Bangladesh Analysis INTRODUCTION OF OFFSET POLICY IN DEFENCE PROCUREMENT TO FOSTER INDIGENOUS DEFENCE SECTOR OF BANGLADESH: OPPORTUNITIES AND ROAD MAP FOR SELF RELIANCE

Isa Khan

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Commander S M Tanvir Sin Ard, (L), psc, BN

Abstract

Bangladesh Armed Forces, especially Bangladesh Navy, mostly relies on foreign source in its pursuit of modernization efforts. It has made Bangladesh strategically vulnerable. Besides, she lacks sufficient backward linkages, funding for R&D, and institutionalized approach to support extensive military industrialization. Many nations have adopted Offset Policies to foster indigenous capability development of their defence industries and now exporting their military items worldwide.

Again, defence procurement is a costly affair. Furthermore, providing Offsets increases the cost, which is to be borne by the importing country. Hence, Offset deals demands better policy formulation, transparency, prudent planning and supervision. Therefore, the researcher studied the feasibility of introducing an Offset in defence procurement, especially for the capital purchase to develop the indigenous capability of Bangladesh defence industries. In doing so, the research followed a mixed-method study.

The research suggested that an appropriate Government-Level Policy/ strategy will be essential to combat potential implementation challenges. Thus, Transfer of Technology, Joint Venture, and Strategic partnership with international defence manufacturers could be viable options to develop the defence industries and their backward linkages. However, attaining self-sufficiency in hardware manufacturing and software designing may not be feasible for Bangladesh with the present socio-economic status. Instead, these will be suitable once the required infrastructure, including processing plants, repair-maintenance facilities, skilled workforce, and an appropriate international market for exporting military items, are made available.

Introduction

The Armed Forces (AF) of any country play the most vital role in protecting oneself from external aggression. However, the demand for defence expenditure is growing everyday due to the evolving technology and nature of the threats. Except for very few countries, almost all rely on international defence manufacturers to meet their requirements. Meanwhile, many nations have adopted Offset Policies to foster indigenous capacity development of their defence industries and lessen foreign dependency. At present, over 130 countries are using Offsets Agreements. (1)

A defence Offset can be considered a policy tool to facilitate a defence-industrial collaboration in technology transfer, overall capacity building, and human resource development through international defence procurement. It will oblige foreign companies to invest inside through a Transfer of Technology (TOT). Bangladesh Navy (BN), since inception, is primarily dependent on foreign procurement and Original Equipment Manufacturer (OEM) assistance for hardware manufacturing, software designing, and various repair-maintenance activities.

Due to the overdependency, Bangladesh Armed Forces (BDAF), especially BN, may face a significant challenge, if any friendly nation denies supplying platforms, critical spares, weapons, sensors, or any necessary equipment during the crisis. Hence, developing indigenous capacity and achieving self-sufficiency is crucial for the BD defence industries to combat future security challenges. Moreover, the indigenous defence industry is also one of the critical considerations for BD as per the Forces Goal-2041.

BD lacks patronization for R&D infrastructure and backward linkages for production lines and repair-maintenance facilities. Furthermore, BD has few capable Public Support Undertakings (PSU) and commercial industries. However, a less Institutional approach is evident to date to bring all the PSUs and private sectors under the same umbrella to develop its indigenous defence sector. According to several studies, neighbouring countries have already introduced Offset Policy in their defence acquisition, allowing international companies to develop their defence sectors.

They are using Offset Policies as institutional tools to collaborate amongst PSUs, commercial industries, and foreign vendors for developing their defence sectors. Whether such initiatives would foster indigenization of the BD defence sector especially Bangladesh Navy in attaining self-reliance, or not, need to be determined. Therefore, this research will seek the opportunities to propose a viable roadmap/ implementation method to introduce the Offset Policies in defence procurement to foster BD indigenous capacity development, especially for BN.

