Since ancient times, regional partnerships have driven growth all over the world and brought prosperity. In today’s times also, we have witnessed how Indian foreign policy has engaged with trans-regional, regional and sub-regional initiatives to nurture shared goals of regional stability and development.
BIMSTEC – What it stands for
We are around one month away from marking the 21st anniversary of the establishment of BIMSTEC - Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation. In this timeframe, this regional grouping has come a very long way. Though the desired level of collaboration has evaded the organisation so far, escalating pressures in the neighbourhood of South Asia and South-East Asia have renewed pragmatic hope for stronger ties between BIMSTEC member states. For India BIMSTEC stands at the very important intersection of ‘Neighbourhood First’ and ‘Act East Policy’. Encompassing seven member States — five stemming from South Asia (Bangladesh, Bhutan, India, Nepal, Sri Lanka) and two from South-East Asia (Myanmar and Thailand) lying in the largest bay in the world — the Bay of Bengal, BIMSTEC demonstrates regional unity as well as contiguity.
But BIMSTEC is also one of the least integrated regions of the world. Herein lies the opportunity. Renewed foreign policy and strategic focus signalled by the 2016 BRICS-BIMSTEC Outreach Summit in Goa and several that followed provides timely encouragement for the private sector to articulate a proactive engagement strategy. For India specifically, BIMSTEC could also enable integration and economic development of the North-East region.
Reinvigorating BIMSTEC
Accordingly, in alignment with the Indian foreign policy focus on BIMSTEC, FICCI convened a Core Group on BIMSTEC in 2017. The mission of the Group was to initiate a fresh, knowledge-intensive exercise that brought together some of the best minds in Indian academic, policy and industry space and to evolve a comprehensive vision for the next decade.
The resulting knowledge paper ‘Reinvigorating BIMSTEC, An Industry Vision for the Next Decade’ laid out powerful recommendations including creation of a BIMSTEC fund, strengthening of BIMSTEC Secretariat as well as improving government-to-business interface in the functioning of BIMSTEC. The enthusiasm of Indian industry to engage deeply with the member countries through the multilateral framework was reflected in a perception survey and a stakeholder consultation in the North-East conducted by FICCI that captured sentiment and identified specific interventions required to make BIMSTEC an effective economic mechanism for cooperation.
1. The survey identified lack of connectivity and timely availability of business information as the greatest hindrance to closer economic engagement. The survey finds that multimodal connectivity and a speedy conclusion of the BIMSTEC FTA along with an effective energy sharing mechanism would have a multiplier effect on trade and investment.
2. The need to create regional value chains that could feed into global value chains has been highlighted as a factor that would help BIMSTEC member states take advantage of their collective capabilities. The prospects for Micro, Small and Medium Enterprises (MSMEs) in global value chains are colossal. This process can augment MSME competitiveness, generate employment and encourage inclusive growth in BIMSTEC countries
3. Integration of women entrepreneurs into supply chains and building innovative business models for women has been highlighted too
However, the single most important factor that weaves like a common thread is the overwhelming vote in favour of strengthening all modes of connectivity: physical, digital, financial and people to people.
Way Ahead
On a backdrop of shared history, new and fresh connections have to be forged between students and young entrepreneurs, youth icons, cultural and literary role models and elected representatives. Building Brand BIMSTEC by identifying such brand ambassadors would build soft power equity. In addition, it is important to pay attention to the role of the media as an opinion shaper and influencer.
In conclusion, 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 to play their role well to achieve a shared dream for peace, stability and prosperity for this dynamic region.
The writer is President of FICCI