Politics of Economic Corridors in South Asia

Areeba Arif

Abstract

Rise of Asia has necessitated the greater interconnection and economic

integration around the globe. The scope of development is not limited to a
nation or a particular region only, in fact, it is taking place across nations as
well as regions and sub-regions in Asia. The concept of ‘Economic Corridor’
is used to explain this phenomenon of connectivity. Economic corridors work
as a catalyst for regional integration and a driver for inclusive growth by
bringing underdeveloped regions into the upward growth trajectory. South
Asia is characterised with booming economic growth while economic
corridors are playing the role of a catalyst for regional and economic
integration. However, such corridors are also creating many political
challenges in the region. Hostility among the regional states is a critical
factor. In this background, this paper analyses the shaping of economic
corridors along regional transport routes and tries to address this question
as to how industrial expansion and assortment can bring vibrant change in
the region. Moreover, the role of economic corridors is being discussed as a
key factor for regional integration in South Asia. The paper also addresses
the key political challenges in the implementation of these networks. While
discussing the Belt and Road Initiative (BRI), the China-Pakistan Economic
Corridor (CPEC) and the Bangladesh-China-India-Myanmar Economic
Corridor (BCIMEC) are the main focus of this paper.

Keywords: Economic Corridor, BRI, CPEC, BCIMEC, Regional

Integration, Connectivity.

Introduction

Economic corridors derive benefit from a well-functioned transport

network along with high-quality infrastructure and logistics, which
provide useful links to the production centres and urban bodies along with
providing easy access to the international market within a defined
geography. Similarly, they also play an essential role in transforming the

The author is Research Associate at the Institute of Strategic Studies Islamabad.

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 Strategic Studies

existing transport corridors into economic corridors, which help facilitate

the trade-related activities. For instance, they made business and
implementations of non-tariff measures simpler. The economic corridors
also play a significant role in the promotion of economic growth by
reducing the obstacles in the communication networks, making market-
access easy, invigorating trade-related activities, advancing the competence
with the help of economic networks and with rising effects of
agglomeration. They create an opportunity for private investors to invest
that, later on, generates an incentive for employment. Moreover, the
economic corridors provide an opportunity to the under-developed regions
to link their economies with cities and towns who have urban centres and
industrial cluster for economic expansion.1

The land locked countries have always faced the challenges of

connectivity and huge costs for transport networks, which have proven to be
the key detriment in their economic development. However, the promotion
of regional trade and bilateral agreements among their transit neighbours
through economic corridors can help them overcome the issue of
connectivity. In this regard, the geographical proximity of South Asia is
very distinctive. Moreover, in recent years, this region has become more
open towards regional cooperation. In the past two decades, all the South
Asian nations have undergone a number of trade reforms and have rapidly
integrated the world economy. Now, the regional countries are emphasising
on sustaining a vibrant economy growth at both domestic and international
levels as they are paying great attention to upgrading the transport networks,
especially the expansion of highways, which is more attractive for the
business and in creating economic connections with the world markets.

In the contemporary era, economic ties are playing a significant role in

determining the diplomatic relation and foreign policies of the nations.
During the last four decades, China has achieved a special status in the
world economy due to its sustainable growth and economic development.2
The role of the Chinese economy and its influence on global governance has
further improved after the 2007-2008 global financial crisis. Being China’s
neighbour, South Asia has a strategic advantage to enhance its engagements

1
Prabir De and Kavita Iyengar, ed., Developing Economic Corridors in South Asia
(Mandaluyong: Asian Development Bank, 2014).
2
Andrew Small, The China Pakistan Axis: Asia’s New Geopolitics (New York:
Oxford University Press, 2015), 13.

74
 Politics of Economic Corridors in South Asia

with rising Beijing.3 The People’s Republic of China (PRC) is playing a

pivotal role in the regional integration. It is involved in building a chain of
six economic corridors to connect about 64 countries of this world under the
Belt and Road Initiative (BRI).4 The six corridors are the China-Mongolia-
Russia Economic Corridor (CMREC), the New Eurasian Land Bridge
(NELB), the China-Central and West Asia Economic Corridor (CCWAEC),
the China-Indo-China Peninsula Economic Corridor (CICPEC), the China-
Pakistan Economic Corridor (CPEC) and the Bangladesh-China-India-
Myanmar Economic Corridor (BCIMEC).5 Economic cooperation in South
Asia is of utmost significance and it will also help Afghanistan to get out of
the isolation and other landlocked countries such as Nepal and Bhutan will
also get an opportunity to link their economies with other economies of the
region and world as well. Among all these corridors two corridors the CPEC
and BCIMEC pass across South Asia.

