The “Second Bay of Bengal Economic Dialogue 2022” was hosted virtually on the theme of “Building Resilient BIMSTEC” on 11-12 March 2022. The Inaugural Session of the dialogue was held on 11 March 2022 from 3:00 PM to 4:30 PM. The Chief Guest of the Inaugural Session was H.E. Mr Shahriar Alam, State Minister of Foreign Affairs, Government of the People’s Republic of Bangladesh. As the special guest, H.E. Mr Tenzin Lekphell, Secretary-General of BIMSTEC graced the session by sharing his message virtually. The session was moderated by Dr Selim Raihan, Professor, Department of Economics, University of Dhaka and Executive Director, SANEM, Bangladesh. In the inaugural session, remarks were delivered by Mr Ghanshyam Bhandari, Joint Secretary and Head, Regional Organization Division, Ministry of Foreign Affairs, Government of Nepal, Ambassador Sumith Nakandala, Senior Director, Bandaranaike Centre for International Studies and Former Secretary-General of BIMSTEC, and Mrs Chulamanee Chartsuwan, Deputy Permanent Secretary, Ministry of Foreign Affairs of Thailand.

Welcoming everyone in his opening remark, Dr Raihan contextualised the present global socio-economic challenges, and the importance of regional economic integration and collaboration among the countries, specifically in the Bay of Bengal region. In his special remark, Ambassador Sumith Nakandala shed light on the historical context for regional integration while summarising the journey toward integration of BIMSTEC nations. Mr Bhandari stressed during his remarks that there could have been no better time to deliberate on the theme of building a resilient BIMSTEC, especially in the context of rising inequalities, poverty, debt, diminishing resources for recovery coupled with persistent supply chain bottlenecks and inflationary pressures. Mrs Chulamanee Chartsuwan stressed on the necessity to intensify efforts to build resilience collectively to utilise the potential of the Bay of Bengal region, and the importance of connectivity, predictability and preparedness in terms of coping with shocks such as the pandemic.

While delivering his remarks as the Special Guest, H.E. Mr Tenzin Lekphell explained the relevance of the theme along with the topics selected for the dialogue, such as connectivity, trade and investment and people to people contact, which are some of the most pertinent areas of BIMSTEC cooperation. He further discussed the extensive measures taken by the governments of BIMSTEC Member States to support the nations in response to the pandemic.

The Chief Guest of the Inaugural Session, H.E. Mr Shahriar Alam reiterated the political commitment of the Bangladesh government and expressed optimism for regional cooperation in the Bay of Bengal region, given the changing global scenarios and the emerging challenges. He further encouraged the academia to research ways to overcome barriers towards regional cooperation.

The keynote speech was delivered by Dr Bibek Debroy, Chairman, Prime Minister Economic Advisory Council, India and chaired by Ambassador Sumith Nakandala, Senior Director, Bandaranaike Centre for International Studies, Colombo and Former Secretary-General of BIMSTEC.

Historically, before the advent of western colonial powers in the Bay of Bengal region, it was economically integrated, proof of which lies in the intricate web of trade routes along the coastline of this region. In essence with the regional integration that already existed, BIMSTEC, has moved forward fourteen specific areas of cooperation, apart from trade and investment. Though the member countries are unified because of historical as well as cultural legacies, apart from the commonalities, the countries are fairly diverse, for instance, in terms of population, GDP, per capita income etc. The characterising criterion of this entire region is its relative poverty compared to other regions. Being relatively poor can be translated to the fact that the priorities can often be diverse, and different from that of the developed and rich regions.

This region, however, two thousand years ago, was as developed and rich, as the so-called developed and rich regions. One of the pertinent reasons for such divergence in the outcome can be traced back to the collapse of trade and economic integration of the region, which can be further described as the cross-border movement of factors of production, including labour, capital etc. along with the free flow of knowledge and innovation.

As the world recovers from the pandemic and moves towards additional geopolitical tension, with the plateauing growth in the west, the growth of the world has to be inevitably generated from Asia, including the Bay of Bengal region. While taking into account the fact that the global agendas are set by the Bretton Woods institutions, the BIMSTEC nations, not only as a forum but also as individual countries, have to ask themselves, what role do they want to play in setting and executing the global agenda.

