Assignment on

FOREIGN RELATIONS BETWEEN BANGLADESH & SAARC-ASEAE COUNTRIES

A term paper submitted in fulfillment of the requirements in the course of Environmental Studies Submitted By Nasrin Jahan Afrad, 0820BBA00766 Maksuda Akter, 0820BBA00718 Mahmuda khatun Jhumur, 0820BBA00775 Rubina Akter, 0820BBA00823 Mahmuda Akter Poly, 0820BBA00743 Fall session, 2009 Course Code: GED302 Course Title: Environmental Studies Under the supervision Of Md. Abu Hassan Faruk Lecturer in Environmental Studies

Department of Business Administration Manarat International University, Dhaka Date, 2009

Acknowledgment
At first we give to thanks my course teacher Md. Abu Hassan Faruk to giving as a chance for the preparation of our assignment. Next thanks our friends, they help to prepare our assignment. Our assignment topic is Foreign relations between Bangladesh and SAARCASEAE countries. We collected our information topic and data from many source. We collected our topic in internet and other source.

Abstract
In 1997, intense debate engulfed Bangladesh domestic politics over the question of sub regional co-operation with India, Bhutan and Nepal within the South Asian Association for Regional Co-operation (SAARC). Whilst the political opposition depicted the proposed sub regional co-operation scheme as an Indian ploy to undermine the national sovereignty and independence of Bangladesh, the ruling Awami League viewed it as essential for national economic development. This paper examines the scheme's rationale, maps out the nature of its political opposition, analyses India's position, and highlights Pakistani and Sri Lankan concerns as to the nature of sub regional co-operation in South Asia. It concludes that minimum value consensus between the political parties on fundamental national issues in all SAARC countries, particularly in Bangladesh, and better political understandings between the governments of the region are the prerequisites to make the scheme for sub regional co-operation a success.

Content

1. Acknowledgement. ..2 2. Abstract.3 3. Introduction...5 4. Study area..6 5. Objectives..7 6. Methodology.23 7. Analysis and discussion .. 24 8. Findings 25 9. Conclusions...26 10. Bibliography 27

Introduction

Bangladesh pursues a moderate foreign policy that places heavy reliance on multinational diplomacy, especially at the United Nations.

Participation in Multilateral Organizations. Bangladesh was admitted to the United Nations in 1974 and was elected to a Security Council term in 1978 and again for a 200001 term. Then Foreign Minister Chowdhury served as president of the 41st UN General Assembly in 1986. The government has participated in numerous international conferences, especially those dealing with population, food, development, and women's issues. In 198283, Bangladesh played a constructive role as chairman of the 'Group of 77,' an informal association encompassing most of the world's developing nations. It has taken a leading role in the 'Group of 48' developing countries and the 'Developing-8' group of countries. It is also a participant in the activities of the Non-aligned Movement.

Since 1975, Bangladesh has sought close relations with other Islamic states and a role among moderate members of the Organization of the Islamic Conference (OIC). In 1983, Bangladesh hosted the foreign ministers meeting of the OIC. The government also has pursued the expansion of cooperation among the nations of South Asia, bringing the process--an initiative of former President Ziaur Rahman--through its earliest, most tentative stages to the formal inauguration of the South Asian Association for Regional Cooperation (SAARC) at a summit gathering of South Asian leaders in Dhaka in December 1985. Bangladesh hosted the last SAARC summit in November 2005, and Prime Minister Khaleda Zia had reassumed its chairmanship. In the latest summit, Bangladesh has participated in a wide range of ongoing SAARC regional activities. The head of the current caretaker government participated in the April 2007 SAARC summit in India.

Study area
Recent study found that The ASEAN region and the European Union are two regions with approximately the same land area as the SAARC region. But these two regions are far less populated than the SAARC, 566 million and 493 million respectively compared with 1,484 million of SAARC region in 2006. Furthermore, ASEAN and European Union regions have recorded higher per capita GDP figures of US$ 4,545 and US$ 31,020 in 2006 compared to US$ 2,318 of SAARC region.

Objective

Foreign Relation
Bangladesh pursues a moderate foreign policy that places heavy reliance on multinational diplomacy, especially at the United Nations. SAARC countries are Bangladesh, India, Pakistan, Nepal, Bhutan, Maldives, China and Sri Lanka

Participation in Multilateral Organizations

Bangladesh
Bangladesh was admitted to the United Nations in 1974 and was elected to a Security Council term in 1978 and again for a 2000-2002 term. Foreign Minister Chowdhury served as president of the 41st UN General Assembly in 1986. Bangladesh is slated to become the next chairman of NAM at the summit scheduled for Dhaka 2001. Bangladesh is currently chairman of the Group of 8 Developing Countries. The government has participated in numerous international conferences, especially those dealing with population, food, development, and women's issues. In 1982-83, Bangladesh played a constructive role as chairman of the "Group of 77," an informal association encompassing most of the world's developing nations. In 1983, Bangladesh hosted the foreign ministers meeting of the Organization of the Islamic Conference (OIC). It has taken a leading role in the "Group of 48" developing countries.

