DELHI POLICY GROUP D P G Advancing India’s Rise as a Leading Power D PG Roundtable Reports, Vol. 2, Issue 5 Roundtable on ‘Advancing the BBIN Sub-regional Cooperation’ Hotel Shangri- La | Kathmandu | Nepal | July 27-28, 2017 www.delhipolicygroup.org Disclaimer DPG Roundtable Reports Vol. 2, Issue 5 is produced by the Delhi Policy Group, an independent and autonomous, not for profit think tank which focuses primarily on strategic issues of critical national interest. In keeping with the growing dynamism of India’s foreign and security policy, the DPG has expanded its focus areas to include India’s broader regional and global role and the strategic partnerships that advance India’s rise as a leading power. To support that goal, the DPG undertakes research and organizes policy interactions across a wide canvas, including strategic and geo-political issues, geo- economic issues and defence and security issues. © 2017 by the Delhi Policy Group (DPG) DPG Roundtable on! Advancing BBIN Sub- regional Cooperation Kathmandu, Nepal, 27-28 July 2017 Contents Abstract of Proceedings Programme! Advancing BBIN Sub-regional Cooperation, Kathmandu “Summary Note of Recommendations from Break Out Sessions: Advancing BBIN Sub- Regional Cooperation” Welcome Address by Ambassador Biren Nanda, Senior Fellow, Delhi Policy Group Inaugural Remarks by His Excellency Manjeev Singh Puri, Ambassador of India to Nepal Chair’s note for Trade and Economic Issues by Dr. Swarnim Waglé Member, National Planning Commission, Nepal Paper by Mr. Purushottam Ojha, Former Secretary, Ministry of Commerce and Supplies, Nepal Paper and Presentation by Mr. Achyut Bhandari, Consultant & Former Director General Of Trade, Bhutan Paper and Presentation by Dr. Selim Raihan, Professor, Department of Economics& Executive Director, South Asian Network on Economic Modeling (SANEM), Bangladesh Abstract, Paper and Presentation by Mr. Ali Ahmed, CEO, Bangladesh Foreign Trade Institute Abstract and Paper by Dr. Ramesh Chandra Paudel, Representative from Nepal, Visiting Fellow, Australian National University Chair’s note for Transit and Multimodal Connectivity by Amb. Sanjay Singh, Adjunct Fellow, DPG Presentation by Dr. Posh Raj Pandey, Chairman, South Asia Watch on Trade Economics and Environment (SAWTEE) Abstract of Paper by Mr. R. B. Rauniar, Managing Director, Interstate Multinational Transport, Nepal Paper by Dr. Mahalaya Chatterjee, Professor and Director, Centre For Urban Economic Studies, Department Of Economics, Calcutta University Chair’s note for Energy-Hydropower And Water Resource Management by Dr. Arbind Kumar Mishra, Member, National Planning Commission, Nepal Paper by Mr Chhewang Rinzin, Managing Director, DRUK Green Power Cooperation Paper by Dr. Govind Nepal, Former Member, National Planning Commission Presentation by Prof. Chandan Mahanta, Professor, Indian Institute Of Technology, Guwahati, Assam Chair’s note for People To People Connectivity Through Multi- sectoral Engagement by Amb. Biren Nanda, Senior Fellow, DPG Abstract, Paper and Presentation by Mr. Sabyasachi Dutta, Asian Confluence, Shillong, Meghalaya Abstract, Paper and Presentation by Dr. Kusum Shakya, Professor (Economics) Tribhuvan University, Kathmandu Recommendations of Break Out Sessions Speakers Profile and Participants List ******* Abstract of Proceedings The Delhi Policy Group (DPG) in partnership with the Asia Foundation organized a roundtable discussion on “Advancing BBIN Sub-regional Cooperation”, in Kathmandu, Nepal on July 27-28, 2017. The roundtable was the eighth in a series organized by the DPG. The roundtable hosted participants from Bangladesh, Bhutan, India, and Nepal. The discussion was thematically divided into 4 sessions dealing with Trade & Economic issues, Transit & Multimodal Connectivity (Roadways, Waterways, Railways, and Aviation), Energy-hydropower & Water Resource Management and People to People Connectivity through multi sectoral engagement. The first day of the conference focused on challenges and opportunities in the four thematic areas of BBIN sub-regional cooperation, which were addressed from the regional perspectives. The second day was dedicated to the breakout sessions in which participants identified three priority areas in each of the four thematic areas, the implementation processes and likely challenges. The participants formulated a comprehensive two-year policy recommendation based on the outcome of these discussions. The roundtable discussion started with the welcome address by Ambassador Biren Nanda, Senior fellow, Delhi Policy Group. He emphasized the need for progressive policies for regional integration to bridge gaps in multimodal connectivity and mutual economic development. Over the past three years governments of BBIN countries had