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Books on Bangladesh
REPUBLICAN REFERENCE
Area (sq.km)
144,000
Population
144,319,628
Capital
Dhaka
Currency
taka (BDT)
President
Iajuddin Ahmed
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Update No: 009 - (02/10/06)
BIASED CARETAKER GOVERNMENT
Bangladesh's main opposition party Awami League is beginning a nationwide
agitation to 'resist' the appointment of Justice K.M. Hasan as chief of the
caretaker government, a move that has given rise to fears that it could lead to
a political deadlock ahead of the January elections. The differences between the
government led by Prime Minister Khaleda Zia and the opposition alliance widened
in the last few months giving Bangladesh a little over a month to decide whether
its 15-year uninterrupted run of parliamentary democracy shall continue smoothly
or meet with a politico-constitutional deadlock. By Oct 27, when the tenure of
the Zia government will end, Bangladesh will have to put in place the chief of a
caretaker government acceptable to all parties, and an election machinery, to
conduct the parliamentary elections. The government and the opposition have
failed to negotiate on 'electoral reforms'. Differences persist on the
autonomous body that conducts elections. Chief Election Commissioner M.A. Aziz
has been embroiled in public spats over preparation of electoral rolls. The
opposition says Hasan is partisan, having been an activist of the ruling
Bangladesh Nationalist Party and cannot be trusted to hold free and fair polls.
Many believe that the elections could be postponed if stalemate persists. It has
only added to speculation as to who would 'benefit' from it, making a dialogue
that much more difficult. The Daily Star says formation of the next caretaker
government could prove difficult, as 'efficient and neutral persons' might
hesitate to become its advisers. Bangladesh has had three parliaments since
1991. However, prospects of a political breakdown have revived fears that the
parliamentary process itself might be under threat in the young nation that has
witnessed phases of martial law rule from 1975-1990. The National Democratic
Institute (NDI) team headed by former US minority Senate leader Tom Dashle, has
highlighted Zia government's efforts to curb extremism, but notes that there is
widespread distrust of the government machinery, the election body and the
police. While Left extremists have always taken advantage of a weak government,
Islamist militancy has been on the rise in the last five years. The
parliamentary elections in 2001 and its aftermath witnessed unprecedented
violence against religious minorities and political dissidents. The trend has
persisted since with the country witnessing increased political violence,
including attempts on the life of the Leader of the Opposition, Sheikh Hasina
(2004), and bomb explosions across the country (August 2005).
POLICE VIOLENCE
Separately, this month, at least 50 people, including a magistrate and two
policemen, were injured in clashes between security forces and opposition
activists were protesting the police beating of a local MP during a previous
demonstration. The clashes erupted in northern Nilphamari district when
activists from the main opposition Awami League tried to enforce a half-day
general strike to protest police beating of local MP Asdauzzaman Noor, who has
been hospitalized, during Tuesday's demonstrations in Dhaka, the private ATN
Bangla channel said. Police used batons to disperse stone throwing activists
that left the magistrate, two policemen and 47 others injured, the report said,
adding tension prevailed in the district. A similar strike was also enforced in
western Sirajganj district to protest the police action on former Home Minister
Mohammad Nasim, a lawmaker from the Awami League, but there were no reports of
violence. Nasim has also been hospitalised with a broken arm and heart
condition, ATN Bangla said. More than 150 people were injured on Tuesday in
fierce clashes between police and activists from the Awami League-led 14-party
opposition alliance in their bid to lay a siege of the office of Prime Minister
Khaleda Zia. The opposition is demanding electoral reforms to ensure a free and
transparent vote, but Zia has rejected the demands by accusing her rivals of
trying to foil the polls.