Since 1975, Bangladesh has sought close relations with other Islamic states and a prominent role among moderate members of the OIC. The government also pursued the expansion of cooperation among the nations of South Asia, bringing the process--an initiative of former President Ziaur Rahman--through its earliest, most tentative stages to the formal inauguration of the South Asia Association for Regional Cooperation (SAARC) at a summit gathering of South Asian leaders in Dhaka in December 1985. Bangladesh has served in the chairmanship of SAARC and has participated in a wide range of ongoing SAARC regional activities.

Bilateral Relations with Other Nations

Bangladesh is bordered on the west, north, and east by a 2,400-kilometer land frontier with India, and on the southeast by a land and water frontier (193 kilometers) with Burma.

India.
India is Bangladesh's most important neighbor. Geographic, cultural, historic, and commercial ties are strong, and both countries recognize the importance of good relations. During and immediately after Bangladesh's struggle for independence from Pakistan in 1971, India assisted refugees from East Pakistan, intervened militarily to help bring about the independence of Bangladesh, and furnished relief and reconstruction aid.

Indo-Bangladesh relations are often strained, and many Bangladeshis feel India likes to play "big brother" to smaller neighbors, including Bangladesh. Bilateral relations warmed in 1996, due to a softer Indian foreign policy and the new Awami League Government. A 30-year water-sharing agreement for the Ganges River was signed in December 1996, after an earlier bilateral water-sharing agreement for the Ganges River lapsed in 1988. Both nations also have cooperated on the issue of flood warning and preparedness.

Pakistan.
Bangladesh enjoys warm relations with Pakistan, despite the strained early days of their relationship. Landmarks in their reconciliation are:

An August 1973 agreement between Bangladesh and Pakistan on the repatriation of numerous individuals, including 90,000 Pakistani prisoners of war stranded in Bangladesh as a result of the 1971 conflict; A February 1974 accord by Bangladesh and Pakistan on mutual recognition, followed more than 2 years later by establishment of formal diplomatic relations;

The organization by the UN High Commissioner for Refugees (UNHCR) of an airlift that moved almost 250,000 Bengalis from Pakistan to Bangladesh, and nonBengalis from Bangladesh to Pakistan; and Exchanges of high-level visits, including a visit by Prime Minister Benazir Bhutto to Bangladesh in 1989 and visits by Prime Minister Zia to Pakistan in 1992 and in 1995.

Still to be resolved are the division of assets from the pre-1971 period and the status of more than 250,000 non-Bengali Muslims (known as "Biharis") remaining in Bangladesh but seeking resettlement in Pakistan.

Bhutan
The two countries agreed to "explore the possibility of land connectivity" to enhance trade and people-to-people contact, according to a joint press statement released by foreign ministry on the prime minister's visit. The two countries have also reached a consensus on "exploring the possibility of cooperation" in the energy sector under South Asian Association for Regional Cooperation charter. The agreement came on Monday at the end of Prime Minister Sheikh Hasina's four-day visit to the Himalayan nation. The two sides signed a trade deal on Saturday. As a move to increase bilateral trade, Bhutan waived all duties on imports from Bangladesh. Hasina announced Dhaka's reduction of the existing 15 percent tariff to zero on 18 import items from Bhutan to increase the volume of trade, said the statement. Bangladesh's exports to Bhutan total less than $1 million, and include warm garments, computer accessories, dry foods, pharmaceuticals, toiletries and textile items. Bhutan's exports to Bangladesh totals around $14 million, according to the latter's commerce ministry figures. Bhutan's main export items are mineral products, foodstuffs, fruits, beverages and oats. "Both sides emphasized the relevance of enhancing people to people contact to further strengthen the existing close ties of friendship and cooperation," said the joint statement. They agreed to promote each other's tourism in their respective countries. "They also agreed to explore the possibility of land connectivity between Bhutan and Bangladesh under the aegis of SAARC transport connectivity to promote intra-regional

trade and travel." The 14th SAARC summit in April 2007 in Delhi had special focus on regional connectivity. According to the regional connectivity plan, SAARC proposed a number of routes to integrate the South Asian countries. The major corridors proposed were: Lahore-Delhi-Kolkata-Petrapole-Benapole-DhakaAkhaura-Agartala (2,453 km), Kathmandu-Nepalganj-Delhi-Lahore-Karachi (2,643 km), Kathmandu-Birgunj-Kolkata-Haldia (1,323 km), and Thimpu-Phuentsholing-JaigonKolkata-Haldia (1,039 km). Referring to the growing energy demand in Bangladesh and Bhutan's high potential for production of hydro electricity, the two sides also agreed to explore possibility of cooperation in the field of energy under the SAARC regional cooperation in energy sector. Mountainous Bhutan has the potential to produce about 30,000 MW of electricity, according to SAARC estimate. The Indian companies have so far been able to exploit 10,000 MW of electricity most of which goes to India. Bangladesh and Bhutan will have to construct a 50-km long distribution lines to import its power subject to approval of India's central government. New Delhi officially dictates foreign policy of Bhutana "consciously isolated" country. Prime minister Sheikh Hasina went to Bhutan on Nov 6 on an invitation from Bhutanese premier Lyonchen Jigmi Thinley, and returned home Monday afternoon. During her stay in the Himalayan country, Hasina was also received by the King Jigme Khesar Namgyel Wangchuck and his father Jigme Singye Wangchuck. Foreign minister Dipu Moni, commerce minister Faruk Khan and industries minister Dilip Barua accompanied the prime minister.

