The concept of cooperation in relation to trade and commerce among regions

The concept of cooperation in relation to trade and commerce among regions

In the middle of the scheme for regional incorporation, the South Asian Association for Regional Co-operation is relatively a new concept subject to the tremendous reflection of socio-economic conditions of these regions. The framework for the SAARC programme started on in the early 1980 was created by the specific economic and political developments for the preceding years. Economically, the failure of the North- South negotiations in the late seventies induced many developing countries to explore the possible areas of South-South co-operation. A number of initiatives on regional co-operation were launched at that period. For example, Economic Community of West African States (ECOWAS) in 1975 and Southern African Development Co-ordination Conference (SADCC) in 1980 were formed. With the collapse of the dream of  an equitable global economic order, many states turned their attention towards their own region. Nearly every continent now has some kind of regional organisation, sometimes more than one.

SAARC is one of such arrangements. Politically, the bilateral atmosphere between India and some of its neighbouring countries deteriorated during 1974-76. As a result, these neighbours started looking for regional and international approaches to pressure India so as to extract accommodation from it on their respective bilateral issues. Bangladesh’s attempt to raise the river-water sharing issue at the UN in 1976, Nepal’s proposal to get itself recognised as a zone of peace and Pakistan’s active diplomacy at the UN in to get South Asia declared as a nuclear-weapon free zone may be recalled here. Soviet military intervention in Afghanistan in 1979 brought about a serious deterioration in the South Asian security situation and created an urgency for getting together in the region. Although it is true that the external pressures to form a South Asian regional organisation were not as great as it was in the case of the European Community or ASEAN, they were not entirely absent or insignificant. Internal or external what ever was the cause the level of urgency for regional co-operation was not equal among the South Asian states.

           

In May 1980, Bangladesh had mooted the proposal for a South Asian regional organisation after sounding out some small South Asian states. India and Pakistan, the two big powers in South Asia, expressed strong reservations. This hesitancy reveals the existence of heterogeneity among the South Asian states. India was highly suspicious of the proposal and viewed it as a new device to institutionalise the neighbours ‘ganging up’ against India to extract concessions on issues  affecting each of them individually. Pakistan feared that any South Asian forum would eventually further India’s interests and legitimise its regional dominance  in South Asia. Also, according to Pakistani view, in South Asia economic and political conditions for institutionalising regional co-operation were missing. Both India and Pakistan accepted the proposal for regional co-operation only ‘in principle’. They could accept a regional forum only when it did not seek to undermine their respective interests. Accordingly, it was suggested that unanimity in decisions and avoidance of bilateral and contentious issues should constitute the basic norms of the proposed forum.

Keeping in mind those diverse attitudes, the seven South Asian states (Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka) formally started their co-operation from their first summit held on 8th December 1985 in Dhaka. They were aware that heterogeneous issues might hinder their co-operation, but for attaining their respective objectives they decided to work together. Their desire for economic emancipation, helped them to start rethinking and reassessing  their own resources.

           

Although the seven South Asian states started their integration,  the prospect of SAARC as an effective body for regional integration continues to be viewed with scepticism. When  countries in other regions are trying to minimise their differences, it is disconcerting to see that this region (home to half of the world’s poor) remains trapped in conflict and war, sapping its energy and resources that could be diverted to launching an offensive on poverty. In this post-cold war period, and at a time when we are at the threshold of a new century, South Asia should not be out of peace, harmony and development even for a single day. Analysis of differences among the SAARC states and suggesting solution is  thus a very important and timely issue.

             

In the present paper focus will be placed on the heterogeneity among SAARC states and its effect on the regional integration process in South Asia. There are of course  some strong commonalties among the South Asian states, for example, their colonial past, a broadly common attitude towards Western countries, common needs development,  common needs to alleviate poverty, some similarity in culture, etc. These similarities could  be helpful for the states  to minimise their differences. And one most positive aspect is that the member states of SAARC are hopeful about their success. In the paper I will also try to show that, if heterogeneity is greater in South Asia, the regional integration will be less effective. In case those differences can be  minimised,  greater integration will be possible. 

The first chapter will give an overview on the general issue of regional  integration, including some specific reference to SAARC. The second chapter will focus on heterogeneity among the SAARC states. The third chapter will address heterogeneity in the political field and searching for commonality in this area. The fourth chapter will concern heterogeneity and convergence in economic areas.