Regional cooperation for development
Dr. Niaz Ahmed Khan | Wednesday, 2 July 2008
THE crucial significance of maintaining regional stability and cooperation for peace and prosperity of all the concerned nations is now unmistakably established. When the global economy is benefiting from different types of regional cooperation, the region of South Asia is sadly lagging behind in this regard. South Asia is faced with multiple challenges on the path towards sustainable development-notably, increasing energy demand, harnessing vast local natural resources, reforming the inefficient power sector and attracting private investment, creating politically friendly investment climate, making progress on economic reforms, achieving accelerated export growth, promoting domestic and foreign investment and developing regional integration strategies.
In the above context of formidable challenges, it is becoming increasingly clear that no country can single-handedly address these daunting tasks, and therefore, the need for regional cooperation and 'coming together' is becoming all the more conspicuous.
Countries of the SAARC region have a very significant role to play in promoting stability and cooperation as they share certain common strengths that place them in a particularly advantageous position: first, many of the nations of this region, especially Bangladesh, India and Pakistan, share a long trail of history and heritage; secondly, this region on the whole enjoys the advantage of favourable geo-strategic location in the global order; thirdly, the South Asian governments are pursuing the longer term twin goals of sustaining rapid growth and reducing poverty; and fourthly, these nations have depicted a rare quality and character of remaining resilient and firm in the face of great challenges and odds. Let us cite the examples of Pakistan and Bangladesh in this regard. Despite the weakened balance-of-payments position, high inflation, stagnated domestic investment and some degree of instability in security, Pakistan in recent years successfully maintained a steady growth in Gross Domestic Product (GDP), rising to 8.4 per cent (as estimated by the Asian Development Bank). Similarly, Bangladesh has achieved steady annual economic growth of 5 to 6 per cent since the 1990s.
Of late, there have been a number of studies on the potential benefits and practical limitations of regional stability and cooperation in South Asia. In the process, we now have a critical mass of information on possible areas and avenues for regional stability and cooperation.
Such prospective areas of cooperation include the following:
Trade and investment: Effective economic cooperation among the neighbouring countries can create new trades and can increase investment flows for them.
South Asian countries can work together towards facilitating regional and global joint venture projects in various sectors including developing new ports together with warehouses and cold storages, building a network of motorways and railways having international standards throughout South Asia.
Human development through education and health: There are ample opportunities for increasing regional trade within SAARC countries focusing on education and health sectors. Other notable areas of cooperation may include establishment of a network of high quality vocational training institutes; collaboration between regional universities; mother and child health clinics in hinterland regions; community-based preventive health care; and district hospitals in low income areas of the region.
Generating employment and incomes for the poor: Bangladesh's hallmark -- micro credit model -- may offer lessons and opportunities for wider replication throughout the region. Besides, joint venture projects may be undertaken to rapidly accelerate the growth of those sub-sectors in agriculture and industry, which have relatively higher employment elasticity.
Natural resources and energy: Joint efforts by the countries of the region will help them in the efficient use of their limited natural resources, and ultimately, raise their industrial growth rates.
Bangladesh may consider joining hands in this regard. In the context of developing energy markets of these resources, power trading in the region calls for establishment of high voltage interconnections between the national grids of the countries of the region.
Tourism: Ancient heritage and natural beauty of South Asia attracts tourists from the region and beyond. Bangladesh, however, is failing to maximize the existing large potential of the tourism industry due to absence of combined efforts, common policies on tourism, easy visa procedures and customs rules among the countries of this region.
Cooperation for food security: Better linkages between agricultural research and technology transfer, minimizing environmental damage, use of Geographic Information Systems (GIS) and Geo-Positioning Systems (GPS), and institutional support and technical assistance -- are some of the measures to reduce food insecurity that call for regional cooperation.
In spite of the potential benefits that could accrue from regional stability and cooperation, the process of achieving regional cooperation has not made much headway. Proper analysis of the constraints to such cooperation is essential to know what steps the governments must take to remove the hurdles. One very crucial means of overcoming the constraints on greater cooperation is full operationalisation of SAARC and optimum materialization of its goals.
