To make 2007 a turning point in the history of SAARC, as declared by the PM of India, all member states must bridge the gap of trust deficit and sideline politics in favour of economics in the lager interest of the region.
SOUTH ASIAN ASSOCIATION FOR REGIONAL CO-OPERATION (SAARC) represents more than one-fifth of humanity, combining population is more than 150 crore. It is the largest regional grouping in terms of human resources than that of EU and ASEAN. But nearly half of its population is living below the poverty line. SAARC was formed in 1985 with the goal of raising the living standard of the region’s poverty stricken people. But unfortunately it has not been able to leverage its full potential.
In 22 years-13 summits, not encouraging. The functioning of SAARC has suffered most because of political differences between its two major constituents-India and Pakistan. New Delhi’s gigantic size in terms of natural and human resources, military capability and an emerging economic power creates apprehension of its future role in SAARC, in the minds of other constituents. The growing importance of India in both inter regional and international field as a major actor in terms of economic and military capability appears to have negative consequences in the psychology of other SAARC member countries.
Set up in 1985, SAARC has passed its disturbing teen phase and now in 2007, April 3-4 it touched 22 years, more responsible than ever before. The attainment of the maturity of SAARC is reflected from the fact that it has expanded itself by admitting Afghanistan as the eighth member state and giving China, South Korea and Japan observer status. The United States and the European Union also observers, sent high level delegation to the summit. Iran was given permission to join as an observer next year. In the 13th summit, 2005, held at Dhaka, the decision on Afghanistan, to join SAARC was taken.
The new dynamism of SAARC and its willingness to move forward is reflected in the statement given by the PM of India: “We stand today at the crossroads of historic change and opportunity. I believe that this summit has given us the hope that we can live in peace and amity and the confidence that we can make SAARC work. I pledge to work sincerely under the able guidance and cooperation of the leaders of South Asia to make the year ahead a turning point in the history of SAARC. I believe that a new dawn is breaking out over South Asia and that we are all set to fulfill the promise and vision of SAARC.”
South Asia-India’s role
South Asia is a region of paradoxes. Member states of SAARC are uneven in size, population, resources and among them India is the juggernaut. India shares its border with five other SAARC countries. None of the other member states, except Pakistan and Afghanistan, share the border with any other member states. Because of the political and other differences, among its members, its functioning has been affected. Other member states look at India suspiciously because of its elephantine size in terms of its population, resources, economy, and its potential to act as a global economic and strategic power. The Kashmir issue with Pakistan, refugee and border problem, problem of providing safe haven to ISI activities in Bangladesh, the LTTE factor with Sri Lanka, and Maoist problem with Nepal are major issues yet to be solved in India’s bilateral relationship with its neighbours.
Many ethnic, linguistic and social conflicts within the South Asian countries are the legacy of the colonial role. Therefore it was difficult for member states of SAARC to cooperate each other in political and economic field.
The 14th summit took place in propitious circumstances. Before the summit, the ministers of India and Pakistan were talking of and hoping for some kind of breakthrough. More and more observer states flocked to the SAARC. The world is keenly looking towards SAARC.
Since the Islamabad summit (2004 Jan) and 2005 earthquake, the political situation between India and Pakistan has improved and both countries have taken steps to improve bilateral relationship and to resolve all outstanding issues. Srinagar –Muzaffarabad bus journey in April 2005, opening of some points along LoC for transportation of relief and relief materials and also for civilians alongside LoC to meet each other etc. are some confidence building and humanitarian measures taken by both governments of India and Pakistan to bridge the gap of trust deficit.
Bilateral conflicts are stumbling blocs to progress in the south Asian grouping in the past two decades despite its tremendous potential. The SAARC was expected to become dynamic in its third decade. South Asia must go beyond bilateralism. All countries must cooperate with each other to expedite development in the region.
Economic Integration
If the intra regional trade of SAARC is compared, it is barely $6 billion, whereas for NAFTA, the intra-regional trade between three partner countries is around $767 billion (India Year Book 2005). The region should be integrated economically in the pattern of ASEAN AND EU. The European Union member states have a history more bitter than the South Asian region, despite that, these 27 member states of EU now successfully integrated economically have left behind their war ravaged past. No doubt the eight countries of SAARC have different political and social systems, ideologies, but all these countries of this region face the problem of underdevelopment and its spillover effects.
