Bangladesh amidst great power competition: when middle power meets economic statecraft

Bangladesh, strategically positioned at the crossroads of South Asia and Southeast Asia, has emerged as a focal point for major global powers such as China, India, Japan, and the USA. The interaction of these nations with Bangladesh not only signifies the region's economic potential but also unveils the complex geopolitical dynamics in action. China's Belt and Road Initiative has notably expanded its influence in Bangladesh, while India, with historical ties and geographical proximity, plays a critical role in trade, security, and regional stability. Japan and Bangladesh elevated their previous comprehensive partnership to a strategic partnership in 2023. Simultaneously, the USA maintains a longstanding status as the country's largest export market and Foreign Direct Investment (FDI) source. Drawing from the literature on middle power and economic statecraft, this paper sheds light on how Bangladesh navigates the complex dynamics of global geopolitics as a middle power in South Asia. Applying trade, FDI, and Official Development Assistance (ODA) data from 2010 to 2022, our findings suggest that Bangladesh strategically balances the presence of these major powers to safeguard its interests, with their engagements showing more complementarity than competition.