Developing a Blue Economy in Bangladesh: Benefiting from the Indo-Pacific Strategy

Author:
Professor Syed Ahsanul Alam

University of Chittagong
Geo-Political Economist and Chairman, NBERBD

 

The Indo-Pacific region has become a central focus of global geopolitics and economic strategy in recent years. Encompassing the Indian and Pacific Oceans, this vast region is home to some of the world’s busiest sea lanes and economic zones, representing a key intersection of trade, security, and economic development. For Bangladesh, with its strategic location on the Bay of Bengal and proximity to major maritime routes, the Indo-Pacific strategy presents both opportunities and challenges. A particular area of focus is how the strategy can help develop Bangladesh’s blue economy, and the negative impacts of monopolistic control over the Bay of Bengal and Indian Ocean by regional powers.

 

  1. The Importance of the Indo-Pacific Strategy for Bangladesh’s Blue Economy

The blue economy refers to the sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of the ocean ecosystem. For Bangladesh, this includes fisheries, tourism, marine biotechnology, oil and gas exploration, and shipping. The Indo-Pacific strategy—led by key regional players like India, the United States, Japan, Australia, and ASEAN—holds significant implications for the country’s ambitions to harness its maritime potential.

 1.1 Enhancing Maritime Security

Security is the backbone of economic development in maritime zones. The Indo-Pacific strategy, with its emphasis on open and secure sea lanes, can enhance Bangladesh’s maritime security and boost its blue economy. Ensuring freedom of navigation, deterring piracy, illegal fishing, and smuggling, and preventing other transnational crimes are crucial to maintaining a stable environment for economic activities in the Bay of Bengal and beyond.

 

As part of the Indo-Pacific strategy, initiatives like the Quad (comprising the U.S., India, Japan, and Australia) seek to ensure security in the region’s waters, including the Indian Ocean and the South China Sea. Bangladesh’s proximity to these contested waters makes it important for the country to be part of this broader security framework. While Bangladesh may not need to align with any particular bloc, constructive engagement with Indo-Pacific powers could help bolster its maritime security, which in turn would protect its economic interests.

 1.2 Access to Technological and Financial Resources

Developing a sustainable blue economy requires significant investments in technology and infrastructure. The Indo-Pacific strategy opens up avenues for Bangladesh to access cutting-edge maritime technologies from developed nations involved in the strategy, particularly in sectors like marine biotechnology, sustainable fishing, and renewable ocean energy. Japan, for instance, has a keen interest in supporting blue economy initiatives as part of its broader Indo-Pacific vision, which could translate into enhanced partnerships and financial support for Bangladesh.

Furthermore, partnerships with countries like India and Australia, which are heavily invested in maritime research and development, could provide Bangladesh with the tools it needs to modernize its marine industries. The U.S. Indo-Pacific strategy also prioritizes capacity building, and Bangladesh could benefit from U.S. assistance programs aimed at improving maritime governance and sustainability.

 1.3 Trade and Connectivity Opportunities

Bangladesh’s geographical location in the Indo-Pacific region is a strategic advantage. The Bay of Bengal is a gateway to lucrative maritime trade routes, making it a key player in the Indo-Pacific connectivity agenda. Bangladesh could leverage its position to enhance regional trade linkages, particularly through port development, shipping, and maritime logistics.

The Indo-Pacific strategy includes a strong emphasis on building resilient infrastructure and enhancing connectivity across the region. Developing the Chittagong port as a regional maritime hub, for instance, would significantly bolster Bangladesh’s blue economy, allowing it to tap into expanding trade flows between the Indian Ocean, Southeast Asia, and beyond.

  1. Risks of Monopolistic Control of the Bay of Bengal and Indian Ocean

Despite the potential benefits of the Indo-Pacific strategy, there are risks associated with the increasing dominance of certain regional powers over the Bay of Bengal and Indian Ocean. Bangladesh must navigate these challenges carefully to avoid being marginalized in its own maritime backyard.

 2.1 Indian Dominance and Its Implications

India, as a major regional power and Bangladesh’s largest neighbor, plays a crucial role in the Indo-Pacific strategy. India’s “Security and Growth for All in the Region” (SAGAR) vision places the Indian Ocean at the center of its geopolitical and economic ambitions. While this strategy can offer security benefits to Bangladesh, it also carries the risk of monopolistic control over the Bay of Bengal.

India’s growing naval presence in the Bay of Bengal, could limit Bangladesh’s ability to assert its own maritime rights. The possibility of Indian dominance could constrain economic development in areas like Cox’s Bazar and Teknaf, which rely heavily on tourism, fisheries, and shipping. In particular, Indian interests may conflict with Bangladesh’s ambitions to exploit offshore resources, such as oil and gas, if those interests are not carefully balanced through diplomacy and regional cooperation.

 2.2 Chinese Influence and Strategic Competition

China’s Belt and Road Initiative (BRI), which includes significant investments in Bangladesh’s maritime infrastructure, is another factor to consider. While China is not explicitly part of the Indo-Pacific strategy, its growing influence in the Indian Ocean adds complexity to Bangladesh’s positioning.

If Bangladesh becomes overly dependent on either India or China, it could face pressure to align with their respective strategic interests, which may not always align with the country’s blue economy goals. Maintaining a balanced approach, engaging with multiple stakeholders, and ensuring that no single country or alliance monopolizes control over the Bay of Bengal is essential for Bangladesh to safeguard its maritime sovereignty and economic autonomy.

 2.3 Constraints on Coastal Economic Development

Monopolistic control over maritime resources by neighboring powers can directly constrain economic development in Bangladesh’s coastal areas, particularly in Cox’s Bazar and Teknaf. These regions are heavily dependent on fisheries and tourism, both of which require free and fair access to marine resources and unimpeded maritime trade. If Bangladesh is restricted from fully exploiting its exclusive economic zone (EEZ) due to pressures from regional powers, it could face significant economic losses.

Additionally, security concerns, such as increased militarization by India and China of the Bay of Bengal, could deter investment and tourism in Cox’s Bazar, which is a critical region for Bangladesh’s blue economy. The presence of foreign nearby naval forces, potential conflicts over fishing rights, and other maritime disputes could create a volatile environment, negatively affecting economic growth and development in these coastal areas.

 Conclusion

The Indo-Pacific strategy presents both opportunities and challenges for Bangladesh as it seeks to develop its blue economy. While the strategy offers avenues for enhanced security, technological innovation, and regional connectivity, it also comes with the risk of monopolistic control over the Bay of Bengal by regional powers. To fully capitalize on the benefits of the Indo-Pacific framework, Bangladesh must adopt a balanced approach—engaging with multiple stakeholders, protecting its maritime rights, and investing in its coastal infrastructure to ensure sustainable economic growth. A robust diplomatic and economic strategy that safeguards national interests while leveraging regional opportunities will be key to developing a thriving blue economy.

 

Bibliography:

 

  • Alam, S. A. (2023). INDO PACIFIC STRATEGY: AN EXPLORATION.

NBER BD. https://nber-bd.org/indo-paicific-outlook-of-bangladesh/

  • Petermann, W. (2023). US and China Indo-Pacific Initiatives and Their Influence on Bangladesh: A Qualitative and Quantitative Study. NBER BD.
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  • Ministry of External Affairs-Government of India. India’s Look East Policy and the Northeast. https://www.mea.gov.in/distinguished-lectures-detail.htm?505

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