Asian Highway: Bangladesh Perspective

Asian Highway Genesis Evaluation Recommendation

Organized by….Asif Ishti

The main concern of a nation in present world is to how to expand their trade, both within and out

side the region. Bangladesh being the developing country, needs to seize every opportunity to develop her trade

and commerce relation both within regional and outside regional countries. The movement of regional co-

operation, particularly in the field of economy, has assumed great importance in recent years. Co-operation can

be facilitated to a great extent by the provision of appropriate regional infrastructures including efficient and

easy transportation and communication networks. The countries of the South Asian region would gain in

numerous ways through enhance regional co-operation in land transport and communication.

Asian Highway (AH) is the most important project of United Nations (UN) Economic and Social

Commission for Asia and Pacific (ESCAP) for rapid increase in trade and commerce in the Asia and Pacific regions.

AH will bring a new horizon in the communication between Asia and Europe.

To get maximum benefit from AH, member country needs to provide transit facilities to each

other. Recently, the AH through Bangladesh has created a hot topic of debate among the politicians,

intellectuals and columnists. People of the Bangladesh seem to have divergent opinions about the route of AH

through Bangladesh as well as allowing transit facilities to India. For the better utilisation of AH and economic

benefit of Bangladesh, this issue needs to be solved.

Genesis of Asian Highway The Asian Highway network is a network of 141,000 kilometers of standardized roadways

crisscrossing 32 Asian countries with linkages to Europe. It became one of the three pillars of Asian Land

Transport Infrastructure Development (ALTID) project, endorsed by ESCAP Commission at its forty-eight session

in 1992, comprising Asian Highway, Trans-Asian Railway and facilitation of land transport projects. A total of

US$26 billion has already been invested in the improvement and upgrading of the Asian Highway network.

However, there is still a shortfall of US$18 billion. UNESCAP secretariat is now working with its member countries

to identify financial sources for the development of the network to improve their road transport capacity and

efficiency.

The Birth of Asian Highway

The UN Economic Commission for Asia and the Far East (ECAFE) took the initiative in 1959 for the

AH project with the aim to link Asia to Europe. The UN Development programme (UNDP) provided necessary

assistant for the progress of this project. With the funds of UNDP, the AH Transport Technical Bureau was

established in 1968 which became responsible for the project. However, the suspension of the UNDP special

assistance funds in 1975, the Transport and Communication Division of ESCAP has been responsible for the

project. At the end of 1980s, there was a renewed interest in land transport. As a result, China in 1988 and

Myanmar and Mongolia in 1989 joined the AH projects.1 This opened up possibilities of new AH routes. Seven

Asian Central countries joined with AH project in 1996. Today total members of AH project is 32. Today, the AH

networks covers a total length of approximately 141,000 kilometres of international roads.

1.Economic and Social Commission for Asia and the Pacific, A Study for the Development of the Asian Highway Network, (New York :

UN 1995), pp. 1.


Importance of Asian Highway

In early 1980s, for the development of economic, trade and tourism in the Asia and the Pacific, a

stronger overland transport communication was needed among the countries in the regions. The European and

some countries of the Association of South Asian Nations (ASEAN) though developed their road

communications, but most of the South Asian countries yet to develop it. So, for a better economic and cultural

relationship between the Asia and the Pacific, the responsibility of AH project was taken by ESCAP. This project

will open up a new horizon for increased trade between South Asia and Myanmar as well as with Northern

Thailand and between South Asia and South China via Myanmar. This will provide Bangladesh, Nepal, Bhutan,

India and Myanmar an access by overland transport to the fast growing areas of the ASEAN in the east and

Europe in the west.2

In the development of communication system of the Asia, the Central Asian Muslim Republic (part

of former Soviet Union) increased the importance of AH. The natural resources and raw materials of this region

are important for the advanced industrialized countries of the world. To collect raw materials and other

resources from these region, the AH is very much important to the South and East Asian countries. For all these

reasons which are basically development in nature demands the construction of AH.

Route of Asian Highway

According to revised major principles of AH, the network includes a southern route connection

between Turkey and South East Asia via Iran, Pakistan and a northern route connection between South East Asia

and Europe via China, Asian Republic, and the Russian Federation. The AH network of about 65,000 kilometres

will be reviewed and verified keeping in mind the recent development of the region and the latest economic

trends. The new AH will connect capitals, important economic and industrial centres and international container

terminals.

