This paper examines the situation of local capacity for participating in development programs
that initiated by the government and various development agencies for the betterment of Pahari
people in the CHT. It will uncover the secret process of 'Pahari' (the Hill People) -Bengali
polarization in relation to the development programs in after accord situation. The recurrent
process of dichotomization by the state in the name of development has intensified gradually.
The state policy of continuous intrusion and alien treatment to the 'Pahari' people made them
suspicious that anything comes from plain land. So, this paper emphasizes the interaction
between the state policy and the ethnic minority constructing the discourse 'Pahari'-Bengali in
Bangladesh through the development programs in relation to historical ascendency as well as
current experiences. It unfolds, how state policy justifies authoritative dominance and legalizes
the power exercise practiced by ethnic majority and how these processes wipe out the sense of
cultural identity of 'Pahari' people on the pretext of development.