are much less studied. people living in the borderlands. This Paper makes This bias is reflected in policy a case for the priorities as well. Much more policy The strategy for economic development of effort is put into reforms and integration of borderlands can cross-border retail initiatives that would connect these focus on the integration of zones accessible wider hinterlands across production factors, or allowing for to consumers designated gateways, that is, points greater integration of in the border that allow the consumption, or both. Production from both sides in movement of goods, capital, focused integration has led to the context of people and data. innovations such as cross-border India-Bangladesh development zones or Special border This often results in the interior Economic Zones (SEZs). Good hinterlands being much better examples include the Maquiladoras connected compared to the in the US-Mexico border. borderlands on the two sides. In some ways, this is understandable, While consumer integration given that in many cases (with strategies are less common, but several notable exceptions) there are examples in the China- economic clusters of countries tend Kazakhstan border. In this regard, to be in the wider hinterlands and this makes a case for the not on the borderland. But there development of cross-border retail are definite opportunities for zones accessible to consumers India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 87

from both sides in the context of a border are not accessible across a the India-Bangladesh border. straight line but by a circuitous route via the nearest border gate. It Section I presents a brief overview follows that this concept of border of the concept of borderlands and development has economic, border zones and discusses some geographic, social, political and of the key elements in the literature environmental implications. associated with these concepts. Section II discusses some of the More importantly, borderlands existing cross-border retail models represent very diverse eco-systems. and associated learning from their For example, the highly urbanised operational structure and borderland between Mexico and management. the state of California in the US, or It is also between Singapore and Malaysia Section III makes a case for are completely different from important to developing commercial border sparsely populated borderland point out that the zones (CBZs) that allow formal between Laos and Cambodia with economic impact retailing and personalised services scattered villages on both sides, of a border on under controlled environments. It which in turn are different from the economic provides a design proposal densely populated but largely rural decisions, is not detailing the potential borderlands between India’s state limited to management of people and goods of West Bengal and Bangladesh. in a manner that will ensure international compliance with immigration, However, given that North borders customs, and security-related American and European borders regulations and processes using are the ones that are most studied technology and managerial and analysed, the literature on innovations to address any borderland development is biased regulatory concerns arising from towards studying the more such a development. Section IV urbanised borders in these regions. concludes with a summary of the The literature review that follows key messages and policy represents this bias. Despite this recommendations. shortcoming, this literature provides insights generically Border Zones and applicable to a discussion on borderlands and their Cross-Border Retail: An development. Overview It is also important to point out The characterisation of a border that the economic impact of a has been provided by Hoover border on economic decisions, (1948). He describes a border as especially those about purchasing akin to a river and the border and consumption in the points that allow passage across borderlands, is not limited to them as bridges. Like bridges, international borders. Sub-national these border crossings impose a borders (or international borders cost of operation and within a common market such as maintenance, and more EU) can also create varying degrees importantly, adjacent points across 88 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

of influence on such decisions due This would enable the to differences in taxes, economies concentration of economic activity of scale, or presence of specific on such borderlands. But industries or the existence of trade borderlands that tend to be further networks. away from such corridors have typically fewer economic One illustrative example from opportunities and are often Merriman (2010) demonstrates that considered to be on the economic differences in relatively minor tax periphery of their respective rates on items of regular countries. Clark (1994) calls this the consumption such as cigarettes ‘Circuity Effect’1 of border location. across a border can substantially influence consumer behaviour. The solutions and priorities that Consumers are willing to make the emerge from such a focus would An international effort of purchasing these items look to improve the efficiency of border imposes from the jurisdiction with lower border-crossings or the barriers to the taxes and do not mind the effort of development of Special Economic free movement of a little travel to save money on Zones (SEZs) that allow a more factors of such purchases. efficient combination of factors of production and production across borders. Generally speaking, a border, the ability to especially an international border But this focus on the corridors and freely exchange imposes barriers to the free gateways concentrates the goods and movement of factors of production infrastructure and institutional services and the ability to freely exchange solutions around these gateways goods and services. This inhibits and ignores the needs of areas not the local economy of the near the gateways or the corridors. borderland. Of course, the It is also pertinent to understand borderland near an international that the commercial and economic trading corridor has an obvious needs of the population in the advantage, being integral to the borderland might not benefit from transport and trading infrastructure the facilitation of infrastructure and proximate to international developed to serve the bilateral gateways (that is, land border trade needs between the two crossings) that bridge the borders. countries.2 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 89

Clark (1994) distinguishes this paired city syndrome exists in differential impact of the border the South Asian context as well, for hinterland and borderland with population concentrations regions into primary and underlined by historical, secondary level impacts. The economic and social affinities, primary effects relate to the overall for example, -Agartala. impact of international borders on a national economy (that is, the • The extent of permeability: overall hinterland) and are related Permeability refers to the extent, to issues of trade policy and cross- to which goods, services and border connectivity-related people can travel across a infrastructure. border, both formally or informally. Borders that are At the secondary level, national officially hard (that is, significant boundaries have localised effects restrictions and barriers on The commercial (in the border zone) defined by the formal trading) increase and economic course of the actual border and the ‘informal’ trade. This is needs of the locations, at which there are border especially true if such borders population in the points. Clark underlines that these are difficult to administer and borderland might secondary effects define many of do not have natural physical the microeconomic decision- barriers. In such conditions, not benefit from making impacting the day-to-day developing more formal, better the facilitation of lives of border zone residents. regulated and efficient markets infrastructure Whereas everyone in a nation is require a transformation of the developed to subject to primary boundary eco-system supported by both serve the bilateral effects, only those in border zones regulatory change and change trade needs are influenced by secondary in the business models. between the two effects. The key secondary effects are: As Stern (2015) points out, countries investments in market Secondary Effect Factors:3 infrastructure (that is, mall-like structures, or organised and • Cross-border market size: The well-built retail spaces) that density of population in the provide a solid impression of borderland and the overall formality, regulatory institutions purchasing power is a critical and development of protocols factor in the development of that inculcate trust among borderland retail markets. As buyers and sellers (for example, Ford (1988) points out, the payment systems, proper phenomenon of ‘paired cities’ receipts) are all part of this mix. representing large concentrations of population The differential pressure and buying power along the • across national boundaries: US-Mexican border (such as Per capita income levels and San Diego/Tijuana, and policies that have an impact on Mexicali/Calexico) led to the retail prices also have a growth of retail markets significant impact on what catering to customers across consumers buy and which side both sides of the border. Such 90 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

of the border they would like to transfer costs and circuitry effect source their purchases from. have a direct bearing on the nature Campbell and Lapham (2004) of border zone trade, that is, for example demonstrate the whether such trade would be impact of real exchange rate conducted formally or informally, fluctuations on the dynamics of or the extent to which formal retail trade in the US-Canada channels would be subject to border. We have already abuse. These factors would also discussed Merriman’s (2010) define the demand and scope of analysis of cigarette purchasing border-zone retail. behaviour in light of tax differentials across borders. Table 9.1 uses these five broad factors to analyse the prospects Leal et al. (2010) have and potential models for successful demonstrated that differences and sustainable border zone retail in the taxation of the same trade in the India-Bangladesh good or service between border, more specifically the The India- neighbouring countries, sections of the border that are Bangladesh neighbouring regions, or relatively far (or in economic and border is municipalities in the same supply chain terms not connected characterised by country encourage consumers with) from the main trading to travel to the jurisdiction corridors. significant where taxation is lower to population acquire that good or service, as The India-Bangladesh border, concentrations, long as the tax-saving especially the sections bordering cultural affinities compensates for the costs of West Bengal and Tripura are and long- travelling from one jurisdiction characterised by significant standing to another. A similar idea of population concentrations, cultural commercial and consumer decision optimisation affinities and long-standing has been put forward by commercial and trade relations, trade relations Kanbur and Keen (1993). and a border zone, without natural physical barriers, which is difficult • Transfer Costs: Transfer costs to completely seal off. There are reflect the price imposed on significantly high transfer costs these flows on crossing the (due to trade-related and logistical boundaries. This in turn might costs) for formal trade. Not be a function not only of costs surprisingly this results in of addressing formal barriers to significant demand for goods (and cross-border flows such as services), which can often be documentation for compliance serviced more effectively by with regulations, taxes and distribution networks across duties, and transport but also of borders. With high transfer costs costs of search, marketing and and a relatively permeable border, effort required to either sell to there is understandably a high or buy from across the border. volume of informal trade. No doubt, there is a visible presence of These concepts of market size, goods from across the border in differential pressure, permeability, border zone markets on both sides. India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 91

Figure 9.1: The relation between Cross-border market size and Differential Pressure, Permeability, and Transfer Costs

Significant demand in Significant demand and combination with high differential pressures means transfer costs of formal trade there is a case for border and low permeability zone retail. Presence of high (borders are effectively hard) transfer costs with the border creates incentives for being permeable would Large/High informal trade. Low mean that significant amount High permeability in the border of informal trade would Cross zone also results in circuity already exist in the border Border effect for formal trade. There zone. Investment in Market is strong case for developing infrastructure and regulatory Size and formal border zone retail solution for border zone Differential solutions retail can help shift informal Transfer Pressure trade to formal channels Costs

While lower levels of Low levels of demand and permeability (relatively open differential pressure would borders) might result in mean a modest market for some circuity effect, this is border zone retail. Low counterbalanced by low transfer costs and high level transfer costs. Given modest permeability would mean Small/Law market size and low that this modest demand can Low differential pressure, there be easily met by existing would be relatively low retail formal cross-border trade demand inthe border zone. solutions. Infrastructure and Infrastructure and regulatory regulatory solutions for investments would not be border zone retail would not justified be justified.

Low High

Permeability

Source: Author’s summary based on literature

As Ford (1988) underlines, the (Bangladesh), Balurghat/ presence of ‘paired’ urban Malda(India)-Dinajpur concentrations in the vicinity of the (Bangladesh), Siliguri (India)- border zone adds significantly to Thakurgaon (Bangladesh), the demand for border zone retail Coochbehar (India)-Lalmonirhat solutions. There are also large (Bangladesh), Silchar (India)-Sylhet urban concentrations at short (Bangladesh), Agartala (India)- distances across this border. Comilla (Bangladesh).

