From left: IPS Research Fellow Dr. Janaka Wijesiri, South Asia Watch on Trade, Economics and Environment (SAWTEE) Executive Chairman Dr Posh Raj Pandey, IPS Executive Director Dr. Dushni Weerakoon, the Research and Information System for Developing Countries (RIS) Director General Prof. Sachin Chaturvedi, the Centre for Policy Dialogue of Bangladesh Distinguished Fellow Prof. Mustafizur Rahman and Sustainable Development Policy Institute Executive Director Abid Qaiyum Suleri
Pic by Waruna Wanniarachchi
- Highlights need for shift in political structure and thinking for regional integration
- Says despite an ambitious start in 2008, the process has now come into a grinding halt
- According to World Bank, South Asia is the least integrated region in the world
- Proposes to amend SAARC charter to provide more flexibility for greater co-operation
By Nishel Fernando
South Asian academics and think tanks yesterday expressed hope for a shift in political structure and thinking to move forward with regional integration, which has come to a grinding halt due to regional geopolitical rivalries.
“When we inaugurated South Asia Economic Summit in 2008, we had the SAARC Free Trade Agreement with the vision of European Union like economic union by 2020.
“That vision is something that still drives us and we are hopeful there will be a change in political structure as well in political thinking and South Asian Association for Regional Cooperation (SAARC) will proceed,” the Centre for Policy Dialogue of Bangladesh, Distinguished Fellow, Prof. Mustafizur Rahman said.
He made these remarks at the inaugural session of 12th South Asia Economic Summit (SAES XII) themed ‘Shaping South Asia’s Future in the Fourth Industrial Revolution’ held in Colombo yesterday.
Kicking off the Summit, Sri Lanka’s Institute of Policy Studies, Executive Director, Dr. Dushni Weerakoon acknowledged that the official process to reform and deepen the South Asian regional block has come to a grinding halt limiting opptrunties to address global and regional issues collectively.
Her sentiments were echoed by South Asia Watch on Trade, Economics and Environment (SAWTEE), Executive Chairman, Dr.Posh Raj Pandey who went on to say that the progress in regional integration has been very slow during past 31 years.
According to the World Bank (WB), South Asia is the least integrated region in the world with inter-regional trade amounting to little over 5 percent of total trade in the region, particularly due to high traffic, non-tariff barriers and lack of connectivity.
Dr. Pandey also pointed out that the current institutional structure of SAARC Secretariat remains very weak. Hence, he proposed to amend the SAARC charter to provide more flexibility for greater cooperation.
“As think tanks, the members of the society and private sector, we have a responsibility to convince our political masters the benefits of cooperation and cost of non-cooperation,” he said.
The speakers pointed out that the region faces key shared issues such as rising inequality, impacts of trade wars and disruptions from the Fourth Industrial Revolution.
Dr. Pandey opined that asymmetry in the level of development and power as well as suspicion and mistrust among South Asian peers have hindered the opportunities for greater economic integration.
As an increasing number of South Asian nations are graduating from low income categories due to high economic growth, Research and Information System for Developing Countries (RIS), Director General Prof. Sachin Chaturvedi stressed that SAARC nations need to review and identify new areas of cooperation. “This is a time that we have to reflect in retrospect of connectivity and identify possibilities of co-operation among all of us. We need to see how we can move forward collectively in terms of assuring equity access and inclusion in the region. “It’s also important for us to see how reconfiguration of trading arrangements are going to contribute in terms new production structure and value chains,” he elaborated.
Despite the minimal progress in regional cooperation, Prof. Rahman noted that bilateral, sub-regional level and private sector level progress in the region is an encouraging signs of prospects for future regional integration.
“As think tanks, we have a duty to come up with actionable agendas, so that our countries and governments will be ready to address these challenges in the future,” he said.
The South Asia Economic Summit was initiated by one of Sri Lanka’s leading economists and former IPS Executive Director late Dr. Saman Kelegama in 2008.
