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FY 1999: Bangladesh |
III. POLITICAL ENVIRONMENT Nature of Political Relationship with the United States U.S.-Bangladesh relations are excellent. U.S. policies have focused primarily on efforts to promote Bangladesh's economic development and political progress in the context of a democratic system. The United States committed $77 million in economic aid to Bangladesh in FY98, with $52 million in development assistance and $25 million in food aid. Since Bangladesh's independence in 1971, the United States has provided over $3 billion in economic assistance. In response to the devastating floods in August/ September 1998, the U.S. pledged to donate 700,000 metric tons of wheat, and also gave emergency supplies. Major Political Issues Affecting Business Climate There are no major bilateral or international political issues which affect the business climate. However, political demonstrations and general strikes ("hartals") regularly disrupted business operations in 1994-95. In the spring of 1996 a non-stop nationwide shutdown halted all activities and closed the country's principal port for weeks. Normalcy returned after the ruling Bangladesh Nationalist Party (BNP) government resigned March 30 and a neutral caretaker government took power to hold fresh general elections. These were held in June 1996 and were declared generally free and fair, setting the stage for the Awami League to become the new ruling party, with the BNP becoming the major opposition. Initial high hopes that relations between the parties would turn more cooperative and productive have faded, however. The new government's first two years saw relatively few hartals or other disruptive agitation programs, but confrontation, tension and mistrust remain prominent features of the political climate. October 1998 saw the renewal of the use of hartals by the opposition, in response to what it claims was harassment by the ruling Awami League. Synopsis of Political System Bangladesh is a parliamentary democracy, with general elections constitutionally required at least once every five years. The Parliament has 300 elected members. An additional 30 seats are reserved for women chosen by the seated Parliament. Candidates may contest a maximum of five seats in any one election but may only hold one. Parliament elects the country's President, whose duties are largely ceremonial, to a five-year term. Following its war of independence in 1971 and the establishment of a new Constitution in 1972, Bangladesh held its first parliamentary election in March 1973, which solidified the Awami League's ruling majority. In August 1975, the elected government of Sheikh Mujibur Rahman--who was long the most prominent leader in the nationalist movement--was overthrown in the first of a series of military coups followed by military rule which plagued the country for the next fifteen years. In this first coup, Sheikh Mujib and most of his family were murdered. His daughter, Sheikh Hasina, was out of the country and survived, later becoming the Awami League chief. In 1981, President Ziaur Rahman, an army general (and founder of the BNP) who came to power in the turmoil following the death of Sheikh Mujib, was himself assassinated. His party's mantle passed to his wife, Begum Khaleda Zia. In 1982, General H.M. Ershad, then Army Chief of General Staff, seized power and declared himself President in December 1982. He remained President for eight years, forming the Jatiya Party and attempting to legitimize his rule through political manipulation. He was forced to resign in December 1990, following months of popular demonstrations. In February 1991, the BNP won a parliamentary plurality of 140 seats in general elections and formed the government, with Begum Khaleda Zia becoming Prime Minister. The Awami League, Jatiya Party and the Jamaat-e-Islami formed the bulk of the opposition. In March 1994, the opposition parties walked out of Parliament to protest an alleged insult by a BNP minister. The walkout became a boycott when the opposition alleged the BNP rigged a March 1994 by-election and demanded Khaleda Zia hand over power to a neutral caretaker government before the next national polls. Opposition MP's resigned en masse from Parliament in December 1994. The political impasse dragged on for nearly two years, and the opposition parties boycotted general elections held by the BNP in February 1996. The BNP government lost credibility with substantiated reports of vote rigging in the one-party election. Following this election, increasing popular pressure compelled the BNP to pass a constitutional amendment to permit election under a caretaker government and dissolve the short-lived parliament on March 30. New polls were contested by all the major parties in mid-June 1996, and were declared generally free and fair by domestic and international observer groups. A new government led by the Awami League and Prime Minister Sheikh Hasina took its seat in late June 1996. There are few apparent policy differences between the BNP, the Awami League and Jatiya Party. Jamaat-e-Islami calls for an Islamic state, but also professes a commitment to tolerance, democracy and economic freedom. Despite a remarkable degree of policy consensus, political cooperation has been in short supply. Street demonstrations, strikes and blockades are frequent means of opposition expression. The Awami League holds a majority in Parliament. However, Awami League-BNP relations show no sign of improving, and this political acrimony between the major parties could pose obstacles to long-term stability and further economic reform.[end of document]
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