• The Asian Development Bank started the South Asia Subregional Economic Cooperation (SASEC) programme in 2001. It is based in Manila, Philippines.
• Bangladesh, Bhutan, India, the Maldives, Myanmar, Nepal, and Sri Lanka are all taking part. They are a group of seven.
• The SASEC programme is a project-based partnership that aims to improve connectivity across borders, boost trade between member countries, and strengthen economic cooperation in the area.
With the help of the Asian Development Bank (ADB), many projects have been done in the fields of energy, transportation, trade easing, economic corridor development, and information, communications, and technology.
• Bangladesh, Bhutan, India, and Nepal came together in 1996 to form the South Asian Growth Quadrangle (SAGQ). The goal of this group was to improve cooperation in the areas of environment, energy and power, trade and business, transportation, and tourism. This group was made as a part of the South Asian Association for Regional Cooperation (SAARC) and was recognised by it.
• The ADB is the SASEC Secretariat. It works with member governments to help them build their skills and understanding, get technical help, and find development partners.
• Transportation: To develop and improve air, water, and land links between regions and within regions to boost trade and economic growth.
• Trade Facilitation: To reduce trade barriers like tariffs, speed up border customs processes, and lower the cost of trading between the partners.
• Energy: To make it easier to send energy across borders by trading power and building up capacity. SASEC will also work to improve cooperation in the areas of energy efficiency and the growth of clean power.
• Economic Corridor Development (ECD): ECD will be used to support synergies and links between economic corridors in SASEC countries to maximise development gains. It will also help connect transport assets to the growth of cities and industries. It will help make the most of chances to bring innovation into partnerships between the public and private sectors.
• The final goal of SASEC is to make a common market like the EU in their area.
Issues with SASEC
• Dependence on ADB: SASEC gets too much of its money from ADB, which could cause the group to be used to do projects that only help ADB.
• Perception of India’s Dominance: This may cause the group as a whole to fail because the other members may lose their sense of self. This picture of India as a big brother could also make the smaller members always see India as a threat to their goals.
• Human trafficking: This area is well-known for its high rate of human trafficking, and more open borders could make this problem much worse.
• Drug and gun trafficking: This area is known for drug and gun trafficking, and open borders could make this problem much worse. This is where the Golden Triangle is. This could also cause problems with terrorists in the area.
• The SASEC group hasn’t paid much attention to working together on security.
Suggestions
• The members of SASEC need to come up with their own way to pay for projects and help make the area better.
• India needs to change the other members’ ideas that it is the most important player in the group and help them see that they are all equal partners.
• There should be agreements about security steps in the SASEC area because this is a place where people, drugs, and weapons are often traded.
• People could spend more time getting to know each other’s cultures, which would help build trust and help SASEC become a shared market.
India and SASEC
Geo Strategic Benefits
• To counter China’s power in the region, the ADB has put a lot of money into this area, with help from Japan and the US. This will help India reduce China’s influence in the region.
• A group may be more effective than SAARC. Every time India and Pakistan have fought, SAARC has been hurt as a whole.
• Gives India better access to the North East. With help from the ADB, India is currently building two important road routes. Through the “chicken neck” area of North Bengal, the first road corridor will join India with Bangladesh, Nepal, and Bhutan. In the state of Manipur, the second road corridor will join India and Myanmar.
Economic Benefits
• Less restrictions on trade
India was able to get Bangladesh, Bhutan, India, and Nepal to agree to the Motor Vehicles Agreement. This will make it easier and faster for things to move around the area.
Using information, communication, and technology at trade checkpoints has helped cut down on the time it takes to clear customs.
Integrated Check Posts: Have improved Land Customs Stations at key border points with Bangladesh, Nepal, and Bhutan to make it easier for goods and people to move around in the sub area.
• East Coast Economic Corridor: This will help increase trade of India’s natural resources, such as coal and iron ore, and serve as a hub for businesses that extract raw materials and add value to them.
• Energy Trade: India has been able to come to many trade deals with SASEC countries like Nepal and Bhutan.
• Increase tourism by a lot: Because the borders between SASEC countries are more or less open, tourism in countries like India, Nepal, and Bhutan has grown a lot.
Environment Benefits
• Clean Energy: The SASEC region has a lot of promise to make clean energy, which will help protect the environment and keep nature alive.
• Sagarmala Initiative: SASEC will help the Sagarmala project, which is a big port-led development plan, because it will increase the chances of trade in South East Asia.
