Twenty Years of BIMSTEC

Promoting Regional Cooperation and Integration in the Bay of Bengal Region

Prabir De

• Publisher: Routledge
• Year: 2019
• ISBN:
  9781000759228
• Edition: 1
• Topic: Politics & International Relations
• Subtopic: Diplomacy & Treaties
• Index: Politics & International Relations

This book reviews the past and provides new strategies to help BIMSTEC achieving a new paradigm of integration. It primarily deals with the regional cooperation and integration issues, and assesses policy priorities, effectiveness, implementation imperatives and challenges. Each chapter in this book tries to capture essential features of the crosscutting issues and attempts to draw some policy implications. The subject of this book will be of special interests to policy planners, development organisations, academicians, researchers as well as potential investors.

Please note: T&Fdoes not sell or distribute the Hardback in India, Pakistan, Nepal, Bhutan, Bangladesh and Sri Lanka.

Chapter 1
Introduction

Prabir De

The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) was established in 1997 to expand cooperation among Bay of Bengal countries. BIMSTEC is a unique regional cooperation initiative in terms of geographical contiguity and spread, natural resources and the vast labour force of its member states. BIMSTEC countries, namely, Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand, together boast access to the Indian Ocean and the Himalayas, as well as natural resources such as oil, gas and hydro power. With a young and vast labour force, the future lies in BIMSTEC and the Bay of Bengal.

BIMSTEC was established in June 1997 with the Bangkok Declaration. Objective of BIMSTEC is to accelerate economic growth and social progress in the region through joint endeavours. Further, BIMSTEC countries agree to cooperate more effectively in joint efforts that are supportive of and complementary to national development plans of member states. BIMSTEC does not have a laid down charter. Bangkok Declaration and directions of the leaders are the guiding principles.

In spite of the solid foundation of geographical contiguity and shared history and cultural ties, BIMSTEC has yet to make visible progress in advancing concrete cooperation among the member states. Two recent developments, however, have generated renewed hope that BIMSTEC is poised to take off as a viable regional grouping. First, BIMSTEC established its permanent Secretariat in Dhaka in 2014. Second, BIMSTEC cooperation received new impetus from the Leaders’ Retreat, held in Goa on 16 October 2016, wherein the BIMSTEC Leaders pledged to work collectively towards making BIMSTEC stronger, more effective, and result oriented.

While BIMSTEC has long maintained a low profile as a regional bloc since its humble beginnings in 1997, it has been growing rapidly in recent years. BIMSTEC is a natural choice for strengthening South Asia’s linkages with the Southeast Asia and Indian Ocean region. India’s Act East Policy (AEP) is a key catalyst to strengthen South Asia’s partnership with Southeast and East Asia. This opens up enormous opportunities in trade and value chains within BIMSTEC.¹ Trade is a top priority for BIMSTEC countries and it currently accounts for over 60 percent of the grouping’s combined GDP. Member countries constitute 3.8 percent of world trade and intra-regional trade grew to six percent of global trade in 2016. Tariffs are no longer the major barrier to intra-regional trade, but cost and time to trade remain relatively high. At the same time, BIMSTEC countries face huge trade barriers due to wide varieties of non-tariff measures (NTMs). Growth of intra-regional investment is also negligible, and the region is yet to witness any regional connectivity projects on the ground.

1. Read, for example, Menon and Srinivasan (2018) for a detailed discussion on such potentials.

As the BIMSTEC enters the third decade of its existence, it is high time to take stock of BIMSTEC’s achievements and chart future direction of the organisation. There is a need to review the past and undertake new strategies to help both BIMSTEC and the global community achieving a new paradigm for BIMSTEC’s integration. This book makes an attempt to fulfil this objective through detailed analysis of economic and non-economic issues of regional cooperation and integration. Each chapter in this book tries to capture essential features of the cross-cutting issues and attempts to draw some policy implications. Following introduction, it has 16 chapters in harnessing integration for regional development: Cultural and Civilizational Linkages (Part I), Trade and Investment (Part II), Connectivity (Part III) and Emerging Challenges and the Way Forward (Part IV).

