Despite forceful criticism of Bangladesh's election, the United States largely plans to maintain cooperation with a Muslim-majority country it sees as a force for moderation, policymakers say.
The United States and European Union voiced disappointment over Bangladesh's January 5 election, which was marred by deadly violence and an opposition boycott.
A US official said Washington had been "relentless" over the past year in pressing Bangladesh's notoriously bitter political rivals for a fair and competitive election.
But, while the United States said it did not consider the election credible, it also indicated it would still work with Prime Minister Sheikh Hasina, privately concluding that outsiders had limited ability to ease decades of intense, personal enmity between her and arch-enemy Khaleda Zia.
A US official said Washington's key priority was to encourage new elections but that it would not suspend assistance, which is largely routed through non-governmental groups.
"I don't think we advance our strategic interests by curtailing that. You don't end up punishing anybody but the recipients, who are the people on the ground," the official told AFP on condition of anonymity.
The World Bank, where the United States holds the most voting power, on Thursday approved USD 410 million to improve basic urban services for some 3.4 million Bangladeshis.
The US official saw hopeful signs despite visible problems, saying the world's eighth most populous nation has been making progress on US-backed development goals and women's empowerment and has consistently posted solid economic growth.
The US official contrasted Bangladesh's treatment of minorities with the wave of religious violence in recent years in Pakistan, from which Bangladesh won independence in a bloody 1971 war.
"Of the two Muslim-majority countries in South Asia, one has problems that everybody is aware of, and the other over the past 20 years -- despite its very difficult circumstances of independence -- has achieved... A very pluralistic, democratic tradition," he said.
The United States had an interest in maintaining stability in the region as it prepares to withdraw combat troops from Afghanistan and also tries to increase clout in Asia faced with the rise of China, he noted.
China has taken an interest in Bangladesh, but Kugelman doubted Dhaka would tilt significantly to Beijing, because Hasina enjoys warm ties with giant neighbor India.