At a time when economic cooperation and regional integration is

important for the entire region and the world, this study delves into an in-
depth analysis of the economic corridors while addressing two main
questions a) How will these corridors facilitate regional connectivity? b)
What are the possible challenges for the economic corridors?

This paper is divided into three main sections. The first section will
analyse the significance of regional connectivity and corridors, the
second section will focus on the corridors in South Asia and their
importance, which is followed by a section on major challenges and
issues these corridors are likely to face in the near future. The prime
focus of this research will be on the CPEC and BCIMEC.

Belt and Road Initiative

Owing to the growing importance of regional connectivity, in 2013, China

introduced BRI with an idea of the economic integration of 60 countries and
beyond.6 The “Belt” indicates the economic belt of Silk Road, which is
3
Ibid.
4
Tai Wei Lim, Henry Chan and Katherine Tseng Lim, Chinas One Belt One Road
Initiative (New Jersey: Imperial College Press, 2016), 18.
5
Ibid.
6
William A Callahan, “China’s ‘Asia Dream:’ The Belt Road Initiative and the New
Regional Order,” Asian Journal of Comparative Politics, no. 3 (Spring, 2016): 226-
43, doi:10.1177/2057891116647806

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 Strategic Studies

providing a land route to the countries.7 Whereas, the “Road” refers to as

the Maritime Silk Road of the 21st Century. These routes will provide the
transportation network to the countries adjacent to the South China Sea and
the Indian Ocean from the Eastern coast of China.8 BRI is a part of China’s
“Go out Foreign Investment Policy.” According to the policy enterprises run
by the government, the country will invest abroad. With the help of BRI,
China would emerge as the largest developing nation and a leader of South-
South cooperation. It is estimated that more than 60 per cent of the global
population lives in countries along the BRI routes, which suggests huge
economic incentives to the Chinese enterprises when BRI would be
implemented.9

BRI is not only beneficial for China but it is also crucial for the other
economies situated along the “Belt” and “Road.” BRI provides a room
for other countries to cooperate and participate in the initiative.
Moreover, it will not only help them in economic integration but it will
also facilitate the trade-related activity, improve economic connectivity
and strengthen people-to-people contacts. Since the world is moving
towards multipolarity, BRI surfaces as a promising development. It will
strengthen the trends of economic globalisation, promote cultural
diversity and ensure smooth working of a global free-trade regime.10 The
basic aim of BRI is to ensure the free flow of trade, deeper integration of
markets and encourage other countries to engage into the multilateral
economic activities while moving them forward to creating a regional
economic order, which benefits all. Successful implementation of BRI is
not only in the interest of the regional countries but it will broadly
benefit the entire world community. Based on the common good of
individuals and societies, it will help figure out new models of global
governance and international cooperation and will help accelerate the
pace of development.

China’s economy is deeply integrated into the world’s economy. It

will try to sustain its policy of “opening up” for this purpose, therefore, it

7
Tian Jinchen, “Introduction of the Overland Silk Road and Maritime Silk Road,”
(McKinsey & Company, July, 2016), 36-37.
8
Ibid.
9
Gisela Grieger, One Belt, One Road (OBOR): China’s Regional Integration
Initiative (Luxembourg: European Parliament, 2016), 45.
10
Ibid.

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 Politics of Economic Corridors in South Asia

is trying to build a pattern of connectivity all around the world. This kind
of deeper integration is possible through a gigantic economic venture
like BRI and in the long run, BRI will help China create economic
interdependency within Asia, Africa and Europe. On the other hand, it is
also a matter of time that how China will shoulder international
obligations and responsibilities within its capabilities by trying to make a
greater contribution towards global peace and development.

The CPEC and BCIMEC hold greater significance under the framework
of BRI. If these two projects are linked together, they will move the region
into a new arena of economic development. Unfortunately, though, both the
projects are facing many challenges. Antagonism among the South Asian
states, especially between India and Pakistan, is a major impediment.

