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Wednesday, August 2, 2017

[CUTS-TradeForum] Revitalising connectivity through inland waterways.

From: CUTS International

Revitalising connectivity through inland waterways
Bipul Chatterjee, Executive Director, CUTS International
Saurabh Kumar, Policy Analyst, CUTS International
World Commerce Review

A major concern about South Asia’s economic development and its limited share in the global economy through trade and investment has been the lack of investment in infrastructure, including that of a regional nature. Lately, the imperative of addressing such an infrastructure deficit has resulted in a boost in connectivity projects in the region, which have long-term geopolitical implications. For instance: the Bangladesh-Bhutan-India-Nepal Motor Vehicles Agreement (BBIN MVA) or the Bangladesh-China-India-Myanmar Economic Corridor (BCIM-EC).

A study by the Asian Development Bank (ADB) estimated that Asia as a whole needs US$8.4 trillion between 2016-2030 for the improvement and development of transport infrastructure just to maintain its current status of economic growth. South Asia alone will require 24 per cent of this share amounting to an investment worth 8.8 per cent of their gross domestic product.

Although India is yet to articulate a clear long-term official policy for regional connectivity initiatives, sub-regional connectivity through road, rail and inland/coastal waterways involving Bangladesh, Bhutan, India and Nepal present a sustainable as well as economically viable case for it. It is the right moment for India to show that it can become a responsible partner in its neighbours’ development.

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