Need Policies For Domestic Defense Production

Two trainers finally take-off, Leaving behind issue still remains stand-off.

Last week social media and Bangladesh Air Force(BAF) in its annual graduation program confirmed successful development of two basic trainers,named Bangabandhu Basic Trainer (BBT) 1 and 2. BAF in its own facility, known as Bangabandhu Aeronautical Centre(BAC), developed the two models with funding assistance from the government. It is not known how much money was spent and what are the specifications. But pictures surfaced on the social media hint that one is similar to kitplane preferred by amateur pilots in the West. The other one is just a trainer similar to occidental trainer to train air force cadet pilots. Things would be much better if it were done by private companies.

In fact, in Bangladesh, we do not have proper policies and regulations that allow engagement of private sector in defense production. Private sector involvement could significantly reduce cost and ensure efficient use of resources, which is vital for the country facing budget deficit. In addition, accountability and transparency can be established in defense spending. Right now no law obliges defense community to offer explanation to the Parliament and the press about their conduct and spending behaviour. Vital organ of the state stays outside of accountability system, undermining our institutions responsible for ensuring check and balance and strengthening democracy.

To make sure private participation in defense production, proper policy should be introduced. India has Defence Acquisition Procedure(DAP). DAP 2020 set up rules regarding engagement of private companies in defense production and reservation for them in some sectors, liberalization of licensing and test/trial policies, focus on indigenous content in defense article production. It also incorporates a strategic partnership model that allows Indian companies to manufacture hi-tech equipments at home and to partner with global companies to manufacture defense equipments under technology transfer agreement.

In USA, Defense Production Act(DPA) 1950 allows US president to divert resources and engage private companies to produce defense article to comply national security emergency. The DPA also allows president to provide loans, subsidies to private sector so that private companies can expand their production capacity to address the security needs.

In Bangladesh we need similar laws and regulations. It will stop leakage in public spending. Another good thing about engaging private sector is that private companies are subject to audit and stakeholders will keep a close tab on the spending and appropriate measures taken. So issues like misuse of money or cost overrun will be reduced and accountability is ensured.

Similarly, parliamentary committee on defense can convene people from respective institution to attend hearing and offer explanation on issues like cost overrun, corruption or other issues that we are not allowed to discuss now on public domain citing reason of “national security “.Good thing is these things will be documented and this step may stop recurrence of similar issues in the future. Opaque culture in defense policy,procurement and production will be altered completely.

Crucial thing is allowing private sector will enhance research facility in tertiary education institution. At the moment, setting up dedicated labs in various departments of science faculty in universities and engineering universities is untenable due to huge cost and limited prospect of end usage of research outcome. Private sector will divert part of their investment to set up such labs and research facilities that will come up with outcomes ultimately having industrial application too. So government or public spending at the end of the day spurring growth in the domestic private sector, ushering in new possibilities and creating other eco systems elsewhere. Unfortunately, here public money spent seldom lands in domestic private sector. It is particularly true for the defense sector.

I find this BBT-1 and BBT-2 trainer development initiative without proper policies and regulations a kind of cart-before-the-horse thing. Sustainable defense production requires greater transparency ,accountability and unfolding the true potentials of both public and private facilities. Without having that, money spent is just meant to contribute in ongoing leakages in defense spending. In our country, we have confined the meaning of accountability to hold the politicians and political parties accountable. That is not the case across the world! We have to get ourselves out of this narrow definition of accountability and make sure that its perimeter gets wide enough to bring all the institutions inside it.