Foreign Policy Watch: India-SAARC Nations

BIMSTEC

Note4Students

From UPSC perspective, the following things are important :

Prelims level: BIMSTEC

Mains level: Paper 2- BIMSTEC -challenges and opportunities ahead

Context

The fifth summit of the regional grouping, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), held virtually in Colombo on March 30, has advanced the cause of regional cooperation and integration.

Colombo package

  • Economic challenges: Representing a fifth of the world’s population that contributes only 4% of the global GDP, can this multilateral grouping trigger accelerated economic development?
  • It was clear that BIMSTEC first needed to strengthen itself — by re-defining its purpose and rejuvenating its organs and institutions.
  • The eventual result is now seen in the package of decisions and agreements announced at the latest summit.

Achievement of Colombo Summit

  • 1] Adoption of Charter: Adopted formally, it presents BIMSTEC as “an inter-governmental organization” with “legal personality.”
  • BIMSTEC’s purposes: Defining BIMSTEC’s purposes, it lists 11 items in the first article.
  • Among them 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 sectors of cooperation: The second element is the decision to re-constitute and reduce the number of sectors of cooperation from the unwieldy 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), and connectivity (Thailand).
  • 3] Adoption of the Master Plan for Transport Connectivity:  the summit participants adopted the Master Plan for Transport Connectivity applicable for 2018-2028.
  •  It was devised and backed by the Asian Development Bank (ADB).
  • It lists 264 projects entailing a total investment of $126 billion.
  • Projects worth $55 billion are under implementation. BIMSTEC needs to generate additional funding and push for timely implementation of the projects.
  • 4] Signing of three new agreements: Finally, the package also includes three new agreements signed by member states, relating to mutual legal assistance in criminal matters, cooperation between diplomatic academies, and the establishment of a technology transfer facility in Colombo.

Challenges

  • The pillar of trade, economic and investment cooperation needs greater strengthening and at a faster pace.
  • Absence of FTA: Despite signing a framework agreement for a comprehensive Free Trade Agreement (FTA) in 2004, BIMSTEC stands far away from this goal.
  • Lack of legal instruments: The need for expansion of connectivity was stressed by one and all, but when it comes to finalising legal instruments for coastal shipping, road transport and intra-regional energy grid connection, much work remains unfinished.
  • There needs to be mention of the speedy success achieved in deepening cooperation in security matters and management of Humanitarian Assistance and Disaster Relief (HADR).
  • Focus more on new areas: 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).
  •  Step up the personal engagement of political leadership: The personal engagement of the political leadership should be stepped up.
  • The decision taken in Colombo to host a summit every two years is welcome if implemented.
  • Greater visibility:  BIMSTEC needs greater visibility.
  • India’s turn to host the G20 leaders’ summit in 2023 presents a golden opportunity, which can be leveraged optimally. Perhaps all its members should be invited to the G20 summit as the chair’s special guests.
  • Simplify the groupings name: The suggestion to simplify the grouping’s name needs urgent attention.
  • The present name running into 12 words should be changed to four words only — the Bay of Bengal Community (BOBC).
  • It will help the institution immensely. Brevity reflects gravitas.

Conclusion

BIMSTEC is no longer a mere initiative or programme. The question to address is whether it is now capable of tackling the challenges facing the region.

UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments

JOIN THE COMMUNITY

Join us across Social Media platforms.

💥Mentorship New Batch Launch
💥Mentorship New Batch Launch