Is the SAARC Heading Global?

The just concluded SAARC Summit in New Delhi has turned out to be quite historic in its own way. Besides the usual rhetoric by the member-nations especially between India and Pakistan, the Summit has seen significant new developments which can change the future course of South Asia if addressed in a proper way.

The most significant outcome of this Summit has been the signing of the South Asia Free Trade Agreement (SAFTA). The Agreement was reached at the end of the two-day Summit of the eight-nation South Asian Association for Regional Cooperation (SAARC) in New Delhi. The Trade Agreement was through in effect since July last year but its full potentiality was so far held up due to differences of opinion between India and Pakistan. While adopting the Agreement the Pakistan Prime Minister, Shaukat Aziz, said that "effective market access through smooth implementation of trade liberalisation programme" should be ensured. With the coming of SAFTA in full force South Asia would at last realise its full economic and strategic potentiality. SAFTA should have been effective at least a decade back. If that would have happened the economic growth and development of South Asia would have been in some other level today. However though late, the  silver lining is that finally SAFTA is coming into effect.

The next step for SAARC after SAFTA should be visa-free travel and a common currency unit similar to the Euro and a common SAARC Monetary Fund for development on which the work has already started. The leaders of SAARC nations should also try to establish a common South Asia banking system for developmental projects and uniform economic growth

The idea of the Indian Prime Minister for a common train, air and road transport network and free transit facilities should be welcomed by all and all means should be tried for achieving this in the near future.

The latest inclusion of Afghanistan into the SAARC is a very positive development as without Afghanistan integration of SAARC as a regional forum was incomplete. The next step towards full integration of SAARC should be the inclusion of Myanmar in it as Myanmar historically has been a part of South Asia and could be a common point for future collaboration between ASEAN and SAARC.

A very significant development in this Summit has been the first time inclusion and attendance of major nations which are strategically and economically very important for SAARC in future.

The inclusion of South Korea, USA, China, Japan and the European Union as full-fledged observers has given SAARC not only a new teeth but has also enhanced its image as a significant economic and strategic forum at the global level. With the coming of these countries as observers has given SAARC a much wider platform for business and trade. It has also given SAARC a much wider strategic platform. Probably this could be a stepping stone for SAARC to attain a global image like ASEAN, APEC and other forums in near future.

by Suvrokamal Dutta, Mainstream, 13th -19th April 2007
The writer is a renowned expert on foreign affairs and economics; he is the Chairman, Global Council For Peace and the Convenor, Debating India.

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