There are total five international highways and thirty-seven regional highways in the AH networks,

which will pass through 25 countries.3 The International highway will originate from Istanbul and will reach

Tehran. From Tehran it will be divided into parts. One highway will reach Lahore via Qandahar and Islamabad.

Another will reach Lahore via Quetta without entering Afganistan. From Lahore the highway will connect New

Delhi. From New Delhi, it will be again divided into two parts. One highway will cross Agra and Calcutta and then

enter Bangladesh at Benapole. Another will connect Kathmandu and via India it will enter Bangladesh at

Banglabandh. From Bangladesh it will enter North Eastern part of India through Sylhet – Tamabil route. From

there it will cross Imphal of Monipur and enter Myanmar at Tamu, from where it will connect Yangon and

Bangkok. From Bangkok the highway will be again divided into two parts. One will connect Kualalumpur and

then Singapore, and another will enter Cambodia and will connect Vietnam and Laos.

Asian Highway through Bangladesh

In Bangladesh, the AH will enter from two directions. One of them will enter at Benapole from

Calcutta and will reach Dhaka via Jessore and Bangabandhu Bridge. Another will enter Bangladesh at

Banglabandh from Kathmandu via India and will reach Dhaka via Dinajpur, Bogra and Bangabandhu Bridge. From

Dhaka, the AH will again enter India via Sylhet - Tamabil route.

2.M. Anwarul Haq, ’25 Countries for implementation of AH project’, The Daily Star, (Dhaka, 3 January 1997). 3.M. M. Rezaul Karim, ‘Asian Highway, Trans Asian Railway and Transit’, The Bhorer Kagoj (9 January 1997).


Importance of Asian Highway

Regional Level : Bangladesh - ASEAN

Bangladesh can be considered a ‘Land Bridge’ between ASEAN and SAARC.4 A number of inter-

regional issues then are likely to crop up between the two regional entities. In ASEAN’s past calculation, South

Asia including Bangladesh, did not feature as a priority area; but the situation may now be changing, as ASEAN

currently seems to look westward. Bangladesh - Myanmar geographical proximity provides the opportunity to

Bangladesh to get the access into ASEAN through BIMSTEC. As the meeting of BIMSTEC, held in Thai capital

Bangkok on 07 August 1998, has decided to design its activities to form a bridge linking the ASEAN and SAARC.5

The AH will provide Bangladesh a new opportunity for increased trade within the Asian sub region as well as

with the member countries of AH. Bangladesh will also earn foreign currencies by providing transit facilities to

the neighboring and other member countries, as it is becoming a gateway between the South and East Asia. As a

result, if the project of AH is implemented then it could bring revolutions to the live of poor as well as it will open

up a new horizon in the development.

Regional Stabil ity

Mutually beneficial economic cooperation in South Asia through the Asian Highway would

strengthen regional self-sufficiency, which in turn would promote regional peace, security and stability. As long

as the nations of South Asia remain poor they remain vulnerable to dictates and pressure of other regional

groupings and advanced countries. The present state of trade in South Asia, which is biased towards India, is not

at all conducive to regional peace, stability and security. Increase in intra-regional trade and cooperation would

also present a better image of the region as a destination of foreign investment.

Improvement of Physical Infrastructure

The Asian Highway would also provide necessary impetus to regional infrastructure projects such

as the Chittagong and Mongla Ports in Bangladesh. Asian Highway will bring Bangladesh the chance to develop

or repair or even build highway with outside financial & technological assistance. It has been estimated that if

the transit route to Nepal is made operational Bangladesh’s exports to Nepal could increase by 50-100 million

dollars annually6. Nepal not only could increase its exports to Bangladesh, but also to other destinations using

the Mongla port. Similarly the Chittagong seaport, may become the gateway to the vast hinterland consisting of

Southern China, Bhutan, Nepal, Eastern India and Myanmar. Due to its strategic location Chittagong may

emerge as the trading hub of its vast land-locked hinterland that needs an out let to shipping lanes for

international commerce7. Thus Chittagong may become as important as Singapore by providing the gateway to a

4.Dr. Abul Kalam, ASEAN 10 : Bangladesh and SAARC, The Daily Star, (17 June 1997). 5.The Daily Star, (08 August 1998). 6 Dr. M. Rahamatullah, Centre for Policy Dialogue – United Nations Economic and Social Commission for Asia and the Pacific Seminar

held at Dhaka, October 1996. 7 Haroun Er Rashid, Commentry in The Holiday 5 March 1997.


huge market. A fully operational Asian Highway can also contribute to the development and modernization of

the road and transport industries in Bangladesh.

