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Indo-Bangladesh Developmental Cooperation

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Indo-Bangladesh Developmental Cooperation INDO-BANGLADESH DEVELOPMENTAL COOPERATION DISSIBRTJELTIONT SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF iflas^ter of ^Jjiloiop^p IN political Science BY AZRA KHAN UNDER THE SUPERVISION OF Dr. M. Mahmood Reader In Political Science DEPARTMENT OF POLITICAL SCIENCE ALIGARH MUSLIM UNIVERSITY ALIGARH. 1890 r 'fi^XHnlfl l ^ ^ DS1986 V 4 ^1 t- ? 3 OCT :392 Department of Political Science Phones : \';^'^ '^ ''If^ Aligarh Muslim University Ihm. : 266 Aligarh October 25,1990 THIS IS TO CERTIFY THAT i*lI5S A ZRM KHAN HAb PREPARED HER l*i.PHIi.. DISSERTATION ON «!NOO-BANGLAD£SH DEUELOPMLNTAL COOPERATION" UNCER (*iY GUIOANCE. THE yORK IS TiT FOR SUBHISSION FOR EVALUATION. CERTIFIED ALSO THAT THE CANDIDATE HAS CLEARED THE PRESCRIBED PAPERS AND PUT IN THE REQUISITE ATTENDANCE DURING THE PERIOD STIPULATED FOR THE COURSE. (nOHAPIMED nAH!*100C) READER IN POLITICAL SCIENCE CONTENTS Pages PREFACE ....i-iv Chapter I : THE ROLE OP INDIA IN THE .... 1-20 CREATION OP BANGLADESH - Indian aid during Lib­ eration Struggle of Bangladesh, - India and Bangladesh since Liberation, Chapter II t IN DO-BANGLADESH TREATY OF FRIENDSHIP, COOPERA­ TION AND PEACE, 1972 .... 21-38 - The Background and Significance - Anti-India Propaganda in Bangladesh - Sheikh Mujib's 1974 visit to India Chapter III : D£TERMIN;4NTS Op INDO- BANGLADESH DEVELOPMEN­ TAL COOPERATION .,.. 39-56 - Geographical Proximity - Politico-Strategic Understanding - Economic Linkages - Regional Cooperation - Indo-Bangladesh Coop­ eration under the SAARC - II - Pages Chapter IV : INDO-BANGLADESH DEVELOIMEN- TAL COOPERATION DURING 1972-1989 .... 57-79 - Pormation and Working of the Indo-Bangladesh Joint River Commission - Indo-Bangladesh Joint Economic Commission -j^greement on the Tin Bigha Corridor - Cooperation in Social, Cultural and Technolo­ gical Fields Chapter V : INDO-BANGLADESH TRADE RELATION?SINCE 1972 .... 80 - 100 - Indo-Bangladesh Trade Agreements Chapter VI j INDO-BANGLADESH COOPERA­ TION DURING 1990s:PROBLEMS AND PROSPECTS .... 101 - 109 - Indian Development Assis­ tance to Bangladesh - The Impact of Bilateral Cooperation - Indo-Bangladesh Coopera­ tion During 1990s CONCLUSION 110 - 114 SELECT BIBLIOGRAPHY .... 115 - 122 Table No. 1 - Indian Exports to Bangladesh ... 86 2 - Bangladesh Exports to India ... 87 3 - Bangladesh Trade with India,1979- 1985 ... 97 PREFACE This dessertatlon on ••Indo-Bangladesh Developmental Cooperation" is being submitted to A.M.U. in partial fulfil­ ment of the requirements for the award of the degree of Master of Philosophy in Political Science, The emergence of Bangladesh was a unique phenomenon in international politics. Ihe liberation of Bangladesh in 1971 was due to an internal insurrection as well as to military intervention by India and her successful diplomacy throughout the crisis which neutralized the Pakistan-U.S.­ China axis. Being not only the godfather of the nascent republic but also its main patron since the liberation, Indo-Bangladesh relations loom large in Indian diplomacy and constitute an important chapter in the diplomatic history of contemporary South Asia, The scope of this dissertation therefore covers the developments during the period 1972-1989. Major Problems Studied The study pos-es the question that whether Indo- Bangladesh cooperation in the developmental sector has been progressing upward during the post-Mujib period. The answer shall be traced from an analysis of the Indo- Bangladesh transactions during the period 1972-1989. The - il - study seeks to analyse in particular Indo-Bangladesh developmental cooperation from 1972 till the end of 1989. The specific areas to be explored are: 1. Indo-Bangladesh trade relations 2. India's development assistance to Bangladesh, and 3. Impact of politico-strategic issues on Indo- Bangladesh cooperation. In the preparation of this study I have relied mainly on statistics available in official documents and publications as well as a wide range of secondary sources. In Chapter I, I have analysed the geographical/ economic, cultural and social factors which were respon­ sible for the creation of Bangladesh as an independent nation-state. I have also depicted the role of India in the creation of Bangladesh and Indian aid and support during and after the liberation struggle of Bangladesh.' In Chapter II, I have analysed the frame work of the Indo-Bangladesh Treaty of Peace, Friendship and Coop­ eration of 1972. I have also assessed the significance of the treaty and its impact on the subsequent development of Indo-Bangladesh Cooperation in the political, strategic and the developmental fields. - ili - In Chapter III, I have made an effort to examine the determinatts of Indo-Bangladesh developmental