The South Asian Association for Regional Cooperation (SAARC) was established in the mid-1980s. However, the organization’s effectiveness and potential are no longer seen with much optimism due to ongoing tensions between India and Pakistan. The last SAARC summit was supposed to take place in 2016. But it has been on hold ever since.
Discussions about a new regional alliance in South Asia started first came into attention in 1997. That same year, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) was formed. Along with Bangladesh, BIMSTEC’s member countries include India, Sri Lanka, Bhutan, Myanmar, Nepal, and Thailand. The sixth BIMSTEC summit is set to take place on April 4 in Bangkok, Thailand. Ahead of the summit, the Foreign Affairs Adviser will attend the 20th BIMSTEC Ministerial Meeting on April 3. He will also deliver a keynote speech at the “BIMSTEC Young Generation Forum: Where the Future Meets” on the same day.
Looking at BIMSTEC’s track record over the past 28 years, regional economic analysts believe the alliance is heading down the same path as SAARC. They point out that while discussions and plans for BIMSTEC continue to move forward, and policymakers across the member countries often reach broad agreements on key policies, that consensus rarely translates into action. The BIMSTEC Free Trade Agreement (FTA) is a prime example of this. The agreement was signed as a framework agreement back in 2004 but has yet to be finalized. Even at the upcoming BIMSTEC summit, there seems to be little chance of the FTA being fully implemented.
Many experts and diplomats are not too keen on discussing BIMSTEC as an alternative to SAARC or comparing the two organizations. According to officials at the Ministry of Foreign Affairs, SAARC has not really achieved much as a regional alliance in South Asia. On the other hand, while BIMSTEC has the potential to be a more effective and dynamic organization, there is still a gap between political goodwill and actual implementation among its member states. As a result, BIMSTEC could end up facing the same fate as SAARC.
Experts say that SAARC is no longer effective, and there is a lack of enthusiasm regarding the organization among its member states. In contrast, BIMSTEC has maintained political interest, especially considering its connections with South Asia and Southeast Asia. BIMSTEC started its operations in 1997. Two of its member countries, Myanmar and Thailand, are also part of ASEAN. One of the key goals when BIMSTEC was established was to strengthen economic ties through a bridge between South Asia and ASEAN.
Sources related to BIMSTEC point out that the framework agreement for the BIMSTEC Free Trade Area (FTA) was signed in 2004. While various initiatives were taken around this agreement, a final free trade agreement has yet to be signed. Additionally, several plans have been made for BIMSTEC member countries, including a comprehensive transport master plan. Experts believe this plan could have provided a great opportunity to create a triangular synergy of trade, connectivity, and investment. To support this, an Eminent Persons Group was formed, and discussions based on their report will be part of the upcoming summit. However, given the slow progress of BIMSTEC over the last 28 years, observers are not very optimistic about this year’s summit.
Professor Mustafizur Rahman, a Distinguished Fellow at the Center for Policy Dialogue (CPD), told Bonik Barta. “BIMSTEC has a lot of potential. For example, increasing trade cooperation, facilitating investment flows between countries, and establishing transport connectivity with South Asia, ASEAN, and East Asia. There are many opportunities like these, along with good initiatives in areas such as the environment, blue economy, and transport.”
Regarding the slow pace of implementation alongside planning, Professor Rahman added, “There are many challenges in terms of implementation. There’s a gap when it comes to translating political signals into action. The BIMSTEC FTA is the biggest example of this. For 20 years, discussions have been ongoing about the FTA since 2004, but once again, it won’t happen this time. As a result, when negotiators from the member countries participate, there’s a gap between the political signals and the negotiations. In the end, it seems like nothing has moved forward.”
“If we can implement these plans, I still believe there is a lot of potential,” said Mustafizur Rahman, adding, “We hope that the recommendations from the Eminent Persons Group will be adopted at the Sixth Summit in April. If strong political pressure can be applied at the Sixth Summit and if there is close, time-bound monitoring of the implementation, there’s a significant possibility for success. The potential is immense if the existing initiatives are carried out. By connecting South Asia with Southeast Asia, we could deepen economic cooperation through a three-dimensional integration of trade, investment, and connectivity. However, based on past experience, it can be said that the potential remains unfulfilled.”