Burma.
Bilateral ties with Burma are good, despite occasional border strains and an influx of more than 270,000 Muslim refugees (known as "Rohingya") from predominantly Buddhist Burma. As a result of bilateral discussions, and with the cooperation and assistance of the UNHCR, most of the Rohingya refugees have now returned to Burma. As of 2000, about 22,000 refugees remain in camps in southern Bangladesh.

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Former Soviet Union.

The former Soviet Union supported India's actions during the 1971 Indo-Pakistan war and was among the first to recognize Bangladesh. The U.S.S.R. initially contributed considerable relief and rehabilitation aid to the new nation. After Sheikh Mujib was assassinated in 1975 and replaced by military regimes, however, Soviet-Bangladesh relations cooled. In 1989, the U.S.S.R. ranked 14th among aid donors to Bangladesh. The Soviets focused on the development of electrical power, natural gas and oil, and maintained active cultural relations with Bangladesh. They financed the Ghorasal thermal power station--the largest in Bangladesh. Recently, Russia has conducted an aggressive military sales effort in Dhaka and has succeeded with a $124 million deal for eight MIG -29 fighters. Bangladesh began to open diplomatic relations with the newly independent Central Asian states in 1992.

China.
China traditionally has been more important to Bangladesh than the former U.S.S.R., even though China supported Pakistan in 1971. As Bangladesh's relations with the Soviet Union and India cooled in the mid-1970s, and as Bangladesh and Pakistan became reconciled, China's relations with Bangladesh grew warmer. An exchange of diplomatic missions in February 1976 followed an accord on recognition in late 1975. Since that time, relations have grown stronger, centering on trade, cultural activities, military and civilian aid, and exchanges of high-level visits, beginning in January 1977 with President Zia's trip to Beijing. The largest and most visible symbol of bilateral amity is the Bangladesh-China "Friendship Bridge," completed in 1989 near Dhaka, as well as the extensive military hardware in the Bangladesh inventory and warm military relations between the two countries. In the 1990s, the Chinese also built two 210 megawatt power plants outside of Chittagong; mechanical faults in the plants cause them to frequently shut down for days at a time, heightening the country's power shortage.

Other countries in South Asia.

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Bangladesh maintains friendly relations with Bhutan, Maldives, Nepal, and Sri Lanka and strongly opposed the Soviet invasion of Afghanistan. Bangladesh and Nepal recently agreed to facilitate land transit between the two countries.

Prospects for Greater Cooperation among SAARC Countries on Energy

By Indiamen last modified 2009-04-23 20:09 January 29, 2009: Energy Ministers and Senior Officials of SAARC Countries meet in Colombo over January 28-29, 2009, to discuss prospects for regional cooperation in Energy. Opportunities are many, as described in the article.

A glance at the Region Sources: The Island Online By: Swetha Perera and Amila Wickramasinghe Sri Lanka Energy Managers Association The eight member states of SAARC (Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka) span a land area of 4,428,119 square kilometers with a population of 1,484 million people (2006 mid year population). As a region, in 2006, SAARC countries consumed 481 million tons of oil equivalents (toe) of commercial energy to produce a total Gross Domestic Product (GDP) of US$ 3.44 trillion. Among the eight nations, India consumed the most energy, 402.5 million toe, and contributed largely to the regional GDP, US$ 2.75 trillion. Pakistan and Bangladesh followed India with contributions of US$ 375.4 billion and 180.1 billion respectively, consuming 55 million toes and 18 million toe of commercial energy. India, Pakistan and Bangladesh, being geographically larger and highly populated (95% of the regions population lives in these three countries) compared with other member states

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uses 98.8% of regional energy consumption and produce 96.2% of the regional GDP. The regions GDP experienced an annual growth rate of 5.6% during the period 1995 to 2005. In 2007, Bhutan recorded the highest per capita GDP on Purchasing Power Parity (PPP) basis among member states, with a per capita GDP of US$ 4,862. Maldives and Sri Lanka followed with US$ 4,603 and US$ 4,265 respectively while Afghanistan recorded the lowest of US$ 733. The ASEAN region and the European Union are two regions with approximately the same land area as the SAARC region. But these two regions are far less populated than the SAARC, 566 million and 493 million respectively compared with 1,484 million of SAARC region in 2006. Furthermore, ASEAN and European Union regions have recorded higher per capita GDP figures of US$ 4,545 and US$ 31,020 in 2006 compared to US$ 2,318 of SAARC region. Present Status of Regions Energy Sector The SAARC region fulfils its energy requirement through fossil fuels, both imported and domestically produced, and renewable sources. The region as a whole has consumed 481 million toe of commercial energy in year 2006. Commercial energy consumption of the eight member countries and their per capita commercial energy consumption are as follows.