coopera­ tion, i.e. geographical and strategic factors behind poli­ tical, economic, cultural and technological cooperation between the two countries. I have also made an effort to survey the political, economic and cultural agreements signed by India and Bangladesh and their contribution to the strengthening of bilateral ties and promotion of multi­ farious cooperation. In Chapter IV and V, I have surveyed the progress made in the field of Indo-Bangladesh developmental cooiv eration under various trade agreements and protocols between India and Bangladesh, I have analysed the frame­ work of India-Bangladesh Joint Economic Commission and its political role in promoting bilateral cooperation, I have also examined some of irritants that have prevente>d the normal working of the Indo-Bangladesh Joint Commission, In Chapter VI, l have highlighted the gains of Indo-Bangladesh cooperation and prospects of growth of friendly cooperation between the two countries during the 1990s, Finally, in the Conclusion I have summed up the main findings of the study, I have arrived at a positive - iv - view of the prospects of growth of Indo-Bangladesh deve­ lopmental cooperation. I have also evaluated optimisti­ cally the prospects of the improvement in Indo-Bangladesh relations in general, and expansion of bilateral trade and establishment of joint economic enterprises, in particular. I am greatly obliged to my supervisor Dr. M. Mahmood, Reader in the Department of Political Science, Aligarh Muslim University, without whose unfailing guidance and help I would not have been able to complete this disser­ tation. I am also thankful to Professor Mahmudul Haq, Dean, Faculty of Social Sciences, and Professor A.P. Sharma, Chairman, Department of Political Science, Aligarh Muslim University and other teachers and the research scholars for their constant encouragement. I would like to acknowledge my indebtedness to the staff of Maulana Azad Library, Aligarh Muslim University; the Nehru Memorial and Museum Library, New ^elhi; the Indian Council of World Affairs Library, New Delhi; the Central Library of Jawaharlal Nehru University, New Delhi; and the Delhi University Library, for their kind help in providing me with necessary materials. Last but not least, I am indebted to my father Mr. H.A.Khan whose affection and support sustained my interest in this work throughout. {\ULcy— ALIGARH, 25 October 1990 ^RA KHAN CHAPTER I THE ROLE OF INDIA IN IHE CREATION OF BANGLADESH The emergence of Bangladesh as a sovereign indepen­ dent nation in December 1971 with the moral and material support of the India was in many ways a unique phenomenon, for Bangladesh was the first country to emerge out of a successful national liberation movement waged against "internal colonialism in a new state which itself came into being out of the partition of the Indian subcontinent, Pakistan had appeared on the political map as an independent nation on August 14, 1947 under the provisions of the Indian Independence Act, 1947, passed by British Parliament. Pakistan was composed of two different wings West Pakistan and East Pakistan. But from the very beginning Pakistan could not be called one nation because several contradictions existed in the body-politic of Pakistan, Apart from the distance of about lOOO km betv/een the eastern and western wings of Pakistan, the two units had separate indentities as regards the language, culture and economy, etc. But the sentimental bonds that make a people conscious of their common nationality were almost absent, only the religious bond held them together for some time. After the partition of the Indian subcontenent - 2 - and creation of Pakistan as an independent state, one of the roost important problems faced by Pakistani leaders has been that of evolving a constitutional consensus and framing a constitution acceptable to different geographi­ cal, regions and ethnic groups. Wright has rightly observed that*. "The East Bengalis hoped that their numerical strength would allow the creation of a Pakistan which would give due regard to their desire for the maximum possible autonomy for their province, but they were disillusioned when they discovered that real power was securely in the hands of the constituent assembly." East Bengalis in Pakistan encountered two main obstaclesi First, the limited power of elected represen­ tatives generally and a lack of strength in the twin arms of the permanent executive. Secondly, the East Bengalis constituted only five per cent of the army. At the time of partition, there were virtually no East Bengalis in the entire civil service of Pakistan. In this way, they (East Bengalis) were ill-treated by the Pakistani govern­ ment, they were neglected and they felt that they were not 1. Denis Wright, Bangladesh : Origins and Indian Ocean Relations (1871-1975),
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