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Abstract
Given the financial burden refugees place on their host states, which results in the impeded economic growth, how can the globalized international system offer support to refugee host states in order to help alleviate domestic pressures associated with offering refugees asylum? This question is especially relevant in the context of Bangladesh, a country currently holding Least Developed Country (LDC) status and which has been supporting a total of over 1.2 million refugees in one of its poorest regions since 2017. Trade partners and regional powers alike have a role to play in supporting Bangladesh economically and thereby offer the state incentives to continue its support of hosting Rohingya refugees, who face death if returned to Myanmar without rights or state accountability. This piece explores how the global compact model, through international trade support, special economic zones, and private sector investment can work in tandem to support Bangladesh’s budding economy, and offer incentives for the state to continue its vital support in protecting Rohingya Refugees from persecution in Myanmar.
Keywords: Refugees and Displacement; Sustainable Development Finance; International Development; Rohingya Crisis; Bangladesh
Hosting refugees places an enormous economic burden on states that often discourages developing nations from implementing welcoming refugee policies. One such state is Bangladesh; since 2017, Bangladesh has hosted the world’s largest refugee camp in one of its poorest socio-economic regions. Over 1.2 million Rohingya refugees have fled genocidal persecution by Burmese military in waves over the span of several decades, the most recent of which occurred in 2017. Since then, the mass exodus of 700,000 Rohingya to Bangladesh has caught the eye of international institutions, political leaders, and activists from around the world, prompting a Fact-Finding Mission by the UN, and a newly launched case for Genocide against Myanmar in the Hague.[1]
Rohingya activists have voiced concerns that Myanmar’s domestic conditions are not yet ready for repatriation of the Rohingya.[2] There is deep ethnic unrest and hatred that has been fostered by the state in the ethnic Rakhine population, as well as brutal violence and destruction that has been implemented by the military (causing the outflow of 700,000 refugees in August 2017).[3] These unsettling domestic conditions, including the destruction of Rohingya villages and homes and the denial of any legal or political rights for the groups prompts the question of whether safe return is possible without state accountability and political rights for the Rohingya in Myanmar. While answering this will take time as the case in the Hague plays out, in the meantime, discouraging Bangladesh from premature return of Rohingya to Myanmar requires addressing the crisis, and the total of 1.2 million refugees in Bangladesh, as a protracted reality. This is something that Bangladesh is reluctant to do, given that it has a lot to manage domestically to alleviate poverty and foster economic development in order to graduate from its status as a Least Developed Country (LDC).[4] Historically, displacement crises around the world with similar markers as the Rohingya crisis, including ethnic conflict and state persecution or forced displacement, have been protracted in nature. This is true of refugees from Somalia,[5] Rwanda,[6] South Sudan, and more.[7] Given these precedents, in order to support Bangladesh’s economy and its leadership in hosting Rohingya refugees, international trade partners and UN member states should offer a hand to keep Bangladesh economically afloat with the assumption that refugees within its borders will need protracted support.
A Global Development Centre Report from 2019 identified that improving the lives of refugees and host communities will require “public and private investments in infrastructure and enterprise development, alongside more flexibility on refugees’ movement and livelihoods” so that refugees are involved in the process of “win-win” economic development alongside host countries.[8] For this to be possible, international trade partners have a role to play in supporting Bangladesh in developing strategies for improved infrastructure, planning, trade, investment, labour mobility contributions, and much more. If done under Bangladesh’s leadership, these development projects could have substantial effects on the state’s ability to host refugee camps, as well as create incentives to support Rohingya refugees if supportive trade policy is contingent on their continued support of the Rohingya.