Revenue Earnings through Transit of Goods Bangladesh has a huge trade deficit with India. The ratio is approximately 1:30. United Nations

Economic and Social Commission for Asia and the Pacific has suggested that the Asian Highway could generate

substantial foreign exchange earnings through transit and other service fees thereby reducing the trade deficit

between Bangladesh and other countries particularly with India. With the increase of transportation of goods

through Bangladesh, the revenue earns by the Bangladesh government will increase proportionately.

Bangladesh will earn taka 2000 crore every year only by allowing transit facilities to India.8 The amount of

transportation cost or taxes that will be imposed could be decided through mutual and multilateral negotiations

between the member countries of AH.

Reduce Excessive Dependence on the West Traditionally and historically, South Asian countries are dependent on western technology and

capital. It is estimated that 40 to 75 percent of imports of the region are financed through external assistance.9

Excessive dependence on the highly industrialized countries and aid agencies such as the World Bank, the Asian

Development Bank, the International Monetary Fund, reduces the bargaining capacity of the region and makes

the economies vulnerable. Bangladesh for instance is dependent on Europe and America for export of ready-

made garments and frozen food. The American and European markets alone contributes to 40 percent and 55

percent10 respectively of export earnings through ready-made garments. As a result the Government of

Bangladesh reportedly faces acute pressure in distribution of gas blocks to American companies. Recently the

European Union imposed ban on import of frozen foods from Bangladesh. These demonstrate the vulnerability

of the South Asian economies in general and of Bangladesh in particular. The Asian Highway would allow entry

of Bangladesh exports to the countries of West, East and South East Asia thereby reducing dependence on

America and Europe. It would open up a huge market in Asia and promote regional self-sufficiency.

Economic Development The Asian Highway will allow Bangladesh to import raw material and technology at a cheaper rate

from within the region and by value addition increase its export earnings. Modern container technology allows

perishable goods to be stored safely for extended periods and carried over long distances, an opportunity which

Bangladesh could exploit to increase its perishable exports to Bhutan, India, Nepal, Pakistan and the Islamic

Republic of Iran and beyond. This would attract foreign direct investment (FDI) in agro-processing industries.

Bangladesh’s exports within the Asian region is very small and a huge potential exists to exploit those markets11.

Bangladesh should attempt to capture a part of the South East Asian market. Various studies have supported

the conclusion that the improvement and optimal utilization of existing land transport network will increase

intra-regional trade in South Asia.

8.Dr Mohiuddin Khan Alamgir, State Minister for Planning, in an interview, The Daily Jono Kantha, (08 September 1999). 9Abul Ahsan, SAPTA: In Broader South Asian Perspective, discussion paper presented at the national seminar on SAPTA, Dhaka 1994,

page 4. 10Boosting Bangladeshi garments export to Japanese Market, Iftekhar Ahmed. The Independent 14 August 1998. 11 Statistical Pocket Book of Bangladesh 1997.


Excellent Communication & Increase of Migration Asian Highway will open a new vista in the world communication network. Because 32 countries

are in this network the people of Bangladesh will get an easy access to those countries. So that easy movement

of people & commodities can be possible. In that case both immigration & emigration will be higher which will

increase our remittance.

Job Opportunity Once the transportation sector will improve with the improvement of regional and international

communications, the unemployment problem of Bangladesh will be reduced. Job opportunity in the field of

transportation sector, business sector, customs et cetera will gradually reduce the poverty, the long outstanding

problem of Bangladesh.

Tourism Naturally Bangladesh is a beautiful country with rich culture, heritage and history. After the

independence, this sector was neglected due to communications difficulties and lack of investment. With the

improvement of communications due to AH, tourism industry of Bangladesh will be developed. Thus this

industry will definitely contribute major share in the economy of Bangladesh.

Development of Trade

With the improvement of road communications within the regional countries as well as between

the member countries of AH will help to increase the trade and commerce of Bangladesh. Once the AH will be

constructed, the transportation cost of goods will be reduced; and it (AH) will open a new horizon in trading

with Central Asian states and ASEAN countries.