Mustafizur Rahman believes that BIMSTEC will not be comparable to SAARC. Due to the strained relationship between Pakistan and India, SAARC has become stagnant. BIMSTEC, however, does not face the same political challenges. As a result, it has both the catalyst and the components needed to move forward. But now, the political will must be translated into action.
Some experts argue that BIMSTEC is a coalition of countries bordering the Bay of Bengal. China is showing interest in it. The United States is also on the path to implementing its Indo-Pacific agenda. Overall, they believe that BIMSTEC may never become an effective organization and could eventually turn into a dead institution like SAARC. BIMSTEC is primarily an initiative of India. The only country outside the SAARC region in this organization is Thailand, which has bilateral ties with India. Just as SAARC was influenced by India, BIMSTEC is also similarly shaped. Given this dynamic, there is doubt about how much global appeal BIMSTEC can truly attract. India covers 32 percent of BIMSTEC’s official expenses, despite the organization’s main office being in Bangladesh. Overall, the future of the organization remains uncertain.
When asked if SAARC and BIMSTEC can be compared as regional alliances, BIMSTEC Secretary General Indra Mani Pandey told Bonik Barta, “No, they can’t be compared and should not be compared. Each has its own history, vision, agenda, achievements and strengths. They also have different memberships and geographical focus. While SAARC brings together the countries of South Asia, BIMSTEC acts as a bridge between South Asia and South East Asia, located in and adjacent to Bay of Bengal. It’s unfair to compare BIMSTEC with SAARC.”
Expressing strong optimism and confidence in BIMSTEC’s effectiveness, Indra Mani Pandey added, “I am very optimistic and hopeful that with the steps being taken to reform and revitalize BIMSTEC, it will emerge as a dynamic and vibrant regional organization. I am confident that the next Summit will provide BIMSTEC a new direction and momentum.”
According to the BIMSTEC Secretariat in Dhaka, the organization currently has 15 sector-based programs and has established the necessary institutional framework for regional cooperation. It now has its own charter and is expected to soon introduce a vision document and regulations. As all decisions are made through consensus, each member state enjoys equal status and role in decision-making. Moreover, every country is given the opportunity to lead one or more specific sectors, ensuring equal participation in regional cooperation.
BIMSTEC’s Dhaka office further stated that emphasizing technical and economic cooperation will support the member countries in achieving their sustainable development goals. Additionally, the tradition of staying away from bilateral or regional political issues is the organization’s true strength, which helps keep the member countries united and enables them to tackle development and security challenges through technical and economic cooperation.
On March 12, a discussion was held at BIMSTEC’s Dhaka office regarding the upcoming summit. Dr. Selim Raihan, Executive Director of the South Asian Network for Economic Modeling (SANEM), presented on “The New World Order, Global Challenges, and BIMSTEC.” In his research, he highlighted several challenges faced by the organization, including a lack of political commitment, the absence of sustained commitment from member countries, long delays in ratifying the charter (25 years), limited institutionalization, low regional trade, infrastructure deficits, tensions between member countries such as Bangladesh-Myanmar, limited resources, insufficient funding for the secretariat, and a lack of skilled manpower.
Dr. Raihan’s presentation also highlighted trade and investment barriers. Despite the framework being in place since 2004, the Free Trade Agreement (FTA) has not yet been implemented. Key challenges include disagreements over the list of sensitive products, non-tariff barriers, protectionist policies, and a reluctance to liberalize economies.
On March 25, a briefing on the BIMSTEC summit was held at the Ministry of Foreign Affairs. During the briefing, Foreign Secretary Jashim Uddin stated, “It goes without saying that this sixth BIMSTEC summit marks a new chapter for Bangladesh in the regional arena through BIMSTEC. This summit will provide us with an opportunity to present Bangladesh as a fair and inclusive nation in South and Southeast Asia. I believe this summit will strengthen and deepen the relationships between Bangladesh and other BIMSTEC member states and play a significant role in advancing regional peace and development. As Bangladesh will hold the presidency of BIMSTEC for the next two years, this summit is of great importance to us.”