The Belt and Road Initiative (BRI) is an ambitious effort to deepen regional cooperation and improve connectivity on a trans-continental scale. While the scope of the initiative is still taking shape, the BRI consists primarily of the Silk Road Economic Belt, linking China to Central and South Asia and onwards to Europe, and the New Maritime Silk Road, linking China to the nations of South East Asia, the Gulf Countries, North Africa, and on to Europe. Six other economic corridors have been identified to link other countries to the Belt and the Road.
“With the momentum built up, the stage set, with a banner that in all its glory was decorated with the flags of the seven South Asian states, we sat in our respective country groups to embark on a three-day long journey that was to change my perception of South Asia forever. The dis-embarkment on this passage saw us divided by geographical boundaries, as India and Pakistan made sure to sit the farthest away from each other. The end to this voyage, however, painted a story not many foresaw – " – Alizeh Arif, Lahore School of Economics
There is no doubt that Bangladesh is a modern day success story—a far cry from Henry Kissinger’s label of a “basket case.” Its growth has been steady, even impressive in the context of feeble global growth, and it has now joined the ranks of a lower middle-income country. Its poverty reduction record is even more impressive, with over 20.5 million people escaping poverty between 1991 and 2010.
But the next phase of growth and poverty reduction becomes harder, since the more obvious sources of growth have largely been exploited.
Transport history was in the making a few days ago when a Bangladeshi ship carried a consignment of
1,000 tons of steel and iron sheets from the Port of Kolkata in West Bengal to India’s northeastern states, through Bangladesh. This first-ever transshipment of transit goods marked the formal launch of transit trade and transport between India and Bangladesh using a combination of river and land routes.
Senior government officials and top diplomats from both countries, including the Indian High Commissioner in Dhaka, the Bangladesh Minister and Secretary of Shipping, the Senior Secretary of Commerce, and officials of the Bangladesh Inland Water Transport Authority, attended an inaugural ceremony to observe the unloading of goods at Ashuganj Port on the bank of the Meghna River, according to media reports. The general cargo terminal at Ashuganj Port will be rehabilitated and modernized under the newly approved regional IDA project to support Bangladesh’s waterways to handle the loading and unloading of large volumes of cargo.
Of the total US$15.4 billion pledged by the international community at the end of the first day of the meeting of the Consultative Group on Côte d’Ivoire held on May 17, 2016 in Paris, the World Bank Group (IDA, IFC, MIGA) will commit the sum of US$5 billion (CFAF 2500 billion) to finance Côte d’Ivoire’s Second National Development Plan (NDP) covering the period 2016-2020. This amount is double the sum allocated during the previous period (2012-2016), proof—if any were needed—that the World Bank is more than ever committed to helping Côte d’Ivoire achieve emerging country status. This new country partnership framework between the World Bank Group and Côte d’Ivoire is an important milestone.
Natural resources management, particularly in the extractives industry, can make a meaningful contribution to a country’s economic growth when it leads to linkages to the broader economy. To maximize the economic benefits of extractives, the sector needs to broaden its use of non-mining goods and services and policymakers need to ensure that the sectors infrastructure needs are closely aligned with those of the country’s development plans.
In Africa, especially, mining and other companies that handle natural resources traditionally provide their own power, railways, roads, and services to run their operations. This “enclave” approach to infrastructure development is not always aligned with national infrastructure development plans.
When my team and I saw this boat passing by us in July 2013 in rural Bangladesh, near the border with Mizoram, Northeast India, and Myanmar, I felt immediately empathic.
How many people are on that boat? Eighty? Does it have a motor? Can those people swim, especially the women? No lifejackets! I wondered how long their trip was, and then I thought: What if they needed a bathroom break? Memories of my family's escape from Vietnam by boat in 1981 flashed back—34 refugees jammed into a traditional fishing boat normally home to a family of seven, with no motor, no life jackets, and no toilets! We floated around the South China Sea and Pacific Ocean for 16 days. Most of us could not swim, certainly not the women and girls.
This blog is part of of the series South Asia Youth Voices on regional integration. The views expressed are those of the authors.
The 21st century world lives on optical fibers, and with an active base of 1.49 billion monthly users, Facebook would today be the most populous country in the world. The digital revolution presents an opportunity to transcend geographical borders toward greater regional integration in South Asia. And youth, empowered by internet and the smartphone, can override traditional boundaries and historical prejudices.
Lesson 1: Facilitate trade in goods and services
Despite falling tariffs, there is still a large gap between the price of the exported good and the price paid by the importer, largely arising from high costs of moving goods, especially in South and Central Asia. On a percentage basis, the potential gains to trade facilitation in South and Central Asia, at 8 percent of GDP, are almost twice as large as the global average. High trade costs have contributed to South Asia being the least integrated region in the world.
FIGURE 1: Intra-regional trade share (percent of total trade), 2012
In the ASEAN region, most countries have established either Trade Information Portals or Single Windows that have enhanced trade facilitation, reduced trade costs and enhanced intra-regional trade. A Trade Information Portal allows traders to electronically access all the documents they need to obtain approvals from the government. A Single Window (a system that enables international traders to submit regulatory documents at a single location and/or single entity) allows for the electronic submission of such documents. These single windows, using international open communication standards, facilitate trade both within the region and with other countries using similar standards.
In services, one barrier to trade involves the movement of skilled workers, accountants, engineers and consultants who may move from one country to another on a temporary basis. The Southern Common Market (Mercosur)’s Residence Agreement allows workers to reside and work for up to two years in a host country. This residence permit can be made permanent if the worker proves that they can support themselves and their family.