Expediting Connectivity Networks: SAARC Motor Vehicle Agreement (MVA)

On June 15^th India made an emphatic beginning for enhancing its connectivity by signing Motor Vehicle Agreement (MVA) with Bangladesh, Bhutan, and Nepal at Thimpu. The Bangladesh, Bhutan, India and Nepal (BBIN) platform officially took off with pledge of extending the connectivity to other spheres including the digital connectivity. Incidentally India intends to deepen its cooperation with nations by accelerating its connectivity.

To this end, India has signed a Memorandum of Understanding (MoU) with Iran in May 2015 towards development of the Chabahar port through construction of two berths-one for handling container traffic and other a multipurpose cargo terminal. India also plans to build road-railway network from Chabahar to Milak in Iran in order to link it with Indian build 223km Zaranj-Delram road in Afghanistan. Chabahar located in the Gulf of Oman is strategically important to India and 72km away from the Gwadar port in Pakistan. By building a road and railways India would have access to Afghanistan through sea and rail. Since Pakistan has sealed his boundaries the Indian joint venture with Iran will create a viable trade route to Afghanistan and Central Asia.

While Pakistan is free to join the BBIN platform to get the benefit of being connected in the trans-Asian rail and road network it chose to stay away to deny India land access to Afghanistan and beyond. Connectivity is key to develop intra-regional trade and for overall economic development. Interestingly leaders of the South Asian Association for Regional Cooperation (SAARC) and Association of South East Asian Nations (ASEAN) in their summit conferences emphasised on the need for connectivity.

SAARC regions has agreed on increasing the intra-regional connectivity in “seamless manner” through rapid up gradation and construction of roads, rails, waterway, energy grids and air links to “ensure smooth and cross border flow of goods, services, people and technology”.

The staged implementation of the Motor Vehicle Agreement (MVA) will start by October 2015. The estimated cost for these transport connectivity projects is over $8 billion and this endeavour is actively supported by Asia Development Bank (ADB) by its South Asian Economic Sub-Regional Economic Cooperation (SASEC). Inefficient transportation connectivity in these countries has been a greatest obstacle in realising fullest economic and trade potential so far.

The larger version of SAARC MVA couldn’t be signed in the last SAARC summit at Nepal due to the severe reservations expressed by Pakistan. The finalisation of the BBIN MVA is a humble beginning in the direction of deepening of integration for regional peace, stability and prosperity of South Asia. Hence other SAARC nations are expected to join. While the conceptualisation of this agreement is a land mark in itself efficient implementation of its objectives is vital for its success.

Already sceptics have expressed concerns about the functioning of bureaucracy in these countries as this over-arching framework needs meticulous planning in formatting the procedures acceptable and convenient to all the parties. This exercise involves not only development of robust infrastructure but only managing border controls. Perhaps, BBIN should take crucial lessons from EU which has efficient system in place. ASEAN countries too fare badly in this aspect due to entrenched suspicions and difficulties associated with intra-regional movement of goods and people.

In the year 2000, India, Iran and Russia conceived a multi-model transportation corridor, International North South Corridor (INSTC) for promoting transportation cooperation among the member states. This connects the Indian Ocean and Persian Gulf through Caspian Sea via Iran and goes on to connect St. Petersburg and North European region through Russian federation. India must develop its INSTC linkage with Chabahar port which will provide alternative access to Afghanistan. The port of Chabahar was offered to India by Iran for development in 2003 but the agreement couldn’t be materialised. Now India intends to lease the port for 10 years.

In reply to the China’s One Belt One Road (OBOR) India has quietly but deftly moved ahead by launching its One Rail One Road (OROR). While the China’s ambitious programme which was financed by its deep pockets India has little resources and might be needing long term financial support to further expand its OROR. Propitiously neighbouring countries of Myanmar and Thailand have agreed to develop motor vehicles pact on lines of SAARC MVA to foster greater economic cooperation in ASEAN region. India has achieved another major breakthrough as it is going to sign similar pact with Myanmar and Thailand. Wary of the undeterred expansionist attitude of China the South East Asian Countries might have little opposition to join the India’s OROR.

Interestingly, India which is known for its proactive commitments and poor ground work displayed exceptional enthusiasm to transform the vision of the SAARC nations into reality under the active foreign policy strategy pursued by Prime Minister Narendra Modi. His forthcoming six country central Asian countries tour in the Mid July is aimed to enhance the connectivity of India and establish dynamic trade routes.


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