Some examples include Bongaon These urban/suburban (India)- (Bangladesh), concentrations act as both demand Behrampore/Murshidabad (India)- multipliers as well as distribution 92 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

hubs that connect local markets Some Existing with surrounding areas and this Cross-Border Retail can potentially help service a Models border zone retail market more effectively if such a market is Kovacs (2011) defines border zone allowed to develop. retail trade (or as per his nomenclature-cross-border retail) Differential pressure is also high as a frequent shopping activity of given that many of these border people living in borderlands regions and the associated urban towards the other side of the concentrations are some distance border to make a profit. ‘Profit’ in away from their national this context can be either in the hinterland. This would mean that form of lowering consumption There is a strong the effective prices of retail for expenditure or through gains from case for various products at these border petty trading. developing border regions would be at variance with zone retail the cross-border traded prices of In this type of shopping, mostly solutions in the these products between the Indian fast-moving consumer goods India-Bangladesh and Bangladeshi hinterland, (FMCG) products are purchased creating opportunities for price primarily for household border arbitrage for retailers. consumption.

Also, differences in tax and However, since the time of Kovacs imposition of customs duties create writing his paper in 2013, the differential pressure, at least if nomenclature of cross-border retail these goods are formally traded has been increasingly used in the and sold, due to price differences. context of online purchases (that is, cross border e-commerce), and The India-Bangladesh border zone, therefore to avoid confusion this therefore, represents a situation paper uses the more specific term characterised by the upper right- of border zone retail. hand quadrant in Figure 1. When there are sudden crackdowns on Using a modified version of Kovacs informal border trade making the differentiation between retail borderless permeable, the border models, Table 1 specifies the zone can also resemble the characteristics that define situation outlined in the upper left- borderland retail and sets it apart hand quadrant. In either scenario, from shopping tourism and other there is a strong case for generic types of cross-border retail. developing border zone retail Market development in the vicinity solutions in the India-Bangladesh of borders (that is, in the border border. zones) has typically used a mix of border zone retail and shopping tourism characteristics (which are outlined in Table 1). India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 93

Table 9.1: Differences between Retail connecting Buyers and Sellers across Borders

Borderzone Retail Shopping Tourism Cross-Border Retail

Participants Typically involves people Anyone, no spatial Anyone, purchase and payment living in borderlands determination are online (or based on catalog)

Catchment Region Mostly concentrated From anywhere From anywhere of buyers around border regions

Purchasing Food, clothing, items of Typically, high end All types of products, but tends Behaviour and daily use including FMCGs branded luxury to be biased towards higher Preferred and electronic appliances goods, electronics, value items/brands not easily Products alcohol, and tobacco available in local markets, or products esoteric niche products

Need for Presence Physical presence close to Longer-duration travel No need for physical presence and Duration the border, or in a transit across the border into across the border Across Border zone between borders of another country two countries

Customs and Application of physical Inbound customs at Either simplified customs Regulatory Model checkpoints with simplified entry gateway, with regulations governing lower- customs clearance declara- simplified rules value small parcels or general tion and inspection, similar applicable to interna- customs regulations depending to models applied to tional passengers on value and other details of the international passengers at products airports

Source: Author’s modification of classification table developed in Kovacs (2011)

The key differentiating factor the specific nuances of how such between the two relates to the fact cross-border movements are that while border zone retail managed and the administrative requires a specific physical market practices and institutional solutions location, preferably located close that have emerged from them. Border zone retail to or at the border, shopping trade is a frequent tourism can take place at any The US-Mexico Border shopping activity location. But a fundamental fact in Zone both these models is that access is of people living in controlled by customs and other The US-Mexican border zone borderlands authorities, thus providing the represents a vibrant cross-border towards the other ability to regulate the flow of commercial eco-system for side of the border goods and people to and from residents living in this region. As to make a profit these markets. Canas et al (2006) point out, US consumers cross the border in It is important to focus on a few large numbers to go to restaurants key examples of border zone retail or avail personalised services such activity that allow consumers to as a haircut, massage, or dental cross borders (or move to a services. dedicated facility) to understand 94 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

Mexican consumers travel to large shopping trip to a nearby location urban agglomerations such as across the border. The personal Chula Vista, San Jose, Laredo, El exemption limit is US$800 per US Paso and Nogales to buy items citizens re-entering the US and ranging from a day to day US$300-US$500 for Mexican groceries and FMCG to high-end citizens re-entering the US. fashion items. More than 650,000 people cross the US-Mexican Both US and Mexican authorities border every day. provide local tax exemptions. Specifically, US Federal law Given the importance of such prohibits the imposition of local cross-border commercial activity taxes on exports and, therefore, all The fundamental for the border zones on both sides, border states maintain a system of regulatory and its impact on local economies, refund of such taxes to foreign aspects for border local community leaders and shoppers. The Texas system of zone consumers business associations have a strong refund of such taxes is considered relate to their stake in its growth and continuity to be the most user-friendly. A ability to and have formed institutions that large percentage of Mexican physically cross play an important role of shoppers find this to be an intermediaries with regulators. One important driver of their decision borders and bring such institution is the Smart Border to make purchases across the back their Coalition, which will be elaborated border in Texas. purchases with later in this discussion. the minimal However, it seems despite this hassle The fundamental regulatory relatively user-friendly system, the aspects for border zone consumers refund process still requires some relate to their ability to physically effort, and only shoppers making cross borders and bring back their large purchases use it and day purchases with the minimal hassle shoppers (the typical profile of a (customs duties and other taxes, border zone consumer) do not and procedures related to them). A typically file for a refund. brief discussion on these aspects in the context of the US-Mexico Movement of People border follows: US citizens do not need a visa to cross the border, which is one Movement of Goods reason why US consumers can In both the US and Mexico, make more frequent trips and also purchases made by individual avail personalised services such as consumers across the border are haircuts or appointments with subject to personal exemption dentists that offer significant price limits. These exemption limits apply arbitrage. However, since visas are to any US or Mexican citizen re- required for Mexicans entering the entering his or her own country United States, it is relatively more after having travelled abroad, that difficult for Mexican citizens to is, there is no special provision for make the trip across the border. border zone residents who cross land borders for a short duration However, the US offers Mexican (typically less than 24 hours) citizens a solution, which is India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 95

extremely useful in the border on both sides of the border to zone context in the form of the ensure that borders do not act as Border Crossing Card. It has barriers for consumers to access enhanced graphics and technology retail and services on either side. that allow easier processing during entry and exit. The card itself is China-Kazakhstan Border valid for 10 years and allows Zone unlimited entry during these years. A border zone resident can, The China-Kazakhstan border zone therefore, easily enter the US for at Khorgos is very different from day trips related to shopping with the US-Mexico example in the relatively minimal hassles. sense that it is a sparsely populated area, with the nearest major urban There is also an example of a agglomerations on both sides, that specific border zone related is, Almaty in Kazakhstan and Urumqi in China more than 300 km The Border infrastructure solution for facilitating the movement of away. The rationale for the Crossing Card has people in the US-Mexican border development of a transit shopping enhanced between Tijuana (Mexico) and San zone at the Khorgos International graphics and Jose (US) in the form of ‘Border Centre of Cross-Border technology that Xpress’. The Border Xpress is closed Cooperation (ICBC) was based on allow easier access, CCTV monitored pedestrian the development of Khorgos as processing during crossing across the border that one of the key border points serving the Eurasian rail corridor entry and exit allows US citizens to enter into the airport at Tijuana just across the connecting Europe to China via border to either take flights or use Russia. retail services in and around the airport. Mexican citizens with visas The Khorgos ICBC invested in (or Border Crossing Cards can also developing specialised retail walk across into the US). experience (i.e. well-developed malls with rest and recreation Institutional Solution facilities) that would attract As mentioned earlier, successful shoppers from the larger urban border zone commercial agglomerations, on both sides of development requires businesses the border. It has primarily to develop trust with authorities attracted Kazakh citizens from that flexibilities and facilitations Almaty (340 km for ICBC), provided would be used Kapchagay (350 km from ICBC) and legitimately and that businesses Taldykorgan (316 km from ICBC) would serve as a partner in travelling to avail bargains for enforcement as well as in finding Chinese made FMCG, electronic solutions to regulatory issues. gadgets, and appliances.

The Smart Border Coalition, an Very few Chinese shoppers use the association of businesses in the Khorgos ICBC since the Kazakh San Jose-Tijuana border brings manufacturing industry has very together businesses, local little to offer that would be governments and federal agencies interested in most Chinese 96 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

shoppers. Since China bans the Kazakhs shoppers from the ICBC sale of agricultural products that was already available in local would have been of interest to markets in Almaty or Kapchagay, Chinese consumers (especially but this trade was largely illegally ethnic Tajiks and Uighurs citizens mediated and customers were not who have similar food culture with sure if they were getting genuine the Kazakhs), the opportunity for goods or whether they were being two-way border zone trade is thus cheated in terms of price. reduced.5 Replacing this informal trade with the formal establishment of a large The Khorgos ICBC has invested in a mall has led to increased consumer physical infrastructure at a transit confidence and thereby its zone with controlled entry and exit popularity with Kazakh shoppers. from both sides. This border retail zone is a well-planned five-storey Movement of Goods mall with over 2000 shops. The Kazakhstan allows its citizens a entry/exit points at both sides of personal exemption on customs the border are manned by duties and taxes of US$1,640 per customs/immigration and security month for items of personal personnel to prevent unauthorised consumption. If the shopper makes entry of goods or people. Given more than one trip per month, that the ICBC receives 5,000 plus then a flat applied rate of 30 per shoppers on a typical weekend day, cent of the value of goods is it represents a moderate imposed on such purchases. commercial success. China allows a personal exemption It needs to be noted that the of about US$285 per person, typical menu of goods sourced by subject to an annual limit of India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 97