undertaken several initiatives aimed at prioritizing regional integration including the Motor Vehicle Agreement and the Coastal Shipping Agreement. There were, however, long standing issues in the sectors of trade facilitation, development of economic corridors, national security and strategy for land and seaport connectivity, which needed to be resolved in order to progress regional integration in a meaningful manner. His Excellency Manjeev Singh Puri, Ambassador of India to Nepal, who delivered a Special Address at the Inaugural Session on July 27, 2017 stressed upon sub-regional cooperation as a win-win proposition for mutual development under India’s ‘Neighborhood First’ policy. He was of the view that the idea should not be to create new structures, but to approach sub-regional cooperation in a practical manner. It was important for all countries to bring to the table their unique strengths and competencies with the objective of maximizing the benefits for all. He underlined the importance of the early implementation of the Motor Vehicle Agreement (MVA), water resource management, the BBIN E-Knowledge Network, Trade Facilitation as some key areas to work on. Hon’ble Dr. Swarnim Wagle, Vice Chairman, National Planning Commission, Nepal delivered the Special Address as well as chaired the first session on ‘Trade and Economic Issues’. Dr. Wagle highlighted the critical need for deepening ties in the BBIN sub- regional framework through focused, intellectual and cultural exercises which will evolve into cogent policy recommendations, that will have a substantial impact on the BBIN sub-region. Dr. Wagle re-articulated, expanded upon and stressed on the areas previously identified as the key areas of concern. As the chair of the first session he assessed the crucial need for creation and development of regional growth networks and value chains in an era of globalization. Reduction of trade costs, acceleration of trade in services, augmenting of manufacturing productivity, developing regional /border infrastructure and connectivity, identification and carving out niche socio-economic trade-transit corridors and optimum usage of resource potential were deemed indispensible towards formulating a tangible action plan. Government bodies both at the national and sub-national level; trade and business associations; investment boards; regional think tanks, universities and CSOs - were some of the critical drivers/ actors that were identified for the effective implementation of such plans. In addition to focusing on efficiency, the experts in the panel also addressed the issues of inequality, equity and social cohesion through the lens of job creation through trade and economic opportunities, a critical area that needs to be addressed. The discussion on second session began with the remarks by Ambassador Sanjay Singh, who chaired the Session on ‘Transit and Multimodal connectivity (Roadways, Waterways, Railways, and Aviation)’. He reflected upon varying issues such as multimodal transit hub, digital mapping, aviation connectivity, creation of logistic hubs, standardization of trans-boundary expatriation, advanced surveillance, logistics for container traffic movement, private sector involvement etc. Aspects related to adaptation of transit facilitation, formulation of a comprehensive BBIN railway agreement and creation of transit agreements were discussed in the session. Dr. Arbind Kumar Mishra member of National Planning Commission, Nepal, chaired the session on Energy-Hydropower and Water Resource Management. In his initial remarks he focused on the growing demand of energy in the BBIN region, which is a matter of concern for all four nations. The BBIN countries despite being rich in resources, especially in hydropower, nevertheless generate a majority of the energy through fossil fuels. Dr. Mishra also drew attention to the seasonal demand of energy and the possibility of using it to supplement trans-boundary energy trade using integrated grid connectivity. The participants recommended the use of sustainable methods of energy generation instead of fossil fuels. Amb. Biren Nanda gave a Special Address in the subsequent session on ‘People-to- People Connectivity’ wherein he pointed to the strong cultural linkages within the BBIN region, which could be utilized for enhancing multi sectoral engagement. The discussants brought forth their perspectives and suggestions in the field of tourism, Haat bazaars, academic & media exchanges and reinforcing people to people bonds. The second day of the Roundtable was structured into breakout sessions where participants were encouraged to brainstorm ideas to formulate a cogent plan of action focusing on three priority areas under each thematic grouping. Participants were divided into four