Asian Development Bank - SASEC Powering Asia in the 21st Century

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SASEC

POWERING ASIA IN THE 21st CENTURY

Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)

2017 Asian Development Bank

6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines

Tel +63 2 632 4444; Fax +63 2 636 2444

www.adb.org

Some rights reserved. Published in 2017.

Printed in the Philippines.

ISBN 978-92-9257-783-4 (Print), 978-92-9257-784-1 (e-ISBN)

Publication Stock No. TCS178708-2

DOI: http://dx.doi.org/10.22617/TCS178708-2

Cataloging-In-Publication Data

Asian Development Bank.

South Asia Subregional Economic Cooperation powering Asia in the 21st century.

Mandaluyong City, Philippines: Asian Development Bank, 2017.

1. South Asia Subregional Economic Cooperation. 2. Regional cooperation and integration. 3. Trade. I. Asian Development Bank.

The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent.

ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned.

By making any designation of or reference to a particular territory or geographic area, or by using the term country in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area.

This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) https://creativecommons.org/licenses/by/3.0/igo/. By using the content of this publication, you agree to be bound by the terms of this license.

This CC license does not apply to non-ADB copyright materials in this publication. If the material is attributed to another source, please contact the copyright owner or publisher of that source for permission to reproduce it. ADB cannot be held liable for any claims that arise as a result of your use of the material.

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Notes:

1. In this publication, $ refers to US dollars.

2. For this version of the document, SASEC countries will refer to Bangladesh, Bhutan, India, the Maldives, Nepal, and Sri Lanka. This document does not cover Myanmar, which became a SASEC member in February 2017.

Corrigenda to ADB publications may be found at http://www.adb.org/publications/corrigenda

Contents

FIGURES, TABLES, AND BOX

JOINT MINISTERIAL STATEMENT

ABBREVIATIONS

THE DEVELOPMENT CONTEXT

THE SASEC PROGRAM

MOTIVATION FOR A SHARED VISION

THE SASEC VISION

POTENTIAL SYNERGIES AND BENEFITS

POTENTIAL FLAGSHIP INITIATIVES

Pipeline Corridor between Bangladesh and India for Crude Oil Imports and Product Supply

Sri Lanka as an LPG Transshipment and Storage Hub

Passenger Car Assembly in Bangladesh

Supporting the Tourism Sector in the Maldives through Improved Connectivity and Services

SASEC as a Tourist Destination

Cross-Border Power Trade Between Countries of the Subregion

EXPECTED OUTCOMES OF THE VISION

IMPLEMENTING THE SASEC VISION

REFERENCES

Figures, Tables, and Box

FIGURES

1 Historical Gross Domestic Product Growth and Future Outlook for Asian Subregions

2 Proportion of South Asian Population in 15-64 Age Bracket

3 Impediments in Leveraging the SASEC Subregions Resources

4 Challenges Faced by SASEC Countries

5 SASEC Subregions Common Aspirations and Challenges

6 Framework for SASEC Vision

7 Summary of Subregional Synergies in Bangladesh

8 Summary of Subregional Synergies in Bhutan

9 Summary of Subregional Synergies in India

10 Summary of Subregional Synergies in the Maldives

11 Summary of Subregional Synergies in Nepal

12 Summary of Subregional Synergies in Sri Lanka

13 Refined Petroleum Product Import in Bangladesh

14 Refining Capacity and Projected Demand in Indias Northeast Region

15 Cost Comparison for Refined Petroleum Procurement

16 Major Suppliers to Asian Markets

17 Major Demand Centers in Asian Markets

18 Cost Comparison of LPG Movement from Sri Lanka and Singapore to Bangladesh (Chittagong)

19 SASEC LPG Demand Forecast

20 Southeast Asia LPG Demand Forecast

21 Size of Middle and Affluent Class of Bangladesh (million); increasing at a rate of 10.5%

22 Increase in Import of Passenger Cars in Bangladesh

23 Share of Automobile Sector in GDP and Employment by Country

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