BIMSTEC: A vehicle for growth and development

Greetings from Gateway House

As a strong believer in BIMSTEC, I offer my considered comments in a candid but constructive manner. The idea is neither to overestimate nor underestimate the achievements so far, but show the way to overcome the present constraints and help in accelerating the speed of progress.

Brief backdrop

• There was limited progress until 2016.
• Some notable strides during 2016-18: Leaders’ Retreat; Outreach with BRICS; the first meeting of National Security Advisors; 15^th Ministerial Dialogue (2017); 4^th summit (2018); Reform Package.
• 2019-21: Saw a period of introspection and preparations that seemed inaction and inertia as well as of regional tensions caused by Bangladesh-Myanmar ties, India’s ties with Nepal and Sri Lanka, coup in Myanmar and the China factor.
• Impact of COVID-19: People’s hardship; a deceleration in the economy, yet it opened up new opportunities and priorities, as delineated in the concept note.

So, what should we do now?

My answer: Be inclusive. We have political leaders, officials and academics here, but where are the representatives of two key constituencies: Business and ‘Third Space’. We need to include them in such deliberations and listen to their voices.

The perspective of the business community was duly reflected in a key knowledge paper entitled ‘Reinvigorating BIMSTEC: An Industry Vision for the Next Decade’ issued by FICCI in January 2018. It remains totally valid even now. The main elements are:

• Key areas of cooperation are: Trade and Investment, Transportation and Communication, Energy, Disaster Management, Tourism, People-to-People contacts, and Blue Economy.
• On FTA: FICCI’s Perception Survey demolished the myth that Business does not want a BIMSTEC FTA. In fact, it does and its representatives said so clearly. Let me quote, “The Survey gives a clear vote in favour of early finalization of BIMSTEC trade facilitation agreement. An overwhelming percentage of respondents (94%) have voted in favour of speedy conclusion of BIMSTEC Free Trade Agreement.” So, at a time when media is talking India’s FTAs with Australia, UK and EU, the silence on BIMSTEC FTA seems deafening. Each member-government’s thinking or position needs to be spelt out and someone needs to take responsibility for the continuing delay and impasse.
• It was also suggested that the BIMSTEC Secretariat can assist industry and businesses through the creation of platforms for business exchange and capacity building.
• There is a need to create, develop and publicize the ‘BIMSTEC Brand’.
• Imperative for finalizing a scheme for the ‘BIMSTEC Visa’.
• A fellow scholar, Amit Bhandari at Gateway House, in ‘The next battle in the Bay of Bengal’, has suggested encouraging India’s vibrant startup sector, with 30 startups already crossing the $1 billion valuation mark in 2021, to take more interest in the neighbouring countries. His suggestion of a ‘Bay of Bengal venture fund’, ‘seeded with capital from local governments but without government control’, can greatly improve regional financial and digital connectivity. This merits serious consideration.

Conclusion

• Since the last summit in August 2018, critics say that BIMSTEC has been in suspended animation. We know that it has been engaged in deep internal preparations, but now it is time to conclude them quickly and convene the 5^th summit at the earliest. Officials should indicate the current position.
• This is also the time to be inclusive by engaging with those constituencies that are unfortunately not represented here.
• BIMSTEC is everyone’s affair in the region, for it is meant to serve the interests of the region as a whole.

Ambassador Rajiv Bhatia is Distinguished Fellow, Foreign Policy Studies Programme, Gateway House.

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