Impact of Globalization on the Foreign Policy of Bangladesh
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The Impact of Globalization on Foreign Policy of Bangladesh
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CHAPTER I
1. INTRODUCTION
Globalization in the broadest sense implies integration of economies and societies across the
globe through the flow of technology, trade and capital. It basically refers to a process that
enables people, goods, information, norms, practices and institutions to transcend national
jurisdictions through markets, technologies, interests and information flows. Four types of
changes characterize globalization. First, it involves a stretching of social, political and
economic activities across frontiers, regions and continents. Second, it is marked by the growing
magnitude of interconnectedness and flows of trade, investment, finance, migration, culture, etc.
Third, it can be linked to a speeding up of global interactions and processes. And fourth, the
effects of distant events can be highly significant elsewhere and specific local developments can
have considerable global consequences. Thus the boundaries between domestic matters and
global affairs become increasingly fluid. Globalization, in short, can be thought of as the
widening, intensifying and growing impact of worldwide interconnectedness. It causes an
expansion in the volume and variety of cross border transactions in goods and services.
In this age of globalization the modernist principle that ―foreign policy is an extension of
domestic policy‖ has practically lost its relevance. And this is true not only for the relatively
disempowered developing countries but also for the relatively empowered developed economies.
Today the ‗foreign‘ is less an external entity while the ‗domestic‘ is hardly fully internal. The
meaning of Bangladesh, for instance, is no longer limited to the territoriality of 55,126 square
miles but rather has come to include the hundreds and thousands of Bangladeshis living abroad,
from Canada to Canberra, from Jeddah to Japan. This is as much an issue of economics as it is an
issue of technology.
Again globalization has economic, political and cultural dimensions, all of which can have a
social impact which in turn will have impact on the foreign policies of the interconnected world.
The different dimensions of the process are interrelated and mutually reinforcing. There are,
undoubtedly, significant potential benefits of globalization as long as bilateral and multi-lateral
policy regarding FDI, Labour force sharing, knowledge and technology sharing are concerned.
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Openness to foreign direct investment can contribute to growth by stimulating domestic
investment, improving efficiency and productivity, or by increasing the knowledge applied to
production. Increased access to the domestic financial system by foreign banks may raise the
efficiency of the banking process thereby lowering the cost of investment and raising growth
rates. Trade openness may facilitate the acquisition of new inputs, less expensive or higher-
quality intermediate goods and improved technologies that enhance the overall productivity of
the economy.
Conversely, the process of globalization entails significant risks and potentially large economic
and social challenges, particularly to the developing countries. Openness to global capital
markets has brought greater volatility in domestic financial markets, particularly in countries
whose financial systems were weak to begin with and whose economic policies lacked
credibility. Similarly trade liberalization has led in some countries to reduced demand for
unskilled labour, lower real wages, job losses and income declines which have often resulted in
higher poverty rates. As a result, there have been growing concerns about the negative effects of
globalization, and an increasingly polarized debate on the plight of the world‘s poorest.
It is very clear that the phenomenon of globalization has come to stay. In fact, globalization has
been described as a fast moving train that waits for nobody. Intended passengers either jump
onto it or risk of being left behind. Like every journey, every passenger must be prepared to
board at the right station, with the necessary kits and with a clear knowledge or vision of his
destination. There are obvious indications that Bangladesh is ill prepared to start this journey and
cope with the developments. Apart from the fact that most developing countries lack the basic
infrastructure to embark on industrialization drives, the inability to make sound economic
policies, unpredictability of changes in laws and pervasive corruption are critical obstacles to
development. Therefore, one of the greatest challenges faced by Bangladesh in this century is
how to strengthen its participation in the global economy in a manner that will bring widespread
and sustainable benefits to its people.
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1.2 OBJECTIVES
1.2.1 Broad Objective
The broad objective of this study is to look into the impact of the globalization on the foreign
policy of Bangladesh.
1.2.2 Specific Objective
Specific objectives are:
Understanding globalization and its different dimensions
Understanding foreign policy
Understanding the interconnectedness between globalization and foreign policy
Understanding challenges of foreign policy in the context of globalization
Understanding foreign policy perspectives of Bangladesh in the globalized world
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1.3 METHODOLOGY
1.3.1 Data Type and Source:
This study basically delves in secondary data. The data is mainly collected from different
literature, journals, magazines and books. In data mining internet resources played the vital role.
1.3.2 Data Collection
The broad objective of the study is to look into the impact of globalization on the foreign policy
of Bangladesh. For this purpose at first we tried to define and conceptualize the globalization and
foreign policy imperatives and their interconnectedness. Then we tried to look into the current
status of Bangladesh foreign policy in different perspective like bi-lateral relationships with
different countries and international organizations etc. In this regard we have reviewed number
of related literatures, journals, magazines and books.
Figure 1: Methodology Schematic
Literature Review
• Articles
• Journals
• Magazines
• Books
Bangladesh Foreign Policy
in Globalized World
Da
ta C
oll
ecti
on
Data Analysis
Objectives
• What is Globalization
• What is Foreign Policy
• Interconnectedness
• Foreign policy
response
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1.4 LIMITATIONS
Though this study is based on secondary data yet few interviewing of some of the professionals
from respective foreign policy arena could have added more vivid representation and
understanding. But the training schedule and stipulated time frame in addition to lack of logistics
restrained to do so. As a result we have no choice but to depend on the secondary sources mostly
from web sources.
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CHAPTER II
2. LITERATURE REVIEW
Many books and literatures have discussed the impact of globalization both from the context of
developed and developing country. These studies are focused mainly on the globalization
phenomenon and its positive and negative impacts on different social, cultural, political and
economical factors. There are many studies which directly relate the case of Bangladesh. But
there is hardly any paper that studied the direct impact of globalization on the foreign policy of
Bangladesh. The repercussions of globalization on foreign policy are rather indirect which come
into being following the changes in other domestic factors in the changed global scenario. This
study will concentrate on conceptualizing the globalization phenomenon and foreign policy
imperatives and their interrelating challenges in Bangladesh context.
2.1 GLOBALIZATION
Globalization (or Globalisation) refers to the increasingly global relationships of culture, people,
and economic activity. It is generally used to refer to economic globalization: the global
distribution of the production of goods and services, through reduction of barriers to international
trade such as tariffs, export fees, and import quotas and the reduction of restrictions on the
movement of capital and on investment. Globalization may contribute to economic growth in
developed and developing countries through increased specialization and the principle of
advantage. The term can also refer to the transnational circulation of ideas, languages, and
popular culture. (Source: Wikipedia)
The term was first employed in a publication entitled Towards New Education in 1930, to denote
a holistic view of human experience in education.1 In the 1960s the term began to be used by
economists and other social scientists. The term reached the mainstream press in the latter half of
the 1980s. Since its inception, the concept of globalization has inspired competing definitions
and interpretations, with antecedents dating back to the great movements of trade and empire
across Asia and the Indian Ocean from the 15th century onwards.2
1 Oxford English Dictionary Online. September 2009. Retrieved 5 November 2010.
2 A.G. Hopkins, ed. "Globalization in World History". Norton. (2004). pp. 4–8
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Tom G. Palmer of the Cato Institute defines globalization as "the diminution or elimination of
state-enforced restrictions on exchanges across borders and the increasingly integrated and
complex global system of production and exchange that has emerged as a result."3
Thomas L. Friedman popularized the term "flat world", arguing that globalized trade,
outsourcing, supply-chaining, and political forces had permanently changed the world, for better
and worse. He asserted that the pace of globalization was quickening and that its impact on
business organization and practice would continue to grow.4
Takis Fotopoulos in his paper ―Globalization, the reformist Left and the Anti-Globalization
‗Movement‘‖ defined "economic globalization" as the opening and deregulation of commodity,
capital and labour markets which led to the present neoliberal globalization. "Political
globalization" named the emergence of a transnational elite and the phasing out of the nation-
state. "Cultural globalization" was the worldwide homogenization of culture. Other elements
included "ideological globalization", "technological globalization" and "social globalization".
In 2000 the IMF identified four basic aspects of globalization:5
Trade and transactions: Developing countries increased their share of world trade, from 19
percent in 1971 to 29 percent in 1999. But there is great variation among the major regions. For
instance, the newly industrialized economies (NIEs) of Asia prospered, while African countries
as a whole performed poorly. The makeup of a country‘s exports is an important indicator for
success. Manufactured goods exports soared, dominated by developed countries and NIEs.
Commodity exports, such as food and raw materials were often produced by developing
countries: commodities' share of total exports declined over the period.
Capital and investment movements: Private capital flows to developing countries soared during
the 1990s, replacing "aid" or development assistance which fell significantly after the early
1980s. Foreign Direct Investment (FDI) became the most important category. Both portfolio
investment and bank credit rose but they have been more volatile, falling sharply in the wake of
the financial crisis of the late 1990s.
3 Globalization Is Great! by Tom G. Palmer, Senior Fellow, Cato Institute
4 Friedman, Thomas L. "The Dell Theory of Conflict Prevention". Emerging: A Reader. Ed. Barclay Barrios. Boston: Bedford, St.
Martins, 2008. 49 5 IMF Team. (2000). „Globalization: Threats or Opportunity.‟ 12th April 2000, IMF Publications.
http://www.imf.org/external/np/exr/ib/2000/041200.htm
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Migration and movement of people: In the period between 1965–90, the proportion of the labor
forces migrating approximately doubled. Most migration occurred between developing countries
and Least Developed Countries (LDCs). The flow of migrants to advanced economic countries
was claimed to provide a means through which global wages converge. They noted the potential
for skills to be transferred back to developing countries as wages in those a countries rise.
Dissemination of knowledge (and technology): Information and technology exchange is an
integral aspect of globalization. Technological innovations (or technological transfer) benefit
most the developing and Least Developing countries (LDCs), as for example the advent of
mobile phones.
2.1.1 Historical Foundation of Globalization
The origin of the concept of globalization stretches far back to the activities of the early
Mediterranean civilizations before the fifth century A.D. The ancient explorers, motivated
primarily by the prospects of material gain, traversed the ―silk route‖ between China and Europe,
the ―amber route‖ from the Baltic to the Mediterranean and the ―spice route‖ by sea between
Egypt, the Yemen and India. During this period, up to the end of the fifteenth century, the
volume of long distance trade, travel, and communications was inevitably irregular. Increased
trading expeditions by British, Dutch, and Portuguese merchants in the seventeenth century
raised the demand for colonial goods such as coffee, tea, sugar, tobacco, and chocolate. The
requirement for more production of these goods as the demand increased prompted the beginning
of slave trade from Africa to the Americas and Europe. Following these expeditions, European
languages were easily transplanted to other continents and the three monotheistic religions
namely Islam, Christianity and Judaism took root. In the nineteenth century, the technology
revolution in transport and communications including the emergence of the railway, the
telegraph and the steam ship all lowered freight rates and raised incomes therefore further
boosting globalization.
Globalization witnessed its greatest upsurge in the last two decades of the twentieth century with
faster modes of transport and revolutions in information technology and communications being
the major contributors to its growth. The collapse of the isolationist era of cold war finally
brought home the new integrated world of globalization. Today, globalization has become a
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particularly fashionable way to analyze changes in the international economy and world politics.
Friedman in his book ‗Lexus and the olive tree‘ describes globalization as the dominant
international system at the end of the twentieth century, replacing the Cold War system. He
describes globalization as the new international system, which shapes virtually everyone‘s
domestic politics, commerce, environment and international relations. According to him the
overarching feature of the cold war system was division. It influenced the domestic politics,
commerce and foreign relations of virtually every country in the world. It shaped many things,
but it didn‘t shape everything. On the other hand, globalization has only one overarching
feature–integration. It is all about joint ness and ever increasing interconnectedness. It virtually
influences everything, whether it is a company or a country.
2.1.2 Core Elements of Globalization
Basically, globalization rests on a tripod namely, the expansion of markets (economic),
challenges to the state and institutions (political), and the rise of new social and political
movements (cultural). Economically, technological changes and government deregulation have
permitted the establishment of transnational network in production, trade, and finance creating
what is referred to as a ―borderless world.‖ The new production network describes firms and
multinational enterprises (MNEs) who use advanced means of communications and new
technologies to spread their activities across the globe.
The second element affects States. Political power and activities extend across the boundaries of
nation- states while policy making on issues such as human rights, environmental degradation
and nuclear safety have required global consensus. The third element of globalization affects
more than markets and states. It is altering the lives of people across the globe. Fast
dissemination of media, books, music, international ideas and values has produced a somewhat
global culture.