US$2,850 per person. Anecdotal Potential for Retail evidence seems to indicate that Development on India- there is some degree of rent- Bangladesh Border seeking in customs, but most shoppers have access to agents or As discussed in section I, the India- Since China bans touts that help deal with such Bangladesh border has the 6 the sale of challenges. potential for developing retail- agricultural oriented businesses that cater to Movement of People consumers from both sides of the products that Free movement of people is border. The discussion in section II would have been allowed into the Khorgos ICBC on the different models of border of interest to from both sides. However, a zone retail indicates that the India- Chinese Kazakh citizen would need a visa to Bangladesh border resembles both consumers...the exit from the Chinese side, having the US-Mexico and China- opportunity for entered from the Kazakh side and Kazakhstan scenarios for citizens two-way border vice-versa. Shoppers are allowed to (of at least one of the countries) spend a full day before they have requiring a visa or a permit to enter zone trade is thus to exit the zone. There are no the territory of the other. reduced restrictions on the number of visits to the zone. The India-Bangladesh border also closely resembles the US-Mexico Institutional Solution scenario in terms of having The ICBC itself, that is development significant population density and of physical infrastructure with proximity of urban agglomerations secure access manned by customs with cross-border business and immigration, with agreed- networks and relationships. upon rules for the movement of people and goods and the To an extent, there are parts of the incidence of taxes and duties on border on the Indian side that such goods that are being resemble some parts of the purchased within the ICBC Mexican border and the Kazakh represents an institutional solution. side of the Khorgos ICMC in that The mall, with its allied they remain at a relative maintenance and commercial disadvantage (compared to most India-Bangladesh organisation represents the other parts of their country) in border has the business side of the institutional terms of retail choice and pricing potential for solution for ICBC. and this disadvantage is offset to an extent through access to more developing retail- Also, an eco-system of services, for developed commercial oriented example. buses that ply shoppers agglomerations across their businesses that overnight from Kazakh cities some borders. cater to distance away from the ICBC has consumers from also been created around this The two specific border zones both sides of the shopping facility. In that sense, the selected for discussion in this paper Khorgos ICBC represents a specific border are the Agartala Airport border border zone shopping solution. zone (Tripura state of India and 98 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

Table 9.2: Potential Addressable Markets: Agartala Airport and Lakhimari Border Zones

Agartala Airport Commercial Borderzone

Population Immediate Vicinity 1 15 million Market Size Immediate Vicinity US$31bn

Population Extended Region 2 32 million Market Size Extended Region US$62bn

LAKHIMARI -SONAHAT COMMERCIAL BORDERZONE

Population 3 18.5 million Market Size US$28bn

1 Includes Khowai, West Tripura, Shipahjala, Gomati (IND) and Brahmanbaria, Comilla, Noakhali, Feni (BAN) 2 In addition to immediate vicinity districts, includes Cachar division of Assam (IND) and Shylet division (BAN) 3 Includes Alipurduar, Cooch Behar, Dhubri, Bongaigaon, Kokrakjar, Goalpara, West Khasi (IND) and Kurigram, Lalmonirhat, Rangpur, Nilphamari (BAN)

Source: Author’s calculations. Population data from national government websites of both countries. Market size is based on State level GDP per capita (for India) and divisional level GDP per capita (Bangladesh)

Chittagong division of Bangladesh) Many of the services clusters are and the Lakhimari-Sonahat border situated in metropolitan centres in zone (West Bengal state of India India such as Kolkata, Bengaluru, and of Chennai, Delhi NCR, , and Bangladesh). Pune. Bangladeshi citizens are increasingly using the North Table 9.2 provides the basic data Bengal hills, Sikkim and Bhutan as concerning consumers and market tourist destinations. The network of size potentially addressable from private boarding schools in the either of these two border zones, North Bengal hills serves a sizeable followed by a discussion on the number of Bangladeshi students. In specifics of the potential short, there is a huge demand for The two specific commercial and associated connectivity to different parts of border zones regulatory models required to India. selected for develop and sustainably operate discussion in this these border zone retail solutions. The extended region of the paper are the Agartala Airport border zone (see Agartala Airport Proposal for Agartala Table 9.2) on the Bangladesh side of the border is located some distance border zone and Airport Border Zone away from the main airports in Development the Lakhimari- Bangladesh. Thus, their current route Sonahat border The Maharaja Bir Bikram Airport at to these locations in India is to travel zone Agartala is situated right next to to either through Dhaka or the border. The distance between Chittagong and find a flight to a Ajampur Railway station in major metro such as Kolkata, Delhi, Bangladesh territory and the or Mumbai and then again find peripheral wall of the airport is just further onward connections. about 900 metres. Bangladeshi Customs and immigration are done citizens are major consumers of at airports of entry in India. Indian health and education Agartala Airport, therefore, offers services. an alternative point of entry.7 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 99

If an approximately 300-metre- and then avail relatively cheap local long covered access-controlled transport for onward journeys. walkway (non-elevated) is They would complete their customs developed across the border,8 and immigration into Bangladesh at Bangladeshi citizens could enter the exit point of the walkway on the into Indian territory through this Bangladeshi side. A diagrammatic walkway, and undergo all customs representation of such a facility is and immigration formalities before provided in Figure 9.2. boarding a flight. They can then use the entire domestic flight As Figure 2 indicates, a fully-fenced network from Agartala Airport to corridor with a pedestrian walkway connect to the rest of India. (for passengers/shoppers) and a two-lane road running parallel to Similarly, Indian citizens who might the pedestrian walkway (to be used want to travel to Comilla, for small commercial vehicles Chittagong, Sylhet, Noakhali and carrying goods to stock in the other such urban agglomerations customs bonded warehouse or for trade (and with the directly used in-shelf inventory in development of the beach resorts stores inside the CBZ) would need in and near Chittagong) and to be developed across the India- tourism can easily enter into Bangladesh border near the Bangladesh through this corridor airport. This corridor would be

Figure 9.2: Diagrammatic Representation of the Proposed Agartala Airport Commercial and Entertainment Border zone

Source: Authors Conceptualisation 100 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

manned by security personnel from goods and other commercial Bangladesh and have full CCTV material to supply retail and other coverage. commercial outlets in the CBZ, Past the manned by Indian customs. Bangladeshi The corridor would have separate customs and entries into the CBZ facility for Thus, the two ends of the CBZ (at immigration passengers/shoppers and goods the entry/exit point of the cross- point, a walkway being supplied to the retail and border corridor and the entry/exit would connect other commercial establishments in point of the airport) would be passengers/ the CBZ. The goods would be securely manned by customs and inspected before they enter into immigration of the two countries. shoppers to the the common bonded warehouse The customs and immigration Airport entry, and (common in the sense that this authorities would have Standard various facilities warehouse would be under the Operating Procedures (SOPs) in the CBZ joint supervision of Bangladeshi similar to managing airport or land and Indian customs). passenger terminals, with a high degree of facilitation. A separate customs and immigration facility (manned by The CBZ itself would have a retail Bangladeshi officials) would also space for rent for traders/retailers be developed at the entry/exit from both India and Bangladesh. point of the corridor to process Besides a few sensitive items, all movement of passengers/shoppers types of merchandise should be into/out of the CBZ facility from/to allowed for sale on these premises, Bangladesh. including goods not manufactured in India or Bangladesh. In a sense, Past the Bangladeshi customs and this would be similar to a duty-free immigration point, a walkway shop, but with several different would connect passengers/ retailers leasing space and not just shoppers to the Airport entry, and one (or a few). various facilities in the CBZ. As illustrated in Figure 2, the The customs treatment on both proposed facilities include retail sides should also typically be akin and exhibition space, a multiplex to duty-free merchandise, that is, cinema that can double up as a personal purchase exemptions. The conferencing facility, personalised governments of both countries The services services outlets, and food court could enhance the personal import and hotel. A brief description of exemptions for purchases made in outlets could each of these follows shortly. the CBZ. serve a crucial aspect of the At the entry/exit point to the Dedicated stalls could also be Indian services airport, Indian immigration and made available to large Indian and that are exported customs would be able to check Bangladeshi e-commerce players. to Bangladesh passengers/shoppers entering/ Consumers can order online and exiting Indian territory from the collect their merchandise in these CBZ. There would be a separate stalls using point-of-sale cash or entry from the Indian side into the card payment at the stalls. This common bonded warehouse for would especially help Bangladeshi India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 101

customers who have limitations on food-related and hotel services being able to make online would also be present in the CBZ, payments in foreign currency. having conferences or exhibitions for trade promotion conceived for Given the popularity of Indian films a few days would also not be a in Bangladesh, having good quality challenge. cinema halls in the CBZ would further attract footfalls from across The cinema halls space could also the borders, and increased footfalls be used for live shows. Bangla rock- would help the retail business, as bands (from India and Bangladesh) well as the food-court. A have fans across the border. competitively priced hotel having Bengali and Hindi film industry- both three- and two-star quality related live shows, reality shows, rooms would also support and even jatra (a traditional form of shoppers, travellers, traders. theatre) could be hosted, serving clientele from both sides of the The stalls could be turned into border due to the visa-free access. exhibition centres for bilateral trade fairs and provide a platform, The services outlets (see Figure 2) especially for Bangladeshi traders could serve a crucial aspect of the seeking to reach out to the Indian Indian services that are exported to market. Since both sides will have Bangladesh. Space could be rented visa-free entry into the CBZ, it to provide out-patient-services would be an ideal meeting point. (OPD) and diagnostic services to Bangladeshi customers. Since a visa Similarly, the cinema halls could be would not be needed to enter the utilised for business conferences, CBZ this would facilitate much cultural and academic meets. Since greater ease of physical access for 102 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

Bangladeshi consumers seeking India and Bangladesh would not be such services. required to re-invent the wheel or develop new rules or procedures. Contact centres of education institutions and tutorials and exam The existing SOPs for duty-free A special regime preparatory service providers shops with their associated bonded of digital cards interested in Bangladeshi warehouse for inventory, with with biometrics customers could also avail space. minor tweaks for having multiple could also be Associated services such as high- retailers instead of one or a few, developed end salons or spas could also be would suffice for managing the developed to attract middle and flow of goods. upper-middle-class clientele. Similarly, the existing SOPs for The CBZ and Raja Bir Bikram processing immigration controls Airport would then potentially act and customs (for accompanied as force-multipliers for each other. baggage including duty-free Over some time, the increased shopping purchases) currently demand from Bangladesh would extant would suffice. Minor tweaks lead to an increased number of would be required to adjust to the flights from this airport to the rest visa-free access from both sides to of India, and allow for direct flights the CBZ entry/exit points (airport to many more locations. Just to use and cross-border corridor being a few examples, direct flights to the two gateways), and the larger Jaipur (due to demand for religious numbers of people expected to use tourists from Bangladesh to Ajmer) this. The use of technology and and Pune (Bangladeshi education smart risk management systems and some healthcare-related would eliminate whatever minor tourists) would be made possible. risks that agencies can perceive.

