Moving BIMSTEC into action
Friday, 14 November 2008
CHIEF Adviser (CA) Dr Fakhruddin Ahmed is now in New Delhi to attend the summit meeting of BIMSTEC( The Bay of Bengal Initiative for Multi-sectoral Technical and Economic Cooperation). Founded in 1997, it started off with four countries which have expanded to seven. The member-countries of this group are: Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal. The summit is expected to preside over significant developments in the history of this regional cooperation body. It presently has only a temporary secretariat in Bangkok and a decision is likely in the present summit to set up its permanent secretariat. If this is done, then it will mark a notable progress of this grouping which has had a little over a decade of existence. The establishment of its permanent secretariat would signify its coming of age and the commitment of its members to carry its journey forward to realise the agreed objectives.
The present BIMSTEC summit is also likely to address effectively the issue of opening up wider trade opportunities in this region with the aim of boosting trade and investments for mutual benefits of its members. Presently, trading and investments in the BIMSTEC area, are very small compared to the potential. The member-countries ought to be proactive to change the situation as there are good possibilities to boost the regional trade. Not only this would be helpful for the regional enterprises, the same can be an alternative to them when their trade expansion in traditional markets in Europe and North America face uncertainties in the backdrop of the on-going financial and economic crisis in those regions.
So far, the intra-regional trade turnover in BIMSTEC is only about a small percentage of the overall trade of all its member-countries. Typically, regional organisations constitute a large percentage of the trade and investment of all their member-countries but this is not so in the case of the BIMSTEC. This just goes to show that this regional body is yet to prove its real worth as a facilitatory organisation in areas of trade and trade-related investments. There is no denying of considerable potential for expanding the trade and investment in this region. BIMSTEC brings together 1.3 billion people -- 21 per cent of the world population, a combined GDP of US$ 750 billion, and a considerable amount of complementarities. A study shows the potential of US$ 43 to 59 billion trade creation under BIMSTEC with the right kind of a trade cooperation accord in place.
BIMSTEC was initiated with the goal to combine the 'Look West' policy of Thailand and ASEAN with the 'Look East' policy of India and its other South Asian member-countries. So, it could be explained that BIMSTEC is a link between the Association of South East Asian Nations (ASEAN) and the South Asian Association for Regional Cooperation (SAARC). Here, the prospects for greater transportation connectivity merits attention. The multilateral organisations like the Asian Development Bank (ADB) can play the role of catalysts for the purpose. When such developments take place, the possibilities for greater intra-bloc regional trade and economic cooperation would become bright.
In the framework of cooperation that is envisaged by BIMSTEC, thirteen priority sectors, led by its member-countries in a voluntary manner, are covered. These areas include 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. All concerned would expect that the BIMSTEC would make every effort, with the political support of the leaders of its member-countries, to translate its promises of cooperation into areas of some tangible actions in a win-win situation for all its members. BIMSTEC clearly separates issues of development into 13 priority sectors, besides focusing only on economic cooperation. This which makes it covering all aspects regarding the word, 'developing'. In this context, if this regional cooperation body can really set the pace for operationalisation of some concrete measures for effective collaboration in its envisaged fields, it can become a good example of South-South cooperation.
The present BIMSTEC summit is also likely to address effectively the issue of opening up wider trade opportunities in this region with the aim of boosting trade and investments for mutual benefits of its members. Presently, trading and investments in the BIMSTEC area, are very small compared to the potential. The member-countries ought to be proactive to change the situation as there are good possibilities to boost the regional trade. Not only this would be helpful for the regional enterprises, the same can be an alternative to them when their trade expansion in traditional markets in Europe and North America face uncertainties in the backdrop of the on-going financial and economic crisis in those regions.
So far, the intra-regional trade turnover in BIMSTEC is only about a small percentage of the overall trade of all its member-countries. Typically, regional organisations constitute a large percentage of the trade and investment of all their member-countries but this is not so in the case of the BIMSTEC. This just goes to show that this regional body is yet to prove its real worth as a facilitatory organisation in areas of trade and trade-related investments. There is no denying of considerable potential for expanding the trade and investment in this region. BIMSTEC brings together 1.3 billion people -- 21 per cent of the world population, a combined GDP of US$ 750 billion, and a considerable amount of complementarities. A study shows the potential of US$ 43 to 59 billion trade creation under BIMSTEC with the right kind of a trade cooperation accord in place.
BIMSTEC was initiated with the goal to combine the 'Look West' policy of Thailand and ASEAN with the 'Look East' policy of India and its other South Asian member-countries. So, it could be explained that BIMSTEC is a link between the Association of South East Asian Nations (ASEAN) and the South Asian Association for Regional Cooperation (SAARC). Here, the prospects for greater transportation connectivity merits attention. The multilateral organisations like the Asian Development Bank (ADB) can play the role of catalysts for the purpose. When such developments take place, the possibilities for greater intra-bloc regional trade and economic cooperation would become bright.
In the framework of cooperation that is envisaged by BIMSTEC, thirteen priority sectors, led by its member-countries in a voluntary manner, are covered. These areas include 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. All concerned would expect that the BIMSTEC would make every effort, with the political support of the leaders of its member-countries, to translate its promises of cooperation into areas of some tangible actions in a win-win situation for all its members. BIMSTEC clearly separates issues of development into 13 priority sectors, besides focusing only on economic cooperation. This which makes it covering all aspects regarding the word, 'developing'. In this context, if this regional cooperation body can really set the pace for operationalisation of some concrete measures for effective collaboration in its envisaged fields, it can become a good example of South-South cooperation.