THE CONTEXT: The 6th BIMSTEC Summit, held in Bangkok, marked a transformative moment for regional cooperation amidst global turbulence. By bringing together leaders from seven nations bordering the Bay of Bengal, the summit underscored the importance of BIMSTEC as a platform for fostering connectivity, economic integration, and disaster resilience.
WHAT IS BIMSTEC?
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- Origins: Established in 1997 through the Bangkok Declaration, BIMSTEC initially included Bangladesh, India, Sri Lanka, and Thailand under the name BIST-EC. Myanmar joined later that year, followed by Bhutan and Nepal in 2004.
- Membership: The grouping comprises seven countries—Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand—representing 1.5 billion people with a combined GDP of over USD 3.8 trillion.
- Purpose: BIMSTEC aims to accelerate economic growth and social progress in the Bay of Bengal region by promoting collaboration across multiple sectors such as trade, transport, energy, disaster management, and security.
SIGNIFICANCE OF THE 6TH BIMSTEC SUMMIT
Revitalization Amidst Challenges
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- Despite global uncertainties and disruptions like the Myanmar-Thailand earthquake, the summit demonstrated resilience in advancing regional cooperation.
- The adoption of the Bangkok Vision 2030, anchored in UN Sustainable Development Goals (SDGs) and Thailand’s Bio-Circular-Green (BCG) economy model, provided a strategic roadmap for prosperity and resilience.
KEY AGREEMENTS:
1. Connectivity Projects:
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- The India-Myanmar-Thailand Trilateral Highway was highlighted as a cornerstone for linking India’s Northeast region with Southeast Asia.
- The adoption of the Maritime Transport Cooperation Agreement aims to enhance cargo movement and regional logistics.
2. Economic Cooperation:
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- Plans for a Free Trade Agreement (FTA) were revived to streamline trade within the region.
- Establishment of a BIMSTEC Chamber of Commerce to foster business-to-business engagement and annual business summits were proposed.
3. Disaster Management:
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- A joint mechanism for disaster preparedness was emphasized to address vulnerabilities to cyclones, floods, and earthquakes.
4. Institutional Strengthening:
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- Rules of Procedure for BIMSTEC mechanisms were adopted to enhance transparency and efficiency in decision-making processes.
BILATERAL DIPLOMACY:
The summit provided opportunities for resolving bilateral tensions:
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- India-Bangladesh Relations: Prime Minister Modi met Bangladesh’s Chief Adviser Muhammad Yunus to address issues like border killings and minority treatment.
- India-Nepal Relations: Modi’s meeting with Nepal’s K.P. Sharma Oli aimed at resolving diplomatic strains over mutual ties.
WHY BIMSTEC OVER SAARC?
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- Exclusion of Pakistan: BIMSTEC avoids the India-Pakistan rivalry that has paralyzed SAARC since 2016. This enables smoother progress on regional initiatives without geopolitical deadlocks.
- Alignment with India’s Act East Policy: BIMSTEC complements India’s strategic goal of connecting South Asia with Southeast Asia through infrastructure projects like the Trilateral Highway.
- Multi-Sectoral Focus: Unlike SAARC’s limited agenda, BIMSTEC addresses diverse areas such as energy cooperation, disaster management, counter-terrorism, trade facilitation, and climate change adaptation.
THE CHALLENGES:
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- Resource Constraints: The BIMSTEC Secretariat in Dhaka lacks adequate staffing and financial support, hampering its ability to formulate cohesive policies or coordinate large-scale projects.
- Fragmented Governance: Unlike the ASEAN Charter, BIMSTEC does not have a legally binding framework that compels member states to follow through on commitments. The absence of a robust dispute-resolution mechanism or compliance-monitoring body leads to inertia, as seen in the frequent shelving of trade facilitation measures without accountability.
- Slow Implementation of Connectivity Projects: Initiatives such as the Kaladan Multi-Modal Transit Transport Project—connecting India’s Northeast to Myanmar’s Sittwe port—have repeatedly missed deadlines due to inadequate funding and ground-level bottlenecks.
- Maritime Deficiencies: Ports across the Bay of Bengal, especially in Bangladesh and Myanmar, face capacity constraints and outdated technology, limiting their ability to handle modern shipping volumes.
- China’s Expanding Footprint: China’s Belt and Road Initiative (BRI) projects, such as the Kyaukphyu port in Myanmar, are reshaping regional dynamics. India’s apprehensions about encirclement and undue Chinese influence in its immediate neighborhood complicate BIMSTEC’s agenda, as member countries attempt to balance ties with both regional powers.
- Competing Security Paradigms: Divergent threat perceptions—ranging from terrorism concerns in India to maritime security interests in Thailand—lead to piecemeal security cooperation.
- Unequal Distribution of Benefits: India, with the largest GDP in the group (over USD 3 trillion), faces the challenge of perceived dominance in trade negotiations. Smaller economies like Bhutan and Nepal fear economic absorption rather than equal partnership.
- Low Intra-Regional Trade: Despite a combined population exceeding 1.5 billion, intra-BIMSTEC trade remains under 7% of total trade volume, according to WTO estimates. High tariff and non-tariff barriers, along with complex customs procedures, have stalled the progress of a BIMSTEC-wide Free Trade Agreement.
- Overlap with SAARC: Many BIMSTEC projects closely resemble SAARC’s earlier initiatives—like the SAARC Food Bank—raising concerns of simply rebranding defunct mechanisms. Without fresh frameworks or updated feasibility studies, these duplicates risk failure.
