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Background Note:
Bangladesh PROFILE OFFICIAL NAME: Geography People Government Economy OVERVIEW Political developments in Bangladesh also will impact the external environment. Northeast India, Bangladesh, and Nepal represent a large portion of the hard-core poverty in South Asia. With Maoist rebels gaining strength in Nepal, insurgencies still bubbling in the northeastern states of India, and the communist party in West Bengal still strong, a major crisis in Bangladesh could add greatly to regional instability. India would perhaps be the most affected by largescale unrest on its northeast border, which also could complicate resolution of issues in Pakistan and Afghanistan. Such a turn of events also would be significant with respect to U.S. geopolitical interests in South Asia.
In spite of its shortcomings, Bangladesh is one of the most democratic states within the Muslim world and a leading voice among the least developed countries (LDCs). It also has taken on an increasingly active role in international peacekeeping operations. Given the importance of democracy for the advancement of LDCs, continuing to support the development of democracy in Bangladesh should remain an international priority.
GEOGRAPHY Urbanization is proceeding rapidly, and it is estimated that only 30% of the population entering the labor force in the future will be absorbed into agriculture, although many will likely find other kinds of work in rural areas. The areas around Dhaka and Comilla are the most densely settled. The Sundarbans, an area of coastal tropical jungle in the southwest and last wild home of the Bengal Tiger, and the Chittagong Hill Tracts on the southeastern border with Burma and India, are the least densely populated.
PEOPLE Sufi religious teachers succeeded in converting many Bengalis to Islam, even before the arrival of Muslim armies from the west. About 1200 AD, Muslim invaders established political control over the Bengal region. This political control also encouraged conversion to Islam. Since then, Islam has played a crucial role in the region's history and politics, with a Muslim majority emerging, particularly in the eastern region of Bengal.
HISTORY The rise of nationalism throughout British-controlled India in the late 19th century resulted in mounting animosity between the Hindu and Muslim communities. In 1885, the All-India National Congress was founded with Indian and British membership. Muslims seeking an organization of their own founded the All-India Muslim League in 1906. Although both the League and the Congress supported the goal of Indian self-government within the British Empire, the two parties were unable to agree on a way to ensure the protection of Muslim political, social, and economic rights. The subsequent history of the nationalist movement was characterized by periods of Hindu-Muslim cooperation, as well as by communal antagonism. The idea of a separate Muslim state gained increasing popularity among Indian Muslims after 1936, when the Muslim League suffered a decisive defeat in the first elections under India's 1935 constitution. In 1940, the Muslim League called for an independent state in regions where Muslims were in the majority. Campaigning on that platform in provincial elections in 1946, the League won the majority of the Muslim seats contested in Bengal. Widespread communal violence followed, especially in Calcutta.
When British India was partitioned and the independent dominions of India and Pakistan were created in 1947, the region of Bengal was divided along religious lines. The predominantly Muslim eastern half was designated East Pakistan--and made part of the newly independent Pakistan--while the predominantly Hindu western part became the Indian state of West Bengal. Pakistan's history from 1947 to 1971 was marked by political instability and economic difficulties. Dominion status was rejected in 1956 in favor of an "Islamic republic within the Commonwealth." Attempts at civilian political rule failed, and the government imposed martial law between 1958 and 1962, and again between 1969 and 1972.
Almost from the advent of independent Pakistan in 1947, frictions developed between East and West Pakistan, which were separated by more than 1,000 miles of Indian territory. East Pakistanis felt exploited by the West Pakistan-dominated central government. Linguistic, cultural, and ethnic differences also contributed to the estrangement of East from West Pakistan. Bengalis strongly resisted attempts to impose Urdu as the sole official language of Pakistan. Responding to these grievances, Sheikh Mujibur Rahman--known widely as "Mujib"--in 1949 formed the Awami League (AL), a party designed mainly to promote Bengali interests. Mujib became president of the Awami League and emerged as leader of the Bengali autonomy movement. In 1966, he was arrested for his political activities.
After the Awami League won all the East Pakistan seats of the Pakistan national assembly in 1970-71 elections, West Pakistan opened talks with the East on constitutional questions about the division of power between the central government and the provinces, as well as the formation of a national government headed by the Awami League. The talks proved unsuccessful, however, and on March 1, 1971, Pakistani President Yahya Khan indefinitely postponed the pending national assembly session, precipitating massive civil disobedience in East Pakistan. Mujib was arrested again; his party was banned, and most of his aides fled to India, where they organized a provisional government. On March 26, 1971, following a bloody crackdown by the Pakistan army, Bengali nationalists declared an independent People's Republic of Bangladesh. As fighting grew between the army and the Bengali mukti bahini ("freedom fighters"), an estimated 10 million Bengalis, mainly Hindus, sought refuge in the Indian states of Assam and West Bengal.
