Kesonyü Yhome, Kohima Village
The paradigm shift in New Delhi’s foreign policy in the early nineteen nineties echoes loud today. The “Look East” policy initiative that was sowed in 1991 promises to be a potent instrument that could change the economic phenotype of North East (NE) India.
India’s imperative to enhance engagements with the “East”, then, was grounded on manifold reasons – toiling under a threatening economic crisis, New Delhi’s attention turned to the fast emerging South East (SE) Asian economies; the need to garner more political international support for New Delhi’s stand on Kashmir; the urge to augment India’s role in the promoting international peace and stability in the region, and to build on ties with existing regional fora and other trade groupings.
Over a decade into its existence, the Look East policy has come a long way. While the first phase of the policy focused on South East Asia, the second phase seeks to cover most of Asia including the Far East and the Asia Pacific island-nations.
India and Regional groupings
India became a sectoral dialogue partner of the Association of the East Asian Nations (ASEAN) in 1991 and later in 1995 became a full dialogue partner thereby enabling her to become member of the Asian Regional Forum (ARF). ASEAN is a regional economic, social and cultural Cooperation, set up in 1967, comprising Myanmar, Laos, Cambodia, the Philippines, Indonesia, Malaysia, Thailand, Vietnam, Brunei and Singapore. India is now a Summit level partner of the Association.
India was a founding member of the Bay of Bengal initiative for Multi Sectoral Technical and Economic Cooperation (BIMSTEC) founded in 1997 along with Bangladesh, Sri Lanka and Thailand. BIMSTEC is now a seven member body with Myanmar, Nepal and Bhutan lately climbing on the Bay of Bengal bandwagon. The BIMSTEC initiative marked a watershed in India’s “Look East” policy and in linking South Asia with South East Asia.
The South Asian Association for Regional Cooperation or SAARC, the formation of which had in fact preceded the “Look East” policy initiative, hasn’t attained the desired respectability. The persistence of bilateral political differences within, since its inception in 1985, has hindered the Cooperation to meaningfully cooperate on any front! The member countries of SAARC include Bangladesh, Sri Lanka, Nepal Bhutan Maldives, Pakistan, India and Afghanistan (the latest member).
Initiatives
As a result of the decade-old policy enterprise, a host of initiatives had been put to test while handfuls are in pipeline.
New Delhi and Yangon (Rangoon) have established transnational road connectivity by linking Moreh in Manipur and Tamlu in Myanmar in 1995.In 2001 the 160 km. long India-Myanmar “Friendship Road” (Tamlu-Kalemyo-Kalewa road) was laid to augment connectivity between the two countries. Besides, the two Asian neighbours are getting ready to implement the Kaladan project that will serve to revive an old historic port at Sittwe (Akyab) on the northern coast of Myanmar and link it by road and river with southern Mizoram. Indian goods now travel round the Siliguri neck to reach the NE.This initiative will augment bilateral economic ties and reduce transit cost (for India) as well. The reluctance of Bangladesh to offer transit facilities to India has made the Kaladan Project a strategic initiative.
The Mekong-Ganga Cooperation (MGC) involving the Indo-Chinese countries including Thailand, Vietnam, Laos, Cambodia, and India sought to foster economic development in the Mekong region countries. The initiative aimed to promote new linkages in old economy areas like transport corridors and infrastructure development. The linkage between India and these Asian neighbours holds a bright prospect to foster economic development in the Northeastern part of India.
The Kunming Initiative launched in the western province of China, sought to link the Chinese province of Yunnan with Myanmar, Thailand and North East India in an economic grid. A closer economic cooperation between New Delhi and Beijing will help accelerate the development of the remote areas of the Asian giants- Tibet and Yunnan in China and Sikkim and the NE in India.
A bilateral trade through Nathu La (pass) linking Sikkim and Tibet has been reopened lately. About 50 km. from Gangtok, Nathu La was the route through which trade was traditionally carried between Indians and Tibetans (it was closed following the Sino-India war in 1962).Sikkim and the contiguous States can now plan a joint strategy to take maximum advantage of the new opportunities that the initiative might offer in the field of trade and investment. In the era of globalization, the initiative could also offer new vistas for the NE to engage with the Central Asian countries in due course of time.
India and Vietnam marked the 50th year of friendly bilateral engagement in the year 2004.The proposed railway link between New Delhi and Hanoi will undoubtedly give an impetus to connectivity and economic expansion of the NE with the South East Asian economies.
New Delhi, Yangon and Bangkok propose to lay down a trilateral highway linking the three countries from Moreh in Manipur through Myanmar to Mae Sot in Thailand to enhance connectivity and augment economic ties. Such a network could give the NE a further fillip to economic integration.
Developments vis-à-vis Look East
India and ASEAN have signed a “Peace, Progress and shared Prosperity” pact in the third round of the India-ASEAN Summit at Vientiane, Laos. This was a welcome development compatible with the Look East policy. Besides, the first India- ASEAN car rally (launched from Guwahati) and the decision for resumption of the Guwahati- Bangkok flight are both initiatives in the right direction.
