South Asia has yet to work out a common strategy

-Prof. Sridhar Khatri, CASAC, Nepal

The role of the private sector in the development of the global economy is a recognized phenomenon. Historically, it has been in the vanguard of the industrial revolution and even from the earlier days in the forefront of what we today consider globalization. It is in essence a dynamic force that is result oriented and less inhibited by political considerations, such as those factors which have inhibited the growth of the SAARC process. Experience from other parts of the world show that the private sectors can often open new vistas in the economy of nations and regions, which may even lessen political inhibitions in the long-run as the benefits of cooperation and the costs of non-cooperation become more apparent.

Witness, for instance, the role of entrepreneurs in both Nepal and India in bringing about a relatively successful trade agreement a few years ago, and the impetus which the SAARC Chamber of Commerce and Industry-SCCI-has attempted to provide to the process of regional cooperation by pushing forward the theme of a free trade area and an economic community at even a faster pace than the governments had been willing to consider the prospects earlier.

On the other hand, the selection of three themes-investments, energy and tourism- for our deliberation was made for practical reasons. All three fields in their own right stand out as important sectors not only in each of the individual countries of South Asia, but also in the region as a whole. For capital starved economies/regions, such as ours, the past lexicon of foreign aid has become less relevant today with these countries/regions adopting liberal policies to encourage FDI inflows towards their economic development.

The FDI from privatization in South Asia is the lowest -2.1%- among developing countries, with even Sub-Saharan Africa showing better results than our region (7.6 percent). This raises the question as to how South Asia can act jointly to improve its ability to attract foreign investment, and more importantly how even the smaller countries, like Nepal, can benefit from the process that is greatly skewed in favor of the larger economies of the region.

Energy is yet another factor that has always been the force and vehicle for economic growth and development. When European integration started back in the 1950s, the European Coal and Steel Community became the symbol of initial integration. After nearly two decades of the regional cooperation in South Asia, the region has not been able to set its priority in the energy sector, although talk about a South Asian Growth Quadrangle-SAGQ- is very much in the cards. With energy surplus country, energy starved ones and those with vast potentials in both hydropower and natural gas all in this region, South Asia has yet to work out a common strategy. The private sector has a crucial role to play, though much of its will initially depend on governments to work out the basic modalities first among themselves.

And the tourism sector is also another economically viable sector where there is lot of possibilities. From a collective marketing strategy for selling tourism in South Asia to creating a regional airline for the region, the field is entirely open these days in which the private sector can also plan a pivotal role.

The Coalition for Action on South Asian Cooperation- CASAC-FES-Friedrich Ebert Stiftung- partnership in this regard has worked well. During the meeting of our-read CASAC- Executive Committee in New Delhi only last week, which Dr. Alfred Diebold-the FES Chief, Nepal, we have been assured by the FES that this partnership will continue in the future. In this regard, I’m happy to inform you that FES has also agreed to support yet another major CASAC initiative in the region that will take place in Kathmandu from December 1-3, 2000. This will be the first meeting of the "Citizen’s Commission for South Asia", which the former Prime Minister of India, I.K.Gujral, has agreed to chair.

One of the common issues in SA is market liberalization

-Prof. Ananda Shrestha, NEFAS, Nepal

The growing interdependence of the nation-states in thew world is forcing the private sector and civil society of South Asia to become more efficient, productive and competitive. The future of South Asian peoples require sustained efforts of the public-private partnership and removal of all uncertainties plaguing policy regimes. Brave and enterprising leadership, the perseverance to pursue reforms and willingness to adopt innovations are the most important factors in recapturing South Asia’s economic dynamism.

One of the common issues in the region is market liberalization, which has brought enormous change in the market dynamics of South Asia stimulating individual enterprise, invention and creativity. Still, the core question is whether the private sector of South Asia remains eager to craft proper strategies in bringing the states and the civil societies into a new sort of cohabitation. This is not an idle question. An endeavor to ride the wave of globalization requires the synergy of agricultural, industrial and informational development. It requires an ability to cut in tandem with the pace of change-a change that renounces the old models and values and compete and collaborate to achieve common strength from diverse countries. Increasing cooperation among the private sectors is pivotally important to overcome not only South Asia’s poverty but also to nurture pluralistic and transparent societies aspiring for development.

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