Coal, oil, natural gas and renewable sources supply the commercial energy needs of the regional countries. Except for India and Pakistan, all other countries heavily rely on a single form of energy. Sri Lanka, Afghanistan, Nepal and Maldives rely heavily on oil while Bhutan and Bangladesh rely on hydro power and natural gas, respectively. India and Pakistan have a better mix in their energy supplies.

India and Pakistan are the richest in terms of energy resources with the majority of coal and natural gas resources of the region being available within their territories. Being highly populated with a correspondingly higher energy use, energy needs of India and Pakistan are a lot more than what is locally available. Apart from the fossil fuels, the region has a vast hydropower potential. Due to geography, Nepal and Bhutan are the richest in hydropower potential. At present, Nepal and Bhutan export electricity generated in hydropower stations to India, fulfilling some of Indias electricity needs. Further exploitation of this would indeed, support the energy supplies, increasing energy security of the region. It is estimated that Pakistan and India have coal reserves of 185 billion tons and 90 billion tons, respectively. The proven reserves of Pakistan though are much lower and are about 2 billion tones. Government of Pakistan has decided to introduce coal into power generation along with the development of coal fields. Furthermore, industries in Pakistan have

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switched to coal fired kilns from furnace oil kilns, increasing the demand for coal. Both Indian and Pakistan coal industries would need to invest in new technologies to harvest the resources better and improve the quality of coal. It is calculated that at the present rate of exploitation, Indian coal reserves will be exhausted within the next 45 years. Afghanistan, Bangladesh, India and Pakistan have natural gas resources amounting to 95 trillion cubic feet (tcf). Natural gas production and consumption in India, Pakistan and Bangladesh are expected to grow. Transmission and distribution infrastructure is also growing along with the increasing number of natural gas users. Studies to investigate new natural gas reserves are being carried out by each country.

Among the regional countries, India and Pakistan account for the majority of oil reserves. India alone has almost 90% of the oil reserves of the region. Despite these oil reserves, India too depends heavily on oil imports. In 2005, 60% of the oil requirement of India was imported. Oil exploration activities are carried out across the region hoping to arrest this import dependence to some extent.

In the recent past, except in India, investments in refining capacities and technological upgrades in refineries have been overlooked, causing the oil sector of the region to lag considerably behind the rest of the world. Limitations in refining capacities have forced regional countries to import finished products, to some extent, instead of crude oil. This has adversely affected the economies in the SAARC region.

It is also important to draw our attention to the electrification levels of the SAARC countries, as electricity has become a vital energy source to meet day-to-day needs. Among the countries, Sri Lanka has the best electrification rate of 78% (2007) followed by Pakistan and India with rates of 60% and 56%. Electrification rates of Afghanistan and Nepal are as low as 20% and 25% while Bhutan and Bangladesh record figures of 40% and 42%. Low electrification level is a hindrance to the development activities of the region. Investments required for grid expansion, shortages in generating capacity and poverty are the main causes behind the low electrification levels.

Challenges to Growth in Energy Sector and Provision of Energy Services to People of SAARC Countries

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Energy sectors of SAARC countries face many challenges that hold back their growths as well as development of respective countries. Lack of technology, infrastructure and finance are major obstacles faced by the region. The region is rich with renewable energy resources. Though some forms are abundantly available, harnessing to the optimum level is hindered due to cost and technological barriers. Solar energy and wind energy are two such forms of renewable energy, which are abundantly available but least harnessed. Most potential sites for hydro power plants are located in remote areas where road access and power transmission facilities are not available. Lack of infrastructure and high development costs have caused cleaner and more efficient projects based on indigenous resources to be less viable and has become the main barrier in delivering energy from such projects.

Rising dependence on imported fuels is another hurdle to growth in the energy sector. As mentioned earlier, the region highly depends on imported fossil fuels to fulfil energy needs. High import bills paid by SAARC countries consume most of the export earnings resulting in delays in infrastructure development and developments in other forms of energy sources. Also, import dependency makes the region vulnerable in terms of energy security.

All the SAARC countries presently face difficulties in meeting their energy needs causing adverse effects in the economies, quality of life and social development. Development of locally available alternate fuels and promoting efficient use of energy will resolve this issue to some extent. In the long run, national and regional policies should be developed to promote and develop indigenous energy resources.

Lack of coherent energy policies, regulatory frameworks and competitive market environments in member countries are also obstacles for the development of the energy sector of the region. Prospects of Regional Energy Trade The first cross border electricity transfer in the region dates back to 1961, when Jaldhaka Hydroelectric Project of India supplied electricity to border towns of Bhutan. Since then India and Bhutan have been cooperating in developing hydroelectric projects and electricity infrastructure. The first major hydroelectric project in Bhutan, Chukha Hydroelectric Project with 336 MW installed capacity (commissioned in 1986), was initiated in 1974 with the assistance of the Government of India under a bilateral agreement to export the surplus to India.