Bangladeshi travellers would gain Critical to the commercial from cheaper fares and faster development and sustainable transit times than their current management of this facility, and its The Government of routes from eastern parts of ability to make local businesses India should work Bangladesh. Similarly, the tourism from both sides of the border to develop the sector around the Chittagong hill- (retailers, exhibitors, services corridor on the tracts and some really good providers, entertainers) gain from beaches in the Chittagong division this initiative would be a dynamic Bangladeshi side could be developed through this business association dedicated to with the corridor, attracting Indian tourists supporting this facility comprising cooperation of the who are emerging as one the most of key local players from both sides Bangladeshi important drivers of the global of the border. government tourism industry. Such an institution would also be a Perhaps the most important partner in ensuring regulatory advantage of the design outlined compliance with concerned here is from a regulatory agencies and ensure that perspective. Customs, immigration facilitation in process management and security-related agencies from is not abused. It could look to India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 103

examples such as the Smart Border increased connectivity with Raja Bir Coalition that serves the Tijuana Bikram Airport) for the Agartala corridor in the US-Mexico border region should potentially serve as discussed earlier. credible reasons for the State Government of Tripura to arrange A special regime of digital cards for the land needed for the with biometrics could also be corridor (in the Indian side) and the developed. These cards would be CBZ in the proximity of the airport. given to the staff and management Given the ability of such a corridor of the retail and other commercial linked CBZ to foster overall growth facilities. These cards would allow of bilateral economic, cultural and the holders to facilitate access to people to people connect between the CBZ. The issuance and India and Bangladesh, the management of these cards would Government of India should also be best administered by this be keen on such a project, and bilateral association, which would work to develop the corridor on also look into the overall the Bangladeshi side with the The Lakhimari- maintenance and in-house security cooperation of the Bangladeshi of the premises of the CBZ. This government. Sonahat border bilateral association would also be zone is ideal for a able to ensure fair access to retail Proposal for Lakhimari mature and other commercial spaces to Sonahat Border Zone commercial local stakeholders. Development border zone Over time, the association could The Lakhimari-Sonahat border develop a regime of special digital zone is located in the Dhubri cards in partnership with the district of Assam. (Sonahat lies in authorities of both countries that of Rangpur would also accommodate short- division in Bangladesh. A land term temporary entry to local customs station (LCS) exists in business associates from the two Lakhimari with its counterpart countries into each other’s Bangladeshi customs in Sonahat). A territories. land-port has been operational in Sonahat since 2014, while a so- Figure 4 includes a space for the called ‘International Market’ and office premises of such an border trade centre has been set association, which would be up in Lakhimari and has been collectively responsible for the operational since 2015. Most administration of this CBZ (either developmental efforts so far have as a cooperative or a special been piecemeal and the purpose entity). This space would infrastructure has been essentially also be used by banks that provide geared to manage the movement 9 FOREX services (for shoppers and of goods via trucks across borders. businesses using the CBZ). The major item of trade being The overall commercial, business stone-chips and coal, the development, and connectivity warehousing and storage growth (from the perspective of infrastructure remains rudimentary. 104 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

However, local media reports over speaking Dhubri on the Indian side the last several years indicate that lies in the state of Assam.11 there is a strong demand for expanding the list of items allowed In light of this, India’s Border for trade. Indian ginger, garlic, Security Force (BSF) declared their onion, pulses and rice have a large plans for developing a ‘Wagah like’ market on the Bangladeshi side, as border at this location, with flag- do FMCG and electronic goods. lowering ceremonies and cultural Similarly, there is strong demand programmes to draw tourists. for Bangladeshi fresh vegetables, fish and garments.10 The Lakhimari-Sonahat border zone is ideal for a mature The local populations on both commercial border zone. As sides have also long demanded a pointed out in Table 9.2, this zone proper immigration facility. The caters to a catchment area of close land-port/border trade centre has to 20 million consumers and a become somewhat of a tourist market size close to US$30bn. As spot, with people gathering near Table 9.3 indicates, several major the zero points to meet and greet towns that are relatively under- each other and even organise local served by retail networks of their live entertainment. respective countries, exist in the periphery of 150 km. All this led to a local media outlet to describe such events as ‘Dui The proposed Dhubri-Phulbari Banglar Milon Mela’, loosely bridge (West Khasi Hill District, translated as a fair for coming Meghalaya), once built, will bring together of the people from both several other regions nearby. The sides of Bengal; though strictly development of the Dhubri-

Table 9.3: Some Major Urban Agglomerations at Lakhimari-Sonahat Border Zone

India Bangladesh

Town Distance to Town Distance to Proposed CBZ Proposed CBZ

Cooch Behar 60 Kurigram 47

Alipurduar 65 Lalmonirhat 52

Bongaigaon 150 Rangpur 86

Kokrajhar 88 Nilphamari 142

Dhubri 37 Phulbari (Dinajpur District) 43

Goalpara* 130 Saidpur 134

Phulbari* (West Khasi District) 45

Source: Author calculations. *Distances from Goalpara and Phulbari assuming the development of Dhubri- Phulbari Bridge India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 105

Phulbari bridge, the longest in bigger and more ambitious despite Asia, spanning about 20 km, would conditions for such development. act as a game-changer for this entire region.12 Besides the commercial, locational and logistical advantages already Both Sonahat and Lakhimari discussed, this border zone also (Golokganj) are connected by has land available along the border railways, which would also facilitate perimeter that would allow such a entry of potential customers to the border-zone development. Thus, proposed commercial border zone there is an opportunity to develop and help sustain footfalls. an advanced integrated commercial zone. The currently unused road bridge connecting Golokganj station with But this has to be done before the border could be creatively re- some of the more haphazard, developed (bridge upgraded with piece-meal ideas take shape and handle-rail and proposed rail construction starts. Figure 9.3 connectivity, which is also being provides a diagrammatic considered). That there is demand representation of a commercial for retail, as well as cultural and border zone (CBZ), which requires The development entertainment facilities connecting about 3.5 to 4 hectares of land, of the Dhubri- the populations of the border zone which is available. Phulbari bridge has already been established. would act as a The crux of a CBZ (to re-iterate game-changer But the plans for this border zone discussions elaborated upon for (most of them on paper) have been the Agartala Airport CBZ for this entire haphazard, to say the least. There previously) is that it eliminates the region is little coordination between need for visas for people to shop Bangladesh and the Indian sides. or avail cultural and entertainment Development initiatives such as the services and for traders to meet proposed ‘Wagah like’ border and undertake business. ceremony post replete with Additionally, the development of galleries do not cater to a holistic customs protocols akin to ‘duty- attempt to integrate shopping free shops’ creates an eco-system, traffic and wholesale trade, with conducive to the development of facilities and procedures allowing the viable retail-led commercial for visa-free entry to a transit zone, zone. which integrates facilities for entertainment, business meetings, If such a facility also integrates a food courts and immigration (for whole-sale trade zone, it enables those who have visas). optimal use of the regulatory resources and infrastructure being This is a failure of imagination and developed, while at the same time planning and a classic example facilitating trading opportunities where a good initiative, that is, the for small traders with relatively Border Haat, has not been built modest means. Such a facility upon to mature into something would essentially allow small 106 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

traders and retailers to purchase They would also implement the relatively small parcels of goods for ‘light touch’ risk management- further sale or distribution in their based check and inspections of home markets. Such a wholesale goods being carried out of the CBZ market would, therefore, lead to by shoppers after their purchases. much greater product The access to the CBZ for the staff diversification. and management of stalls and other commercial facilities, as well The proposed design in Figure 9.3 as maintenance staff, would be embodies this idea of integral facilitated by the issuance of digital development. None of the cards that are biometric-enabled independent piecemeal initiatives (discussed earlier in the context of for this location conceives of this Agartala Airport CBZ). opportunity for integration and most importantly misses the point Once inside the CBZ, shoppers on the vitality of visa-free access to would also have access to a food- a transit zone and facilitated court and toilets. A movie-theatre customs movement. could also be located inside the CBZ allowing shoppers to catch an The proposed facility design for Indian or a Bangladeshi movie. The this CBZ envisages secure access- theatre could be also used for live- controlled entry/exit points to the shows or trade and business CBZ from both the Indian and conferences. Bangladeshi sides (see Figure 3). These entry/exit points would be If local demands so indicate, manned by officials who will check services related stalls such as identity to ensure that Indians do doctors OPD chambers, not cross-over to Bangladesh or diagnostics, or contact centres for vice-versa through the CBZ. tutorial and other educational services could also be located with India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 107

space allocated either in the core small trade fairs and exhibitions, retail zone or in the food-court/ targeting the wholesale aspect of services facilities zone (see Figure trade proposed for this facility. The 9.3). All of this would add to the inventory for the retail (and commercial viability and overall services related) stalls would be attractiveness of this CBZ. stored in a common bonded facility managed by customs Based on the current interest in live administrations of both countries entertainment for local performers and there would be a special that often take place at Lakhimari- controlled entry for goods, whether Sonahat border zero-point, the directly going to the shops or core retail zone could also develop being stored as inventory (see an open-air theatre for such Figure 9.3). performances, adding further to footfalls. This open-air theatre A common ‘check-out’ facility has could also double up as space for also been included in the proposed business association meetings and design for the CBZ. A common

Figure 9.3: Diagrammatic Representation of the Proposed Lakhimari-Sonahat Commercial Border Zone

