Taking The BIMSTEC Route To Prosperity

Context: BIMSTEC is holding its summit on Mar 30 in Sri Lanka. As SAARC has failed to make any progress in the past few years, the burden to advance the regional cooperation now lies on BIMSTEC. Further, meticulous preparations behind the scenes have created an atmosphere of hope for its success.

What is BIMSTEC and how has it grown over time?

– – Read here

It completes 25 years of the journey that began in Bangkok in June 1997.

Until 2014, it was a low-profile, unassuming sub-regional grouping. But as hopes of SAARC cooperation faded, India took a bold initiative, helping the smaller grouping to develop ambition.

– In Oct 2016, the leaders of BIMSTEC were invited to a historic retreat for deep reflection, where they also interacted with the BRICS leaders.

– In 2018, BIMSTEC felt adequately confident to project itself as a dynamic regional grouping, ready to work for “a peaceful, prosperous and sustainable Bay of Bengal Region”.

Why is BIMSTEC significant?

It represents 1. 7 billion people and a combined GDP of $3. 8 trillion, which can accelerate economic development through greater integration.

Since the SAARC continues to be in limbo, BIMSTEC is the only available platform for South Asian cooperation with the region.

For India

For India specifically, BIMSTEC is of increasing relevance to its

– Neighbourhood First policy

– national priority to ensure stability and development in the Northeast,

– Indo-Pacific strategy.

What are the likely outcomes of the summit?

BIMSTEC leaders will adopt the charter (or constitution) that defines its goals, institutions and long-term vision.

Leaders may also approve a major rationalisation of sectors of cooperation, pruning them down from 14 to seven areas, each assigned to a member state as ‘the lead’.

They will support the strengthening of the secretariat, with at least one country – India – offering additional funding to shoulder its added responsibilities.

A 10-year master plan for transport connectivity supported by the Asian Development Bank will be adopted.

Three new agreements will be signed, focussed on

– mutual legal assistance in criminal matters

– cooperation between diplomatic academies and

– the establishment of a technology transfer facility in Colombo.

What are the challenges that need to be addressed?

One, connectivity issue, is based on the triple-axis of coastal shipping linkages, a seamless road transport network governed by a motor vehicles agreement, and a smooth energy grid interconnection based on demand and supply. Some agreements are not in place yet, while others await implementation.

Two, the creation of a BIMSTEC development fund, which has shown little progress so far.

Three, cooperation for disaster management and security cooperation for countering international terrorism, crime and cyber security have developed well. But, they need to be balanced with progress on the economic front, as some members’ worry about the group’s ‘over-securitisation’.

Four, the plan to conclude a comprehensive free trade agreement, which began with a framework agreement signed in 2004, poses the biggest challenge. Existing impediments to the trade agreement need to be removed by gathering the necessary political will.

Five, the leaders may develop a consensus on the broad parameters that should shape BIMSTEC’s ties with its external partners. This is of increasing importance, given China’s marked intrusion into the geo-economic space of BIMSTEC.

What is the way forward?

BIMSTEC should draw suitable lessons from the successful ASEAN model.

BIMSTEC aspires to be inclusive, an association of business and industry leaders as well as other stakeholders from the ‘Third Space’ comprising youth, women groups and media. A rejuvenated BIMSTEC will contribute to turning the Indo-Pacific into a free, open and inclusive region.

Source: This post is based on the article “Taking The BIMSTEC Route To Prosperity” published in The Times of India on 28th Mar 22.