BIMSTEC after the Colombo summit

News: The 5th summit of the regional grouping, the BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation), composed of five South Asian countries and two Southeast Asian countries, was held virtually in Colombo on March 30.

The summit has undoubtedly advanced the cause of regional cooperation and integration.

But, the question to address is – whether BIMSTEC is now capable of tackling the challenges facing the region and can this multilateral grouping trigger accelerated economic development?

How the BIMSTEC was gradually strengthened?

India took a lead in strengthening and rejuvenating BIMSTEC by convening the Leaders’ Retreat in 2016.

A forward-looking summit held in Kathmandu in 2018, meant the efforts to enshrine primacy to BIMSTEC further gained momentum.

The eventual result is now seen in the package of decisions and agreements announced at the latest summit.

What is the outcome of the Colombo summit?

Colombo package consists of the following elements:

1) BIMSTEC Charter: Adopted formally, it presents BIMSTEC as “an inter-governmental organization” with “legal personality.” Among BIMSTEC’s purposes is acceleration of “the economic growth and social progress in the Bay of Bengal region”, and promotion of “multidimensional connectivity”.

The grouping now views itself not as a sub-regional organisation, but as a regional organisation whose destiny is linked with the area around the Bay of Bengal.

2) Reduction in the number of sectors of cooperation from the 14 to a more manageable seven. Each member-state will serve as a lead for a sector:

– trade, investment and development (Bangladesh);

– environment and climate change (Bhutan);

– security, including energy (India);

– agriculture and food security (Myanmar);

– people-to-people contacts (Nepal);

– science, technology and innovation (Sri Lanka),

– connectivity (Thailand).

3) Adoption of the Master Plan for Transport Connectivity (2018-2028). This approval was delayed, but its importance lies in the highest-level political support accorded to this ambitious plan. It was devised and backed by the Asian Development Bank (ADB).

4) Finally, the package also includes three new agreements signed by member states, relating to

– mutual legal assistance in criminal matters

– Cooperation between diplomatic academies

– The establishment of a technology transfer facility in Colombo

What are the challenges that the grouping faces?

The pillar of trade, economic and investment cooperation needs greater strengthening and at a faster pace.

– Despite signing a framework agreement for a comprehensive Free Trade Agreement (FTA) in 2004, BIMSTEC has made slow progress on this front. Of the seven constituent agreements needed for the FTA, only two are in place as of now. Work on the legal instruments for coastal shipping, road transport and intra-regional energy grid connection, remains unfinished.

What is the way forward?

Speedy success has been achieved in deepening cooperation in security matters and management of Humanitarian Assistance and Disaster Relief (HADR). Likewise, by working on FTAs, the economic development needs to be hastened too.

BIMSTEC should focus more in the future on new areas such as the blue economy, the digital economy, and promotion of exchanges and links among start-ups and Micro, Small and Medium Enterprises (MSMEs).

The personal engagement of the political leadership should be increased. The decision taken in Colombo to host a summit every two years is welcome if implemented. But in the medium term, an annual summit should be the goal, with an informal retreat built into its programme.

BIMSTEC needs greater visibility. India’s turn to host the G20 leaders’ summit in 2023 presents a golden opportunity, which can be leveraged optimally. All BIMSTEC members can be invited to the G20 summit as the chair’s special guests.

Simplifying the name: The present name running into 12 words should be changed to four words only — the Bay of Bengal Community (BOBC). Brevity reflects gravitas.

Source: This post is based on the article “BIMSTEC after the Colombo summit” published in The Hindu on 2nd April 22.