The Chaebol Returns To The Presidency 1967 [EN]: Chapter 130

130. National Transformation Project

Dhaka Airport, the capital of Bangladesh.

Secretary-General Song, carrying a briefcase, disembarked from the plane with his interpreter and aide.

The humid air was thick and heavy.

His legs felt unsteady as he stepped onto the tarmac.

There was no direct flight, so he had to transit through Hong Kong. However, a typhoon in Bangladesh had canceled his flight, leaving him stranded at the airport for three days.

The Secretary-General began wiping the sweat from his brow with a handkerchief.

“It’s the first time I’ve ever experienced airsickness.”

“ADB [Asian Development Bank] loan recipient countries are all impoverished, so it’s a demanding job, Secretary-General.”

“Forget about relaxing on a yacht with wine. That’s precisely why our work is so rewarding.”

A Bangladeshi official with a dark complexion and sharp attire approached.

“Thank you for your dedication in traveling such a long distance, Secretary-General. I am the former Prime Minister’s economic secretary, and this is the protocol secretary.”

“Pleased to meet you.”

After exchanging formal greetings and heading to the airport lounge, a group of young men rushed in.

They were there to carry luggage and receive tips.

He had to navigate through begging children several times before reaching the car.

It was typical of Bangladesh.

Bangladesh is a newly independent nation, having gained independence from Pakistan last year (Pakistan separated and became independent from India).

Before independence, Pakistan banned the use of the Bengali language, sparking public outrage. Furthermore, Pakistan unfairly distributed aid received from the international community after a devastating typhoon, further infuriating the Bangladeshi people.

They declared independence and fought a war, resulting in the massacre of hundreds of thousands. Fortunately, India, seeking to contain Pakistan’s influence, intervened and helped them achieve independence.

Bangladesh has a slightly larger land area than South Korea, but its population is more than three times greater, making it one of the most densely populated countries in the world.

The primary reason for this high population density is religion.

The majority of the population is Muslim, and their faith generally discourages birth control or abortion, leading to larger families.

Large rivers flowing from India crisscross the country, making the land fertile and creating extensive wetlands.

Agriculture is the dominant industry, and agricultural products are the main exports.

Industrial complexes were primarily located in India and Pakistan before independence, leading to a severe shortage of agricultural machinery and reducing Bangladesh to a largely primitive agricultural economy.

Consequently, its per capita national income ranked over 130th globally, making it one of the poorest countries in Asia.

The tropical cyclone Bhola, which caused the greatest loss of life in recorded history in 1970, struck Bangladesh, resulting in 500,000 deaths and exacerbating the country’s devastation.

Honk honk~

The road was narrow and congested with public transportation, even in the city center.

As the car repeatedly stopped and started, the economic secretary provided a briefing.

“To utilize the surplus labor force, we need to build factories, but as a largely self-sufficient agricultural country, we lack the capital to do so.”

“That’s correct.”

“Moreover, we are surrounded by powerful countries like India and Pakistan. We lack a strong military, making us dependent on India, essentially turning us into a vassal state.”

India was a powerful nation with an aircraft carrier, aspiring to become a permanent member of the UN Security Council. Pakistan was also developing a space exploration program, outperforming Korea until recently.

A country with limited natural resources, surrounded by powerful neighbors, and burdened by a high population density. In many ways, it mirrored Korea’s situation in the late 1950s.

“Secretary-General, please provide ADB loans to build thermal power plants and factories.”

“Of course. The ADB’s primary mission is to support the development of developing countries. However, we are now shifting away from loans that simply provide funds and collect principal and interest.”

“Then, is there an alternative approach?”

“You understand that excessive reliance on concessional loans can trap debtor countries in poverty, correct?”

“That’s true. It’s rare for a country to prosper by simply taking out loans. We are also developing an industrial plan based on the Korean model.”

“Oh, that’s excellent!”

“…….”

“This loan incorporates a fund component based on the Korean model. It’s called an Angel Fund.”

“Angel Fund?”

The Secretary-General summarized and explained the President’s concept.

“We will lend you an additional amount equivalent to half of the original loan for the Angel Fund. By pooling the loan funds and a portion of labor wages at a 50:50 ratio, you can create an Angel Fund to invest in promising global industries and stock markets. Bangladesh will retain the profits.”

He offered an enticing incentive by adding the fund loan to the existing loan request.

The young economic secretary, who held a doctorate in business administration and economics from a top Indian university, nodded repeatedly, his eyes gleaming with interest.

“Ah, that’s a truly innovative concept. It’s remarkable to think that developing countries could invest in sovereign wealth funds like the Arab oil-producing nations.”

“Korea’s sovereign wealth fund and pension fund have already demonstrated its effectiveness. It’s a crucial economic tool to offset wage stagnation and prevent the poor from becoming even poorer.”

“Korea is smaller and less populous than us, yet it’s far more prosperous, making it a truly remarkable country.”

“You flatter me. I’m here representing the ADB, not Korea.”

“I sincerely want to learn from Korea. You mentioned the New Village Movement [Saemaul Undong] as a prerequisite, but I’m unfamiliar with it.”

“It’s a spirit, a lifestyle reform movement…”

The Secretary-General explained in detail.

Again, the economic secretary nodded and took notes diligently.

“Ah, the foundation of Korea’s development was the people’s unified lifestyle movement.”