Source: Authors Conceptualisation 108 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

check-out, that is, a single point of regulators in the Agartala Airport payment is a regular feature of eco-system, especially with the food-courts with several different help of a robust business coalition stalls and the software and as a partner, as has been management practices required for suggested. this are commonplace. Many local fairs use a variation of this system In the case of Lakhimari-Sonahat using pre-paid coupons or receipts. CBZ, there would be a frequent The reason for the inclusion of this change of entities renting the stalls feature is to allow a further layer of on a short-term, temporary basis, assurance to regulators. thereby reducing the ‘known entity-lower risk’ factor in Since all transactions and payments regulatory management. Thus, this go through a set of common additional feature might become a registers and all cash/credit card critical level of assurance to payments are managed at this regulators on both sides for them single-point, the transactional to confidently allow such a model In the case of history of retail would be of commerce to operate, and Lakhimari- transparently available regularly to eliminate all existing restrictions Sonahat CBZ, the regulators, especially customs that have been in place for the there would be a and tax authorities. In combination ‘Border Haats’ so far. frequent change of with bonded warehouse (with entities renting the associated control measures) and The controlled entry of goods stalls on a short- controlled and secure entry and (manned by customs on either exit of goods (with CCTV cameras side) would also serve as the point term, thereby and if needed, basic scanning of entry for the trade-zone or reducing the machines in place) this provides wholesale market. This zone could ‘known entity- substantial checks and balances be on the lines seen in Khorgos in lower risk’ factor against abuse of duties and tax- the form of containers doubling up in regulatory related violations or even as ‘stalls’, that is, ‘box market’. management smuggling of contraband items. Goods could remain locked up in individual ‘boxes’ when the market The reason for suggesting this is not in operation or stored in the feature in the case of the Lakhimari bonded facility. Basic truck-bays Sonahat CBZ, while not in the case would be developed on either side of Agartala Airport CBZ is that of the goods entry, and allow Agartala Airport CBZ would be a goods to be carted inside/carted more conventional ‘duty-free’ zone outside (see Figure 3). with the permanent presence of certain retailers (having long-term Like in the case of the retail zone, lease arrangement for their stalls). goods can be taken to the shops directly once registered with A few stalls should be made customs and inspected, or sent to available to smaller-retailers the bonded facility for future use. temporarily, but control Registered cycle-van operators arrangements in place with a few could be allowed inside the CBZ to tweaks in the protocols should be provide carting services. The able to provide ample assurance to wholesale trade zone or box- India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 109

market would be physically any citizen of both countries to segregated into Indian and come and shop or trade. Bangladeshi sections. As in the case of the proposed A common customs inspection Agartala Airport CBZ, developing shed could also be developed in an institutional solution for the the centre of the whole-sale zone administration, management and to segregate and control the promotion of the CBZ is important. movement of exports and imports A ‘Haat’ or market committee with (that is, traders purchases) moving equal representation from both from the Bangladeshi side to the sides of the border would serve as Indian side and vice-versa (see this institutional solution. This Figure 3). committee would also have a few ‘elders’ as members. Such ‘elders’ Traders, once having entered the could be local legislators or zone through the access-controlled eminent citizens from both entries from their respective sides countries such as retired members As in the case of of the border, would be able to of the judiciary, bureaucracy, the proposed move freely between the Indian security forces, or prominent local and Bangladeshi portions of the captains of industry. Agartala Airport traders-market across the customs CBZ, developing an inspection zone (Figure 3). Having Representation from customs, institutional this facility where they can see/ immigration, local administration solution for the touch/feel the goods, negotiate and border security agencies of administration, and then prepare a wholesale both countries would serve as management and consignment and take it back into observer members. Such a promotion of the their own country would be a composition would automatically major booster for trade, especially ensure that this committee also CBZ is important for the larger local eco-system serves as an institutional platform consisting of the hinterlands of for cooperation and partnership Rangpur division in Bangladesh between businesses and and North Bengal, western Assam administrators/regulators. and western Meghalaya. The allocation of retail and other Key to the success of this proposed commercial spaces in the CBZ CBZ would be lifting of all current should follow a typical ‘Haat’ restrictions on what can be sold model, that is, space would be and who can buy and sell. A large made available to retailers for number of restrictions like what temporary periods. Space applies to border-haats must not allocation should be made through apply to this CBZ. Indeed, as transparent auctions and there suggested in the case of the should be some pre-eligibility proposed Agartala Airport CBZ, criteria for being able to participate this CBZ must also be free to sell in these auctions. The criteria any product (barring notable would need to be designed most exceptions such as liquor and inclusively, especially taking care other restricted items) and allow not to exclude smaller retailers and 110 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

indeed incorporating some positive Conclusion and discrimination in their favour. Recommendations

The auctions would be managed This paper argues for a more by a ‘Haat’ Committee. This integrated approach to cross-border committee would also be made commercial development, especially responsible for the operation and focused on retail and personalised management of the common services in select points in the check-out point. The ‘Haat’ border keeping in mind the Committee would have to dedicate demand for such innovations and the necessary space for offices, operational feasibility. which include rest and recreation area for the CBZ staff and Also, the operational feasibility regulatory agency staff (Figure 3). prioritises the needs of regulators putting models in place that An additional infrastructure address the key regulator concerns augmentation on the Indian side relating to revenue leakage, could be the strengthening of the smuggling and other illegal acts. existing old road bridge as a link between the Golokganj rail station Having discussed at length both (and the town of Golokganj) and existing international examples, as Lakhimari- the CBZ, with e-rickshaw services well as the proposed solutions for Sonahat CBZ to and from the CBZ. The bus-stop the Indo-Bangladesh borders, it is would also need and taxi stand in Golokganj to the important in the final summation, a much more CBZ could also be served by such to provide some of the key regulatory flexibilities and facilitated system e-rickshaws to avoid congestion and chaos that would emerge from developmental support that such of using the allowing large commercial CBZ development would need bonded facility, passenger vehicles, unregulated from policymakers: especially small numbers of auto and cycle retailers/traders rickshaws right up to the CBZ, • Removal of any restriction on and service which would also require additional eligibility regarding who can providers space for parking. shop at such CBZs, as long as they are citizens of either Once cross-border rail facilities are country and have documentary established a special ‘halt’ proximal evidence to support the same. to the CBA and with a secure The two governments can agree access footbridge leading to it with what such valid documents could also be developed, further would be. improving its commercial viability. Similar interventions could also be • Removal of any restrictions on considered on the Bangladeshi the eligibility regarding who can side. set up retail/personalised service stalls at such CBZs, as India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 111

long as they are citizens of implementing and operating either country. An additional such bio-metrics has reduced requirement for a proposed significantly in recent years. Agartala Airport CBZ would be the need to be registered with • High-levels of trade facilitation tax authorities and customs for shoppers in terms of (given the permanent/ long- customs processing of term nature of establishments). purchases made at the CBZ Given that Lakhimari- being brought into their Sonahat CBZ is being proposed territories. Highly targeted risk for smaller-scale retailers who management, which does not will put up stalls on an interdict or physically check intermittent or temporary basis, more than 5 per cent of the requiring them to be registered total footfall flow into these with indirect tax and customs CBZs should be the initial target would not be appropriate. and improve to around just 2 Therefore, a local protocol per cent over two-three years as for registration with customs regulators get more could be developed requiring comfortable with CBZ minimal documentation and operations and have better verification. The proposed CBZ intelligence and information to bilateral business association use for more targeted profiling. could also play a role in the verification of antecedents. A • Lakhimari-Sonahat CBZ would system similar to house-rent also need a much more verification could also be facilitated system of using the considered, where verification bonded facility, especially small by the local police station could retailers/traders and service be submitted as proof of providers. This would mean antecedents. having low charges for using the bonded facility and no • A special pass, preferably with requirement of any bond or bio-metric facilitation, needs to bank guarantee. This would be developed for those persons require major tweaking of who would access the CBZs current procedures and norms. daily. They include stall staff, It also means that the maintenance personnel, security owner/operator of the facility personnel (private security would need additional support engaged in Agartala Airport if the usage fees are kept low. CBZ), entertainer and Either both governments or one performers, warehouse workers of them could consider running and other support staff. and operating this facility with a Such a system of passes substantial subsidy to keep user should preferably be managed costs low for a period of three jointly by government agencies to five years to promote border and the CBZ business trade, regional integration and association. It is important to people-to-people cultural note that the cost of exchange. 112 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

After the initial period of substantial government funding support, the commercial and with land being provided at viability of this CBZ should rather competitive rates by the become robust enough for state. To the extent these CBZs users of the warehouse to serve as important regional afford market rates. integration initiatives, multilateral agencies such as • While both these concepts World Bank, Asian Development could be commercially Bank, or AIIB could also be interesting, they are both roped in for support. targeting eco-systems somewhat far away from the • In that context, a PPP model economic/metropolitan cores of could evolve where government their respective countries. brings in substantial funds and Therefore, to expect the private land as equity and the private developer(s) to jump in, that partner(s) bring in some funds too at market rates for land and (as commitment financing) and other infrastructure expertise to build, operate, development required, would manage and market such a be somewhat of a rosy facility. Just as in the case of assessment. These projects are some housing and retail real- building blocks of market estate developments, the development and as force developer eventually hands multipliers aimed at commercial over the facility to the actual growth for the larger hinterland users, that is, the operators of of these CBZs. the stalls, theatres and facilities In that context, these in the CBZ. projects could be taken up with India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 113

The above list is indicative and Such CBZs also provide a place for there are many more levels of entertainment and a place to sell regulatory and developmental and promote other services such as support that would be required at healthcare, education and even every stage of development of tourism. In the case of the Agartala such CBZs. If there is a Airport CBZ, it also integrates air commitment from governments of connectivity between a relatively both sides and support from the under-served region of Bangladesh private sector including the all- with the rest of India and allows the important local business Agartala Airport to build on these communities, then the micro- additional passengers to increase modalities of actualising these its connectivity with the Indian ideas would be easy to develop. hinterland.

