BIMSTEC coming of age?
Friday, 3 April 2009
Abu Yusuf Helali
A summit meeting of the BIMSTEC (The Bay of Bengal Initiative for Multisectoral Technical and Economic Cooperation), was held in New Delhi towards the end of last year. Founded in 1997, initially BIMSTEC had four member countries, which have expanded to seven. The group comprises Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal.
The last summit decided to have its permanent headquarters at Bangkok, now housing its temporary secretariat. If done, it will be a notable progress of for the over-a-decade-old grouping. A permanent secretariat should signify its coming of age. It would be a commitment of its members to realise the agreed objectives.
The last summit discussed the issue of BIMSTEC free trading agreement (FTA) for boosting trade and investments for mutual benefits of its members. Existing trade as well as investment in the BIMSTEC area is negligible.
The member countries ought to be proactive to exploit the potentials to boost the intra-regional trade. Beside boosting intra-regional trade, the grouping can be an alternative to trade expansion in traditional markets in Europe and North America facing uncertainties due to the on-going financial and economic crisis.
The existing intra-regional trade turnover in BIMSTEC is only a small fraction of the total trade of its member countries. Unlike other regional organisations the intra-regional trade and investment of the BIMSTEC countries is not much. It goes to show that there is considerable potential for expansion of trade and investment in this region. BIMSTEC brings together 1.3 billion people or 21 per cent of the world population, a combined GDP of US$ 750 billion, and a considerable amount of complementarities. A study shows that BIMSTEC has the potential to create trade worth US $43 to 59 billion with an FTA in place.
The 'Look West' policy of Thailand and ASEAN and the 'Look East' policy of India and South Asia gave birth to BIMSTEC. BIMSTEC can, therefore, be explained as a bridge between the Association of South East Asian Nations (ASEAN) and South Asian Association for Regional Cooperation (SAARC). The Asian Development Bank (ADB) actively supports a BIMSTEC proposal to build a highway from Kolkata to Bangkok to promote intra-regional trade and economic cooperation.
BIMSTEC identified 13 priority sectors of cooperation of trade and investment, technology, energy, transport and communication, tourism, fisheries, agriculture, cultural cooperation, environment and disaster management, public health, people-to-people contract, poverty alleviation and counter-terrorism and transnational crimes. BIMSTEC represents one of the most diverse regions of the world, be it, way of life, religion, language, culture, etc. BIMSTEC focuses only on economic cooperation. Hence, it needs strengthening to serve the common interests of its member-countries.
A summit meeting of the BIMSTEC (The Bay of Bengal Initiative for Multisectoral Technical and Economic Cooperation), was held in New Delhi towards the end of last year. Founded in 1997, initially BIMSTEC had four member countries, which have expanded to seven. The group comprises Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal.
The last summit decided to have its permanent headquarters at Bangkok, now housing its temporary secretariat. If done, it will be a notable progress of for the over-a-decade-old grouping. A permanent secretariat should signify its coming of age. It would be a commitment of its members to realise the agreed objectives.
The last summit discussed the issue of BIMSTEC free trading agreement (FTA) for boosting trade and investments for mutual benefits of its members. Existing trade as well as investment in the BIMSTEC area is negligible.
The member countries ought to be proactive to exploit the potentials to boost the intra-regional trade. Beside boosting intra-regional trade, the grouping can be an alternative to trade expansion in traditional markets in Europe and North America facing uncertainties due to the on-going financial and economic crisis.
The existing intra-regional trade turnover in BIMSTEC is only a small fraction of the total trade of its member countries. Unlike other regional organisations the intra-regional trade and investment of the BIMSTEC countries is not much. It goes to show that there is considerable potential for expansion of trade and investment in this region. BIMSTEC brings together 1.3 billion people or 21 per cent of the world population, a combined GDP of US$ 750 billion, and a considerable amount of complementarities. A study shows that BIMSTEC has the potential to create trade worth US $43 to 59 billion with an FTA in place.
The 'Look West' policy of Thailand and ASEAN and the 'Look East' policy of India and South Asia gave birth to BIMSTEC. BIMSTEC can, therefore, be explained as a bridge between the Association of South East Asian Nations (ASEAN) and South Asian Association for Regional Cooperation (SAARC). The Asian Development Bank (ADB) actively supports a BIMSTEC proposal to build a highway from Kolkata to Bangkok to promote intra-regional trade and economic cooperation.
BIMSTEC identified 13 priority sectors of cooperation of trade and investment, technology, energy, transport and communication, tourism, fisheries, agriculture, cultural cooperation, environment and disaster management, public health, people-to-people contract, poverty alleviation and counter-terrorism and transnational crimes. BIMSTEC represents one of the most diverse regions of the world, be it, way of life, religion, language, culture, etc. BIMSTEC focuses only on economic cooperation. Hence, it needs strengthening to serve the common interests of its member-countries.