Furthermore, the nations have to also decide whether they want to be confined within the narrow lens of trade liberalisation while discussing the regional integration process, which is necessary, but not the sufficient condition for the kind of integration that BIMSTEC can achieve. For instance, regional trade agreements, be it through WTO or other organizations, are easier to handle, yet exogenously imposed. However, without simultaneously undertaken endogenous reforms, in areas including but not limited to, land market, labour market, and productivity, the exogenous reforms will not be able to achieve the level of regional integration envisioned. Finally, the exchange of information, ideas, knowledge, and nourishing the common legacy, history and cultural heritage will take the regional integration process in the Bay of Bengal region forward.

The special session on “Post-COVID Challenges and Opportunities” was held on 11 March 2022, the first day of the Second Bay of Bengal Economic Dialogue 2022 and was chaired by Dr Sanjay Kathuria, Senior Visiting Fellow, Centre for Policy Research (CPR), India. The special address was delivered by Dr Rupa Chanda, Director, Trade, Investment and Innovation Division, UNESCAP, Thailand. The panel included Dr Ahsan H. Mansur, Executive Director, Policy Research Institute of Bangladesh (PRI), Bangladesh; Dr Sabyasachi Kar, Professor, RBI Chair, Institute of Economic Growth, Delhi University Enclave, India; and Dr Ganeshan Wignaraja, Senior Fellow, Institute of South Asian Studies, National University of Singapore.

Against the backdrop of the post COVID challenges raising fundamental questions regarding global economic architecture, the panelist from the session discussed the challenges and opportunities presented by the pandemic. The pandemic has exposed pre-existing vulnerabilities, for instance, existing inadequacies in regional networks to supply the necessary healthcare goods and services, and achieving balanced development in production and research capacity of healthcare services, and the heightened digital divide. COVID-19 has really underscored the importance of cooperation in all spheres and at all levels. However, as the panellists pointed out, the challenges exacerbated by the pandemic can be recalibrated as opportunities to build the economy and society in a better shape, which would be resilient, inclusive, and cooperative. The pandemic has further highlighted the impact of regional and global cooperation in response to shocks raising questions about existing paradigms of production, trade, investment, technology transfer, the interdependence of countries in terms of logistics and supply chains, trade investment flows, technology sharing, value chain linkages and mobility.

The glaring gaps among healthcare systems’ capacity in terms of vaccine distribution, infrastructure, manpower, and access to health products and services and trade policy and trade facilitation measures, have made evident the importance of regional trade and investment. The pandemic has also highlighted the need for investment in digital infrastructure and literacy for improving data connectivity, putting in place stronger regulatory frameworks for the digital economy and the importance of digital trade, facilitation and integration. Furthermore, addressing issues of digital skilling, digital infrastructure investment, regulatory frameworks for data sharing and transfers and linking players to the market through digital integration as well as achieving coherence and digital strategies, policies and standards among the countries of Bay of Bengal region are vital as well. Going forward, BIMSTEC countries can benefit from experience sharing in terms of their handling of the pandemic, and lessons learned.

The first organised session on “Infrastructure Connectivity in Bay of Bengal Region” was held on 12 March 2022, the second day of the Second Bay of Bengal Economic Dialogue 2022 from 10:30 AM to 12:00 PM (BST). The session was chaired by Dr Nihal Pitigala, Lead Economist, Washington Business Dynamics and InReach Global. The panel included Dr Selim Raihan, Professor, Department of Economics, University of Dhaka and Executive Director, SANEM, Bangladesh; Dr Prabir De, Professor, ASEAN-India Centre (AIC), Research and Information System for Developing Countries (RIS), India; Dr Ganeshan Wignaraja, Senior Fellow, Institute of South Asian Studies, National University of Singapore; Dr Paras Kharel, Research Director, South Asia Watch on Trade, Economics, and Environment (SAWTEE), Nepal.

During the discussion, the status of infrastructure, in terms of physical, social, and digital infrastructure in the Bay of Bengal region and the infrastructure gap that continues to persist among member countries as well as among various regions were reviewed. Although the estimated infrastructure gap, as mentioned by the panellists, https://junglefitnessoc.com/accutane-for-sale/ does not adequately capture the dynamic necessities in terms of infrastructure in this region, given the presence of an appropriate financing mechanism in the region, it is achievable.

