University Journal of Humanities & Social Sciences (A Bi-Annual Refereed Journal) Vol V Issue 1, June 2019 ISSN (P) : 2395-7352 eISSN : 2581-6780 Globalization and the Look East Policy: Dimensions of Connectivity in Indo-Myanmar Border Trade

Ruatdiki Hmar*

Abstract

The ushering in of globalization in and the subsequent adoption of the Look East Policy has opened a pathway for the development of border trade between India and Myanmar. In the context of Mizoram, the Indo-Myanmar border trade via Zokhawthar-Rih route was established with the signing of the Indo-Myanmar Trade Agreement in 1994. Prior to the establishment of a formal trading mechanism, there was an existence of an informal trading mechanism. The informal trading mechanism is primarily rooted in the social and cultural interconnectedness found among the people located near the border areas. Even with the formalization of trade, the informal trading mechanism is still a dominant element that denotes the nature of connectivity found at the border areas. Based on a study conducted at the border areas of Mizoram and Myanmar, this paper offers an insight into the dimensions of connectivity i.e. economic, social, cultural dimensions prevailing in the border areas. An in-depth analysis on the role of formal and formal trade; the entwinement of the varied dimensions of connectivity and the pertaining issues located in the avenues of formal trade and societal development are also highlighted. These issues also act as road blocks in the path for attaining economic development at the border areas and needs to be addressed accordingly.

Keywords: Globalization, Look East Policy, Border Trade, Connectivity

Introduction propositions of integration and intercon- With the arrival of globalization in nectivity set forth under globalization. The India, the economy was slowly driven to- nature of interconnectivity which was ini- wards market considerations and became tiated from an economic front began to entwined with the issues and develop- enter into the political, social and cultural ments of the global economy. India, in its realm. The economic dimension alone did new vision of attaining interconnectivity not define the nature of connectivity. Other with the world economies, began to for- dimensions ranging from political, social, mulate policies that were aligned to the cultural dimensions were entwined with

* Research Scholar, Dept. of Pol.Science, Mizoram University 110 Globalization and the Look East Policy: Dimensions of Connectivity in Indo-Myanmar Border Trade the economic dimension. These dimen- Mizoram) and (in Manipur) sions highlighted various connotations where the Zokhawthar-Rih route is situ- and modes of operation that were already ated. Both these villages are adjacent to prevalent in the society.1 The Look East each other and are physically connected Policy of 1991 was one such policy with each other via a bridge that is used launched by India in the early phase of its to export and import goods across both globalized era. Under the Look East Pol- the nations. icy, the vitality of the North Eastern Re- gion (NER) of India in terms of geograph- NER AND INDO-MYANMAR TRADE ical proximity and its South East Asian Since the 1980s, with the intensifica- continental linkage gained prominence2. tion of globalization there has been a rise The state of Mizoram enjoys physical con- in the adoption of open trade and regional nectivity with Myanmar and Bangladesh cooperation at the international arena. In and shares a border of 722 km in length the context of India, during the first de- with these two nations. The geographical cade of economic planning (1950s to proximity alone earmarked Mizoram as a 1960s), there was little to show for in vital arena for the implementation of In- terms of economic achievement. With the dia’s Look East Policy.3Under the Look era of globalization ushered in due to the East Policy, the border area of Mizoram, New Economic Policy of 1991 and the located adjacent to Myanmar witnessed ever growing role of the World Trade Or- the growth or intensification of different ganization (WTO), the institutional frame- dimensions of connectivity due to the work for free movement of goods and ser- Indo-Myanmar Border Trade Agreement. vices was strengthened and nations around Prior to the advent of this agreement, their the world were in a deep driven quest, the existed a shared history and shared cul- quest to secure co-operation with other tural- ethnic roots amongst the people lo- nations especially in the regional front. cated at both sides of the border which The Look East Policy, launched by P.V. promoted informal trade amongst the two Rao in 1991 threw attention on the conti- communities.4The multi-dimensional con- nental link of the North Eastern Region nectivity prevailing at the border area of (NER) with the rest of Southeast Asia5. Mizoram and Myanmar is dictated by the The NER was viewed as India’s gateway trading arrangements brought about by the for securing trading relations and cooper- Look East Policy along with the system ation with the rest of Southeast Asia. With of informal trade that had been already the launch of the NER Vision 2020 Doc- been in existence. The prevailing dimen- ument, there was a paradigm shift of the sions of connectivity are highlighted based Look East Policy towards the NER. Un- on a study undertaken at the border areas der the Vision 2020 Document, Myanmar of Mizoram and Myanmar. The study is was considered as a key area for the pro- conducted at two villages, Zokhawthar (in motion of trade and economic coopera-

