South Asia Economic Niti
Chanakya
Beginning of the South Asian summit brings about another round of usual
discussions on regional co-operation. The rhetoric of regional and mutual
benefits will again surface with plethora of write-ups, workshops and
seminars. However, little will focus on the future of the regional economy
in a region that comprises of one big economic shark and other small fishes.
When SAARC began a decade and half ago, the old order was still in place.
Liberal economic policies were unheard of and technology was yet to make
the world as small as today. China did not ride an economic wave nor the
Indian middle class had become the attraction of global players. Protectionism
was the call of the day and, in the license regime, few business people
benefited from their connection with the government and politicians. IMF
and World Bank still had fewer packages to offer for reforms and social-welfare
seemed to be the economic destination.
The SAARC now is at a stage where introspection of its utility from
economic stand point is being talked. In an era where WTO is going to
change the world trade order and China is emerging as a global economic
super power, what does Maldives have to do with Nepal is becoming more
an interesting question to ask. What is the forum providing for the economic
future of the region?
Has exports from Pakistan to Bangladesh eased or Nepali tea is blended
in Sri Lanka for exports to Europe? What has really SAARC now got to do
with the economic benefit of the region? SAARC cannot ignore to have focus
on economics as regional trade blocs are going to emerge as the future
order of global trade and business. With the advent of WTO, countries
will have to group together in finding their collective as well as individual
competitive edges. The regional blocs would be required to create non-tariff
barriers to combat cheaper imports. The necessity at this point of time
is to understand the nature of the various such blocs being created and
deciding upon what best would be the model for South Asia.
The emergence of China as a strong force and India's slower stride of
economic growth would lead to other smaller nations in the region realigning
their positions. No one would like to negate an emergence of a new superpower.
The nature of the trade bloc shall also be determined by this crucial
factor. Countries like Nepal may enjoy a special status with India as
of now in terms of trade but in case the benefits of trade and investment
shall in future be better with China, the focus will shift. In such a
situation South Asia may not be a relevant adage.
The time has now come to examine South Asia in terms of its geographical
as well as economic limitations in the context of opportunities that exist
for individual nations in the future. By the time the nations group together
and politically accept a free trade regime, the meaning of South Asia
and SAARC may just relegate to merely an academic concept.
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