Japan cautious of BIMSTEC’s future
By Samantha Whybrow
Japanese officials, while supporting the idea of the Bay of Bengal Initiative of Multi-Sectorial and Technical Cooperation (BIMSTEC) in principle, have noted that the Japanese government has not paid much attention to the organization, while sending a message to the member countries, to ensure that they do not allow the region to become an arc of instability.
The Japanese delegates were speaking with other BIMSTEC representatives at a day-long workshop held last week in Colombo on “Towards BIMSTEC-Japan comprehensive economic cooperation: Sri Lankan Perspective”.
“It is necessary to ensure the ‘arc of advantage and prosperity’ in Asia, does not become an arc of instability,” said Professor Shigeru Tsumori, of Toyo Eiwa University, Japan.
Tsumori emphasized the fast emerging reality that Asia is becoming the leading growth centre of the global economy. Economic linkages that include bilateral and regional arrangements, as well as initiatives for greater regional integration, are supporting this growth.
BIMSTEC—whose members include Bangladesh, Bhutan, India, Mynmar, Nepal, Sri Lanka, and Thailand—is one such initiative intended to link South and South East Asian countries, to assist the development of a free trade arrangement, by concentrating on activities facilitating trade in goods, services and investments.
Yet, Tsumori cautioned that this arc of potential prosperity could become an arc of instability, highlighting certain issues that needed to be addressed amongst BIMSTEC nations, if Japan were to become a fully supportive member.
Tsumori agreed with the conclusion of a research paper from the Institute of Policy Studies (IPS) of Sri Lanka—presented at the workshop—stating that, “a lot of work needs to be done to get BIMSTEC’s own house in order, before countries like Japan would even be interested in getting involved in such an agreement. Low trade coverage, high transactions costs to trade, and existing FTAs [between Japan and Thailand and the pending agreement with India] are cases in point.”
The ambassador of Japan in Sri Lanka, Kiyoshi Araki, addressing the delegates as the guest of honour, also emphasized the need for democratization, peace, stability and development in Asia, that could be facilitated through BIMSTEC members.
It has been 10 years since the organization was founded and the member nations are looking towards Japan for some much needed revitalizing energy.
“The start for deep economic cooperation has been slow in BIMSTEC, compared with other regional groupings,” said the Executive Director, IPS, Dr Saman Kelegama, in his welcoming address. Dr Kelegama went on to describe how “the potential infusion of fresh blood”, in the form of Japan, would be of great assistance to compensate for slow development.
The BIMSTEC region has a combined GDP of US$ 940 billion with a population of 1.3 billion, hence, the potential for regional trade agreements is vast. The group aims to increase intraregional trade but also, to promote economic and political stability. The main sectors of focus are Agriculture, Cultural Cooperation, Environment and Disaster Management, Public Health, People-to-People contact, Poverty Alleviation, and Counter-Terrorism and Transnational Crimes.
Japan is viewed by member countries as playing an important role in boosting economic cooperation in the region. This is particularly through the provision of technological innovation via technological transfer and foreign direct investment. The member countries are also hopeful that Japan could provide assistance in building transport infrastructure.
According to the IPS, Japan’s entry into an economic agreement, would also boost competition in the region and act as a catalyst for upgrading quality and standards of production and service supply.
While the Japanese representatives were non-committal, they did agree that BIMSTEC was important. “I fully agree with the vision of BIMSTEC,” said Tsumori, adding, “This idea of getting Japan involved should be done at an official level.”
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