Part I: Cultural and Civilizational Linkages

BIMSTEC countries inhabit a shared geographical and cultural space. They have a rich history of maritime trade and ancient cultural linkages². Maritime relations between them date back to ancient time. India’s trade from ports such as Lothal, its coastal temples at Mahabalipuram and ancient links with My Son in Vietnam show the strength of its ancient maritime linkages. Since the days of the Indus Valley Civilization, countries around the Bay of Bengal have maintained an extensive network of maritime links, including with Africa, Western Asia, the Mediterranean region, the West, Southeast Asia and the Far East. The maritime trade was multi dimensional because monks, traders, sculptors and envoys were travelling together. The trade contacts between the Bay of Bengal countries contributed to the socio-economic development of the region. Chapter 2 dwells upon maritime trade and societal transitions in the extended eastern Indian Ocean c. 900–1500. This chapter has introduced and validated regional documentation that includes newly available shipwreck and archaeological recoveries. The Bay is more visible from the medieval period as it participated in Arab, Persian, African and subsequently Portuguese and Ottoman networks. People, ideologies and material objects circulated. Movements of stylistic conventions across far flung regions and circulations of tangible objects—horses, peoples, ceramics, religious artefacts and cowries testify to engagements with wider exchange circuits. As a corollary, Chapter 3 discusses the civilizational linkages in the Bay of Bengal region until 1800, and uncovers interactions through maritime landscapes and cultural routes stretching over a millennium. Gradually, all over South and Southeast Asia traditional maritime powers lost to the seaborne might of the Europeans. The British in Bengal started carving out their continental empire. Territories consolidated, new towns and capitals appeared, preparing for the long eighteenth century. Cultural cooperation has, therefore, gained high importance in Bay of Bengal region since the entire region underscores the relevance of the shared heritage in preserving cultural diversity and protecting maritime landscapes. Chapter 4 takes a closer look at the cultural potential and presents a series of policy measures to rejuvenate cultural linkages in the Bay of Bengal region. Among the BIMSTEC countries, Bhutan is unique in terms of preserving cultural values. Culture in any form is in a constant state of evolution, while its values make up the foundation. A happy and a prosperous society like Bhutan is characterized by people living together in a relationship of mutual fulfilment. Chapter 5 examines the meaning of culture in Bhutan; it, among others, offers important lessons to other BIMSTEC countries in strengthening cultural relations.

2. Refer, Amrith (2013) for an excellent account of cultural linkages in Bay of Bengal.

Part II: Trade and Investment

In the contemporary period, while BIMSTEC countries continue to enhance and facilitate economic cooperation as it moves toward the attainment of Bay of Bengal Community, BIMSTEC countries have cultivated economic cooperation within the region as well as with its key external trading partners. Economic cooperation is at the forefront of BIMSTEC. Chapter 6 analyses the current structure of trade and investment relations of BIMSTEC countries and examines the implications of existing condition of cross-border connectivity within the region and identifies the potentials of incremental trade of BIMSTEC countries under the BIMSTEC FTA. The chapter puts forward suggestions on how BIMSTEC countries should negotiate on FTA, trade facilitation and other trade-related agreements with a view to ensure incremental benefits for member states in case of trade and investment. Chapter 7 takes the discussion further ahead. It presents the status, discusses the challenges and identifies the possible solutions. Among the BIMSTEC countries, Myanmar is unique in terms of its strategic location—two large economies of the world, namely, India and China, are its immediate neighbours. Myanmar is the bridge-head between South and Southeast Asia. Chapter 8 is, therefore, devoted on Myanmar. It argues that Myanmar could wisely use its strategic position to become a “Golden Gateway” between the Bay of Bengal and the Heart Land of Asia.

Part III: Connectivity

The present state of connectivity in the Bay of Bengal region is inadequate to support the goal of BIMSTEC, which is to weave together the fast-growing economies of the region in ways that will result in greater growth and the creation of conditions for more people to emerge from poverty. The current state of connectivity contrasts with that in historical times. However, the region is on the cusp of change. Chapter 9 outlines the causes of decline in connectivity, identifies the circumstances conducive to improvement and describes the changes that are already underway. Contrary to the usual emphasis given to connectivity that makes possible the transportation of goods by sea and land, this chapter begins with electronic and air connectivity, which were not present in historical times. Connectivity lies at the core of promoting enhanced transport linkages and intra-regional trade and its development requires a set of coordinated policies and strategies for the provision of the requisite hard and soft infrastructure. Chapter 10 highlights the connectivity needs and identifies detailed implementable proposals. This inversion indicates hope that the region will compensate for its long dormancy by leap-frogging through new technologies. What would be the big challenge in connectivity is how quickly we transform India’s Northeast into a land-linked region. This is the subject of Chapter 11. BIMSTEC could be a potential game changer as countries in the regional cooperation along with the Northeast India are bound by geography and linked by history. Connectivity challenges in case of landlocked country are immensely complicated. Nepal is one such landlocked country in BIMSTEC, which has been suffering from its landlockedness. Chapter 12, therefore, takes a closer look at the recent developments in Nepal’s trade logistics and provides a set of recommendations in order to strengthen Nepal’s connectivity with the BIMSTEC region and beyond.