2.1.3 Key Institutions of Globalization
The main pivot of propagating economic globalization lies with certain powerful financial
institutions that are solely in the hands of western countries. They include the International
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Monetary Fund (IMF), World Bank (WB), and the World Trade Organization (WTO). These
institutions, collectively known as the Bretton Woods institutions, largely influence economic
and political policy formulation in developing countries. For example, one of the conditions
usually imposed on developing countries in order to qualify for loans from these institutions is
the removal of subsidies and deregulation of the public sector. In contrast, developed nations
themselves have continued to subsidize agriculture to the tune of US$1 billion a day. This double
standard has characterized the activities of these institutions since their inception. The
organizations are used by the United States (US) and the other industrialized nations in the G8,
to impose financial discipline and liberal economic policies on the developing countries, but no
mechanism exists that forces the rich countries to play by the rule they set for others. Moreover,
the decision-making structure discriminates against developing countries therefore condemning
developing countries to an inferior position in these organizations.
The views of IMF policies tend to be counter-productive especially for the developing countries.
They actively compelled the developing countries through loan conditional ties to adopt
Structural Adjustment Programs (SAP) which require them to reduce government spending, end
public subsidies, devalue their currencies, adopt export oriented policies, and raise interest rates
to reward foreign investors. Apart from the fact that the attachment of conditions to loans has
been criticized as unwarranted intervention in the affairs of a sovereign state, most of the
countries of the third world that adopted these policies are beset with tales of woes.13 If anything
has changed in those countries, it is that poverty has become more rampant therefore exposing
the failure of these institutions. According to former WB Chief Economist Mr Joseph Stiglitz,
countries that ignore IMF fare better. Developing countries of the third world are groaning under
the yoke of these institutions. Its huge debts to these organizations are stifling development.
These countries therefore demand a greater say in these bodies, the total cancellation of their
debts, and long term development plans in place of the usual emergency loans that become the
burden of developing countries generations yet unborn.
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2.1.4 Dimensions of Globalization
2.1.4.1 Technological Globalism
Technological globalism has its roots to the earlier phases of industrial revolution. Currently it
arose from advances in manufacturing technology that produced increases in productivity,
contributing to a decade-long economic growth spurt. And the dividends extend beyond the
traditional measures of productivity. Industrial products are more durable, use less energy, and
often cost less than they did a decade ago. Technology is indeed a key component of information
globalism, yet there have been tremendous changes in the forms of communication. For instance,
the use of IT tools such as faxes machines, emails and Internet for business and commerce,
learning and dissemination of knowledge is so widespread that was unthinkable before.
Similarly, the use of movies and television for social awareness and entertainment, dissemination
of knowledge and information has dramatically expanded the circle of people who participate in
global communication. The introduction of 24-hour cable news and growing application of
Internet, in particular, resulted in 'death of distance' that has become almost a battle cry of the
information age and is now linked to global communication networks.
Properly harnessed and liberally distributed, technology has the power and potential to erase not
only national borders but also human ones (Friedman, 2000: xvi). Indeed, technological march
has taken breathtaking speed affecting all spheres of industrial life, often resembling science
fiction film and spreading into nanotechnology, biotechnology (including cloning of life and
mapping Human Genome), quantum computers and neural network, semiconductors, sensors and
robotics (Maniruzzaman, 2001:9). Futuristic features in the scientific-technological arena such as
the BBC's 'To-morrow's World' appear so pertinent in current context of international reality.
The old economy has also re-emerged as "knowledge-based" and as the "New Economy." The
U.S. industrial sector, for instance, that has been in a near-death experience in the 1970s, "has
been steadily reorganizing, gathering strength, and improving its efficiency. Today, as a result of
technological innovation, drive and prioritization the U.S. is back as a manufacturing
powerhouse" (Carlson, 2000:1). There is bound to be occasional slowdown and fluctuation due
to the swiftly changing nature of global politics and the ramifications that it may on both
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industrial growth and economy, but technology has moved so fast and been so sweeping that the
growth spurt cannot be held back permanently.
2.1.4.2 Information Globalism
Information globalism or globalization of communication has developed over the last century.
Technology itself is a key component of information globalism, yet there have been tremendous
changes in the forms of communication over time. When Marshall McLuhan publicized the
notion of' Global Village' in the 1960s, it was the culmination of years of study about
developments in communication. For instance, the use of information technology (IT) tools or
.com technology for business and commerce, learning and dissemination of knowledge is so
widespread that was unthinkable before. Similarly, the use of movies and television for social
awareness, entertainment, dissemination of knowledge and information has dramatically
expanded the circle of people who participate in global communication net (Keohane and Nye
Jr., 2000: 108-109).
The process of electronic communication started from the wired electronics of the early
telegraph, telephone, radio, movies, television and then extended to the wireless and satellite
communication networks and more recently to computer technology and the development of the
Worldwide Web/websites, Email, faxes, cellular phones and the Internet—enabling the ability to
communicate, both through space and time. All this enabled almost instant communication
between the peoples of the world who possess the necessary electronic equipment and
technology. The Internet users have already approached nearly 200 million and the number is
expected to cross 700 million by the end of 2001, despite the stark disparity of users between the
rich and poorer countries (Rahman and Majumdar, 2000: 1).
The results of this entire system-net development have been both extensive and intensive: global
communication network and globalization of communication tenuously connected to the
information chain has transcended their states or even their localities. Reduced costs of
communications have increased the number of participating actors and increased relevance of
complex interconnectedness or thickness of globalism. The volume of communications has
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increased by many orders of magnitude, and the intensity of globalism has been able to expand
exponentially as a result of this "message velocity." Markets react more quickly than before,
because information diffuses so much more rapidly and huge sums of capital can be moved at a
moment's notice (Keohane and Nye Jr., 2000:113-114). Thus information revolution has spread
far and wide, reaching systemic proportions.
2.1.4.3 Economic Globalism
Linked to both technological and information globalism is economic globalism, with the latter
already having outpaced political globalization. Indeed, proliferation of the word globalization
stems largely from changes in the world economic scene over the last decade (Beabout, 2000: 7-
8; Keohane and Nye Jr., 2000: 106). It means the globalization of the economy or the integration
of economies across national borders with the globalization of production, trade and investment.
It involves long-distance flows of goods, services, and capital, as well as the information and
perceptions that accompany market exchanges. It also involves the organization of the processes
that are linked to these flows, such as the organization of low-wage production in Asia for the
U.S. and European markets.
Economic globalism has been conditioned by what the economists call 'network effects' of the
'knowledge-based economy' linked to global communication networks. IT has changed
dramatically some of the leading global economies. The U.S. economy that was virtually sinking
until the early 1990s has now emerged to reassert its economic muscle globally. The Internet
economy has become such a force of the U.S. economy that it ever was before, generating an
estimated $830 billion in revenues in 2000, a 30 per cent increase over 1999. It also created jobs
and increased productivity in companies across the econonty (US Internet, 2001:7).
Similarly, India's impressive technical-computer expertise has been developed so spectacularly
in recent years that its expertise is eagerly sought around the world. Its software exports have
been growing at the astronomical annual rate of 50%, rising from approximately $200 million
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per year in the early 1990s to the late 1990s to $5.2 billion, and is expected to rise to $50 billion
a year by 2008 (Pickering, 2000: 5).
Global movement of capital and investment has also been amazing. The closing years of the
twentieth century have witnessed some of the largest wave of mergers and takeovers in business
history, following frenetic burst of activity in the telecommunications, media and technology
sectors. Most of the players have been either North American or European, but some were also
Asians, especially Japanese. The new transactional culture had wide-ranging ramifications. One
of the impacts of the cult is the drive towards privatization around the world, reinforcing
pressures that encourage management to regard employees as a cost rather than an asset. It is
viewed that for nations like Bangladesh with a bloated state sector, privatization remains the
gateway to more efficient resource allocation that may facilitate the flow of foreign direct
investment (FDI) (Plender, 26 Dec 2000).
Related to the above is the more significant aspect of economic globalization, what is called
'institutional velocity' (Keohane and Nye Jr., 2000:114). This includes globalization of
production and trade, the rise of the MNCs and an expansion of investment markets. All this
seems closely interlinked. During recent years growth in international trade has outpaced overall
economic growth. Production of finished goods that are made from parts assembled in one
country while produced and sold in other countries. The MNCs have changed their
organizational structures, integrating production more closely on a transnational basis and
entering into more networks and alliances, as global capitalism has become more competitive
and more subject to change. They created transnational networks to coordinate product
development, production, and marketing of goods and services as they found that it more
efficient and cost effective to have offices and production sites in more than one country.
Developing countries have often been integrated into the MNC networks as suppliers or
assemblers of components. Naturally there has been a great of capital investment across national
borders.
With globalization of the economy, there has also been a growing number of agreements among
nations to have agreed-upon standards across national borders to standardize systems and rules
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across national boundaries. While the United Nations (UN) has now taken on the role of a global
parliamentary government structure, an expansive multiplication of bodies and commissions
regulate economic development but also civil rights, women issues, the environment, and various
other issues. The World Trade Organization (WTO), established following the 1994 Uruguay
Round of General Agreement on Tariffs and Trade (GATT) is to regulate trade between various
national market economies (Beabout, 2000:7-8). As a result there was a staggering increase in
private investment to developing countries, with almost a US$50 billion increase every year
during the 1990s. There have been electronic transfers of funds and deregulated trading,
investors and markets more fully integrated into a single, global system (Beabout, 2000: 9-10).
Similarly, economic globalism most markedly affected worldwide financial markets. The
financial crisis in Thailand in July 1997 is a case in point that subsequently had its regional and
worldwide reverberations, requiring urgent international attention and 'bailout' packages by the
International Monetary Fund (IMF). On the other hand, the economy of the neighboring India
has shown so dramatic upgrading due to chain-link effects of knowledge-based networks that it
is often mentioned as a replicable model of New Economy. Flow of business, money and stocks
is easily transformed into digital orders on a computer as e-business and e-commerce builds their
higher profiles (Keohane and Nye Jr., 2000: 108-111).
Thus as economic globalism and its follow-up of interconnectedness have "become thicker,
systemic relationships among different networks have become more important. There are more
interconnections. Intensive economic interdependence affects social and environmental
interdependence; awareness of these connections in turn affects economic relationships"
(Keohane and Nye Jr., 2000: 109). Market and trade-wise, institutionally and organizationally,
flow of capital and investment, goods and services, network of international agreements etc. the
world is now more fully interconnected as never before, giving it more the shape of a systemic
order than ever.
2.1.4.4 Military Globalism
Military globalism has contrasting signals for the age of globalization. It has its roots to long
distance networks of systemic interconnectedness of the Cold War period involving both world-
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straddling alliances and intercontinental missile systems capable of destroying each other in 30
minutes. That enabled the contending sides to use actual force and use of deterrence signaling i.e.
the threat or promise of force on the Cold War pattern of "balance of terror" that is employed. Of
course not all powers have had the logistical, command and control capabilities for global reach
as the U.S., currently viewed as the lead actor in the unipolar international system. Most other
powers have become either local or at best regional. The USSR not only disappeared politically,
but the diminutive Russian Federation lost its military prowess and more importantly its will
power, while China's deterrent capability is no more than a fraction of that of the U.S. and as an
economic system the Chinese have also put aide communism (Yergin and Stanislaw, 2000:12).
The experiences of the Gulf War had indicated that the U.S. itself can hardly act alone as an
international gendarme to maintain systemic stability. Rather a heightened global awareness
following information revolution of some of the civil wars and conflicts contributed to pressures
for international humanitarian interventions, as in Bosnia and Kosovo.
Similarly, the daring terrorist attacks of 11 September 2001 in the picturesque New York twin-
tower and in the most secured Pentagon office complex emphasized that security network or
technological/military power of the conventional order can be made irrelevant and totally
dysfunctional, as technology has become 'democratic', transferable, and no longer in static
ownership of powerful governments. Hence there may be a need for cohesive international action
to stem the tide of growing violence, not necessarily by conventional military means alone. The
U.S. itself, though is now both self-projected and well-famed as the lead player in the unipolar
international system, has been louder than others in the campaign seeking to organize an
international coalition as a 'counter-strategy' in the war on international terrorism.