In conclusion, it is important to This enhanced connectivity also reiterate that these CBZs are force helps India and Bangladesh to sell multipliers for regional integration. important services such as The essence of market-led healthcare, education and tourism development is to have a market, much better. somewhere to meet, touch and feel products, negotiate and enter into Last but not the least, it greatly contracts (formal or informal). improves the consumer welfare of the populations on both sides of These CBZs meet that requirement the border by making available a without encumbering interested wider variety of goods, at more people from both sides to competitive rates and through undertake the hassles of visas or formal channels that eliminate complicated customs clearance criminal elements that dominate procedures (up to some limits of such exchange of goods in the goods purchased). present eco-system. 114 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

References Adkisson, R. and Zimmerman, L (2004) Retail Trade on the U.S.?Mexico Border During the NAFTA Implementation Era, Growth and Change: A Journal of Urban and Regional Policy, 35:1, pg. 77-89 Alff, H (2017) Trading on Change Bazaars and Social Transformation in the Borderlands of Kazakhstan, Kyrgyzstan and Xinjiang in The Art of Neighbouring: Making Relations Across China’s Borders by M. Saxer and J. Zhang, Amsterdam University Press Campbell, Jand Lapham, B (2004) Real Exchange Rate Fluctuations and the Dynamics of Retail Trade Industries on the U.S.-Canada Border, The American Economic Review, 94:4, pg. 1194-1206 Canas, J, Coronado, R, and Phillips, K (2006) Border Benefits from Mexican Shoppers, South West Economy, Federal Reserve Bank of Dallas, May-June, pg. 11-13 Clark, T (1994) National Boundaries, Border Zones, and Marketing Strategy: A Conceptual Framework and Theoretical Model of Secondary Boundary Effects, Journal of Marketing, 58:3, pg. 67-80 Ford, L (1988) Behavioural Implications of Urban Growth Along the United States/Mexican border, Journal of Architectural and Planning Research, 5:3, pg. 208-14 Fullerton, T (2003) Recent Trends in Border Economics, Social Science Journal, Vol. 40, pg. 583-592 Hanson, G(2001)U.S.-Mexico Integration and Regional Economies: Evidence from Border-City Pairs, Journal of Urban Economics, Vol. 50, pg. 259-287 Hansen, N (1977), The Economic Development of Border Regions, Growth and Change, Vol. 8 (October), pg. 2-8. Holzlehner, T (2014) Trading Against the State: II/legal Cross-Border Networks in the Russian Far East, Etnofoor, 26:1, pg. 13-38 Kanbur, R. and Keen, M. (1993) Jeux Sans Frontiers: Tax Competition and Tax Coordination When Countries Differ in Size, The American Economic Review, 83:4, pg. 877-892 Kovacs, A (2011) On Borders, Border Regions and Cross-BorderRetail-Trading, Scientific Papers of the University of Pardubice, Series D. Faculty of Economics & Administration. Pardubice 28, pg.29–42 Leal, A, Sauco, F, and Lopez-Laborda, J (2010) Cross-Border Shopping: A Survey. International Advanced Economic Research, Vol 16, pg. 135-148 McCallum, J. (1995)National Borders Matter: Canada-U.S. Regional Trade Patterns, American Economic Review, Vol. 85, pg. 615-623. Merriman, D (2010) The Micro-Geography of Tax Avoidance: Evidence from Littered Cigarette Packs in Chicago, American Economic Journal: Economic Policy, 2:2, 61-84 Mogab, J, Pisani, M, and Nicols, K, Welkey, S, and Wuest, B (2005) Manifiesto: The Texas SalesTaxRebate and Cross- BorderMexican Shoppers. Texas Business Review, October Edition, pg. 2-6 Stern, D (2015) ‘Nado minimum!’ Mediating Respectability at Informal Markets on the Russian-ChineseBorder, Inner Asia, 17:1, pg. 5-30 Yang, X., Wang, Z., Chen, Y. and Yuan, F (2011) Factors Affecting Firm-Level Investment and Performance in Border Economic Zones and Implications for Developing Cross-Border Economic Zones Between the People’s Republic of China and its Neighbouring GMS Countries, Greater Mekong Subregion-Phnom Penh Plan for Development Management, Vol 1, No 1, Asian Development Bank Zhou, Y (2019) The buyers and sellers of Khorgos, a special trade zone on the Kazakhstan-China border, Quartz Magazine, October 26 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 115

Endnotes 1 Circuity refers to the reduction in the potential of economic activity since boundaries are permeable only at certain points and not at others. This inhibiting characteristic of the border results in fewer opportunities for economic development. 2 For example, border developments along the Vietnam-China border serve the needs of the industrial cluster in Chengdu (China) and Hanoi (Vietnam) that are being linked by a corridor and trade facilitation developments, but fail to address the commercial and cultural needs of the population in the borderland. 3 The list of factors here borrows from the conceptualization presented by Clark (1994) 4 Mogab et al. (2005) 5 Zhou, Y (2019) The buyers and sellers of Khorgos, a special trade zone on the Kazakhstan-China border, October 26th, Quartz, available at https://qz.com/1720196/who-visits-khorgos-the-trade-zone-on-china- kazakhstan-border/ 6 Ibid 7 The author would like to acknowledge Bhuwan Bhaskar Agarwal, Consultant Asian Development Bank (ADB) for pointing the author to the potential of Raja Bir Bikram Airport to serve a large Bangladeshi market given its locational advantage right on the border 8 Similar to Border Xpress between Tijuana and San Jose in the US-Mexico border discussed earlier 9 Essentially weight bridges, very basic customs offices, uncovered dumping yards for products like stone- chips, and very covered godowns, which remain largely underutilised given product restrictions on trading using this point 10 Authors summary of several local print media reports, as well as electronic news reports available on youtube 11 Ibid

12 India’s longest bridge set to come up between Assam and Meghalaya, North East Today, March 8, 2020, 116 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 117

India-Bangladesh Border 10 Haats in the post-COVID Era

Indranil Bose Associate Professor of Political Science, St. Xavier’s College, Kolkata, West Bengal and Bijaya Roy** Senior Research Associate, CUTS International

The COVID-19 pandemic has impacted not only public health across the world but also other sectors, like trade and connectivity at all levels. The immediate response to contain the pandemic has restricted cross-border movement of people and cargo. Since the border haats facilitate cross border people-to-people contact, these were also suspended for an indefinite period of time.

Given that the border haats are an important source of employment and livelihood for the local communities inhabiting remote border areas, its temporary closure will have adverse socio-economic effects on the local communities. In this regard, this Paper argues in favour of reopening the border haats, while adopting necessary measures to ensure the health and hygiene of the participants.

Background communities inhabiting geographically contiguous areas. A worldwide trend is discernible The more underdeveloped border among countries to look upon areas are, the more are they their international borders no vulnerable and prone to harbour longer exclusively in terms of illegal activities, which only adds to military security, but rather as the insecurity of such remote meeting points where two adjacent regions. communities can meet up and interact and exchange. Not that The Department of Border security is unimportant or even Management, Ministry of Home secondary, but such meeting Affairs of the Government of India grounds can facilitate people-to- has been implementing the Border people connect and cultural Area Development Programme exchange which can contribute to (BADP) through the State improved relations at the Governments as part of a grassroots between people and 118 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

comprehensive approach to Bengal. Under this programme, Border Management. The priority is given to the areas closer programme aims to meet the to the border.1 special development needs of the people living in remote and BADP is an important intervention inaccessible areas situated near of the Central Government to bring the international border and to about the development of border saturate the border areas with the areas by supplementing the State essential infrastructure through Plan Funds to bridge the gaps in convergence of Central/State/ socio-economic infrastructure, on BADP/Local schemes and one hand, and improving the Given that the participatory approach. security environment in border border haats areas on the other. It follows that provide an BADP was initiated in the border the development of border areas is important source areas of the western region during a top priority of the Government of of employment that Seventh Five Year Plan period India. and livelihood to for ensuring a balanced development of border areas the local Border Haat on India- through the development of communities infrastructure and promotion of a Bangladesh Border living in the far- sense of security among the India shares with Bangladesh an flung border border population. The international border which areas, its programme now covers 394 stretches over 4,096 Kms.2 Yet temporary closure border blocks of 111 border when one delves into the history of will have adverse districts in 17 States, which this piece of political engineering, includes 167 border blocks in 55 socio-economic one realizes that the border was a districts of 8 North East, States effects on the rather artificial construct which ran (including Sikkim), located along through people’s houses, hearts, local communities the international land border. The lives and living and split people States covered are Arunachal living socially, culturally and Pradesh, Assam, , Gujarat, economically integrated lives into Himachal Pradesh, Jammu & two communities with different Kashmir, Manipur, Meghalaya, badges of national political Mizoram, Nagaland, Punjab, identities. , Sikkim, Tripura, , Uttarakhand and West The gradual realisation of this reality induced the governments of India and Bangladesh to come to a consensus about establishing meeting points where people of the two nations could engage in mutual trade of commodities produced locally, without having to navigate through cumbersome documentation processes and bureaucratic hurdles that are usually entailed by international travel. India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 119

Baliamari). The first border haat has been functioning since July 23, 2011, at Kalaichar (India)-Kurigram (Bangladesh) in the West Garo Hills of Meghalaya.

