UPSC International relation

Bimstec Charter Finalized After 23 Years

April 29, 2025
5 min read
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The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Secretariat has finalized its charter, 23 years after the organization's inception. This charter, anticipated to be signed at the fifth summit in Sri Lanka, aims to provide a long-term vision, define cooperation priorities, clarify institutional roles, and establish decision-making processes. Previously, BIMSTEC operated under the Bangkok Declaration of 1997, which lacked the comprehensiveness needed for the current geopolitical landscape.

BIMSTEC, founded in 1997 with Bangladesh, India, Sri Lanka, and Thailand, later expanded to include Myanmar, Nepal, and Bhutan in 2004. The secretariat is based in Dhaka, Bangladesh. The BIMSTEC region encompasses approximately 1.5 billion people, representing around 22% of the global population, with a combined GDP of $2.8 trillion. Its core principles include sovereign equality, territorial integrity, political independence, non-interference, peaceful co-existence, and mutual benefit. BIMSTEC has identified 14 priority areas for cooperation, with individual member states leading in specific sectors. India currently spearheads efforts in Transport & Communication, Tourism, Environment & Disaster Management, and Counter Terrorism & Transnational Crime. The charter recategorizes the cooperation in 14 fields to 7 sectors.

BIMSTEC Charter: A New Era for Bay of Bengal Cooperation

The finalization of the BIMSTEC Charter represents a pivotal moment in the organization's history, signifying a move towards greater formalization, enhanced efficiency, and a renewed commitment to regional cooperation. This development, occurring after 23 years of operation under the less structured Bangkok Declaration, addresses the evolving needs and complexities of the Bay of Bengal region and its member states.

Origins and Evolution of BIMSTEC

To fully appreciate the significance of the BIMSTEC Charter, it is essential to understand the origins and evolution of the organization itself. BIMSTEC was established on June 6, 1997, through the Bangkok Declaration. Initially, it was known as BIST-EC (Bangladesh-India-Sri Lanka-Thailand Economic Cooperation). The organization was formed in response to a perceived need for a sub-regional grouping that could promote economic and technical cooperation among countries bordering the Bay of Bengal. The impetus for its creation stemmed from a desire to leverage the shared geographical space and natural resources of the region for mutual benefit. The initial focus was primarily on economic cooperation, with key areas of interest including trade, investment, technology transfer, and infrastructure development.

The original members—Bangladesh, India, Sri Lanka, and Thailand—were driven by a shared vision of creating a dynamic and prosperous sub-region. These countries recognized the potential for enhanced economic integration and saw BIMSTEC as a vehicle for achieving this goal. The inclusion of Myanmar in December 1997 broadened the organization's scope and added a new dimension to its regional dynamics.

In 2004, Nepal and Bhutan joined BIMSTEC, further expanding its membership and solidifying its position as a significant regional grouping. With the inclusion of these two landlocked countries, the organization's name was changed to the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). This change reflected the organization's expanded focus beyond purely economic cooperation to include technical and other areas of collaboration.

The early years of BIMSTEC were characterized by a gradual process of institutional development and the identification of priority areas for cooperation. The organization held its first summit in Bangkok in 2004, marking a significant milestone in its evolution. At the summit, member states reaffirmed their commitment to the goals of BIMSTEC and agreed on a framework for future cooperation. The establishment of a permanent secretariat in Dhaka, Bangladesh, in 2014 was another important step in strengthening the organization's institutional capacity.

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The Need for a Charter

Despite its achievements, BIMSTEC faced several challenges in its early years. One of the most significant was the lack of a formal charter to provide a clear legal and institutional framework for its operations. The Bangkok Declaration, while serving as the founding document, lacked the comprehensiveness and detail necessary to effectively guide the organization's activities.

The absence of a charter created several practical difficulties. First, it led to ambiguity regarding the roles and responsibilities of member states and the secretariat. Without a clear delineation of authority, decision-making processes were often slow and cumbersome. Second, the lack of a formal legal framework made it difficult to enforce agreements and commitments made by member states. This undermined the organization's credibility and effectiveness. Third, the absence of a long-term vision and strategic plan made it challenging to prioritize activities and allocate resources effectively. BIMSTEC often struggled to translate its ambitious goals into concrete actions.

As the geopolitical landscape in the Bay of Bengal region evolved, the need for a more robust and comprehensive framework became increasingly apparent. The rise of new challenges, such as terrorism, climate change, and non-traditional security threats, required a coordinated regional response. BIMSTEC, with its diverse membership and broad mandate, was well-positioned to play a leading role in addressing these challenges. However, to do so effectively, it needed a stronger institutional foundation and a clearer sense of purpose.

