BIMSTEC’s Digital Infrastructure: Paving the Way for Regional Economic Collaboration

Digital Public Infrastructure: A Catalyst for Economic Growth

In an increasingly interconnected global economy, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) stands at the forefront of creating a digital public infrastructure that serves as a catalyst for regional economic collaboration. The development of such infrastructure across BIMSTEC nations aims to enhance connectivity and bolster various industry sectors. This initiative provides a crucial platform for advancements in fintech, edtech, agritech, and e-commerce, driving socio-economic progress in the region.

Accelerating Technological Cooperation

To promote technological cooperation among its member states, BIMSTEC has accelerated the establishment of the Technology Transfer Facility (TTF). This facility is designed to foster knowledge sharing and cooperation in fields such as biotechnology, nanotechnology, and pharmaceutical technology. An agricultural technology transfer agreement is also in the works, which will facilitate the sharing of advanced farming tools and techniques tailored to the diverse agri-climatic zones within the region.

E-Commerce Expansion: Bridging Markets

BIMSTEC’s unique geographic positioning offers a significant advantage for expanding e-commerce within the region. A unified e-commerce platform, inspired by India’s Open Network for Digital Commerce (ONDC), is proposed to enable local artisans and manufacturers to access nearby markets more efficiently. To facilitate seamless transactions, there is a need to develop efficient local transportation methods and robust payment systems. A business-friendly regulatory framework will further support the growth of e-commerce, enabling the digital marketplace to thrive.

Empowering the Workforce Through Skill Development

With a young and dynamic workforce, BIMSTEC countries have the potential to unlock substantial economic growth through skill development initiatives. Currently, the region’s skill levels are relatively low, necessitating the enhancement of skills through cooperative models. BIMSTEC aims to establish training, apprenticeship, and vocational education facilities, develop mutually recognized certifications, and implement reskilling and upskilling programs. 

Digitalization as a Growth Driver

Digital infrastructure is pivotal in enabling the growth of multiple industry sectors. BIMSTEC countries are exploring the development of digital public infrastructure platforms that will facilitate cooperation in areas such as common documentation, trade facilitation, standards, and e-commerce. These digital platforms will streamline processes, reduce barriers, and enhance the efficiency of cross-border trade, thereby boosting regional economic integration.

Women-Led Development: Unlocking Potential

Empowering women in the BIMSTEC region is essential for achieving inclusive growth. There are disparities in women’s workforce participation and economic contributions across member countries. BIMSTEC aims to empower women as income earners by ensuring access to skill development, digital tools, financial services, and employment opportunities. Greater interactions among women from member countries will facilitate the exchange of best practices, creating a supportive ecosystem for women entrepreneurs.

Streamlining Trade Facilitation

According to the ADB report on BIMSTEC Trade Facilitation Strategic Framework 2030, several key actions have been identified to improve the cross-border movement of goods. These include the digitalization and automation of customs and clearance procedures, integration of relevant agencies into a unified system, expansion of risk management systems, and better compliance with international trade facilitation agreements. BIMSTEC aims to strengthen trade facilitation measures and move towards a digitally enhanced trade facilitation regime, where the systems of respective countries communicate seamlessly.

Fostering Digital Partnerships

BIMSTEC’s digitalization agenda prioritizes cross-border digital linkages and interoperability. The region can lead a digital payment system that enhances trade and commerce within the grouping. Furthermore, BIMSTEC countries can leverage the burgeoning digital economy of Southeast Asia, which is projected to reach up to US$1 trillion by 2030.

Conclusion

BIMSTEC’s role in creating a digital public infrastructure is pivotal for regional economic collaboration and integration into the world economy. By accelerating technological cooperation, expanding e-commerce, developing digital infrastructure, and empowering the workforce, BIMSTEC can drive a transformative digital journey that benefits all member states and positions the region as a significant player in the global economy.