Significance of BIMSTEC

Why in news?

The Bay of Bengal Initiative for Multisectoral Technical and Economic Cooperation (BIMSTEC) summit is to be held in Kathmandu.

Why is BIMSTEC significant to India?

• SAARC - A key factor is the stagnation of South Asian Association for Regional Cooperation.
• At the SAARC Summit in Kathmandu, in 2014, India proposed the SAARC Motor Vehicles Agreement.
• This could not progress due to resistance from Pakistan.
• This compelled Bangladesh, Bhutan, India, and Nepal (BBIN) to sign the BBIN Motor Vehicles Agreement in 2015.
• Pakistan also opted out of the ambitious SAARC Satellite project proposed by India.
• This led to a change in its name to the South Asia Satellite.
• Alternative - SAARC's stagnation has limited the scope of India’s growing economic aspirations.
• It has also restricted the role it could play in improving regional governance.
• These have driven India to reach out to its BIMSTEC neighbours as a viable alternative.
• But India has not stopped from revitalising the SAARC grouping when opportunities emerged.
• India’s interest in BIMSTEC is also seen as part of its strategy to isolate Pakistan.
• Power - BIMSTEC has emerged as a key vehicle to take forward India’s regional, strategic and economic interests.
• It is in India's interests to ensure that the region does not lag behind.
• BIMSTEC would be instrumental in ensuring that an unstable neighbourhood (Pakistan) does not impede growth.
• India’s desire to link South Asia to the economically dynamic Southeast Asia is also part of this strategy.
• It reassures South Asia that the region can work together, with India playing its due role.

What are the challenges?

• India is expected to face challenges from both within and outside, in terms of policy dilemmas.
• Contribution - India is currently the largest contributor to the BIMSTEC secretariat’s budget.
• Its annual contribution was Rs. 2 crore (32% of the total secretariat budget) for 2017-18.
• The secretariat plans to strengthen its capacity by increasing human resources and number of officials representing each member state.
• Given this, India may need to consider allocating more resources.
• India’s generosity would be a key test of its commitment to the sub-regional grouping.
• Supremacy - India would have to counter the impression that BIMSTEC is an India-dominated bloc.
• This is also a problem that it faced for a long time in SAARC.
• But today, many smaller neighbours are willing to engage with India to benefit from its economic rise.
• Nonetheless, for internal political reasons, the dominance issue may re-emerge and pose hurdles.
• To moderate such suspicions, India will need to show sensitivity to the concerns of smaller neighbours.
• China - China has long desired to be a part of the SAARC grouping.
• It has observer status in SAARC, which only increases demands for it membership.
• Some countries have their own interests in bringing China as they look to balance India’s dominance.
• Most of these challenges for SAARC can potentially re-emerge in BIMSTEC as well.
• So India will have to carefully handle the emerging regional geopolitics.

Source: The Hindu