Bangladesh’s Economic Rise and the Geo-political Implications

Journal of Political Risk, Vol. 9, No. 7, July 2021

By Tridivesh Singh Maini
Jindal School of International Affairs,OP Jindal Global University, Sonipat

Dhaka, Bangladesh, in November 2007. Md. Ziaul Hoque.

In recent years, Bangladesh has exhibited healthy growth rates and emerged as an engine of South Asian growth. In 2019 for instance, the South Asian nation grew at an impressive 8.4%. The country witnessed a 9% rise in per capita income for the year 2020-2021 (its per capita income was estimated at 2,227 USD, and it surpassed India’s GDP per capita during 2020-2021 which was 1,947 USD).

The World Bank has revised Bangladesh’s GDP growth for 2020-2021, as a result of higher than expected remittance flows (while earlier it had predicted that the South Asian nation’s GDP would grow by 1.7% it has revised estimates to 3.6%). The International Monetary Fund’s forecasts for the South Asian nation’s economic growth are higher. “According to IMF, [the] global economy will grow by 6.0% in real term[s] in 2021 and 4.4% in 2022. Whereas, their forecast for Bangladesh is 5.0% in 2021 and 7.5% in 2022,” said the minister.

Bangladesh’s economic progress has been attributed to a holistic, economic vision with a strong thrust on social service indicators and policies that focus on strengthening the country’s manufacturing sector.

Bangladesh’s increasing importance in South Asia

In addition to its economic rise, Bangladesh is also keen to enhance its overall image in South Asia.

First, Bangladesh is amongst the 40 countries that provided assistance to India in the second wave of the Covid-19 pandemic. The South Asian nation provided India 10,000 vials of Remdesivir, when the second wave of Covid-19 was at its peak. Apart from Remdesivir, Bangladesh provided PPE kits and zinc, calcium, vitamin C and other tablets.

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NATO and Beyond: President Trump Revitalized Our Alliances

Journal of Political Risk, Vol. 9, No. 1, January 2021

By William R. Hawkins

US President Donald Trump, Japanese Prime Minister Shinzo Abe and India’s Prime Minister Narendra Modi attend a meeting during the G20 Osaka Summit in Osaka on June 28, 2019. (Photo by Carl Court / POOL / AFP via Getty Images)

The new NATO 2030: United for a New Era report shows how President Donald Trump has reinvigorated the West’s central international security alliance. It proclaims, “the main characteristic of the current security environment is the re-emergence of geopolitical competition – that is, the profusion and escalation of state-based rivalries and disputes over territory, resources, and values.” This reflects the 2018 National Defense Strategy issued by the U.S. Department of Defense which saw America “emerging from a period of strategic atrophy” into a world of “increased global disorder” where Great Power competition with Russia and China is the major challenge facing the country. By looking at the world as it is, President Trump sent a gale of fresh air into a becalmed foreign policy establishment on both sides of the Atlantic and beyond.

The first three “main findings” of the NATO document deal with the “changes to the geostrategic environment (including both Russia and China)” which have occurred since its 2010 Strategic Concept. Though the report paid lip service to “the dual-track approach of deterrence and dialogue with Russia” to placate those member states (like Germany) who shy away from confrontation, the report’s message is strong. “The Alliance must respond to Russian threats and hostile actions in a politically united, determined, and coherent way, without a return to ‘business as usual’” says its second findings, advising “NATO should evolve the content of its dual-track strategy to ensure its continued effectiveness by raising the costs for Russian aggression.” Continue reading

China’s Rise and the Weaponization of Soft and Hard Power: How the U.S., Japan, India and Australia are Responding

Journal of Political Risk, Vol. 8, No. 9, September 2020

By John Garrick (Charles Darwin University) and Yan Bennett (Princeton University)

Detail from mural of Xi Jinping and Donald Trump in Berlin, Germany in 2020. Source: Yan Bennett.

