Lack of political will holds back cooperation in S Asia
Tuesday, 30 March 2010
A Z M Anas
Absence of political will is the only roadblock that chokes flows of trade, capital and ideas across South Asia and makes sharing of its vital water and energy resources difficult for the region, a former World Bank official said.
Praful Patel, who held the bank's regional vice presidency until 2009, said that regional cooperation could help South Asia better distribute water from the Himalayas and its common international rivers, which supply the world's most densely populated flood plains with 700 million-plus people.
The Himalayas comprise the world's highest mountains and their glaciers are the depositories of largest body of ice after polar region.
"You've no other impediment than politics," Mr Patel said in an interview.
He said: "The region has the knowledge, institutions and even solutions to drive the regional integration agenda. But political economy is holding back that critical process."
Mr Patel, currently a board member of African Center for Economic Transformation (ACET), flew in to Dhaka last week from New Delhi to forge strategic cooperation between South Asia and Africa-initially at the civil society level. He accompanied ACET President KY Amoako on the regional tour.
He said South Asia is the least integrated region in the world as intra-regional trade represents a minuscule 2.0 per cent of its gross domestic product, while it is over 20 per cent for the East Asian region.
Energy trade is also low in South Asia. India, Nepal and Bhutan are involved in trading of electricity. Only 7.0 per cent of international calls are regional, compared to 71 per cent for East Asia.
The case of Africa is no better either, with the intra-regional trade representing only 5 per cent of the continent's $200 billion total trade.
Referring to Africa's Nile Basin Initiative and Senegal River Development, Mr Patel said the countries could draw lessons from the two regional initiatives and thereby avert a potential war for securing the depleting water resources in South Asia.
He said that the Nile basin flowed through 15 African nations and the Nile Treaty was signed in the 1950s.
The sharing of water from the Ganges, even after the historic 1997 treaty between Bangladesh and India, remains contentious for both the nations, which have 54 transnational rivers.
ACET president said the South Asian governments should establish a regional transport corridor, like the one in Africa, to benefit land-locked Nepal and Bhutan.
Poor connectivity, cross-border conflicts, and concerns about security, have all contributed to South Asia being the least integrated region in the world, the World Bank said in a study.
Mr Patel was positive about the recent visit of Sheikh Hasina to India and the signing of protocols and treaties, saying these are important steps toward fostering regional cooperation.
"That visit has opened up new opportunities. And opening up of Chittagong Port to India will play a critical role in promoting the regional integration agenda," he said.
Policy Research Institute of Bangladesh (PRI) has estimated income from exports, transit and port fees to rise by about US$1.0 billion a year in the short-to-medium term.
Over the longer-term, experts say more and better regional cooperation will help increase Bangladesh's growth rate by an additional 2.0 percentage points per year.
If harnessed in a right way, Mr Patel said, demographics could spawn economic prosperity for both the regions as much of Europe and Asia's Japan and China are faced with the aging time-bomb. "South Asia hosts 700-800 million youth population below 25 who can make a huge difference to the development of the region," he added.
Dr Amoako said unfolding growth stories have put both the regions on the international spotlight, although around 40 per cent of the world's poor are concentrated in South Asia while the African region is home to another 30 per cent.
He said African nations have much to learn from Bangladesh, particularly from its microfinance institutions that are playing significant role in the development process.
"Next century is going to be Asia's. So we Africans need to learn from this shining continent," said Amoako, who served with the United Nation's Economic Commission for Africa.
Absence of political will is the only roadblock that chokes flows of trade, capital and ideas across South Asia and makes sharing of its vital water and energy resources difficult for the region, a former World Bank official said.
Praful Patel, who held the bank's regional vice presidency until 2009, said that regional cooperation could help South Asia better distribute water from the Himalayas and its common international rivers, which supply the world's most densely populated flood plains with 700 million-plus people.
The Himalayas comprise the world's highest mountains and their glaciers are the depositories of largest body of ice after polar region.
"You've no other impediment than politics," Mr Patel said in an interview.
He said: "The region has the knowledge, institutions and even solutions to drive the regional integration agenda. But political economy is holding back that critical process."
Mr Patel, currently a board member of African Center for Economic Transformation (ACET), flew in to Dhaka last week from New Delhi to forge strategic cooperation between South Asia and Africa-initially at the civil society level. He accompanied ACET President KY Amoako on the regional tour.
He said South Asia is the least integrated region in the world as intra-regional trade represents a minuscule 2.0 per cent of its gross domestic product, while it is over 20 per cent for the East Asian region.
Energy trade is also low in South Asia. India, Nepal and Bhutan are involved in trading of electricity. Only 7.0 per cent of international calls are regional, compared to 71 per cent for East Asia.
The case of Africa is no better either, with the intra-regional trade representing only 5 per cent of the continent's $200 billion total trade.
Referring to Africa's Nile Basin Initiative and Senegal River Development, Mr Patel said the countries could draw lessons from the two regional initiatives and thereby avert a potential war for securing the depleting water resources in South Asia.
He said that the Nile basin flowed through 15 African nations and the Nile Treaty was signed in the 1950s.
The sharing of water from the Ganges, even after the historic 1997 treaty between Bangladesh and India, remains contentious for both the nations, which have 54 transnational rivers.
ACET president said the South Asian governments should establish a regional transport corridor, like the one in Africa, to benefit land-locked Nepal and Bhutan.
Poor connectivity, cross-border conflicts, and concerns about security, have all contributed to South Asia being the least integrated region in the world, the World Bank said in a study.
Mr Patel was positive about the recent visit of Sheikh Hasina to India and the signing of protocols and treaties, saying these are important steps toward fostering regional cooperation.
"That visit has opened up new opportunities. And opening up of Chittagong Port to India will play a critical role in promoting the regional integration agenda," he said.
Policy Research Institute of Bangladesh (PRI) has estimated income from exports, transit and port fees to rise by about US$1.0 billion a year in the short-to-medium term.
Over the longer-term, experts say more and better regional cooperation will help increase Bangladesh's growth rate by an additional 2.0 percentage points per year.
If harnessed in a right way, Mr Patel said, demographics could spawn economic prosperity for both the regions as much of Europe and Asia's Japan and China are faced with the aging time-bomb. "South Asia hosts 700-800 million youth population below 25 who can make a huge difference to the development of the region," he added.
Dr Amoako said unfolding growth stories have put both the regions on the international spotlight, although around 40 per cent of the world's poor are concentrated in South Asia while the African region is home to another 30 per cent.
He said African nations have much to learn from Bangladesh, particularly from its microfinance institutions that are playing significant role in the development process.
"Next century is going to be Asia's. So we Africans need to learn from this shining continent," said Amoako, who served with the United Nation's Economic Commission for Africa.