SAARC is still very far from maturing as a regional grouping. The first step towards economic integration in south Asia came in the form of SAPTA (SAARC Preferential Trading Arrangement) from the end of 1995. The progress of SAPTA is extremely slow. Due to this fact India arranged its own FTAs with Sri Lanka in 2005, with Thailand and now talks are on with Bangladesh for FTA. At the Islamabad summit of SAARC, January 2004, a major breakthrough came in the framework on the South Asian Free Trade Area (SAFTA). In the 14th New Delhi summit SAFTA was big on the agenda with both India and Pakistan not giving room to each other for any trade concessions, Pakistan adamant on sticking to its old stance of making all economic progress conditional to the resolution of political disputes.
Declarations at the 14th summit
If we look to the declarations of the 14th summit, the Heads of State or Government of the eight countries agreed to build a Partnership for Prosperity and work towards a shared economic cooperation, regional prosperity, and a better life for the people of South Asia, and equitable distribution of benefits and opportunities of integration among the people and the nations. They agreed to the vision of the connectivity of the south Asian community where there will be smooth flow of goods, services, peoples, technologies, knowledge, capital, culture and ideas in the region. They stressed for pro poor orientation of growth process, investment in human capital and infrastructure, innovative models of development, implementation of the Social Charter which was signed in 2004 Jan. They underscored that civil society organizations have a vital role to play in driving forward the implementation of the Social Charter.
The member states emphasized that in its third decade of existence, there was an urgent need to move SAARC from declaratory to implementation phase. The focus of SAARC should be on implementing collaborative projects. They also stressed for the early identification and implementation of the SAARC Development Fund (SDF) and Social Charter.
Another important thing which was stressed in the summit was energy security in the region and deep concern at the continued degradation of environment, concern over global climate change and its consequences and its impact on the lives and livelihoods in the region.
Declarations were also made in respect of trade, South Asian customs and economic union, culture and social ties, SAARC scholarship scheme, women empowerment, challenges of terrorism, natural disasters, food and nutritional security, corruption etc.
No doubt the Delhi Declaration has infused a new sense of purpose and determination among the leaders of SAARC. It has also declared the year 2008 as the “SAARC Year of Good Governance”. There is obviously a realization that unless poverty is addressed seriously, growth rates and development will have no meaning to a vast majority of the people. So also the impact of terrorism in South Asia. It needs political will to crack down on terrorism and terrorist infrastructure. Addressing the two problems is essential if SAARC is to become an effective instrument for co-operation.
Conclusion
SAARC has miles to go and multiple roles to perform. It has shown willingness to progress together by admitting Afghanistan as a new member and giving China, South Korea and Japan as observer status. Despite the new dynamism and a new sense of purpose shown by the leaders at the Delhi summit, regional politics and bilateral trust deficit is going to play a vital role in determining SAARC’s success. In this summit Afghanistan as the new member went public accusing Pakistan of supporting the Taliban. Nepal is in favour of giving China the member status by further expanding the area of operation of SAARC, which India may not like. The great wall of politics acts as a stumbling bloc. SAARC should learn from the success of EU. With the resolve to make South Asia not a ‘nuclear flash point,’ not ‘the most dangerous place of earth to live in’, but a South Asia of cooperation, peace, mutual understanding, so that SAARC can fulfill its basic objectives for which it was formed.
Now the summit is already over. Instead of issuing declarations after declarations the organization should strengthen itself, learning from its own past and others. It is politics, which divides, economy that unites. The EU, the countries of the Mekong sub region applied the principle of economic cooperation, sidelining their political difference, in making their region more integrated economically. It is along way to go for South Asian Economic union as proposed at Kathmandu Summit in 2002 or the common currency as proposed by Sri Lanka’s president at the 14th summit to speed up regional integration. It may be too early to follow these ideals. Trade should be given prime importance and steps should be taken for the full operationalisation of SAFTA by all the member states. Disappointing the fact is that Pakistan stuck to its old stance of making all economic progress conditional to the resolution of political disputes. To make the year turning point in the history of SAARC, as declared by the PM of India, all member states must bridge the gap of trust deficit and sideline politics in favour of economics in the lager interest of the region.
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