UK AND US REPORTS ON BANGLADESH'S ELECTIONS
UK Parliamentary Human Rights Group said the prospect for free and fair
general elections in Bangladesh are looking bleak with only a month to go before
the caretaker government takes office. Lord Avebury, vice-chair of the group,
made the comment while chairing a seminar on 'Bangladesh: Logjam on the Road to
Free and Fair Elections' in the House of Lords on September 27. "The US
National Democratic Institute (NDI) has already referred to the incompetence and
bias of the Election Commission (EC), all four of whose members were previously
activists of parties belonging to the coalition government," a House of
Lords press release from London said. Referring to the manipulation in preparing
the recent voters list, Lord Avebury said, "This is mass-produced fraud
which must be exposed and corrected. The NDI too, commented on the 'rampant and
escalating violence' of recent times, including the assassination of former
finance minister Shah AMS Kibria, the attempt on the life of British High
Commissioner Anwar Choudhury; the multiple grenade attack on the Leader of the
Opposition Sheikh Hasina, the suicide bombing of two judges, and the
simultaneous explosion of 500 bombs all over the country in August 2005. In
addition, he also mentioned about 800 people killed by the Rapid Action
Battalion forces during encounters and shootouts, but not a single person has
been captured or injured in those incidents. (NEWS SOURCE: The Daily Star)
ECONOMY/BUSINESS
The value of letters of credit (LCs) opened against imports during first
three weeks of the current month fell significantly due to impending political
uncertainty ahead of general election. The value of LCs opened against imports
stood at US$1.012 billion as on September 21 last indicating a lower import
compared with that of the previous two months. Bangladesh Bank (BB) officials
estimated the value of LCs against imports might reach US$1.312 billion by the
end of the current month. In August, the value of LCs was worth $1.454 billion
against $1.323 billion in the previous month. "It is difficult to say when
imports will again pick up as some non-economic factors are closely related to
it," a senior official of the Bangladesh Bank (BB) told the FE. He also
said most of the entrepreneurs are closely watching the current political
situation. Sources, however, said the opening of LCs against imports of
petroleum products and chemicals and chemical products, including fertilizer,
marked a significant fall while sugar import jumped. Besides, the import of
capital machinery has almost stagnated mainly due to the prevailing political
deadlock. The country's opposition parties have been campaigning for reforms in
the system of caretaker government. According to the BB's statistics, the value
of LCs for imports of capital machinery stood at $239.32 million during the
July-August period of the current fiscal against $234.70 million of the same
period of the previous fiscal. The value of LCs for petroleum products stood at
$118 million between September 01 and 21 last while the total LCs were worth
$211 million in August and $200 million in July, sources in the central bank
said. The value of LCs for sugar import rose to $41 million during the period
under review. But the total value of LCs for sugar import was $14 million in
August and $10 million in July, the sources noted. Imports of consumer items,
including pulses, onion, spices and dry fruits, increased during July-August
period of the current fiscal ahead of the holy month of Ramadan.
MINE DEVELOPMENT ABANDONED
The Bangladesh government appears to have denied permission for a
US$1.0bn-plus open-pit coal mine to be built in the country, in response to
violent protests over the proposed project, says the London-based Economist
Intelligence Unit (EIU), reports UNB.
Media reports indicate that Asia Energy, a UK firm, will no longer be able to
develop the mine in the northern Bangladeshi town of Phulbari. If true, the
abandonment of the project would mark a further blow to the country's foreign
investment prospects, coming just a few weeks after Tata Group, an Indian
conglomerate, suspended its plans to invest US$2.5bn in steel, power and coal
sectors. "Political factors are also likely to present an obstacle to such
deals going ahead," it says. The government's reported decision on Phulbari
came about in response to a general strike and almost a week of demonstrations
that resulted in several deaths as protesters clashed with security forces.
"At the heart of the dispute are claims by opponents of the project that it
would create severe environmental damage and displace over 100,000 people,"
the EIU said. Asia Energy, however, has claimed that the environmental impact
would be lower, that far fewer residents would be displaced and that those who
were displaced would be resettled and compensated. "The irony of the
situation is that the mine, if built, could generate revenue for Bangladesh. It
would also produce fuel for electricity generation that might help the country
to reduce its chronic power shortages. Although Bangladesh has abundant natural
gas reserves, electricity generation per head is among the lowest in the
world," it said. There is huge unmet commercial demand for energy, and the
lack of reliable sources of electricity has deterred foreign investment and held
back economic growth. There are frequent power cuts, and factories are often
forced to run fewer shifts or to opt for their own expensive generators, driving
up the cost of production. Around 85% of households have no electricity,
according to the report.
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