Foreign Investment

With the development of communications, foreign investment in the sector of mineral, fisheries,

handicrafts will increase. So long, due to the transportation cost and other difficulties, these potential economic

sectors were got less importance. As Bangladesh is considered a land bridge between the ASEAN and SAARC,

both the sub regional countries are increasing their interest in Bangladesh.12 Recent visit of Finance Minister in

United States of America (USA), has drawn the attention of foreign private investors and USA alone planned to

invest nearly $ 3.5 billion.13

Economic Exploitation Through Seaports Both the sea ports (Chittagong and Mongla) of Bangladesh will provide a good amount of foreign

currency when land locked countries like Nepal and Bhutan will get benefit of AH networks. By giving only the

port facilities, Bangladesh will earn $ 75 million (by charging 5% levy) every year.14

12. Bangladesh-Myanmar Relation, Bangladesh Institute of International and Strategic Studies, Volume 19, Number 4, (1998). 13.The Financial Express, (11 October 1999). 14.Mizu Rahman, Opposition Parties to Stop Transit, Robbar, (Dhaka, 08 August 1999).


Others Bangladesh could develop trade with the neighboring countries by utilizing the AH network

facilities. If India permits the transit facilities, which will help Bangladesh to improve trade relations with Nepal,

Bhutan and North Eastern province of India. As mentioned earlier that Bangladesh is the gateway between the

SAARC and ASEAN, therefore, the pattern of trade of Bangladesh indicates that the country had more

favourable trading within the ASEAN area, than in the SAARC region. Bangladesh may get closer to the ASEAN

by replicating their development model with an export led growth, based on a labor intensive approach and an

extensive use of indigenous raw materials. If transit is provided to India and India in turn provides transit to

reach Nepal and Bhutan, then the security tension will be reduced.

In a word, Asian Highway can give Bangladesh the advantages in communication, economy, trade

& commerce, education, medical, regional cooperation, cultural diffusion & of course in remittance.

Disadvantages of Asian Highway

External Vulnerabil ity – The India Factor Like most other states of the modern World, Bangladesh is vulnerable to external threats. External

threats to national security of one state originate from the policies of other states. In case of Bangladesh, for

clear reasons of geo-politic, most of the country's threats to security, perceived or real, originates from the

policies of India, the big and advantaged neighbor, which literally enlocks the country.15 Bangladesh's external

vulnerabilities are more or less akin to those of the Third World countries in general.

Another important trepidation is military invasion by India in 7 sisters through Bangladesh. India

needs transit to control and maintain the law and order situation in the North Eastern province against

insurgency movement. If the military movement is carried out through Bangladesh to North Eastern province of

India, then those insurgents may become hostile against Bangladesh, and at the same time it would have

adverse effect on the sovereignty of Bangladesh. But a strong checking up of vehicles in the border & also a

mutual agreement can reduce this threat.

Counter Insurgency All the North Eastern States of India are faced with Insurgency. The United Liberation Front of

Assam (ULFA) the Mizos, Nagas, TNV in Tripura are a few of the insurgencies. Bangladesh remains neutral in the

conflicts. However it fears that if India were allowed transit facilities it would use the routes in its anti-insurgency

campaign. Thus Bangladesh would become involved in the insurgency. Though the treaty may exclude

movement of all types of military equipment, supplies and persons, however clandestine movement cannot be

ruled out.

15.Iftekheruzzaman, 'Political Instability, External, Vulnerability, Underdevelopment: The Vicious Circle of Bangladesh' Development,

Politics and Security – The Third World Context. pp. 56.


Terrorism If Bangladesh does become indirectly involved in the insurgency in North East India through

extension of transit facilities to India then it will become a logical target for terrorist attack. Chittagong, which is

the lifeline of the country, would particularly become vulnerable to terrorist attacks. The country would be

unnecessarily involved in an expensive low intensity conflict. Not only that, the enemies of Bangladesh will get

an easy access to intrude & create instability in the country.

Bangladesh-China Relationship

Bangladesh is maintaining a good relationship with China. If transit is provided to India & if India

use this way to pressurize China militarily by providing weapon, food & daily necessities to their soldiers who are

in India-China border, then this relation may deteriorate.

Drug Trafficking 'The Golden Triangle' comprising of Myanmar, Thailand and Laos is one of the major producers of

illegal drugs. The drug traffickers will use the Asian Highway for supplying drugs to the European Market.

Moreover the domestic market in Bangladesh would also be saturated with drugs. This would create social and

security problems in Bangladesh.

Prostitution Through Asian Highway everyday a large number of container carrier trucks will pass. So that

prostitute centers may establish by the side of the Asian Highway in the major economic areas for the truck

drivers. This will make a security problems for our women and also a social insecurity & disturbance.

