BIMSTEC meet to grapple with regional connectivity

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: The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) comprising Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand accounts for 21% of the world population. Despite this, intra-BIMSTEC trade is fairly low. The reasons are primarily that of connectivity, transport and infrastructure and these are some of the issues that the member countries need to focus on during the forthcoming meeting in New Delhi.

In fact, recognising that different modes of transport linkages are imperative for achieving connectivity amongst member countries to promote the movement of goods and people, the member countries are now awaiting the ADB study on BIMSTEC transport infrastructure and logistics.

In this context, for the ADB to carry out its study, it worked closely with governments of BIMSTEC member countries. “We noted the various activities initiated in this sector, including capacity building through training programmes. We emphasised the need for more vigorous efforts for cooperation in the area of infrastructure including communication and port linkages,” said senior officers in the government.

The BIMSTEC region agreed on the transport and logistics policy framework and strategies during their second technical advisory committee meeting held in Bangkok, Thailand in November last. Connectivity, particularly multi-modal connectivity, is a big issue within BIMSTEC as the trade amongst the countries is not going up.

Says the ambassador of India, BIMSTEC working group chair, Latha Reddy, “Issues such as greater connectivity, energy security, increased trade and investment, agriculture, tourism, environment, technology cooperation and security are all among the focus areas of active ongoing cooperation under the BIMSTEC framework. Many of these issues are interlinked and progress in all these areas would directly benefit the peoples of all our countries. It is a win-win situation. Serious beginnings have been made and we look forward to a rapid realisation of our goals.”

The transport and logistics policy framework and strategies aim to address the transport bottlenecks and constraints and pursue priority initiatives on intra-BIMSTEC road development, railway system harmonisation and connectivity, development of BIMSTEC gateway ports and airports, formulation of transport agreements and facilitation measures, and implementation of the logistics action plan. The BIMSTEC representatives have further proposed to carry out the transport cooperation programme for greater physical connectivity and efficient transport and trade flows within 2008–2020, with priority projects and activities initiated from 2008 to 2014.

Issues such as greater connectivity, energy security, increased trade and investment, agriculture, tourism, environment, technology cooperation and security are all among the focus areas of active ongoing cooperation under the BIMSTEC framework.

“Our ministers and senior officials are due to meet in New Delhi later this week to discuss a whole range of issues. Increased transport linkages which will benefit business, tourism and people-to-people contacts; trade facilitation through a possible FTA; cooperation in the fields of energy; tourism; counter-terrorism and the establishment of a permanent secretariat are among some of the issues that are likely to come up for discussion,” said government officials.

Later this year, New Delhi will also host the second BIMSTEC summit. This would be another important milestone in providing direction to the future work of BIMSTEC as senior political leaders will meet here.

The second BIMSTEC summit, was earlier scheduled for February 2007, but was postponed on Dhaka’s request in view of the volatile political situation prevailing in Bangladesh then.

“The summit was deferred as member states agreed that political instability in Bangladesh and Nepal would be a major impediment to adding an impetus to regional cooperation as desired,” the official said.The second summit of top leaders of the seven nations—Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand—will focus on establishing an energy centre for power-grid connectivity among member states for sharing electricity.

According to an RIS study released in July 2008, Bangladesh can earn hefty revenue (over $1 billion per annum) as transit fees from Indian vehicles plying to and from India’s north-eastern region (NER) to the rest of India using Bangladeshi soil using the two corridors. The amount may rise if other corridors between India and Bangladesh are also counted. Similarly, transit arrangement between India, Pakistan and Afghanistan will fetch a hefty royalty to Pakistan for movement of vehicles between India and Afghanistan using Pakistani soil.

Over the past eleven years, BIMSTEC has grown into a viable organisation and played a significant role as a bridge between south-east Asian and south Asian countries. BIMSTEC brings together 1.3 billion people —21 % of the world population, a combined GDP of $750 billion, and a considerable amount of complementarities.