China is moving to implement a mega project titled the “Belt and Road Initiative” (BRI) at a cost of around $1 trillion.
Dubbed as the Silk Road of the 21st century, the ambitious project involves the construction of roads and shipping lanes though countries in Europe, Asia and Africa.
South Asian countries need to play a great role in the implementation of the project, but India, Pakistan, Sri Lanka and Nepal have yet to decide on their contributions.
Analysts think Bangladesh will try to maintain a balance in the implementation of BRI.
In the third week of November, the “Nepal-China Friendship Forum” organized an international seminar in Kathmandu in which participants discussed South Asia’s gains and losses from BRI.
Bangladesh representatives who attended the seminar hinted at Dhaka’s take on the initiative.
India is opposing the project, as one of its crucial routes will go through Pakistan-governed Kashmir that India claims as its own land. It is not possible for India to accept BRI in terms of this sovereignty issue.
However, India has no issue regarding the implementation of the proposed Bangladesh-China-India-Myanmar (BCIM) corridor at its eastern border.
“Bangladesh prefers to maintain strategic balance with India and China. The government has long been maintaining a balance with these two giant powers. I believe it will do the same in BRI as well,” said Dhaka University’s economic department Prof Selim Raihan, who attended the seminar.
The countries to be engaged with BRI are also concerned over financial issues.
“Initially other countries thought China would offer them a free lunch, which means Beijing would provide all expenses and [the other countries] would get solid infrastructure and a commercial corridor. But now they have realized that China is not doing it for free; it will give them loans on easy terms,” said Prof Prabir Dey of Delhi-based think tank Research and Information System for Developing Countries.
Prof Dey, who has been working on connectivity between South Asia and China and ASEAN countries, was one of the panelists in the seminar.
During his Bangladesh visit in 2016, Chinese President Xi Jinping wrote a cheque for $30 billion. However, it became gradually clear that it was not a grant, but rather a loan.
Prof Raihan said: “Bangladeshis have sensitivity for India, not for China. But the Sheikh Hasina-led government has not been more inclined to either of the powers.”
For example, he said in the construction of Payra port both Indian and Chinese companies are working together under an umbrella project, which one cannot think of elsewhere.
The Dhaka University professor also cited some more examples.
“Bangladesh purchased submarines for the navy from China and signed defence deals with India. China was not given allocation for the deep sea port, but a Chinese consortium was awarded 25% share of the Dhaka Stock Exchange.
“So I believe Bangladesh will find a midway path regarding BRI,” Prof Raihansaid.
Asian Tiger Capital’s Group Chairman Ifty Islam also echoed Prof Raihan.
“China is going to emerge as the world’s greatest economy by 2050. India might also secure a top position. So, Bangladesh cannot avoid any of its neighbours,” he said.