Moreover, although a primary target of such terrorist attacks from organized groups or non-state
entities, the U.S. has been emphasizing a strategy of engagement and enlargement regionally as
well as globally. The emphasis has been on replacing the confronting strategies of the earlier era
and thus contributing to a more and more thickness of interconnectedness or corresponding
linkages across the international system. What may still be a missing link in the strategy is not
the absence of military-strategic means, but appropriate responses to the politico-economic
justification provided for the terrorist acts or the violent means that go with them.
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2.1.4.5 Environmental Globalism
Environmental globalism refers to the relatively unvarying nature of degradation of the global
environment due either to natural phenomena or civilizational changes induced by human
activity, thus conveying the sense of 'only one earth' than ever before. Pollution contributed more
than others to environmental globalism. It has its sources in the coal-oil-steel-auto-chemical
economy that was created between the middle of the 19th
and 20th
centuries, though has become
thicker during the more recent years (Keohane and Nye Jr., 2000:113). Modern destructive
means of warfare, including the use/abuse of chemical and biological gases-weapons, supported
by high speed delivery systems and missiles are causing massive desolation to human abode,
ecosystem and environment locally, regionally and internationally. Such was the experience
during the Gulf War towards the beginning of the 1990s or is being currently experienced in
Afghanistan.
Thus pollution of ecosystem, e.g. of rivers, streams and such other similar water bodies not only
has local impacts but also directly affects those downstream. Similarly, poisonous air lethally
affect cities and localities far beyond. The long-distance air and sea transports also affect
atmosphere or oceans, as well as biological substances such as pathogens or genetic materials
affect human health and sustenance of nature. Included also the depletion of the stratospheric
ozone layer as a result of ozone-depleting chemicals, as is the spread of the killing AIDS virus
from west equatorial Africa around the world since the end of the 1970s. It has been drawing
media headlines through the 1990s ever more due to its widening dispersal and its incurable
nature (Keohane andNye Jr., 2000: 106-107, 111).
There have been growing realization that, given the global nature of environmental problems
engulfing the system, the responses have to be global. The efforts to combat global
environmental degradation and to ensure sustainable development had began in the early 1970s
with the Stockholm Conference and the birth of the UN Environmental Program (UNEP), but the
momentum had been built up with the World Conference on Environment and Development
(WECD) at Rio (1992). The effort globally is now renewed every five years involving the
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concerned international organizations, governments, civil society representatives such as the
NGOs, and the recurrent efforts are now spread over to specific issue areas such as curbing gas
emissions, reversing global climate change, promoting environmental legislations and their
enforcement, encouraging green technology and recycling etc. Funds are now mobilized as part
of systemic efforts to counteract environmental degradation and pollution, though problems often
have to be identified locally and regionally to redress them and to seek environmental
alternatives to the existing life and living styles.
2.1.4.6 Sociopolitical and Cultural Globalism
This dimension of globalism involving society, politics, and culture interacts with other types of
globalism, because technological, military, environmental, and economic-market activity convey
information and generate ideas, which may then flow across geographical and political
boundaries. Notionally it involves the movement of ideas, information and images, often
resulting in what sociologists call 'isomorphism', and cross-border mobility of people.
Sociopolitical and cultural globalism has invariably dented the past 'political and cultural
distance' across global frontiers (Keohane and Nye Jr., 2000: 107,110).
Social globalism affects the consciousness of the individuals and their attitude toward culture,
politics, and personal identity. In the current era, as the growth of the screen view and Internet
reduces costs and globalizes communications, the flow of ideas is increasingly independent of
other forms of globalization. The actual movement of ideas and information, even the very
assumptions, attitudes, and expectations of peoples are virtually instantaneous. While the
systemic impacts may vary due to differences or variations of other levels of socio-cultural
indicators, even trivial symbols, as expressed in baseballs, rock-'n'-roll music or T-shirts convey
the impacts on values and lifestyles of peoples across the globe (Keohane and Nye Jr.,
2000:107,110).
The vast expansion of transnational channels of contact and at multi-continental distances also
has helped expand an additional dimension of complex interdependence, with multiple issues
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connecting societies. There were increasing limits to the role of the national governments. Even
with widespread recognition of the benefits of deregulation, the role of the government is
changing from that of primary economic actors to a more diminished role as economic referees
(Beabout, 2000: 8; Keohane and Nye Jr., 2000: 117).
The roles of individual citizens, civil society and even the nature of the governments and governance
have been changing globally. Democracy as a system of governance has found widespread
popularity and acceptance across continents, including the developing world of Asia, Africa and Latin
America. There has been a worldwide movement towards democratic mode of governance, with an
increasingly greater role assumed by individuals and very many social segments. Momentous change is
thus noticeable due to the proliferation of the non-governmental organizations (NGOs) that span national
borders with their professed goal of influencing transnational governmental agreements about labor
conditions, rights of the landless and poor, gender and children's rights, the environment and trade
(Beabout, 2000: 8; Keohane and Nye Jr., 2000:117). There is a greater emphasis on human rights and
human security, as against traditional emphasis upon state security and integrity. The more famous of
the NGOs such as the Greenpeace and Amnesty International with their worldwide networks can
now raise their voices as never before against human rights violations and environmental
degradation. During 1999-2000 NGOs used the Internet and other communication network to
coordinate massive protests against the WTO, WB and the IMF annual meetings and gatherings
(Keohane and Nye Jr., 2000: 116-117). This trend of' globalization from below' continues since on an
intensified scale seeking to reshape systemic thinking with worldwide public opinion mobilization
against perceived asymmetric intrusion and dominance.
"Globalization of culture" at its most profound level sees the growing development of a monolithic
consumer culture, a moral vision that seems to encourage a global vision of the world. This includes
the culture of Hollywood/Bollywood movies, fast food chain resembling Big Macs and/or fusion
cuisine, MTV/Sony/ZTV, and Disneyland etc., a vision of moral libertinism, material consumption
or secular consumerism cut from traditional mores, the atomized self and often uninfluenced by
family and religion. In this each individual is often conceived of as autonomous—free from the
strictures of tradition, class and familiar obligations, making the individual the ultimate authority in
moral matters (Beabout, 2000: 12; Ford, 2000: 1-3).
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However, this aspect of globalization contains the greatest potential for growth as well as the greatest risk
for moral obliteration depending on which moral vision is globalized. On the other hand, an expression of
moral vision may contribute to an acceptance of the diversity of cultures. It may promote the
fundamental dignity of every human being, a deepened awareness of human fellow feeling and solidarity
(Beabout, 2000: 12-14).
Social globalism in general affects the consciousness of the individuals and their attitude toward culture,
politics, and personal identity. In the current era, as the growth of the screen view and Internet reduces
costs and globalizes communications, the flow of ideas is increasingly independent of other forms of
globalization. The actual movement of ideas and information, even the very assumptions, attitudes,
and expectations of peoples are virtually instantaneous.
The virtual reality is that the politico-ideological walls of the past decades have crumbled
globally and the old division of nations into confronting blocs is no longer valid. Even most of
the communist countries, including China, opened their economies in a fashion no body could
imagine before (Beabout, 2000: 6-7). Thus sociopolitical and cultural globalism in all its
manifestations accelerated the process of thickness of systemic interconnectedness it ever had
simultaneous with closing the gaps in all other dimensions of globalization.
2.2 FOREIGN POLICY
A country's foreign policy, also called the foreign relations policy, consists of self-interest
strategies chosen by the state to safeguard its national interests and to achieve its goals within
international relations milieu. The approaches are strategically employed to interact with other
countries. In recent times, due to the deepening level of globalization and transnational activities,
the states will also have to interact with non-state actors. The aforementioned interaction is
evaluated and monitored in attempts to maximize benefits of multilateral international
cooperation. Since the national interests are paramount, foreign policies are designed by the
government through high-level decision making processes. National interests‘ accomplishment
can occur as a result of peaceful cooperation with other nations, or through exploitation. Usually,
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creating foreign policy is the job of the head of government and the foreign minister (or
equivalent). In some countries the legislature also has considerable oversight.
2.2.1 History of Foreign Policy
Aristotle, an ancient Greek philosopher, described human as a social animal. Therefore,
friendships and relations have existed between humans since the beginning of human creation.
As the organization developed in human affairs, relations between people also organized.
Foreign policy thus goes back to primitive times. The inception in human affairs of foreign
relations and the need for foreign policy to deal with them is as old as the organization of human
life in groups.
The literature from ancient times, the Bible, the Homeric poems, the histories of Herodotus and
Thucydides, and many others show an accumulation of experience in dealing with foreigners.
The ancient writings (Chinese & Indian) give much evidence of thought concerned with the
management of relations between peoples.
2.2.1.1 Post-Renaissance Medieval Period
In medieval Europe, political philosophers like Machiavelli, Bodin, Grotious, Hobbes,
Pufendorf, Hume and Rousseau underlined the need for rules to regulate the interaction among
emerging sovereign nation states. In the 18th and 19th centuries Kant, Bentham, Fichte, Hegel,
Rank and Mill‘s political theories also had a bearing on relations between European states. At
that formative stage, however, the concept of international relations remained an appendage of
the general political theory rather than a distinct subject for study in its own right. In those times
foreign relations were not supposed to be for public consumption.
2.2.1.2 Twentieth Century
The global wars were fought three times in this century. Consequently, international relations
became a public concern as well as an important field of study and research. After the Second
World War, during 1960‘s many researchers in U.S. particular, and from other countries in
common, brought forth a wealth of research work and theory. This work was done for
international relations and not for foreign policy as such. Gradually, various theories began to
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grow around the international relations, international systems and international politics but the
need for a theory of foreign policy, that is the starting point in each sovereign state, continued to
receive negligible attention. The reason was that the states used to keep their foreign policies
under official secrecy and it was not considered appropriate for public, as it is considered today,
to know about these policies. This iron-bound secrecy is an essential part for the framework of
foreign policy formulation. The second world war and its devastation was a great threat for the
human survival, revealed to everyone the importance of international relations. Though foreign
policy continued to remain under-cover, academic work placed international relations in a
structured framework of political science. Graduate and Post-graduate courses developed.
Research was encouraged, and gradually, international relations became an academic discipline
in universities throughout the world.
The writers who worked with the foreign policy can be divided in two groups: 1. World war
writers who treat international politics and foreign policy as an indifferent, single field of study.
Who recognize foreign policy as a source rather than the substance of international politics and
bring it under study as a subject. 2. The second group restricts its work to foreign policy making.
The works of second group comes closer to the theory of foreign policy but there is no attempt to
formulate a basic theory of foreign policy. Morgenthao‘s works on principle elements of foreign
policy seem to have covered the most ground.
2.2.2 Core Components of Foreign Policy Analysis
To enable a systematic discussion of various theoretical and conceptual perspectives on for-eign
policy, a concise depiction of the subject of study is needed. Much scholarly effort has been
spent on defining foreign policy. Instead of randomly reviewing definitions - an exercise which
can only ever be incomplete -, a brief review of the core analytical units developed in the disci-
pline of foreign policy analysis allows us to identify what can be considered as the (timeless) gist
of the concept of foreign policy.
Logically, the existence of a ―foreign policy‖ presupposes a distinction between inside - an ac-tor
and its domestic context - and outside/foreign - the environment the actor faces - , and some form
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of political relationship between the two. To set the three components of this basic, generic
description of foreign policy analytically into relation, we can rely on a process-oriented
approach often adopted in classical foreign policy analysis.
Firstly, everything that takes place in the domestic or internal sphere has been discussed un-der
the term ―foreign policy decision-making‖ (Gross Stein 2008). With the intention of explain-ing
foreign policy behaviour (Harnisch 2002), classical foreign policy analysis focused a lot on this
dimension by analysing the decision-making process itself (Snyder et al. 1954; East et al. 1978)
and the psychological, political and social context in which decision-makers are embedded when
designing foreign policies (Sprout/Sprout 1956). In essence, the study of foreign policy decision-
making requires answering each of the following questions: by whom (actors), on what basis (ca-
pacities/foreign policy instruments), for what purpose (interests/objectives) and by what means
(decision-making procedures) are foreign policy decisions made?
Secondly, the view foreign policy analysts hold of the external environment depends largely on
the chosen level of analysis: some approach it from an actor-based perspective, focussing
classically - on states, but also on other, non-state actors; others have taken a structure-focused
(top down) approach (cf. Carlsnaes 2008).
Finally, to incorporate the politics dimension into this process-based approach of foreign pol-icy,
analysts have distinguished between foreign policy decision-making and ―foreign policy
implementation‖ (Smith/Clarke 1985). Where the former depicts the phase in the foreign policy
process during which decisions are prepared and taken, the latter describes how this output of the
foreign policy decision-making machinery is implemented when ―actors confront their
environment and their environment confronts them‖ (Brighi/Hill 2008: 118).