China has now fully weaponized its entire soft power repertoire and dramatically upgraded its military arsenal. The Middle Kingdom is no longer unwilling to openly challenge U.S. global hegemonic supremacy or coerce less powerful nations that do not accede to its will. The shocks caused by the Covid-19 pandemic have unmasked the Chinese Communist Party’s (CCP) ambition to be at the centre of global power, but at the same time, the CCP also faces uncertainty over China’s chances of achieving its 2017 strategic targets set by General Secretary Xi to ‘comprehensively build a moderately prosperous society’ by 2021.

Wary of what a world order under the CCP might entail, democratic countries including the United States, Japan, Australia and India have re-activated the informal Quadrilateral Security Dialogue (‘Quad’). The Quad involves informal summits, information exchanges and combined military drills known as the Malabar exercises. Including Australia in this year’s Malabar drills follows an upgrade in June 2020 in the security relationship between Australia and India to a ‘Comprehensive Strategic Partnership’. Why ramp-up the QSD now and what are the potential risks and benefits to member nations? Continue reading

Facebook Libra And Reliance Jio Compete With WeChat By Targeting The Unbanked

Journal of Political Risk, Vol. 8, No. 9, September 2020

By Vikram Chopra

Source: Tim Bennett, (Unsplash).

There’s a technology arms race developing between the West and China. At the frontier are emerging technologies such as 5G, Big Data, AI, Blockchain and Crypto. China already has an advantageous position in many of these areas, including 5G and AI, and is looking to challenge Bitcoin and the US dollar with its digital Yuan.

Facebook’s recent moves with Whatsapp and Libra are interesting strategies in this larger game of global tech domination where the likes of WeChat and TikTok have been resoundingly successful market leaders. A big reason for the success of WeChat is its complete market domination within China’s 1.4 billion population. Furthermore, Wechat has seamlessly integrated into the daily lives of its users. It’s more than just a chat application: it’s a platform for shopping, ordering groceries, booking travel, dry-cleaning, reserving a table at a preferred restaurant and sending money among other services. Add the 40 million global Chinese diaspora who use WeChat to communicate with loved ones back home, and you can see why WeChat is one of the leading social media networks with over 1.2 billion users globally. Continue reading

China: The Struggle for Territory Eclipses Trade

Journal of Political Risk, Vol. 8, No. 6, June 2020

By William R. Hawkins

A tank unit of the Chinese Army underway. The number of tanks in China’s armored forces ranks third in the world. The main battle tanks have the ability to fight under nuclear and night conditions. Photo by: Sovfoto/Universal Images Group via Getty Images

In February 1999, President Bill Clinton opened a major foreign policy speech by  claiming, “Perhaps for the first time in history, the world’s leading nations are not engaged in a struggle with each other for security or territory. The world clearly is coming together.” This was the height of the post-Cold War delusion that history had come to an end and that a new world order had dawned based on a global partnership for economic development. Yet, Clinton knew that this was still a work in progress. In the same San Francisco speech he talked about conflicts in the Middle East, Southwest Asia and the Balkans, the threat of nuclear proliferation, and the need to bring Russia and China “into the international system as open, prosperous, stable nations.” The emphasis, however, was always on economics, a peaceful way to rise within classical liberal theory, transcending political issues and separating wealth from power in an interdependent world.

The classical liberal view held that wealth could be best pursued outside the bounds of sovereign territory. Borders were not to impede the movement of people, capital or goods which were motivated by material gain and self-improvement. Their frame of reference was the efficient use of resources world-wide to maximize global output, not their relative use among national sub-units. Peace would be the result of economic interdependence as trade could gain access to resources at less cost than conquest, and that once entangled in global supply chains, the cost of disruption for political reasons would be unbearable. The classical worldview was very popular in the 19th century prior to World War I and revived briefly during the interwar years only to be once again vanquished by World War II. The rapid onset of the Cold War kept such idealism in check, but it burst forth again after the Berlin Wall came down, symbolically opening the world to new possibilities.

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