Though BIMSTEC holds the catalytic potential to create a peaceful, prosperous and integrated neighbourhood, the region remains hardly integrated. Examine the factors which impede such integration and suggest measures to reinvigorate BIMSTEC. (200 words)
Refer – Business Line
Enrich the answer from other sources, if the question demands.
IAS Parliament 6 years
KEY POINTS
Significance of BIMSTEC
· In the Indian context, BIMSTEC stands at the very important intersection of ‘Neighbourhood First’ and ‘Act East Policy’.
· BIMSTEC presents immense opportunities for growth and development and has particular benefits for 7 north-eastern states.
· Notably, BIMSTEC has 5 members from SAARC and 2 from ASEAN and can potentially act as a bridge between the two.
· Despite its strategic significance and potential, the region remains one that is poorly inter-connected.
Challenges and suggestions
· Lack of connectivity and timely availability of business information are greatest hindrances to closer economic engagement.
· Multimodal connectivity and a speedy conclusion of the BIMSTEC FTA would have a multiplier effect on trade and investment.
· Also, creating regional value chains that could feed into global value chains are vital for business integration.
· The prospects for MSMEs are massive and these need to be augmented by encouraging competitiveness, employment generation and inclusive growth.
· Integration of women entrepreneurs into supply chains and building innovative business models for women is essential.
· However, the most important need is the strengthening of all modes of connectivity: physical, digital, financial and people to people.
· On a backdrop of shared history, new connections have to be forged between students, entrepreneurs, artists, and elected representatives.
· Building Brand BIMSTEC by identifying such brand ambassadors would build soft power equity.
Way ahead
· BIMSTEC holds catalytic potential to transform economies of member states and create a peaceful, prosperous and integrated neighbourhood.
· The road from potential to reality will be successfully traversed only when all actors and stakeholders come together actively for the cause.
