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Arakan’s Vision: Trade as a Pathway to Prosperity and Cooperation with Bangladesh

By GAN

Shortread: Opinions                                                                          August 16, 2025


Locations of Arakan and Bangladesh (photocrd)
Locations of Arakan and Bangladesh (photocrd)

Arakan, a land rich in history and resources along the Bay of Bengal, stands at a pivotal moment in its journey toward self-determination and prosperity. With administrative control over most of Rakhine State’s townships, Arakan seeks to reclaim its legacy as a sovereign and inclusive region, guided by the principles of the “Arakan Dream.” Enhanced trade relations with Bangladesh offer a transformative opportunity to achieve this vision, fostering socioeconomic progress, mutual trust, and collaborative solutions to shared challenges.

 

Arakan’s proximity to Bangladesh and its coastal access position it as a natural hub for regional commerce, capable of uplifting livelihoods across diverse communities. Improved trade with Bangladesh can unlock economic opportunities by connecting Arakan’s agricultural and marine resources—rice, fish, livestock, and shrimp—to Bangladeshi markets. In return, Bangladesh’s textile and consumer goods industries can provide affordable products to Arakanese households, creating a balanced exchange that benefits both sides. Such trade initiatives can empower local cooperatives and markets, ensuring that all communities share in the prosperity.


Historically marginalized under Myanmar’s central governance, Arakan’s communities stand to gain from economic activities that create jobs, enhance food security, and foster resilience. By prioritizing equitable distribution of trade benefits, Arakan can address poverty and build a foundation for sustainable development, extending these gains to Bangladesh’s border regions. This economic interdependence promises to strengthen community ties, making trade a cornerstone of Arakan’s revival.


Trade’s potential extends beyond economics, offering a pathway to address complex border challenges, including insecurity, the Bangagya (Rohingya) refugee crisis, and concerns over militancy. Arakan recognizes that stability is essential for thriving commerce, and economic ties with Bangladesh can foster the trust needed for cooperation. Secure trade routes along the Naf River and land borders can curb smuggling and illicit activities, which often destabilize the region.


The Bangagya refugee crisis in Bangladesh and ongoing tensions within Arakan, requires collaborative solutions grounded in mutual interests. Trade can serve as a unifying force, creating spaces like cross-border markets where Arakanese, Bangagya, and Bangladeshi traders interact, building trust and reducing divisions.


Kanyinchaung EZ in Maungdaw (photocrd)
Kanyinchaung EZ in Maungdaw (photocrd)

Economic stability in Arakan can also facilitate the voluntary and dignified repatriation of Bangagya refugees, easing Bangladesh’s humanitarian burden while aligning with Arakan’s commitment to inclusivity. Furthermore, by generating employment and opportunities, trade can deter vulnerable youth from extremist ideologies, addressing concerns about militancy. Arakan is open to partnerships with Bangladesh on security measures, such as intelligence-sharing, to ensure that trade bolsters regional stability rather than exacerbating tensions.


The unique strength of trade lies in its ability to deliver win-win outcomes, fostering cooperation not only among authorities but also at the grassroots level, paving the way for broader solutions. Trade engages communities directly—farmers selling crops, artisans crafting goods, and traders crossing borders—creating tangible benefits that build lasting connections.


A vibrant border market, for instance, could see Arakanese and Bangagya vendors working alongside Bangladeshi traders, forging cultural and economic ties that transcend historical divides. These grassroots interactions complement formal agreements, creating a multi-layered framework for collaboration. By empowering ordinary people to invest in shared prosperity, trade strengthens the social fabric of Arakan and its neighbor, fostering a sense of shared destiny.


On a regional scale, trade can elevate Arakan’s role as a gateway between South and Southeast Asia, unlocking significant geopolitical and economic potential. Infrastructure projects like the Kyaukphyu Special Economic Zone (SEZ) and deep-sea port, if managed to prioritize Arakanese interests, can enhance connectivity and attract investment.


Unlike foreign-driven initiatives that risk exploiting Arakan’s resources, partnerships with Bangladesh offer a more balanced approach. Joint trade zones or shared logistics networks can drive economic growth, benefiting both Arakan and Bangladesh’s border regions. The resulting prosperity can fund critical infrastructure—schools, hospitals, and roads—addressing Arakan’s historical underdevelopment and supporting neighboring communities. By leveraging trade, Arakan can build a self-reliant economy that uplifts all its people, regardless of ethnicity, while contributing to regional stability.


Border Trade (photocrd)
Border Trade (photocrd)

Challenges remain on this path.


The Bangagya refugee crisis demands sensitive, inclusive policies to ensure that trade benefits reach all communities, fostering unity rather than division. Arakan is committed to engaging Bangladesh in dialogue to address refugee repatriation humanely, ensuring that economic gains translate into social progress. External pressures, including the Myanmar military’s resistance and exploitered foreign interests, pose risks to Arakan’s autonomy. Trade agreements must prioritize local communities and safeguard sovereignty, ensuring that Arakan’s resources serve its people first. Additionally, careful management of border security is essential to prevent trade from inadvertently fueling instability.


In embracing trade with Bangladesh, Arakan sees a pathway to realize its vision of a prosperous, inclusive, and self-determined region. By fostering socioeconomic opportunities, building trust to resolve border challenges, and creating win-win solutions, trade can transform Arakan-Bangladesh relations into a model of regional cooperation. Arakan calls on Bangladesh and the international community to support its aspirations for self-governance and equitable development. Through trade, dialogue, and mutual respect, Arakan and Bangladesh can forge a future of shared prosperity, where communities thrive, borders unite rather than divide, and the “Arakan Dream” for all communities becomes a reality.

 

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