National 1 (Spotlight Weekly)

Twin Concerns

The leaders of the region have two major challenges to overcome: terrorism and poverty

By SANJAYA DHAKAL

PM Thapa : Leading Nepal delegation

When heads of states and heads of governments of the seven member states of this region meet in Islamabad in January 4-6 for the 12th SAARC Summit, they will have twin concerns – how to overcome the widespread poverty and the growing threats from terrorism.

First and foremost challenge of this region is the poverty. Home to one fifth of humanity, the region boasts of 40 percent of the world’s absolute poor. The Human Development Index (HDI) of the countries of this region clearly points to this fundamental problem. According to the global Human Development Report 2002, the HDI of Nepal is 0.490. Bangladesh’s HDI is 0.478 whereas that of Pakistan, Bhutan, India, Sri Lanka and Maldives stands at 0.499, 0.494, 0.577, 0.741 and 0.743 respectively.

“The adult literacy rate of South Asian region is 48 percent, which is way behind that of 55 percent of Sub-Saharan Africa and 89 percent of East Asia (excluding China). South Asia's per-capita income is US$ 309, compared to $ 555 in Sub-Saharan Africa, and more than US $ 10,000 in East Asia. The gap in the per-capita incomes between South Asia and East Asia (excluding China) has widened from US $ 200 in 1960 to US $ 9,700 in 1993. While factors like higher investment in human capital, outward looking trade strategies, land reforms, prudent fiscal and monetary management and investment friendly policies explain the success stories of East Asia, one important factor contributing to it is relatively high priority given to economic and development issues in relatively conflict -free conditions, unlike in South Asia,” states Dr. Ram Sharan Mahat, former finance minister in a paper.

As such, there is no alternative to focusing on the poverty alleviation in this region. And it would certainly work better if all the countries of the region join hands.

Another important challenge before the region is the growing threat of terrorism. Almost all the countries of the region, with the exception of Maldives, suffer from various degrees and forms of terrorism. The conflicts and insurgencies have been holding this region to ransom for long, which is, in turn, impeding the economic development.

“The 12th Summit is expected to focus on these two agendas. It will also formulate the regional poverty profile as well as discuss to strengthen regional cooperation in dealing with the threats of terrorism,” said a senior foreign ministry official.

Likewise, it will also adopt the SAARC social charter, among other things. Apart from these, the Islamabad summit is likely to see the signing of the much-awaited regional free trade agreement. Recently, the envoys of the SAARC countries had expressed optimism over the adoption of South Asian Free Trade Area (SAFTA). “India will go to Islamabad with a positive attitude and constructive spirit,” said Indian envoy Shyam Saran.

The Pakistani ambassador Zamir Akram had noted, “The countries can mutually benefit good neighborhood.” Likewise, Sri Lankan and Bangladeshi ambassadors also stressed on the need for greater economic cooperation within the member states. Ambassador-at-large Dr. Bhekh Bahadur Thapa said that weaker members of the SAARC should be given an opportunity for progress.

But the failure of the meeting of the commerce secretaries of the SAARC countries, which met a week ago at Islamabad to finalize the draft of the SAFTA does not augur well. The issue has now been handed over to be discussed at foreign secretary and foreign ministry level after the developing countries declined to extend concessions as demanded by least developed ones. Nepal, Bangladesh, Bhutan and Maldives have demanded the removal of anti-dumping duties and other trade barriers to which India, Pakistan and Sri Lanka did not show flexibility.

Unfortunately, though the South Asian Association for Regional Cooperation (SAARC) is already two decades old, there is a tendency of feeling triumphant at the mere organization of its summit. So, this year when Indian Prime Minister Atal Behari Vajpayee confirmed his participation at the 12th Summit in Islamabad, there was such a sense of euphoria that people were led to believe that the mere holding of summit is enough of a success.

Amid these mixed signals, one hopes that the success or the failure of the upcoming Summit will not be measured merely based on whether Indian PM Vajpayee shakes hands with Pakistani President Pervez Musharraf.