50th anniversary of diplomatic relations: Japan’s invaluable role in the development of Bangladesh

The Japanese Embassy was first opened in Dhaka in March 1972 following the country's recognition of independent Bangladesh in February of the same year. 

Since then, Japan has been a significant development partner of Bangladesh and Bangladesh-Japan relations have grown from strength to strength over the five decades.

The bilateral relationship goes back to before the birth of Bangladesh. The Consular Mission of Japan in Dhaka, in the mid-'50s, was engaged in furthering trade and people-to-people contact in the '50s and '60s made them aware of each other's culture including art, music and literature.

Soon after the opening of the Embassy in 1972, the Japanese government sent Takashi Hayakawa to Bangladesh to assess the needs of the new nation, followed by a team of Japanese experts. Japan came forward with aid, trade and investment in Bangladesh.

Prime Minister Bangabandhu Sheikh Mujbur Rahman, who visited Japan in October 1973, had laid the solid foundation of bilateral relations. In 1975, their Imperial Highnesses the Crown Prince and Crown Princess of Japan visited Bangladesh.

Bangladesh's relations with Japan took a favourable turn under unusual circumstances. A hijacked Japanese airliner landed in Dhaka in October 1977, creating a crisis in Japan. The Japanese hostages were released through the skilful handling of Bangladesh government leaders, which impressed the government of Japan.

Since the independence of Bangladesh in 1971, Japan has been consistently participating in the development process of Bangladesh. The people of Japan also have a strong affinity towards Bangladesh. 

Though relations of Bangladesh with other countries and regions changed dramatically depending on international politics and fluctuating economic relations, Japan has consistently maintained very significant, effective and stable relations characterised by mutual trust and cordial friendship with and actively committed to Bangladesh's efforts in development. 

Since the establishment of diplomatic ties between Bangladesh and Japan, Japan has been extending its aid assistance to Bangladesh. Japanese ODA (Overall Development Assistance) for Bangladesh has been characterised by less conditional and more favourable deals that aided Bangladesh in realising her aim of self-reliance, poverty alleviation and infrastructure development.  

When we look at the aid commitment and disbursement position of Japan's ODA to Bangladesh, it reveals a vivid picture of Japanese participation in the development process of Bangladesh. 

During the reconstruction and rehabilitation stage of the country, the participation was limited to providing ODA to Bangladesh, initially more in the form of Food Aid, Commodity Aid and Project Aid. 

Among the 20 major international donors providing economic assistance to Bangladesh, Japan stands just after IDA (International Development Association). Bilaterally, it is the largest development partner of Bangladesh. 

Japan, the third-largest economy and technologically, one of the most advanced nations in the world, has been able to project its positive image as the leading development partner of Bangladesh. 

Over the years, the relationship and economic cooperation between these two Asian countries have been growing stronger and stronger. Since 1985 Bangladesh has ranked first as the recipient of Japan's Grant Aid (roughly 10% of Japan's total grant aid) with a moderate rate of increase annually.

The Foreign Aid Flow chart reflects that throughout 1971/72 to June 2021, Japan stands the highest among the 20 major donors of Bangladesh. In the initial years of independence, Bangladesh needed Food Aid largely in the form of grants because of its food shortage to sustain a war-torn country.

Later on, an increasing rate of commodity loans was given to assist the balance of payments and fiscal revenue and to import raw materials and intermediary goods, machinery to provide support to the productive sectors and some priority projects. 

These commodity loans supported the generation of foreign exchange by selling imported goods and meeting up the local cost of some projects. 

In terms of the development process, Bangladesh has benefited from the Japanese Debt Relief Grant Assistance (DRGA) arrangements. Through this type of mechanism, Bangladesh gets back the amount she pays to Japan in the form of debt-servicing following the decision undertaken by the Board of Trade and Development of UNCTAD in its session of 12 March 1978.  The GOJ adopted Debt Relief Measures in the form of JDCF (Japan Debt Cancellation Fund) which replaced the earlier DRGA. 

Japanese Technical Assistance and Cooperation to Bangladesh is also appreciable. JICA has extended its technical cooperation through funding and implementing Technical Cooperation Projects in Bangladesh in the prime sectors of education, health, environment, disaster management, agriculture and rural development, power, transport and also in the private sector over the last three decades. 

The bilateral relationship between Bangladesh and Japan has also been enhanced in other areas, especially in trade and investment. Japan has been one of the major destinations for Bangladeshi goods. 

Shoes, shrimp, garments and leather goods are some of the major export items to Japan in recent years. Bangladesh is trying to diversify its exports and develop more export-oriented industries. These measures will open up new windows of opportunities for trade and investment between the two friendly countries.

Japan strongly supports that Bangladesh, in its development process, makes further headway in poverty reduction to attain the Sustainable Development Goals (SDGs). 

For that purpose, Bangladesh must expand and stabilise its basis of growth driven by the private sector, expand social development, and improve governance. In particular, Japan upholds that, it is necessary to provide cooperation bearing in mind the perspective of human security while promoting social development. 

Japan considers the bilateral relations to be of vital importance in the following three aspects, the changes in the international geopolitics with the end of the Cold War, globalisation, the promotion of economic partnerships and growing interest in development issues. 

Against this backdrop, Bangladesh should remain prepared to reap the benefits from its alliance with Japan in the coming days as it drives towards becoming a developed economy.

Dr Muhammad Abdul Mazid, Formerly Secretary to the GoB and  Chairman National Board of Revenue. Email: [email protected] 

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the opinions and views of The Business Standard.