This process view of foreign policy can be helpful to visualize how the various core components
of foreign policy analysis go - schematically - together. This simplified model of the foreign
policy process allows to identify the most important analytical units of foreign policy analysis.
To further structure this account, and allow for a suc-cessive comparison of the assumptions IR
theories, globalization and global governance make with regard to foreign policy, we derive one
cluster of questions from each of the core dimen-sions of foreign policy:
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(1) Internal sphere: Who makes foreign policy (actors)? What type of inter-ests/objectives are
formulated and how? What are the capacities foreign policy can be built on and how can these be
used (instruments)?
(2) External sphere: Who are the actors in the external arena? What are the struc-tures that
determine how the actors typically interact?
(3) Foreign policy implementation: How are instruments applied in order to influ-ence the
external environment? Which actors and/or which structures are the objects (or targets) of
influence attempts?
Figure 2: A schematic view of the central units of analysis of traditional foreign policy analysis
External Sphere
-Actors
-Structures
Foreign Policy Implementation
-Influence attempts (Concrete use of foreign policy
instruments) and their objects
Internal Sphere
-Actors
-Capacities
-Interests
-Objectives
-Decision making
-Instruments
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2.3 GLOBALIZATION AND FOREIGN POLICY
2.3.1 Traditional Approaches to Foreign Policy Analysis and The Challenge
of Globalization
Taking the core units of foreign policy analysis as a starting point, we will now consider how
these have been interpreted from the perspectives of the classical IR theories and
constructivism6, before looking at how globalization challenges these interpretations.
Traditional views on foreign policy: the classical IR theories and constructivism
Foreign policy analysis and International Relations are linked by a ―special relationship‖ (Smith
et al. 2008b: 4): the former has regularly been influenced by concepts - such as the primacy of
nation-states - used in the classical IR theories. A very brief review of how these theories have
influenced thinking about the various dimensions of foreign policy confirms this perception.
Emphasis will be placed here on the two classical IR theories: neo-realism and neo-
liberalism/neoliberal institutionalism. Though not a theory per se, social constructivism will also
be briefly discussed, as it has informed foreign policy analysis in more recent times.
In his ―Theory of International Politics‖, Waltz, the founding father of neo-realist thinking,
refuted the idea that his reasoning could be used to build a suitable theory of foreign policy
(1979: 127-128). This view has not only been contested by the younger generation of neo-realists
(Elman 1996; Baumann et al. 2001; cf. Harnisch 2002), but the views foreign policy analysts
hold of the external sphere have de facto been strongly influenced by neo-realist premises over
the years (Wohlforth 2008). In a nutshell, from a neo-realist perspective, foreign policy is
strongly determined by the external environment, an international system characterized by
anarchy. In this system, states - understood as unitary, rational actors - interact to assure their
security (Jervis 1978). A state‘s foreign policy behaviour is determined by its relative power,
which is a function of the distribution of power in the international system, and is seen to depend
on material re-sources (military capacities, raw materials) (Mearsheimer 2007). Little attention is
paid to the domestic context.
6 constructivism is the claim that significant aspects of international relations are historically and socially contingent, rather than
inevitable consequences of human nature or other essential characteristics of world politics. (Wikipedia)
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In a neoliberal (institutionalist) perspective, the international system is also primarily an arena
for state interaction, but non-state actors and intergovernmental institutions can also play a role.
Since states strive to maximize their interests in this arena, ―cooperation under anarchy‖ (Oye
1986) or the creation of institutions through durable inter-state cooperation become feasible
(Keohane 1989). This presupposes bargaining among states on the basis of predefined objectives
(Keohane 1989), formulated in a domestic context via the pluralistic competition of interests.
The opening up the black box of the domestic context and the explanation of the link between
internally defined interests and their defence in the external arena - via foreign policy - can be
perceived as the major contributions neoliberal theorists have made to foreign policy analysis
(Doyle 2008), demonstrating in quite sophisticated ways how these arenas (might) interact
(Putnam 1988; Moravcsik 1997). Central to the formulation and defence of interests is the
emphasis on economic, in addition to military and natural resources, which makes the neoliberal
concept of power slightly broader than the neo-realists‘.
If both neo-realists and neoliberal theorists focus very much on the systemic features of the
international system to explain foreign policy behaviour, more interpretive accounts that have
emerged since the 1990s emphasize the relationship between agency and structure (cf. Harnisch
2002: 8; Checkel 1998). Moderate social constructivists oppose the ―structural perspective‖ of
the classical theories (Carlsnaes 2008: 91), introducing structurationist reasoning into the debate
(Giddens 1984; Wendt 1992). If agents and structures co-determine each other, this leaves more
space for foreign policy as (at least) the semi-autonomous exercise of agency. Moreover, con-
structivist thinking places generally more emphasis on the role of ideational factors (values,
norms) in the international arena and, consequently, also in the formulation and conduct of for-
eign policy (Adler 2002). The external sphere is, from this perspective, no longer an exogenously
given entity, but the product of the construction of intersubjectively shared meanings (―anarchy
is what states make of it‖, in Wendt‘s famous dictum). This makes foreign policy ultimately
appear as an exercise of defining and constructing ―systems of norms‖ (Finnemore/Sikkink
1998) through communicative interaction (arguing and persuasion) (Risse 2000; Checkel 2008:
76-77). Once structures have been created, a logic of appropriateness sets in, where actors
behave ac-cording to the rules that have been intersubjectively defined, as opposed to according
to the in-terest-driven logic of consequentialism that the classical rationalist theories hail
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(March/Olsen 1998). In sum, a lot of constructivist thought implicitly touches upon the level of
analysis prob-lem that neither neo-realism nor neoliberal accounts have solved: rather than
perpetuating the divide between the internal and the international, constructivists advise us to
transgress levels (Carlsnaes 2002: 342; Checkel 2008: 77-78).
In synthesis, both the classical IR theories and social constructivism have had a non-negligible
impact on the way foreign policy has been and is understood and interpreted. The legacy of neo-
realism is clearly visible in the emphasis of much foreign policy analysis on the centrality of
states and on (an often limited notion of) power. Neoliberal thinking is observable in many
accounts that focus on internal interest-formulation and bargaining as supreme foreign policy act.
At the other end of the rationalist-reflectivist spectrum, while not so much applied to foreign
policy analysis in practice, constructivism has generally made a contribution by emphasizing the
role of ideational factors and a stronger focus on the relationship between actors and structures
(Carlsnaes 2008) in foreign policy.
2.3.2 The Challenge to Foreign Policy in The Context Of Globalization
Explicit discussions of the challenges globalization poses to foreign policy are virtually absent
from the relevant literatures. It is for this reason that we will now attempt to elicit what appear to
be the most striking implications of globalization for the concept of foreign policy.
2.3.2.1 The Relevance of Foreign Policy
To begin with, globalization challenges the very essence of foreign policy: by rendering dis-
tances increasingly meaningless and altering the importance of frontiers, it blurs the distinction
between inside and outside that is central to the determination of the foreign in foreign policy.8
Nothing leads us to suppose, however, that the notion of foreign is going to disappear. On the
one hand, amid all claims about the slow erosion of the territorial organization of social life, the
nation-state has so far largely resisted change and is not bound to vanish so soon (Sørensen
2004). On the other hand, even in an increasingly de-territorialized world order, the distinction
between ―we‖ and ―the other(s)‖ will persist as long as there are cultural, linguistic and other dif-
ferences. And nothing points to the disappearance of all differences, since little evidence
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supports the idea that globalization equals universalization or, as some have claimed,
westernization (Pet-ras/Veltmeyer 2001) (Scholte 2005: 56-59). Secondly, in an era of
transformation that produces winners and losers, where political structures are changing, and
where, hence, solutions have to be found to new types of social problems, the demand for foreign
policy - an activity directed at influencing others (whoever they may be) to defend one‘s aims
and assure that one‘s own vision of the world becomes part of existing and new structures - is
bound to increase rather than de-crease.
2.3.2.2 The Internal Sphere
Globalization also provides a major challenge to the common interpretation of how foreign
policy is made, not only with regard to the locus, types of and formulation of interests and aims
of foreign policy, but also concerning the capacities and instruments needed to conduct it in a
globalizing world.
As to the actors who formulate foreign policy, the globalization literature suggests that these may
not (exclusively) be territorially organised states any more, but - in parallel to, in addition to or
instead of traditional actors - other entities, such as the European Union, whose foreign policy
will be the subject of discussion below.
Against this background, globalization obviously also entails an opening of the internal sphere
(Beck 2000). The interests of an entity will neither be exogenously given through the dis-
tribution of power in the international system, nor exclusively internally formulated via a
pluralist internal competition of social forces. Rather, interests and aims can be expected to be
increas-ingly the product of a variety of internal and external influences. With globalization
raising the awareness that what happens in distant places may have impacts on the domestic (and
vice-versa), the external may be much more present in the formulation of foreign policy goals.
At the same time, demands for foreign policies that deal in one way or the other with the
consequences of globalization, but also with its political, technological, socioeconomic, and
cultural root causes are bound to arise.
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2.3.2.3 The External Sphere
Turning to what globalization means for the external sphere, a number of considerable changes
can be detected in the international system as it has been described and interpreted in classical
accounts of foreign policy analysis (and IR theories).
First and foremost, the world is becoming more and more interconnected and multipolar in more
than one way: not only has the balance between the still important state actors altered due, in
part, to processes of (economic) globalization that have led to rapid growth in major emerging
countries like China and India, but a plethora of new (types of) actors is populating the external
arena (Humphrey/Messner 2005). Among them are the traditional intergovernmental and non-
governmental organisations (IGOs, (I)NGOs), religious movements, multi-national companies
(MNCs), but also various other new entities such as networks of scientists (epistemic communi-
ties) or of the media. This proliferation and diversification of actors has rendered the global arena
much more complex than older conceptual approaches would have it. Moreover, the growing
insignificance of borders has induced the slow emergence of a transnational civil society,
bringing together citizens and private interests across frontiers to define and defend their
common objectives (McGrew: 2005: 25).
As a result, the structures that have long been taken for granted - in a liberal view, a multilat-eral
world order characterized by international regimes and organisations (cf. Ruggie 1993) - are
eroding. In its current shape, the globalizing world is characterized by an emergent global
governance mosaic, a co-existence of spheres of (relative) order - spaces that are regulated
through inter-state cooperation in the traditional sense or informal networks of actors - and quasi-
anarchic niches that are so far devoid of effective political organisation. If a political regulation
of these spaces is desired, many of the traditional structures are in need of modernization and
completely new structures will have to be created to deal with some unseen challenges, notably
the regulation of various types of novel flows, e.g. in the communication and information
domains, and to provide ―global public goods‖ (Kaul et al. 1999).
2.3.2.4 Foreign Policy Implementation
When it comes to the question of how foreign policy is concretely implemented vis-à-vis
other(s), globalization highlights that both the focus and the objects are changing.
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Per definition, foreign policy is aimed at everything that lies outside of the entity that con-ducts
it. The changing external environment demonstrates that a concentration solely on inter-state
relations is no more sufficient. Other actors such as NGOs, MNCs and the societal dimen-sion of
global politics, but increasingly also flows and networks, hybrids between actors and structures,
demand more attention. A greater focus on these new actors, notably (organised) civil society
can be assumed to further transform traditional diplomacy. Further, globalization challenges the
focus on actors, be they old or new, only. As seen from the discussion of the external sphere, the
activity of ―globalizing structures‖ demands specific attention to the conduct of for-eign policy.
Implicitly, the globalization literature suggests that structures are bound to increasingly become
the targets of influence attempts. To play a role in the newly emerging foreign policy arena,
instruments and coherent strategies are needed that heighten the chances of an actor to impact on
all types of actors and structures.
2.3 .3 Global Governance As An Analytical Concept Applied To Foreign
Policy
2.3.3.1 The Relevance of Foreign Policy
While globalization scholars may be less articulate about the future relevance of foreign pol-icy,
global governance analysts obviously do see a place for the political in this new global con-text.