Making the Compact Model a Reality
One method of supporting Bangladesh in such development strategies could be through adopting the Compact Model. The Compact Model consists of multiyear agreements between host governments and development actors that target investmentstowards improved service delivery and long-term growth for host countries and refugee crises.[9] They differ from traditional donor coordination groups by offering a centralized plan that aligns “common analytical and results frameworks” based on cost-efficiency and impact, so that a unanimous strategy with measurable goals is set for actors to share.[10] An example of this model’s success is the Ethiopia Jobs Compact, where this model created over 100,000 jobs of which 30% were given to refugees.[11] The compact model has likewise been successful in Jordan and Lebanon in recent years.[12] This scheme comes in the stead of a traditional model in which multiple donor groups and aid organizations run disarrayed, individualized programming. Rather than this disarray, compacts appeal to government-led, universalized initiatives that might provide more effective and universally measurable support.
If a compact model is to succeed, however, it requires members of the international community to support Bangladesh’s development over a longer-term timeframe, and requires framing the crisis as protracted.[13] The average time a refugee is expected to experience displacement is roughly 15 years at minimum.[14] Recognizing these refugees’ and Bangladesh’s protracted reality could engage trading partners, fellow UN members states, and Association of Southeast Asian Nations (ASEAN) member states alike to provide support so that Bangladesh can launch compacts to develop refugee and host community conditions in Cox’s Bazaar over time. This can be done, broadly speaking, in two ways.
- Trade and LDC Status
Bangladesh is approaching graduation from the Least Developed Country (LDC) status in 2024.[15] This means the country will need to balance the transition out of preferential trade terms with nations like Canada, Japan, the EU as well as the US.[16] These have included duty-free and quota-free conditions which have grown Bangladeshi sectors like ready-made garments because of huge imports from partners like Europe.[17] Losing these preferential agreements alongside new economic weights like climate change impacts, natural disasters, and Rohingya refugees alike altogether leave Bangladesh economically vulnerable.[18] While a UN task force on Graduation and Smooth Transition is attempting to identify how the UN system can support the LDC graduates.[19] it is up to trading partners like China, Japan, and South Korea to re-consider their immediate revocation of LDC market access eligibility after graduation and extend preferential trading terms as the country transitions out of LDC status.[20]
If LDC trading preferences were extended by current preference providers and expanded to include Bangladesh’s other major trading partners for 100% of goods (which include India, China, Singapore, and Indonesia), Bangladesh’s economy could be supported through the transition period over the next generation. This would be a profoundly helpful move on the part of trading partners, because it would allow for relative economic stability and continued growth despite the added weight of Cox’s Bazaar’s increased costs from hosting Rohingya refugees.
- Special Economic Zones and Private Sector Investment
The second dimension to compacts address how the private sector both at home in Bangladesh as well as from abroad can play an integral role in protracted displacement situations.[21] Bangladesh can prioritize reforms to attract private sector investment to Cox’s Bazaar and create new economic opportunities for hosts and refugees by working with regional partners like China and India, as well as international partners with interest in the region, like Europe and Canada.[22]
Bangladesh and Myanmar are furthermore integral points along the Chinese Belt and Road Initiative (BRI). connecting Myanmar and Bangladesh in terms of trade relations along the BRI initiative could play a role in both economic and diplomatic relations as well.[23] As the other major regional player, India on the other hand has incentives to step up its investments in the region to balance Chinese ambitions in Bangladesh.[24] These potential investments are especially promising when considering Bangladesh’s plan to establish over 100 Special Economic Zone (SEZs) to attract such regional and international players, generate employment opportunities, and accelerate economic growth.[25]