111 Ruatdiki Hmar tion between India and the rest of South- clearance was a necessity and the export- east Asia. The relevance of NER thus ed goods were to be balanced by import- gained due dominance.6 ing goods of equivalent value within a period of six months. The values of the BORDER TRADE AGREEMENT bartered goods were set at a maximum The Indo-Myanmar Border Trade limit of 20,000 US Dollars per transac- Agreement between India and Myanmar tion.12 which was signed on 21st of January 1994 3) Normal/Regular trade: Under the became operational from 12th of April normal/ regular trade mechanism, the ex- 1995.7 The Agreement aimed to find ways port and import of goods were permissi- for the exchange of locally produced ble in free flowing currencies agreed upon goods and reduction in cost of goods by the two trading countries (i.e. India and among people residing near the border Myanmar) through the system of ad- areas. Initially, trade was permitted only vanced payment. All legal goods were in 22 agricultural items under the Agree- 8 tradable under the system of normal ment which was later raised to 62 items 13 and included even non-agricultural goods. trade. With the setting up of Land Custom Sta- tions (LCS) at Moreh in Manipur and at DIMENSIONS OF CONNECTIVITY Zokhawthar in Mizoram, border trade was The field study conducted along the to be put into operation.9 border areas of Mizoram and Myanmar were confined to two villages, Zokhaw- Border Trade Mechanism thar (in Mizoram) and Khawmawi (in My- There was a three stage mechanism anmar). With the establishment of border 10 for border trade : trade among the two nations, varied di- 1) Traditional/free exchange: Trade was mensions of connectivity prevailing be- carried out among people living at a dis- tween Zokhawthar and Khawmawi are tance of up to 40 km from the international highlighted. border from either side. The values of ex- Cultural connectivity: The Chin tribes ports were to be less than 1000 US Dol- located in Myanmar at Chin Hills are part lars and exports were balanced through the and parcel of the Zo ethnic stock. They import of goods of equivalent value with- share common ancestral roots with their in a few days. There was no custom duty fellow Zo counterparts located in Mizo- imposed on these goods.11 ram and have a deep, entwined cultural 2) Barter trade: Under barter trade linkage which is rooted in their values, mechanism, exporters and importers in lifestyle, language and societal set up. possession of I.E.C (Import Export Code) Many residents of Zokhawthar and Khaw- Certificates were allowed to carry out mawi have relatives living across the trade in the permitted 62 items. Customs border i.e. at the Indian or Myanmar side.

