SAARC Hope for economic and political collaboration in South ASia
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SAARC: Hope for Economic and Political Collaboration in South Asia INTRODUCTION It was the silent and enormous pressure of SAARC that the stubborn Indian Government eventually succumbed to and conceded to attend the 12th SAARC Summit. Eventually, the 12th SAARC Summit was successfully held in Islamabad from 4 to 6 January 2004 in a congenial atmosphere, not only gave a replenish thrust and dynamism to the regional association but also broke the log ? jam between Pakistan and India. It was guided by the vision of peace and economic prosperity in South Asia and by being proud of its culture and rich traditions. The member states renewed their averred commitment to the objectives of the Organisation and pledged to continue working towards promoting political stability and economic prosperity in the SAARC region. The current Chairman of SAARC, the Prime Minister of Pakistan termed the summit as ?It is victory of neither party; it is victory of poor people of South Asia.? Regional diplomacy emerged triumphant and prevailed and conflict vanished for the time being. History has been made during three days of SAARC Summit. It is the credit to Saarc statesman, leaders and people. It is the victory of 1.4 billion people of South Asia. Few days ago the relations between two most important members of Saarc were at the peak of K2. Tensions between Pakistan and India have kept the growth potential of the region hostage for long. Better sense prevailed and the political dice got loaded to promote peace. It is the victory of democratic forces and sagacity showed by the President of Pakistan Pervez Musharraf that this crucial summit happened. In fact, Pakistan begged other members to participate in the Summit only in the supreme interest of SAARCs existence. Hope has been ignited for the downtrodden masses of Saarc region. The meeting of two arch rivals India and Pakistan during SAARC summit was indeed a blessing for the poverty ridden people of South Asia. The 12th SAARC Summit was a great success, whose main achievement was the delineation of a future course of action. The Islamabad Declaration, Social Charter, SAFTA Framework agreement and the Additional Protocol on Terrorism will go a long way in promoting and preserving meaningful regional cooperation and economic development in SAARC region. The strategic analysts are sanguine that milk and honey would flow in the Indus, Ganges and Bramputra rivers of South Asia. Whether their dream would come true or not? The interaction of two important nuclear members of SAARC will divulge the fact in due course of time. The scenario in South Asia prior to the summit was explosive. The world capitals were anticipating nuclear war and exhorting India and Pakistan to show restraint. The people of South Asia were terrified and apprehensive of their fate. The dark clouds were blown away by the visit of Indian Prime Minister Atal Behari Vajpayee. The people of south Asia got sigh of relief and cordially welcomed the holding of Summit. The 12th SAARC Summit in the beautiful city Islamabad had taken profound and bold steps to correct socio-economic imbalances, consolidate political stability in the region and remove the stumbling bloc in the way of SAARC. The dynamic and effective SAARC is capable of eliminating the ever increasing poverty from unfortunate SAARC region, which generates less than 2% of world income, yet support 22% of world population and 44% of the world?s poor (those who earn less than a dollar a day) and strive to diminish the ever increasing defence expenditure of member countries. According to Former Indian prime minister V P Singh a new ray of hope has been kindled in the relations between India and Pakistan due the efforts of SAARC. The world has recognized that the SAARC is the only Ray of Hope for downtrodden people of South Asia groaning under the ever increasing burden of defence, debt and conflicting political history. It was a historic Summit with the start of diplomacy between India and Pakistan at the highest level. The12th SAARC summit proved as a crucial and turning point in the tense geo-politics of South Asia. Since January 2000 when the 11th Saarc Summit was held at Katmandu, SAARC could not meet again at the Heads of Government?s level because of the usual impasse in India-Pakistan relations and reluctance of Indian leaders to interact with a military ruler of Pakistan following overthrow of democratic government in Pakistan. The SAARC Summit adopted positive and conducive measure to reduce ever increasing poverty, enhance vital economic cooperation and procure its lofty objectives enshrined in the noble Charter. The aims and objective of SAARC, if implemented in letter and spirit would dramatically transform the future of the 1.4 billion poverty ridden people of south Asia, hitherto the peace, cooperation and development of the South Asia have remained hostage to the exigencies