Changing Paradigm of Bilateral Ties and Economic Cooperation Between Nepal and Bangladesh

In last decade, there has been few changes in international relation emphasizing more on basic cooperation between the states. Traditionally, states had regional or global connectivity to establish their own bilateral cooperation. In today’s everchanging world it is of dire need to bring out the creative side of state’s intention to introduce their product and showcase their global projection, especially for countries like Nepal and Bangladesh to work on behalf of each other. The cooperation between Nepal and Bangladesh is crucial as chances are that they won’t survive as a strong nation in South Asia. Relation only through regional mechanisms might be frazile and may even disintegrate with change with leadership tone. A more bilateral and bonding relation with social connectivity might serve the purpose. Relations through people or citizen centric relation is quint essential to promote economic cooperation between Nepal and Bangladesh. This study examines the changing character of Nepal Bangladesh bilateral relations with particular attention to the growing importance of economics, connectivity and energy cooperation. The study draws on realism and liberal institutionalism to examine the interaction between geopolitics constraints and emerging forms of economic and institutional cooperation. In order to understand their economic and other positions, policies and agreements were considered as secondary sources and practice in the form of personal interview were done as primary source. A qualitative research design was adopted combining documents analysis with unstructured but guided interviews with stakeholders, academics, policymakers and experts from Nepal and Bangladesh. The findings indicate that Nepal Bangladesh relations are gradually moving from conventional diplomatic cooperation towards more functional cooperation centered on trade, connectivity and energy. Even with geographical constraints, limited bilateral trade and dependence on transit through India continue to restrict its potential. The study contributes to the literature by conceptualizing this shift as a transition from diplomatic cordiality towards economic interdependence and emerging sub regional cooperation.