Hindu Editorial Analysis : 18-July-2023

The first-ever Foreign Ministers’ meeting of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) recently commenced in Bangkok, Thailand. BIMSTEC is a regional organization established in 1997 with the signing of the Bangkok Declaration. Comprising seven member countries, BIMSTEC aims to promote economic cooperation and connectivity in the Bay of Bengal region. This essay explores the significance of BIMSTEC, particularly for India, and highlights some major concerns that need to be addressed.

BIMSTEC Overview
  1. Establishment and Expansion
    • Initially known as BIST-EC (Bangladesh-India-Sri Lanka-Thailand Economic Cooperation).
    • Myanmar joined in 1997, followed by Bhutan and Nepal in 2004.
    • Permanent Secretariat: Dhaka, Bangladesh.
    • Leadership rotation: Alphabetical order of country names.
Significance of BIMSTEC
  1. Economic Importance
    • Around 22% of the world’s population resides in the seven BIMSTEC countries, with a combined GDP close to $2.7 trillion.
    • Sustained economic growth: Average annual growth rates between 3.4% and 7.5% from 2012 to 2016.
  2. Boosting Connectivity
    • Enhances relations with neighboring countries through various projects.
  3. Platform for Resolving Issues
    • Addressing challenges such as terrorism, coastal security, and drug trafficking.
  4. Freedom of Navigation
    • Serves as a transit route between Indian and Pacific nations.
  5. Countering China
    • Prevents China from dominating the Indian Ocean region politically, militarily, and economically.
Importance of BIMSTEC for India
  1. Aligning with India’s Policies
    • Supports India’s ‘Act East’ policy for greater regional cooperation in Southeast Asia.
    • Promotes trade and security prominence in the Indian Ocean region.
  2. Advancements Made by India
    • Establishment of BIMSTEC Energy Centre and BIMSTEC Business Council in Bengaluru.
    • Aims to create free-trade and power grid interconnectivity agreements and a masterplan for transport connectivity.
    • Complements India’s focus on the ‘Indo-Pacific’ region in coordination with Quad countries.
BIMSTEC and SAARC
  1. Overlapping Regions, Different Objectives
    • BIMSTEC and SAARC focus on geographically overlapping regions.
    • SAARC is a regional organization, while BIMSTEC connects both South Asia and ASEAN.
    • BIMSTEC provides India with a cooperative sphere relatively free of bilateral disagreements.
  2. SAARC Summit Boycott
    • BIMSTEC gained prominence after the 2016 Uri attack when India convinced SAARC nations to boycott the summit in Islamabad, Pakistan.
Major Concerns
  1. Delay in Free Trade Agreement (FTA)
    • Despite signing a framework agreement in 2004, BIMSTEC has not achieved a comprehensive FTA.
    • Members engaged in multiple bilateral and multilateral trade agreements with other countries.
  2. Lack of Efficiency
    • Inconsistency in policy-making and operational meetings.
    • Inadequate financial and manpower assistance for the BIMSTEC Secretariat’s activities.
  3. Connectivity Challenges
    • Insufficient infrastructure links in transportation, energy, digital and financial domains.
    • Limitations in promoting trade, tourism, and cultural exchanges.
Why In News

Amidst an atmosphere of great anticipation, the inaugural Foreign Ministers’ meeting of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) convened in the vibrant city of Bangkok, Thailand. As the delegates gathered to discuss regional cooperation, a sense of collective purpose and optimism permeated the historic event, setting the stage for a new era of enhanced collaboration and progress among the member nations.

MCQs about The Significance and Challenges of BIMSTEC

  1. Which country joined BIMSTEC in 2004?
    A. Myanmar
    B. Nepal
    C. Bhutan
    D. Sri Lanka
    Correct Answer: B. Nepal
    Explanation: Bhutan and Nepal joined BIMSTEC in 2004, expanding the organization’s membership.
  2. What is the primary goal of BIMSTEC?
    A. Political Cooperation in South Asia
    B. Economic Cooperation and Connectivity in the Bay of Bengal region
    C. Promoting Cultural Exchanges between Member Countries
    D. Addressing Environmental Challenges in Southeast Asia
    Correct Answer: B. Economic Cooperation and Connectivity in the Bay of Bengal region
    Explanation: BIMSTEC aims to enhance economic cooperation and connectivity among its member countries.
  3. What is one of the major concerns mentioned in the essay regarding BIMSTEC?
    A. Inefficient Leadership Rotation
    B. Lack of Focus on Cultural Exchanges
    C. Delay in Establishing the BIMSTEC Energy Centre
    D. Absence of a Comprehensive Free Trade Agreement (FTA)
    Correct Answer: D. Absence of a Comprehensive Free Trade Agreement (FTA)
    Explanation: Despite signing a framework agreement for an FTA in 2004, BIMSTEC has not been able to achieve this goal, and members have engaged in multiple bilateral and multilateral trade agreements with other countries.

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