The crisis in East Pakistan produced new strains in Pakistan's troubled relations with India. The two nations had fought a war in 1965, mainly in the west, but the refugee pressure in India in the fall of 1971 produced new tensions in the east. Indian sympathies lay with East Pakistan, and in November, India intervened on the side of the Bangladeshis. On December 16, 1971, Pakistani forces surrendered, and Bangladesh-- meaning "Bengal nation"--was born; the new country became a parliamentary democracy under a 1972 constitution.
The provisional government of the new nation of Bangladesh was formed in Dhaka with Justice Abu Sayeed Choudhury as President, and Sheikh Mujibur Rahman ("Mujib")--who was released from Pakistani prison in early 1972--as Prime Minister.
Sheikh Mujibur Rahman, 1972-75 The first parliamentary elections held under the 1972 constitution were in March 1973, with the Awami League winning a massive majority. No other political party in Bangladesh's early years was able to duplicate or challenge the League's broad-based appeal, membership, or organizational strength. Relying heavily on experienced civil servants and members of the Awami League, the new Bangladesh Government focused on relief, rehabilitation, and reconstruction of the economy and society. Economic conditions remained precarious, however. In December 1974, Mujib decided that continuing economic deterioration and mounting civil disorder required strong measures. After proclaiming a state of emergency, Mujib used his parliamentary majority to win a constitutional amendment limiting the powers of the legislative and judicial branches, establishing an executive presidency, and instituting a one-party system, the Bangladesh Krishak Sramik Awami League (BAKSAL), which all members of Parliament were obliged to join.
Despite some improvement in the economic situation during the first half of 1975, implementation of promised political reforms was slow, and criticism of government policies became increasingly centered on Mujib. In August 1975, Mujib, and most of his family, were assassinated by mid-level army officers. His daughter, Sheikh Hasina, was out of the country. A new government, headed by former Mujib associate Khandakar Moshtaque, was formed.
Ziaur Rahman, 1975-81 Acting behind the scenes of the Martial Law Administration (MLA), Zia sought to invigorate government policy and administration. While continuing the ban on political parties, he sought to revitalize the demoralized bureaucracy, to begin new economic development programs, and to emphasize family planning. In November 1976, Zia became Chief Martial Law Administrator (CMLA) and assumed the presidency upon Sayem's retirement 5 months later, promising national elections in 1978.
As President, Zia announced a 19-point program of economic reform and began dismantling the MLA. Keeping his promise to hold elections, Zia won a 5-year term in June 1978 elections, with 76% of the vote. In November 1978, his government removed the remaining restrictions on political party activities in time for parliamentary elections in February 1979. These elections, which were contested by more than 30 parties, marked the culmination of Zia's transformation of Bangladesh's Government from the MLA to a democratically elected, constitutional one. The AL and the Bangladesh Nationalist Party (BNP), founded by Zia, emerged as the two major parties. The constitution was again amended to provide for an executive prime minister appointed by the president, and responsible to a parliamentary majority.
In May 1981, Zia was assassinated in Chittagong by dissident elements of the military. The attempted coup never spread beyond that city, and the major conspirators were either taken into custody or killed. In accordance with the constitution, Vice President Justice Abdus Sattar was sworn in as acting president. He declared a new national emergency and called for election of a new president within 6 months--an election Sattar won as the BNP's candidate. President Sattar sought to follow the policies of his predecessor and retained essentially the same cabinet, but the army stepped in once again.
Hussain Mohammed Ershad, 1982-90 Despite a boycott by the BNP, led by President Zia's widow, Begum Khaleda Zia, parliamentary elections were held on schedule in May 1986. The Jatiya Party won a modest majority of the 300 elected seats in the national assembly. The participation of the Awami League--led by the late Prime Minister Mujib's daughter, Sheikh Hasina Wajed-- lent the elections some credibility, despite widespread charges of voting irregularities.
Ershad resigned as Army Chief of Staff and retired from military service in preparation for the presidential elections, scheduled for October. Protesting that martial law was still in effect, both the BNP and the AL refused to put up opposing candidates. Ershad easily outdistanced the remaining candidates, taking 84% of the vote. Although Ershad's government claimed a turnout of more than 50%, opposition leaders, and much of the foreign press, estimated a far lower percentage and alleged voting irregularities.
