Rohingya Crisis and its impact on the host economy and

society: A case study in Bangladesh

Fazilatun Nesa
Economics and Banking
International Islamic University Chittagong

Md. Riyaz Uddin

International Relations
South Asian University, New Delhi, India

Abstract:

The Rohingya is an ethnic Muslim minority group who lost their human rights by the

Myanmar government. The Myanmar government have rejected their citizenships illegally. Since

1970, the Rohingya have been forced in various ways to leave their state to Bangladesh due to

religious, cultural, and political discrimination. Bangladesh has faced an ongoing extreme

refugee crisis ever since. In June 2018, about one million Rohingya refugees were living in

different refugee camps and different areas in the southern part of Bangladesh. This refugee area

intolerable burdens on the local population and the government of Bangladesh. Bangladesh has

been taking Rohingya refugees from Myanmar since the 70s. Still, now Bangladesh is sheltering,

feeding, and providing various assistance to well over a million refugees. Bangladesh is an

overpopulated country. The population density about 1252 per square kilometer in Bangladesh,

and the population growth rate is 1.03%. Many scholars think that Bangladesh will have to face

various kinds of problems for Rohingya refugees. These challenges are economic, social, and

environmental. Chittagong is a tourist spot area of Bangladesh. Once many foreigners visited in

Cox's Bazar sea bitch. But in recent time Bangladesh lost these visitors for a security issue in

Chittagong. Bangladesh lost many forests, parks, and hills for the Rohingya in the Chittagong
region. In the last few years, Bangladesh was facing extreme problem to make budge for the

Rohingya issue. Rohingya people are creating a price hike in the local market. Besides these,

there are many problems with the Rohingya crisis in Bangladesh's economy, society, and

environment. This paper analyzes these three themes.

Keywords: Rohingya, Economy, Refugee, Bangladesh, Impact

Background:
Rohingya is now a global issue. But as a host country, Bangladesh is suffering in different ways.

Rohingya people are mixing now with Bangladeshi citizens and creating various crimes in

different places of Bangladesh. They are destroying the environment of Bangladesh, directly and

indirectly, they are influencing on Bangladesh economy. It's motivated us to research about this

topic.

Object:
Our research motto is, what is the harmful effect of the Rohingya crisis in Bangladesh's

economy? What is the evil influence of Rohingya people in Bangladeshi citizens? How are the

Rohingya people the threat of Bangladesh security? How the Rohingya people are destroying of

Bangladesh environment?

Methodology:
Secondary sourced from the journal articles, books, and newspapers are the heart of this research
article.
Introduction:

The Rohingya crisis is a key issue in the world today. Due to the injustice of the Rohingya
massacre, they took shelter as refuge in Bangladesh. This massacre is a violation of all kinds of
international law and human rights. This crisis has brought on Bangladesh various unfortunate
economic and social impacts. International aid is not enough to control this issue. The people of
Roingya are destroying our environment and our safety.

Historical Background of Rohingya:

Rohingya is a member of a Muslim ethnic individuals inhabiting western Asian state Burma
(Myanmar). Myanmar is located close to the Bay of Bengal and Arakan was the most center of
business in 7th century. And Arakan was the key to cultural exchange between Myanmar and
therefore the outside world. Arakan region was standard for business from the seventh century.
Many Arab, Moghul and Moor Muslim traders reached in this area at 7th century for business
and they settled here. Those people are known now as Rohingya. “The origins of the Rohingya in
Arakan, Myanmar are well documented in the literature and are said to date from the 7th century
AD. Their ancestry can be traced to Arab, Moor, Pathan, Moghul, Central Asian, and
IndoMongoloid people who settled in the region over several centuries.” (Walton) When the
Arab traders reached in this area they started to preach their religion in Arakan region and
converted many people to Islam. Thus they made Arakan as a strong zone of Muslim
community. The Arab traders were also missionaries and they began converting the local
Buddhist population to Islam by about 788 CE. If we deeply look at Rohingya society we can
easily find out their origin by their name, culture & tradition. “today, Rohingya display
considerable cultural diversity, but still carry Arab names, Muslim faith and traditional customs.
As such, they are regarded by some ethnologists, anthropologists, and linguists as a distinct
indigenous race of Burma; however, others question the legitimacy of their identity.” (Siddiquee)
History of disputes between the state of Myanmar and Rohingya:

