What is the issue?
- Bolstering physical, digital, financial, and people to people connectivity between the 7-nation BIMSTEC is key for South Asia’s progress.
- This is in line with the larger picture of India’s trans-national and sub-regional initiatives for enhancing development, peace and stability.
What is BIMSTEC?
- Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) was established in 1997.
- It was a group of 7 littoral countries encircling the Bay of Bengal namely - Bangladesh, Bhutan, India, Nepal, Sri Lanka, Myanmar and Thailand.
- Notably, BIMSTEC has 5 members from SAARC and 2 from ASEAN and can potentially act as a bridge between the two.
What is the significance?
- In the India context, BIMSTEC stands at the very important intersection of ‘Neighbourhood First’ and ‘Act East Policy’.
- While BIMSTEC has come a very long way since its establishment, the present geo-political scenario calls for enhancing its scope and engagements further.
- Despite its strategic significance and potential, the region remains one that is poorly inter-connected – which needs to be worked upon.
- BIMSTEC therefore presents immense opportunities for growth and development and has particular benefits for 7 north-eastern states.
What are the organisational reforms needed?
- The 2016 Goa summit of the BIMSTEC (in collaboration with BRICS), and the subsequent regional business congregations have set the tone for the future.
- The mission is to evolve a comprehensive vision for fresh, knowledge-intensive, academic, policy and industry space over the next decade.
- Strengthening BIMSTEC Secretariat and enhancing government-to-business interface have been suggested.
- Also, creation of a BIMSTEC fund has been mooted.
What are reforms needed for facilitating businesses?
- Lack of connectivity and timely availability of business information are greatest hindrances to closer economic engagement.
- Multimodal connectivity and a speedy conclusion of the BIMSTEC FTA would have a multiplier effect on trade and investment.
- Creating regional value chains that could feed into global value chains are vital for business integration.
- The prospects for MSMEs are massive and these need to be augmented by encouraging competitiveness, employment generation and inclusive growth.
- Integration of women entrepreneurs into supply chains and building innovative business models for women are essential.
- However, the most important need is the strengthening of all modes of connectivity: physical, digital, financial and people to people.
What is the way ahead?
- On a backdrop of shared history, new connections have to be forged between students, entrepreneurs, artists, and elected representatives.
- In addition, it is important to pay attention to the role of the media as an opinion shaper and influencer.
- BIMSTEC holds catalytic potential to transform economies of member states and create a peaceful, prosperous and integrated neighbourhood.
- The road from potential to reality will be successfully traversed only when all actors and stakeholders come together actively for the cause.
Source: Business Line