The three other haats that followed are located at Balat (Meghalaya, India)-Dolora (Bangladesh) in 2012, Srinagar (Tripura, India)- Chhagalnaiya (Bangladesh) and Kamalasagar (Tripura, India)-Kasba (Bangladesh) in 2015. Additionally, six locations were also sanctioned for the establishment of border haats.4 Such fora would not only boost livelihood opportunities for the local communities, usually poor How Border Haats and marginalised, but also open Benefit Local up avenues for socialisation and Communities? cultural exchange. The result was In all the locations where border Border Haats. haats are established, agriculture is the main source of livelihood of ‘Border Haat’ is a rough-and-ready the residents. The landless either market, which allows local people used to work as labourers or from both the countries to trade in migrated to towns and cities in vegetables, fruits, spices, food search of livelihood opportunities. items, agri-implements, cosmetics, Border Haats have created toiletries, garments, melamine different avenues of income for products, aluminum products, these poor and marginalised bamboo products, plastic people by offering them products, fruit juice, processed employment as vendors, food items, and other such transporters, labourers, and indigenous products. Such haats or support service providers. markets are located on the zero lines of the border between India Border Haats have also created and Bangladesh and each buyer is earning opportunities for vendees allowed to buy commodities worth who buy products from the haats up to US$200.3 and sell them in their local markets and thereby manage to earn some Currently, there are four border profit. These border haats have haats in operation, two of which been instrumental in not only are in Tripura (namely, boosting trade but also in Kamalasagar-Kasba and Srinagar- generating livelihood Chhagalnaiya) and the other two opportunities for residents in these haats are in Meghalaya (namely, remote border areas. Balat-Dolora and Kalaichar- 120 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

Border haats have therefore through border haats, which was directly impacted income earlier done through informal and generation opportunities for all often risky informal channels. the participating stakeholders, viz vendors, transporters, labourers, COVID-19 Pandemic support service providers and even vendees. It has not only given and its Impact on rise to new vocations of work in Border Haats the remote interiors of the two The outbreak of COVID-19 has countries but has also created new forced governments of many opportunities for people to countries to enact stringent engage with cross-border trade in measures such as national different capacities. Many of these lockdown, suspension of stakeholders associated with international trade, etc. Closing of border haats are the sole income BADP is an border haats along the earners for their families and the important international border between India border haat is the only source of intervention of and Bangladesh, from mid of livelihood for them. the Central March 2020 for an indefinite period, is another measure Government to Not only have these Border Haats adopted by the governments of bring about the created livelihood opportunities India and Bangladesh to contain development of for the people inhabiting remote the spread of this virus. border areas by border areas, but also provided access to essential products at supplementing Given the significance of the reasonable prices, to the border the State Plan border haats and their positive residents most of whom are poor Funds to bridge impact on the local communities, and marginalised. In the Balat- prolonged closure of border haats the gaps in socio- Dolora border haat Indians get will be detrimental to the interests economic fresh vegetables and fish from of border residents of both India infrastructure and Bangladesh at a lower price and and Bangladesh as it may force on the other hand, Bangladeshis improving the many people below poverty levels get spices, fruits, and other items security due to a decrease in income at affordable prices. For example, environment in opportunities and non-availability while Jeera costs around US$5.31 border areas of essential commodities that were in Bangladesh, the Bangladeshi available at affordable prices at the vendees can buy the same Jeera at border haats. Additionally, this can US$3.30 at the haat.5 also result in the migration of border residents as income It needs to be reiterated that one opportunities are limited in these of the professed advantages of border areas. border haats lies in respect of the reduction of informal trade. The The situation will be even more decline in informal trade post critical for women as their mobility establishment of border haat was is restricted given their domestic primarily due to the creation of responsibilities and security local employment opportunities concerns - a consequence of and the permission subsequently occupational segregation due to granted for trade in commodities India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 121

socio-cultural norms prevalent in a 19 era it is equally important to patriarchal society like Tripura on ensure the practice of social the Indian side and the villages in distancing and adherence to other Bangladesh that are adjacent to safety norms within the haat the Border Haat. It is logical to be premises. apprehensive that the pangs of unemployment and hunger might Need to Operationalise even drive a few towards informal trade which was predominant in the Border Haats these areas before the To re-open the border haats, while establishment of the haats. keeping in perspective the issues of safety of health and Given these inevitable adverse maintenance of hygiene, it is consequences of the suspension of necessary to make the following border haats, it is crucial to amendments to the operational re-open these at the earliest. guidelines of these border haats. COVID-19 is, however, a problem W A limit needs to be imposed that is going to stay. Going by on the number of vendees per projections of contemporary haat and even time slots could medical expertise the world over, it be allotted to vendees to seems that we have to reconcile prevent over-crowding and ourselves to the ‘new normal’ ensuring social distance where we will be required to abide among participants. For by various practices about the example, a batch of say 200 maintenance of hygiene, vendees will be allowed to sanitisation norms, and physical stay at the haat premises for a distancing. To ensure safety, both stipulated period; once they personal and public, in this COVID- have vacated, the next batch 122 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

will be allowed to enter after of running water in the an interval that will grant time washrooms and the required for some basic cleaning up of sanitisation of the washrooms the haat premises. This may after each haat day. entail deployment/recruitment W The Border Haat itself could of additional personnel for serve as a forum for the purposes of haat dissemination of awareness management and about the COVID-19 virus and maintenance. the steps that need to be W It will also be mandatory for followed by the people to the participants to wear contain its spread. A stall at Border haats have masks, and maintain adequate the Haat premises could be been instrumental distance among themselves earmarked for sale of soap, in not only for which vigilance is also sanitisers, masks and such boosting trade but necessary. But, since this other items that people will also in generating might reduce profits of need to use to prevent spread livelihood vendors due to reduction in and contamination by the opportunities for footfall, the number of haat virus. days could be suitably Owing to the national residents in these W increased which would lockdown in both the remote border compensate for the loss of countries, it is assumed that areas business. the purchasing power of the W As hygiene, particularly hand border residents has shrunk, hygiene, is extremely and their purchase basket important to prevent the might remain limited to spread of the virus it is crucial essential commodities for the to ensure an adequate supply time being. To compensate for India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 123

the losses of the vendors due communities. Also, shrinking to a decrease in spending by employment opportunities might buyers, vendors of non- force the local communities to re- essential products could be engage in informal cross border advised to shift their usual trade. merchandise in favour of essential items only, and Given the importance of the vendees beyond 5 Km should border haats for the lives and also be allowed to participate livelihood of the local in the border haat. communities, there is a need to re- W Additionally, stress should be open the border haats, but without given on trade in agricultural compromising with the health and and essential commodities hygiene safety of the participants. through the border haat to In this regard, there is a need to ensure food security on both revisit the earlier protocols and sides. revise them, there is also a need Given the for putting in place appropriate importance of the Conclusion and infrastructure. Once re-opened, the border haats for haats can serve as a market for the lives and Recommendations new products like a face mask, livelihood of the Impact of border haats on the hand sanitisers, personal local income and livelihood of the local protection equipment, etc. Local communities, communities is immense. The women folk who are engaged in tailoring can produce face masks there is a need to operationalisation of border haats and sell them through the border re-open the has led to the generation of alternative employment haats which will buttress income border haats, but opportunities and reduce out- opportunities. without migration, provided additional compromising income support; and in the The smooth functioning of the with the health process led to a significant decline Border Haats may also be and hygiene in the informal trade between complemented by other initiatives of the Government of India. One safety of the India and Bangladesh that was such significant initiative is the participants happening through these border points earlier. Further, the border Government of India’s decision to haats are also important for implement the Shekatkar 6 promoting cross border value Committee recommendations chains in agri-horticulture related to creating border products and spices at the local infrastructure. levels. The Government has accepted and The outbreak of the COVID-19 implemented three important pandemic has drastically changed recommendations of the the scenario, leading to a Committee of Experts (CoE) under suspension of the haat operations the Chairmanship of Lt General D B for an indefinite period. This is Shekatkar (Retd) relating to border likely to cause economic infrastructure. These were related impoverishment of the local to speeding up road construction, 124 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

leading to socio-economic initiatives may facilitate the journey development in the border areas. of vehicles to and from the Border Haats and also prevent congestion On the matter related to creating of traffic at the approach to Border border infrastructure, the Haats. government has implemented the recommendation of CoE to In a nutshell, suspending the outsource road construction work border haats for an indefinite beyond the optimal capacity of the period will dilute the benefits Border Roads Organisation (BRO). accruing to the local communities, It has been made mandatory to and hence there is an urgent need adopt Engineering Procurement to re-open the border haats while Contract (EPC) mode for execution at the same time ensuring health of all works costing more than safety and hygiene standards of M100 crores. Such complementary the participants.

Endnotes 1 Badp.mha.gov.in 2 http://maizestarch.com/connex/downloads/Border-TradeRecommendations-Sept-2011.pdf 3 https://commerce.gov.in/writereaddata/UploadedFile/ MOC_636295985083746420_MOU_Border_Haats_across_Border_India_and_Bangladesh_8th_April_2017.pdf 4 https://cuts-crc.org/pdf/bordering-on-happiness-an-assessment-of-socio-economic-impacts-of-bangladesh-india- border-haats.pdf. 5 Information collected by researchers of CUTS International through primary survey under the project “Border Haats between India and Bangladesh as a tool to reduce informal cross border trade” supported by Department for International Development. 6 https://www.insightsonindia.com/2020/05/19/shekatkar-committee-recommendations/ India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 125

Role of the Media in 11 Popularising Border Haats

Asjadul Kibria Planning Editor, The Financial Express, Dhaka, Bangladesh

To provide a better understanding of border haats, the dissemination of relevant information through media is vital. Both in Bangladesh and India, misunderstanding abounds both in respect of border Haats, in particular, and Indo-Bangladesh trade, in general. The challenges and opportunities for enhancing border haats are also largely unknown to people in both countries. Even the media is not aware of the real situation in many cases.

The comprehensive research project undertaken by CUTS International holds the promise of facilitating understanding about border haats and their long-term potentials. This Paper argues that media in both countries can enhance its knowledge and understanding about Border Haats from such research and develop stories and disseminate awareness about Border Haats among the people at large.

The media could also reinforce the findings of on-going research through field visits and discussions with different stakeholders. The possibility of collaboration between media in both countries may also be explored in this regard.

Introduction Indian media, however, presented it as a lack of capacity on part of Bangladesh-India bilateral trade is Bangladeshi manufacturers and always a matter of interest to exporters to meet the demand in media in both countries, though India and also an inability on their there are significant divergences in part to comply with Indian their perspectives. For instance, standards. there was a time when most of the press in Bangladesh focused on the With the growth in bilateral trade big trade deficit with India. over the years, the economic relationship between the two Generally, it was perceived by countries has also intensified. It is Bangladeshi media that tariff and not merely the trade but measures non-tariff barriers imposed by India to advance the process of were the main reasons for the economic integration that is deficit suffered by Bangladesh. 126 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

getting more coverage in the (Tripura, India)-Kasba (Comilla, media in both countries. Bangladesh).