Ershad continued his stated commitment to lift martial law. In November 1986, his government mustered the necessary two-thirds majority in the national assembly to amend the constitution and confirm the previous actions of the martial law regime. The President then lifted martial law, and the opposition parties took their elected seats in the national assembly.
In July 1987, however, after the government hastily pushed through a controversial legislative bill to include military representation on local administrative councils, the opposition walked out of Parliament. Passage of the bill helped spark an opposition movement that quickly gathered momentum, uniting Bangladesh's opposition parties for the first time. The government began to arrest scores of opposition activists under the country's Special Powers Act of 1974. Despite these arrests, opposition parties continued to organize protest marches and nationwide strikes. After declaring a state of emergency, Ershad dissolved Parliament and scheduled fresh elections for March 1988.
All major opposition parties refused government overtures to participate in these polls, maintaining that the government was incapable of holding free and fair elections. Despite the opposition boycott, the government proceeded. The ruling Jatiya Party won 251 of the 300 seats. The Parliament, while still regarded by the opposition as an illegitimate body, held its sessions as scheduled, and passed a large number of bills, including, in June 1988, a controversial constitutional amendment making Islam Bangladesh's state religion.
By 1989, the domestic political situation in the country seemed to have quieted. The local council elections were generally considered by international observers to have been less violent and more free and fair than previous elections. However, opposition to Ershad's rule began to regain momentum, escalating by the end of 1990 in frequent general strikes, increased campus protests, public rallies, and a general disintegration of law and order.
On December 6, 1990, Ershad offered his resignation. On February 27, 1991, after 2 months of widespread civil unrest, an interim government oversaw what most observers believed to be the nation's most free and fair elections to that date.
Khaleda Zia, 1991-96 In March 1994, controversy over a parliamentary by-election, which the opposition claimed the government had rigged, led to an indefinite boycott of Parliament by the entire opposition. The opposition also began a program of repeated general strikes to press its demand that Khaleda Zia's government resign and a caretaker government supervise a general election. Efforts to mediate the dispute, under the auspices of the Commonwealth Secretariat, failed. After another attempt at a negotiated settlement failed narrowly in late December 1994, the opposition resigned en masse from Parliament. The opposition then continued a campaign of marches, demonstrations, and strikes in an effort to force the government to resign. The opposition, including the Awami League's Sheikh Hasina, pledged to boycott national elections scheduled for February 15, 1996.
In February, Khaleda Zia was re-elected by a landslide in voting boycotted and denounced as unfair by the three main opposition parties. In March 1996, following escalating political turmoil, the sitting Parliament enacted a constitutional amendment to allow a neutral caretaker government to assume power conduct new parliamentary elections; former Chief Justice Mohammed Habibur Rahman was named Chief Advisor (a position equivalent to prime minister) in the interim government. New parliamentary elections were held in June 1996 and were won by the Awami League; party leader Sheikh Hasina became Prime Minister.
Sheikh Hasina, 1996-2001 Although international and domestic election observers found the June 1996 election free and fair, the BNP protested alleged vote rigging by the Awami League. Ultimately, however, the BNP party decided to join the new Parliament. The BNP soon charged that police and Awami League activists were engaged in largescale harassment and jailing of opposition activists. At the end of 1996, the BNP staged a parliamentary walkout over this and other grievances but returned in January 1997 under a four-point agreement with the ruling party. The BNP asserted that this agreement was never implemented and later staged another walkout in August 1997. The BNP returned to Parliament under another agreement in March 1998.
In June 1999, the BNP and other opposition parties again began to abstain from attending Parliament. Opposition parties have staged an increasing number of nationwide general strikes, rising from 6 days of general strikes in 1997 to 27 days in 1999. A four-party opposition alliance formed at the beginning of 1999 announced that it would boycott parliamentary by-elections and local government elections unless the government took steps demanded by the opposition to ensure electoral fairness. The government did not take these steps, and the opposition has subsequently boycotted all elections, including municipal council elections in February 1999, several parliamentary by-elections, and the Chittagong city corporation elections in January 2000.