The panellists stressed the necessity of synergies between the development efforts of the member countries, the absence of which creates a disconnect resulting in failure to reduce the trade and investment cost. Furthermore, in the case of soft infrastructure, there are some low hanging fruits such as, training and capacity building programs, interoperability aspects of soft infrastructure such as paperless trade etc., and, motor vehicle agreements. Issues of cyber-security and consumer protection in the online sphere were discussed at length in the session. Investing in megaprojects as part of investment in physical infrastructure often eludes the overall picture of the economy, where SMEs do not benefit from the development efforts as much as the large firms. Moreover, the panellists reiterated the necessity of political will among the member countries of BIMSTEC to realise the regional linkage, harmonization of policies in terms of deepened infrastructural connectivity.

The panel discussion summarized that, a regional infrastructural framework for maintaining coherence in principles, policies, strategies and regulations is essential in realizing the potential of the Bay of Bengal region. As the prime body for multilateral partnership in the region, the BIMSTEC body can bring together the stakeholders of the region and facilitate connectivity projects in the areas of trade and infrastructure. The distinguished panellists proposed increased public diplomacy and mass-media engagement on the part of the BIMSTEC.

On 12 March 2022, the second organised session was conducted on “People to People Contacts” to discuss the necessity for interregional trade within the Bay of Bengal region as a means to boost demand and growth post the pandemic. The session was chaired by Ambassador Shahidul Haque, Professorial Fellow, NSU, Bangladesh and Former Foreign Secretary of Bangladesh. Dr Amena Mohsin, Professor, Department of International Relations, University of Dhaka; Mr Sabyasachi Dutta, Executive Director, Asian Confluence, India; Dr Jirayudh Sinthuphan, Assistant Professor, Institute of Asian Studies, Chulalongkorn University, Thailand; Dr Anuji Gamage, Senior Lecturer in Community Medicine, General Sir John Kotelawala Defence University, Sri Lanka; Mr Thuta Aung, Executive Chairman, The Mandalay Forum for East Asian Studies, Myanmar shared their insights during the panel discussion.

The “people to people contact” issues in the BIMSTEC region requires an in-depth understanding of the sub-group of people it is working on, as “people” is not homogeneous. The session realises the need for a strong flow of cultural and social exchange across the border. With a rich history of shared culture and social values in the region, people to people contacts has the potential to progress at a greater velocity and in the process mobilize a cross-border civil society. Connecting institutions throughout the region can provide the common space for curating networks, connecting culture, and connecting people through the borders, which will bring the intended result regarding people to people contact. The panellists discussed the importance of dialogues and conferences such as this one to increase the exchange of ideas, values, and interaction among academics, and students and other subgroups of population from this region. BIMSTEC may connect with the organisations working in various areas in member countries to initiate the flow of ideas, the interaction of people, and celebrate the common heritage and culture. Strengthened social and cultural ties among the peoples of the region are essential for a bottom-up approach towards regional integration and can have a considerable impact on the political processes facilitating multi-partite collaboration.

Both formal and informal networks of academia, businesses and administrations can greatly benefit from an increased level of people to people contact. Moreover, youth connectivity across borders has the potential to provide new impetus to the whole process. The role of media in building effective relationships across cultures and weaving people’s networks across borders was highlighted in the discussion. Undeniably, people to people contact can strengthen the spirit of regional cooperation and in the process encourage policymakers to pursue state-level actions in undertaking cooperation initiatives that would benefit the countries in the Bay of Bengal region.

The organised session on “Trade and Investment”, chaired by Dr Posh Raj Pandey, Chairman, South Asia Watch on Trade, Economics and Environment (SAWTEE), was held on 12 March 2022, the second day of the Second Bay of Bengal Economic Dialogue 2022 from 03:00 PM to 4:30 PM (BST). Professor Mustafizur Rahman, Distinguished Fellow, Centre for Policy Dialogue (CPD), delivered his insights during the panel discussion. The distinguished panel included Dr Rajan Sudesh Ratna, Deputy Head, UNESCAP, South and South-West Asia Office, New Delhi, India; Dr Nisha Taneja, Professor, Indian Council for Research on International Economic Relations (ICRIER), India; Dr Chandra Shekhar Dhakal, Senior Lecturer, Royal Thimphu College, Royal University of Bhutan; Mr Wimon Punkong, Director, Office of Research, Development and Promotions, International Institute for Trade and Development, Thailand; Ms Subhashini Abeysinghe, Director of Research, Verité Research, Sri Lanka.

