South Asia Regional Cooperation: What Is in It for the Citizens?
ASIA--PACIFIC, 17 Oct 2016
Kedar Neupane – TRANSCEND Media Service
13 Oct 2016 – During 1977 the President Ziaur Rahman of Bangladesh discussed the concept of regional cooperation in South Asia with the Indian Prime Minister Morarji Desai in New Delhi. This was supported by King Birendra of Nepal as the leaders were concerned about peace and security in the region. But the concept never took-off the ground until Soviet Union’s intervention of Afghanistan in December 1979. Bangladeshi proposal was then formally discussed at the Ministerial meeting in Colombo in April 1983. It was already clear at the meeting both India and Pakistan were skeptical about it and were suspicious over each other’s motive. This suspicion has never altered to this day and it could not be expected to be otherwise any time soon. Nonetheless, after years of haggling and wrangling SAARC was launched in New Delhi in 1983 for cooperation starting in areas of agriculture, rural development, telecommunications, meteorology, and health and population. The final seal of formal approval of SAARC’s existence came in December 1985 at the Dhaka Summit. It was then considered a milestone even though it took nine years of arduous gestation period. The Ruler of Nepal and leaders of Bangladesh and Sri Lanka’s were successful in persuading both Indian and Pakistan leaders to come to an agreement.
Over the years some progress was made, largely in papers, and few regional centres were created for confidence building and technical cooperation but much remains to be achieved. As painful as it sounds, after 12 years of background diplomacy and deliberations the South Asia Free Trade Area (SAFTA) Agreement (SAFTA) on Customs Union, Common Market and the concept of Economic Union was finally emerged in December 1995. Then again, it took additional nine years for SAFTA to conclude at the SAARC Summit in Islamabad in January 2004. Despite agreements on paper trade volume is still staggeringly low, hovering around 1% of the total GDP. Lack of full implementation of tariff-free movements of goods and services within SAARC countries any future prospect for direct capital investment within the region for comparative economic and trading advantages will remain a major challenge. SAFTA, in reality, has become a hostage to regional non-cooperation at a time of trade liberation globally. Unlike in ASEAN countries, competitive trading and visa-free travel by citizens of SAARC countries within member countries is still a dream. This is not even in horizons for there often cannot even meet and region has no direct road or air links between the SAARC capitals.
SAARC has become an outdated and ineffective institution for the purpose it was conceived by the original founders. This institution contributes little in creating positive climate for investment, trade, economic development and regional prosperity or in establishing socio-economic and political harmony. It has no road map on political cooperation, economic development and, above all, maintaining regional peace and security. With India and Pakistan, at loggerhead since inception, SAARC has become a glorified tea-party meet and smaller countries have become irrelevant to the feuding two big countries. SAARC is contributing little to the aspirations of the population even after three decades of existence. If it is to remain relevant radical reform is needed; otherwise consider abandoning altogether favouring the Bay of Bengal Initiative, known as BIMSTEC (comprised of Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal).
Given deep distrust and differences in strategic interests that exists since the time of partition between India and Pakistan and increasing political, economic and religious polarization in the region it is hard to expect SAARC will deliver better cooperation in coming years. For Pakistan, Kashmir issue is a raison-de-etre for maintaining its federation, moral identity and military supremacy over civilian politics. Any alteration to this configuration is a pipe-dream. Brotherly desire to meddle in the affairs of the smaller nations, with increasing sectarian intolerance and rising Hindu fundamentalism in India it is not able to contribute to the political and moral high ground in the region. This is not contributing positively in defining India’s role as a lead nation. Likewise, creation of Taliban as a strategic tool to bleed Afghanistan, India and the West, and increasing Islamization of Pakistani society it leaves no room for progress on issues that matters most to the citizens of SAARC countries.