Literatures Consulted and Scopes of the Research: In BD, not enough literature related to Offset Policy in BD's defence procurement is available till date. Therefore, Offset Policies of other countries were studied, where impacts, challenges for implementing such policies, and subsequent progress in mitigating those challenges were identified. Few literatures discussed the importance of indigenous defence industries, the strategic vulnerability against foreign dependency on the warship building, modern weapons, sensors, etc. Again, all researchers opined that, for BD, the indigenous defence capacity development efforts could be a pragmatic solution to reduce overall strategic vulnerability and achieve self-sufficiency. However, still, there are sectors/ areas through which indigenous capacity of the BD defence sector, especially for BN, could be achieved, e.g., by Introducing Offset Policy in defence procurement. Therefore, the research aims to explore following scopes:

a. Evaluating the feasibility of incorporating Offset Policy in the BD defence procurement especially for BN.

b. Sketching a phase-wise implementation and evaluation plan through a possible roadmap for self reliance taking examples from countries using Offset in their defence acquisition.

Research Hypothesis: Introduction of Offset Policy in defence procurement will foster BD indigenous capacity development to support Bangladesh Navy in military hardware manufacturing, software designing, and repair maintenance to attain self-reliance.

Offset In Global Defence Industry and Bangladesh Defence Sector

Defence Offset
: Defence Offset is a contractual obligation in which a purchasing Government (importing country) requires a supplier (exporting country) to reinvest a portion of the contract value in the buyer premises (importing country). It can also be termed as industrial compensation, industrial cooperation, countertrade, etc. There are mainly two types of defence Offset, e.g., Direct defence offset and Indirect defence offset. In the Direct Offset, goods and services are directly related to the purchaser's equipment. In contrast, Indirect Offsets indicate military goods and services unrelated to the specific defence equipment purchased.

Categories in the Global Defence Industry: Richard Bitzinger has divided the defence industries into three tiers, which are shown below through a pyramid model and a table:

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Defence Offset Policies Worldwide: Defence Offset became popular amongst the countries in the last century. Countries like India, Pakistan, and Malaysia already have started developing their defence industries under a government-level policy framework. Balakrishnan (2008) argued that Malaysia formulated a comprehensive defence industry Strategy in 2005 to provide strategic guidance to its defence industrial sector. (1) On the other hand, India has taken significant steps to promote its Industry through offset policies. The new Indian Defence Acquisition Procedure (DAP- 2020) focused on the national campaign, i.e., the 'ATMANIRVAR BHARAT' and introduced a categorized acquisition system for identifying appropriate defence Offset. (2)

Deduction on Current Defence Industrial Trend: Defence Offsets have become a widely used mechanism, where Governments have vital roles in formulating comprehensive strategies to provide strategic guidance to the defence sector and branding their production. Thus, despite a few negative aspects (risks) of applying Offset, i.e., corruption, Offset can still promote the defence industry and improve countries' overall economy through meticulous planning, supervision, and implementation.

Analysis of the Bangladesh Defence Sector

Foreign Dependency Level- Bangladesh Navy Perspective
: The BDAF, especially BN, primarily depends on foreign vendors to modernize its platforms, weapons, sensors, systems, and human resource development. For better assimilation of Bangladesh Navy dependency on foreign support, a few case studies and experts' opinions derived from the survey. From the Large Patrol Crafts (LPCs) construction project in KSY, it was found that, almost 95% of the materials used for construction were from foreign countries. Even Chinese engineers conducted set-to-work, harbour, and sea trials. (3)

Most respondents opined that Bangladesh Navy is primarily dependent on OEM support for the Hardware manufacturing and Software designing perspective. However, Bangladesh Navy is less dependent on OEM for Repair-Maintenance activities. Again, senior naval officers opined that Bangladesh Navy currently have the capacity to design, produce and repair few mechanical hardware, e.g., pumps, rubber seals, etc. However, she lacks in design and constructing new ships, electrical switchgear, sophisticated sensors, weapons, and various control and management systems. (4)

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Impediments to Attaining Self Reliance - BD Defence Perspective

Common Pitfalls
: Ahmed (2015) argued the lack of technological aptitude as the most significant difficulty. (5) Again, Rashid (2021) opined that BD has no market strategy for its indigenous defence products. (6) Requirement for defence products within BD is also minimal. Islam (2013) sighted tanks, fighter planes, and naval ships as examples of military items whose total requirements within services are insignificant for initiating any industrial undertaking. (7) Moreover; insufficient funding, heterogeneous acquisition, unavailability of appropriate backward linkages, and absence of skilled workforce for R&D are other prime hindrances of the BD defence sector in attaining self-reliance.