- Fragmented Funding Mechanisms: BIMSTEC lacks a unified development fund akin to ASEAN’s Infrastructure Fund, making it dependent on ad hoc grants. This undermines the predictability and sustainability of key projects.
THE WAY FORWARD:
1. Deepening Institutional and Legal Frameworks
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- Empowered BIMSTEC Secretariat: Establish a permanent, well-resourced body with powers akin to the European Commission model. It should track project execution, resolve bureaucratic bottlenecks, and enforce accountability. Drawing inspiration from ASEAN’s success, a robust secretariat can institutionalize cooperation.
- Intra-Regional Arbitration Mechanisms: Inspired by international dispute resolution bodies (e.g., UNCITRAL), BIMSTEC could benefit from a legal framework to mediate trade or territorial disagreements, thereby depoliticizing conflicts.
2. Strategic Infrastructure Corridors and Multi-Modal Connectivity
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- Holistic Transport Grid: Extend beyond the India-Myanmar-Thailand Trilateral Highway to develop railways, water transport, and digital connectivity. Drawing on ADB-backed models, a unified blueprint (similar to the Trans-European Transport Network) can harmonize standards and reduce logistical barriers.
- Border Management Innovations: Adopt e-gate systems and integrated check posts (ICPs) at critical border points (e.g., Moreh along the India-Myanmar border). Case studies from Indo-Bangladesh ICPs show a reduction in clearance times by up to 60%.
- Dedicated Trade Corridors: A specialized corridor for trade in perishable goods (e.g., horticulture from Nepal or Bangladesh) could significantly reduce post-harvest losses. NITI Aayog studies suggest improved supply-chain logistics alone can boost agricultural export earnings by 20%.
3. Economic Integration with a ‘BIMSTEC Single Market’ Vision
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- FTA and Customs Union: Build on the ‘Vision 2030’ document to expedite negotiations for a BIMSTEC-wide FTA. World Bank estimates show that a cohesive regional trade agreement could boost intra-BIMSTEC trade by 70% in a decade.
- Sector-Specific Hubs: Following the BBIN hydroelectricity model, create synergy in renewable energy, pharmaceuticals, textiles, and the blue economy. Setting up cross-border Special Economic Zones (SEZs) can promote joint ventures and technology transfers.
- Harmonizing Standards and Regulations: Leverage frameworks like the WTO TBT (Technical Barriers to Trade) Agreement. Collaborating with the BIS (Bureau of Indian Standards) and equivalent regional bodies can foster consistent product standards, driving intra-regional commerce.
4. Human Security, Disaster Management, and Sustainable Development
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- Regional Humanitarian Assistance & Disaster Relief (HADR) Force: In line with the Sendai Framework for Disaster Risk Reduction, create a permanent BIMSTEC HADR task force. This force, composed of trained personnel and rapid-response teams, would mitigate losses from cyclones, earthquakes, and floods.
- Coordinated Pandemic Preparedness: Drawing lessons from COVID-19, implement a BIMSTEC Disease Surveillance Network. Partnerships with bodies like WHO or Coalition for Epidemic Preparedness Innovations (CEPI) could help in resource mobilization and vaccine distribution.
5. Political Trust-Building and Conflict Mitigation
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- Track II and Track III Diplomacy: Encourage think tanks, universities, and civil society organizations to convene dialogues. Instituting a ‘BIMSTEC Peace Forum’ can help build trust, share perspectives on border issues, and soften political rhetoric.
- Confidence-Building Measures (CBMs): Based on successful Indo-Bangladesh border management cooperation, replicate local-level CBMs for other contentious borders. Joint patrolling, cultural festivals, and sport events can reduce hostility and foster goodwill.
- Democratic and Inclusive Engagement: Emphasize the importance of political stability. For instance, the Commonwealth’s emphasis on democracy and good governance could inspire guidelines within BIMSTEC to address issues like electoral integrity, minority rights, and conflict resolution.
6. Fostering a Shared Cultural and Knowledge Economy
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- Educational Exchange Programmes: Similar to ERASMUS in the EU, a ‘BIMSTEC Student Mobility Scheme’ can deepen mutual understanding and produce future policy leaders who appreciate regional cooperation.
- Cultural Corridors: Promote historical linkages (e.g., the Buddhist tourism circuit across India, Myanmar, and Thailand) to drive tourism revenue and strengthen civilizational bonds. The Mekong-Ganga Cooperation model can be adapted to anchor these initiatives.
- Joint Research and Innovation Hubs: Encourage cross-border R&D centers in fields like renewable energy, biotechnology, and digital infrastructure. Co-funded scholarships and collaborative projects—like those initiated by the Bill & Melinda Gates Foundation—can attract global partners.
THE CONCLUSION:
The 6th BIMSTEC Summit represents a critical juncture in revitalizing regional cooperation across South Asia and Southeast Asia. By addressing institutional weaknesses, promoting inclusivity among member states, and focusing on tangible outcomes through Vision 2030 initiatives, BIMSTEC has the potential to emerge as a robust platform for economic integration and geopolitical stability in the Bay of Bengal region.
UPSC PAST YEAR QUESTION:
Q. Do you think that BIMSTEC is a parallel organisation like the SAARC? What are the similarities and dissimilarities between the two? How are Indian foreign policy objectives realized by forming this new organisation? 2022
MAINS PRACTICE QUESTION:
Q. Analyze the potential of BIMSTEC in fostering regional integration and economic growth while addressing the challenges it faces.
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