The mediation of interests between different entities through foreign policy becomes ever more
crucial - and difficult - in an increasingly complex political arena. As long as these different
entities belong to distinct communities, a line between inside and outside can be drawn and we
can accordingly also assume that foreign policy continues to play a role
2.3.3.2 The Internal Sphere
Turning to the actors, interests and aims of foreign policy in a globalizing world, states re-main
foreign policy actors, but in a global governance perspective EU foreign policy, MNC for-eign
relations or ―NGO diplomacy‖ (Betsill/Correll 2007), among others, can equally be imag-ined. It
becomes more difficult to pinpoint how and what type of foreign policy objectives are
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formulated by these actors. To start with, open frontiers and the increased transnationalization of
societies lead to a growing impact of outside interests on the decision-making within an entity.
Further, as the emerging global governance architecture is characterized by variable geometry,
the formulation of clear-cut overarching interests is rendered difficult. Interests and objectives
rather need to be geared to the specific structures and actors that form the arena or network
which deals with a particular issue. Where they used to be territorially and community defined,
they are thus becoming more and more functionally defined, In that sense, the outside might
determine to a larger extent what is considered an interest and a desirable goal by a foreign
policy actor, with-out, however, dictating the precise option that this actor has to choose. This
interpenetration of levels and of outside/inside also calls the very notion of a internal or domestic
sphere into ques-tion. The variety of organizational forms that co-exist in the global governance
arena also raise the question whether one core interest of any foreign policy actors is not to
reduce the uncer-tainty and complexity of this new context by defining the goal of rendering the
external environ-ment less ―messy‖. With the idea of greater effectiveness in mind, structure-
focussed objectives may thus loom large in foreign policy for global governance.
Regarding the capacity that foreign policy actors need to dispose of in a context of global
governance, a first necessity is to reconsider the concept of power: while central to global
governance, it now comes in many different ways. Where the bargaining about institutions was
mostly a thing of relational power in the hard, material sense in the classical IR accounts, a
systematic conversion of one‘s material power into impact on all actors and at all moments must
be considered less and less realizable in a globalized world. ―Globalizing structures‖ (Mittelman
1996) therefore requires also structural power, i.e ―the power to shape and determine the
structures of the global political economy within which other states, their political institutions,
their economic enterprises and (not least) their scientists and professional staff operate‖ (Strange
1988: 24-25)
2.3.3.3 The External Sphere
The multi-actor and multi-level nature of the emerging global governance architecture implies
that foreign policy has to deal with many - and many different types of - actors at the same time.
Further, these actors not only operate by themselves, but can be part of larger structures that
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stretch across levels. Sub-state actors can play a role in global politics, NGOs can together form
a global network operating at several levels at the same time. Furthermore, actors can come in
dif-ferent forms in different issue areas: where a state used to be a state whether the subject of
nego-tiation was trade or arms control in the past, actors can now be lone riders in one arena and
part of a powerful network in the next.
With the emergence of networks and under conditions of variable geometry, the structural
features of the global governance architecture differ a lot: partially, new structures supersede old
structures or co-exist with them, but in some areas that were rendered important by globalization
(such as public health, transnational terrorism or migration) entirely new structures may have to
be created or are emerging. Such structures can be highly institutionalized, organized according
to multilateral principles (Novosseloff 2002), or extremely informal, such as loose governmental
or private-public networks (Koenig-Archibugi 2002). The structures of global governance
become, in this perspective, more or less precise, more or less compulsive “systems of rules”
(Rosenau 2002).
All in all, global governance as an analytical concept suggests that everything is still very much
in a state of flow in this new global political arena - new actors are emerging and finding their
place in the system, new issue areas are explored, defined and regulated, old structures reformed
and new ones created. In short, as analytical perspective, global governance emphasizes that the
external sphere is much more complex than the classical view of foreign policy would admit -
and this has yet to be adequately reflected in foreign policy analyses.
2.3.3.4 Foreign Policy Implementation
Where globalization challenges the classical interpretation of the objects of influence at-tempts,
employing a global governance lens can provide us with some (preliminary) answers to what
may be needed to conduct effective foreign policy in the contemporary world.
In a context of global governance, the objectives of foreign policy require directing one‘s ac-
tions not only at states, but at the entire range of actors and networks operant at various levels in
the global governance arena. Not in the least, the focus of global governance studies on transna-
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tional relations (Brühl/Rittberger 2001: 2) demonstrates the necessity for foreign policy to target
the societal level to a larger extent.
Further, global governance studies highlight that structures cannot be taken for granted. For-eign
policy is in this perspective not just about the (pragmatic) solution of problems in ad-hoc
coalitions or established institutions, but also about the (re-)definition of problems with a global
reach and about the definition of where and how to treat these problems. As a matter of fact, the
co-existence of many forms of governance arrangements may make it necessary - in terms of
greater effectiveness - to interpret and shape these structures to suit one‘s own objectives.
In synthesis, global governance offers a perspective on world politics that has important im-
plications for the understanding and study of foreign policy. It suggests, above all, that the exter-
nal sphere has - politically - changed so much that foreign policy actors may consider
formulating different (less actor-focussed and more structure-focussed) objectives and designing
new (com-munication-based) foreign policy instruments and strategies to realize these
objectives.
The new type of foreign policy that global governance projects may not exist yet, or may exist
only to some extent, but it seems necessary to adapt our analytical categories to the obvious
changes in the way actors interact in global politics. Further exploiting the synergies between
global governance and foreign policy may help to design a more appropriate way of analysing
foreign policy in a 21st century context.
2.3.4 Contrasting Traditional and Alternative Approaches To Foreign Policy
This part of the paper has served the purpose of clarifying how the core concepts of foreign
policy analysis have been interpreted by the classical IR theories and constructivism, and how
these interpretations have been challenged by globalization. Applying a global governance lens
to foreign policy analysis then demonstrated that these challenges can part ially be met if the
concept of foreign policy is updated in line with a more differentiated thinking about today‘s
world. Table 2 summarizes the main findings by comparing the traditional way of perceiving
foreign policy to the perspective proposed by the globalization and global governance literatures,
The Impact of Globalization on Foreign Policy of Bangladesh
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thus demonstrating that certain crucial features of changing world politics have so far been
neglected. Constructivism, as a meta-theoretical approach, does not fit with either of the two
perspectives. In Table 2, it has been placed on the side of the new perspectives, as it does
highlight some fairly new aspects with regard to foreign policy analysis.
We have argued that globalization and global governance do not make foreign policy obsolete,
but that they put pressure on it, demand for change and set the context for this change. Our
discussion of the classical interpretations of foreign policy and the fact that they continue to be
used in major current textbooks (Smith et al. 2008) demonstrate, however, that these still – and
despite all necessary and justified challenge - do have contributions to make to contemporary
foreign policy analysis. Everything point thus to the conclusions that foreign policy as a
complicated activity in a yet more intricate context is much too complex to be looked at through
a single lens. For the remainder of the paper, we will thus advocate conceptual and theoretical
pluralism, bringing together the various theoretical and conceptual offers discussed to develop
our own conceptual approach to the analysis of foreign policy in the 21st century.
Table 1: Contrasting traditional and new perspectives on foreign policy
Cluster Core analytical units
Traditional
perspective
(classical IR theories)
New, neglected
perspective
(constructivist reasoning, globalization,
global governance)
Internal sphere
Actors States, elites,
governmental actors
Governmental actors,
non-governmental
actors, societal actors
Interests and Goals (Bounded) rationality: definition of national
interests on basis of
―domestic‖ preferences
Interests more varied, issue specific, less
―egoistic‖, targeted at
structures, global public
goods
Decision Formulation Competition
of social forces in territorially
delim-ited space
Pluralistic competition
of multitude
of internal and external
social forces
Capacities Instruments Relational power;
traditional diplomacy:
Relational and
structural power;
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coercion and bargaining Public diplomacy;
communicative action:
arguing and deliberating
External Sphere Actors States, IGOs, non-state actors
Multitude of (types) at
multiple levels: states,
IGOs, INGOs, MNCs,
epistemic communities,
reli-gious movements,
media, societies,
individuals
Structures International institutions,
interna-tional law
Variable geometry:
formal and informal
institutions, networks,
rules
FP-Implementation Targets Other actors (states)
Multiple actors at multiple levels;
governance structures
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CHAPTER III
3. BANGLADESH FOREIGN POLICY RESPONSES IN THE
GLOBALIZED WORLD
3.1 THE UNITED STATES AND BANGLADESH
As globalization has placed the U.S. as the sole determinant of the world order and has assigned
her the seminal role in shaping the destiny of the humankind, it has to shoulder the greatest
responsibility in avoiding a course that may retract the globalization process. It is impossible to think of
the foreign policy of a country without defining its relationship with the United States.
Since the 1972 and especially after the free market policies moved Bangladesh towards closer
relations with the United States. After the restoration of democracy in 1991, relations have been
further strengthened especially during visits by Bangladeshi and American leaders to each other's
countries. United States President Bill Clinton was the first American president to visit the
country in 2000.
In the year 2008, the U.S. was already Bangladesh's most important economic partner. Bilateral
trade grew from $3.86 billion in 2008 to $4.87 billion in 2010. Even more encouraging, bilateral
trade rose 48 percent during the first quarter of 2011. If this trend continues, bilateral trade could
surpass $6 billion this year. It's even quite possible we could see our bilateral trade double in
five years (from 2008 to 2013). This is a remarkable achievement, especially given the fact that
these two countries are only slowly recovering from a financial crisis that caused a worldwide
reduction of international trade.
Based on the volume of U.S. imports from Bangladesh, it can be conservatively estimated that,
by 2010, U.S. imports helped to directly employ one million workers in Bangladesh. With U.S.
trade growing so rapidly, it is moving quickly towards supporting another million jobs. Since
each worker helps to sustain other family members, and their income indirectly supports many
other workers through their spending on the local economy, U.S. growing trade is supporting
millions of people in Bangladesh.
While Bangladesh exports to the U.S. still account for the bulk of our bilateral trade, U.S.
exports to Bangladesh are increasing even more rapidly. U.S. exports more than doubled during
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the first quarter of this year and are on track to exceed one billion dollars in 2011. This is
helping to create jobs in the U.S. while providing world-class products and services to consumers
and companies in Bangladesh.
At the same time, U.S. companies such as Chevron, GE and Conoco-Phillips are poised to
embark on major investment projects that will help Bangladesh address its energy shortages.
Chevron, already the largest foreign investor in Bangladesh, is preparing to expand gas
production in the next two years. Last month, GE partnered with Summit to sign agreements to
participate in three major power projects that will provide 1,000 megawatts of additional power
by 2013. And Conoco-Phillips is planning to explore for offshore energy resources that could
help to meet Bangladesh's long-term energy needs.
By undertaking billions of dollars in investments in Bangladesh, these companies will create
hundreds of jobs while bringing in world-class technical expertise to develop gas resources and
increase power generation. By helping to address gas and power shortages, the biggest economic
constraint in Bangladesh, these companies will play a key role in helping Bangladesh increase
economic growth and reduce poverty more rapidly.
During the past years, a steep fall in stock prices, a significant shift in balance of payments, and
increasing inflation have touched the global economy. Some of these trends have contributed to
reduced liquidity in the banking system. While these issues have created short-term economic
policy challenges, it is desired that Bangladesh's long-term outlook remains bright. It is also seen
that, despite its enormous potential and its dynamic business community, Bangladesh has not
been able to attract the level of foreign direct investment that is really necessary to increase
economic growth and accelerate poverty reduction.
Bangladesh should work with U.S. to address some of these challenges and help to further
strengthen their economic relationship. Creating entrepreneurship and a Bangladesh brand will
lift Bangladesh to a height which can make them emerge as the biggest exporter of garments
products.
In 2010 AmCham hosted a forum to discuss efforts to develop a Bangladesh brand. Progress is
seen in improving Bangladesh's image. Our growing trade speaks volumes. And the fact that
several blue-chip U.S. energy companies are poised to invest billions of dollars in Bangladesh
says a lot. The word is getting out that Bangladesh is a country with enormous economic
potential and promising business opportunities.
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Bangladesh needs to keep pace with the growth in bilateral economic relationship with U.S. as
the long-term outlook is even brighter. It is imperative that investments to increase gas and
power supply will make a big difference in boosting Bangladesh's economy. There will also be
progress on other projects to improve regional connectivity of the transportation and energy
infrastructure.
3.2 THE EUROPEAN UNION, EUROPEAN COMMISSION AND
BANGLADESH
European Union is the biggest export market of Bangladeshi readymade garments products.
Other than the garments products the European Union is a big hub for our other export products.
Besides, EU countries are playing an important role not only in our local economy by investing
on different industries, they are also making a big contribution in our economy by importing our
manpower. So, it will be a big determinant of development in the future for Bangladesh how it
takes its EU policy.
