Japan's development assistance

IN a much welcome move, the Japanese government has pledged to provide nearly US$6billion in economic assistance to the country. This comes forth by virtue of the prime ministers of Japan and Bangladesh negotiating a landmark deal. Kudos to both of them.
Spread over a period of four to five years, the aid will be given to implement the concept of The Bay of Bengal industrial growth belt (BIG-B) as proposed by the Japanese premier. This envisages fast track development of infrastructure, power development and the development of human resources in Bangladesh. Needless to say, the country's growth has been severely affected by the lack of infrastructure and adequate power and a skilled workforce. Hence, investments in these areas will go a long way in transforming Bangladesh into a middle-income country by 2021.
The country will receive the assistance primarily in the form of government loans. The multi-year package will cover public works such as construction of roads and power plants. It signals Japan's belief that the country holds significant economic potential. The multi-billion dollar assistance from Japan comes on the heels of a large investment package from China, which is also investing heavily in upgrading the country's infrastructure, power sector and communications facilities. With two of the largest economies of the world contributing to rapid development in Bangladesh, there is anticipation that trade and industrial growth in Bangladesh will see marked improvement in the coming years.
Of course, economic development can be fostered and sustained if the political climate remains congenial. That is one area that needs addressing and we hope that the major political parties can overcome their differences in the greater interest of the country's future development.