of mutual mistrust and conflict. The ASEAN Summit was held on 12 December 2003 at Tokyo Japan. The SAARC Summit was held after ASEAN. All world masses saw that SAARC was one of the successful, crucial, and historic events in the annals of international politics. No body draw attention to ASEAN despite its potential and success as world focused their attention on SAARC summit. This research article will examine the evolution of SAARC, challenge to it and future strategy of SAARC for the betterment and amelioration of people in economic and political fields following 12th successful Summit in Islamabad. EVOLUTION OF SAARC Historical review of South Asia SAARC region has an ancient history commencing from the Indus Valley Civilization about 2500 BC. The evidence of this glorious civilization is found in the ruins of Mohen -Jo -Daro and Harapa. SAARC region is pre-eminently a land of varieties. It has been aptly described as the epitome of the world. South Asian region is composed of seven countries namely Bhutan, Bangladesh, India, Maldives, Nepal, Pakistan and Sri Lanka. General (Retd) K.M Arif has described the members of SAARC family as ?the seven member constellation of Ursa minor in South Asia?. These nations occupy almost all of the geographic area, referred to historically as the Indian sub continent. This region is a physiographic mosaic with arid deserts, towering mountains, fertile plains, rivers, rain sodden delta, valleys and dense jungle. The history of south Asia demonstrates that the geographic unity has helped to invest the region with a sense of common destiny. The South Asian sub continent is the collective home of various social systems, cultures and religions. Diversity of culture and religion is a character of this area. All the world religions are found here. Religions have shaped the historical contours of South Asia. The ideal of cultural unity is also nothing but a myth. Even we leave aside the Muslims and other races ?the Hindus are divided into thousands of mutually exclusive and often hostile sections by the cast system and different social traditions? Under these circumstances it is not surprising that ?the Hindus and Muslims despite having lived as neighbors for centuries remained distant and separate?. The Hindus and Muslim social system are existed side by side yet they could not work for real integration. Thus this fundamental and inherent social, cultural and religious disunity was ultimately responsible for the creation of two states India and Pakistan. Despite several diversities, ?south asia does share powerful ecological, economical and political mutual ties?. GEOGRAPHICAL UNITY All the seven countries of South Asia have a geographical compactness. The continuity of border imparts economic advantage to the people of the region and helps them to amalgamate to each other. This ?closeness gives the region many infrastructural linkage based on colonial legacies, common history, race, religion, language and cultural background which are unique as compared to other regions like west asia or south east asia?. The ethnic composition of the region is even more heterogeneous than its religious and cultural make-up given the diverse geographic origins of the various peoples who settled South Asia. Internal migrations have inspired much inter ethnic strife that has undermined the sense of unity and replaced it with conflicting loyalties and nationalistic antagonisms. The South Asia has nearly continental dimension and its total area is nearly two million square miles. The distance from west to east is more than 2100 miles and from extreme north to south is approximately the same. The population of South Asia is more than 1.5 billion. ?South Asia, with 21 per cent of world population, has barely 1.5 per cent of the world?s GNP and 3.3 per cent of the world?s total area. Obviously it has the largest concentration of the world?s poverty ?. Thus it has been ranked as third major concentration of population in the world. South Asia is bounded by china on the north from the rest of Asia by Himalayas and is bounded on the other side by the Indian Ocean. A narrow arm of Afghanistan (Wakhan Corridor) separates it from Tajikistan, on the west of South Asia lies the Afghanistan and Iran, on the east is Myanmar while on its south lays the Indian Ocean with Bay of Bengal. On the world globe, South Asia lies between ?01 degrees south to 37 degrees North latitude and between 62 degrees east to 97 degrees East latitude?. LACK OF POLITICAL COHESION Despite being a geographical unit, South Asia always lacked political unity. The history reveals that the entire region has hardly remained as one political unit under the sovereignty of one government. South Asia was divided into smaller states, though some of the dynasties rose to prominence and effected a partial unification of the region under one rule, yet no complete political union of the whole region was ever attained. It were the Muslims and lately the British who united the sub continent