Global challenges, BIMSTEC and the New World Order
On 6 June, BIMSTEC’s 27th anniversary was celebrated in Dhaka. Despite numerous promises and years of existence, BIMSTEC’s progress toward deeper regional integration remains limited
The 6th BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) summit is likely to take place in September this year in Bangkok.
The changing global order and emerging global challenges require BIMSTEC to take a fresh approach to regional cooperation amid these new dimensions.
The concept of the New World Order refers to an evolving geopolitical landscape characterised by shifting power dynamics, technological advancements, and interconnectedness.
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In this context, global challenges have become increasingly complex and interrelated.
Ensuring peace and stability in an ever-more multipolar world remains a critical imperative. Conflicts, terrorism and cyber threats transcend national borders, necessitating collaborative efforts among nations.
Moreover, rapid advancements in artificial intelligence, biotechnology and digital infrastructure offer immense opportunities but also raise ethical, security and regulatory challenges.
The urgent need to address climate change, protect biodiversity and promote sustainable development requires global cooperation. Rising sea levels, extreme weather events and resource scarcity impact all nations, including those within the BIMSTEC region.
Furthermore, the Covid-19 pandemic has starkly highlighted the vulnerability of health systems worldwide. Preparedness, equitable vaccine distribution and effective pandemic response coordination are vital components of a resilient health infrastructure, though many BIMSTEC countries lack a resilient health infrastructure.
Despite progress, poverty persists in many regions, particularly within BIMSTEC countries. Bridging economic disparities and achieving inclusive growth are essential not only for global stability but also for regional well-being.
Additionally, several BIMSTEC nations grapple with macroeconomic instability, which undermines efforts to reduce poverty and enhance resilience.
BIMSTEC, comprising seven countries around the Bay of Bengal (Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand), holds significant promise in addressing contemporary challenges through meaningful regional cooperation.
Its geographical contiguity and historical linkages create a unique platform for collaboration, bridging South Asia and Southeast Asia.
BIMSTEC's priority areas focus on trade, investment, connectivity and cooperation to enhance economic ties, reduce poverty, and promote sustainable development in the region.
Recognising the threat of terrorism and transnational organised crime, BIMSTEC member states can collaborate through joint efforts and information sharing.
The organisation emphasises connectivity in its various forms—physical, digital, and people-to-people. By enhancing transport links, energy grids, digital infrastructure and technological cooperation, BIMSTEC has the potential to foster economic growth and resilience.
The Covid-19 pandemic underscored the importance of regional health cooperation. BIMSTEC can strengthen health systems, share best practices, and enhance preparedness.
Additionally, most BIMSTEC countries face climate vulnerabilities, with some experiencing acute challenges. Collaborative efforts within the organisation can effectively address climate change, disaster risk reduction, and sustainable resource management.
However, despite numerous promises and its 27 years of existence, BIMSTEC's progress toward deeper regional integration remains limited. What factors hinder its progress?
One crucial factor limiting BIMSTEC's advancement is the deficit in political commitment from the leaders of member countries. Concerns arise because larger countries have not consistently demonstrated strong political commitment to carry the agenda forward.
Simultaneously, smaller countries have not prioritised BIMSTEC on their agenda. A telling example is that BIMSTEC took 25 years to develop a formal Charter, delaying its institutionalisation and decision-making processes.
Furthermore, translating commitments into action necessitates sustained efforts.
BIMSTEC must prioritise project implementation and diligently monitor outcomes. Developing a common security framework is crucial.
Addressing non-traditional security threats (such as cyber threats and climate-induced migration) is essential. BIMSTEC should engage civil society, academia, and private sectors for a holistic approach. Gender mainstreaming and youth involvement are vital.
Enhancing trade facilitation, reducing non-tariff barriers, and promoting investment will boost economic integration in the BIMSTEC region.
Despite improvements in physical connectivity and trade volume, intra-regional trade within BIMSTEC remains low (around 7%). While this is higher than SAARC nations, it lags significantly behind ASEAN (approximately 25%).
The region faces a substantial infrastructure investment gap (around $120 billion annually), hindering seamless economic collaboration.
Despite signing a framework agreement in 2004, BIMSTEC has not yet achieved a comprehensive Free Trade Agreement (FTA). Member countries have entered into multiple bilateral and multilateral trade agreements with other nations, resulting in fragmented trade arrangements.
However, growing scepticism about the free trade agreement among larger players within BIMSTEC casts a shadow over the progress of the BIMSTEC FTA.
In the past, disputes over the sensitive list, reluctance to open up the economy, and various non-tariff issues have undermined the prospects of an FTA.
Additionally, bilateral tensions between member states (such as Bangladesh and Myanmar) impact BIMSTEC's overall effectiveness. Notably, Thailand and Myanmar sometimes prioritise ASEAN over BIMSTEC due to ASEAN's more advanced integration forum.
The BIMSTEC Secretariat operates with limited financial resources. Inadequate funding hampers its capacity to implement projects, organise events and facilitate cooperation among member countries.
Without sufficient financial backing, the Secretariat struggles to drive meaningful initiatives. It also faces a shortage of skilled personnel which hinders the Secretariat's overall efficiency.
Inadequate resources impact the Secretariat's visibility on the regional and global stage. Advocacy efforts, outreach, and communication suffer due to resource limitations, hindering its ability to promote BIMSTEC's goals effectively.
While BIMSTEC holds significant potential, it encounters obstacles in enhancing people-to-people interactions among member countries.
To address this, initiatives such as educating youth about BIMSTEC's importance, investing in cross-border infrastructure, and facilitating digital connectivity can foster stronger ties. By promoting understanding and trust, BIMSTEC can bolster regional cooperation.
In conclusion, BIMSTEC, as a regional entity, has the potential to play a significant role in shaping the New World Order.
By promoting cooperation, building resilience and advancing sustainable development in the Bay of Bengal region, BIMSTEC can contribute to global progress. Its effectiveness hinges on collective commitment, practical initiatives and adaptability to the ever-evolving challenges of our world.
Dr Selim Raihan is the executive director of the South Asian Network on Economic Modelling (SANEM).
