BIMSTEC: Member Countries, Objectives, Significance and Challenges

Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is an influential regional multilateral organization. 

Established to promote rapid economic development and social progress, this grouping plays a crucial role in connecting the two major regions of Asia: South Asia and Southeast Asia. Its members comprise five countries from South Asia and two from Southeast Asia, all lying in the littoral and adjacent areas of the Bay of Bengal.

BIMSTEC Overview

BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) brings together seven South and Southeast Asian countries to promote regional economic growth and technical collaboration. Each member country leads a core sector to strengthen cooperation and development across the region.

Genesis and Evolution of BIMSTEC

The foundation of the BIMSTEC grouping was laid on June 6, 1997, with the signing of the Bangkok Declaration.

• Initial Formation (BIST-EC): It was initially formed with four founding members: Bangladesh, India, Sri Lanka, and Thailand. The grouping was named BIST-EC (Bangladesh–India–Sri Lanka–Thailand Economic Cooperation).

• Renaming to BIMST-EC: Following the inclusion of Myanmar on December 22, 1997, the group was renamed BIMST-EC (Bangladesh, India, Myanmar, Sri Lanka, and Thailand Economic Cooperation).

• Final Name (BIMSTEC): The organization attained its current name, BIMSTEC, with the full membership of Nepal and Bhutan in February 2004.

• Secretariat: The permanent secretariat of BIMSTEC was established in Dhaka, Bangladesh, in 2014, providing a formalized institutional framework for the organization.

• BIMSTEC Charter: A significant milestone was achieved during the 5th Summit in 2022 when the BIMSTEC Charter was adopted, conferring a legal personality on the grouping and outlining its goals, principles, and structure.

BIMSTEC Member Countries and Geographical Significance

BIMSTEC brings together seven countries from South and Southeast Asia to enhance regional cooperation and economic integration. The grouping leverages the strategic location of the Bay of Bengal to connect diverse geographies and promote shared growth.

The grouping is home to approximately 1.73 billion people, constituting around 22% of the world's population, with a combined Gross Domestic Product (GDP) of over US$4.5 trillion.

The Bay of Bengal acts as a common geopolitical and economic zone, making BIMSTEC a unique platform that connects the sub-regions of South Asia and Southeast Asia, including the ecologies of the Great Himalayas and the Bay of Bengal basin.

Objectives of BIMSTEC

The core purpose of BIMSTEC is to accelerate economic growth and social progress within the Bay of Bengal region through collaborative efforts in various sectors.

Core Objectives:

• Accelerated Economic Growth: To create an enabling environment for rapid economic development through the identification and implementation of specific cooperation projects.

• Social Progress: To accelerate social progress in the region through joint endeavours in a spirit of equality and partnership.

• Mutual Assistance: To promote active collaboration and mutual assistance in matters of common interest across economic, social, technical, and scientific fields.

• Capacity Building: To assist each other in the form of training and research facilities in educational, professional, and technical spheres.

• Peace and Stability: To maintain peace and stability by collaborating on combating international terrorism, transnational organized crimes, and addressing natural disasters and climate change.

Guiding Principles:

The principles that guide the operations of BIMSTEC are founded on respect for international law and norms, including:

• Sovereign Equality

• Territorial Integrity

• Political Independence

• Peaceful Co-existence

• Mutual Benefit

Institutional Mechanism and Organizational Structure

BIMSTEC functions through a structured mechanism to ensure effective policy-making and implementation.

 Sectors of Cooperation and Lead Countries

Cooperation within BIMSTEC is sector-driven. Initially, the organization focused on six sectors in 1997, which were expanded over time. Following a rationalization in 2021/2022, the areas of cooperation have been consolidated into seven core sectors, with each member state taking the lead on one sector for enhanced efficiency:

 Significance of BIMSTEC for India

BIMSTEC holds immense strategic and economic significance for India, allowing it to pursue several core foreign policy objectives:

• Neighbourhood First Policy: It reinforces India's commitment to its immediate neighbours in the Bay of Bengal region, supporting stability and growth in the periphery.

• Act East Policy: BIMSTEC is a critical component of the Act East Policy, acting as the primary link connecting India's Northeast states with Southeast Asian markets via Bangladesh and Myanmar.

• Economic Development of Northeast States: By strengthening regional connectivity, particularly through projects like the India-Myanmar-Thailand Trilateral Highway, it boosts the economic development of India's landlocked Northeast region.

• Alternative to SAARC: Given the structural and political hurdles within the South Asian Association for Regional Cooperation (SAARC), BIMSTEC offers India a viable and stable platform for regional cooperation, especially with its eastern neighbours.

• Security and Counter-Influence: It is a vital platform for enhancing maritime security cooperation and countering non-traditional threats in the Bay of Bengal. It also provides a mechanism to balance the increasing strategic influence of external powers in the region.

Challenges for BIMSTEC

Despite its potential, BIMSTEC faces several challenges that hinder its progress:

• Slow Progress: The organization has historically suffered from a slow pace of progress, with key initiatives like the BIMSTEC Free Trade Area (FTA) Framework Agreement, signed in 2004, still under negotiation.

• Wide Focus Area: The initial broad focus across many sectors (14 before rationalization) led to a dilution of efforts. While rationalization of the seven core sectors is a positive step, effective implementation remains key.

• Lack of Resources: The Secretariat requires greater capacity, both in terms of manpower and dedicated funding, to effectively manage and implement regional projects.

• Bilateral Issues: Bilateral conflicts, such as the Rohingya refugee crisis involving Myanmar and Bangladesh, can sometimes cast a shadow over the regional cooperative spirit.

• Inadequate Connectivity: A lack of robust physical and digital connectivity infrastructure remains a major constraint on boosting intra-regional trade, which currently stands at a low percentage.