Nonetheless, differences in Encouraged by the initial response, perspective are discernible. the two governments have already Bangladeshi media is seen to agreed to open two more Border assume a more critical Haats along the Sylhet-Meghalaya consideration of the different steps border. Moreover, India will also involved in bilateral and sub- open four new Border Haats with regional integration. It is more Myanmar in the state of Mizoram. eager to identify the long-term Different media outlets have benefits and losses of Bangladesh already published several news and from deals like transshipment, articles on Indo-Bangla Border transit, or inland water trade. The Haat. view that India is deriving unilateral In 2011 that the advantage at the expense of Some lacunae regarding the governments of Bangladesh is also reflected there. information on Border Haats and Bangladesh and their operations are, however, India formally Indian media, on the other hand, noticed. In some cases, articles and opened the first find that these deals and steps are analyses were based on Border Haat at mutually beneficial to both information unveiled in different countries and, in fact, in some reports. Again, some of the stories Kalaichar in the cases, it is Bangladesh that reaps and articles were based on Indian state of the greater benefit. Indian media, secondary sources and no effort Meghalaya and at times, is seen to push for a was made to verify details with the Baliamari of different agenda, arguing that help of field visits. Kurigram district in economic connectivity and Bangladesh integration are the need of the Under the circumstances, the hour. comprehensive report on Border Haats prepared and published by Against the backdrop, Border Haat CUTS International may be looked has also triggered an interest in the at as a reliable document to consult media. It was in 2011 that the for gaining an insight into the governments of Bangladesh and conceptualisation and operations India formally opened the first of Border Haats between India and Border Haat at Kalaichar in the Bangladesh. Indian state of Meghalaya and Baliamari of Kurigram district in Review of CUTS Report Bangladesh. on Border Haats Later, three more Border Haats Bangladesh and India share a were opened between 2012 and common border stretching some 2015. These are (i) Balat 4100 km. Bangladesh-India Border (Meghalaya, India)-Sunamganj Haats or Bazaars are established on (Sylhet, Bangladesh); (ii) Srinagar the zero-line of the international (Tripura, India)-Chhagalnaiya (Feni, border. Bangladesh); and (iii) Kamalasagar India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 127

To understand the status of That is why the writing on the wall existing Border Haats and explore seems loud and clear: there should the potential for new Haats, CUTS be more Border Haats to improve International initiated a study, the lives and living standards of the together with its project partner poor and the marginalised Unnayan Shamannay, Dhaka-based inhabiting the remote locations research, and development along the border between the two organisation under support from countries. the World Bank. A significant argument in favour of The findings of the study have introducing Border Haats is the been presented in a research reduction that it facilitates in report entitled ‘Bordering on respect of informal trade alongside Happiness: An Assessment of illegal trade, including smuggling. Socio-Economic Impacts of Bangladesh-India Border Haats.’ CUTS study points out that Border Released in 2019, it is the first Haats have not only lowered the comprehensive report on Indo- extent of informal trade but has Bangla Border Haats. also contained, to a substantial extent, the flow of unwelcome Based on a review of existing commodities like drugs and literature, the report shows that explosives in the adjoining areas. border markets in Asia and Africa are slowly growing and thus cross- An interesting finding of the CUTS border trade, albeit small-scale, is study is in respect of the gender flourishing across the world. issue. It is not unusual that male vendors dominate the Border The study focuses on broader Haats. Other stakeholders like aspects as well as long-term direct officials, transporters, and and indirect benefits of Border labourers are almost entirely male, Haats. While focusing on the especially on the Bangladesh side. livelihood issue, it highlights that Border Haats have directly The paper, however, suggests: impacted income generation for all “Border Haats can be treated as a the participating stakeholders platform to enhance participation (especially vendors). of women, in various capabilities. Although there is limited scope for increasing vendors given persisting regulations, specific vendor quotas for women can boost women engagement.”

Border Haats can thus serve as instruments of women empowerment in societies that have long succumbed to conservative norms of patriarchy. While focusing on regulations, the 128 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

study discerns the problem of The extent to which the border information asymmetry. Vendors Haat arouses interest in both the do not always have the latest countries may be gauged from the information on officially approved trend of web and news searches items for trade at Border Haats. indulged in through Google in the two countries. Google Trends Details of amendments to rules (explored on December 23, 2019, in and regulations often do not reach Dhaka) reveal that, in 2019, there the concerned officials on time. was at least some interest in India, Officials are also found to apply New Delhi to be specific, regarding rules and regulations ‘Border Haat.’ indiscriminately. This, however, may not necessarily Again, “Customs officials and local bear reference to the Bangladesh- policemen are not present India Border Haat. At the same time, regularly and it largely falls on the there was ‘zero’ interest in BSF/BGB personnel to monitor Bangladesh or the search might Haat proceedings on a day-to-day have been too negligible for Google basis.” There is also the problem of to consider. Border Haats inadequate infrastructure in Border can be treated Haats, to which the report draws Nevertheless, there is little scope to attention. arrive at any firm conclusion about as a platform the interest in Border Haats from to enhance Overall, the report highlights some the above search trend. participation of positive outcomes of the four women, in Border Haats. One drawback of the Given that the CUTS report various study is the absence of a combined provides a comprehensive picture capabilities estimate of annual transactions of four Border Haats, it may well and trade volumes of the four serve as a guideline for both Border Haats. Though transactions governments to make the Haats in individual Haats are presented more efficient and beneficial, even separately, a combined assessment as they contemplate the could add clarity to the overall establishment of more such Haats picture. along the Indo-Bangladesh border.

Role of Media Media in both countries has a wide scope to investigate the The CUTS report provides a functioning of Border Haats and comprehensive picture of the four provide vital inputs for further functioning Border Haats and the development thereof. The extent of benefits highlighted may well serve coverage in the media will also be a as a source of encouragement for measure of interest of people in both governments to institute Border Haats. more such Haats. The report may also serve to promote awareness In fact, despite the increasing focus and understanding of the on bilateral trade and economic economics of Border Haats. activities, the national media in India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 129

Figure 11.1: Web Search on Border Haat in India in 2019

Source: https://trends.google.com/trends/explore?geo=IN&q=border%20haat

Figure 11.2: Web Search on Border Haat in Bangladesh in 2019

Source: https://trends.google.com/trends/explore?geo=BD&q=border%20haat

both countries is yet to capture the business hubs and ports in the grassroots level stories sufficiently. proximity of the border areas The coverage in media is largely dispatch some news, it is not based on the government always given the kind of briefings, discussions held by trade importance or publicity that it bodies, comments, and deserves by the central desks of observations on part of business the news agencies. Several leaders, and analyses of journalists, however, usually talk to economists and experts. industry associations and local traders to get insights into Border Field visits are rare. Even when the Haats. local correspondents at local 130 India-Bangladesh Border Haats: Yesterday, Today and Tomorrow

Enhancing Media media have a better and deeper Engagement understanding of the dynamics of border areas. They have better Instead of relying on secondary access to local authorities and sources like government businessmen and also local documents and relevant literature, inhabitants. media in both countries needs to carry out extensive and regular The experiences of senior visits to Border Haats. The efforts journalists may be helpful to those of local correspondents of dailies who are currently working and need to be supplemented by the focusing on Indo-Bangla trade and electronic media to ensure economic relations. comprehensive coverage of the Haats. Thus, the collaboration between local and national media may be an Senior staff members of these excellent option to widely cover media also need to visit the Haats border trade in all its dimensions. along with local correspondents Such collaboration appears all the and interact with different more pragmatic since national stakeholders. Media may also seek newspapers and television channels collaboration with trade bodies or usually prefer their local chambers in this regard. correspondents to do the work.

It is only through a multi-pronged Another collaborative approach strategy that the media can may involve journalists on both provide a better picture of the sides of the border. Both Haats and disseminate adequate Bangladeshi and Indian journalists information to all. may join hands to explore border trade activities. Not only is such As outlets of local media have also collaborative journalism not grown over the years, there is unprecedented, it also makes scope to sensitise them to look ample sense if one considers that into the Border Haat and related the residents on both sides of the aspects of border trade intensely. border have a shared history, Several journalists working in local alongside several cultural and social affinities.

Transforming personal interactions and collaborations to the level of an institutional arrangement is likely to foster better outcomes. Media of the two countries may also explore the scope for cross- border cooperation at local levels.

COVID-19 has posed a severe threat to the media industry. Several newspapers and web India-Bangladesh Border Haats: Yesterday, Today and Tomorrow 131

portals have already shutdown. Conclusion There have been unprecedented Border Haats are about people cases of layoffs and furloughs in living on the border areas between media across Bangladesh and the two countries. These people India. are mostly poor and marginalized. Their voices usually do not get The pandemic, however, has also reflected in government thrown up opportunities. To documents and non-government survive, almost all media outlets researches. Media in both are trying to strengthen their countries has a digital platforms to enhance their It is the media that can wide scope to virtual presence. accommodate and echo their investigate the voices and sensitise people about In this process, the demand for the larger reality of their lives. functioning of diversified and grassroots stories is Border Haats and on the rise. Both national-local and The media can go a long way in cross-border media collaboration provide vital disseminating information can provide such reports as border regarding Border Haats and how inputs for further Haat or border trade. development they have benefitted the poor inhabitants of remote border Not only trade, interesting life regions. This is a social stories of border residents, tales of responsibility that the media friendship across the border, sagas cannot and must not shirk from. of women entrepreneurship and facets of life as lived by peripheral border dwellers are not likely to fall flat on people who have lived lives differently.

References Bordering on Happiness: An Assessment of Socio-Economic Impacts of Bangladesh-India Border Haats - CUTS International, Jaipur, India. 2019. Firsthand assessment of makeshift Indo-Bangla border haats- The Financial Express, December 02, 2019. https://thefinancialexpress.com.bd/views/reviews/firsthand-assessment-of-makeshift-indo- bangla-border-haats-1575216899 Indo-Bangla border haats exemplary: WB- The Daily Star, September 26, 2018. https:// www.thedailystar.net/country/news/india-bangladesh-border-haats-exemplary-world-bank-1638919 Six border haats to come up soon-Times of India, August 21, 2019. https:// timesofindia.indiatimes.com/city/shillong/six-border-haats-to-come-up-soon/articleshow/ 70767318.cms