The economic prospects of BIMSTEC

A new sub-regional grouping was formed on June 06, 1997 in Bangkok and christened as Bangladesh, India, Sri Lanka, and Thailand Economic Cooperation (BISTEC). Myanmar attended the inaugural meeting as an observer and joined the organisation as a full member at a special ministerial meeting held in Bangkok on December 22, 1997, upon which the name of the grouping was changed to BIMSTEC. Nepal was granted observer status by the second ministerial meeting held in Dhaka in December 1998. Subsequently, full membership was granted to Nepal and Bhutan in 2003. Nepal formally joined BIMSTEC on February 08, 2004. In the first summit held on July 31, 2004, leaders of the group agreed that the name of the grouping should remain the same as BIMSTEC, but with a different full form: Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation comprising Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand.  
According to the Bangkok Declaration on the establishment of the BISTEC, the aims and purposes of BISTEC/BIMSTEC were to: (i) create an enabling environment for rapid economic development, (ii) accelerate social progress in the sub-region, (iii) promote active collaboration and mutual assistance on matters of common interest, (iv) provide assistance to each other in the form of training and research facilities, (v) cooperate more effectively in joint efforts that are supportive of, and complementary to, national development plans of member states, (vi) maintain close and beneficial cooperation with existing international and regional organisations, and (vii) cooperate in projects that can be dealt with most productively on a sub-regional basis and which make best use of available synergies.
The seven members of the BIMSTEC have 14 priority sectors cover all areas of cooperation led by member- countries in a voluntary manner. They include the following: (i) trade and investment, and (ii) climate change, led by Bangladesh; (iii) tourism, (iv) transport and communication, (v) counter-terrorism and transnational crime, (vi) environment and natural disaster management, led by India; (vii) energy, (viii) agriculture, led by Myanmar; (ix) technology, led by Sri Lanka; (x) public health, (xi) fisheries, (xii) people-to- people contact, led by Thailand; (xiii) poverty alleviation, led by Nepal; (xvi) culture, led by Bhutan.  
The BIMSTEC was initiated with the goal of combining the 'Look West' policy of Thailand and the Association of Southeast Asian Nations (ASEAN) with the 'Look East' policy of Bangladesh and India. So BIMSTEC can be explained as a link between the ASEAN and the South Asian Association for Regional Cooperation (SAARC). What makes the BIMSTEC different from other organisations is that it represents one of the most diverse regions of the world, be it the way of life, religion, language, or culture. The BIMSTEC provides a unique link between South Asia and Southeast Asia bringing together 1.5 billion people - 22 per cent of the world population, a combined Gross Domestic Product (GDP) of around US$2.5 trillion economy, and a considerable amount of complementarities and 3.64 per cent of surface area of the globe. A study shows the potential of US$ 43 to 59 billion trade creation under the BIMSTEC Free Trade Agreement (FTA).
The BIMSTEC has Trade Negotiating Committee (BIMTEC TNC). The TNC is now working on the list of goods regarding the framework agreement that was signed in 2004. So far, the BIMSTEC has been working on the FTA (free-trade area) and looking forward to finalise an agreement soon.
The BIMSTEC consists of five countries of South Asia and two of Southeast Asia at the rim of the Bay of Bengal. It is an attempt to tap the synergies of land and maritime contiguity in yet another geo-economic setting. This grouping, comprising 1.5 billion people, can eventually pave the way for a larger Asian community and make the 21st century the Century of Asia.
The SAARC was also launched for the purpose of regional cooperation. But it could not deliver the expected results due to the mutually hostile attitude of India and Pakistan. A necessity was, however, being felt to enhance trade links among the countries. Except Pakistan, Afghanistan and the Maldives, all other SAARC members have been included in the BIMSTEC. Countries seeking membership should satisfy the conditions of territorial contiguity to, or direct opening into, or primary dependence on the Bay of Bengal for trade and transportation purposes that possibly rules out the possibility of inclusion of the SAARC countries like Pakistan, Afghanistan and the Maldives within the group. All applications should be submitted in writing to the Chairman of the BIMSTEC. The decision on admitting new members will be taken on the basis of consensus by all the BIMSTEC members.
The BIMSTEC agreement aimed to create a free trade zone where tariffs would be brought down to zero by 2012, with Bangladesh and Myanmar, the two least developed countries of the forum, given extra time to drop their tariff rates to zero level by the year 2017. This agreement opens new vistas for economic and commercial links among the member-countries. It highlights the necessity of interdependence among member-nations in the presently fast globalised economy of the world. The BIMSTEC would facilitate improvement in trade at institutional and people's levels. Most of the member countries are suffering from the menace of corruption, so the trade links at institutional and private level will positively result in enhanced trade links.       
The reasons of failure of the SAARC could result in the success of the BIMSTEC, as most of the members of the SAARC, except Pakistan, Afghanistan and the Maldives are included in it. The members of the BIMSTEC realise well that to benefit mutually in emerging globalisation, they are to support and cooperate with each other whole heartedly. It is a fact that economic prosperity is a prime requirement for peace and tranquillity in the region. Furthermore, it is important that all the countries should strive not only for economic cooperation, but also for cultural and social links so that more closer and beneficial ties could take place. The BIMSTEC involves the countries of two regions, South and Southeast Asia. With an aim of economic cooperation, exploiting the potentials available in the member nations, it provides a useful platform from political point of view for emerging India.
For the nations of South Asia, BIMSTEC provides an alternative framework for bilateral and multilateral cooperation other than SAARC. The success of the BIMSTEC depends mainly on the sincere and honest cooperation of the member-nations, especially rising India, keeping aside the political differences, if any.
The BIMSTEC obviously raises questions about the failure of the SAARC, since five of the eight SAARC members are members of BIMSTEC.
The writer is a retired Professor of Economics, BCS General Education Cadre.                           [email protected]