Key Provisions of the BIMSTEC Charter

The BIMSTEC Charter addresses many of the shortcomings of the Bangkok Declaration and provides a solid foundation for the organization's future development. While the specific details of the charter remain somewhat confidential, its key provisions are understood to include the following:

  • Objectives and Principles: The charter clearly defines the objectives of BIMSTEC, which include promoting economic growth, social progress, and cultural development in the Bay of Bengal region. It also reaffirms the organization's commitment to the principles of sovereign equality, territorial integrity, political independence, non-interference in internal affairs, peaceful coexistence, and mutual benefit. These principles serve as the guiding light for BIMSTEC's activities and ensure that all member states are treated with respect and dignity.
  • Institutional Structure: The charter establishes a clear institutional structure for BIMSTEC, defining the roles and responsibilities of the various organs of the organization. This includes the summit, which is the highest decision-making body; the ministerial meetings, which are responsible for formulating policies and strategies; the senior officials' meetings, which oversee the implementation of decisions; and the secretariat, which provides administrative support and coordinates activities. By clarifying the roles and responsibilities of these different bodies, the charter promotes efficiency and accountability.
  • Decision-Making Processes: The charter outlines the decision-making processes within BIMSTEC, ensuring that decisions are made in a transparent and inclusive manner. It specifies the voting rules and procedures for adopting resolutions and agreements. This promotes fairness and ensures that all member states have a voice in shaping the organization's policies.
  • Financial Arrangements: The charter establishes a framework for financing BIMSTEC's activities, including the contributions of member states and the mobilization of external resources. This ensures that the organization has the financial resources necessary to implement its programs and projects.
  • Dispute Resolution: The charter includes provisions for resolving disputes among member states, promoting peaceful settlement and preventing conflicts from escalating. This helps to maintain stability and cooperation within the region.
  • Priority Areas of Cooperation: The charter identifies the priority areas of cooperation for BIMSTEC, which include trade, investment, transport, energy, tourism, agriculture, fisheries, climate change, disaster management, counter-terrorism, and people-to-people contacts. These areas reflect the shared interests and priorities of member states and provide a focus for the organization's activities. The recategorization of 14 fields to 7 sectors aims to streamline cooperation and enhance efficiency.

Key Provisions of the BIMSTEC Charter

India's Role in BIMSTEC

India has been a strong supporter of BIMSTEC since its inception and has played a leading role in shaping the organization's agenda. India views BIMSTEC as an important platform for promoting regional cooperation and advancing its strategic interests in the Bay of Bengal region.

India's commitment to BIMSTEC is reflected in its active participation in the organization's activities and its willingness to take the lead in key areas of cooperation. India has been designated as the lead country for several sectors, including transport and communication, tourism, environment and disaster management, and counter-terrorism and transnational crime.

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  • Transport and Communication: India has been a strong advocate for improving connectivity within the BIMSTEC region, recognizing that better transport and communication links are essential for promoting trade and investment. India has been actively involved in projects such as the Kaladan Multi-Modal Transit Transport Project, which aims to connect India's eastern seaboard with Myanmar through a combination of sea, river, and road transport. This project is expected to significantly reduce transportation costs and transit times, boosting trade and economic cooperation between India and Myanmar, as well as other BIMSTEC member states.
  • Tourism: India has also been promoting tourism within the BIMSTEC region, recognizing its potential to generate economic growth and foster people-to-people contacts. India has been working with other member states to develop joint tourism packages and promote the region as a single tourist destination. The development of tourism infrastructure and the promotion of cultural exchanges are also key priorities.
  • Environment and Disaster Management: Given the vulnerability of the Bay of Bengal region to natural disasters, India has been actively involved in promoting cooperation in environment and disaster management. India has been sharing its expertise in disaster preparedness and response with other member states and has been working to develop a regional early warning system for natural disasters.
  • Counter-Terrorism and Transnational Crime: India has also been a strong proponent of cooperation in counter-terrorism and transnational crime, recognizing that these are major threats to regional security. India has been working with other member states to share intelligence, coordinate law enforcement efforts, and combat terrorism financing.

India's underlying interests in BIMSTEC are multifaceted. First, India sees BIMSTEC as a way to enhance its regional connectivity and promote economic growth in its northeastern states. By improving transport and communication links with neighboring countries, India hopes to boost trade and investment in its northeastern region, which has historically lagged behind the rest of the country in terms of economic development. Second, India views BIMSTEC as a way to counter China's growing influence in the region. China has been actively pursuing its own regional initiatives, such as the Belt and Road Initiative, and India sees BIMSTEC as a way to maintain its strategic influence in the Bay of Bengal region. Third, India sees BIMSTEC as a way to promote its foreign policy objectives, such as promoting democracy, human rights, and the rule of law.

India's Role in BIMSTEC

Stakeholder Perspectives

The finalization of the BIMSTEC Charter has been welcomed by all member states, but each country has its own unique perspective and interests.