112 Globalization and the Look East Policy: Dimensions of Connectivity in Indo-Myanmar Border Trade

The international border is neither a hin- b. People to people contact: The resi- drance nor a blockage for promoting con- dents of both villages have a deep rooted tinued unity among the Zo tribes living connection. They are supportive of cross across the border. It is regarded as a sort border initiatives aimed at promoting of security measure created by the state greater unity. They have no issues with and serves only security related purpos- cross border marriages and are extremely es.14 supportive of such marriages. Cross bor- Social Connectivity: The shared ances- der visits for both formal and informal tral roots are also evident in the social purposes are also rampant where the connectivity that exists at both villages. people do not face any hardships or issues while crossing the border. The a. Societal set up: Both villages have formal visits range from religious based influential and fully functional civil soci- events, societal events like marriages, fu- ety organizations (CSOs), Non-Govern- nerals and so forth. The informal events mental Organizations (NGOs) and local include gatherings organized with rela- bodies. The Young Mizo Association tives or friends across the border, im- (YMA) and the Village Council (VC) are promptu sports related matches and other among the most influential bodies. These such gatherings. Many residents of these bodies enjoy full support from the resi- two villages frequently visit the markets dents of Zokhawthar and Khawmawi and located across the border for purchase of work towards the welfare and betterment their necessities.16 of the villagers. These bodies play a key role in all avenues ranging from gover- Transitive Myanmar and its impact on nance to social sector initiatives. They people to people connectivity have strong voices and are also adhered The transitions taking place in My- to by the political powers due to the very anmar has had a huge impact on the na- nature of their influence over the villag- ture and volume of people to people con- ers. With regards to YMA and VC of both tact especially in the context of these 2 villages, they have a congenial relation- villages. The transition towards a demo- ship with their fellow counterparts across cratic Myanmar has physically and men- the border. Many a times, joint meetings, tally given a positive boost for the devel- consultations and joint action plans are opment of greater people to people con- initiated. The elected leaders from these nectivity and has also lead to an increase bodies have both formal and informal con- in the volume of trade. Many initiatives sultation with each other on issues rang- in this avenue have been undertaken. Cit- ing from societal well-being, promotion ing some instances, during Independence of developmental initiatives, cross border Day 2017 and Republic Day 2018, there cultural events, instances related to law was a joint meeting of officials from the and order situations.15 both Indian side (who were represented

113 Ruatdiki Hmar by the Mizo leaders) and the Myanmar side. Also, the serials/movies/soap op- side at Zokhawthar Tourist Lodge. Dur- eras dubbed in Mizo language telecasted ing November 2017, a 2 wheeler rally was in Mizoram are also viewed with high embarked upon by the Assam Rifles (AR) anticipation by the Zo clan located on from Aizawl (India) to Mandalay (Myan- Myanmar side. Cross border performance mar). of local singers for numerous events also c. At the non-governmental level: special occur at regular intervals. cases where joint cultural troupes repre- f. Tourism aspect: Under the Govern- senting both villages, joint sporting events ment of Mizoram, many steps have been have been witnessed. In the avenue of taken for the promotion of tourism in sports, the Zokhawthar Football League these areas. One particular initiative been was established in 2017 where this league undertaken is the Stay at Home initiative, opened its doors to the Zo ethnic stock where under this project 7 houses have located at Myanmar. Educational trips/ been selected. Funds have been given study tours especially across both sides to these houses to offer adequate facil- have been embarked on from time to time. ities to tourists who may opt for the The Zo ethnic tribes from both sides are stay at home packages i.e. offer the ex- strongly rooted in Christianity and thus perience of staying at a typical house- many religious undertakings ranging from hold. Many tourist agents recognized visits by religious leaders, joint church by the Government of Mizoram also in- events are organized at regular intervals. clude visits to these villages under their d. Educational avenue: There is no aca- tourist packages. demic institution or establishment for g. On the avenue of women: There is a higher education in Zokhawthar. At the fully functional organization for women, primary schools and middle schools lo- the Mizo Hmeichhe Insuihkhawm Pawl cated in this village, the enrollment of stu- (MHIP) at Zokhawthar which is engaged dents from the neighboring village of in actions aimed at promoting the well- Khawmawi, located across the border is a being of women. Even though Khawmawi common trend. At the same time, there are village is yet to have a body dedicated no students from Zokhawthar enrolled in towards the well-being of women, the the schools located at the other side of the Zokhawthar MHIP has made provisions border. to ensure membership is extended to the e. Impact of media: The media has a huge womenfolk of Khawmawi. Under the impact, especially on the Zo clan located Zokhawthar MHIP, self -help groups for at Myanmar side. Due to a shared medi- women entrepreneurs have been estab- um of communication technology, the lished from 2017. These self-help groups Mizo channels and programmes aired in offer loans at low rates of interests to Mizoram are also viewed in Myanmar women entrepreneurs.17

