BIMSTEC
Published on 06 Jan 2025
The BIMSTEC, a regional organization formed on June 6, 1997, through the Bangkok Declaration, consists of seven Member States. Five are from South Asia (Bangladesh, Bhutan, India, Nepal, Sri Lanka), and two from Southeast Asia (Myanmar and Thailand). The BIMSTEC Secretariat is located in Dhaka, Bangladesh.
Significance of BIMSTEC
Economic
Population and Economic Power: BIMSTEC region hosts 22% of the world population or 1.68 billion people, and the member states have a combined GDP of US$3.697 trillion/per year.
Sustained Growth: BIMSTEC facilitates a quarter of the world's traded goods across the bay annually.
Example: All member states maintained growth rates between 3.4% and 7.5% from 2012 to 2016.
Political
Foreign Policy Alignment: BIMSTEC aligns with India's foreign policy.
Example: Objectives of "Neighborhood First" and "Act East” met through BIMSTEC.
Diplomatic Success: India’s position has allowed it diplomatic powers.
Example: India successfully used BIMSTEC to isolate Pakistan when member countries supported India's call for a boycott of the SAARC summit in Islamabad.
Crucial Against Assertive China: BIMSTEC provides India with a platform to counter Chinese investments by promoting connectivity projects based on recognized international norms.
Example: BIMSTEC can showcase the Bay of Bengal as open and peaceful, contrasting with China's behavior in the South China Sea.
Maritime diplomacy: BIMSTEC engagement is completely in consonance with the SAGAR Initiatives.
Connectivity
Intra-regional cooperation: BIMSTEC serves as a vital platform for intra-regional cooperation.
Example: It acts as a bridge between SAARC and ASEAN members and connects the ecologies of the Himalayas and the Bay of Bengal.
Connectivity for Northeastern States: Economic development of India's northeastern states was achieved by establishing connectivity.
Example: Connectivity with the Bay of Bengal region through Bangladesh and Myanmar.
Important connectivity projects: Key area for economic development.
Example: Kaladan Multimodal Project, Asian Trilateral Highway, BBIN Motor Vehicles Agreement:
Challenges Associated with BIMSTEC
Inconsistency in Meetings: BIMSTEC summits and ministerial meetings indicate a lack of consistent engagement.
Example: It has but has held only four summits in 20 years until 2018.
Neglect by Member States: Perception that major members, notably India, turn to BIMSTEC only when other regional forums, such as SAARC, face obstacles.
Example: Some members, like Thailand and Myanmar, appear more focused on ASEAN.
Broad Focus Areas: The extensive range of 14 cooperation areas, including connectivity, public health, and agriculture, raises concerns about effectiveness.
Bilateral Issues: Existing bilateral challenges create complexities within BIMSTEC.
Example: Issues such as the Rohingya refugee crisis between Bangladesh and Myanmar and the border conflict between Myanmar and Thailand.
BCIM Forum: The emergence of the Bangladesh-China-India-Myanmar (BCIM) Forum, actively involving China, raises questions about the exclusive potential of BIMSTEC and potentially dilutes its focus.
Poor Economic Cooperation: Despite signing a framework agreement for a comprehensive Free Trade Agreement (FTA) in 2004, progress toward economic cooperation remains slow.
Example: Current intra-BIMSTEC trade is $40 billion, falling short of the potential estimated at $250 billion.
Unfinished Projects: Despite discussions on the expansion of connectivity, various projects remain incomplete due to delays in finalizing legal instruments.
Example: Delay in BBIN and Kaladan Projects.
Leadership and Resources Deficiency: Insufficient leadership, human resources, and financial support hinder BIMSTEC's ability to fulfill its ambitious mandate.
Example: The meager budget of $0.2 million and a staff of fewer than 10, including the secretary general and three directors, impede effective implementation.
RCEP Opt-Out by India: India's decision to opt out of the Regional Comprehensive Economic Partnership (RCEP) diminishes the potential synergy that could have enriched BIMSTEC.
Way Forward
Informal BIMSTEC Leadership: India should bear an asymmetric burden in leadership by engaging in high-level representation and going the extra mile diplomatically, financially, and in terms of human resources.
Multilateral Discussions: Conduct sustained bilateral and group-level discussions to address domestic and geopolitical issues, preventing challenges like the Rohingya crisis.
Political Engagement: Ensure sustained political engagement, especially with key partners like Nepal, Sri Lanka, and Bangladesh, to prevent domestic political issues from affecting working relationships.
Boosting Connectivity and Cooperation: Advocate for an FTA covering maritime resource-rich members like Myanmar and Sri Lanka to enhance trade connectivity.
Diversification of Focus Areas: Shift focus towards new areas such as the blue economy, digital economy, and promotion of exchanges among start-ups and Micro, Small, and Medium Enterprises (MSMEs).
Action Matching Words: Emphasize the need for sincerity in matching words with action, encouraging other member countries to follow India's example of commitment and support.
Annual Summits for Commitment: Hold regular annual summits to demonstrate a consistent commitment to the new vision.
Regional Value Chains: Create regional value chains within BIMSTEC which can be integrated into Global Value Chains.
BIMSTEC holds significant promise in fostering regional connectivity, cooperation, and security within the Bay of Bengal area. The potential transformation of the Bay of Bengal into a conduit for enhanced connectivity, prosperity, and security among member countries underscores the impactful role that BIMSTEC could play in shaping the region's future dynamics.