Map No. 1

Source: “South Asia: A Bump in the Belt and Road,” Startfor, May 16, 2017,
https://worldview.stratfor.com/article/south-asia-bump-bel

77
 Strategic Studies

China-Pakistan Economic Corridor

China and Pakistan are considered as all-weather friends and, now with the
advent of the CPEC, this cooperation is moving into the economic domain
as well. The CPEC is a flagship project of BRI and it is scheduled to be
completed by 2030 as per planned by the Chinese government. This
flagship project is the first major investment of China under BRI. Initially,
China decided to give US$46 billion to Pakistan to build the CPEC but now
it reaches up to US$62 billion.11

The CPEC is an initiative for deeper economic integration in

Pakistan and it comprises of various rail and road networks. It not only
includes the land routes from Gawadar to Kashgar but also includes a
Maritime Silk Route.12 The route will be cost-effective; will provide easy
access to China from Gawadar to the Indian Ocean, the Middle Eastern
States and up to the regions of Africa and Europe.13

The primary behind the project is to connect the least developed

region of Xinjiang to Gawadar in order to get the maximum economic
benefits. Successful implementation of this project will not only help
China but it will create avenues for the development through the network
of roads, railways and number of pipelines. The road network will be
2700 km extending from Gawadar to Kashgar.14 The CPEC also includes
a motorway stretching from Karachi to Lahore and it will cover the
distance of some 1100 km and it will be in addition to the already
existing Karakorum Highway (KKH), which is stretching from Kashgar
through Khunjrab Pass and all the way to Islamabad. 15 Extension of
Karakorum highway from Rawalpindi to the border of China is also
included. Pipeline networks will be used for the transportation of oil and
liquefied natural gas from Iran and Gulf countries. 16 Railway network
will be built between Karachi and Peshawar as there is no direct railway
11
Small, The China Pakistan Axis, 28.
12
Xiangming Chen, S K Joseph and Hamna Tariq, “Betting Big on CPEC,”
European Financial Review, February 10, 2018,
http://www.europeanfinancialreview.com/?p=21658
13
Ibid.
14
Khalid Rahman, “China-South Asia Communications under BRI: The CPEC
Model,” Policy Perspectives 15, (1): 63-79, doi:10.13169/polipers.15.1.0063
15
Ibid.
16
Ibid.

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 Politics of Economic Corridors in South Asia

line from Peshawar to Taunsa, despite old plans to build one. People can
travel by road from Peshawar to Taunsa and then take the train to
Karachi via Jacobabad and Larkana. However, this link will not only
save time but it will be cost-effective.

Along with the regional connectivity, the CPEC will also produce a
number of opportunities for Pakistan and result in the cultural exchange
among the regional countries. There must be a broader understanding
that the CPEC is a multi-sectoral project and limited not only to one area.
For this reason, the security of this project is very important. To ensure
this, the Pakistan Army is playing a significant role, currently, is in the
process of formation of a separate division comprising 70,000 military
personals.17

Bangladesh-China-India-Myanmar Economic Corridor

In recent years, the Asian nations are more directed toward the regional and
trans-regional integration in order to develop their economies and create
more connectivity with the world. The BCIMEC is one of the proposed
corridors which generated more interest and concerns as well. The corridor
will be 2800 km long and stretch through the Kolkata via Benapol/Petrapole
along with India-Bangladesh border to Dakka and Sylhet before entering in
India near Silchar in Assam.18 It will pass through the Imphal and then it
will move to the Tamu-Kalewa Friendship Road in Myanmar.
Subsequently, it will cross Mandalay and Lashio and it will reach Kunming
via Ruili, Longling and Dali.19 The four governments (Bangladesh, China,
India and Myanmar) have also, in principle, agreed to establish air links,
water-ways connecting port cities, power transmission lines and oil pipeline
along the route.

