|
SAARC has completed 20 years; what are the major gains in the region?
If you look at the SAARC processes, the main gain in the first two decades has been in building the institutional structure, which can be used for cooperative purposes. We now have in place a number of major institutions through which we can promote regional cooperation. Member countries have also identified certain core areas where cooperative action is necessary like in social sector, human resource, disaster management and terrorism. Identification of these issues has helped in creating opportunity and scope for collaborative measures.
What are the collaborative measures to counter terrorism in the region?
All SAARC member countries have raised their efforts to combat terrorism. SAARC has two conventions and a protocol on combating terrorism. But there has been a major breakthrough during the 13th SAARC summit where it was agreed that Home Ministers and Home Secretaries would meet every year to work out the strategy to combat terrorism in the region. The fact that we are coming together to address these issues collectively is a significant breakthrough in view of the past history of our region.
How is SAARC equipped to deal with one member country’s support to terrorist activities in another member country?
Your question is premature as the member countries have decided to deal with this issue, and they will eventually decide what needs to be done.
Pakistan had said there is no FTA without resolution of the Kashmir issue. Smaller countries have their own apprehensions. How does SAARC address this issue?
It is our hope that the FTA will benefit all members. That is the best way to ensure its success. And, I think, all member countries realise this. Once FTA becomes operational, we will know exactly how it will benefit the member countries. All countries have a common stake in FTA, and in its success. That success can come only when all countries are benefitting. Some countries are likely to benefit more than others, but they will all surely benefit. There are certain clauses in the FTA that give weaker countries more leeway in terms of how everybody does the trade. There are also clauses on revenue compensation to weaker countries. With this done, I think, no country should have any apprehension.
In other words, all issues are resolved and all countries are in agreement on FTA?
See, these are very ambitious projects. During the implementation process you may still hit a snag. But that is quite normal and the general experience with FTAs around the world. It is important, therefore, that we be committed to overcome that.
If you go by the current trade among SAARC countries, it is just about 5 percent of their total trade. Why is there such a poor level of business among the member states? What encouragement does it provide for FTA?
One of the reasons for this is the trade orientation in the region, which is directed more towards the West. After partition of the Indian sub-continent, Pakistan, Bangladesh, and India directed their trade towards the markets in the West. We did not have the scope to increase our exports among the countries in the region. The situation has now changed. So far as India and Bangladesh are concerned, Bangladesh is India’s largest South Asia trading partner. Official exports from India to Bangladesh are valued at US$1.6 billion, which is a sizeable chunk of India’s total exports, whereas Bangladesh’s exports to India are to the tune of US$150,000. India exports more to Bangladesh than to either Sri Lanka or Pakistan.
With the opening up of opportunities and the implementation of FTA, if smaller countries can increase their exports to India and Pakistan, this would to some extant correct the imbalance. And, I think, trade dynamics is such that most countries can benefit from the FTA if we are a little bit open minded. By giving such scope to smaller countries, larger countries can find new opportunities. So far, India and Pakistan have dominated intra-region exports; if we have the opportunity of exporting to these countries, the region’s trade volume will go up.
As almost all SAARC member countries trade in similar goods, there is not much product diversity in the region. In such a scenario what benefits do you visualise from the FTA?
There are two ways to look at this issue. If you look at this from a static perspective, you might become pessimistic that our production systems are such that we create more of competition than complementarities. But, when we look at it from a dynamic perspective, the whole scenario changes. You can create conditions that even if complementarities are not there, they can be created. This gives you new opportunities for investments to contribute more, create more exchangeable goods and services. I think the main appeal of the FTA is that you create dynamics within the region where you can create new opportunities.
So, the FTA is not just simplifying the trade regime; better coordination would be needed among member countries to harness the potential of each country to create newer ideas and goods...
In fact, this is what member countries are looking at. During the Dhaka Summit, trade facilitation agreements were signed, and there is scope for many more, so that more of complementarities than competition become an integral part of the grand reality of the South Asian economy. Therefore, that scope is there, and we have to make that scope. I’m not saying the FTA is the be all and end all of things. Trade facilitating investments are needed in the smaller countries; we need to find out if by creating complementarities, we can integrate South Asian economies to the outside world. By producing things together, we can have advantages in markets outside. So, the opportunities are endless. We shall be more imaginative in exploiting them. But, if we are not imaginative enough, we return to the kind of situation you earlier referred to.
What’s the relevance of Japan’s inclusion in SAARC?
Here, I want to clarify certain things. When the question of Afghanistan’s membership to SAARC was raised, in principle all members welcomed that Afghanistan should be included in the group; of course, they need to complete certain modalities. Requests from Japan and China for inclusion in SAARC as dialogue partner or observer were pending for a long time. During this summit, this expression of interest was welcomed. The member countries agreed that they will take China and Japan as observers once the modalities of their role and responsibilities are decided at the special session of the steering committee and the intersession council of ministers before April-July 2006. At the end of these two meetings, Afghanistan will be the new member, and China and Japan, ‘observers’, to SAARC.
This is a very positive development for SAARC. This shows that we have consolidated SAARC. Now we feel confident about engaging outside countries with SAARC processes.
Besides, Japan already has a collaborative tie-up with SAARC as it contributes US$200,000 towards the SAARC-Japan Development Fund, which is used for certain SAARC projects.
What role are China and Japan expected to play in SAARC?
It will be difficult for me to say anything speculative about that.
What’s the immediate roadmap for SAARC?
When Zia-ur-Rehman envisioned SAARC, the idea was that it should be the sum of positive energy of our nations. We shall try to harness the creative energy of South East Asia to improve the lot of the people in this region. Whenever you think about any SAARC initiative, I think, that the goal is so much there. This decade of SAARC has been declared as the Decade of Poverty Alleviation. For this, we need cooperation from all areas. Member countries will be increasingly expected to do more.
There is no alternative to collaborative approach in environmental challenges faced by the region as it is one ecological space; we also need to work together on optimising the use of our natural resources, and disaster mitigation and management. In fact, the possibilities in this direction are endless.
What are the major bottlenecks faced by SAARC in its developmental initiative?
So far, formulation and implementation of SAARC projects were rudimentary, as we did not have the necessary expertise or the institutional support at our disposal. Member countries have started to look at these issues, and, I think on the basis of past experience, they will put in place a very efficient mechanism for the implementation and completion of pan-SAARC projects.
|