“That’s right. There must be a shared goal of lifestyle reform that transcends school affiliations, regional loyalties, and family ties. Simply providing clothes and food without reforming the people is like feeding livestock.”

“You’ve highlighted a painful truth. Without pre-modern consciousness reform, we’ll simply become debtors with more dollar debt. By channeling funds related to labor wages through New Village Movement organizers, we can naturally instill reform goals.”

“There’s a New Village Movement headquarters in Korea that trains overseas representatives. China has also adopted the New Village Movement, and provinces that have implemented it have seen exemplary modernization, earning widespread praise.”

“Ah, China also imported it.”

“If you visit Korea later, I’ll arrange a tour of China for you.”

“I’m very much looking forward to it. We definitely need modernization education.”

The Secretary-General wiped his sweat and said.

“I need your understanding on this point: the fund loan is provided to the Bangladeshi government, but the government cannot directly access the funds. The fund management team directly manages the industry and invests in the fund. This is a significant departure from previous loans.”

“That’s even better.”

“…….”

He anticipated resistance to this condition, but the reaction was unexpected.

“If the government receives cash directly, it tends to disappear from the construction site, ending up in the pockets of a few powerful individuals or being used for patronage. If the ADB manages it, the benefits will fully reach the people without any waste.”

Squeak~

The car arrived in front of the Prime Minister’s office.

It was only a few kilometers, but it took an hour, making walking a faster option.

*

Prime Minister’s office.

The economic secretary, already familiar with the details, provided additional context to the Prime Minister.

“Your Excellency, Prime Minister, Korea has a smaller land area than us, is mountainous, and lacks natural resources. However, it has a high population density and remains a divided country with ongoing military tensions. Its natural conditions are less favorable than ours, yet it has successfully industrialized before the discovery of oil. Korea’s development experience will be invaluable to us.”

“Hmm, I have high expectations.”

The Secretary-General explained the Angel Fund, the New Village Movement, and other aspects to the Prime Minister.

After listening attentively, the Prime Minister said.

“If we can’t directly use the borrowed money, can we truly call it a loan?”

As expected, there was resistance.

The Secretary-General clarified.

“Existing cash loans are one-time solutions. This is intended to supplement them. Isn’t the ultimate goal of the loan national revival? Therefore, we will comprehensively support not only construction but also the planning and operation of the project with these funds. We will transfer financial, technical, and labor economic expertise.”

“Hmm, that’s what you say, but I still don’t fully understand the Angel Fund. How can our government invest in developed countries or domestic stock markets?”

“The root cause of the cycle of poverty is the dependence of finance on foreign capital. No matter how hard the people work, foreign capital reaps the rewards.”

“That’s true.”

“The idea is to make that capital Bangladeshi capital from the outset.”

The economic secretary, trusted by the Prime Minister, stepped forward to explain.

“The Angel Fund invests directly in domestic industrial infrastructure, stock markets, and global stock markets. The fund is an additional loan, but it’s managed not by foreign capital but by the Angel Fund itself.”

The Prime Minister nodded.

But the question remained.

“The ADB is managing the fund, but what happens if the performance is negative?”

The Secretary-General replied.

“There’s a global fund representing Korea called Tiger Fund. We plan to entrust the Angel Fund to them for management. The annual performance of Tiger Fund is 15%.”

The economic secretary added.

“Your Excellency, Prime Minister, Tiger Fund is a world-renowned asset management company that dominates the United States. It’s a safe and high-yield investment. You can trust it, Your Excellency!”

The Secretary-General added.

“The ADB will guarantee a minimum of 10% profit.”

“Hmm, guarantee…”

The Prime Minister nodded.

Next, they discussed the New Village Movement.

The New Village Movement included Taekwondo training.

Given that Islam is the state religion, there was potential for conflict with virtues like diligence, self-help, and cooperation. Therefore, martial arts would serve as a means to train both the mind and body.

The economic secretary explained.

“Compared to the Indian system, which primarily focuses on static training, this is an active physical training. Through this, we will contribute to ourselves, our families, and society. In addition, the parliament, divided between Islamic and leftist factions, is fiercely opposed, but we expect this to neutralize the extremes with practical codes of conduct rather than abstract theory, Your Excellency, Prime Minister.”

The Prime Minister looked satisfied.

“That’s right. We lack a middle ground. We argue constantly over trivial matters.”

The economic secretary said.

“Angel Fund, New Village Movement, and Taekwondo are highly innovative. It’s a practical movement closely linked to industrial production, not just armchair theorizing. What our country needs is action, not meditation, Your Excellency, Prime Minister!”

The Prime Minister declared.

“This is the first time I’ve seen our wise economic secretary so enthusiastic. Good. Let’s do it!”

If Bangladesh fails to transform itself this time, it will remain trapped as one of the poorest countries, dependent on aid well into the 21st century.

*

Bangladesh Thermal Power Plant Construction Site.

Krrreung~

A bulldozer was excavating a low hill to prepare the site.

Korean plant technicians and managers hired by the ADB were guiding Bangladeshi workers.

The construction equipment was also leased from Korea.

Labor was incredibly cheap, but even these low wages were essential to prevent starvation.

Farmland was limited, but the population was rapidly growing, and there were no factories to provide employment, creating a significant problem.

Korean managers gathered the workers and made an important announcement.

“Incentives will be paid if you comply with the following in addition to your regular wages.”

Hundreds of workers’ eyes lit up at the prospect of earning more money.