In July 2001, the Awami League government stepped down to allow a caretaker government to preside over parliamentary elections. Political violence that had increased during the Awami League government's tenure continued to increase through the summer in the run up to the election. In August, Khaleda Zia and Sheikh Hasina agreed during a visit of former President Jimmy Carter to respect the results of the election, join parliament win or lose, foreswear the use of hartals (violently enforced strikes) as political tools, and if successful in forming a government allow for a more meaningful role for the opposition in Parliament. The caretaker government was successful in containing the violence, which allowed a parliamentary general election to be successfully held on October 1, 2001. The four-party alliance led by the BNP won over a two-thirds majority in Parliament. Begum Khaleda Zia was sworn in on October 10, 2001 as the Prime Minister of the Government of the People's Republic of Bangladesh for the second time.
Despite her August pledge and all election monitoring groups declaring the election free and fair (many going as far as labeling it the freest and fairest in Bangladesh's history), Sheikh Hasina condemned the election and disputed its results. Sheikh Hasina and the Awami League continue to call for new elections and boycott Parliament, alleging the Khaleda Zia government is using the police and security forces to persecute members of the opposition.
GOVERNMENT The prime minister is appointed by the president; the prime minister must be a member of Parliament (MP) whom the president feels commands the confidence of the majority of other MPs. The cabinet is composed of ministers selected by the prime minister and appointed by the president. At least 90% of the ministers must be MPs. The other 10% may be non-MP experts or "technocrats" who are not otherwise disqualified from being elected MPs. According to the constitution, the president can dissolve Parliament upon the written request of the prime minister.
The legislature is a unicameral, 300-seat body. Its 300 members are elected by universal suffrage at least every 5 years.
Bangladesh's judiciary is a civil court system based on the British model; the highest court of appeal is the appellate court of the supreme court. At the local government level, the country is divided into divisions, districts, subdistricts, unions, and villages. Local officials are elected at the union level. All larger administrative units are run by members of the civil service.
Principal Government Officials ECONOMY Since independence in 1971, Bangladesh has received more than $30 billion in grant aid and loan commitments from foreign donors, about $15 billion of which has been disbursed. Major donors include the World Bank, the Asian Development Bank, the UN Development Program, the United States, Japan, Saudi Arabia, and west European countries. Bangladesh historically has run a large trade deficit, financed largely through aid receipts and remittances from workers overseas. Foreign reserves dropped markedly in 2001 but appear to have now stabilized in the $1.2-$1.5 billion range (or about 2.0-2.2 monthly import cover).
Moves Toward a Market Economy Economic policies aimed at encouraging private enterprise and investment, denationalizing public industries, reinstating budgetary discipline, and liberalizing the import regime were accelerated. From 1991 to 1993, the government successfully followed an enhanced structural adjustment facility (ESAF) with the International Monetary Fund but failed to follow through on reforms in large part because of a preoccupation with the government's domestic political troubles. In the late 1990s the government's economic policies became more entrenched and some of the early gains were lost, which was highlighted by a precipitous drop in foreign direct investment in 2000 and 2001. The current government has promised a return to liberalization and currently is negotiating a poverty reduction growth facility (PRGF) with the IMF.
Efforts to achieve Bangladesh's macroeconomic goals have been problematic. The privatization of public sector industries has proceeded at a slow pace, due in part to worker unrest in affected industries. The government also has proven unable to resist demands for wage hikes in government-owned industries. Economic growth has been further slowed by a largely dysfunctional banking system. This has impeded access to capital. State-owned banks, which control about three-fourths of deposits and loans, carry classified loan burdens of about 50%.
The IMF and World Bank predict GDP growth over the next 5 years will be approximately 4.5%, well short of the 7%-8% that they feel is needed to lift Bangladesh out of its severe poverty. The post-9/11 global economic downturn hit especially hard Bangladesh's main export industry--ready-made garments. As a result, exports, which were growing 18% annually, are now growing 8%. Though the ready-made garment industry is benefiting from an early recovery in demand, it faces the loss of guaranteed markets in the U.S. and elsewhere when quotas are abolished on January 1, 2005. This will require Bangladesh to cut garment manufacturing costs considerably if it is to remain competitive in the world market. Foreign investors in a broad range of sectors are increasingly frustrated with the politics of confrontation, the level of corruption, and the slow pace of reform. Bangladesh may well lose not only potential investors but also those already invested if governance does not improve.
Agriculture Industry and Investment The labor-intensive process of shipbreaking for scrap has developed to the point where it now meets most of Bangladesh's domestic steel needs. Other industries include sugar, tea, leather goods, newsprint, pharmaceutical, and fertilizer production.