114 Globalization and the Look East Policy: Dimensions of Connectivity in Indo-Myanmar Border Trade

Economic connectivity: The social and opment of the economy and the people cultural connectivity plays a key role in located at the border areas. Based on the the overall economic operations, espe- study undertaken, certain hindrances or cially in the context of these two villages. bottlenecks for the development of bor- Due to the social and cultural linkage, der trade between India and Myanmar in petty traders hailing from either side are the Zokhawthar-Rih route were identified. found in the markets across the border. 1) Infrastructure wise The economic transactions in the form of buying and selling of wares in highly de- Bridge: The connecting path of both na- termined by the prevailing rate of ex- tions via the bridge is unable to meet the change, price factor as well as the variety trade requirements as it is not able to car- of goods being offered. In many situations, ry heavy load. For goods weighing above goods arriving from Myanmar do not orig- ten tonnes, the goods are loaded and cart- inate from Myanmar. Myanmar is usually ed across the bridge using small vehicles the middle man for the export of goods or carts. This has reduced the volume of originating from China and Thailand. Many formal trade, has further promoted the residents of these villages depend on the usage of the illegal routes and has also border trade for their source of income. diluted the appeal of embarking on trade While some have a direct role in the ex- between India and Myanmar via port and import of goods, many are depen- Zokhawthar LCS. dent on the indirect means of employment Lack of testing facilities: The absence of ranging from the loading and unloading of adequate testing facilities for food prod- goods, the cart or bike services needed for ucts have been the root cause of many transportation of goods, etc.18 hardships faced with regards to border trade. The edible goods upon entering CONCLUSION Zokhawthar LCS are transported to the The nature and dimensions of connec- testing laboratory in Imphal, Manipur. The tivity has been spear headed due to the sending of the food items to another state advent of a formal trade mechanism i.e. as well as the entire logistical require- the Indo-Myanmar Border Trade Agree- ments for the entire testing process has ment. Prior to the establishment of a for- lead to a massive delay in the mobility of mal mechanism for trade at the border ar- goods. eas, informal trade among the people lo- Lack of advanced payment facilities at cated at both sides of the border have been Zokhawthar: Even with the establishment in operation. The informal trade was guid- of a State Bank of India (SBI) branch at ed by the deep rooted cultural connectiv- Zokhawthar LCS, this bank is unable to ity that existed between the villagers. Bor- cater to the foreign exchange needs. Un- der trade was viewed by many as an im- der the system of normal trade, there is a portant aspect for the progressive devel- need for advanced payment of goods in

115 Ruatdiki Hmar foreign currency. Due to the inability of Lack of involvement of the people locat- the Zokhawthar SBI to carry out such ed at border areas: Even with huge de- transactions, the advanced payments for velopmental initiatives being adopted for carrying out trade is being provided by promotion of border trade, there is no in- certain banks located in town.19 volvement of people at the grassroot lev- el. These villagers have no proper under- 2) On Employment: Majority of em- standing or awareness on the policy mea- ployment avenues available around the sures, undertakings and lack the educa- border areas is temporary and based on tion needed to understand the policy im- many factors. Some are determined sole- plications and functioning of the LCS. ly by the availability of seasonal food products at particular months of the year. Role of community based organizations: The nature of relationship between the There are many community based orga- government of the two sides and the pos- nizations in Mizoram. Many of these sibility of disgruntled groups due to cer- organizations have branches in different tain governmental actions/ policies may parts of the state. The ones located in lead to lack of employment avenues. In Zokhawthar have a huge influence even case of tension between the two nations, with regards to border trade. There are situations may arise where traders may instances when events that unfold in oth- deem trade unfavourable leading to fall er parts of Mizoram may trigger these in the volume of trade which may have a organizations to forcefully close the bridge detrimental impact on the livelihood of the for a day or even for longer period of time. Other instances may call for the prohibi- villagers. tion of movement of people across the 3) Human aspect: border or impose restrictions. Such soci- Unskilled labour: Majority of the la- etal based control hampers not only trade bourers are unskilled i.e. lack proper skill but has deeper implications on the social sets for partaking on any specific task. connectivity dimension. This lack of skill set is mainly due to the Due to the interconnectedness that lack of skill based programmes, initia- prevails at all the above dimensions, the tives for those located around the border above bottlenecks besides delaying the areas. Skill development programmes groundwork for economic development maybe recorded at a favourable percent- also have a detrimental impact from a so- age for the state as a whole but the bor- cietal point of view. With the formaliza- der areas are highly neglected as these tion of border trade, the people residing programmes are mostly concentrated in in the border areas are assumed to be and around the areas located near the among the beneficiaries that this mecha- state capital whereas the periphery areas nism offers. In reality, the people located are highly neglected. at the border areas are not able to reap the

