SAARC and BIMSTEC: Navigating regional cooperation

Established in 1985 with the aim of regional cooperation, integration and socio-economic development of its member countries and the region as a whole, South Asian Association for Regional Cooperation (SAARC), as of now, is a “zombie” organization that could only be technically said to be operational; its spirit, ambitions and zeal dead as no progress has been made in its mandate. Upon its foundation, SAARC’s main goals included enhancing the well-being of South Asians, advancing their quality of life, fostering economic growth, social progress, and cultural advancement, ensuring dignity and realizing full potential for all individuals, and furthering collective self-sufficiency. However, despite having great potential as an intergovernmental organization to uplift the entirety of the South Asian diaspora, SAARC’s performance in recent times is underwhelming at best and utterly disappointing at worst.

Failure of SAARC

SAARC currently finds itself in a state of inertia, lacking clear direction and meaningful mandates for the future. This stagnation can be attributed to a multitude of factors plaguing the organization. Foremost among these are the longstanding bilateral conflicts, notably the deep-rooted animosity between India and Pakistan, which overshadows SAARC's agenda and hinders consensus-building among member states. The Indo-Pak conflict deeply impacts SAARC, hindering its functionality by causing recurrent tensions that divert attention from its agenda, fostering insecurity and instability in South Asia. This cycle of suspicion undermines cooperative efforts within SAARC, exacerbated by India’s dominant position in the region, which complicates efforts to promote equality. 

The last SAARC Summit was scheduled to be held in Islamabad, Pakistan, in Nov 2016. However, it was indefinitely postponed due to escalating tensions between India and Pakistan. The URI surgical strike, which occurred on 29 Sept 2016, led to heightened military activity along the Line of Control (LoC) and exponentially increased the already dense diplomatic hostilities between the two countries. This ultimately led to the cancellation of the summit. The ongoing bilateral conflicts and diplomatic hostilities between India and Pakistan have since prevented the resumption of SAARC summits, underscoring the organization's challenges in fostering regional cooperation amidst deep-seated geopolitical rivalries.

Further adding to this issue is a pervasive lack of trust among member nations, stemming from historical grievances and competing geopolitical interests. Political instability and governance challenges within member states further detract from regional cooperation efforts, while economic disparities limit the scope for mutually beneficial initiatives. SAARC’s institutional capacity is also hampered by weak administrative structures and bureaucratic inefficiencies, exacerbating its inability to deliver tangible outcomes. External interference from global powers and regional actors seeking to advance their own interests further complicates SAARC’s ability to pursue an independent and coherent agenda. Collectively, these challenges render SAARC a ‘zombie organization’, struggling to navigate a complex landscape fraught with obstacles to meaningful regional cooperation and development.

Amidst the failure of SAARC to fulfill its mandate, India to strengthen its geopolitical grasp in South Asian region as well as Southeast region made a strategic move by extending invitations to the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) leaders to the BRICS summit held in 2016 at Goa. This move signaled a major diplomatic shift, showcasing India’s willingness to turn to BIMSTEC in response to SAARC’s ineffectiveness at meeting its expectations. Subsequently, the Indian Prime Minister engaged in a bilateral meeting with BIMSTEC leaders. Since then, the member states have been reluctant to resume the SAARC summit. India has been consistently participating in the BIMSTEC summit, looking to establish it as a formidable alternative regional platform for the five SAARC nations to discuss sub-regional cooperation.  

Rise and Significance of BIMSTEC

BIMSTEC was established on 6 June 1997 through the Bangkok Declaration. At present, BIMSTEC consists of seven member states out of which five member states are also the member of SAARC namely, Bangladesh, Bhutan, India, Nepal, Sri Lanka and two member states are from Southeast Asia, namely Myanmar and Thailand. Basically, BIMSTEC is a sector-driven institution unlike SAARC and many other regional alliances. Since its establishment, fourteen priority sectors of cooperation have been identified through the BIMSTEC ministerial summit held on different occasions. These sectors are trade and investment, transport and communication, energy, tourism, technology, fisheries, agriculture, public health, poverty alleviation, counterterrorism and transnational crime, environment and disaster management, people-to-people contact, cultural cooperation and climate change. The member countries of BIMSTEC  lead these sectors which are divided among them. They meet at different levels, like BIMSTEC summits, ministerial meetings, senior officials’ meetings, and expert groups.

BIMSTEC, as a trade bloc, presents numerous opportunities as the combined GDP in the region is around $2trn which is likely to grow exponentially in the near future. Among the member states, Myanmar’s intra-BIMSTEC trade accounts for approximately 36.14 percent of its overall trade, while Nepal and Sri Lanka have intra-regional trade shares of roughly 59.13 percent and 18.42 percent respectively. Bangladesh’s intra-BIMSTEC trade share stands at 11.55 percent, whereas India and Thailand have shares of around three percent within the BIMSTEC. 

Could BIMSTEC be an alternative to SAARC?

SAARC is a purely regional organization characterized by member nations sharing a collective history, geographical closeness, shared cultural identity and regional values. The member countries of SAARC are bound not only by historical ties but also by common developmental challenges, necessitating collaborative efforts for effective resolution.

Conversely, BIMSTEC serves as a bridge between South Asia and Southeast Asia, leveraging its potential to connect the economies of both regions. By integrating South Asia with the vibrant economies of ASEAN, BIMSTEC acts as an inter-regional organization facilitating economic cooperation and trade. Its scope extends beyond the confines of South Asia, embracing a broader regional outlook.

SAARC and BIMSTEC are not interchangeable options or substitutes for each other. Rather than viewing SAARC and BIMSTEC as competing entities, it is more appropriate to recognize them as complementary frameworks with distinct but mutually reinforcing objectives. SAARC’s emphasis on intra-regional cooperation complements BIMSTEC’s inter-regional connectivity aspirations. The collaborative efforts within SAARC pave the way for addressing common developmental challenges, while BIMSTEC’s outreach to ASEAN economies opens avenues for enhanced trade and economic prosperity.

The authors are a law student at Kathmandu School of Law