The Indo-Pacific Strategy (IPS) is a buzz-phrase today with different interpretations. President Donald Trump has made US engagement in the Indo-Pacific region a top priority of his administration.
The Indo-Pacific region spans two regions of the Indian Ocean and the Pacific Ocean stretching from the west coast of the United States to the west coast of India.
Many analysts see this as an effort of the United States to contain China.
“Our Indo-Pacific vision is rooted in the fact that the United States is an Indo-Pacific nation and we will continue to prioritise efforts that that lead to peace and prosperity: sovereignty, freedom of navigation and over flight, standards of trade and investment, respect for individual rights and rule of law, and transparency of military activities,” Laura Stone, a Deputy Assistant Secretary at the US Department of State, recently said at a press briefing.
The US Embassy Dhaka’s Deputy Chief of Mission, JoAnne Wagner, said Bangladesh has an “essential role” to play in the Indo-Pacific.
“By expanding economic ties with free markets throughout the region, acting as a stabilising force for security, defending human rights, and promoting good governance, the United States and Bangladesh partner to advance the goals and ideals of the Indo-Pacific Strategy.”
She said working together to promote openness, prosperity, and peace in the Indo-Pacific region, the United States and Bangladesh will “only grow closer”.
Here is how the US explains the strategy.
Promoting economic prosperity
The Indo-Pacific Strategy reinforces the market-based economic systems, private-sector finance, and open investment environments that have driven the region’s economic success, Laura Stone said.
The United States is the largest source of foreign direct investment in the region. US foreign direct investment more than doubled from 2007 to 2017, reaching $940 billion.
“In 2019, we conducted over $1.9 trillion in two-way trade in goods and services with the region, supporting more than 3 million jobs in the United States and 5.1 million jobs in the Indo-Pacific.
“The US private sector is one of our biggest strengths, contributing to high-standard development, transparency, and the rule of law. In contrast, state dominated and directed investment often results in corruption and unevenly distributed economic growth,” she said.
JoAnne Wagner explained: the Asian Development Bank estimates the Indo-Pacific region needs about $26 trillion in investment by 2030 to develop its infrastructure.
“No one country, one government, can provide such funding; the private sector must play a key role. So, through the IPS, we are focused on helping the US private sector to do what it does best–spark innovation, economic growth, and long-lasting prosperity.”
For example, she said, through the Asia EDGE program the US government is helping improve energy security and bringing reliable, affordable energy to Bangladeshis throughout the country. We’ve supported signature projects, like Bangladesh’s first liquified natural gas import terminal, commissioned by Excelerate Energy in Moheskhali, and power plants using GE Power technology.
“These kinds of projects and joint ventures with US firms will help ease Bangladesh’s transition from coal to gas, and supply electricity for decades to hundreds of thousands of homes – and that changes lives.”
She said they were growing commercial ties with Bangladesh, despite the pandemic.
“Who would have thought a year ago that US clothing giant Hanes would buy and BEXIMCO would deliver 6.5 million pieces of personal protective equipment in less than two months? Bangladesh is now part of the small group of world-class, large-scale PPE manufacturing nations, and can quickly become a major global player in the sector.”
Promoting security
Laura Stone said the Indo-Pacific region faces a number of common threats that require us to strengthen longstanding security alliances and partnerships and encourage a more networked approach to security cooperation.
“Our aim is to expand a flexible, resilient network of security partners to promote regional stability, advance maritime security and freedom of navigation, expand humanitarian assistance/disaster response and peacekeeping operations, and counter transnational crime.”
“The United States and Bangladesh cooperate closely on security issues, ranging from counterterrorism to peacekeeping, and we are looking to deepen that partnership.
“Bangladesh has consistently been one of the highest troop-contributing countries to UN Peacekeeping missions. We are grateful for Bangladesh’s commitment to these missions around the world, and in support of Bangladesh’s participation, both the United States and Bangladesh announced a joint Smart Pledge for an operational-level unmanned aerial system (UAS) during the March 29, 2019 UN Peacekeeping Ministerial in New York,” she said.
“Our regional security assistance under this initiative also includes countering transnational crime, illicit trafficking, disaster relief, international peacekeeping, and cyber-crime.”