Relations between the European Union and Bangladesh have a glorious history. The EC-
Bangladesh Commercial Co-operation Agreement, signed in 1976 was replaced by a third
generation co-operation agreement in March 2001. The agreement paved the way for cooperation
on a broad range of areas including political dialogue, further developing the relationship. This
Country Strategy covers the period 2007 to 2013. It is drafted against the backdrop of the
following key challenges for Bangladesh:
A continued struggle in addressing the structural problems of poverty and to achieve the MDGs
by the target date of 2015.
Good governance problems that affect the efficient and effective delivery of basic public services
to the poor.
Potential economic and social short falls following the ending of the WTO textiles quota system
and the need to diversify the industrial base and to improve the enabling environment for
business.
Bangladesh needs to overcome the severe trade deficit it faces with the EU in the years to come
to have harmonious development situation. In the recent years, though Bangladesh has managed
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to export more products to the EU countries, the increased export has made the payment more
imbalanced.
Imports Exports Balance with EU and comparison to the world market is stated below (Billions
of Euros):
2009 2010 2011
Imports Exports Imports Exports Imports Exports
EU 5.8 1.0 6.7 1.6 8.6 1.7
World 15.9 9.3 15.3 10.3 20.5 11.0
Source: Eurostat and IMF
Table 2: Import-Export Comparison of Bangladesh with EU and World
The EU‘s strategy is grounded in the GoB‘s own response strategy to these challenges contained
in the Poverty Reduction Strategy Paper. At the same time, our strategy seeks to strike a balance
between social and economic development commitments. While we seek to support economic
growth and contribute towards the country‘s integration in the world market, it is increasingly
patent that growth alone is not enough – this is a clear message, for example, from the 2005 UN
Human Development Report – and we must also deal directly with the issues of exclusion and
poverty with a clear focus on achieving the MDGs. In order to increase the impact of our
measures and to promote greater efficiency in the use of resources, the EC will concentrate the
scope of its development commitments on three focal areas and two non-focal areas in the
changed global perspectives:
Focal areas
Human and social development
Good governance and human rights
Economic and trade development
Non-focal areas:
Environment and disaster management
Food Security and nutrition
The EC strategy must be seen as part of a broad donor landscape where donors will contribute
with diverse expertise and resources to a balanced aid package to Bangladesh. The EC‘s
commitment to donor coordination in Bangladesh is reinforced by the March 2005 Paris
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Harmonisation Conference and the decision by the majority of the donor community in
Bangladesh to develop their programmes in response to the Government‘s PRSP. The EC‘s
strategy has therefore been designed and will be implemented in cooperation with the other main
donors and in broad conformity with the Bangladesh Harmonization Action Plan which the
Government and Donors are developing in the context of the PRSP.
3.3 BANGLADESH CHINA RELATIONSHIP
China has already emerged as the most important partner of Bangladesh in the recent years.
October 4, 1975 the diplomatic relation was established between Bangladesh and China. But
after 37 years it is not only a diplomatic relationship but also a friendship between two countries.
The cooperation in Economy, Military, Culture & Education, Science and Technology and in
various sector helped to have a remarkable tie between the countries.
Li Xiannian Vice Premier of China at March, 1978 made the first ever visit by Chinese
leadership to Bangladesh. With time the relationship kept growing and in 1986 Li Xiannian
President of China visited Bangladesh and made the bi lateral relationship strong. By this time
China and Bangladesh started to maintain a close Commercial and Cultural ties and supported
Bangladesh with Military aid and Equipment.
Through the 90s the relation became closer with continuous support from China in and
cooperation in various sectors. Prime Ministers of 5th and 7th Parliaments of Bangladesh have
visited China respectively and the flow of cooperation was stable through the time. On October
4, 2000, Bangladesh Ministry of Post and Telecommunications memorial post stamp and made
the 25th anniversary of China-Bangladesh relation memorable. Chinese Ambassador appreciated
Bangladesh for consistent support towards China in various Issues and referred to China‘s
economic assistance of 1.8 billion Yuan (217 million U.S. dollars) to Bangladesh till that time.
In 2005, the Chinese Premier Wen Jiabao made an official visit to Bangladesh and both countries
declared 2005 as the ―Bangladesh-China Friendship Year.‖ The two countries signed nine
different bi-lateral agreements to increase their mutual relationship. At 2007, Bangladesh invited
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China to become an observer in the South Asian Association for Regional Cooperation
(SAARC). China has always supported Bangladesh and being a friend of Bangladesh in all
season of politics and economy. After Cyclone Sidr hit Bangladesh in 2007, China donated US$
1 million for relief and reconstruction in cyclone-hit areas.
Last year Bangladesh Prime Minister Sheikh Hasina along with an array of top ministers and key
officials has visited China. It is widely believed that with the visit the relationship between two
countries have strengthened.
China is currently Bangladesh‘s biggest trade partner. Bilateral trade reached as high as USD 4.6
billion (approx) reflecting a very sharp growth over time. From Bangladesh leather, cotton
textiles, fish are the mainly imported products by China and China mostly exports textiles,
machinery and electronic products, cement, fertilizer, electronics, raw silk to Bangladesh. Some
may notify the trade imbalance between the countries but it should be remembered and pointed
that China has kept supporting Bangladesh with various projects, aids, investments, development
policies, infrastructure, education and international cooperation. With these meaningful support
and mutual cooperation the tie between two countries keeps healthy.
Many believe that there are a lot of things that Bangladesh should learn from China in the
Globalized world. There are enormous chances for Bangladesh to develop and grow with the
support of China. The most important things that Bangladesh should learn from China are
Discipline, Unity and willingness of development. With different political situation and
education system it would not be easy to follow or develop similar policy of development as
China, but it would be made in step by step in different levels of economy and society. For
Bangladesh it is a long way to go. It is not only about support, aid and loan. It is all about
development with time and growth with cooperation. This is well expected that China and
Bangladesh bilateral relation will grow and the ―Comprehensive Partnership of Cooperation‖
will be deepen and expanded with time.
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3.4 BANGLADESH INDIA RELATIONSHIP
3.4.1 Cultural Ties
Both Bangladesh and the Republic of India have had a long common cultural, economic and
political history. The cultures of the two countries are similar. The two Indian states of West
Bengal and Tripura speak the language that is also spoken in Bangladesh, Bengali. In 1947, India
became independent from the British India of the United Kingdom and was split into Pakistan
and what is now the Republic of India. At that time, Bangladesh was known as East Pakistan,
before simply as East Bengal. In 1971, there was a war which ended with East Pakistan
becoming independent (and renaming itself to the People's Republic of Bangladesh). In this war,
Indian troops fought together with East Pakistani ones, against West Pakistan. Today, West
Pakistan is called Islamic Republic of Pakistan.
To most outsiders, the people of the two countries are indistinguishable. The cultures of the two
countries are similar; in particular India's West Bengal and Tripura states and Bangladesh are
both Bengali-speaking. Tripura is called and was known as the Chittagonian Plains of Bengal:
since the Sylhet District was once part of the Chittagong Division, during Pakistani rule. Also the
people of Tripurans formed an enclave of the eastern side of the country, so Bangladesh itself
forms an enclave of eastern side of Northeast India completely surrounded on three sides.
3.4.2 Areas of Contention
1. A major area of contention has been the construction and operation of the Farakka
Barrage by India to increase water supply in the river Hoogly. Bangladesh insists that it
does not receive a fair share of the Ganges waters during the drier seasons, and gets
flooded during the monsoons when India releases excess waters. See also Sharing of
Ganges Waters.
2. There have also been disputes regarding the transfer of Teen Bigha Corridor to
Bangladesh. Part of Bangladesh is surrounded by the Indian state of West Bengal. On 26
June 1992, India leased three bigha land to Bangladesh to connect this enclave with
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mainland Bangladesh. There was dispute regarding the indefinite nature of the lease. The
dispute was resolved by an mutual agreement between India and Bangladesh in 2011.
3. Terrorist activities carried out by outfits based in both countries, like Banga Sena and
Harkat-ul-Jihad-al-Islami. Recently India and Bangladesh had agreed jointly to fight
terrorism.
4. Bangladesh has consistently denied India transit facility to the landlocked North Eastern
Regions of India. Although India has a narrow land link to this North eastern region,
which is famously known as "India's Chicken Neck"
5. Illegal Bangladeshi immigration into India. The border is porous and migrants are able to
cross illegally, though sometimes only in return for financial or other incentives to border
security personnel. Bangladeshi officials have denied the existence of Bangladeshis
living in India and those illegal migrants found are described as having been trafficked.
This has considerable repercussions for those involved, as they are stigmatised for having
been involved in prostitution, whether or not this has actually been the case. Cross border
migrants are also at far higher risk of HIV/Aids infection.
6. Continuous border killing of Indian and Bangladeshi people, aiding illegal immigrants,
helping in armed decoity, fake money transfer and illegal drug trades by both Indian and
Bangladeshi people are the major problems between Bangladesh and India.
7. Both Bangladesh and India make claims over the same seawater at the Bay of Bengal.
Now India has proposed the settlement of the problem through bilateral talks. But,
Bangladesh is willing to have it through legal fights after a boost in the confidence as
resolved with Myanmar.
8. There was a minor glitch in their relation when Indian Prime Minister Manmohan Singh
accidentally mentioned that 25% of Bangladeshis are anti-Indian, during an informal
press meet.
3.4.3 Recent Developments
In September 2011, the two countries signed a major accord on border demarcation to end the 4-
decade old disputes over boundaries. India also granted 24-hour access to Bangladeshi citizens in
the Tin Bigha Corridor. The agreement included exchange of adversely held enclaves, involving
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51,000 people spread over 111 Indian enclaves in Bangladesh and 51 Bangladesh enclaves in
India. The total land involved is reportedly 7000 acres.
On 9 October 2011, Indian and Bangladeshi armies participated in Sampriti-II (Unity-II), a 14
day long Joint military exercise at Sylhet to increase synergy between their forces.
Though no concrete decision regarding the enclave disputes has been made out, it is positive that
the people of all the 111 enclaves of India inside Bangladesh celebrated the Independence Day of
Bangladesh on March 26, 2012. This demands a more fruitful out come from Indian side which
will lead the bilateral relation of these two countries to a new destination.
Bangladesh needs to develop a bilateral relation and improve the balance of payment situations
which Bangladesh faces a great deficit. Recently India has liberalized its strategy regarding the
trade and entry of some Bangladeshi products to Indian Market. Still in the globalized world as it
is important for Bangladesh so also important for India to increase Bangladesh‘s share in
bilateral trade relations.
Geographically Bangladesh is bounded by India in its three sides except the southern part. So it
will be convenient for Bangladesh to concentrate on export-import trade with India rather than
with some other country. India is also wanting transit from Bangladesh to reach out its land
locked eastern part. This will shape the balance in the bilateral relations of the two countries. In
the changed situations Bangladesh should earn the best from this transit bargain.
It is believed that Bangladesh has the greatest threat of military attack from India in case of a
diplomatic failure. But, alongside military security, Bangladesh must concentrate on the
environmental issues which the country is set under great threat in the recent years. India has
planned to connect the river beds to supply water to the mid Indian states for better agricultural
yield. Besides, the Tipai Mukh dam has appeared to be the mostly talked about issue in the
recent times which is under construction on the river Barak. Bangladesh needs more and sincere
political commitment for the solution to this problem.
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3.5 BANGLADESH JAPAN RELATIONS
Bangladeshi-Japanese relations were established in February 1972. Japan is Bangladesh's 11th-
largest export market; imports from Bangladesh make up 26% of all Japanese imports from the
least developed countries, second only to those from Cambodia. Common imports from
Bangladesh to Japan include leather goods, ready-made garments, and shrimp. By 2004, Japan
had become Bangladesh's fourth-largest source of foreign direct investment, behind the United
States, United Kingdom, and Malaysia. Japan's political goals in its relationship with Bangladesh
include gaining support for their bid to join the United Nations Security Council, and securing
markets for their finished goods. Japan is a significant source of development aid to Bangladesh.
In the globalized world, Japan Bangladesh relationship is one of the most important issues to be
considered by Bangladesh. The most developed country of Asia has created a great horizon for
Bangladeshi products which Bangladesh should make the best use of. Bangladesh should
maintain a good relation not only to benefit its trade and security, but also to get Japanese
support in the situations where Bangladesh will need more and more parties to be on
Bangladesh‘s side to achieve its bargains.
