Expansion of Trade

2000-2010

EU initiative boosts bilateral trade

Political context

Begum Zia 2001 - 2006

The second caretaker government, led by Chief Adviser Justice Latifur Rahman, oversaw the 2001 general election which returned Begum Zia and the BNP to power in Bangladesh.

The second Zia administration witnessed improved economic growth, but political turmoil gripped the country between 2004 and 2006. An official investigation found that  a series of terror attacks had been carried out by a radical Islamist militant group, the JMB. Hundreds of suspected members of the group were detained in numerous security operations in 2006, including two of its leaders, Shaykh Abdur Rahman and Bangla Bhai. Bangla Bhai was executed with other top leaders in March 2007, bringing the militant group to an end.

Sheikh Hasina 2008-2010

The end of the BNP administration’s term in 2006 was followed by widespread political unrest after Bangladesh's military urged President Iajuddin Ahmed to announce a state of emergency. A caretaker government, led by technocrat and former World Bank official  Fakhruddin Ahmed, was then installed. Emergency rule lasted for two years. During this time, investigations were conducted into members of both the Awami League and BNP, including their leaders Sheikh Hasina and Khaleda Zia.  In 2008, the country's ninth general election saw Sheikh Hasina and the Awami League-led Grand Alliance return to power with a landslide victory. In 2010, the Supreme Court ruled martial law illegal and affirmed secular principles in the constitution. The Awami League abolished the caretaker government system the following year.

Bilateral relations between Bangladesh and the Netherlands

In the first decade of this century, the development program focused on four sectors:

  • primary education
  • integrated water resources management
  • basic health including nutrition and population issues
  • rural electrification

Special attention was given to the role and position of women and to private sector development

Trade

The Netherlands is an important gateway to Europe for Bangladesh. A very crucial step for the enhancement of bilateral trade was the EU's Everything But Arms (EBA) initiative for Least-Developed Countries like Bangladesh in 2001. The EBA initiative allowed for tax- and quota-free imports to the EU and gave an enormous boost to Bangladesh's exports of ready-made garments to the EU. Clothing accounts for close to 85% of Bangladesh's exports to the Netherlands. To assist Bangladesh with export diversification and growth, the Netherlands has always strongly supported Bangladesh’s cause in the EU and multilateral organizations such as the World Trade Organization (WTO).

At the same time, joint ventures and other forms of economic cooperation with the Netherlands were facilitated by the Netherlands Development Finance Company (FMO) and the PUM program (PUM Netherlands Senior Experts).

Anyone exposed to the Bengali language will find wisdom in its proverbs and sayings (Bachans in Bengali). To quote one of many: “It is important to be careful about drinking water. Similarly, one should appoint a teacher only after checking his background” (“Guru korbey jeney, jaal khabey cheney”) from 'An Anthology of Bengali Proverbs and Bachans' by Muhammad Zamir (Dhaka, 2003)

Sources and Read More:

Muhammad Zamir (2003). An Anthology of Bengali Proverbs and Bachans.

NICC collection: 

  • A01707: Een Wereld van Verschil, Nieuwe Kaders voor Ontwikkelingssamenwerking in de Jaren Negentig, J.P. Pronk (1990).
  • A02992: Een Wereld in Geschil. De Grenzen van Ontwikkelingssamenwerking Verkend, Ministerie van Buitenlandse Zaken (1992).