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Confidence gained in Chukha Hydro Electric Project lead to the joint ventures between the two countries to develop Kurichhu Hydro Electric Project (60MW) and Tala Hydroelectric Project (1,020MW). Benefits reaped by India and Bhutan with the cross border electricity transfers are immense. Electricity export to India has earned a great amount of foreign exchange to Bhutan while Indias power shortages were relieved considerably.

Furthermore, India and Bhutan have signed agreements to develop Punatsangchhu-I hydroelectric Project (1,095MW) and studies are being carried out for many more projects with the objective of India importing a minimum of 5,000 MW of electricity from Bhutan by 2020. Another important characteristic of these developments is that they are being carried out under the clean development mechanism with expectations of arresting carbon emission levels of India.

Though, Indias involvement in development of Nepals electricity sector dates back to 1950s, first cross border electricity transfer between the two countries happened in 1971 with 5 MW. This figure gradually grew over the years to 150 MW by 2001. Nepal, despite being a country with a huge hydro potential, has an installed capacity of only 600MW. Studies have shown that projects of about 42,000 MW are economically feasible in Nepal. The main barrier at present for increased power transfer between India and Nepal is the limitations in transmission facilities. Developments in transmission network would help Nepal to export power to India during the wet season and import power from India in the dry months, during which time Nepal faces a shortage of about 100 MW. Identifying this, MoUs have been signed between the two countries to develop four 400/220kV transmission lines.

In terms of new power generation, the 750 MW West Seti storage Hydroelectric Project in Nepal is under the development with the idea of exporting power to the north of India. Furthermore, Budhi Gandaki Project (600 MW), Upper Karnali (300 MW), Arun III (402 MW) and Lower Arun (300 MW) are under the consideration of development in Nepal with the objective of exporting power to India. Sri Lanka and India are seriously looking at a 400kV HVDC 1,000MW transmission line between the two countries. The line would have an initial capacity of 500 MW and later another 500 MW would be added. This line connecting Madurai and New Anuradhapura substation is to be 385 km in length including a 30 km submarine cable. Though it is expected that this cable will mostly, carry power from India to Sri Lanka, the averse could also happen occasionally based on the seasonal variation and load profiles.

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There are possibilities for Bangladesh to tie up with India for power transfers. Western grid of Bangladesh and eastern region of India can look into cross border transfers, which will benefit both countries immensely. The electricity peak demand time difference and the weekly and seasonal holiday difference make it possible for the two countries to exchange power. This allows Bangladesh to use power from Indian hydro and coal power plants as base load instead of more costly gas plants, and Bangladesh to contribute to India during peak hours using gas fired power plants. This way, Bangladesh could add more diversity to their electricity supply mix. Apart from electricity, India supplies 100% of the petroleum products consumed in Nepal and Bhutan. Furthermore, Indian Oil Company is actively involved in petroleum products retailing and storing in Sri Lanka adding energy security to Sri Lanka.

SAARC region is surrounded by countries that are rich with energy resources compared to the SAARC countries. Energy supplies from surrounding countries will greatly increase the energy security of the SAARC region. Since 1990, pipelines to import natural gas from Iran, Myanmar and Turkmenistan to India have been considered. Recently, Iran and Pakistan have agreed to go ahead with the pipeline from Iran up to Pakistan and Indian participation on this line would improve the economics of the project.

While striving for diverse energy supplies and interconnected transmission and distribution networks to improve energy security, the regional countries should work towards improving energy efficiency at the points of supply and use. Working out a regional policy for efficient use of energy, introducing novel technology to where conventional technologies are used such as in cooking, promoting energy efficient appliances and introduction of a building code system and a labeling system for appliances are some measures the eight countries can work together as a region. Soft options such as knowledge sharing will also have a significant role to play in the overall energy sector development in South Asia when moving towards more secure and cost effective energy supplies.

Economic Relationship among SAARC Nations

The South Asian Association for Regional Cooperation or SAARC was created to promote economic integrity and cooperation among 7 South Asian nations namely India, Bangladesh, Pakistan, Bhutan, Nepal, Maldives, and Sri Lanka. The Association was formed in 1985 with the aim to ensure social and economic development of the member countries. However, over the years it has been seen that SAARC mainly worked towards development of economic relationship among the SAARC nations. Attempts are also on to further trade relations with the member nations of ASEAN (Association of South East 17

