05 Oct 2022 Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation(BIMSTEC)
Source: The Hindu
About BIMSTEC:
- BIMSTEC is a multilateral regional organisation composed of 7 members.
- Member countries: Bangladesh, Bhutan, India, Nepal, and Sri Lanka, Myanmar and Thailand.
- Official headquarters of BIMSTEC is located in Dhaka and Sri Lankan diplomat Sumith Nakandala was appointed as its first Secretary General.
- Current Chair of BIMSTEC is Sri Lanka.
- BIMSTEC is a sector-driven organisation unlike SAARC or ASEAN. It means that the goals or areas of cooperation are divided between members. For Example: Initially, India was responsible for areas like transportation, tourism and Counter-Terrorism.
- Current Status: During the current summit i.e. fifth summit decision was taken for complete reorganisation of cooperation activities into seven pillars instead of 14 sectors.
- In its Fifth summit, BIMSTEC adopted a formal document or organisational architecture in the form of the BIMSTEC Charter. Adoption of masterplan for transport connectivity in the Bay of Bengal region at the current summit.
- India’s role: India is aspiring to be BIMSTEC’s pillar for security through areas of counter Terrorism and Transnational Crime (CTTCC) Disaster Management and Energy.
History of BIMSTEC:
- In 1997 through the Bangkok Declaration Bangladesh, India, Sri Lanka and Thailand formed BIST-EC.
- After the entry of Myanmar in late1997 it became BIMST-EC (Bangladesh, India, Myanmar, Sri Lanka and Thailand Economic Cooperation)
- Nepal and Bhutan joined BIMSTEC in 2004.
Aim of BIMSTEC:
- To accelerate shared growth and cooperation between littoral and adjacent countries in the Bay of Bengal region.
- To bring a sense of community among the members of the Bay of Bengal region: Bay of Bengal region lost its early twentieth century integration in the 1940s due to separate goals and alliance systems pursued by members of the region.
- Rediscovering common heritage around the Bay of Bengal by reviving the connectivity and common interests of the members of the Bay of Bengal region.
- According to BIMSTEC official websites “the regional group constitutes a bridge between South and South East Asia and represents a reinforcement of relations among these countries.”
Working mechanism of BIMSTEC:
- BIMSTEC has a working mechanism for policy making and operational goals.
- Policy making is done through summits and ministerial meetings. Summits are supposed to be held every two years; and ministerial meetings of Foreign and Commerce Ministers of member countries for deciding on trade and economic affairs, to be held once every year. To monitor the activities of the grouping an operational meeting of senior officials is supposed to be held twice a year.
- BIMSTEC Working Group acts as the coordinating body of BIMSTEC and also responsibles for reviewing the progress of the regional grouping.
- Chairman of BIMSTEC Working Group is selected on the basis of rotation.
Significance of BIMSTEC:
- BIMSTEC member states have a combined GDP of US$3.697 trillion/per year also it hosts 22% of the world population.
- Supports India ‘s initiatives such as ‘Act East’ policy (regional cooperation with southeast Asia countries) and concept of the ‘Indo-Pacific’ region.
- BIMSTEC will help India to gain trade and security prominence in the Indian Ocean region.
- India may become Net Security Provider in the Bay for maintaining peace and security,
- Significance of BIMSTEC is different for different countries: For Bangladesh, BIMSTEC provides much-needed economic development. For Sri Lanka, it offers potential for becoming a shipment hub in the Indo-Pacific region. For landlocked countries such as Nepal and Bhutan BIMSTEC grouping serves as a pass to the sea. For Myanmar and Thailand, the grouping will help to reduce over-dependence on China and will provide a huge consumer market for its commodities.
- Potential to prevent China from making inroads in the Indian Ocean Region: Over the years, China is making inroads in the Indian Ocean Region. China is building massive infrastructure in South and Southeast Asian countries, under projects such as Belt and Road Initiative (BRI). All BIMSTEC members except India and Bhutan are covered under BRI projects.
- BIMSTEC is important for utilizing the full land and maritime trade potential of the member countries.
- An alternative platform for cooperation among South-Asian Countries: As it helps India to bypass Pakistan’s obstructionist approach to the South Asian Association for Regional Cooperation(SAARC).
- Development of BIMSTEC Energy Center and BIMSTEC Business Council for cooperation in trade and energy.
- Help in developing maritime trade and tourism in the Bay of Bengal: As Bay of Bengal has coral reefs of around 8,471 sq.km an important source of natural resources for a coastal population.Bay has an annual fish catch of around six million tonnes, constituting 7% of the world’s catch.
Bottlenecks in BIMSTEC:
- Lack of efficiency due to inconsistency in holding policy making and operational meetings: BRICS summits are supposed to be held every two years. But since inception just five summits have been held in 25 years.
- “Sluggish” pace of BIMSTEC’s progress: Due to inadequate financial and manpower assistance to BIMSTEC secretariat for its operational activities.
- India’s selective approach towards BRICS: India starts taking interest in BIMSTEC WHEN SAARC is hamstrung due to Pakistan.
- Insufficient connectivity and transnational trade among BIMSTEC members: India’s percentage of annual trade with BIMSTEC countries as a percentage of its total foreign trade was just 4% in 2020.Most of the time BIMSTEC member countries import goods from other non-member countries.
- Absence of shared and lucrative coastal shipment ecosystem among BIMSTEC members led to frequent detention of fishermen who cross territorial borders.
- Difficult relations between member countries such as the Rohingya refugee issue between Bangladesh-Myanmar; India-Nepal border issue; hostile political situation in MyAnmar due to takeover by Military junta.
Summary: Economic integration of countries surrounding Bay of Bengal will spur the animal spirit required for development of these countries. Sector driven approach of the BIMSTEC provides each member to develop their economy according to their strengths and weaknesses. Being the largest country among the BIMSTEC members India should provide leadership to the BIMSTEC.
Article: Explained | What is the BIMSTEC grouping and how is it significant?
Article Link: https://www.thehindu.com/news/international/explained-what-is-the-bimstec-grouping-and-how-is-it-significant/article65275690.ece
Yojna IAS Daily current affairs eng med 5th Oct
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