Geo-politics have also changed after the fall of Berlin Wall in November 1989. No country has attained political stability and achieved economic progress without partnering with economic groupings and/or with power-house so as to benefit from trade liberalization and growth in Information Technology. For most part of the past decades bilateral relations of Indian and Pakistan within Bangladesh, Nepal, Afghanistan and Sri Lanka have seen ups and downs over the last three decades. This did not contribute to political harmony in the region. General euphoria created by the dethronement of monarchy system paved way for proclamation by Nepal as democratic and republic nation but it created some unexpected fault lines than in the past. It appears Nepal is slowly turning into a politically ‘failed state’ while economically it may remain on hold until the time remittances from diaspora dries up. In the process Nepal has lost its moral high ground and political acumen (some call it ‘soft-power’). This diminution is due to political anarchy, absence of economic leverage marred by dogmatism, poor governance and state-sponsored corruption which are contributing to near dysfunctional democracy and possibility of disintegration of the state. Nepal no longer carries any moral or political weight capable of influencing events erupting, from time to time, in South-Asia. Ironically, Nepal currently suffers from self-perpetuated political mess, communal disharmony and increasingly self-destructive ethnic divides, often fueled by political elites for party interests and political survival. Citizens’ interests are not in the political radar.
Nepal is the current chair of the SAARC and has attempted to revive holding of the 19th SAARC Summit. It, however, lacks a clear regional strategy, other than saving the Summit for the sake of saving the meet, with no purpose and tangible outcomes at a time when majority of countries like India, Afghanistan, Bhutan, Bangladesh declined to meet in Islamabad and Sri Lanka followed it later. This displays strategic paucity and misplaced priorities and breakdown of regional cohesion. Failure to have SAARC members’ get-together has been triggered by the skirmishes over the Kashmir disputes between the feuding giants. In effect, this has successfully isolated Pakistan. It would be wise if Nepal would divert resources (planned for SAARC Summit) on the survivors of the 2015 earthquakes and recent floods or invest in improving dilapidated infrastructures in the capital city Serving people should be the top priority rather than holding a jamboree of feuding politicians when fellow citizens are languishing in tented and/or temporary makeshift shelters, and suffering from malnutrition, diseases and hunger. Can’t the region learn right things to do from other nations? In recent weeks, newly elected Mayor of Rome withdrew City’s bid for 2024 Olympics stating that resources would be spent on restoring crumbling infrastructures of Rome and social services rather than holding international extravaganza.
Why not take some positive lessons from the achievements of the Association of South East Asian Nations (ASEAN) which has made remarkable economic progress and has become one of the largest trading blocs which continues to prosper? Grouping’s initial raison de etre also came under review with changing times and trend, and it capitalized on intra-regional trade and investments. In 1982, the Common Effective Preferential Tariffs (CEP) scheme and, later in January 1992, the Free Trade Area (AFTA) Agreement were adopted by phasing out tariffs for regional competitive advantages as a production base for world market taking advantage of trade liberalization. There is no looking back ever since.
Over the years, ASEAN has successfully forged trading relationships with China, Japan, South Korea, Australia, New Zealand, India and Russia. East Asia is still growing despite sagging growth in the Western hemisphere. Recognizing its prominence President Obama organized the US-ASEAN Summit in California, earlier in February this year, for enhancing further cooperation with the group.
Unlike SAARC, ASEAN is moving slowly towards creation of European Union style community. It has implemented visa-free travel by citizens of member countries within the bloc area. As of January 2016, professionals like physicians, dentists, architects, nurses, engineers, accountants, surveyors, and tourism experts are free to work in any ASEAN country. The grouping is also mulling over single entry-visa system for visitors from other countries and on the feasibility of single travel document for citizens of ASEAN countries in the near future.
Citizens of the SAARC region are wondering what is in the South –Asian cooperation for them, which is already over thirty years old, and how many more years would be required before something tangible happens and people of the region can be cherish the existence of this institution.
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Kedar Neupane is a retired senior United Nations official and president of ‘We for Nepal’ association based in Geneva, Switzerland. He has worked in several countries in Africa, the Middle East, Asia and Europe in his 38 years of service with the United Nations system. Email: Neupanek1950@gmail.com
This article originally appeared on Transcend Media Service (TMS) on 17 Oct 2016.
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