Bangladesh is eyeing on getting more support from Japan in the years to come. To get the best
from the globalized market, Bangladesh needs to come up with things which will make it a hub
for the Asian nations. The deep sea port is the main concern of Bangladesh and alongside this, it
eyes on the international airport.
3.6 BANGLADESH AND OTHER SOUTH EAST ASIAN NATIONS
Bangladesh has been maintaining a very good and friendly relationship with the South East
Asian nations. Recently the Rohinga issues with Myanmar and disputes regarding the Maritime
boundary have set Bangladesh to rethink its relationship with Myanmar. Bangladesh has noticed
no positive response from Myanmar with many bilateral talks performed so far. To intensify this
tension Myanmar has further added the wire fence in the border and the disputes regarding the
maritime boundary. Though it was settled by UNCLOS in the recent days favouring Bangladesh,
it is a great challenge for Bangladesh to demarcate the sea and get its share in a peaceful way.
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What Bangladesh need to emphasize in the changed perspectives of the globalized world is
attracting FDI from South East Asian nations. With Singapore, Thailand, Indonesia and Malaysia
Bangladesh has already developed a friendly relationship over the last decades. These nations are
the leaders in the region and trying to maximize their GDP growth. Their extended economic
activities will demand increased flow of labour and Bangladesh has the best opportunity if it can
use its manpower for the employment in this region. Since food security will be a big challenge
for Bangladesh in the years to come, alongside increasing agricultural produces, Thailand,
Indonesia, Vietnam and Cambodia should be kept in good terms and an emergency basis food
grain export environment should be developed with these countries.
3.7 BANGLADESH AND ITS (BILATERAL AND MULTILATERAL)
PARTNERS
3.7.1 Bangladesh: Foreign Aid
The government is aware of the fact that because of the existing international economic
environment the amount of foreign aid so essential for developing countries like Bangladesh is
fast dwindling. The conditionalities of aid are also becoming stringent. The government has,
therefore, taken appropriate initiatives for proper utilization of foreign aid. The country's
development partners at the same time, ought to acknowledge that Bangladesh not only needs
more aid but also better aid.
The government has given the highest priority to implementing with utmost efficiency the annual
development programme (ADP) which allocates domestic and foreign resources to different
sectors of the economy. From the economic and social points of view, agriculture is the country's
most important sector as it contributes 18.4 percent of GDP and about 70 percent of its 140
million people are directly or indirectly dependent on it for their livelihood. But because of
declining growth in agriculture in the past the standard of life of the small and marginal farmers
had been going down forcing the nation to become increasingly dependent on food imports.
The government has, therefore, decided to increase allocation for agriculture substantially and
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offer a wide range of incentives to the farmers including liberal credit to raise production and
generate on-farm and off-farm employment for the rural poor. An Agriculture Commission has
also been set up to recommend long-term policy reforms to boost the sector.
3.7.2 IMF and Bangladesh
IMF is one of the most influential development partners of Bangladesh. Due to its share in the
financing for making the budget of Bangladesh, it is a matter of importance for Bangladesh to
decide how much it wants influence in formulating its own policy. In the recent years
Bangladesh has remarkably reduced its share of foreign aid in percentage in the budget. But the
flow of ADP and other long term development projects has always been a concern for the
country. It is high time for Bangladesh to design its own policy regarding both monetary and
financial matters.
An International Monetary Fund (IMF) team visited Dhaka during February 7−15, 2012. It
continued discussions on the government reforms aimed at addressing the macroeconomic
pressures facing Bangladesh and building sustainable growth, for which support is being sought
from the IMF under the Extended Credit Facility (ECF). During the visit, the team met with
Minister of Finance Abul Maal Abdul Muhith, Economic Advisor to the Prime Minister Mashiur
Rahman, Bangladesh Bank Governor Atiur Rahman, Finance Secretary Mohammad Tareque,
and other senior officials, as well as with various development partners and private sector
representatives.
Bangladesh wants a massive economic reform program for which they are seeking support under
ECF. In this context, demands should be centered on the authorities‘ plans to undertake sustained
macroeconomic stabilization measures and supportive structural reforms aimed at reducing
external and fiscal imbalances, rebuilding a foreign reserve buffer, and putting Bangladesh on a
higher sustained growth path.
In support, the authorities have taken a number of upfront measures to address macroeconomic
pressures currently confronting Bangladesh. Foremost, greater exchange rate and interest rate
flexibility is being allowed, helping to absorb external pressures and transmit necessary
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monetary policy tightening, in line with achieving program objectives. Discussions also centered
on adopting an appropriately restrained fiscal policy, ensuring a continued sound debt
management strategy, and undertaking growth-critical reforms in tax policy and administration,
public financial management, the banking and financial sectors, and trade and investment
policies.
Much focus should be placed on measures needs to address fiscal pressures, which stem mainly
from rising fuel imports and associated subsidy costs, and to move forward on a new value-
added tax law, as a key plank of the reform program. With timely progress on these and other
agreed commitments, the Bangladesh authorities expect to reach an ad referendum agreement
with the IMF on an ECF arrangement in the near future.
Bangladesh needs more and more free and liberated steps from IMF in the years to come to
maintain the pace it wants in its own way. Strong negotiation with this institution and support is
a must for Bangladesh to cope the situations it faces in the perspective of the globalization and
free trade.
3.7.3 World Bank and Bangladesh
Bangladesh needs a foresight more effective to maintain a growth supporting relationship with
the World Bank. It is one of the biggest development partners of the country. World Bank
finances Bangladesh in development projects that Bangladesh takes mainly for its infrastructural
development. Over the few decades it has supported Bangladesh in various projects. Bangladesh
to the following position seeks more and more support for its ever increasing demands in the
infrastructural development:
International Reserves (US$ 11.175 billion (Source: World Bank; Data updated: November
2010)
Gross Domestic Product - GDP (US$ 115.387 billion (2009 estimate)
GDP (Purchasing Power Parity) (277.919 billion of International dollars (2009 estimate)
The Impact of Globalization on Foreign Policy of Bangladesh
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Real GDP growth
Year GDP (%)
2000 5.6
2001 4.8
2002 4.8
2003 5.8
2004 6.1
2005 6.3
2006 6.5
2007 6.3
2008 6
2009 5.8
2010 6
2011 6.1
Source: BBS
Table 3: Real GDP growth of Bangladesh
GDP per capita - current prices (US$ 799 (2011 estimate)
GDP per capita – PPP($1,667 International Dollars (2009 estimate)
GDP (PPP) - share of world total
1980 1990 2000 2010 2015**
0.24% 0.25% 0.28% 0.35% 0.39%
**Forecast
Table 4: Bangladesh GDP Share in World Total
GDP - composition by sector
agriculture: 18.4%
industry: 28.6%
services: 53% (2011 estimate)
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In the recent times Bangladesh has come across a cold relation with the World Bank centering an
allegation on the Padma Bridge project. The institution has refused to provide its promised
money as it showed some marks of irregularities in the entire tendering process. It is however
denied by the government. Yet, Bangladesh must keep good terms with this institution to walk
the long way towards its development in the more challenging years to come.
3.7.4 WTO and Bangladesh
Bangladesh‘s ability to translate WTO‘s (World Trade Organization) flexibilities for the world‘s
poorest nations into trade and development outcomes is an example for all the least developed
countries (LDCs), visiting WTO DG Pascal Lamy said in Dhaka. But this is also remarkable that
if Bangladesh cannot afford to maintain the desired global competiveness its trade sector will get
a great shake in the years to come. Bangladesh has done particularly well and is well-positioned
for the future of course, if Bangladesh is to continue in its leadership role it needs leaders, a
vibrant private sector, active civil society, and profound social transformation mean Bangladesh
is poised to make the next leap to integrate into the global economy. Open markets spur
innovation and change; these ideas should be sincerely adopted by Bangladesh which is a
budding country with respect to its industries and trade. Trade position and export import
comparison of Bangladesh in the last few years are stated bellow:
Year Import (Billion US $ ) Export (Billion US $ )
2001-02 8.54 5.99
2002-03 9.66 6.55
2003-04 10.90 7.60
2004-05 13.15 8.65
2005-06 14.75 10.53
2006-07 17.16 12.18
2007-08 20.37 14.11
2008-09 21.44 15.57
Source: BBS
Table 5: Import-Export of Bangladesh
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Amid its huge trade deficit, WTO encourages Bangladesh to continue its leadership role on trade
issues among the LDCs. On Bangladesh‘s RMG sector, Economists here and elsewhere issued
dark predictions of doom for Bangladesh and its fledgling garment sector. According to WTO,
the reality has been somewhat different. Bangladesh‘s garment sector has not just survived, it has
thrived. Removing the quotas revealed Bangladesh's comparative advantage. Unilateral
preferences have also helped Bangladesh's competitive edge.
The simplification of the rules of origin governing duty- and quota-free access to the EU market
in 2010 has led to a surge in Bangladesh's garment exports. It might be true but there are a series
of factors will affect the overall trade of a growing country like Bangladesh in the years to come.
Bangladesh has got an impressive boom in the RMG sector, no doubt. But, it is not as much for
its quality as it is for the low price of its products. As for other products like medicine and the
ship building industry, which are promising here, affects will make in the changed quota free
world. If TRIPS comes in effect, the entire medicine industry will be affected by the price hike
of raw materials and payment for rights. So will be in ICT sector, which is the promising most
for the future development.
Besides, if the Intellectual Property Rights are to be followed strictly by countries like
Bangladesh, it will throw us in a big challenge as we rarely have anything that we can sell the
right of, rather in most cases, we will have to pay for the rights.
In order to enhance trade and cope with the globalized world, Bangladesh has associated with
some Regional Trade Agreements. Some Bilateral Trade Agreements (especially with Pakistan,
India and Sri Lanka) are also in offing. The overviews of those agreements are as follows:
3.7.5 SAARC Preferential Trading Arrangement (SAPTA)
To promote and sustain mutual trade and the economic cooperation among the SAARC countries
through exchanging concessions on trade measures SAARC Preferential Trading Arrangement
(SAPTA) was signed in 11th April 1993 and operationalized in December 1995 to give limited
preferential market access to exports of member countries. Since 1995 there were many rounds
The Impact of Globalization on Foreign Policy of Bangladesh
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of negotiation for tariff concessions. Negotiations were confined solely to the issue of tariff cuts.
The issue of para-tariff and non-tariff measures was left out altogether. Though Bangladesh has
not been remarkably benefited from this, it has a great scope for Bangladesh in the changed
perspective and globalized market system. The member countries of the Agreement are
Bangladesh, Bhutan, Maldives, India, Pakistan, Nepal and Sri Lanka. The basic principle of
SAPTA that could benefit Bangladesh are:
SAPTA shall be based on the principle of overall reciprocity and mutuality of advantages
in such a way as to benefit equitably all contracting states taking into account their
respective levels of economic and industrial development, the pattern of their external
trade, trade and tariff policies
SAPTA shall be negotiated step by step, improved and extended in successive stages with
periodic review.
The least developed contracting states shall favourable preferential treatment
SAPTA shall include all products, manufactures and commodities.
Negotiations were conducted on product-by-product basis (positive list approach). Concessions
offered in the first SAPTA round were very modest. Only 226 products at HS 6-digit level were
conceded in that round but the number of products offered concession accelerated in the second
and the third rounds. At the end of the fourth round, a total of 6243 tariff line concessions were
exchanged, of which 3942 were exclusively for the four LDCs – Bangladesh, Bhutan, Maldives
and Nepal, as against 2301 for non-LDC members. The LDCs along with Bangladesh, thus
received relatively more favourable treatment in the exchange of tariff concessions. The depth of
tariff concession offered to LDC members ranged between 5 and 100 percent. Tariff cuts offered
by India were the deepest, varying between 25-100 percent. The SAPTA rules of origin require
non-LDC members to input at least 40 percent local material content. LDC members are required
to input at least 30 percent. Bangladesh should try to maintain a good position in this regard for
the continuous growth of its trade in this region.
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3.7.6 The Agreement on South Asian Free Trade Area (SAFTA) and Bangladesh
Since the Agreement on South Asian Free Trade Area (SAFTA) was signed on 6 January 2004 in
Islamabad, Bangladesh has been trying to make an influential emergence in this region. SAFTA
has entered into force from 1st January 2006 after completion of national ratification by all
member countries. Tariff reduction under SAFTA has started from 1 July 2006. The member
countries of the Agreement are Afghanistan, Bangladesh, Bhutan, Maldives, India, Pakistan,
Nepal and Sri Lanka.
