Strategic Convocation: Sovereign Principals and Western Coalition Calibrate National Policy Impasses

Outreach Wing
May 27
5 min read

Updated: Jun 3

*Partners in conversation during the C.O.M.P.A.S.S. Dialogue by ISTR in Dhaka, Bangladesh*

The Institute of Strategy and Tactics Research (ISTR) convened the inaugural session of the C.O.M.P.A.S.S. Dialogue today. This high-confidence deliberation served as a functional bridge for unvarnished communication between the Sovereign Tier of the Bangladesh Government and diplomats from Western countries including France, Switzerland, Norway, United States, Turkey, and Australia. The session focused on a clinical audit of the legislative and fiscal bottlenecks threatening the November 2026 LDC graduation timeline and regional security stability. The dialogue was conducted by the president of ISTR-Abu Rushd. Bangladesh Defense Journal and Change Initiative partnered with ISTR for this dialogue.

To facilitate an environment of absolute transparency and to make it a high confidence one, the session was conducted strictly under Chatham House Rules. The collective consensus signals a strategic pivot toward institutional predictability and the identification of hard tactical truths. The following data points represent the verified outcomes of the dialogue and the established "Strategic Impasses."

I. THE LDC-GSP+ NEXUS AND TRADE CONTINUITY: Investment agenda reform is identified as key for investors, competitive environment must be ensured, and prioritization of certain parties over others at their expense is a negative signal. Bangladesh must offer concrete guarantees at a time when Western partners have free trade agreements with its competitors. A solid plan for the post-LDC graduation period would help clarify the situation.

The dialogue identified that failure to address these specific bottlenecks places $8 billion in annual export value at immediate risk.

II. MARITIME SOVEREIGNTY AND REGIONAL INTEROPERABILITY: Interoperability between Bangladesh and partner military forces across three dimensions; human, procedural, and technological can be improved through military exercises. Publication of a national defense/security strategy document authored by the civilian government and military would help engender confidence in partners.

Principals reached a high-confidence understanding on the necessity of a shared defense posture that secures trade corridors without compromising national sovereignty.

III. ENERGY-DEFENSE NEXUS AND FISCAL STABILITY: Energy grid stability weakened as a result of past malpractices with power supply agreements. Unreliable energy supply to industrial sectors remains a key hurdle for continued foreign direct investment. Lessons to be learnt from previous attempts at proliferation of solar energy supply, and revision of the tariff structure for components of renewable energy systems should be undertaken.

The convocation audited the $2.5 billion energy credit requirement, identifying the precise fiscal barriers preventing the transition toward a resilient sovereign power grid.

IV. INSTITUTIONAL PREDICTABILITY AND GLOBAL ALIGNMENT: Transparency and clear communication by governance arms would help clarify precise areas and points of cooperation. Gradual implementation of ESG standards critical to continued trade cooperation. ERD is developing a dashboard for monitoring the performance of government departments.

The session established that institutional predictability is the primary catalyst for maintaining the Western coalition’s long-term cooperation and investment.

M. Zakir Hossain Khan, Director of Nature & Integrity at ISTR has stated that rooftop solar solutions have the potential to be of high value to Bangladesh, and that 30 to 50 percent of energy costs could be reduced for small and medium enterprises (SMEs) in the case of a shift to renewable energies by them. He stated: “I do offer an open call to everyone for a 5 billion USD fund for renewable energy, specifically rooftop solar.” He noted how previous opportunities on funding were missed and suggested the introduction of a mechanism for immediate solution of problems on such fronts.

Anindya Islam Amit, State Minister for Power, Energy, and Mineral Resources clarified that the government has set ambitious targets to generate 20% of its power from renewable sources, aiming to achieve up to 10,000 MW during its 5-year tenure. “The government has a plan to set up 2,000 MW of solar energy by the next six months.”, he stated, clarifying the position for the short term. Furthermore, plans to float tenders for offshore and onshore gas exploration are set for the end of the month or early next month. He further stated that his ministry is collaborating with city corporations on waste-to-energy projects. Lastly, there is optimism about lithium battery supplies for the next budget cycle while the government has already allowed the import of electric propulsion school buses with zero tariffs.

An ambassador from an European nation stated that Bangladesh relies too heavily on the readymade garments sector, which renders the country sensitive to changes in legislation made elsewhere and other external shocks. The ambassador further stressed that corruption and red tape are primary deterrents for European investors. The ambassador also emphasized that private investors look at actual laws passed and actions taken. To quote: “If you want to attract investment, you have to make it very clear what you are offering.” and “The message is very simple; we want to help you, but help us to help you and create this very favorable, positive, business-friendly environment.”

A diplomat noted that Bangladesh loses 2% of its GDP annually due to climatic shocks and cautioned the government to learn from previous missteps. The diplomat specifically pointed to the failure of rooftop solar policies from 2010 onwards, where solar panels were installed but later failed due to a lack of operational maintenance and enforcement. The diplomat emphasized that massive new foreign loans for climate and energy projects should be considered critically as the burden of repayment falls on ordinary Bangladeshis.

The diplomat stated: “In coming days, development debt and funding are going to shrink more. So we need more innovative financing sources.“ Alternative measures were hinted at, such as technology transfers and policy exchanges. The diplomat also mentioned that an air quality program with the World Bank includes Bangladesh among other developing states.

A participating defense attaché has stressed the importance of improving interoperability through military exercises in regards to Indo-Pacific issues. The attaché has praised the Bangladesh Armed Forces and mentioned that it is an institution that they see as a partner and not just someone who needs help. The attaché also emphasized that Bangladeshi military officers consistently rank in the top tier of international students at military educational institutions in their country. The attaché outlined the three core areas of interest in partnering with Bangladesh Military, which are Education, Equipment, and Exercises.

Mahdi Amin, Advisor to the Prime Minister, has stated that the government is committed to building a rules-based society centered on human rights, labor rights, and freedom of expression, with a zero-tolerance policy for human rights violations. He also outlined plans for a third floating storage and regasification unit (FSRU), with a frank acknowledgement of the current energy supply crisis. He also stated that new LNG and LPG terminals will be constructed, with the addition of LPG cards to be issued to households.

Mirza Fakhrul Islam Alamgir, the Minister for Local Government, Rural Development, and Co-operatives acknowledged that the government has a mandate for relationships with everyone, and is working to bring development to the grassroots level. He further added that the government is working day and night to ensure rule of law, safety for investors, their investments, and positive competition in the market.

Abu Rushd, President of ISTR, and the host of the dialogue, stated: “Through dialogues and negotiation none can solve 100% of their crisis. But the process itself can get us a lot closer to solving the crisis than anything else. Today we initiated the very process.”

Along with the named minister, advisors, state minister and diplomats, relevant high ranking officials from the ministries, economic relations division, security forces, various chambers of commerce and multilateral development banks were present and participated thoroughly in the dialogue.

Select Photos from the Event