Cross Border Movement of Il legal Immigrants

In the near future Bangladesh is likely to emerge as a developing country. The World Bank in a

recent report has assessed that Bangladesh will become an affluent country by the year 2050. Provided political

stability prevails in the country, the pace of development in Bangladesh may be faster than other regions due to

its homogeneity. Even today Bangladesh offers better standards of living than many of the surrounding states of

India. The disparity between the regions may lead to illegal movement of immigrants.

Lack of Manpower in Law Enforcing Forces

Maintenance of law and order in the Asian Highway will be the responsibility of the country

through which the highway passes. At present the Bangladesh police lacks resources to take on such a large

task. The economy of Bangladesh may not allow substantial expansion of the police force immediately.

Spreading of Diseases

Various infective diseases may spread in Bangladesh because of Asian Highway. Through Asian

Highway many types of people will enter Bangladesh for which diseases can spread.


Losing Local Market

If transit is provided, Bangladesh market is likely to be flooded by the foreign goods, which would

have adverse effect on domestic products. The production companies have to face an extreme competition with

the companies of our neighbor countries. So that we may loose our local market.

An Analysis from Security & Development Perspective

Bangladesh - India By keeping an eye on the future development of Bangladesh and analyze the AH on broader sense,

it will definitely benefit Bangladesh from many ways. If Bangladesh provide it then there is no doubt that she will

be benefited for the development of her socio-economy. The efficient and reliable transports and

communications system will create an opportunity for Bangladesh to participate in the globalization process.

But India can try to get a transit through Bangladesh to control the law and order situation in the

North Western Province against insurgency. Opposition parties took this issue and protest against the ruling

government. Though it is an old issue and all the previous governments of Bangladesh also supported this

directly or indirectly. But there is an inland water route, which is now being used by India for carrying goods.

Using this route by the India, the security and sovereignty of Bangladesh has not weakened or threatened so far.

Therefore, there are no strong justifications, which can hamper the security and sovereignty of Bangladesh by

providing transit facilities to India.

The business community of Bangladesh had sad experience with bigger partners in SAARC,

especially India. The mounting trade imbalance with India has been worrying the managers of the economy of

Bangladesh. They failed to remove the tariff and non-tariff barriers to reach their products to Indian markets.

India has been giving cold shoulder to the demands of the weak partners. But as Bangladesh is considered a land

bridge between the ASEAN and SAARC, a number of inter-regional issues are likely to crop up between the two

regional entities. As ASEAN countries are gradually increasing their interest towards Bangladesh, therefore,

threat from India especially on economy may be reduced in future.

Bangladesh - Myanmar

Bilateral relation has been improved after the conference held on 04 October 1999 between

Commerce Minister of Myanmar and Bangladesh. In that conference they have talked on the construction of a

bridge on River Naaf for easy interaction between the two countries. It was also decided that both the countries

would improve their road infrastructure on their respective sides to introduce direct road link across the Naaf.

With this it is assumed that Myanmar is likely to accept the proposal of AH through Teknaf - Yangon as per the

basic principal made by the ESCAP.


Suggestion/Recommendation Bangladesh and Myanmar bilateral relations as it is improving day by days, and in recent

conference, both the countries were talked on the construction of a bridge on River Naaf to introduce direct

road link between the two countries. Therefore, it is a high time for Bangladesh to solve the Teknaf - Yangon

route of AH.

To ensure better and effective use of AH, Bangladesh needs to have such agreement first with her

big neighbour India. Without this, Bangladesh cannot have such transit facilities to her other member countries

of AH. The Government of Bangladesh should give more importance to economical development than that of

security for the development of the country. Because the degree of security achieved against such threat

depend upon the level of economical strength developed by the country.

There should be a transport policy like EU where common rules will be applicable to international

transports to or from the territory of a member state or passing across the territory to one or more member

states.

India should ensure an uninterrupted transit facilities from Bangladesh to Nepal and Bhutan. There

should be options open to China to avail transit facilities through Bangladesh via India, Nepal and Bhutan if China

needs in future.

From the transit point near the border of Bangladesh, all the goods should be carried by

Bangladesh's cargo carriers once passing through Bangladesh.

There will be no military movement through Bangladesh's territory. If it happens, then Bangladesh

will have the right to cease the transit facilities to the country that violated the transit rules.

Each member countries of AH reserve the right to check all the cargo passing through their

territory to ensure that there is no illegal transportation through the country.

Documents

Asian Highway: Bangladesh Perspective