by providing uniform administrative and some time a single government but it was transitory. The natural division and physical features have always prevailed and manifested in division of sub continent. ?The sub continent has itself always been at least two distinct worlds, the truly Indic region comprising the gangetic plains and peninsular India, on the one hand and the Indus region consisting of basin of Indus and its tributaries (i-e Pakistan) on the other?. South Asia having seldom political unity was a conglomeration of sates with their distinctive language and customs, though it had a certain amount of homogeneity because of a common civilization and outlook on life. ?The various philosophies and religion that sprang from its bosom were mostly based upon a set of common assumption regarding cosmology and life?. GEO- STRATEGIC IMPORTANCE OF SOUTH ASIA The South Asia has always been the focus of world politics due to its strategic location. During the inclement cold war between super powers it has been centre of stage. Indio ?Russian alliance and Pak-US marriage brought South Asia into world politics. The persistent political instability and war between Arab and Israel in the Middle East, the fall of pro US regime of Shah and Islamic revolution in Iran, the Soviet military intervention in Afghanistan in December 1979, the outbreak of fratricidal war between Iran and Iraq and Iraq?s occupation of Kuwait had diverted not only the attention of super powers but also the attention of entire world including the United Nations active involvement in South Asia. According to Dr. Moonis Ahmar ?Compounded with these developments, Pakistan?s tilt towards the US in the post 1980s period the deepening of Soviet military presence in Afghanistan and the accentuation of the super power naval military build up in the Indian Ocean further augmented the South Asia prominence in the World Affairs?. The South Asia lies on the mid way junction between South East Asia and the Middle East. In the annals of History both regions are considered quite sensitive and strategic regions of the world. The strategic importance of Indian Ocean bordering South Asia can be appreciated in view of its geographical situation, with major sea routes connecting the gulf and the Red sea and stretching from Africa by way of Suez to the Far East and Australia, it covers an area of about 15 million square kilometer or one third of all the oceans. ?The Indian Ocean in recent years has gained a major significance in the global strategic consideration particularly after establishment of US nuclear base at Diego Garcia?. JUNCTION OF VARIOUS RELIGIONS South Asia is also situated at the junction of different ideologies, Islam to its west, Hinduism to its East, Communism to its North and by virtue of American and western European naval presence in Arabian sea, Christianity to its South. Economically, the shortest land and air route from Russia and central Asia to the Indian Ocean, from china to Indian Ocean, and from Middle East and Iran to India passes through this region. Similarly, the air routes from Europe to the Far East pass over or close to South Asia. ?Their individual or collective denial could result in great economic and political advantage to one or the other competitors?. The fatal terrorist attacks on World Trade Centre on September 11, 2001 propelled South Asia onto the centre-stage of international scene and global war against terrorism was launched from Pakistan, an important member of SAARC and ECO. The United States, Japan and Western Europe have strategic and vital interest in South Asia due to its proximity to Central Asia, hub of economic potential and Middle East. The SAARC region and ECO region has become the house of hyper power and war against terrorism has been launched from the land of SAARC region against a ECO member. Establishment of SAARC The world war 11 ended with the destruction and annihilation of both victor and vanquished. The West Europe was utterly destroyed by Germany. The East Europe was demolished by the allies. The Japan was defaced from the map of world by the holocaust of atomic bomb dropped by the sole nuclear power, United States. After such destruction a fresh wave of cooperative spirit was blowing in the Europe. These destroyed nations realized that the formation of regional cooperation groups by countries situated in geographical proximity having close historical and similar cultural background and common economic problem with identical capabilities to manage them is the solution of grave problems. The international attention was also shifted to economic and social issues and nations were mobilizing their resources to raise their level of living standard. They found regional integration as the most effective and efficient way to maximize social and economic development. Regionalism and inter-regional cooperation have evolved as a new innovative phenomenon in the post war international system. ?They are perceived as panacea for avoiding traumatic