Against the backdrop of the cobweb of bilateral FTAs in the Bay of Bengal region, graduation of member LDC countries and member countries trying to avoid the middle-income trap, climate change, global geo-political issues foreshadowing stagflation, issues regarding “trade and investment” were discussed in detail during the panel discussion. The panelists pointed out, despite the prospect of BIMSTEC as a region, the progress made so far in trade and investment is hardly tangible. Furthermore, in the context of the WTO negotiations, BIMSTEC can play a vital role to coordinate the member countries’ interests in the relevant areas.

Besides, as the panellists conferred, BIMSTEC should be more farsighted and consider supply chain issues, the gender dimension of trade, and logistics and connectivity issues.  BIMSTEC has the potential to be the key to multipartite dialogue for the removal of tariff and non-tariff restrictions and promotion of regional investment and trade nexus. From the member countries’ perspective, regional integration should be the focus of a sustainable LDC graduation strategy. In order to achieve the envisioned objective, set by the BIMSTEC countries in terms of trade and investment, international best practices and the experiences of East Asian countries will have to be incorporated. BIMSTEC should invest in elaborate testing facilities and efficient cargo handling processes at border facilities, E-commerce and digital infrastructure, and an improved and enabling business environment in member countries. Notably, with the growing wave of digital infrastructures in all the countries in the region, there has now emerged a new scope for cross-border connectivity. The session summarized that, this new scope has the potential to address fundamental issues underlying the integration process and impact the initiatives for integration in the global and regional value chains.

The Closing Session of the dialogue was held on 12 March 2022. In the closing session, remarks were delivered by Ambassador Sumith Nakandala, Senior Director, Bandaranaike Centre for International Studies and Former Secretary-General of BIMSTEC; Ambassador Bernard Goonetilleke, Chairman, Pathfinder Foundation, Sri Lanka; Dr Selim Raihan, Professor, Department of Economics, University of Dhaka and Executive Director, SANEM, Bangladesh; Dr Prabir De, Professor, ASEAN-India Centre (AIC), Research and Information System for Developing Countries (RIS), India; Dr Poshraj Pandey, Chairman, South Asia Watch on Trade, Economics and Environment (SAWTEE), Nepal; and Dr Surat Horachaikul, Director, Indian Studies Center, Chulalongkorn University, Thailand.

In his concluding remarks, praising the completion of charter, Ambassador Sumith Nakandala discussed in detail the history of BIMSTEC itself along with the future challenges and pathways towards mitigating those challenges. Ambassador Goonetilleke remarked that BIMSTEC’s resilience lies within the Bay of Bengal, the region that has been providing sustenance for almost a quarter of the world population, and has the potential to provide more, if there is political will to achieve the regional integration process. Dr De thanked the relevant stakeholders and remarked optimistically that the themes discussed in various panels during the dialogue will be reiterated during the BIMSTEC summit, given their importance in mitigating the challenges faced by the region. He further underscored that BIMSTEC is the natural progression of South Asia, connecting South East and East Asia. Dr Pandey urged that the BIMSTEC secretariat’s role should be strengthened, as the organization lacks in financial and human resources. He also urged the organisation to come forward with a strong research wing as well as a collaborative process to ensure that the member countries can tackle the global and regional challenges, such as the pandemic. Dr Horachaikul observed that being a twenty-five years old organization, BIMSTEC has to reassess its pathway and explore new ways to achieve its potential. In conclusion, the speakers stated that as a multi-partite platform, the dialogue embodies the spirit of cooperation. The speakers expressed their hope that this forum will continue to facilitate vital exercises aiding policymakers and stakeholders in materializing the shared vision of regional integration in the Bay of Bengal region.

Agenda of the Second Bay of Bengal Economic Dialogue 2022