Prime Minister Sheikh Hasina has urged all members of the South Asian Association of Regional Cooperation (SAARC) to sink differences and work together for the progress of the region's people, 40 per cent of them being poor.
Addressing the 18th SAARC Summit in Kathmandu on Wednesday, She said there is the need for a profound cooperation between the member states in the areas of healthcare, agriculture, food and climate change technologies for facilitating economic and social developments of the region.
She also focused on increasing intra-regional trade and effective implementation of SAFTA and said that the SAARC nations would particularly need to address the non-tariff and para-tariff barriers.
However, most of the leaders attending the summit, in their speeches, stressed the bloc's role in the South Asia's development.
Representing the US at the SAARC summit, Assistant Secretary of State for South and Central Asian Affairs Nisha Desai Biswal said for all the countries of the region 'the need of the hour is for a South Asia that is connected through trade and transit, where goods and people can move more freely, power trading and water sharing become the currency of connectivity'.
The US believes that economic connectivity is not enough for enduring peace and prosperity of the South Asia region that the SAARC member states are seeking, she said.
Meantime, Indian premier Narendra Modi stole the limelight on the day by announcing immediate medical visa for patients from all SAARC countries seeking treatment in India and three to five years' visa for the businessmen. A patient and one of his/her attendant will be given immediate visa for treatment at any hospital in India, he said.
Three draft deals -- Motor Vehicle Agreement for the Regulation of Passenger and Cargo Vehicular Traffic, SAARC Regional Agreement on Railways and SAARC Framework Agreement for Energy Cooperation (Electricity) -- came up for discussion during the SAARC foreign ministers' meeting prior to the summit.
Of the three deals, there is a possibility of reaching a consensus on the SAARC Framework Agreement for Energy Cooperation (Electricity). The rest two agreements might require more discussions and are unlikely to be signed at this summit, according to reports.
Despite having good prospect of a market of 1.7 billion people, regional trade has not increased much as of now. The current volume of intra-SAARC trade is less than 5.0 per cent of the total trade of South Asia, while the volume of ASEAN trade is 26 per cent and EU trade 45 per cent.
Once signed, all such agreements might pave the way for building direct connectivity and providing better access to economic activities among the SAARC states and people of the region. The electricity agreement will create a regional energy market aimed at enhancing cross-border power trade.
Under this framework agreement, a SAARC Market for Electricity (SAME) will be developed on a regional basis. It will explore a regional power market involving member countries that already have interconnection, as well as those that have planned interlinks.
According to the draft motor vehicle agreement, cargo vehicles like trucks and trailers, passenger vehicles both for hire or reward, and personal vehicles can move across the region upon fulfilling the specified criteria and in accordance with the customs laws of the member states concerned.
However, the regional states should make a tangible progress in tariff concessions and removal of other trade barriers faster to turn the regional grouping into an effective trade bloc. Unless it's done, the dream of SAFTA (South Asia Free Trade Area) to be a free trade area will remain a far cry.
Highlighting the vast potential of SAARC nations, especially in enhancing trade and reducing poverty, analysts say even after eight years of implementation of SAFTA, intra-SAARC trade still remains insignificant compared to other trade blocs. Listing the different barriers to trade in the region, they urged the member countries to come forward to remove those.
However, slow progress in attaining the SAARC goals over a prolonged period of time points out the necessity of bringing fundamental changes in its structure for making the bloc effective. South Asia with a population of more than 1.5 billion is the least connected region and the world's largest concentration of poverty-ridden people.
Currently, intra-SAARC trade is less than three per cent of the trade volume of the eight member countries of SAARC although the region can be potentially the world's largest market. Bureaucrats were obsessed with perceived losses instead of maximising gains of every member of SAARC.
If the member states utilise the potentiality of the vast market, it will certainly bring changes in the trade and business scenario in the region and simultaneously create job opportunities.
In the past, effective cooperation could not be built up in the region for lack of political will and bureaucratic complexities. The dream of an integrated South Asia remains elusive always. Such integration requires the political will and firm commitment of governments in a way it would not cause political tension, but enhance and insulate regional economic cooperation.
Although the relationship between the two nations remained strained on several occasions in the past, India and Bangladesh recently enhanced efforts to establish greater connectivity. A deepening regional cooperation and fraternity among the countries in South Asia are required to tackle all the challenges.
Once the transport connectivity is in place in South Asia and proper infrastructure is built across the region, trade and investment growth among the member nations and beyond will definitely accelerate.
The proposed deals slated for signing in the summit need to be implemented in right earnest. At the same time, new ideas should be taken for actions to materialise the potential benefits of the region.
szkhan@dhaka.net