The Bangladesh Government continues to court foreign investment, something it did fairly well in the 1990s in private power generation and gas exploration and production, as well as in other sectors such as cellular telephony, textiles, and pharmaceuticals. In 1989, the same year it signed a bilateral investment treaty with the United States, it established a board of investment to simplify approval and start-up procedures for foreign investors, although in practice the board has done little to increase investment. Bangladesh also has established successful export processing zones in Chittagong and Dhaka, and has given the private sector permission to build and operate competing export promotion zones (EPZs).
The most important reforms Bangladesh should make to be able to compete in a global economy are to privatize the state-owned enterprises (SOEs), deregulate and promote foreign investment in high-potential industries like energy and telecommunications, and take decisive steps toward combating corruption and strengthening rule of law.
DEFENSE In addition to traditional defense roles, the military has been called on to provide support to civil authorities for disaster relief and internal security. The Bangladesh Air Force and Navy, with about 7,000 personnel each, perform traditional military missions. A Coast Guard has been recently formed, under the home ministry, to play a stronger role in the area of anti-smuggling, anti-piracy, and protection of offshore resources. Recognition of economic and fiscal constraints has led to the establishment of several paramilitary and auxiliary forces, including the 40,000-member Bangladesh rifles; the Ansars and village defense parties organization, which claims 64 members in every village in the country; and a 5,000-member specialized police unit known as the armed police. Bangladesh rifles, under the authority of the home ministry, are commanded by army officers who are seconded to the organization.
In addition to in-country military training, some advanced and technical training is done abroad, including grant aid training in the United States. China, Pakistan, and eastern Europe are is the major defense suppliers to Bangladesh, but military leaders are trying to find affordable alternatives to Chinese equipment.
A 2,300-member Bangladesh Army contingent served with coalition forces during the 1991 Gulf war. Bangladesh currently is the second-leading contributor to UN peacekeeping operations, with an infantry battalion in UNIKOM (Kuwait), an engineer battalion in UNTAET, (East Timor), and an infantry brigade which was deployed in Sierra Leone in May 2000.
FOREIGN RELATIONS Participation in Multilateral Organizations Since 1975, Bangladesh has sought close relations with other Islamic states and a role among moderate members of the OIC. The government also pursued the expansion of cooperation among the nations of South Asia, bringing the process--an initiative of former President Ziaur Rahman--through its earliest, most tentative stages to the formal inauguration of the South Asia Association for Regional Cooperation (SAARC) at a summit gathering of South Asian leaders in Dhaka in December 1985. Bangladesh has served in the chairmanship of SAARC and has participated in a wide range of ongoing SAARC regional activities.
In recent years, Bangladesh has played a significant role in international peacekeeping activities. Several thousand Bangladeshi military personnel are deployed overseas on peacekeeping operations. Under UN auspices, Bangladeshi troops have served or are serving in Somalia, Rwanda, Mozambique, Kuwait, Bosnia, and Haiti, and units are currently serving in Kuwait, East Timor, and Sierra Leone. Bangladesh responded quickly to President Clinton's 1994 request for troops and police for the multinational force for Haiti and provided the largest non-U.S. contingent.
Bilateral Relations With Other Nations India. India is Bangladesh's most important neighbor. Geographic, cultural, historic, and commercial ties are strong, and both countries recognize the importance of good relations. During and immediately after Bangladesh's struggle for independence from Pakistan in 1971, India assisted refugees from East Pakistan, intervened militarily to help bring about the independence of Bangladesh, and furnished relief and reconstruction aid.
Indo-Bangladesh relations are often strained, and many Bangladeshis feel India likes to play "big brother" to smaller neighbors, including Bangladesh. Bilateral relations warmed in 1996, due to a softer Indian foreign policy and the new Awami League Government. A 30-year water-sharing agreement for the Ganges River was signed in December 1996, after an earlier bilateral water-sharing agreement for the Ganges River lapsed in 1988. Both nations also have cooperated on the issue of flood warning and preparedness. The government and tribal insurgents signed a peace accord in December 1997, which allowed for the return of tribal refugees who had fled into India, beginning in 1986, to escape violence caused by an insurgency in their homeland in the Chittagong Hill Tracts. The implementation of all parts of this agreement have stalled, and the army maintains a very strong presence in the area. The army is increasingly concerned about a growing problem of cultivation of illegal drugs.