Asian Nations) and the European Union. In spite of lying in the vicinity of one another, trading activities were restricted among the SAARC nations. Over the years, there has significant improvement in thetrade relations among the seven SAARC members. The focus has been shifted to get access to the markets of the other members. Methods have also been devised to attract foreign direct investments to strengthen economic infrastructures of the SAARC nations. All these initiatives point towards an improvement in the economic relationship among the 7 South Asian countries. Despite the sincere attempts of the Association, there are several factors that stand in the way of economic integrity among the SAARC nations. The clashes between India and the neighboring countries have prevented the SAARC members to make the most of the economic benefits derived from the Association. This has prompted the South Asian countries to go for bilateral trading activities instead of getting involved in multilateral trade agreements. However, the Association is expected to take more proactive steps to improve the economic relationship among its members. Besides devising policies for economic integration, SAARC is supposed to function as a medium to facilitate discussions among the South Asian nations. Seminars and conferences are going to be helpful measures for promoting cross border trade and investment. As an aftermath of globalization, Indian government has resorted to open trade policy. The economic reforms of early 1990s have opened an array of challenges for the Indian entrepreneurs. The growth rate of the Indian economy was around 7% during the period from 1994-1997. The inflow of foreign fund also recorded substantial increase. All these resulted from the flexible economic policies adopted by the Indian government. The economic prosperity of India prompted the other SAARC members to seek resort to international trade as a platform for economic growth. Both Sri Lanka and Nepal have shown their interests to enhance intra regional trade. Bangladesh is also following the same trend. With the increased intra regional trading activities, the economic relationship among the SAARC nations is bound to be stronger in future.

Foreign Minister holds bilateral parleys with SAARC counterparts

Foreign Minister Rohitha Bogollagama held bilateral discussions yesterday (30 July 2008) with his SAARC colleagues from Bangladesh, Bhutan and Pakistan, who have arrived in Colombo to attend the 15th SAARC Summit. The Foreign Affairs Adviser of Bangladesh, Dr. Iftekhar Ahmed Chowdhury was the first Minister to call on Minister Bogollagama at the newly refurbished Republic Building of the

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Foreign Ministry. Dr. Chowdhury thanked Sri Lanka for the excellent arrangements that have been made for the SAARC Summit and expressed the hope that it would be a resounding success. Reviewing bilateral relations, he referred to the recent inauguration of direct air links between Dhaka and Colombo by a Bangladeshi private airline, "Best Airways" as a tangible manifestation of the SAARC objective of promoting connectivity among member states. Minister Bogollagama quipped that the twice weekly air service is the "best thing" that has happened recently in bringing the peoples of Sri Lanka and Bangladesh closer together. The Sri Lankan Foreign Minister thanked his Bangladesh counterpart for the generous donation of the Sacred Hair Relics of Lord Buddha, as a symbol of lasting friendship between the two countries. He emphasized the need for a sustained political dialogue, which would enable the bilateral relationship to be further strengthened. Minister Bogollagama briefed Dr. Chowdhury on the recent successful restoration of democracy to the Eastern Province and the ongoing efforts to free the remaining pockets in the North from the LTTE. Both Ministers also exchanged views on the agenda of the SAARC Council of Ministers meeting scheduled to begin today (31 July 2008), including the proposed Colombo Statement to be issued on food security and the need for a more viable interaction between SAARC and Observer States. During the call by the Foreign Minister of Bhutan Lyonpo Ugyen Tshering on Minister Bogollagama, the latter thanked the Bhutanese Minister for the warm hospitality extended to him and his delegation during their recent visit to Bhutan. He also congratulated Bhutan on the successful transition to a parliamentary democracy. Foreign Minister Tshering remarked that his visit to Sri Lanka was the first ever visit by a ministerial delegation abroad after the recent parliamentary elections. He also thanked Sri Lanka for the generous assistance extended to Bhutan, particularly in the fields of health and education. In this context, he highlighted the granting of placements for 65 Bhutanese students to pursue medical studies in Sri Lanka. Minister Bogollagama shared his views with the Bhutanese Minister on some important items on the SAARC Agenda for the Summit, including food security, and expressed the hope that South Asia would be transformed into the Granary of the World, in keeping with the theme of the Colombo Summit [WINDOWS-1252?] "SAARC: Partnership for our People". He also emphasized the need for the SAARC Secretariat to operationally sectoral areas of cooperation. The Bhutanese Foreign Minister briefed Minister Bogollagama on the vast hydro power potential available in Bhutan and plans to increase the electricity generating capacity from the present 1,400 MW to 10,000 MW in the next few years, which would enable Bhutan to export its surplus power to neighboring SAARC countries. He also informed his Sri Lankan colleague that he proposed to stay back in Sri Lanka for a few days after the conclusion of the SAARC Summit, to study the parliamentary system

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and procedures. Thereafter, the Minister of Foreign Affairs of Pakistan, Makhdoom Shah Mehmood Qureshi called on Foreign Minister Bogollagama, and said that he was on his first ever visit to Sri Lanka, a country that was very close to the people of Pakistan. He conveyed his best wishes to Sri Lanka for a highly successful SAARC Summit. He also expressed Pakistan's steadfast commitment and support for Sri Lanka's sovereignty and territorial integrity. Minister Qurush highlighted the fact that Pakistan's policy of friendship and cooperation with Sri Lanka has been always consistent, irrespective of the political regime in power. Minister Bogollagama thanked Pakistan for the unflinching support and assistance given to Sri Lanka at all times in safeguarding the country's sovereignty, territorial integrity and its fight against terrorism. Given the closeness of the political ties between the two Protection Agreement, which would give a major fillip to a long term economic partnership? Both Ministers also agreed to convene the Joint Economic Commission, that is long overdue which could take up these issues for expeditious implementation. The two Ministers also exchanged views on the agenda items of the SAARC Summit and stressed the importance of SAARC becoming more result oriented.