The corridor goes beyond physical connectivity through roads, railways,

waterways and air to providing digital connectivity, trade facilitation and

17
Small, The China Pakistan Axis.
18
Joshua C Thomas, “BCIM Economic Corridor: Opportunities, Obstacles, Options
& the Road Ahead,” in BCIM Economic Cooperation, ed., Gurudas Das, Joshua C
Thomas (India: Routledge, 2018), 356-392.
19
Patricia Uberoi, “The BCIM Economic Corridor: A Leap into the Unknown?,” Institute
of Chinese Studies, November 2014, 9,
https://www.icsin.org/uploads/2015/05/15/89cb0691df2fa541b6972080968fd6ce.pdf

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 Strategic Studies

lowering barriers for smooth and seamless movement of goods, services,

investment and people. It is that the region is rich in natural, mineral and
other resources. This corridor covers the maximum area of 165,000 km2
with 440 million population. 20 The corridor has the capacity to create
economic benefits for all the countries who are party to it. This corridor
aspires to revitalise the ancient trade route of Southern Silk Road, which
will provide the shortest passage between India and China as, in the past, it
served as a highway for the merchants.21

Significance of CPEC and BCIMEC for South Asia

The CPEC and BCIMEC are very important projects under the
framework of BRI, having a great many economic benefits for the
region. The CPEC will open up the opportunity for Pakistan to amass the
economic benefits not only from China but also from Russia, Central
Asian Republics (CARS) and the South Asian states such as Bangladesh,
Sri Lanka and Nepal. The CPEC also attaches great significance to the
promotion of peace and prosperity all across the region of South Asia.
To ensure the peaceful coexistence, all important stakeholders of the
region should be taken on board. These states may be able to convince
these countries for peace and ending the disputes among them.
Moreover, it will help to create an enabling environment to foster
corridor development and facilitate the trade and people-to-people
contact, which is complimentary for the corridor development.
Furthermore, at this point in time, it is crucial for Pakistan to get
maximum benefits of the CPEC in a peaceful and secure environment.
To achieve this fundamental aim, it is very important to engage in the
peace talks with Afghanistan and, in lieu of India-Pakistan tensions, both
states need to sit together in order to resolve their disputes through
peaceful dialogue.

Afghanistan supports the CPEC, which will enhance the trade with
Pakistan and the other South Asian countries and also with China and
other neighbouring countries since Afghanistan could become a transit

20
Mustafiz ur Rahman, “BCIM-economic Corridor: An Emerging Opportunity,”
Daily Star, March 15, 2014, http://cpd.org.bd/wp-content/uploads/2014/03/Daily-
Star-Page-52-March-15-2014.pdf
21
Ibid.

80
 Politics of Economic Corridors in South Asia

hub in the “Belt” and “Road” region.22 It is imperative for Afghanistan to

join the CPEC to develop its dwindling economy after the four
consecutive decades of war.23

By joining the CPEC, India will be in a position to accrue economic

benefits. For example, the CPEC will help the Northern part of India to
enhance its trade ties with Afghanistan, The CARs, Russia, China and with
the countries in Europe. However, it is possible only if there is peace and
harmony between India and Pakistan. Consequently, to get the maximum
potential out of the CPEC, it is imperative for Pakistan, India and
Afghanistan to resolve their disputes in an amicable manner.

In the same manner, the BCIMEC aims at constructing inter-regional

road network, which will allow the participating countries to utilise the
enduring reciprocities in trade, both in products and services sectors.
Bangladesh and Myanmar will together lay down the foundations for the
economic connectivity. This cooperation will create opportunities for
Bangladesh in many ways. For instance, Myanmar is in the process of
setting up a special economic zone, which will offer the incentive to
Bangladeshi firms to invest in the country for advancing its economic
ties with its neighbouring country. With the recent discovery of the gas
reserves in Rakhine state, many new avenues of industrial development
have been opened for economic cooperation. The corridor will help
enhance the trade ties will also help to increase the people to people
contact, stimulate the trade and investment and will play a major role in
poverty alleviation in the region. Moreover, it will also work as stepping
stone for the settlement of “Rohingya crisis” between Bangladesh and
Myanmar.24

The BCIMEC will also help Bangladesh in energy trade. The energy
generation capacity of Bangladesh was 10,289 MW in 2014 and only 62 per
cent of the population had access to the electricity with 321 KWH per
annum.25 Because of this shortfall of energy Bangladesh has already started
importing energy from India and successful implementation of the BCIMEC

22
Anurag Ram Chandran, “Why Afghanistan Should Join CPEC,” Diplomat, May
5, 2017, thediplomat.com/2017/05/why-afghanistan-should-join-cpec/
23
Ibid.
24
Thomas, “BCIM Economic Corridor.”
25
Uberoi, “The BCIM Economic Corridor.”