Status of Local Suppliers/ Contractors for BD Defence Sector: Survey results showed that local suppliers of the BD defence sector have been only the Middlemen/ Commission Agents since defence procurement started. They had hardly any capacity-building investment. As a result, no significant capacity in terms of self-sufficiency is yet to be developed for the BD defence industries.

Challenges Faced by Users (Ships Staffs): Surveys showed a minimum of 80% of respondents indicated common challenges for Bangladesh Navy ships to ensure operational readiness.

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Challenges Faced by Government Defence Contractors: Government defence contractors in BD like shipyard, dockyard, etc., generally carry out factory-level fault finding and repair activities. Again, PSUs like BITAC, BAC, BMTF, BOF, etc., can also manufacture spares, however in a limited scale. Hence, Bangladesh Navy has to procure spares from foreign countries. Besides, unavailability of raw material processing systems, lack of knowledge base/ expertise for software designing, less remuneration for the young, lack of participation by civil industries, and insufficient budget allocation for R&D were other significant hindrances for defence contractors/ PSUs in BD.

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Options For Bangladesh Defence Sector to Foster Indigenous Capacity Development For Self Reliance

Indigenization Prospect of Bangladesh Defence Industries
: In BD, the state-owned defence contractors, PSUs, competent engineering universities and private organizations e.g., BN DYD, CDDL, KSY, DEW Narayanganj, BUET, CUET, KUET, IUT, MIST, BRB cables, BSRM, Energypac, Pragati, etc. can support Bangladesh Navy requirement. However, they need Government patronization. In addition, during interviews, the 'Design House' for ships construction came up as another high-potential sector, where few local firms have a considerable grasp compared with international standards. (8)

Best Option to Achieve Self Reliance by BD Defence Sector: During the survey, 95% of the respondents opined for introducing the Offset Policy in the defence procurement to achieve self reliance. Besides, experts’ opinions and FGD were also in favour of a similar proposal. (9)

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Driving Factors to Introduce Offset Policy in Defence Procurement: Government patronization is crucial for flourishing any industrial initiative. The significant increase of BD defence budget in last decade indicates the technological prowess of the Government to patronize local Shipyards and other PSUs for their capacity development. (10)

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Research Hypothesis Validation

Hypothesis Validation
: The research hypothesis was "Introduction of Offset Policy in defence procurement will foster BD indigenous capacity development to support Bangladesh Navy in terms of military Hardware manufacturing, Software designing, and Repair-Maintenance to attain Self Reliance". Survey result showed that 96% of respondents agreed with the requirement of indigenous capacity development for BD defence industries. Again, 95% of respondents opined for introducing Offset Policy in defence procurement to achieve Self Reliance. Thus, the research hypothesis formulated was considered valid. (11)

Reliability of Research Data: A total of 271 responses were collected during the research. Almost 95% had more than 10-years of service; 94% had ship service; 39% had procurement-related expertise, and 49% had repair-maintenance experience. Thus, the collected research data was from the appropriate population in the relevant domain; hence may be considered as reliable. (12)

Implementation Roadmap for Introducing Offset Policy in Bangladesh Defence Procurement: Ways Forward for Attaining Self Reliance

