Daily Times

Liberalism remains valid. Isn’t it? Indeed, yes. Connectivity and interdependence, even in the domain of trade and economy, enable interstate harmony, stimulates regional stability and encourages peace. Adopting geopolitical approach to economic interdependence for increased integration shall enhance socio-economic standards of struggling masses including 16.7 million children abused in child labour in the states of South Asian region. Join hands to embrace promising future South Asia holds.

Regional integration is predominantly encompass trade and investment in a particular geographic region. A step towards wider regional integration has prospects for larger benefits for consumers and socio-economic dividends for the countries involved, and for world at large. Manifestation of this fact is European Union (EU), Association of South East Asian Nations (ASEAN), Regional Comprehensive Economic Partnership (RCEP), and Belt and Road Initiative (BRI) where common and shared economic interests of involved nation-states have engaged in improved and positive relations; and have brought even conflicting rather the warring states together – swords replaced serenity.

South Asia defined by eight countries – Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka – of varying economies, differing cultures, ethnicities and political shades. South Asian Association for Regional Cooperation (SAARC) is worthy attempt to promote common good. In January 2004, SAARC countries embarked on a much sought after collaborative trade journey and commissioned South Asian Free Trade Area (SAFTA). It symbolised objectives to accomplish more and wider integration with the key aim to diminish interstate barriers for economic cooperation and trade. SAARC launched the initiatives for stimulating regional integration. Such initiatives include SAPTA and SAFTA, as well as ‘SAARC Agreement on Trade in Services (SATIS)’. Notwithstanding various initiatives, regional economic and trade connectivity remains a sour point; and never witnessed bloom to its optimum potential.

Regional integration in SAARC has been inhibited by multitude of inter-state affairs. China, though not considered in South Asian region, yet is deeply connected with the politico-strategic and economic affairs of the region

Regional integration in SAARC has been inhibited by multitude of inter-state affairs. China, though not considered in South Asian region, yet is deeply connected with the politico-strategic and economic affairs of the region. In geopolitical terms, the South Asian region is undoubtedly a hot neighbourhood of ideological, political, people-to-people, military and geopolitical animosity between the three nuclear rivals, including China, India and Pakistan, indulged in heightened hostility. Initially, towards this aim, the South Asian Preferential Trade Agreement (PTA) was implemented in year 1995 by the SAARC to promote trade and economic cooperation and cohesion. Economic integration in South Asia is too low despite geographic proximity and socio-economic conditions of the countries of the region. Pakistan is also trying to cope with unending national security trepidations and socio-economic issues. Encouragingly, recent ceasefire between India and Pakistan across LoC is a positive sign. Permanent solution to issues like Kashmir issue is key to stability. Regional land and maritime border disputes render countries to struggle under an environment of military conflicts and colossal blend of interstate differences as well as domestic divergences. Result? Connectivity, trade and stability are too diminished to feel satisfied about it.

Ongoing global economic situation, especially in South Asia displays retarded growth, recession, poverty and unemployment. Some hegemons need to replace their protectionist mind-set with integration of trade and commonality of fiscal goals to ameliorate cooperation. Covid-19 has engulfed the globe, more struggling nations of Africa and South Asia. The pandemic is squeezing pressure on South Asian economies. The World Bank and International Monetary Fund (IMF) have forecasted regional growth dip between 1.8 and 2.8% in 2020; whereas prior Covid, the forecasted regional growth, as of October 2019, was around 6.3%. Interestingly, during initial period of their becoming independent nations. For instance, India, Pakistan and Sri Lanka were having relatively higher trade figures amongst them. As proportion of their collective trade, the trade figures were in two digits. Today, it has reached too low one figure, compared to trade between ASEAN countries that is at 30%; and in EU it reached 65%. Amongst all the regional blocks including Gulf Cooperation Council, Regional Comprehensive Economic Partnership established in November 2020, SAARC stands at the bottom. Even it failed to reach its predicted trade volume of 67 billion USD and is hovering around 32 billion USD. The regional economic outlook is gloomy and socio-economic situation glim pushing South Asian citizens further edging poverty lines. Intra-regional trade amongst SAARC states continues to be on its ebb. This makes noble motive for region to engage in regional initiatives for better cooperation, improved trade, and stabilising interdependence.

South Asia is amongst the dynamic regions of the world in terms of its population, economic growth, trends of urbanization, and evolving industrialization. This has caused an increase in the demand for resources while posing serious implications on socio-economic prosperity that entails food, water, agriculture, industrial products and energy security. Ongoing volatile security and political situation in the region makes it imperative to strengthen regional integrated coordination mechanisms to optimize synergies and mitigate trade-offs. Number of impediments retard regional growth. South Asia has its characteristic ills of poverty, socio-economic concerns, limited technological base, absence of robust and established infrastructure, inter-state linkages, political distrust and disharmony, illiteracy, unemployment, population, military hazards and overall growth. Above all, the unparalleled Covid-19 catastrophe has resulted as a reality, and it would continue to intensify, the dreadful economic position of South Asia. An integrative approach in South Asia is bound to offer prospects of collective growth and uplift for the region and for individual States.

Necessity of economic integration in the region of South Asia, marred with conflicts and mistrust or political blocking, is need of the contemporary times. Integration undoubtedly, would alleviate poverty and result in enhanced quality of life for all South Asian citizens including millions of families suffocating below poverty threshold and children involved in labour abuse.

Connectivity and interdependence is not a zero-sum game but a positive-sum game with shared socio-economic dividends. Liberalism remains valid. Integration and connectivity would essentially catalyse peace too.

The writer, an international affairs analyst, regularly contributes on national security, foreign policy, international diplomacy and maritime affairs. He tweets @tee_shahid and connects at teeshahid20@gmail.com