Border haats: A fate changer for border residents

 

‘The border haat” concept was born on 23 October 2010 during the signing of the border peace agreement with New Delhi. Prime Minister Sheikh Hasina decided to implement the idea of border haats along the Bangladesh’s border with India. Initially, two haats was approved in the agreement. Later, the two friendly nations planned to set up two more border haats in view of economic prospects. Truly, the border haats, known as the rough-and-ready market, came as a blessing for the border residents, without any doubt. 

As part of the move, the two countries did not make a delay in respect of building up border haats along with the chosen border belts in view of business potentiality.   The first border haat was jointly launched at Kalairchar in Kurigram and West Garo Hill district in Meghalaya on July 23, 2011. Currently, the number of border haats stand at 4 that were set up between 2011 to 2015. Two of these are in Tripura (Kamalasagar-Kasba and Srinagar-Chhagalnaiya) and the other two are in Meghalaya (Balat-Dolora and Kalaichhar- Baliamari). The border haats are located in no-man’s-land (zero lines) between the borders.

Afterwards, in February 2018, the decision to build six more haats was taken during a Bangladesh- India trade conference. A memorandum was signed between Finance ministry secretaries of both countries for opening six more haats. The places for six new border haats are- Moulvibazar and North Tripura border, Komolganj and Kamalpur border, Companiganj and Bholaganj border, Thirpur and Nalikata border, Doara Bazar and Rinku border, Mymensingh and Shibbari border. It is to be noted here that India proposed 27 new border haats across the 443 kilometer-long Bangladesh- Meghalaya borders. At an inter-ministerial meeting, Bangladesh did not approve of setting up 23 haats proposed by India on grounds of less than adequate business potential and inadequate infrastructure.

Each buyer of India and Bangladesh are allowed to buy commodities up to US$200 a day. Trading in border haats generally allows three to four labourers/staff/helpers for each of the 25 authorized vendors from either side. This results in the participation of at least 200 people from both sides of the border in each of the border haats. It is a once-a-week event. Goods carried by vendors from within 5 kilometers of the haat on both sides are kept under sheds. The transaction takes place in both Indian rupee and Bangladeshi taka.

The World Bank report titled ‘A Glass Half Full: The Promise of Regional Trade in South Asia’ said that the border haats underscore the importance of people-to-people interactions. The haats have also led to a reduction in informal and illegal trading and generated a peace dividend- the study said. Indian laborers at the (border) haats earn one-third or more of their average monthly income from just four days of working at haats- the World Bank report pointed out.

Once, the volume of informal trade between India- Bangladesh through borders was observed. As a result of informal trade, the two economies were unable to generate revenue from customs duty. Nevertheless, the illegal trade practitioners did not abide by the international trading terms set by the two countries. The border haats brought transparency in many affairs related to border belts. Actually, border haats promoted people-to-people connections apart from building up trust between two countries’ citizens. Traditionally, the people belonging to border belts are deprived of modern facilities. The border haats really improved their lifestyle along with livelihoods. It is to be noted that the border haats have become the source of income to the people who are attached with weekly border haats. Besides, the women are broadly linked with selling and buying local produce. If I think about the economic prospect of border haats, my opinion that border haats changed the economic fate of the people living in remote border areas.   

Before launching the border haats, the low-income group producers in the border zones had to go to distant markets to sell their produce. To reach the markets, extra transport costs and time were needed. With the inauguration of border haats, the sellers’ woes have vanished. Nevertheless, the buyers also faced the same situation while taking an attempt to buy daily necessities from distant markets. In view of the overall economy of border residents, the leaders of the two countries are very much optimistic in respect of launching more border haats. While inaugurating five projects in a ceremony held in Dhaka in March of the current year, Bangladesh Prime Minister Sheikh Hasina and her Indian counterpart Narendra Modi took the decision to build up to three more border haats. As Bangladesh and India share 4,100 kilometers border, there needs to take up programs in respect of setting up new border haats in economically places along the border of the two countries.

Bangladesh government now might take the decision of setting up some border haats along with Bangladesh- Myanmar border. The border haat in Teknaf border, which has divided Bangladesh and Myanmar through Naf river, might have been introduced. Presently, the border trade between the countries is conducted through the Sitttwe and Maungdaw cross-border camps. It is important to note that Myanmar- Bangladesh border trade through Maungdaw started on September 05, 1995. Border trade through Sittwe of Myanmar side started on December 28, 1998. The imported goods from Myanmar come via waterway from Sitttwe and Maungdaw that account for 40 percent of exports from Myanmar to Bangladesh and 29 percent import to Myanmar from Bangladesh.

It should be noted that the border haats area must be covered with the outlets of financial institutions owned by two countries. The traders’ transaction amount needs to be placed at an authorized place controlled by financial institutions. The business people linked to the border haats might be netted with digital financial services also. The growers in the border haats belt might have been allowed to avail credit facilities from financial outlets situated in the areas. If the traders, buyers, and sellers in the border haats are brought into the financial world, they must be happy over the facilities to keep pace with modern markets. The need for building up the required number of establishments along with roads adjacent to border haats is a must. To conclude, border haats helped to strengthen friendly relations between India and Bangladesh.     

 Md. Mazadul Hoque is an
economic analyst.
Email: [email protected]