BIMSTEC after Colombo summit

The fifth summit of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), a regional grouping held virtually in Colombo on 30 March, has undoubtedly furthered the cause of regional cooperation and integration. But the grouping consisting of five South Asian countries and two Southeast Asian countries needs an unbiased look, especially as it celebrates its 25th anniversary in June this year. The member-states are: Bangladesh, Bhutan, India, Nepal, Sri Lanka and Myanmar and Thailand.

BIMSTEC is no longer just an initiative or programme. The question is whether it is now capable of meeting the challenges faced by the sector. Representing a fifth of the world’s population that contributes only 4% of global GDP, can this multilateral grouping drive accelerated economic growth?

Colombo Package

It was clear that BIMSTEC first needed to reinvent itself by redefining its objective and rejuvenating its organs and institutions. The much needed process was initiated at the Leaders Retreat convened by India in 2016. Thanks to the outcome of a forward-looking summit held in Kathmandu in 2018, it gained momentum. The final result is now seen in the package of decisions and agreements announced at the latest summit.

The package includes, first of all, the charter of the group. Formally adopted, it presents BIMSTEC as “an intergovernmental organization” with “legal personality”. Defining the objectives of BIMSTEC, it lists 11 items in the first article. Among them is the acceleration of “economic development and social progress in the Bay of Bengal region” and the promotion of “multi-faceted connectivity”. The group no longer sees itself as a sub-regional organization but as a regional organization whose fate is linked to the region around the Bay of Bengal.

The second element is the decision to reorganize and reduce the number of areas of cooperation from 14 to a more manageable seven. Each member-state will act as the lead for one of the regions: trade, investment and development (Bangladesh); Environment and Climate Change (Bhutan); Security including energy (India); Agriculture and Food Security (Myanmar); people-to-people contact (Nepal); Science, Technology and Innovation (Sri Lanka), and Connectivity (Thailand).

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Third, the summit participants adopted the Master Plan for Transport Connectivity implemented for 2018-2028. This approval was delayed, but its significance lies in the highest level of political support given to this ambitious plan. It was designed and supported by the Asian Development Bank (ADB). It lists 264 projects with a total investment of $126 billion. Projects worth $55 billion are being implemented. BIMSTEC needs to mobilize additional funds and give thrust for timely implementation of projects. Lastly, the package also includes three new agreements signed by member states on mutual legal assistance in criminal matters, cooperation between diplomatic academies and the establishment of a technology transfer facility in Colombo.

business pillar needs support

After Colombo, a quick look at the unfinished tasks and new challenges gives an idea of ​​the burden of responsibilities on the group. The pillars of trade, economic and investment cooperation need to be increased stronger and faster.

Despite the signing of a framework agreement for a Comprehensive Free Trade Agreement (FTA) in 2004, BIMSTEC is far from this target. Of the seven constituent agreements required for an FTA, only two have taken place so far. The general formulation of the Colombo Declaration gives little confidence about the prospects for speedy progress. The need for expanding connectivity has been emphasized by all, but much work remains unfinished when it comes to finalizing legal means for coastal shipping, road transport and inter-regional energy grid connections. On the positive side, however, there is a need to mention the rapid success achieved in deepening cooperation in security matters and management of Humanitarian Assistance and Disaster Relief (HADR). Since security and economic growth are intertwined, it is essential to ensure an equal balance between the two pillars.

The leaders’ statements at the summit gave important clues about how to tackle the challenges. Nepalese Prime Minister Sher Bahadur Deuba emphasized in the most candid speech that “with less than a decade left, our region is not on track to achieve any of the Sustainable Development Goals by 2030”. He added that the COVID-19 pandemic “has made our development effort more difficult”. Thailand’s Prime Minister (and Defense Minister) General Prayut Chan-o-cha expressed his resolve to work for ‘a prosperous, resilient and strong, and open (PRO) BIMSTEC’ during his tenure as the new chairman. As a co-founder and key driver, Thailand can contribute greatly, provided it has adequate institutional and political resources.

It was left to Prime Minister Narendra Modi to offer a range of practical suggestions to strengthen the group. India was the only country that offered additional funding to the Secretariat and supported the Secretary-General’s proposal to set up an Eminent Persons Group (EPG) to prepare a vision document. Other countries need to emulate this honest match of words with action.

Governments showed considerable creativity by agreeing to limit Myanmar’s participation in the summit to the level of Foreign Minister. This averted a diplomatic dispute. Until the political situation there returns to normal, Thailand and India will need to be smart in managing Myanmar’s relations. BIMSTEC should in future focus more on promoting exchanges and links between new sectors such as blue economy, digital economy, and start-ups and micro, small and medium enterprises (MSMEs). In addition, there are three more suggestions to consider.

personal touch

First, the personal engagement of the political leadership should be increased. The decision to host a summit every two years in Colombo is welcome when implemented. But in the medium term, an annual summit should be the goal, with an informal retreat in its schedule.

Second, BIMSTEC needs greater visibility. India’s turn to host the G20 leaders’ summit in 2023 presents a golden opportunity which can be better leveraged. Perhaps all its members should be invited to the G20 summit as special guests of the President.

Lastly, the suggestion to simplify the group name needs immediate attention. The current name which was running at 12 words should be changed to just four words – Bay of Bengal Community (BOBC). This will help the institute a lot. Abbreviation refers to gravity.

Rajeev Bhatia is Distinguished Fellow at Gateway House and former Ambassador to Myanmar