Proposed Roadmap and Implementation Framework

Examples from Different Countries
: India aimed to attain self reliance for its defence industries through Offset since 1980. Indian Government has recently announced a new strategy, namely ‘Make in India’ initiative. The DAP-2020 has been formulated to ensure timely acquisition of capital purchase as required by Indian AF. Besides, the MOD has notified an updatable list of weapons/ platforms banned for import to promote domestic defence products. The Indian Government also encourages strategic partnership and civilmilitary industrial collaboration, especially for R&D to develop local defence industrial capacity. (13)

Identify Capacity Development Options for Bangladesh Defence Sector Through Offset: During surveys, most respondents opined for joint venture projects between local shipyards/ PSUs and foreign OEMs under the TOT scheme (Offset) as the best option for achieving self-sufficiency. During interviews, most of the experts agreed for the development of equipment testing/ assembling systems through TOT. (14)

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Strategic Partnership Between PSU/ Local Business Firms and Foreign Vendors for Offset Sustenance: Presently, few world-renowned defence industries like THALES, MAN, LEROY SOMER, LEONARDO, CATER-PILLAR, SAFRAN, etc., have strategic partnerships with local business houses/ PSUs in BD, which provide customer support to the BDAF. Indian PSUs following the same culture since 1980, could attain a certain level of self-reliance in manufacturing and repair-maintenance expertise. Therefore, to make the offset sustainable in BD, the PSUs/ local manufacturers/ business houses must maintain a strategic partnership with international defence manufacturers. (15)

Offset Acceptance Criteria and Implementation Time Plan: Taking examples from India, the researcher has developed the acceptance criteria and the implementation plan to attain the defence indigenization through Offset. Here, for a particular military item, a 25% Offset meant spending minimum of 25% of the base contract price within the country. On the other hand, a 100% Offset meant the item would be entirely manufactured within BD and exported to international customers. However, most of the respondents opined for attaining 25% Offset within a 5- year timeline or a 50% Offset within a 10- year timeline. However, experts' opinions suggested that achieving an Offset above 50% would not be a viable strategy for BD considering her present economic/ military market status. Instead, these will be suitable, once the required infrastructure including processing plants, repair-maintenance facilities, skilled HR, and an appropriate international market for exporting military items are made available. Thus, keeping the Forces GOAL-2030, a short term (5-10 years) plan for achieving 25% Offset, and for the Vision-2041, a medium-term (11-20 years) plan for achieving 50% Offset would be the preferable strategy. (16)

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Time Plan to Revisit the Effectiveness of Enforced Offset Policies: The Offset policies need proper monitoring/ evaluation and necessary amendments by a competent governmental body to ensure effectiveness. The researcher has proposed a 5-20 years time span for BD before revisiting/ evaluating the enforced Offset plan's effectiveness and bringing amendments as required. (17)

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Offset Implementation and Evaluation Committee: A suitable set of standard guidelines/ policies needs to be formulated and implemented through an appropriate committee to ensure transparency and accountability across all levels. The researcher has proposed a Committee for Offset Evaluation/ Monitoring Committee under the defence ministry, with the Defence Minister (HPM) being the head of the committee. Other members shall be from concerned ministries, armed forces, Customs, NBR, PSUs, Civil Business houses, etc. (18)

Strategies to Overcome Implementation Challenges

Adopting an Appropriate Market Strategy
: Military graded items are costly due to their several unique features, i.e., material qualities, design, precision, shock-withstand capability, etc. Hence, to avoid business losses, defence industries always look for potential buyers of military items and go for bulk production. Unfortunately, BD has no market strategy for its indigenous defence products yet. Hence, to mitigate such drawbacks, BD government should formulate an appropriate market strategy for BD defence industries in consultation with the proposed Committee and the civil Industrial Owners' Association (CIOA). (19)

Government Policy and Patronization - Branding Bangladesh: BD Government should formulate an appropriate Government-level policy and take the lead role in promoting her local military products by branding and creating a market worldwide through diplomatic efforts. (20) Proposed branding schemes could be Buy-BD, Made-in-BD, etc. Mentionable that some industries in BD have started capacity building in collaboration with world-renowned companies. Recent examples are Pragati motors and Bangla Cars Ltd for Automobile, Nokia for Smart phones, Walton for Home Appliance, etc., where the branding scheme is ‘Made in Bangladesh’. (21)