The United States is looking to partner with Bangladesh in developing its capabilities to advance shared maritime security, humanitarian assistance and disaster response, counterterrorism, and peacekeeping objectives.
The Bay of Bengal Initiative remains a key feature under the IPS, she said.
“Since 2018 we have provided more than $147 million in Foreign Military Financing alone to enhance the capacity of Bangladesh, Maldives, Nepal and Sri Lanka to share air and maritime domain awareness information with partners in the region to improve detection and response to disasters and emerging threats.”
JoAnne Wagner said: “Whether guaranteeing freely navigable trade routes, developing greater capacity to respond to natural disasters, or combatting trafficking in persons and transnational crime, a secure Indo-Pacific supports a prosperous Indo-Pacific.”
“As part of our IPS partnership, US Coast Guard vessels transferred under the US Excess Defense Article program have helped Bangladesh exercise sovereignty over its coastlines and exclusive economic zones, counter crime – and assist its neighbours. In April, Bangladesh Navy frigate Somudra Avijan (formerly US Coast Guard Cutter Rush) delivered COVID-19-related aid to the Maldives. We also maintain strong training and exchange ties between our militaries.”
“Public health disasters are also security challenges. Consequently, on top of our$1 billion, decades-long public health cooperation programs, the US has committed over $56.5 million –so far –to support Bangladesh’s COVID-19 response. We’ve also implemented a pilot program to provide fresh food to Dhaka’s urban poor hard hit by the pandemic,” she said.
Promoting good governance
Laura Stone said transparency is the basis for sustainable governance solutions responsive to citizens.
Accordingly, State and USAID committed over $263 million dollars towards governance in our IPS last fiscal year.
The Indo-Pacific Transparency Initiative (IPTI), an effort involving over 200 programs by a range of US government agencies, focuses on anti-corruption and fiscal transparency, democracy assistance, youth and emerging leader development, media and internet freedom, and protecting fundamental freedoms and human rights.
“As our competitors undermine openness, innovation, and free speech and access to information, our goal is to provide our South Asian partners with tools to resist economic and political exploitation,” she said.
JoAnne Wagner said a free, open, prosperous Indo-Pacific also requires promoting respect for the rule of law, transparency, and good governance.
US businesses are hungry to invest in countries that operate transparently, uphold the rule of law, promote worker safety, and protect both workers’ rights and intellectual property.
“Weak institutions, corruption, and poor human rights conditions deter investment, and companies look elsewhere when faced with such risks,” she said.
“That’s why, for example, we are continuing to promote worker safety, and working with the judiciary, legal-aid organizations, and vulnerable groups to improve access to, awareness of, and delivery of legal services in Bangladesh.”
Investing in people
Laura Stone said another strong pillar in our relationship with the Indo-Pacific – people-to-people ties.
“One of things I am most proud of is our investment in developing future leaders around the world,” she said, citing examples of hundreds of exchange programs and educational opportunities in the US.
One of the premiere outreach spaces is the Edward M. Kennedy (EMK) Center for Public Service and the Arts, located in Dhaka.
“This space fosters dialogue with Bangladeshi students, journalists, civil society leaders, entrepreneurs, academics, artists, and changemakers from all walks of life. On average, EMK conducts 103 programs and hosts 9,200 visitors per month.”
JoAnne Wagner said since 1971 the US has invested more than $7 billion in development assistance in Bangladesh.
“Private sector investment is also vital to building pipelines, bridges, and production facilities, but isn’t enough to ensure sustained prosperity. To invest in the future, you have to invest in people,” she said.
“People-to-people ties will continue to be the heart of U.S-Bangladesh relations. Each year we sponsor approximately 110 Bangladeshi students and professionals to participate in exchange programs in the US
“In fact, founding father Bangabandhu Sheikh Mujib Rahman was one of the first Bangladeshis to participate in a US government exchange program,” she said.
More than 1,200 Bangladeshi youth from across Bangladesh have graduated from the US’s English Access Microscholarship program – a two-year English language, leadership development, and community service program for disadvantaged students.
The US and Bangladesh will hold the first Economic Growth Dialogue this month and the third annual Indo-Pacific Business Forum in October.