BIMSTEC
The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is a sub-regional grouping that seeks to foster regional and economic cooperation among its 7-member nations in the littoral and adjacent areas of the Bay of Bengal, i.e., India, Thailand, Myanmar, Nepal, Bangladesh, Sri Lanka, and Bhutan.
Recent Development
Recently, the fifth BIMSTEC summit, held virtually in Colombo, produced significant outcomes:
- Adoption and signing of the BIMSTEC Charter: Presents BIMSTEC as “an inter-governmental organization” with “legal personality.” The grouping now views itself not as a sub-regional organization but as a regional organization.
- Reduced number of sectors in cooperation: From 14 to a more manageable 7.
- Adoption of the Master Plan for Transport Connectivity: Applicable for 2018-2028, this plan lays out a guidance framework for connectivity-related activities in the region in the future.
Significance of BIMSTEC
- Strategic
- Regional aspirations: The Bay of Bengal has grown in strategic significance within the Indo-Pacific, especially due to the contest between India and China for maximum presence.
- For example: China’s string of pearls policy and maritime silk route, and for India, BIMSTEC is key to fulfilling the country’s strategic aspirations to cater to the wider concept of ‘Indo-Pacific’ and an Indian Ocean community.
- A zone of geopolitical competition: Among major powers, especially in the context of overarching initiatives like the Belt and Road Initiative (BRI).
- Regional aspirations: The Bay of Bengal has grown in strategic significance within the Indo-Pacific, especially due to the contest between India and China for maximum presence.
- Economic:
- Trade potential: The Bay of Bengal is the largest bay in the world and is the route for about 25 percent of global trade.
- A zone of Natural Reserve: The Bay also has huge reserves of natural gas, which is an untapped source of energy.
- At global level: The Bay of Bengal (BoB) region is home to 1.68 billion people, accounting for almost 22 percent of the world population, with a combined GDP of US$ 3.7 trillion.
- Regional cooperation
- An alternative to SAARC: Due to setbacks to the South Asian Association of Regional Cooperation, BIMSTEC seeks to act as a bridge between South and Southeast Asia, making it a natural platform to fulfill our key foreign policy priorities of ‘Neighbourhood First’ and ‘Act East’.
- Security:
- Connective link: It borders the Strait of Malacca, which is the main energy lane for the eastern and Southeast Asian nations.
- Potential for India: It also presents an opportunity to enhance India’s Blue Economy and Maritime Security.
- Provide Regional security: Issues like piracy, trafficking, depleting fish stocks, and irregular migration plague the bay and require regional cooperation for resolution.
Importance for India:
- Bypasses Pakistan: It helps bypass the stalling of Pakistan seen in SAARC, making resolutions more favorable for India.
- ASEAN Connect: It helps the subcontinent connect more institutionally with ASEAN nations through Myanmar and Thailand.
- Market Access: It is an effective platform for India to align with the region’s economic interests.
- North-East development: Increasing cooperation with Myanmar and Thailand can benefit India’s North-East, which shares a long border with Myanmar.
- Soft Power: It showcases India’s influence over the region and helps extend its culture to these nations.
- Maritime Trade and Security: It can help develop maritime ties holistically with Thailand, Myanmar, and Sri Lanka.
Challenges with BIMSTEC:
- Untapped potential: The Bay of Bengal’s potential is hampered by a lack of close internal economic integration among the region’s countries.
- Physical infrastructure: The BIMSTEC region suffers from poor road and rail connectivity, insufficient last-mile links, and cumbersome customs and clearance procedures, which hinder trade and people-to-people interactions.
- Asymmetries among members: For example, Myanmar is possibly the most unreliable due to its domestic politics and the Rohingya crisis, while Bhutan is protective of its environment.
- Free Trade Agreement (FTA): Despite signing a framework agreement for a comprehensive FTA in 2004, BIMSTEC is far from achieving this goal due to protectionist economies of South Asian countries and national interests.
- Perception of Indian hegemony: There is an impression that it is an India-dominated bloc, a problem that India has faced for a long time in SAARC as well.
- Relevance of SAARC: The importance of SAARC for maintaining regional peace cannot be denied.
- Over presence of China: In BIMSTEC, several countries depend on China for support.
- For example: China’s debt-trap policy, BRI, and the Marine Silk Route.
- Unresolved Issues: Issues such as the Rohingya crisis (Myanmar), Kalapani territory issue (Nepal), Teesta and border issues (Bangladesh), etc.
- Strategic Importance of Afghanistan and Maldives: Afghanistan is important for border security, and the Maldives is vital for the Indian Ocean region. Both are not part of BIMSTEC.
- Inconsistent Meetings: Only 5 summits have taken place in 25 years.
- Lack of convergence: Myanmar and Thailand are more institutionalized with ASEAN and do not converge much with the other nations.
- Stalled Projects: Many projects are still in the initial stages or have been delayed, like the Asian Trilateral Highway.
BIMSTEC as an alternative to SAARC?
| SAARC | BIMSTEC |
|---|---|
| A regional organization looking into South Asia. | Interregional organization connecting South Asia and Southeast Asia. |
| Established in 1985; a product of the Cold War era. | Established in 1997 in the post-Cold War. |
| Member countries suffer from mistrust and suspicion. | Members maintain reasonably friendly relations. |
| Asymmetric power balance. | Balancing of power with the presence of Thailand and India on the bloc. |
| Intra-regional trade only 5 percent. | Intra-regional trade has increased around 6 percent in a decade. |
- For:
- Stable group: With an established government structure, all nations have cordial bilateral relations with each other.
- India’s Act East Policy: Focuses more on improving relations with ASEAN and other East Asian countries.
- Better Connectivity Prospects: Projects like the Kaladan Multimodal Project and IMT Trilateral Highway enhance connectivity.
- Good Intra Regional Trade: Around 7% of total trade, compared to 5% within SAARC members.
- More effective regional Group: Excludes Pakistan and Afghanistan.
- Against:
- Non-Inclusive: Due to the absence of Pakistan and Afghanistan, BIMSTEC does not address the major issue in the region between India and Pakistan.
- Inconsistency: BIMSTEC is inconsistent in its mandate and meetings, whereas SAARC is more institutionalized and regular over the last three decades.
- Strategic Relevance: SAARC allows India to engage strategically with Pakistan and resolve issues multilaterally.
- Connectivity: SAARC offers opportunities to connect with three strategically important regions: Central Asia, the Middle East, and Southeast Asia.
- Neighbourhood First: SAARC represents the entire subcontinent and aligns more closely with India’s neighborhood policy than BIMSTEC.
BIMSTEC is a natural platform to fulfill India’s key foreign policy priorities, such as Neighbourhood First and Act East. Major issues like security challenges in the region, growth, and development through increased trade and connectivity can be addressed.