Manufacturing Military Equipment as a Part of Civil Industrial Production: Creating an appropriate worldwide market for BD defence items is likely to take considerable time. Hence, taking examples from Japan, Sweden, and India, the BD Civil Industries may use the design, raw materials, and processing system from their main production lines to manufacture appropriate military items., e.g., electric cable, circuit breaker, converter, controller, etc. On that note, some earmarks civil industries, in BD, e.g., Energypac, Bangla-CAT, Eastern/ BRB Cables, Walton/ Rangs/ Transcom Group, etc., may be promoted for developing indigenous military non-military production capabilities. (22)

R&D Cells in Services Headquarters: Three service headquarters may establish dedicated R&D cells under the Operation branch to pursue service requirements through adequate funding and required infrastructure development to support further indigenization. (23) These cells will link with the upper tier (Offset implementation and evaluation committee) and disseminate the indigenization requirements to the concerned R&D sectors like CNRD / IFF centre/ BITAC/ BAC, Energypac, etc.

Strengthen Backward Linkages/R&Ds Through TOT and Joint Venture: Studies revealed that Offsets can help BDAF in developing infrastructure for testing/ assembling/ overhauling systems/ supply lines through TOT and Joint ventures. The DAPs of India have always been playing pivotal roles in developing the indigenous capacity of the Defence Research and Development Organization (DRDO) utilizing appropriate Offset policies. Similarly, BD Government should promote Bangladesh Navy initiatives like CNRD and IFF centres with adequate infrastructure and budget. (24)

Tax Reduction/ Stimulus Package: BD Government should allow a 5 to 10-year tax subsidy to industries that develop military items. Like China, BD Government should give a refund guarantee for the export-oriented shipbuilding/military Industry. (25)

Industry-Academia-Technical Experts Cooperation and Skilled Workforce Development: Collaboration between Industry and academia (Engineering universities, i.e., BUET, BITs, MIST, BUTEX, etc.) must be encouraged for innovation and in-house production capacity development through R&D. Besides, retired military technicians and scholars should be recruited/ retained by the PSUs/ civil industries with an attractive financial package to allow their further contribution in relevant fields. Moreover, both Government and private sectors should patronize/ undertake skilled workforce development programs to create competent and experienced technical people for the defence sector.

Conclusion

Many nations have developed their indigenous defence capability by adopting appropriate Offset Policies and now exporting their military items worldwide. Similarly, BD should also adopt appropriate Offset Policies for achieving self-sufficiency in her defence sector. Besides, the collaboration between Industry and academia (engineering universities) must be encouraged for innovation and in-house production capacity development through R&D.

For BD, the development of an indigenous military industry can be considered an essential aspect of Forces GOAL-2041. However, with the present socio-economic status, attaining self-sufficiency in Hardware manufacturing and Software designing may not be viable for BD. Instead, these would be suitable, once the required infrastructure, repair-maintenance facilities, skilled HR, and an appropriate international market for exporting local military items are made available.

There might be many implementation challenges, for which appropriate GovernmentLevel Policy/ strategy will be essential to combat those challenges. Thus, TOT, Joint Venture, and Strategic partnership with international defence Manufacturers could be viable options to develop the defence industries and their backward linkages.

Again, creating a suitable market for BD defence items is likely to take considerable time. Hence, BD civil industries may use the design, raw materials, and processing system from their main production lines to manufacture appropriate military items. On that note, some earmarks civil Industries, in BD, e.g., Energypac, Bangla-CAT, Eastern/BRB Cables, Walton/ Rangs/ Transcom Group, etc., may be promoted for developing indigenous military and non-military production capabilities.

