Now is the time for Bangladesh to further develop and strengthen its political, economic and cultural relations with the rest of the Southasian states. In the favour of such an attempt, India and Pakistan seem finally to be serious about smoothing their political, economic and cultural relationships. The present 'thaw' might indeed prove to be the single most important factor leading to improved bilateral relations throughout the region. Bangladesh must also strive to take advantage of the situation.
Indeed, Bangladesh, with an average annual economic growth rate of 5 to 6 percent, is in an excellent position to benefit from India's and Pakistan's current 7 to 8 percent growth rates. Southasia's political elites also seem to have finally started appreciating that their respective economies will not grow until they are engaged in trading inter-regionally. Today, this trade is still very low, compared to internal trade within the European Union or the ASEAN countries. Hopefully, however, with the implementation of a Southasian free trade zone, either within SAFTA or the larger WTO process, regional trade will grow dramatically.
But this is also a problematic time for Bangladesh to deepen its relationships with the other Southasian countries – again, most notably India and Pakistan. Perhaps more than another regional country, the pursuit of an effective foreign policy by Dhaka necessarily requires the consolidation of the domestic socio-political and economic orders. Despite relative economic success, an increasingly unstable internal political scenario has meant that the country's foreign – including regional – policy is yet to be put on an even keel.
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