Syllabus
GS Paper 2 – Important International Institutions, agencies and fora – their Structure, Mandate.
Context
BIMSTEC acquires ‘legal personality’ after charter comes into force
BIMSTEC acquires legal personality
Introduction
The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) has recently undergone a significant transformation. On May 20, it adopted its first-ever charter, marking a historic milestone. This development not only opens the door for new members and observers but also bestows BIMSTEC with a ‘legal personality’. Consequently, it can now engage in structured diplomatic dialogues with other countries and international groupings. This move is expected to enhance BIMSTEC’s role in regional cooperation and integration, fostering economic and technical collaboration among its member states.
About BIMSTEC Charter
- Cooperation Framework: The BIMSTEC Charter serves as a blueprint for cooperation, outlining the long-term goals and priorities of its Member States. It provides a legal and organizational framework for collaboration across various sectors.
- Legal Recognition: The Charter confers legal recognition to BIMSTEC, enabling the admission of new members and observers. It also facilitates the forging of agreements with other nations and organizations.
- Collective Commitment: The adoption and enforcement of the Charter signify the collective commitment of BIMSTEC Member States to promote regional cooperation in key areas.
- Charter Implementation: The Charter was officially adopted at a significant meeting in Sri Lanka on March 30, 2022. Following Nepal’s parliamentary approval in April 2024, all BIMSTEC Member States completed the ratification process, setting the stage for the Charter’s implementation.
About BIMSTEC
- BIMSTEC: The Bay of Bengal Initiative for MultiSectoral Technical and Economic Cooperation (BIMSTEC) is a multilateral regional organization. Its primary objective is to foster shared growth and cooperation among the littoral and adjacent countries in the Bay of Bengal region.
- Members: BIMSTEC comprises seven member countries. Five of these are from South Asia: Bangladesh, Bhutan, India, Nepal, and Sri Lanka. The remaining two, Myanmar and Thailand, are from Southeast Asia.
- Headquarters: The headquarters of BIMSTEC is located in Dhaka, Bangladesh.
- Representation: Collectively, the member countries of BIMSTEC represent nearly 22 percent of the global population and have a combined GDP of USD 3.6 trillion.
- Formation:
- June 1997: BIMSTEC was initially founded as BIST-EC, with the adoption of the Bangkok Declaration. The founding members were Bangladesh, India, Sri Lanka, and Thailand.
- December 1997: With the entry of Myanmar, it was renamed as BIMST-EC (Bangladesh, India, Myanmar, Sri Lanka, and Thailand Economic Cooperation).
- 2004: The organization assumed its current name, BIMSTEC, when Nepal and Bhutan joined as members.
Emergence and revival of regional Integration
- Historical Integration: The Bay of Bengal region was one of the world’s most integrated regions until the early twentieth century.
- Erosion of Regional Integration: Post the 1940s, as the countries in the region gained independence and pursued individual goals and alliances, the region’s sense of community significantly eroded.
- Primary Aim of BIMSTEC: The establishment of BIMSTEC was not intended to create a new region for cooperation. Instead, its primary aim was to revive the connectivity and common interests of the Bay of Bengal region’s members.
- Sector-Driven Organization: Unlike other regional groupings such as SAARC or ASEAN, BIMSTEC is sector-driven. Its goals and areas of cooperation are divided among its members.
- Reorganization of Activities: In 2002, a complete reorganization of cooperation activities was decided upon by the members. This streamlined the activities into seven pillars, as opposed to the previous division into 14 sectors. It was further stated that India would be BIMSTEC’s pillar for security, which includes areas of Counter Terrorism and Transnational Crime (CTTCC), Disaster Management, and Energy.
Working mechanism of BIMSTEC
Policy Making and Operational Goals
- Policy Making: This is accomplished through two types of meetings:
- Summits: These are planned to be held every two years.
- Ministerial Meetings: Annual meetings of Foreign and Commerce Ministers from member countries are held to decide on trade and economic affairs.
- Operational Meetings: To monitor the activities of the grouping, operational meetings of senior officials are supposed to be held twice a year.
BIMSTEC Working Group
- This is a coordinating body with a rotating chairmanship based on which member country chairs the organization. The current Chair of BIMSTEC is Sri Lanka.