Myanmar was colonized by the British in 1886 when a Burman Buddhist majority and dierent
ethnic minorities characterized the country. The royal Buddhist patronage which the Buddhists
had received for thousands of years ended during the British colonial rule. From 1948 to 1961,
the decentralization of power and the control of ethnic minorities over the resources of their
states were not carried out by all Myanmar's civil and military governments. In 1962, the military
government implemented a unitary state and imposed the rule of Burma's Buddhist majority on
all ethnic minority groups. (EX RIEFFEL) Rakhines are therefore among Myanmar's most
oppressed ethnic groups. (ARON) Rakhines want more control over the resources of Rakhine,
while ETBNs see Rohingyas as a burden on Rakhines. The concentration of Rohingya Muslims
in Rakhine made many Rakhines fear that Rakhine would disintegrate into a non-Buddhist state
from a Buddhist state. (ARON) Historically, Rohingyas in northern Rakhine have been looking
for an independent state for decades. Rakhine was the front line of war during the Second World
War when the Japanese imperial forces confronted the British forces. Rohingyas supported the
British forces, while Rakhines supported the Japanese forces. Armed conflicts between Rakhines
and Rohingyas killed thousands of Rakhines and Rohingyas between 1942 and 1943.

(NTERNATIONAL CRISIS GROUP ASIA REPORT) The Japanese were defeated. After the
British re-occupation of Rakhine, the inter-ethnic conflict continued. (Aye Chan) Rohingyas
later moved north of Rakhine, and Rakhines moved south of Rakhine. (Yegar) Rohingyas
sought an independent state for Rohingyas in northern Rakhine after Myanmar's independence in
1948. Myanmar's citizenship law of 1948 was discriminatory against Rohingyas who fled
Myanmar during the Second World War because it did not allow them to return to Myanmar.
Those who came back were regarded as illegal immigrants. (Yegar ) In 1954, Prime Minister U
Nu granted citizenship to Rohingya in Myanmar. (Human Rights Watch ) In 1964, the military
government introduced the National Security Act. All Rohingya organizations have been banned.
(Yegar ) The Buddhist nationalists and monks demanded at that time that the government force
Rohingyas out of Myanmar. (Yegar ) The 1982 Citizenship Act allowed Rohingyas to apply for
citizenship if they were able to speak one of the official languages of Myanmar. The language of
Rohingya was not regarded as an official language. Rohingyas claimed that during the Arakan
and British rule their predecessors had migrated to Myanmar. (Jain) All of the successive
governments denied that the Rohingyas were one of the 135 ethnic groups in the country that had
to claim citizenship. The Tension between ETBNs and Rohingyas increased.The Mass killing of
Rohingyas by the military and ETBNs occurred in 1982. (Jain) April 1994, which caused
civilian injuries. Violence against the Rohingyas. Approximately 70,000 Rohingyas fled to
Bangladesh as a result of alleged torture by Myanmar authorities and ETBNs. (Yegar) The mass
killing of Rohingyas occurred in 2012 after rumors that a Rakhine Buddhist woman had been
raped and murdered by Rohingya men. The rumor caused the Rakhine massacre of Rohingyas
and the military and security forces. (Zarni) The Buddhist nationalists reportedly planned the
attack for months. (Human Rights Watch Report ) A military crackdown followed Rohingya's
mass murder. The government and the military set the riot on fire and ordered the Rakhines to
remove Rohingyas from their homes. (Moshahida ) In 2013, serious violence escalated against
Rohingyas. Buddhist nationalists campaigned for laws to protect the Buddhist race and religion.
Arakan Rohingya Salvation Army (ARSA) was formed in 2016. ARSA is not well equipped to
fight against Myanmar's military and security forces. ARSA is trying to mobilize the support of
the Rohingya villagers. ARSA does not appear to have more than 500 active fighters. (.(Lintner)
Thousands of small landholders from Rakhine were killed and displaced by the 2017 riots. More
than 10,000 Rakhines were also affected by the violence. (Freeman)