Keys and impediments to SAARCs progress

The ASEAN countries have a more graded pattern in terms of size, political stability and economic development in comparison to SAARC countries. The older members of Malaysia, Thailand, Indonesia, Philippines, Singapore and Brunei blend with the newer members including the rapidly developing Vietnam and Laos, and the still struggling Cambodia and Myanmar. SAARC countries despite their overarching cultural similarities vary significantly from one another in terms of size, stability and economic development.

Although dwarfed by the enormity of Indias 1.1 billion people, Pakistan and Bangladesh are not small countries by other comparisons. At 164 million and 159 million respectively, they are the sixth and seventh largest countries in the world. All three account for 95% of the total population of the SAARC member countries, with the remaining five countries making up the balance 5%. At 1.5 billion, the eight South Asian countries account for 22% of the worlds population and 38% of Asias population. Excluding Chinas 1.3 billion people, the South Asian countries have more population than all the other Asian countries together.

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India stands apart from the rest not only on account of its size but also in terms of national consolidation, a consistently constitutional polity, and the strong foundation for economic take-off. The effects of the partition of British India would seem to have been grossly uneven with India assimilating most of the benefits while Pakistan and its offshoot Bangladesh ended up with all the negatives. Afghanistan is in a state disrepair of its own, and Nepal is navigating its transition from old monarchy to neo-Maoism. Bhutan and Maldives are quiet and soporific while Sri Lanka, once a model both as a colony and for its smooth passage to independence, is showing its creative capacity not to prosper but to selfdestruct.

The commonplace explanation for SAARCs ineffectiveness and underachievement is the nature of the bilateral relationship between India and Pakistan. The fact of the matter is that the two countries have been consistently focused on improving their relationships over the last two decades after the meaningless tit-for-tat nuclear weapons testing in 1998 and the brief standoff in Kashmir around the same time. Since February 2004, the two governments have been holding composite dialogues involving foreign ministry officials to address a number of bilateral issues. The fifth dialogue in that series was concluded last week in Islamabad, despite earlier fears that the July 7 bomb attack on the Indian embassy in Kabul might scupper the talks.

The talks touched on a number of issues including terrorism, water-related disputes, Kashmir, economic cooperation, confidence building measures (CBMs) such as crossborder truck and bus operation services and drug trafficking, as well as friendly exchanges in several other fields. India has been expending resources on similar initiatives Entrepreneurial Development Centers, English Language Training Centers, providing training for ASEAN diplomats etc. - to promote friendly relationships among ASEAN countries. The key to moving SAARC forward is for India to enthusiastically promote and for others to willingly cooperate on such initiatives on a programmatic basis at the multilateral level within SAARC.

The real stumbling block to moving SAARC forward is not so much the nature of the relationship between India and Pakistan but the global projection of the hangover from their old rivalry. They continue to rival over the relationship each has with the US, China, Europe and even Sri Lanka. India gets upset when Pakistan provides weapons and military assistance to the Sri Lankan government to fight the LTTE. Pakistan plays a contradictory role in Afghanistan with sections of Pakistans establishment and society opposing the Taliban in Afghanistan and other sections supporting the Taliban and this has immediate ramifications for its relationship with India, not to mention the implications for the government in Afghanistan.

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India is already concerned about the US military aid to Pakistan to fight the Taliban being used in procuring weapons to enhance Pakistans military balance with India rather than to engage the Taliban in Afghanistan. This weeks decision of the Bush Administration to use $230m of the US $300m military funding to Pakistan to upgrade its ageing F-16 fighter jets is not going to please India at all. Washingtons decision has been linked to the visit there next week by the new Pakistani Prime Minister Yosuf Raza Gilani. At the same time, in Colombo, President Musharaff will have to use his charm to distract the Indians from Washingtons gift of fighter jets to Pakistan. It would be counterproductive for India and Pakistan to pursue composite dialogue with each other on the one hand, and persist in conflicting international relationships with other countries at the same time. The composite dialogue represents the way to the future and reflects not only the interests of economic elites in both countries but also the desire of a majority of Indians and Pakistanis. The conflicting international relationship, on the other hand, is a legacy from the past and serves the interests of fundamentalists and extremists in both countries. SAARC could be the framework for fighting fundamentalism and extremism in all member countries and in the process could serve its historic purpose of promoting the common interests of all South Asians regardless of the bilateral relationships between their governments.

