Japan–Bangladesh Economic Partnership

Abstract

Japan has been the ‘single largest donor’ to Bangladesh ever since diplomatic ties were established in February 1972 between the two, although one can always ask whether such huge official development assistance (ODA) has been effective in contributing to the sustainability accomplishments of Bangladesh. Despite the magnitude of Japan's economic assistance to Bangladesh, the latter's share in Japanese global trade and investment is negligible. Despite having many competitive advantages, Bangladesh has been suffering from a huge trade deficit in its business with Japan. Likewise, even though Bangladesh has been trying its best to attract Japanese investors and entrepreneurs by offering a package of incentives and better facilities, investment here remains very low. While Japan recognizes the strategic significance of Bangladesh in a changing Asia, and wants to help the nation approach global competition better, Bangladesh's image abroad is dented by poor governance and political instability. Against this background, one needs to identify the challenges confronting Japan and Bangladesh in their bilateral relationship while analysing the significance of the Japan–Bangladesh economic partnership.