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 Strategic Studies

will take this cooperation to new heights.26 It is imperative for Bangladesh

to immediately start trading with Myanmar since it is going to develop
hydropower in the state of Rakhine.27

If demographic aspects are taken into the consideration, a huge

population of China, India, Bangladesh and Myanmar are under 25 years
and according to the estimated percentage it comprises of 51.1 per cent
Bangladesh, 31.8 per cent China, 46.6 per cent India and 44.7 per cent
Myanmar. 28 This increasing youth bulge has the potential to play a
considerable role in enlarging the avenues of connectivity. Economic
growth and human development in the region can help to transfer them into
the innovators, developers and entrepreneurs and an asset for the peace and
prosperity in the region.

The successful development of the BCIMEC is going through a

crucial phase and it will take some time in its implementation. For a long
run, cooperation among the member countries is imperative and they
should work for durable and comprehensive development, which will help
to define this geographical proximity and economic interdependence into
the dynamic economic ties and social harmony and prosperity of the
region.

Connectivity will stimulate the rapid economic growth in the region and
will increase the strong cooperation among the nations of South Asia and
South-East Asia. Maximum benefits from the BCIMEC can be expanded
only when there is mutual collaboration and understanding on the policies
and plans for common development and benefits. In future, a new arena of
development for the entire South Asia region will emerge if the CPEC and
BCIMEC are linked together. Economic benefits through these corridors
will be multiplied.

26
Ibid.
27
Ibid.
28
Karim, Mohd Aminul and Faria Islam, “Bangladesh-China-India-Myanmar
(BCIM) Economic Corridor: Challenges and Prospects,” Korean Journal of Defence
Analysis 30, no. 2 (2018): 283-302.

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 Politics of Economic Corridors in South Asia

Issues and Challenges

a) CPEC

i. Regional and Internal Security Challenges

Regional security dynamics is one of the key challenges to project

especially in the context of Afghanistan. Rapid economic development
depends on political stability and peace in Pakistan, Afghanistan and
some western parts of China.29 In order to achieve peace in Afghanistan,
China is helping bring the Afghan Taliban to the negotiating table under
the regional frameworks and one of them is US-China-Pakistan-
Afghanistan quadrilateral mechanism.30

The security situation in Afghanistan is already grave and has been

predicted to deteriorate worse after the withdrawal of NATO forces. 31
Recently, the US has also announced to pull-out its troops from the country
while the Taliban are not ready for negotiations under this quadrilateral
dialogue. Still, it is unclear whether the Taliban will come to the negotiating
table or not. 32 Peace in Afghanistan is of utmost significance because
instability in Afghanistan will adversely impact the development and
economic prosperity of the region.

Another potential challenge to the CPEC will be the hostile attitude of

the public over the inclusion of India to the CPEC. Although the internal
security situation in Pakistan has improved after the number of operations
against the militants and extremists in the country, still it is a major
challenge to the project. Furthermore, security will remain a hinge for the

29
Riaz Ahmed and Hong Mi, “China-Pakistan Economic Corridor and its Social
Implication on Pakistan: How Will CPEC Boost Pakistan’s Infrastructures and
Overcome the Challenges?,” Arts and Social Sciences Journal 8, no. 2 (2017),
doi:10.4172/2151-6200.1000265
30
Haroun Mir, “China Should Work with US, Pakistan to Stabilise Afghanistan,”
Asia Times, May 24, 2018, http://www.atimes.com/china-should-work-with-us-
pakistan-to-stabilize-afghanistan/
31
Akber Ali, “China Pakistan Economic Corridor: Prospects and Challenges for
Regional Integration,” Arts and Social Science Journal 7, no. 4 (2016):1-5.
32
Atul Kumar, “China-Pakistan Economic Relations,” Institute of Peace and
Conflict Studies, September, 2006.

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CPEC as it is passing through the difficult terrain and also because of the
porous border between Pakistan and Afghanistan.33

ii. Internal Factor

Security and stability in Balochistan is imperative for the sound trade

between Pakistan and China. In Balochistan, there are speculations and
misperceptions that the CPEC will only serve the Chinese interests and the
local population will be converted into a minority. Such sentiments of
deprivation can pose a severe challenge to the successful implementation of
the CPEC. For the successful implementation, it is vital to address the
concerns of the Baloch people and it is only possible through the coherent
policy of integrating Balochistan and its people in the political process of
Pakistan.