The seas around us are gaining new found importance and there is no doubt that the current century is the ‘century of the seas’. BIMSTEC has a wealth of sea-based resources and there is a significant potential for harnessing the ‘Blue Economy’. Investing in the Blue Economy leads to ecosystem benefits and results in enhanced public goods and services, which are invaluable and promote equity. India has made good progress in harnessing its Blue Economy for inclusive development. There is, therefore, a need to outline a comprehensive perspective plan for sustainable development and growth in different avenues of the maritime sector. In addition, there is also a requirement to coordinate and oversee the implementation of the Blue Economy for development of our maritime interests so as to enable BIMSTEC countries to emerge as resurgent maritime nations. Chapter 13 talks about India’s achievements in Blue Economy and draws important lessons for BIMSTEC countries.

Part IV: Emerging Challenges and the Way Forward

Recent years have shown increasing awareness of the opportunities offered through stronger regional cooperation in BIMSTEC. BIMSTEC has, however, made progress in several other areas such as people-to-people contacts or energy cooperation. At the same time, it has also witnessed many failures or slow progress. BIMSTEC has been facing several challenges that cover a number of areas, and calls for concerted efforts by the member states to overcome.

The Bay of Bengal is an area growing in economic and strategic importance, derived from its position as the principal maritime connection between the Pacific and Indian Oceans and from the good economic prospects of many Bay of Bengal states. Chapter 14 reviews our historical understanding of the Bay of Bengal as an interconnected ‘region’, its economic prospects and current initiatives to better connect Bay of Bengal states with each other and with the rest of the world. This chapter argues that in coming years the Bay of Bengal may assume a much more central place in the Indo-Pacific as its economic significance grows but that it will also benefit from greater regional coordination. Sino-India cooperation is of strategic significance. Cooperation between China and India will eventually strengthen the BIMSTEC relations. The Chapter 15 discusses the dynamics of the Bay of Bengal and the Sino-India “Cooperation Dilemma”.

BIMSTEC region is a natural contour of the Indian Ocean. BIMSTEC and IORA are siblings, which are interconnected through culture, commerce and connectivity. BIMSTEC and IORA are predominantly maritime nations and share the ocean to promote economic and strategic relations. Both face some common challenges in securing safe navigation. While both the institutions have been actively engaged in promoting integration in their own regions, a formal interaction between them is yet to take place. Chapter 16 analyses the broad contour of IORA-BIMSTEC relations, discusses the scope and opportunities of cooperation and presents a set of goals to enhance the inter-regional cooperation between them. This chapter has also provided a list of measures to strengthen the regional cooperation between the two blocs. Finally, Chapter 17 looks at BIMSTEC’s future prospects. It suggests some concrete steps BIMSTEC can take to strengthen itself. Clearly, BIMSEC needs to strengthen its secretariat, and member states should be generous to provide more funding.

Concluding Remarks

Twenty years after the establishment of the BIMSTEC, Bay of Bengal cooperation needs a new impulsion, or, more precisely, a real, substantive beginning to go beyond wishful thinking level.³ The chapters here have presented a series of measures to take the integration process to its next higher level.

3. Read, also De (2017).

What is clear is that the BIMSTEC has achieved much over the last 20 years. But, its success has given rise to new challenges. Overcoming these challenges will require a slew of interventions. Greater investments and improvements in the quality of cross-border infrastructure will be necessary to overcome size and geography. More socio-cultural interactions will build greater sense of ownership of BIMSTEC among the people of the region.

A stronger BIMSTEC means a stronger Asia and Indo-Pacific. BIMSTEC will continue to play a central role in promoting economic integration and inclusive development over the next 20 years in Bay of Bengal region. Next 20 years would be BIMSTEC’s decades.

References

Jayant Menon and T. N. Srinivasan, Integrating South and East Asia: Economics of Regional Cooperation and Development (New Delhi: Oxford University Press, 2018).

Prabir De, “Big Ideas to Shape BIMSTEC’s Future,” East Asia Forum, September 15, 2017, http://www.eastasiaforum.org/2017/09/15/big-ideas-to-shape-bimstecs-future/.

Sunil S. Amrith, Crossing the Bay of Bengal: The Furies of Nature and the Fortunes of Immigrants (Cambridge: Harvard University Press, 2013).