E-Kantipur

After nearly 26 years, Saarc member countries are finally making the right noises towards realising the long-term goal of a regional economic union. The 17th Saarc Summit stood out from previous onesfor clearly articuled vision and, most importantly, a renewed commitment by the largest country in the bloc; India.

The 20-point Addu Declaration commits to intensify the implementation of the South Asian Free Trade Agreement (Safta), harmonisation of national standards and measures, promotion of greater intra-regional mobility by facilitating more connectivity and empowerment of the Saarc Secretariat and other regional centres to make them more functional-beyond tokenism, towards properly functional supranational bodies.

The Addu Declaration has directed finance ministers to chart a proposal that would allow for greater flow of financial capital and intra-regional long-term investment. It has also shown urgency in concluding the Regional Railways Agreement and conducting a demo run of a container train from Bangladesh to Nepal via India at the earliest. It has also agreed to convene the Expert Group Meeting on the Motor Vehicles Agreement before the next Session of the Council of Ministers, to conclude the Inter-governmental Framework Agreement for Energy Cooperation and the Study on the Regional Power Exchange Concept and Saarc Market for Electricity.

Of course, Saarc countries have never shied away from making ambitious commitments on paper in the past, but this time there appears to be a real basis to underpin the aspiration.

Renewed commitment from the largest country in the association with “asymmetrical size and capacity,” points to the prospect of more rapid integration and removal of barriers.

“I reaffirm that India will do whatever is within our capabilities to make Saarc an effective instrument to deliver on our vision of common peace, shared prosperity and cooperation in South Asia,” Indian Prime Minister Man Mohan Singh said during the inaugural session of the 17th Saarc Summit, taking ownership of the regional project.

“In my discussions with the leaders of South Asia, I sense … a collective commitment and desire to give greater meaning and content to SAARC. Admittedly, there is a lot to be done but the political will is there. We have all come to believe that regional cooperation in South Asia is good for each one of our countries,” Indian PM Singh said.

Singh also said the process of integration should move faster, while acknowledging that India, given its size, had a special responsibility.

New Delhi’s growing inclination towards developing Saarc as an ultimate economic union is tempered with realism brought about by a change in geopolitics that has shifted economic power away from the developed countries. The global financial crisis has forced developing countries, especially those who rely on exports, to explore regional and domestic markets to sustain their growth. 

“I believe, if we can create favourable conditions for development at home, there is no reason why our investors should seek greener pastures elsewhere. The complete normalisation of trade relations in SAARC will create huge opportunities for mutually beneficial trade within South Asia,” said Singh.

South Asia is home to over a billion people or over 23 percent of the global population, but regional connectivity remains one of the weakest in the world. Intra-regional trade accounts for less than five percent. Half a century ago, South Asia had a far higher level of intra-regional trade. That suggests that the problems are largely political in nature.

Of late, intra-regional trade within the Safta framework has begun to grow rapidly, nearly doubling since 2009.

Collective interests

India had been predominantly obsessed with conventional security issues in the past. Its acrimonious relations with Pakistan, coupled with a relationship based on mutual suspicion with other smaller countries, made regional economic cooperation a secondary issue. But deescalating tension between Indian and Pakistan and the changing nature of security threats has made regional cooperation quintessential in advancing mutual interests.

Presenting a paper in a regional conference in Kathmandu enitled “Towards a more cooperative South Asia,” organised by the Centre for South Asian Studies last week, Pervaiz Iqbal Cheema argued that there has been a substantive de-escalation in tensions between India and Pakistan in the last 30-plus years.

“Among the positive trends include increasing realization that military approaches are unlikely to resolve issues, slow but decisive erosion of hostile attitudes, beginning of a peace process and the resumption of dialogue process, confidence building measures (CBMS), continuously increasing support among the general public, economic imperatives along with the advent of globalisation and the role of Saarc,” Cheema said. 

From India’s point of view, New Delhi’s inevitable ascendancy as a global power requires it to emerge as a “consensual hegemon” in the region. That means not only walking the extra-mile to normalise relations with smaller states, even if it is on non-reciprocal basis, but also continuing engagement with Islamabad-to show the world that India is a responsible power, capable of managing its affairs. 

The growing presence of extra-regional powers like the US, EU and China in South Asia also seems to have pushed New Delhi to secure its

sphere of influence through bilateral and multilateral engagements. China, an observer in the Saarc, went as far as proposing a Saarc plus one arrangement to cement its role in the region during the summit earlier this month. Such extra-regional forays into its backyard require India to do more.

There is a tremendous role for India to play in Saarc, akin to the role Germany plays and has played in the European Union. Like India,

Germany outsizes other countries in the bloc, yet it has been the undisputed leader, contributing asymmetrically to the evolution and development of the union.

Fortunately, there seems to be a growing realisation among Indian

decision makers that ambitions have to been matched by actions and that

credibility and acceptability in one’s own backyard makes projection power on the world stage more credible.

“Since a proactive, positive and engaged India is central to regional cooperation in South Asia,” said Ranjan Mathai, Indian Foreign Secretary while briefing journalists on November 5. “We remain committed to supporting Saarc projects even in an assymetrical and non-reciprocal manner,” he added.

With a newfound enthusiasm and so much untapped potential, forward is the only logical way for Saarc members.

john.parajuli@gmail.com

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