Energy Diplomacy
Myanmar and Bangladesh are two critical Asian Countries affecting India’s geopolitics in many ways. Political, social, security and economic concerns are all part of the Indo-Myanmar-Bangladeshi wavelength.
A not so healthy Indo-Bangladesh relation has been an area of major concern affecting the interest of the North East. Indo-Bangladesh ties have not been in good shape ever since the assassination of Mujibur Rehman, the first Bangladeshi Prime Minister. The major irritants being the border dispute and the Bangladeshi infiltration into Indian soil, particularly in the NE, causing serious security and other social concerns in the region.
A friendlier Indo-Bangladesh relation could give a welcome breakthrough as Bangladesh offers a potential bridge between NE India and mainland India. Dhaka agreeing to trans-shipment of Indian goods across her territory will facilitate greater economic integration in the region. Besides, Bangladesh could offer her Chittagong port to the landlocked North Eastern states for commercial purposes. Most important, Bangladesh has an estimated reserve of huge gas resource, which could hence become a potential supplier to Indian markets. New Delhi and Dhaka need to exhibit greater economic farsightedness in order to savour mutual benefits.
On the eastern front, four North Eastern states share their borders with Myanmar. Myanmar is a strategic neighbour viewed from that quarter. Even otherwise, the ‘the China influence’ factor cannot be easily overlooked anyway. Besides, Myanmar offers a bridge between India and the South East Asia. Further, the Asian neighbour is also an energy-rich country. Hence closer economic ties with Naypyidaw, the new Myanmari capital, will help serve the energy needs of the vast sub-continent. A gas/oil pipeline running across the two countries will breed manifold benefits, more so for the NE, as it will enhance connectivity, boost economic cooperation, generate employment and facilitate people to people contact, hence cultural development.
A meaningful “energy diplomacy” with Dhaka and Naypyidaw will prove to be a boom for the region and a win- win situation for all the parties involved.
Free Trade Agreements
The South Asia Free Trade regime (SAFTA) among the SAARC countries has become operational since 2006.New Delhi has established a full- fledged Free Trade Agreement (FTA) with Sri Lanka. A Comprehensive Economic Cooperation Agreement (CECA) with Singapore has been finalized. New Delhi and Bangkok have signed an FTA on selected items that came into place in 2004 and a Comprehensive Free Trade on all items between the two countries is proposed to be in place by 2010. Besides, an ASEAN-India free trade agreement is being worked out. Hence, a free trade area involving India, ASEAN, and the ASEAN+3(China, Japan and S.Korea) countries might not be too far away either- the envisaged Asian Economic Community (AEC).
A comprehensive Free Trade regime in the Asian continent will inevitably foster trade relations in the region with tariffs nose-diving. And the North-East, which offers terrestrial continuity and connectivity in the region, can become a commercially strategic centre. With enhanced connectivity and trans-national business, the local skills and economy of the region will surely receive a fervent shot in the arm. A cautious approach to free trading can indeed spell good results for the region.
North East India – A huge potential
The NE region holds fathomless unexplored resources-natural, manpower and skill- that await to be harnessed. The region can become a potential tourist destination and eco-tourism holds the key to sustainable economy in the region. The Northeast is one among the world’s 25 biodiversity hot spots. Besides, with investment and economic expansion and integration, small and medium scale enterprises (SMEs) can be upgraded which will catalyse rural socio-economic development in the region. Local skills including handicrafts, embroidery, handloom, finished goods like decorative articles all promise lucrative market. Further agro-based and forest-based enterprises including herbal medicine, food-processing, horticulture, sericulture, fisheries, saw-mills etc. are all potential areas to boost economic growth.
A meaningful free trade regime is only an initial leap towards economic expansion. With enhanced economic integration, other developmental initiatives including connectivity- road, rails, and air links; telecommunication; investment; infrastructure; job opportunities and sustainable employment will follow suit. A dynamic tourism sector will in turn help foster the hotel and infrastructure sectors. All these can turn the geographically remote and economically sub-developed North East into a commercial hub and an economic centre between Central and South Asia and the South East and East Asia.
New Delhi and the NE have always played the ‘blame game’ for the economic plight of the region. To set the record straight, none of the parties has genuinely attempted to bell the cat. On the one hand, New Delhi has invariably shied away from opening the Eastern offshoot to the Asian neighbours, apparently presuming that doing so will tantamount to opening the political Pandora’s box. The policy hasn’t worked quite well though; it is therefore imperative to exhibit pragmatism and flexibility. The time has come to shift gear and switch policy. On the other hand, the governments of the North East have shown no less political apathy. The time is ripe and the onus is on both the parties to pull out all the stops and deliver the goods.
The “Look East” policy promises a huge potential that could open up an array of new vistas for the NE region. The policy initiative needs to be taken to its logical conclusion.