116 Globalization and the Look East Policy: Dimensions of Connectivity in Indo-Myanmar Border Trade full benefits that this mechanism has to the glaring issues highlighted above offer due to the issues mentioned have to be addressed. To ensure the above. Also, for the success and full progressive growth of the ongoing ini- implementation of policy measures tiatives as well as development in all such as the Look East Policy and the dimensions of connectivity, the issues subsequent Act East Policy; the Vision highlighted above have to be taken into 2020 Document and other undertakings close consideration and deliberated at by both central and state government, all levels of governance.

References: Chakraborty Gory, AsokRay Kumar. (2014).The Look East Policy and Northeast India. New Delhi: Aakar Books. ChandranD.Suba, et al. (2011). An Alternative Strategy towards Southeast Asia Looking through India’s Northeast. New Delhi: Samskriti. Chakraborty Gory, Asok Ray Kumar.(2015). “The Look East Policy FromPeople’s Perspective: A study on Mizoram” in NFI Report. Kolkata: Institute of Developmental Studies. Das Ram Upendra.(2016).”Enhancing India-Myanmar Border Trade-Policy and Implementation Measures.” New Delhi: Department of Commerce, Ministry of Commerce and Industry, Government of India. Trade and commerce.mizoram.gov.in.(2018). Department of Commerce & Industries Government of Mizoram, India- 12th Five Year Plan Retrieved from:https://tradeandcommerce.mizoram.gov.in/page/12th-five-year-plan.html dated:04-03-2018 Trividesh Singh Maini.(November, 2014). “India’s ‘Look East’ Policy Begins with Myanmar”. TheDiplomat. Retrieved from: https:// the diplomat.com/2014/11/ -look-east-policy-begins-with-myanmar/ dated: 04-03-2018

END NOTES

1 ChandranD.Suba, et al.(2011). An Alternative Strategy towards Southeast Asia Looking through India’s Northeast.p-97 2 Chakraborty Gory, Asok Ray Kumar.(2014).The Look East Policy and Northeast India.p-67

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3 Chakraborty Gory, Asok Ray Kumar.(2015). “The Look East Policy From People’s Perspective: A study on Mizoram” in NFI Report.p-13 4 ChandranD.Suba,op cit.,p-97 5 Chakraborty Gory, Asok Ray Kumar.(2014).The Look East Policy and Northeast India. p-66 6 Chakraborty Gory, Asok Ray Kumar.(2015). op cit., p-18 7 Ram Upendra Das.(2016).Enhancing India-Myanmar Border Trade-Policy and Implementation Measures.p-10 8 `Chakraborty Gory, Asok Ray Kumar(2014),op cit.,p- 78 9 Ram Upendra Das, op cit.,p-10 10 As per records drawn from the report “Brief Status of Land Customs Station,Zokhawthar till 28.02.2018” obtained from the office of the Zokhawthar Land Customs Station on the 7th of March,2018 11 Ibid. 12 Ibid. 13 Ibid. 14 As per the findings obtained from the 13 respondents located in Zokhawthar and Khawmawi during the field study conducted from 5th March-8th March 2018 15 Ibid. 16 Ibid. 17 Ibid. 18 Ibid. 19 "Brief Status of Land Customs Station,Zokhawthar till 28.02.2018" op cit.

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