The writer is Professor of Development Studies at the University of Dhaka, Bangladesh and Honorary Research Fellow, Centre for Development Studies, University of Wales, UK. He can be contacted at: niaz.khan@yahoo.com
In the above context of formidable challenges, it is becoming increasingly clear that no country can single-handedly address these daunting tasks, and therefore, the need for regional cooperation and 'coming together' is becoming all the more conspicuous.
Countries of the SAARC region have a very significant role to play in promoting stability and cooperation as they share certain common strengths that place them in a particularly advantageous position: first, many of the nations of this region, especially Bangladesh, India and Pakistan, share a long trail of history and heritage; secondly, this region on the whole enjoys the advantage of favourable geo-strategic location in the global order; thirdly, the South Asian governments are pursuing the longer term twin goals of sustaining rapid growth and reducing poverty; and fourthly, these nations have depicted a rare quality and character of remaining resilient and firm in the face of great challenges and odds. Let us cite the examples of Pakistan and Bangladesh in this regard. Despite the weakened balance-of-payments position, high inflation, stagnated domestic investment and some degree of instability in security, Pakistan in recent years successfully maintained a steady growth in Gross Domestic Product (GDP), rising to 8.4 per cent (as estimated by the Asian Development Bank). Similarly, Bangladesh has achieved steady annual economic growth of 5 to 6 per cent since the 1990s.
Of late, there have been a number of studies on the potential benefits and practical limitations of regional stability and cooperation in South Asia. In the process, we now have a critical mass of information on possible areas and avenues for regional stability and cooperation.
Such prospective areas of cooperation include the following:
Trade and investment: Effective economic cooperation among the neighbouring countries can create new trades and can increase investment flows for them.
South Asian countries can work together towards facilitating regional and global joint venture projects in various sectors including developing new ports together with warehouses and cold storages, building a network of motorways and railways having international standards throughout South Asia.
Human development through education and health: There are ample opportunities for increasing regional trade within SAARC countries focusing on education and health sectors. Other notable areas of cooperation may include establishment of a network of high quality vocational training institutes; collaboration between regional universities; mother and child health clinics in hinterland regions; community-based preventive health care; and district hospitals in low income areas of the region.
Generating employment and incomes for the poor: Bangladesh's hallmark -- micro credit model -- may offer lessons and opportunities for wider replication throughout the region. Besides, joint venture projects may be undertaken to rapidly accelerate the growth of those sub-sectors in agriculture and industry, which have relatively higher employment elasticity.
Natural resources and energy: Joint efforts by the countries of the region will help them in the efficient use of their limited natural resources, and ultimately, raise their industrial growth rates.
Bangladesh may consider joining hands in this regard. In the context of developing energy markets of these resources, power trading in the region calls for establishment of high voltage interconnections between the national grids of the countries of the region.
Tourism: Ancient heritage and natural beauty of South Asia attracts tourists from the region and beyond. Bangladesh, however, is failing to maximize the existing large potential of the tourism industry due to absence of combined efforts, common policies on tourism, easy visa procedures and customs rules among the countries of this region.
Cooperation for food security: Better linkages between agricultural research and technology transfer, minimizing environmental damage, use of Geographic Information Systems (GIS) and Geo-Positioning Systems (GPS), and institutional support and technical assistance -- are some of the measures to reduce food insecurity that call for regional cooperation.
In spite of the potential benefits that could accrue from regional stability and cooperation, the process of achieving regional cooperation has not made much headway. Proper analysis of the constraints to such cooperation is essential to know what steps the governments must take to remove the hurdles. One very crucial means of overcoming the constraints on greater cooperation is full operationalisation of SAARC and optimum materialization of its goals.
The writer is Professor of Development Studies at the University of Dhaka, Bangladesh and Honorary Research Fellow, Centre for Development Studies, University of Wales, UK. He can be contacted at: niaz.khan@yahoo.com