Hi! BIMSTEC, Bye! SAARC

Prof. M. K. Bhat

Prime Minister Narendra Modi in his second term emphasized his governments look East policy by inviting the Bay of Bengal Initiative for Multi Sectoral Technical and Economic Cooperation (BIMSTEC) leaders in his oath taking ceremony. This was in contrast to the 2014 oath taking ceremony when SAARC leaders were invited. (BIMSTEC comprises of Bangladesh, India, Myanmar, Sri Lanka, Thailand, Nepal and Bhutan) The common thing at both these occasions has been the stress on neighborhood first policy. Narendra Modi chose Maldives for his first visit outside India. The latter conferred on him its highest civilian award and the two countries signed agreements on trade in hydrology, health, energy and cargo services by sea etc.
The shift in India’s foreign policy from west to east became mandatory because of the arrogance of Pakistan among SAARC countries. The attitude of Pakistan has been a big block for good trade and other relations among SAARC countries. It not only weakened SAARC but also paved the way for the emergence of BIMSTEC. India has made it clear umpteen times that trade and terror cannot go together but Pakistan hardly changed its course of action. India had even unilaterally given most favored status to Pakistan and the latter did not reciprocate rather continued with its thousand cut policy to India. It gave Uri, Pathankot, Pulwama etc attacks in lieu of most favored nations (MFN) treatment. Its attitude with other SAARC countries like Afghanistan, Bangladesh, Nepal, and Sri Lanka etc was more or less on similar lines. India came under pressure to think that enough is enough so it tried to isolate Pakistan after Uri attack by boycotting SAARC summit in 2016. After Pulwama attack, it had to withdraw MFN treatment to Pakistan.
BIMSTEC is SAARC minus Pakistan and Afghanistan. All the BIMSTEC countries have been victims of Pakistan based terrorism and bear more or less common socio economic problems. These countries have common social values, which can strengthen their relation and may help them to fight, poverty, unemployment etc. BIMSTEC countries support to India in boycotting SAARC Summit 2016 was a strong message to Pakistan to desist from its anti neighbourhood policies which it never heeded. India’s relations with all its neighbors excluding Pakistan and including Afghanistan are cordial.
This shift of foreign policy will not only increase India’s influence in the Bay of Bengal but will also go a long way in containing the growing influence of China in this region. China has made much investment in the development of infrastructure in almost all BIMSTEC countries except Bhutan and India. At the domestic level, it is expected to write a story of prosperity for the North East states of the country by being terminal points for foreign trade with BIMSTEC countries. It will increase their business and may also help to integrate the region with the socioeconomic development of the country. It also addresses the public sentiments of India in a better way as people do not like to see their Army Jawans being killed by the country which enjoys most favoured nations treatment from India.
BIMSTEC got its birth on June 6, 1997 through Bangkok declaration, brings together 1.5bn people i.e. 21percent of the world population and a combined GDP of over US$ 2.5 trillion. Bay of Bengal is the largest bay in the world. It is the route for 25% of the world trade. The intra regional trade under SAARC was just 5% while as according to a report of FICCI intra-regional trade among BIMSTEC countries was about $40.5 billion in 2016 (about 6 per cent) with India having 50 per cent share ($21 billion). FICCI report endorses BIMSTEC as the most active trade-driven regional bloc of the world in terms of huge export and import statistics.
The growth rate of these countries has been quite high from last two decades. The relationship with these countries will not only help to increase India’s trade and connectivity but may also revive India’s ancient ties with this region depicted by the spread of Hinduism and Buddhism. The Buddhist circuit connecting nations like Myanmar, Thailand, Bhutan, Nepal and Sri Lanka will contribute in deepening the cultural ties among the BIMSTEC nations. It can escalate religious tourism among the countries of the region. It will boost India’s blue economy, may galvanise upon the cost-effectiveness of maritime routes, in both national and sub-regional contexts.
The transport of goods and vehicles at low cost through BIMSTEC countries will be a big catalyst for the economic development of the region. India’s boundary connection with Myanmar can connect it to south East Asia. Kaladon Multi Model project, signed in 2008 seeks to link India and Myanmar. It will connect Kolkatta to Sittwe port in Myanmar and then Mizoram by river and road. Asian Trilateral Highway will connect India and Thailand through Myanmar. The highway will run from Moreh in Manipur to Mae Sot in Thailand via Myanmar. The Bangladesh, Bhutan, India, Nepal (BBIN) Pact for movement of goods between Bangladesh and India has started though clearance from certain countries is still awaited. Pakistan opted out of SAARC Motor vehicles agreement and the agreement failed, this compelled India to go for BBIN.
BIMSTEC is going to be a potent force as compared to SAARC as the latter was mostly plagued by the internal conflicts of India and Pakistan. The former lends itself to regional integration, physical connectivity and economic cooperation. It has grown as an amicable alternative to SAARC. BIMSTEC will not only help India to access South East Asia but the 45 million people of north east states will get connected through Bay of Bengal to Bangladesh, Myanmar and Thailand. The same will be the case with about 300 million people living in the coastal states of Andhra Pradesh, Orissa, Tamil Nadu and West Bengal. Many new ports and roads will come into existence. The proximity and low transport cost will provide India an edge over other trading countries in the region. The economic cooperation among member nations in the region have ample scope of business in technology, transport, communications, energy, tourism, agriculture, fisheries and human resources development etc.
In order to make BIMSTEC a strong regional group, the member countries must think of extending most favoured nations treatment to each other. They must improve physical and digital connectivity by building ports, economic corridors etc. It must think of promoting people to people relations. Investment among member countries shall increase. The BIMSTEC countries need to adhere to the basic principles of Sovereignty, Equality, Territorial Integrity, Political Independence, No interference in Internal Affairs, Peaceful Coexistence and Mutual Benefit to avoid SAARC like situation
India being the major power in the region has to take lead for making this group viable and economically strong. The group bears economic, social and strategic importance for the country. India shall give most favoured treatment to more members of the group initially and extend the same to all members in due course of time. It shall take every member along, with due respect to its individual identity.
(The author is Director (M.A.I.M.S)
Guru Gobind Singh Indraprastha
University, Delhi)
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