The Bay of Bengal is the world’s largest bay, situated strategically between the Strait of Malacca and the Arabian Sea. However, it has yet to achieve its economic potential. While the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation, or BIMSTEC, seeks to bring change through an upcoming summit in Bangkok, some members of this bloc of nations surrounding the bay are navigating challenges of their own.
Myanmar is mired in civil war. Bangladesh is under an interim government. Economically successful Thailand has just seen an abrupt change of prime ministers.
Effective institutions often outweigh geography in economic development, as exemplified by Singapore and the United Arab Emirates. Both economies have also struck a deft balance in their relations with great powers. Similarly, instead of being Balkanised into spheres of influence, the Bay of Bengal could unlock its potential through effective Sino-Indian collaboration.
Given the globalisation of supply chains, international collaboration is critical for advanced manufacturing.
While China struggles to develop a self-sufficient chip industry amid US-orchestrated restrictions, the United States might find it difficult to expand its electric vehicle industry beyond Tesla without Chinese batteries.
From the US to Japan, successful industrialisation has often leveraged the know-how of nations that industrialised earlier. Bangladesh, for example, has built and expanded its textile and garment industry with investments from South Korea and China.
12:53
‘Overtaking on a bend’: how China’s EV industry charged ahead to dominate the global market
‘Overtaking on a bend’: how China’s EV industry charged ahead to dominate the global market
Meanwhile, India’s manufacturing sector continues to be dwarfed by China’s and its share as a percentage of the economy has remained stagnant for a decade despite a strong push by the government.
If India wishes to achieve export-led industrialisation, it risks falling short without leveraging China’s manufacturing prowess, particularly in sectors like EVs and batteries, where China is a global leader. Just as mainland China’s chip industry was built with expertise from Taiwan, how could India establish a thriving EV industry without some initial assistance from Chinese engineers?
Beyond economic development, many challenges facing humanity demand international collaboration. Although it was briefly overshadowed by Covid-19, tuberculosis remains the most deadly infectious disease, claiming 1.3 million lives in 2022.
India, China, Pakistan and Bangladesh are among the eight countries with the highest TB burdens. India alone accounts for more than a quarter of the world’s tuberculosis cases, with one in 500 people living with the disease.
Fortunately, advancements in portable X-ray technology and artificial intelligence are improving disease detection. Having achieved remarkable progress in curtailing TB over the past decade, China is well placed to share its expertise with its South Asian neighbours. Stamping out tuberculosis could be a priority initiative for the Bay of Bengal nations.
Poverty, which manifests itself in hunger and overcrowded living conditions, is a top risk factor for TB. Child malnutrition remains a key challenge in South Asia. India may soon have a larger and younger working-age population than China, but its people can only develop into productive workers if properly nourished.
Proper nutrition in the first 1,000 days from conception is crucial for a child’s cognitive development. In India, although the percentage of children who are stunted has fallen from 50 to 32 per cent this century, more progress is needed.
Chinese children have seen significant improvements in this regard, and are converging with their American peers. Whether it is sharing information on healthy dietary habits or supplying cost-effective iron supplements, China can help strengthen the human capital of its Asian brothers.
China’s successful economic reforms were built on a foundation of universal primary education established in preceding decades. Bangladesh and India, likewise, have made commendable progress in boosting youth literacy rates. However, India grapples with linguistic diversity, with Hindi spoken by roughly 40 per cent and English serving as a secondary language for about 10 per cent of the population.
This linguistic complexity poses a unique hurdle to educational parity. Compared to East Asia’s globally recognised educational excellence, South Asian nations still need to bridge significant gaps. To unlock their full economic potential, the Bay of Bengal nations must prioritise comprehensive education reforms, perhaps drawing lessons from East Asian successes.
The true measure of economic development is not merely gross domestic product but the well-being of people. Human capital provides the foundation of economic development.
02:05
India bans another 118 Chinese apps as border tensions escalate
India bans another 118 Chinese apps as border tensions escalate
India’s ultimate goal should be to improve the lives of its people. Notwithstanding territorial disputes, countering China cannot be an end in itself. The suppression of Chinese smartphone manufacturers and apps, for example, may carry significant social and economic costs for the Indian population.
Such policies risk putting India at a competitive disadvantage compared to other emerging economies like Thailand and Vietnam. With its self-imposed restrictions on access to cutting-edge Chinese technologies, India may inadvertently hinder its own national development. Where is the wisdom in such a lose-lose approach as India forges a path towards economic resurgence?
This can indeed be an Indo-Pacific era. While the term was coined in an effort to counterbalance China, it can be reimagined to signify broader Asian cooperation – encompassing East Asia, Southeast Asia and South Asia.
The collective well-being of the region’s population transcends narrow politics. Whether it’s combating tuberculosis or elevating academic performance, nations in the Bay of Bengal stand to benefit from Sino-Indian cooperation.
With robust partnerships, these countries can unlock their full potential through effective human development. In doing so, the Indo-Pacific region could rewrite its geopolitical narrative.
Winston Mok, drawing on his experience in regional private equity and international strategic advisory, views world affairs through the lenses of East Asia and the Global South