Methodology

Energy sectors of SAARC countries face many challenges that hold back their growths as well as development of respective countries. Lack of technology, infrastructure and finance are major obstacles faced by the region. The region is rich with renewable energy resources. Though some forms are abundantly available, harnessing to the optimum level is hindered due to cost and technological barriers. Solar energy and wind energy are two such forms of renewable energy, which are abundantly available but least harnessed. Most potential sites for hydro power plants are located in remote areas where road access and

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power transmission facilities are not available. Lack of infrastructure and high development costs have caused cleaner and more efficient projects based on indigenous resources to be less viable and has become the main barrier in delivering energy from such projects.

Foreign Affairs Adviser of Bangladesh, Dr. Iftekhar Ahmed Chowdhury was the first Minister to call on Minister Bogollagama at the newly refurbished Republic Building of the Foreign Ministry. Dr. Chowdhury thanked Sri Lanka for the excellent arrangements that have been made for the SAARC Summit and expressed the hope that it would be a resounding success. Reviewing bilateral relations, he referred to the recent inauguration of direct air links between Dhaka and Colombo by a Bangladeshi private airline, "Best Airways" as a tangible manifestation of the SAARC objective of promoting connectivity among member states.

Analysis and discussion

Since 1975, Bangladesh has sought close relations with other Islamic states and a prominent role among moderate members of the OIC. In recent years, Bangladesh has played a significant role in international peacekeeping activities. Several thousand Bangladeshi military personnel are deployed overseas on peacekeeping operations. Under UN auspices, Bangladeshi troops have served or are serving in Somalia, Rwanda, Mozambique, Kuwait, Bosnia, and Haiti, and units are currently serving in Kuwait and East Timor. Bangladesh responded quickly to President Clinton's 1994 request for troops

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and police for the multinational force for Haiti and provided the largest non-U.S. contingent. India is Bangladesh's most important neighbor. Geographic, cultural, historic, and commercial ties are strong, and both countries recognize the importance of good relations. The government and tribal insurgents signed a peace accord in December 1997, which allowed for the return of tribal refugees who had fled into India, beginning in 1986, to escape violence caused by an insurgency in their homeland in the Chittagong Hill Tracts. The implementations of all parts of this agreement have stalled, and the army maintains a very strong presence in the area. The army is increasingly concerned about a growing problem of cultivation of illegal drugs. Bangladesh enjoys warm relations with Pakistan, despite the strained early days of their relationship. Landmarks in their reconciliation are: An August 1973 agreement between Bangladesh and Pakistan on the repatriation of numerous individuals, including 90,000 Pakistani prisoners of war stranded in Bangladesh as a result of the 1971. China traditionally has been more important to Bangladesh than the former U.S.S.R., even though China supported Pakistan in 1971. The former Soviet Union supported India's actions during the 1971 Indo-Pakistan war and was among the first to recognize Bangladesh.

Finding
We gather much information for the foreign relations between Bangladesh & SAARC ASEAE Countries. SAARC countries are Bangladesh, India, Pakistan, Nepal, Bhutan, Maldives, China and Sri Lanka. We discus more information about these CountriesBangladesh is currently chairman of the Group of 8 Developing Countries. Bangladesh has served in the chairmanship of SAARC and has participated in a wide range of ongoing SAARC regional activities.

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India is Bangladesh's most important neighbor. Geographic, cultural, historic, and commercial ties are strong, and both countries recognize the importance of good relations. The largest and most visible symbol of bilateral amity is the Bangladesh-China "Friendship Bridge," completed in 1989 near Dhaka, as well as the extensive military hardware in the Bangladesh inventory and warm military relations between the two countries. In the 1990s, the Chinese also built two 210 megawatt power plants outside of Chittagong; mechanical faults in the plants cause them to frequently shut down for days at a time, heightening the country's power shortage. Sri Lanka and India are seriously looking at a 400kV HVDC 1,000MW transmission line between the two countries.

Conclusion

The primary aim of the visit of External affairs minister Pranab Mukherjee was to extend invitation to the Bangladesh leadership for the forthcoming SAARC summit. At the same time, it was also to convey the message that India appreciates the steps taken by the caretaker government and does not consider it as untouchable. Sensing the positive approach of the caretaker government towards the menace of terrorism India has tried to seek the commitment of Bangladesh to fight it. India also tried to remove a major irritant in

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bilateral relations by offering a duty free import of readymade garments for which Bangladesh has been clamouring for quite some time. But, like the international community the Indian euphoria about the clean new administration also gets tempered by the fact that the Bangladesh military is playing a pivotal role behind the scenes. Moreover, if the elections are not held soon, both the BNP and the Awami League will get restive. The country might once again see return to agitational politics. This time both the political rivals may launch their own protest programs. To avoid this possibility of restive political developments in its neighbourhood India has said that it expects early transfer of power to an elected government in Bangladesh.

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"Indian economic growth rate eases". World Almanac: Nation's with Largest Armed Forces "US President Barack Obama hails India as global power Indian Navy tsunami aid highlights country's role as 'super regional power The EU's relations with India - Overview India and Japan 26

7. India-Israel Partnership 8. Mexico International Relations 9. India, Brazil ink nine agreements 10. India & Asean

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