Dimensions of Connectivity in Indo-Myanmar Border Trade
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Mizoram 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 India 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 Khawmawi (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.