Bangladesh and Rohingya refugees:

The total area of Cox's Bazar district is approximately 2491,32 km2 and the total population is
about 22, 890,990 km. Local people generally welcomed the Rohingya refugees, but there has
recently been an anti-refugee sentiment. There are various causes.“Refugee camps are mostly
situated in remote areas where the economic circumstance of local inhabitants is not stable.
Consequently, there is an anti-Rohingya sentiment generated among local people due to the
competition that has been created in local livelihood sector by the burden of refugees.” (Milton)
Bangladesh is the first responder to Rohingya refugees with regards offers of shelter and
acceptance to enter their territory. How many Rohingya refugees live in Bangladesh? According
to Milton, “Before the 25th August 2017 outbreak of violence in Myanmar, Bangladesh
Government estimated that about 200,000-500,000 undocumented Rohingya refugees were
living in nearby towns or villages, while a total of 33,131 documented refugees were staying in
two government run refugee camps.” (Milton)

Registered and unregistered Rohingya in Bangladesh as at 2015

Variables Frequency

Refugee camps 2

Registered Rohingya refugee Number

Nayapara camp, Teknaf 19,311

Kutupalong camp, Ukhiya 13,820

Undocumented Rohingya refugee Number

Leda camp, Teknaf 15,000-20,000

Salampur, teknaf 8000-10,000

Near Kutupalong camp (Tall), Ukhiya 40,000-50,000

Disseminated in Cox’s Bazar and other 300,000

districts

Source: Office of Refugee Relief and Repatriation Commissioner, 2015

The numbers of Rohingya in Bangladesh as at April 2018

Camp name Number of Rohingya

Kutupalong refugee camp 13,933

Kutupalong expansion 604,104

Hakimpara 31,280

Jamtoli 46,196

Bagghona 22,076

Chakmarkul 12,597

Unchiprang 22,100

Leda MS 9,800

Nayapara RC 19,353

Thangkhali 43,500

Source: Inter Sector Coordination Group, BBC, 2018

Impacts on Bangladesh:

There are three kinds of impacts for the Rohingya crisis on Bangladesh. These are factors on the
economy, society, and the environment. All social and environmental impacts are directly and
indirectly linked with the economy. Rohingya issue first brings a high effect on Fiscal.

A-1 (Fiscal Implication):

The Ministry of Disaster Management and Relief of the GoB, several national and international
institutions, have been providing financial, humanitarian support to the Rohingyas refugees.
“Humanitarian response plan estimated a total of USD 434 million was required for the six
months, starting from September 2017.” (Khatun) According to the report of CDP (Centre for
Policy Dialogue) as of 25 March 2018, “around USD 322 million has been received which is
around 74.4 per cent of the total appealed fund. To cover future demand, a Joint Response Plan
has been made for March-December 2018 with an initiative of UN agencies to continue the
existing support along with various kinds of risk of future problem.” (CDP) According to CDP
report 2018, “Total USD 950 million is needed as support under the JRP to meet the immediate
needs of more than 880,000 Rohingya refugees and over 330,000 Bangladesh is in communities
affected by the crisis.” According to the report of Financial Tracking System, 2018, “In the
humanitarian response plan (September 2017- February, 2018), GoB has already contributed
USD 4.37 million which is equivalent to 1 per cent of total appealed fund (USD 434 million).”
(FTS)

