	Recent Developments

Emergency rule by a military-backed caretaker government, currently headed by Fakhruddin Ahmed, is likely to continue through 2007 and into 2008. Zia, Hasina, Ershad and the Future Political Landscape

Under its anti-corruption drive the caretaker government has moved decisively against the established political parties. Bangladesh has for many years been one of the world's most corrupt nations. Political Context

The intense and at times violent political rivalry between the country's two main political parties, the Bangladesh National Party (BNP) and the Awami League (AL), and the presence of radical Islamist parties and groups, have defined Bangladesh's poor political environment in recent years. In discussing the shift to the new military-backed caretaker government, he stated that U.S. was initially "troubled that this dramatic shift in government might signal a hidden agenda to indefinitely delay a return to democracy and conceal a secret military coup." He added that the caretaker government was responsive to calls for outlining a roadmap to elections and the restoration of democracy. The United States has long-standing supportive relations with Bangladesh and has viewed Bangladesh as a moderate voice in the Islamic world. It has received more than $30 billion from foreign donors since its independence in 1971. Following two decades of authoritarian rule, Bangladesh held its first democratic elections in 1991. Since then, Dhaka's politics have been characterized by a bitter struggle between the Bangladesh National Party (BNP) and the Awami League (AL), and particularly between the two leaders of the respective parties, Prime Minister Khaleda Zia (1991-1996, 2001-present) and former Prime Minister Sheikh Hasina Wajed (1996-2001). There has been much political violence in Bangladesh in recent years. In January 2005 the State Department issued a statement that "strongly condemned" the bomb attack that killed four, including former Awami League Finance Minister A.M.S. Kibria, and injured 70 at a political rally of the Awami League on January 27, 2005. On August 21, 2004, grenades were hurled in an apparent political assassination attempt on opposition leader Sheikh Hasina at a political rally in Dhaka and killed 22. These two attacks, and widespread bombings on August 17, 2005 marked a rising tide of political violence in Bangladesh. Bangladeshi opposition, analysts, and media observers have alleged that the presence in the former ruling Bangladesh National Party (BNP) Coalition government of two Islamist parties, the Islamiya Okiyya Jote (IOJ) and the Jamaat-e-Islami, had expanded Islamist influence in Bangladesh and created space within which terrorist and extremist groups could operate. The BJP is the leading opposition party in India. Economics, Trade, and Development

Bangladesh is one of the poorest and most densely populated countries in the world. Though Bangladesh is one of the world's poorest countries, its economy has made some progress in recent years. The government has also been accused of failing to prosecute attacks against journalists by supporters of the BNP.
Bangladesh (the former East Pakistan) gained its independence in 1971, following India's intervention in a rebellion against West Pakistan (currently called Pakistan). Democratic elections in 1991 ended two decades of authoritarian rule in Dhaka. The Bangladesh National Party (BNP), which led the ruling coalition of the previous government, and the leading opposition party, the Awami League (AL), traditionally have dominated Bangladeshi politics. The BNP is led by former Prime Minister Khaleda Zia while the AL is led by Sheikh Hasina. Bangladesh has been a largely moderate and democratic majority Muslim country. This status has been under threat from a combination of political violence, weak governance, poverty, corruption, and Islamist militancy. When in opposition, both parties have sought to regain control of the government through demonstrations, labor strikes, and transport blockades.
Bangladesh is now ruled by a military-backed caretaker government led by Fakhruddin Ahmed that appears unlikely to relinquish power in the near term. It is pursuing an anti-corruption drive that could overturn the normal political elites. It is also seeking to put in place voter reforms, including issuing identity cards, and has moved against militant Islamists. While there has been concern that the new military-backed caretaker government would be reluctant to relinquish power, it has presented a roadmap for new elections and a return to democracy in Bangladesh.
Bangladesh is one of the poorest and most corrupt countries of the world. The largely agricultural economy suffers frequent and serious setbacks from cyclones and floods. While economic progress has been made, it has been impaired by rivalry between the two largest political parties. Bangladesh is thought to have large reserves of natural gas.
Political violence has become part of the political landscape in Bangladesh. A.M.S. Kibria, a finance minister in a previous Awami League government, and four others were killed in a bomb attack that also injured 70 at a political rally of the Awami League on January 27, 2005. On August 21, 2004, an apparent political assassination attempt on opposition leader Sheikh Hasina at a political rally in Dhaka killed 22. These two attacks, and widespread bombings on August 17, 2005, that claimed 26 lives and injured dozens others, are the most notable incidents among many in recent years.
U.S. policy toward Bangladesh emphasizes support for political stability and democracy; development; and human rights. The United States has long-standing supportive relations with Bangladesh and has viewed Bangladesh as a moderate voice in the Islamic world. Some analysts are concerned that Islamist parties have gained influence through the political process and that this has created space for militant activities inside the country. Some allege that the presence in the former ruling Bangladesh National Party (BNP) coalition government of two Islamist parties, the Islamiya Okiyya Jote (IOJ) and the Jamaat-e-Islami, contributed to the expansion of Islamist influence in Bangladesh.