- Under this structure, meetings are held monthly at the Dhaka secretariat to review the progress of the regional grouping.
Significance of BIMSTEC
- Regional Population and Economic Power:
- BIMSTEC hosts 22% of the world’s population (1.68 billion people).
- The combined GDP of the member countries amounts to US$3.697 trillion per year.
- Alignment with India’s ‘Act East’ Policy:
- BIMSTEC enhances regional cooperation in Southeast Asia.
- It supports India’s goal to increase its trade and security prominence in the Indian Ocean and Indo-Pacific regions.
- Geopolitical Context:
- BIMSTEC counters China’s growing influence in the Indian Ocean Region through the Belt and Road Initiative (BRI).
- It provides an alternative to SAARC, especially after the 2016 Uri attack which stalled SAARC progress due to Indo-Pak tensions.
- Trade and Security:
- BIMSTEC emphasizes the land and maritime trade potential of member countries.
- It aims to maintain peace and security in the region.
Key Challenges
- Efficiency and Operational Challenges:
- Resource Constraints: BIMSTEC faces inconsistencies in policy-making and operational meetings due to inadequate financial and manpower support.
- India’s Selective Interest: There is criticism over India’s focus on BIMSTEC only when SAARC is hindered by Pakistan.
- Transborder Trade and Connectivity:
- Limited Openness: The 1,600 km India-Myanmar border is one of Asia’s least open.
- Declining Trade: India’s trade with BIMSTEC countries has dropped to 4% of its total foreign trade as of 2020, down from double digits in the 1950s.
- Inter-regional Trade Variations: Trade within BIMSTEC varies based on proximity, trade routes, and economic size. Member countries often import from non-members rather than from each other.
- Absence of Free Trade Agreement:
- BIMSTEC member countries often import goods from non-member countries rather than those manufactured and exported by other members.
- However, they are involved in multiple bilateral and multilateral free trade, preferential trade, and economic cooperation agreements with other countries.
- Maritime Trade and Tourism:
- Underdeveloped Ecosystem: Despite the potential, a shared and lucrative coastal shipment ecosystem has not been developed. Issues like the detention of fishermen crossing territorial borders persist.
- Political and Humanitarian Issues and Regional Tensions:
- Bangladesh-Myanmar Relations: These are strained over the Rohingya refugee crisis.
- India-Nepal Border Dispute: This continues to affect regional dynamics.
- Myanmar’s Political Instability: The military junta’s takeover in February 2021 has added to the complexity.
Way forward
- Enhancing Institutional Capacity: BIMSTEC needs to strengthen its institutional capacity by ensuring regular policy-making and operational meetings. Adequate financial and manpower support should be provided to enhance its efficiency.
- Promoting Openness and Trade: Efforts should be made to increase openness, particularly at the India-Myanmar border. Additionally, measures should be taken to boost trade within BIMSTEC countries, which could include reducing trade barriers and promoting inter-regional trade.
- Establishing a Free Trade Agreement: BIMSTEC should work towards establishing a Free Trade Agreement among its member countries. This could encourage member countries to import goods manufactured and exported by other members, thereby boosting intra-regional trade.
- Resolving Political and Humanitarian Issues: BIMSTEC should play a proactive role in resolving regional tensions and humanitarian issues. This could involve facilitating dialogue between member countries to resolve disputes and address humanitarian crises.
Conclusion
The implementation of the BIMSTEC Charter underscores India’s dedication to fostering a prosperous, peaceful, and sustainable regional environment. This commitment is rooted in our shared heritage, cultural ties, collective vision, and mutual respect. BIMSTEC serves as a testament to the successful amalgamation of India’s ‘Neighbourhood First’ and ‘Act East’ policies. Furthermore, it symbolizes the potential for regional cooperation and integration, paving the way for a future where shared growth and mutual benefits are at the forefront of regional dynamics.
References
The Hindu | TOI | Hindustan Times
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‘Virus of Conflict is affecting the functioning of the SCO’ In the light of the above statement point out the role of India in mitigating the problems. [UPSC Civil Services Exam – Mains 2023]
Practice Question
How does the entry into force of the BIMSTEC Charter reaffirm India’s commitment to a prosperous, peaceful, and sustainable neighborhood, and what are the significance and challenges faced by BIMSTEC in achieving its objectives? [250 words]