A project was accepted in the National Economic Council of Bangladesh to build a temporary
camp for Rohingya refugees in Bhashan Char in Noakhali District. This project cost is a total of
280 million. Almost construction work already has been finished. There is a little hope for
remote support for this project in Bhashan Char. Another major project of the Bangladesh
government is biometric registration for the Rohingya refugees with the help of Bangladesh
Army. According to the United Nations Office for the Coordination of Humanitarian Affairs
(OCHA) and United Nations High Commissioner for Refugees (UNHCR), “total fund
requirement for the September 2017 – February 2018 would be USD 517.8 million. According
the report of CDP, USD 882 million will be required for the period September 2017 - June
2018.”

Based on the full commitment of Myanmar government of Rohingya repatriation, Center

Development Policy Of Bangladesh has estimated the cost of hosting the Rohingyas based on
three scenarios.

Description of hypothetical scenarios and their underlying assumptions:

Scenario 1: Assuming 300 Rohingyas are repatriated Common Assumptions:

every day, without incorporating population growth and
inflation. Total Rohingyas: 860,000

• Previous Rohingyas: 205,000

• New Rohingyas: 655,000

Scenario 2: First scenario repeated by incorporating

$Working days: 25 days per month
population growth and inflation

$Inflation rate: 6% every year

Scenario 3: Assuming 200 Rohingyas are repatriated $Population growth rate: 1.5%

every day by incorporating population growth and

inflation rate $Estimates indicate only direct costs
to be incurred for the Rohingyas
 $Implicit costs for the environmental
degradation and morbidity and
mortality can be large

$Repatriation and relocation costs

not included

Source: CDP report, 2018

Summary Findings on Repatriation Time and Cost of Hosting Rohingyas

Previous Previous
Rohingya Rohingya
entrants entrants

Scenarios Assumptions Required Cost of Remaining Cost of

years for hosting after hosting in the
repatriation Rohingyas repatriation following
(USD period (USD
mln) mln)

Scenarios -300 Rohingyas 7 4,433 205,000 384

1 per day
-no inflation or
population
growth

Scenarios -300 Rohingyas 8 5,898 231,000 466

2 per day
-population
growth and
inflation rates
included

Scenarios -200 Rohingyas 12 10,456 245,000 625

3 per day
-population
growth and
inflation rates
included

Source: CDP report, 2018

A-2(Impact on tourism):

Cox’s Bazar is a tourist zone of Bangladesh. The world longest sea beach is located here.
Rohingya refugees, directly and indirectly, are impacting on tourism of Bangladesh. According
to Dhaka Tribune, “Meanwhile, people in the tourism sector in Cox’s Bazar district, which
houses many major tourist spots, are concerned about the upcoming season starting from
November as the refugee crisis is yet to de-escalate.” Why are Rohingya the threat of tourism?
Because Rohingya people are mixing every day with Bangladeshi people and they are doing
various unethical jobs in the whole country, especially in the Chittagong area. That’s why people
are at risk to visit in Bangladesh. A local people Mofijul Islam said to the Dhaka Tribune,
“Rohingya refugees spreading throughout the district will surely threaten tourism as tourists will
be reluctant to visit over security issues and chaos.”

Foreign exchange earnings from tourism Foreign Exchange Reserve of Bangladesh (This
calculation in BDT million)

Year Foreign Exchange Foreign Exchange Earnings from Tourism and other (a)/(b)
Reserve (a) Travels (b)

2008 421318.2 5780 1.4%

2009 515940.4 3920 0.8%

2010 746469.9 5472 0.7%

2011 809087.5 6094 0.8%

2012 847971.7 7674 0.9%

2013 1190899.2 8579 0.7%

Source: Bangladesh Bank

If the foreign tourists don’t travel Bangladesh for the security issue, Bangladesh will lose this
valuable reserve from international travelers. It will impact on Bangladesh economy severely.