Furthermore, considering the Balochistan issue, the people of Gilgit-

Baltistan (GB) are also demanding their part in the CPEC. Numbers of
protests and strikes have taken place and people have been demanding a fair
share in CPEC as GB serves as an entry point to the CPEC.34

iii. External Threats

The CPEC is not only facing threats from inside Pakistan but the western
province of China, Xinjiang, is also facing security threats from Uighur
militants and the East Turkestan Islamic Movement (ETIM). 35 These
militants, for a long period of time, sought safe-havens in the tribal areas
of Pakistan along with other militant groups in the country. 36 On the
other hand, the Pakistani forces have conducted the military operation
Zarb-e-Azab against these militants in North Waziristan. This military
operation has actually eliminated ETIM.37 Moreover, the security of the
CPEC is vital, for both Pakistan and China, to get the maximum benefits

33
Ahmed and Mi, “China-Pakistan Economic Corridor.”
34
Ibid.
35
Clarke Michael, “The Impact of Ethnic Minorities on China’s Foreign Policy: The
Case of Xinjiang and the Uyghur,” China Report 53, no. 1 (2017):1-25.
36
“South Asia: A Bump in the Belt and Road,” Stratfor, May 16, 2017,
https://worldview.stratfor.com/article/south-asia-bump-belt-and-road.
37
Umbreen Javaid, “Assessing CPEC: Potential Threats and Prospects,” Pakistan
Economic and Social Review 54, no. 1 (2016): 123-142.

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from trade ties and regional integration. Militancy is a serious threat for
the project and should be avoided otherwise it will adversely affect both
countries.

iv. Political Discontent in Pakistan

Politics has always remained a major impediment in the development of

Pakistan. Different political parties have different views about the CPEC,
which generated many controversies. The political discord over the CPEC is
largely based on the selection of routes and the allocation of funds to the
provinces. The previous government tried to mend fences through arranging
inter-party dialogue including the All-Party Conferences (APCs). These
dialogues are an attempt to deal with the concerns of the people of KPK and
Balochistan through the representatives of the people living across Pakistan.

v. Indian Factor

Pakistan’s arch-rival India has always remained a major impediment in the

development and prosperity of Pakistan and the South Asian region. All the
South Asian countries are ready to join the CPEC, it is India only which has
strong reservations regarding the project. New Delhi mainly opposes the
construction of the CPEC on the grounds that it is passing through the
disputed territory of Jammu and Kashmir, GB.38

There are other reasons as well. Firstly, the Indian desire of hegemony
in South Asia and economically strong, prosperous and peaceful Pakistan
will never be in the interest of India. To achieve this goal India is
propagating the negative agenda that the CPEC is passing through the
disputed territory. Secondly, BJP’s anti-Pakistan sentiments and the struggle
to isolate Pakistan at the regional, as well as global level, is another factor.
Fortunately, though, the successful development of the CPEC is portraying
a softer image of Pakistan around the globe with its huge economic
potential. Moreover, Pakistan’s CPEC projects and programmes should be
guided by diligent planning and policy. Islamabad should determine the

38
“India’s Opposition can Affect China-Pakistan Economic Corridor in Short Run:
Chinese Media,” Hindustan Times, June 27, 2017,
https://www.hindustantimes.com/india-news/india-s-opposition-can-affect-china-
pakistan-economic-corridor-in-short-run-chinese-media/story-
TReDc79qXEd4U3X4hqGZHL.html

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 Strategic Studies

direction of Pakistan’s CPEC policy, based on its economic and political

interests. It will help to place the CPEC in the context of a broader strategic
vision for modernising its economy in ways that do not destabilise the
polity. Thirdly, India does not want China to enhance its position in the
region through trade and connectivity networks such as the CPEC. Because
India considers itself as a competitor to China and the dominant position of
China in the region will never in the interest of India.

