By Upasana Hembram
In the last decade, there has been a seismic shift in the global order from Western economies to Asian economies in terms of economic growth. As per the 2016 World Bank report, the South Asian region has become an important player and is recognised as an economic powerhouse with remarkable development along with its ability to attract foreign investments.
In a ploy to boost cooperation in the region, Indias Cabinet Committee on Economic Affairs (CCEA) approved Rs. 1630 crore, last week, for enhancement of a 65 km road project between Manipur and Myanmar. This decision will expedite the road connectivity program of South Asian Sub-regional Economic Cooperation (SASEC). It will also be a progressive step in the development of the Great Asian Highway, a 1400 km network of roadways connecting 32 Asian countries.
What is SASEC?
SASEC initiative, launched in 2001, brings together Bhutan, Bangladesh, Nepal and India (BBIN), the Maldives, Sri Lanka and Myanmar. It intends to boost cross-border cooperation in six priority sectors trade, transport, information and communication technology (ICT), investment and private sector cooperation, energy and power, and the environment.
Being developed with assistance from Asian Development Bank (ADB), the project-based partnership focuses on promoting regional prosperity, improving economic opportunities and providing a better quality of life to the people in the region.
The road travelled so far
To establish sustainable growth of South Asia in a climate of global uncertainties and challenges, SASEC is integral to enhance regional cooperation. SASECs Trade Facilitation Sector Strategy and SASEC Energy Sector Strategy focus on upgrading infrastructure and promote intra-regional exchanges and cooperation.
Other notable projects include North Eastern State Roads Investment Program in India, SASEC Road Connectivity Project in Nepal, SAARC Road Connectivity Project to upgrade international road corridor in Bangladesh, BBIN Motor Vehicles Agreement (MVA) for seamless cross-border movement of vehicles and goods, Bangladesh-Bhaka-Chittagong Expressway Public-Private Public Design Project, and Air Transport Capacity Enhancement Project.
India A passage for connectivity
Indias geographic position in South Asia makes it the only country that shares physical boundaries with all states in the region. It further functions as a bridge between South-East Asian economies and South Asian states, including landlocked countries of Nepal and Bhutan.
An important aspect of Indias connectivity projects is that it focuses on its policy towards integrating the east. This demonstrates Indias commitment towards its Act East Policy, launched in November 2014 to build close-knit relations with ASEAN nations. Partnership in this region will promote the growth of regional trade via improved connectivity that will facilitate smooth cross-border movement of goods as well as passengers thereby reducing transport costs and time.
A response to China?
This development in SASEC project comes against the backdrop of Chinas ambitious geostrategic initiative labelled One Belt One Road (OBOR), now known as Belt & Road Initiative (BRI). The project proposes to connect countries from Asia to Europe through a network of rail routes, highways, oil and gas pipelines, sea lanes and port infrastructural projects. For China, this is not just an economic drive but a long-term vision of securing its continental, maritime, and geo strategic domain.
BRI is an integral part of its economic strategy to dispose of its problem of labour surplus in its domestic industries. Besides exporting skilled and partially skilled manpower, China will also provide for the vast amount of capital and construction materials required for BRI, solving its problem of an overcapacity of unused capital. In addition, even the funding of BRI is undertaken by the Chinese led Asian Infrastructure Investment Bank (AIIB).
The BRI- SASEC face off
India is critical of China-Pakistan Economic Corridor (CPEC), an indispensable element of the BRI, as it passes through Gilgit and Baltistan regions of Pakistan-occupied Kashmir (PoK). While BRI is disguised as a harbinger of reverse colonisation, SASEC symbolises collective power among developing countries. SASEC rekindles the role of regional collaboration as a catalyst for growth and development.
India is currently engaged in developing two road corridors under SASEC initiative. One of them shall connect India and Nepal, Bhutan and Bangladesh through the sensitive and heavily patrolled Siliguri corridor also known as chicken neck area. The other will connect India and Myanmar. In line with its ‘Act East Policy’ and with ADB as its primary financial aid, India is also developing East Coast Economic Corridor (ECEC) along its eastern coast to establish connectivity with East and Southeast Asia.
Enhancing connectivity across all dimensions physical, regional, institutional and cultural with the south Asian community as well as the rest of Southeast Asia is a strategic and progressive move towards growth and prosperity. This popular imperative of enhancing physical connectivity is paving way for an economic transformation in the Asian market.
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