The Guest Column

29th December 1996


SAARC moves slowly forward

by Stanley Kalpage


The seven-member South Asian Association for Regional Co-operation (SAARC) received a significant momentum in 1992/93 during the chairmanship of then Sri Lankan President, Ranasinghe Premadasa. Marked progress was recorded in a number of areas of regional co-operation.

Among these were negotiations leading to the signing of the framework Agreement on the South Asian Preferential Trading Arrangement (SAPTA); a consensus on the eradication of poverty in the region; co-operation and sharing of experiences in dealing with population problems; emphasis on the welfare of women and children in development; commitment to implementing programmes for the protection and preservation of the environment; adoption of the Regional Programme of Action for Disabled Persons; condemnation of terrorism and implementing measures to deal with the problem; endorsement of the recommendation for the establishment of a South Asian Development Fund (SADF), and strengthening of co-operation to tackle drug abuse and smuggling. These were projects of the greatest importance for the welfare of the people of South Asia. Four years later, as the foreign ministers of the SAARC met in New Delhi recently, one wonders whether the initiatives of 1992/93 have not been derailed.

The peace of progress in implementing SAARC Summit recommendations is all too slow in a fast changing world. When one considers the progress made and prominence attained by other regional organizations like ASEAN and APEC in Asia, the GCC in the Persian Gulf the OAU or the OAS, there is little movement evident in the activities of SAARC. It is of course true that SAARC was established for achieving co-operation in economic, social and cultural fields and that, in the words of its Charter, "bilateral and contentious issues shall be excluded from deliberations." However, faster progress seems to be necessary if common economic, social and cultural problems are to be dealt with expeditiously.

One of the positive results in the establishment of SAARC is an emerging regional consciousness in the South Asian region. People to people contact has been improved. South Asian chambers of commerce and industry have begun to exchange visits. Cultural festivals have been held. Speakers of parliaments have met and parliamentarians have resolved to establish an Association of Parliamentarians.

Dhaka Declaration of 1993

Since the Dhaka Declaration of 1993, the democratic process has resulted in leadership changes in five of the seven SAARC countries; only in Bhutan and in the Maldives has there been no such change. Inspite of these leadership changes, commitment to the ideals and spirit of SAARC must not be diminished.

The Dhaka Declaration of 10-11 April 1993 committed member governments to the eradication of poverty in South Asia, preferably by the year 2002 A.D., Shelter for All by the year 2000. Are these laudable, if ambitious, aims likely to be fulfilled?

The Dhaka Summit decided on the promotion of preferential trade through intra-regional co-operation. Even though a number of tariffs to the liberalization of trade have been removed, non-tariff barriers still remain. On the other hand, in the smaller countries there is debate and concern whether, as preferential trade moves into free trade, local production will be adversely affected by being swamped by cheaper imports from abroad. Problems are many but discussion and negotiation to resolve them must continue apace.

Two SAARC Regional Conventions have been adopted; one on the suppression of terrorism and the other on Narcotic Drugs and Psychotropic Substances.

A South Asian Development Fund was mooted in 1993. Earlier there was resistance to the acceptance of funding from external sources and any attempt to link up with other regional organizations was opposed. There seems no strong opposition now to seeking links with other regional bodies like the European Union the ASEAN and the countries of the Pacific Rim.

Poverty eradication

In his address at the Seventh SAARC Summit in Dhaka, Bangladesh, President Premadasa said, "The creative capacity of 450 million of our people has been crippled by poverty. Our common experience is that the empowerment of the poor would result in their productive participation. The Commission on Poverty Alleviation has synthesized these experiences. The Report of the Commission is before us. We must now take decisive measures. We should move ahead. Our goal must be the alleviation of poverty in all our countries by the end of this century." How near are we towards attaining this goal? What progress has been made in the implementation of the recommendations of the Commission on Poverty Alleviation?

Trade and Investment

The Council of Foreign Ministers of SAARC which met in Delhi the week 16-19 December discussed mainly questions of trade and investment. The countries of the region would benefit from economic growth spurred by increased trade. It was hoped that preferential trade as envisaged in the SAPTA would lead to a free trade zone by 2005.

At present trade between SAARC countries accounts for only three percent of the nations total trade. SAARC member countries have agreed to reduce tariffs on more than 1,500 products, a marked increase from the 226 items covered in the first round of talks ended one year ago. However some 4500 products remain untouched. Most of the trade concessions have been offered by India which is pressing for further talks to accelerate the free trade movement. India has already granted most favoured nation (MFN) trade status to the other countries so that in bilateral arrangements each will give the other the maximum tariff concessions on their mutual trade, which they already grant to other countries. But India has so far failed to win MFN trade status from arch rival Pakistan.

Political climate improves

India's relations with her smaller neigbours have improved with the advent of the United Front government. Water sharing arrangements between India and Nepal earlier this year between India and Bangladesh more recently have removed major bilateral irritants. Relations with Sri Lanka remain cordial ever since the Indian Peace Keeping Force left Sri Lanka in March 1990. Both India and Pakistan were hoping to have bilateral sessions on the margins of the SAARC ministerial meeting. An improvement in Indo-Pakistan relations is vital to the success of the SAARC.

Institutions everywhere are today getting ready for the next millennium. SAARC is no exception. A market tendency is evident towards regionalization in areas both of economics and international security. ASEAN, the regional organisation in south-east Asia, also dealt initially mainly with areas of economic and social co-operation. In 1976, ASEAN members adopted a Treaty of Amity and Co-operation for the Pacific Settlement of Disputes. Disputes among members are handled through mediation and conciliation within ASEAN. A similar arrangement might be considered for SAARC.

However, co-operation on matters of common security is possible only when there is a shared security consensus among its members. This is conspicuously absent in the SAARC region where India prefers the policy of bilaterlism in relations with her South Asian neighbours. India probably feels that this has the advantage that her neighbours will not gang up against her and internationalize contentious issues. India's policy has not been entirely successful as far as Pakistan is concerned but has been more successful in imposing India's views on other neighbours against all of whom she has common borders .The success of the SAARC enterprise depends therefore on whether India can adopt a more understanding and consensual attitude towards her neighbours.

President J.R. Jayewardene in his address at the inauguration of the SAARC in Dhaka in December 1985 said: "We must trust each other. India is the largest in every way; larger than all the rest of us combined. India can by words and deeds create confidence among us so necessary to make a beginning". This is as true now about the prospects for the future of SAARC as it was at its inauguration.

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