The capacity development for BDAF also demands an Institutionalized approach to bring awareness amongst various stakeholders related to the defence sector. Government-Level patronization, Policy Framework, Regulatory body to ensure strict compliance of Offset agreements, and above all, the branding of BD military products will be crucial enablers for the successful introduction and implementation of Offset Policy in the defence procurement system.

BD Government should form an Offset Implementation and Evaluation Committee headed by the Defence Minister and comprising stakeholders from different Ministries, AF, Defence Procurement Directorates, and Representatives of Civil Industries. The Committee will formulate a roadmap covering phase-wise implementation plan, Offset evaluation criteria, and revisit plan for amendments to make the Offset sustainable for BD defence sector. BD Government should also take the lead role in promoting her local military products by branding and creating a market worldwide through diplomatic efforts. Proposed Branding Schemes could be Buy- BD, Made-in-BD, etc. Nevertheless, positive attitude and coopeartion from every echelon will be required for implementing Offset policy in defence procurement and making this initiative a successful one.

Recommendations

Following recommendations are made based on the findings of the research:

a. BD government may formulate a suitable Government-Level Policy for introducing Offset Policy in the defence procurement to develop its indigenous defence sector. The Policy Framework shall include term-wise Offset acceptance/ evaluation criteria, time plan to revisit the enforced Offset plan, and amendment options. Keeping the Forces GOAL-2030, a short term (5-10 years) plan for achieving 25% Offset, and for Vision-2041, a medium-term (11-20 years) plan for achieving 50% Offset may be considered as preferable strategies.

b. BD Government may form an Offset Implementation and Evaluation Committee under the Defence Ministry, with the Defence Minister (HPM) being the head of the Committee. Other members may comprise all the concerned Ministries, Armed Forces, Customs, NBR, PSUs, Civil Firm houses, etc. The TOR of the Committee may be delineated for ensuring strict compliance with the Policy Frameworks.

c. The Offset Implementation Committee, in consultation with CIOA may formulate an appropriate Market Strategy for the BD defence sector. BD Government may take the lead role in promoting her military products by branding and creating a market worldwide through Diplomatic efforts. Proposed Branding schemes could be Buy- BD, Made-in-BD, etc. Besides, BD Government may also allow a 5 to 10-year tax subsidy and a refund guarantee for the export-oriented Shipbuilding/ Military Industry.

d. BD Government, in consultation with the Offset Implementation and Evaluation Committee, may introduce the Offset to strengthen her backward linkages/ R&D through TOT, and Joint Venture. Developing appropriate infrastructure, testing/ assembling/ overhauling system, and overall, the skilled workforce for R&D could be the priorities within the first 5-10 years plan, which the same Committee will supervise.

e. Three Service Headquarters may establish dedicated R&D cells under the Operations Branch to pursue service requirements through adequate funding and required infrastructure development to support further indigenization.

g. Both the Government and private sectors should patronize/ undertake skilled workforce development programs. Besides, the R&D cell in each Service Headquarters may pursue PSUs/ Civil industries to recruit retired military technicians and Scholars for the R&D projects with attractive financial benefits.

Notes and References

1. K. Balakrishnan, Evaluating the Effectiveness of Offsets as a Mechanism for Promoting Malaysian Defence Industrial and Technological Development. Bedford, The UK: Department of Defence Management and Security Analysis, Cranfield University. Bedford, 2008.

2. Amended Defence Offset Policy Guidelines - 2020. Ministry of Defence. India. New Delhi. Retrieved on 11 June 202.

3. M. S. Ahmed, ‘Prospect of Indegionious Defence Industries in Bangladesh,’NDC Journal, Mirpur, Dhaka, 2015.

4. An Interview with Cdre J A Samdany, (G), NGP, ndc, psc, BN at Naval Headquarters, Dhaka on 25 August 2021.

5. Cuire Maharani Savitry, Contribution of Offset to Defence Industrialization in Indonesia. The UK. Cranfield University, Bedford, 2016.