A-3(Impact on Environment)

The Rohingya refugee camps are located in the Chittagong mountains area. A large number of
forests were destroyed by the Rohingya camps. According to CDP report, “Around 6,000 acres
of land was destroyed by the Rohingya camps.” It directly affects the economy and the
environment in Bangladesh. According to CDP, “this is equivalent to 741.3 crores or 86.7
million. In a month there is need about 6880 tons fuelwood for the Rohingya. If it is collected in
this rate, 90% forest will finish within 10 km buffer zone. These fuelwood collection will affect
the near Teknaf Wildlife Sanctuary, Inani Sea Beach and Himchari National Park.”

Future biomass and fuelwood demand in the influx area of Rohingya

Parameter Buffer of 5 km Buffer of 10 km

Total biomass available from natural forest 28,100 74,300

(tons)

Total biomass available from plantations 124,100 211,600

Biomass required for 650,000 Rohingya 6,825 6,825

(tons/month)

Time required to consume all available 4 months 11 months

fuelwood from natural forest
Time required to consume all available 18 months 31 months
fuelwood from plantations

Source: Rapid Environmental Impact Assessment done by UNDP, and MoEF, 2017

Environmental Risk for Physical Impacts at the Rohingya Camp Areas of Bangladesh

Potential Risk Impact Reversible

Air Quality

Impact of cooking on the indoor air quality Severe Yes

Dust generation Moderate Yes

Air pollution from transport Minor Yes

Acoustic Environment

Noise from road transport Minor Yes

Ground Water

Groundwater depletion Critical Not in short time

Groundwater contamination Critical Not in short time

Surface Water

Change in water quality Moderate Yes

Change in hydrology Moderate Ye

Soils and Terrain

Soil removal and erosion Severe No

Soil diversity Moderate Not in short time

Land capability Severe Not in short time

Change in the terrain that may cause landslides Severe No

Sewer sludge Management Critical Yes

Solid Waste Management Critical Yes

Source: Rapid Environmental Impact Assessment done by NDP, and MoEF, 2017

A-4(Others impact on Bangladesh economy and Society)

The Rohingya crisis in Bangladesh creates different forms of economic and social problems.
According to Conversation, “The impacts include local food inflation, shortage of food grains,
hike in prices of essentials and transportation, pressure on natural resources and tourism, along
with various social issues.” Price hiking is now a severe issue in local community. Day by day
price hiking is increasing and it is creating an imbalance situation in local market. According to
Conversation report 2017, “As of Monday, per kilogram onion was sold at Tk60 and potato at
Tk40 at Ukhiya. Both items were sold at Tk45 and Tk25, respectively, in Dhaka.” Rohingya
crisis brought a pressure on local employment and cost of living. This issue also is creating
health problem of Rohingya and local community. Rohingya people are totally uneducated and
don’t know how to lead a natural life. That’s why they are involved in drugs and prostitution in
the local area and all over the country. The drug is now available for the Rohingya refugees in
Bangladesh. Because they have already established a drug distribution network from Bangladesh
to Myanmar. Bangladeshi police arrested many Rohingya in different areas with drugs.
According to Imran, “Rohingyas also attempt to acquire illegally a Bangladeshi passport and
birth certificate to enable them to gain work in the Middle East. Their involvement in many
criminal activities has been documented in a number of studies and widely covered by the news
media, which has created a problem for Bangladesh’s image internationally.”

Conclusion:

Rohingya crisis is not only the problem of Bangladesh, but also it is a problem for the whole
world. It is true that it is affecting the Bangladesh economy directly but is also affecting the
global economy indirectly. Rohingya mass killing is totally against human rights and
international law. UN and other social organization are doing humanitarian support to
Bangladesh to face this Rohingya issue but are not enough. Bangladesh is a developing country
and doing fights against hunger. That’s why this issue is creating a significant problem in the
Bangladesh economy and society. If this issue doesn’t solve correctly, Bangladesh will face a
tremendous economic problem in the future.