b) BCIMEC

i. Political Issues

The BCIMEC, since its inception, is the project of Track I Diplomacy for
China and Myanmar because of the leading role that the Central
government of Burma and the provincial government of Yunnan posit to
play in it.39 However, in the case of India and Bangladesh, it was cleared
after the joint statement was released by India-China in May 2013 and
project was endorsed at a higher level and further moved towards the Track
I although before it was the part of Track II initiative. 40 But still least
priority has given to the states from eastern India as compare to the Yunnan
providence.41

ii. Regionalism and Sub-Regionalism

Regionalism and sub-regionalism are also two important dynamics of the

economic corridors. The pertinent question is what kind of project is
BCIMEC? Is this regional or sub-regional initiative? These question needs
clarity because it has the policy implication in terms of framing objectives
of the project. There are also some speculations regarding the basic aim of
the BCIMEC that whether it will be able to develop the remote areas and
will be able to link those areas to the global supply chain? Secondly, it will
also create issues for the local government to figure out the grand scheme
for the project.42 The local population is also concerned about the grand

39
Subir Bhaumik, “Kolkata to Kunming: Indian and Chinese Strategies Converging
to Build Land and Trade Ties in Northeast,” Economic Times, December 4, 2013.
40
Ibid.
41
Uberoi, “The BCIM Economic Corridor,” 86.
42
Karim and Islam, “Bangladesh-China-India-Myanmar (BCIM) Economic
Corridor.”

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strategies because they will ultimately make the remote areas merely a
transit route. Moreover, the question of getting maximum benefits along
with the ensured security is also important to address.43

iii. Economic Issues

The economic rationale of the project also needs to be addressed. If ground

realities are considered, it seems as if the project is driven by political and
strategic contemplation. The BCIMEC Car Rally route itself is an example.
There are some observations that the BCIMEC is not an economic decision,
it is more like a politically driven project. The route of the car rally avoided
the populous and industrially developed Brahmaputra valley and altogether
bypasses most of the northeastern states. 44 Moreover, there is a need to
review the economic viability of the BCIMEC. In order to garner maximum
benefits from the BCIMEC, a revised approach is needed, which primarily
focuses on community-building with an emphasis on social, cultural and
environmental issues.

Recommendations

a) In order to acquire maximum benefits from these corridors, there is

a need to integrate civil society and private organisations.

b) Policymakers should ensure that the private sector has a proper

understanding of the ownership programme of the corridor and any
kind of ambiguity must be avoided.

c) Economic corridors will help to reduce the tensions between the

borders and will help to avoid the interference of the foreign
countries in the domestic affairs of the countries.

d) Successful implementation of these corridors will help to establish

strong diplomatic relations between the regional states and it will
ultimately help to boost the economic integration in the region.

43
Mustafizur Rahman, Habibur Rahman and Wasel Bin Shadat, “BCIM Economic
Cooperation: Prospects and Challenges,” Dhaka: Centre for Policy Dialogue, 2007,
98.
44
Uberoi, “The BCIM Economic Corridor,” 73.

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 Strategic Studies

e) Role of regional organisations such as SAARC and SCO should be

enhanced to achieve maximum benefits.

f) All nations of South Asia should emphasis on broader economic

cooperation rather than focusing on security issues. Because
when economic interdependence between states will increase it
will lead to fewer security issues.

Conclusion

The economic corridors can accelerate socio-economic development in

South Asia if materialised timely. They can help in creating a way for
regional connectivity and regional integration not only in South Asia but it
will lead to the Central and East Asia. For successful implementation, it is
imperative that the Indian attitude towards Pakistan must be changed
especially when it comes to the trade. The connectivity through the CPEC
and BCIMEC will be a harbinger for regional connectivity. It will help the
regional states to put aside the political differences through economic
cooperation. To exploit the economic advantages from CPEC and
BCIMEC, durable peace and conflict resolution mechanism is required in
the region. For this purpose, priority should be given to the multilateral and
bilateral forums and dialogues should be initiated on a priority basis.
People-centric projects should be initiated to ensure the maximum
involvement and engagement of the society in projects under these two
corridors.

Moreover, the regional organisations can play a major role in bridging

the gap among the regional states. The SAARC is a viable option for this.
However, in order to get maximum benefits from the SAARC, its revival is
of utmost importance. The SAARC needs a number of modifications in
order to work as a successful regional platform and it should work to bring
all the parties to table to negotiate for the betterment and economic
advancement of the region. Furthermore, successful implementation of
these corridors will open new avenues of development in South Asia. They
will help to create economic growth, reduce poverty and will help to create
a number of new jobs.

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