SEZs have several prospects, including strengthening infrastructure and both export capacity and diversity in Bangladesh.[26] Ideally, major investors like India, China, and Germany will look towards investing in the Cox’s Bazaar region to create jobs that phase in employment from host community members first, followed by refugees. This would stimulate much-needed finance-generating opportunities for locals, ease the pressure on host communities in the region who are experiencing strains from job-competition, as well as tap into local industries with growth potential, like fisheries salt production, factories, and more.[27] The caveat is balancing regional politics and bilateral relations between investing countries like India, who stand to help support Bangladesh, but would not do so at the cost of relations with Myanmar, where India has significant economic interests.[28]
Incentivizing such countries who are already large investors to invest even more will require innovative schemes. One example is the Global Skill Partnership (GSP) model.[29] This proposes private sector employers or governments finance training for migrants in exchange for multi-year contracts with the trainees following their certification. This system of mutual benefit can be reworked in many ways across industries to invest in human potential, as well as company growth for investors. If implemented, however, it must be kept in mind that workers from migrant groups shouldn’t be locked permanently into jobs or get caught in unreasonably low wages lest they be exploited. Building these types of innovative programs must emphasis to all partners that they are investments in “addressing long-term shortages” which hopefully incentivize startup capital from governments or private firms.[30]
While the aforementioned cooperation with international trade and regional partners stands to make a lot of impact in supporting Bangladesh, there is likewise much to be done to involve Rohingya in the economy through skills partnerships and job placements in order to stimulate a mutual benefit to the host state, but likewise a benefit for the wellbeing of refugees. In protracted refugee camps, traditional bans on employment that seek to prevent refugee employment threatening the jobs of citizens ends up having detrimental effects on refugee populations. Boredom and a lack of purpose, especially for populations like the Rohingya who have survived massive trauma, suffer consequences to their mental health, as well as foster extremism and crime in camps.[31] The Compact Model stands to involve refugees in economic processes, potentially stimulating the Bangladeshi economy is skills training programs for both refugees and host communities alike were pursued by external investors.
In areas like refugee camps, which are largely financed and run through international aid, the focus is often on how donor commitments can be increased and more countries can feel incentives to contribute to ensuring a basic quality of life in camps. This is vital to protecting the basic human rights of refugees in camps, but is only one piece of the puzzle. Host states require the support of their international peers in order to believe that refugees are not a burden to their own economic growth. If this is made a reality, this could encourage open refugee policies that offer relative safety to the displaced who are fleeing persecution from their home. Bangladesh is still not recognizing the Rohingya as refugees under the 1951 Refugee Convention, instead calling them “displaced Myanmar nationals” in order to reduce the international obligations of asylum. To protect both asylum rights, the lives of refugees, and likewise not compromise on the domestic growth of Bangladeshis, international support to both camps and Bangladesh’s economy is essential.
Anushka Kurian is a fourth year student majoring in International Relations and Ethics, Society and Law. She is an Event Reporter and Contributor for Synergy: The Journal of Contemporary Asian Studies, South Asia section. Her research interests include migration and forced displacement, mass atrocities and human rights, and international development.
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[1]Bethany Hines. “Rohingya Refugees Need Your Help.” CNN. Cable News Network, June 19, 2018. https://www.cnn.com/2017/09/13/world/iyw-rohingya-refugees-flee-violence/index.html; UN Human Rights Council. “Detailed findings of the Independent International Fact-Finding Mission on Myanmar”. September 16, 2018. https://www.ohchr.org/Documents/HRBodies/HRCouncil/FFM-Myanmar/20190916/A_HRC_42_CRP.5.pdf (accessed December 2019); Aljazeera. “Aung San Suu Kyi defends Myanmar against Genocide allegations” Aljazeera. December 11, 2019. https://www.aljazeera.com/news/2019/12/myanmar-suu-kyi-stand-genocide-case-hague-191211054254397.html(accessed December 2019).
[2]Joshua Carroll. “Rohingya activists slam ASEAN’s call for dialogue with Myanmar.” Aljazeera. August 2, 2019. https://www.aljazeera.com/news/2019/08/rohingya-activists-slam-asean-call-dialogue-myanmar-190802134052481.html(accessed December 2019)
[3]Ben Rawlence, Ben Rawlence, City of Thorns(New York: Picador, 2017).