  • Sri Lanka: As the host of the fifth BIMSTEC summit, Sri Lanka has a strong interest in ensuring the success of the event and the signing of the charter. Sri Lanka sees BIMSTEC as a way to enhance its regional profile and promote its economic development. Sri Lanka also hopes to strengthen its relations with other BIMSTEC member states through increased cooperation and dialogue.
  • Bangladesh: As the host of the BIMSTEC secretariat, Bangladesh has a strong interest in ensuring the effective functioning of the organization. Bangladesh sees BIMSTEC as a way to promote its economic growth and enhance its regional influence. Bangladesh also hopes to address issues such as climate change and poverty through increased cooperation with other member states.
  • Thailand: As one of the founding members of BIMSTEC, Thailand has a long-standing commitment to the organization. Thailand sees BIMSTEC as a way to promote its economic interests and enhance its regional security. Thailand also hopes to play a leading role in shaping the organization's agenda.
  • Myanmar: Myanmar's involvement in BIMSTEC is particularly significant given its strategic location and its potential as a gateway between South Asia and Southeast Asia. Myanmar sees BIMSTEC as a way to promote its economic development and enhance its regional integration. Myanmar also hopes to address issues such as poverty and drug trafficking through increased cooperation with other member states.
  • Nepal and Bhutan: As landlocked countries, Nepal and Bhutan see BIMSTEC as a way to improve their access to the sea and promote their trade and investment. Nepal and Bhutan also hope to address issues such as climate change and poverty through increased cooperation with other member states.

Stakeholder Perspectives

Broader Implications

The finalization of the BIMSTEC Charter has significant implications for the region and beyond.

  • Political: The charter strengthens regional cooperation and integration, enhancing the political stability and influence of the BIMSTEC region. It provides a framework for addressing common challenges and promoting shared interests.
  • Diplomatic: The charter improves diplomatic relations among member states, fostering trust and cooperation. It creates a platform for dialogue and consultation on issues of mutual concern.
  • Legal: The charter provides a legal framework for BIMSTEC, enhancing its accountability and legitimacy. It clarifies the rights and obligations of member states and provides a basis for resolving disputes.
  • Security: The charter enhances cooperation in counter-terrorism and transnational crime, improving regional security. It facilitates the sharing of intelligence, the coordination of law enforcement efforts, and the combating of terrorism financing.
  • Economic: The charter promotes trade, investment, and economic growth, benefiting the economies of member states. It facilitates the development of infrastructure, the harmonization of standards, and the reduction of trade barriers.
  • Environmental: The charter facilitates cooperation in environmental protection and disaster management, addressing common environmental challenges. It promotes sustainable development, the conservation of natural resources, and the mitigation of climate change.

Connections and Context

The finalization of the BIMSTEC Charter is closely connected to several ongoing issues in the region.

  • Regional Connectivity Initiatives: The charter supports regional connectivity initiatives, such as the Kaladan Multi-Modal Transit Transport Project and the Bangladesh-China-India-Myanmar (BCIM) Economic Corridor. These projects aim to improve transport and communication links within the region, promoting trade and investment.
  • Efforts to Combat Terrorism and Transnational Crime: The charter reinforces efforts to combat terrorism and transnational crime in the Bay of Bengal region. It provides a framework for sharing intelligence, coordinating law enforcement efforts, and combating terrorism financing.
  • Initiatives to Promote Sustainable Development: The charter supports initiatives to promote sustainable development and address climate change. It encourages the conservation of natural resources, the mitigation of climate change, and the promotion of renewable energy.

Connections and Context

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Historical Connections

The finalization of the BIMSTEC Charter is the culmination of a long process of regional cooperation that began in 1997. The establishment of BIMSTEC was a response to a perceived need for a sub-regional grouping that could promote economic and technical cooperation among countries in the Bay of Bengal region. Over the years, BIMSTEC has evolved from a primarily economic organization to one that also addresses security and environmental issues. The finalization of the charter represents a significant milestone in this evolution.

Future Outlook

The signing of the BIMSTEC Charter is expected to lead to enhanced regional cooperation and integration, with potential benefits for economic growth, security, and environmental protection. The organization may also expand its membership in the future, further strengthening its position as a leading regional grouping. The charter provides a solid foundation for BIMSTEC to address the challenges and opportunities facing the Bay of Bengal region in the years to come. The streamlining from 14 to 7 sectors will likely make the organization more efficient and focused in its efforts. With a clearer institutional framework and a renewed commitment from member states, BIMSTEC is well-positioned to play a significant role in shaping the future of the region. The success of BIMSTEC, however, will depend on the willingness of member states to translate their commitments into concrete actions and to work together in a spirit of cooperation and mutual respect. The effective implementation of the charter and the sustained engagement of all stakeholders are essential for realizing the full potential of BIMSTEC and achieving its ambitious goals.

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