MAPPING THE IMPACT OF INDIAN BORDER FENCE ON INFORMAL TRADE IN BANGLADESH

Abstract

This study evaluates the impact of the fence constructed by India along its border with Bangladesh
in 1983 on the informal and formal trade as well as the local people's livelihood. The research focuses on the
Panchagarh District, one of the regions affected by the construction of the fence, utilizing a mixed-method
approach that combines qualitative and quantitative techniques of analysis. The study highlights the historical
trade relationship between India and Bangladesh and investigates various forms of formal and informal trade
between the two countries. The empirical data collection conducted on Kajal-Dighi village under Kaliaganj,
Laiyapara, Banderdanga, Paharipara under Borososhi, and Banglabandha under Tetulia Upazilla of
Panchagarh district reveals the acuteness of the informal trading in non-fenced areas. The study finds that
informal trade is still continuing and has significant effects on the local people's livelihood, causing
unemployment for farmers and missing trust between the Border Guard Bangladesh (BGB) and the Indian
Border Security Force (BSF). The paper provides alternative solutions for mitigating the fence's impact on
local people's livelihood while creating trade policies that will benefit both countries. The study's
recommendations highlight the need for reasonable and rational tariff structures for imported goods, reducing
the cost of agricultural product cultivation, creating awareness among border residents, regular monitoring
of the fence, and organizations focusing on development projects for needy people in border areas. The
research concludes that addressing informal trading and its impact must be a priority to build a harmonious
relationship between countries.