Pakistan. Bangladesh enjoys warm relations with Pakistan, despite the strained early days of their relationship. Landmarks in their reconciliation are:
Burma. Bilateral ties with Burma are good, despite occasional border strains and an influx of more than 270,000 Muslim refugees (known as "Rohingya") from predominantly Buddhist Burma. As a result of bilateral discussions, and with the cooperation and assistance of the UNHCR, most of the Rohingya refugees have now returned to Burma. As of 2002, about 22,000 refugees remain in camps in southern Bangladesh.
Former Soviet Union. The former Soviet Union supported India's actions during the 1971 Indo-Pakistan war and was among the first to recognize Bangladesh. The U.S.S.R. initially contributed considerable relief and rehabilitation aid to the new nation. After Sheikh Mujib was assassinated in 1975 and replaced by military regimes, however, Soviet-Bangladesh relations cooled.
In 1989, the U.S.S.R. ranked 14th among aid donors to Bangladesh. The Soviets focused on the development of electrical power, natural gas and oil, and maintained active cultural relations with Bangladesh. They financed the Ghorasal thermal power station-- the largest in Bangladesh. Recently, Russia has conducted an aggressive military sales effort in Dhaka and has succeeded with a $124 million deal for eight MIG -29 fighters. Bangladesh began to open diplomatic relations with the newly independent Central Asian states in 1992.
China. China traditionally has been more important to Bangladesh than the former U.S.S.R., even though China supported Pakistan in 1971. As Bangladesh's relations with the Soviet Union and India cooled in the mid-1970s, and as Bangladesh and Pakistan became reconciled, China's relations with Bangladesh grew warmer. An exchange of diplomatic missions in February 1976 followed an accord on recognition in late 1975.
Since that time, relations have grown stronger, centering on trade, cultural activities, military and civilian aid, and exchanges of high-level visits, beginning in January 1977 with President Zia's trip to Beijing. The largest and most visible symbol of bilateral amity is the Bangladesh-China "Friendship Bridge," completed in 1989 near Dhaka, as well as the extensive military hardware in the Bangladesh inventory and warm military relations between the two countries. In the 1990s, the Chinese also built two 210-megawatt power plants outside of Chittagong; mechanical faults in the plants cause them to frequently shut down for days at a time, heightening the country's power shortage.
Other countries in South Asia. Bangladesh maintains friendly relations with Bhutan, Maldives, Nepal, and Sri Lanka and strongly opposed the Soviet invasion of Afghanistan. Bangladesh and Nepal recently agreed to facilitate land transit between the two countries.
U.S.-BANGLADESH RELATIONS U.S.-Bangladesh relations are excellent. A centerpiece of the bilateral relationship is a large U.S. economic aid program, which totaled about $100 million in 2001. U.S. economic and food aid programs, which began as emergency relief following the 1971 war for independence, now concentrate on long-term development. U.S. assistance objectives include stabilizing population growth, protecting human health, encouraging broadbased economic growth, and building democracy. In total, the United States has provided more than $4.3 billion in food and development assistance to Bangladesh. Food aid under Titles I, II, and III of PL-480 (congressional "food-for-peace" legislation) has been designed to help Bangladesh meet minimum food requirements, promote food production, and moderate fluctuation in consumer prices. Other U.S. development assistance emphasizes family planning and health, agricultural development, and rural employment. The United States works with other donors, and the Bangladesh Government, to avoid duplication and ensure that resources are used to maximum benefit.
Since 1986, with the exception of 1988-89, when an aircraft purchase made the trade balance even, the U.S. trade balance with Bangladesh has been negative, due largely to growing imports of readymade garments. Jute carpetbacking is the other major U.S. import from Bangladesh; total imports from Bangladesh were about $2.35 billion (excluding services) in 2001. U.S. exports to Bangladesh (some $302 million excluding services in 2001) include wheat, fertilizer, cotton, communications equipment, aircraft, and medical supplies, a portion of which is financed by the U.S. Agency for International Development (USAID). A bilateral investment treaty was signed in 1989. Relations between Bangladesh and the United States were further strengthened by the participation of Bangladesh troops in the 1991 Gulf war coalition, and alongside U.S. forces in numerous UN Peacekeeping operations, including Haiti in 1994, as well as by the assistance of a U.S. Naval task force after a disastrous March 1991 cyclone in Bangladesh. The relief efforts of U.S. troops are credited with having saved as many as 200,000 lives. In response to Bangladesh's worst flooding of the century in 1998, the U.S. donated 700,000 metric tons of food grains, helping to mitigate shortages.
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