6. An Interview with Cdre M Mohidul Hasan, (E), NPP, ndc, psc, BN at Naval Headquarters, Dhaka on 18 August 2021.

7. Public Procurement Regulations Government Printing Press. Bangladesh. Dhaka, 2008.

8. Defence Procurement Policy Armed Forces Division. Ministry of Defence. Bangladesh. Dhaka, 2010.

9. The Defence Offset Policy of Pakistan - 2014. Ministry of Defence-Production. Pakistan. Lahore. Retrieved on 12 June 2021.

10. Defence Industries Corporation of Nigeria Act (1964). Ministry of Defence. Nigeria. Abuza, Retrieved on 17 July 2021.

11. J. B. Dunne, Arms Trade Offsets and Development. 8th International Conference on Economics and Security. Bristol: University of the West of England, 2005. Retrieved on 17 July 2021.

12. S. Islam, ‘Exploiting Indigenous Capacity for Developing Naval Weapons and Equipment-A Feasibility Study,’ DSCSC Journal, Mirpur, Dhaka, 2013.

13. G. Rahman, ‘Indigenous Defence Industries: A tool for the Enhancement of the War Fighting Potential of Bangladesh Army,’DSCSC Journal, Mirpur, Dhaka, 2015.

14. A. K. Toriqullah, ‘Over-Reliance on Foreign Military Hardware - a Strategic Vulnerability for BN: Options for Mitigation,’DSCSC Journal, Mirpur, Dhaka, 2020.

15. Treziev Venelin, ‘Main Features of Offset in a Defence Trade. Turkey, ’International E-Journal of Advances in Social Sciences. Istanbul. Retrieved on 04 May 2021.

16. Ben Nichev and Megahy Nikolay, ‘The Defence Offset: Addressing the Risks of Corruption and Rising Transparency,’ The UK. Transparency International-UK. London. Retrieved on 11 May 2021.

17. R. A. Bitzinger, ‘New ways of thinking about the global arms industry: Dealing with 'limited autarky,’Strategic Insights. Retrieved on 29 July 2021.

18. J. B. Dunne, ‘Arms Trade Offsets and Development,’Research Gate, Available at https://www.researchgate.net/publication/23697581. Retrieved on 23 August 2021.

19. An Interview with Cdre Md Ruhul Minhaz, (L), OSP, psc, BN at Naval Headquarters, Dhaka on 17 August 2021.

20. An Interview with Capt M A Latif, (L), psc, BN at Naval Headquarters, Dhaka on 17 August 2021.

21. An Interview with Capt Mahbubur Rashid, (L), psc, BN over the telephone on 18 August 2021.

22. An Interview with Capt A H M Mahfuzer Rahman Hasnat, (L), NPP, psc, BN at BN Dockyard, Chattogram on 22 September 2021.

23. An Interview with Capt M S Al Faruq, (E), NPP, psc, BN at CDDL, Chattogram on 22 September 2021.

24. An Interview with Capt M Shafiul Azam, (N), NPP, psc, BN onboard BNS SHADHINOTA, Chattogram on 22 September 2021.

25. An Interview with Cdr M Anwarul Abedin, (L), NPP, psc, BN over the telephone on 17 July 2021.
 

Madokafc

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To nurture the complex ecosystem of defense industry with all of the chain supplier being locally Made, there is alot of problem and challenge, including

One, they need market, continuous market with abundant continuous repeat order every year. So unless the government can give significant budget for procurement of new hardware or software and maintenance for the Armed Forces, this going be challenge for many countries with small defense budget and posture.

Second, for many countries the question between bread or gun is always exist, political will especially considered domestic opposition is one of the greatest hurdle to raising the military budget to enlarge the market.

Third, technical and technological challenge, as the defense industry is always associated with high capital and high technology industry. There is barrier entry to joint the game, especially for country without political alliance in internasional community. The likes of Turkey and South Korea they have access toward western Europe technology and US at the start of their early phase of building their defense industry, UAE has non NATO Ally status attached to them meanwhile the like of Indonesia and Bangladesh would have more challenge ahead as of their non aligned status so far.
 

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