[4]Mustafizur Rahman. “Trade Benefits for Least Developed Countries: the Bangladesh Case: CDP Background Paper No. 18.” UN Department of Economic and Social Affairs, July 2014. https://www.un.org/en/development/desa/policy/cdp/cdp_background_papers/bp2014_18.pdf
[5]United Nations High Commissioner for Refugees. “Somalia” https://www.unhcr.org/somalia.html(accessed December 2019)
[6]United Nations High Commissioner for Refugees. “Rwanda” https://www.unhcr.org/rw/ (accessed December 2019)
[7]United Nations High Commissioner for Refugees. “South Sudan Emergency” https://www.unhcr.org/south-sudan-emergency.html(accessed December 2019)
[8]Cindy Huang and Kate Gogh, “Toward Medium-Term Solutions for Rohingya Refugees and Hosts in Bangladesh: Mapping Potential Responsibility-Sharing Contributions.” Centre for Global Development,https://www.cgdev.org/publication/toward-medium-term-solutions-rohingya-refugees-and-hosts-bangladesh-mapping-potential(accessed December 2019), p. 3
[9]Huang and Gogh, “Toward Medium-Term Solutions for Rohingya Refugees and Hosts in Bangladesh: Mapping Potential Responsibility-Sharing Contributions.” p. 3
[10]Centre for Global Development and International Rescue Committee, Refugee Compacts: Addressing the Crisis of Protracted Displacement. Washington; New York: 2017. https://www.cgdev.org/sites/default/files/Refugee-Compacts-Report.pdf(accessed December 2019), p. 11
[11]Huang and Gogh, “Toward Medium-Term Solutions for Rohingya Refugees and Hosts in Bangladesh: Mapping Potential Responsibility-Sharing Contributions.” p. 3
[12]ibid., 2
[13]ibid.
[14]Owen Barer and Euan Ritchie, “Refugees are a Boon not a Burden: Here’s How to Get the Best Results for Everyone.” Centre for Global Development, https://www.cgdev.org/blog/refugees-boon-not-burden-how-get-best-results(accessed December 2019)
[15]ibid.
[16]Rahman, “Trade Benefits for Least Developed Countries: the Bangladesh Case: CDP Background Paper No. 18.”
[17]ibid.
[18]Nathalie Risse. “Bangladesh, UN Consider Expected LDC Graduation in 2024.” IISD SDG Knowledge Hub. December 18, 2018. https://sdg.iisd.org/news/bangladesh-un-consider-expected-ldc-graduation-in-2024/(accessed December 2019)
[19]Risse, ““Bangladesh, UN Consider Expected LDC Graduation in 2024.”
[20]Huang and Gogh, “Toward Medium-Term Solutions for Rohingya Refugees and Hosts in Bangladesh: Mapping Potential Responsibility-Sharing Contributions.”
[21]ibid., 8
[22]ibid.
[23]ibid., 7
[24]ibid.
[25]Razzaque, Mohammad A., Bazlul H. Khondker, and Abu Eusuf. “Promoting inclusive growth in Bangladesh through special economic zones.” March 2018. https://asiafoundation.org/wp-content/uploads/2018/11/EDIG-Promoting-inclusive-growth-in-Bangladesh-through-special-economic-zones.pdf(accessed December 2019).
[26]Huang and Gogh, “Toward Medium-Term Solutions for Rohingya Refugees and Hosts in Bangladesh: Mapping Potential Responsibility-Sharing Contributions.”
[27]ibid.
[28]Khriezo Yhome. “Examining India’s stance on the Rohingya crisis.” ORF Issue Brief 247. Observer Research Foundation. July 2018. https://www.orfonline.org/wp-content/uploads/2018/07/ORF_IssueBrief_247_Rohingya_FinalForUpload.pdf(accessed December 2019)
[29]Michael Clemens. “Global Skill Partnerships: A Proposal for Technical Training in a Mobile World (Brief)”. Centre for Global Development. October 11, 2017. https://www.cgdev.org/publication/global-skill-partnerships-proposal-technical-training-in-mobile-world-brief(accessed December 2019)
[30]Michael Clemens. “Global Skill Partnerships: A Proposal for Technical Training in a Mobile World (Brief)”, p. 3
[31]Ben Rawlence, City of Thorns(New York: Picador, 2017).
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