All member countries maintain a sensitive list. Products appearing in the sensitive lists will not
enjoy tariff concessions. The sensitive lists of Bangladesh contain 1254 items for Non-LDCs and
1249 items for LDCs. The sensitive list of India contains 868 items for Non-LDCs and 480 items
for LDCs; the list of Pakistan contains 1169 items, the list of Sri Lanka 1065 items, the list of
Nepal 1299 items, the list of Maldives 671 items, the list of Afghanistan 1072 and the list of
Bhutan 157 items.
Bangladesh was benefited by the reduction of tariff to 0-5 % for LDCs in 3 years by Pakistan,
India and Sri Lanka. Such tariff reduction will be done by LDCs in 10 years. Tariff reduction (0-
5%) will be accorded to those items which do not appear in the sensitive lists.
In the changed perspectives, Bangladesh should make remarkable steps to make these facilities
friendlier for its trade boost. The general criterion of SAFTA Rules of Origin is CTH (Change of
Tariff Heading) + 40% value addition for Non-LDCs and CTH + 30% value addition for LDCs.
There is also a product specific rule for 191 items where general criterion does not apply. Under
regional cumulation rules of SAFTA, there is the provision of value addition criterion only. In
this case, the regional value addition is 50%, of which 20% has to be in the final exporting
country.
India has provided to LDCs duty free market access to all products under SAFTA (excepting the
products retained in their sensitive list) which has come into effect from 1 January 2008.
Recently India has offered duty free tariff preferences (DFTP) scheme for all 50 LDCs.
Bangladesh is considering the proposal of signing the letter of intent. Bangladesh made a
The Impact of Globalization on Foreign Policy of Bangladesh
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successful duty free access of 8 (eight) million pieces of apparel articles in one calendar year
covered under the SAFTA Sensitive List of India without any conditionalities of sourcing of
fabrics or port restrictions under a Memorandum of Understanding Signed between The
Government of the People‘s Republic of Bangladesh & The Government of Republic of India on
16 September 2007.
India, Pakistan and Sri Lanka will extend technical assistance to LDC members for development
of trade-related capacity. The technical assistance will be in the forms of training, study, seminar,
workshop, export promotion projects, product development, trade policy formulation, etc.
3rd SAFTA COE and 3rd SAFTA Ministerial Council meeting was held in New Delhi on 1-2
and 3 March 2008 respectively. Bangladesh delegation took part in the SAFTA COE meeting
and honourable advisor for commerce attended the ministerial council meeting. Bangladesh
position was firmed up through an inter-ministerial meeting held on 18 February 2008 under the
chairmanship of Secretary Ministry of Commerce.
Protocol of accession of Islamic Republic of Afghanistan to Agreement on South Asian Free
Trade Area was signed during the 15th SAARC Summit held in Colombo on 2-3 August 2008
and a summary was sent to the cabinet committee on 15.10.08 for post facto approval and
ratification of the protocol. The cabinet committee approved the approval and ratification
proposal of the protocol on 26 October 2008 and this decision has been communicated to
Ministry of Foreign affairs for onward transmission to SAARC Secretariat. In the globalized
world Bangladesh‘s policy should be to capture as greatly as it can the market of this region and
get the biggest possible tariff off.
.
3.7.7 Bangladesh and BIMSTEC
Bangladesh should be more keen to making a better relationship with the BIMSTEC countries.
BIMSTEC covers a huge market and countries including India and Thailand are here in the
regional organization. So, it can be the most efficient way of developing a friendlier relationship
with these countries. Bangladesh is a new in the sectors like ICT which needs much concentrate
in the years to come. Myanmar has a strong energy reserve and in the near future Bangladesh
The Impact of Globalization on Foreign Policy of Bangladesh
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will have a great crisis of energy . So, BIMSTEC can be way out to getting the extra energy to
meet the increased demand. Besides, Bangladesh has a true potential in the tourism sector which,
in this region, is led by India and Thailand. Bangladesh can get the best from this region and it
can use these countries for the publicity of the natural resources that Bangladesh has. Next,
Bangladesh can make this region a regular market for its products like garments, vegetables and
agricultural products.
3.7.8 BIMSTEC Trade Negotiating Committee (TNC) and Bangladesh
A BIMSTEC Trade Negotiating Committee (TNC) has been constituted to conduct negotiations
on trade in goods, trade in services and investment. The Committee has undertaken negotiations
on trade in goods, trade in services and investment. The BIMSTEC FTA on trade in goods was
scheduled to enter into force from 1 July 2006. Negotiations on trade in goods are yet to be
completed due to divergence in opinion. It has already held more than 20 meetings. Bangladesh
needs a strong negotiation team to reach the member countries to get highest benefit.
Under the Agreement, in case of First Track products, non-LDCs will open up their markets for
the products of LDCs in 1 year and LDCs will do the same for non-LDCs in 5 years. On the
other hand, for Normal Track products, non-LDCs will open up their market for the products of
LDCs in 3 years and the LDCs will follow 10 year schedule in order to open up their markets for
the products of non-LDCs. Least Developed Member Countries of BIMSTEC FTA will enjoy
special and differential treatment and Bangladesh should try to get the best from this.
3.7.9 Asia Pacific Trade Agreement (APTA)
After being established in 1975, the Bangkok Agreement has recently been revised and renamed
as the Asia Pacific Trade Agreement (APTA). The APTA has come into force from 1 July 2006.
The APTA contains consolidated list of tariff concessions granted by member countries to each
other. Under this agreement, China has provided 100% tariff concessions to 83 items of
Bangladesh at 8-digit level and Republic of Korea has provided 100% tariff concessions to 139
items at 10-digit level.
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3rd round of trade negotiations under this preferential trading bloc was completed in 2006. The
4th round of preferential tariff negotiations has been kicked off according to the decision of the
2nd Ministerial Council held in Goa, India on 26 October 2007. In the 4th round tariff
negotiations member countries negotiating on exchange on tariff concessions, Trade Facilitation,
Trade in Services, Investment and Rules of Origin. Bangladesh is participating to the working
groups on the framework agreements on Trade Facilitation, Trade in Services, Investment and
Rules of Origin.
To continue the preferential tariff negotiations, Bangladesh should meet with China, South Korea
and Lao PDR keeping in mind that the world is a more competitive one and getting more
competitive every day. Bangladesh delivered the request list on tariff concession to Lao PDR.
China offered tariff concessions at 50% on 1058 tariff lines, which they indicated will be
applicable to all countries. In this offer list, no special concessions were made to LDCs.
Bangladesh handed over its initial offer list to China reserving the right to alter modify it if need
be. The offer list of Bangladesh covered 78 products with margin of preference ranging from
30% to 70%. Bangladesh should not lose the simplest chance of tariff preference and
negotiations because the boost in its trade is highly dependent on these factors.
3.8 ENVIRONMENTAL CONCERNS AND BANGLADESH‟S FOREIGN
POLICY
Over the last few years the countries like Bangladesh has been the worst victim of climate
change. It has appeared to be the greatest threat to continue sustainable development with all the
threats relating the environment. The increasing industrialization has been polluting all the
elements of the nature making it tougher every day to maintain the smooth growth in the future
years. Besides, the rivers and the cities are deteriorating every year. So, it is a must for
Bangladesh to come in partnership with developed countries for technical support to combat
climate change and pollution.
It is widely believed that countries like Bangladesh have the least share in global pollution and
climate change. But, unfortunately these countries are the worst victim of its outcome. So, the
The Impact of Globalization on Foreign Policy of Bangladesh
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concept of compensation comes for these countries to combat climate change. Bangladesh needs
to come up with strong bargaining to recover the compensation money.
Next, the concept of carbon trading is an innovation in the recent years. Bangladesh also has a
good prospect of earning a handsome amount from its selling of the carbon reserves. Huge
forestation and strong negotiating ability are the precondition for such a gain. So, in the
globalized world, there is no alternative of a strong and intelligent set of diplomats to hold a just
position in the challenging situations.
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CHAPTER IV
4.1 RECOMMENDATIONS
In the foregoing contexts of challenges arising from globalization, and the consequent digital and
societal divides, globally and nationally, it is imperative for Bangladesh to make the right move to
maximize the benefits from, and minimize the downscale of, globalization so as to create both a
sustainable and profitable world. The question remains: in an international system that is still passing
through globalization the challenge facing the country is how to formulate a suitable foreign policy
to ensure its growth that is both sustainable and profitable in an environment where major
decisions affecting its national life are often determined by international market forces? There are
no easy answers, as the wheels of globalization are moved by bodies such as the WTO, the World
Bank and the IMF that are controlled by the world's advanced and developed nations with the
driving motivation of marketing their own high technology, products and services among the less
advanced, developing or poorer nations like Bangladesh.
Again in this globalized world a fully finished product, no longer has one single birthmark; it has
multiple birthmarks since several countries have gone to produce it. A Compaq computer, in that
sense, is no longer entirely American, or a Toyota car fully Japanese. The final product of both
these items will have components made in several countries of the world. Put differently, unlike
the previous internationalization of things, in the globalization phase of capitalism the thing itself
is the product of the international or global market. The implications for Bangladesh can hardly
be minimized. In such a condition Bangladesh must focus on its competitive advantages in
formulating bi-lateral policies to have its share in this global product and service market.
Apart from our clothing industries success in Europe and USA a demand for Bangladeshi cuisine
is increasing in those markets. If we focus on exportation of semi-skilled manpower in catering
and cooking sector we could diversify our remittance sources and can earn a lot.
Now the world is fighting and striving for energy. And Bangladesh is looking forward to achieve
its mid-income status by 2021 which requires boosting up its economic growth to double digit
which again requires huge energy. So in such a scenario Bangladesh must be very prudent in
The Impact of Globalization on Foreign Policy of Bangladesh
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negotiating with its regional and international partners regarding energy policies. Bangladesh has
already signed MoU with Myanmar and India for purchasing electricity. Again the internal
sources of energies e.g. gas, coal etc. must be used strategically.
Technology and science must get higher priority in national development planning strategy, with
IT being made a thrust sector and greater allocation of resources being made so that private and
public sectors may work hand in hand. To the same end the knowledge-cum-resources of the
non-residential Bangladeshis must be mobilized. In line with that Export of manpower must
focus on IT skill transfer. In this regard our foreign policy should be so focused to encourage the
foreign partners to establish need based technical institutions in Bangladesh to create skilled
manpower.
Economic vulnerability must be avoided by diversifying the exporting sectors. It is time that we
explore service sectors but for that bi-lateral relationships must be aligned first. Thorough
different trade shows we could attract potential markets to our service sectors.
In this globalized world our cultural heritage must be preserved and promoted through branding.
But while we must be firm in preserving our cultural heritages and national pride we must
flexible also in adapting the Good and beneficial aspects of other cultures.
Succinctly, what Bangladesh needs is a well-articulated comprehensive policy vision, based on
systemic changes—current and future—encompassing democratic evolution and governance, internal
reforms and external relations, coupled with a strategy of sustained growth that is to be pursued by a
well-meaning and forward looking leadership.
In the absence of such a vision and a proper leadership to attain those objectives envisioned with persuasive
determination and exemplary efforts civil conflicts are likely to widen and the country would
continue to grope in wilderness in an increasingly globalized world. In that case the oft-repeated aspiration
of'emerging tiger' or of 'Sonar Bangla' will remain highly illusive and a distant dream.
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4.2 CONCLUSION
In the context of massive change in all aspects like global security, trade and commerce,
competitiveness and relation-building, Bangladesh needs to formulate policy assuring the
secured flow of elements to maintain a smooth and desired growth rate. Since the emergence of
Bangladesh as a strong competitor in the global market, has drawn the attention of buyers in
various markets regarding quite a few products, it should be the basis of all policies that it will
emphasis on henceforth. It is high time Bangladesh came out of its wide dependency on foreign
aid and concentrate on collecting more and more remittances by means of its huge manpower.
The huge deficit in foreign trade can only be balanced by producing more products and services.
Industrialization is a must to poise the export graph from the negligible variation to a more
product diversity. The increased demand of food has left grounds to be thought whether to
damage the environment to produce more food grains conventionally and throw the whole
process of future development at risk or to make a way out towards a more effective and
friendlier way of production to make it sustain.
Not only should Bangladesh aim at formulating financial and commercial policies with the
globalized world, but it should extend cultural, military and environmental emphasis for the
overall and complete security of the country. The security at the Bay of Bengal is one of the most
significantly felt necessities that the country should maintain as it can open a new horizon to the
nation‘s increased demand of minerals including energy.
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