course of conflict and maximizing efforts for development?. The post cold war era has witnessed the emergence and growing importance of regional economic grouping in many parts of the world to overcome obstacle to international trade and to secure a better allocation of regional resources. Formation of regional grouping had become a trend in the world politics since 1945 ?not only to strengthen gradual economic integration for overcoming barriers of global trade policies but also to exploit the potential of complimentaries for a better allocation of available resources to mutual comparative advantages?. Dr. Kleffens explains that a ?regional arrangement is a voluntary association of sovereign states within a certain area or having common interest in that area for a joint purpose which should not be of an offensive nature, in relation to that area?. EUROPE INSPIRATOR OF REGIONAL INTEGRATION The process of evolving cooperation on regional basis really started in Western Europe. ?It was Western Europe which made the first regional effort in the fifties maturing itself into fully growth oriented regional entity in the subsequent decades and its success came to be replicated elsewhere in the world?. Maqbool Ahmed Bhatty writes that ?Europe has become the model for cooperation for development which is now being adopted in other parts of the world. Military arsenals are being reduced and seemingly intractable disputes being resolved through dialogue and compromise?. The success story of ECC countries, now the European Community gave inspiration and incentive all over the world to form regional organizations of countries to improve their economic performance and the living standard of their people. The European Union is the best example of regional cooperation achieving good and great things. There is scramble for its membership among European powers that were originally not its members. European Union has become a key word for successful economic cooperation among countries of like minded and which posses affinities of a common civilizational inheritance. It hardly needs to be emphasized that regional cooperation amongst the neighboring countries play a pivotal role in their economic development. URGE FOR REGIONAL BLOCK IN SOUTH ASIA The South Asian countries until 1985 have not been able to establish regional group and maintain amicable relations amongst themselves. The obvious result is that today they are classified as the poorest amongst the poor nations of the world. ?Impulses toward cooperation in South Asia have been weak historically, primarily because of political discord and the existence of bitter disputes among the states of the region?. Neither a common threat perception and maturing of nationalism that actuated states of West Europe to abandon old patterns of conflicts, nor a shared vision of security through cooperation that motivated countries of South East asia, has been prevalent in South Asia. Unfortunately, in South Asia conflict and disputes has often emanates from within the region. Consequential tension and bitterness over a prolonged period have desiccated the region. There were various external and internal factors and pressures which compelled the regional states to establish regional organization in South Asia. The forward march of communism on the border of South Asia pushed them to unite to save their political, social and economic system. India despite friendship treaty with former Soviet Union did not supported Soviet invasion of Afghanistan because she wanted to preserve her political, social and economic system. In fact all regional countries have supported the United Nations sponsored peace initiative and demanded immediate withdrawal of Soviet forces. It was dangerous external pressure which forced the regional states hitherto divide to unite under the umbrella of SAARC. The security and peace of South Asia was also under pressure within the region. India?s expansionist foreign policy toward her neighbor has consistently lacked magnanimity expected from a big brother. By pursuing irrational and expansionist foreign policy, she has isolated herself from those countries which are located on her periphery. In turn, her regional neighbor treats her with suspicion and questions her sincerity and ulterior intentions. All these development in South Asia and the public opinion of South Asian masses forced the rulers of to devise such mechanism that may create a better and conducive environment. As corollary, the adamant rulers realized and convinced that regional cooperation could play a vital role in their economic and social development. In the best interests of South Asian region, Bangladesh in 1980 proffered to convene a regional summit for establishing a regional organization on the pattern of ASEAN. President Ziaur Rehman in his letter of May 2, 1980 addressed to the head of Governments of the region briefly touched on the underlying factors which prompted him to take the initiative. He mentioned that positive and conducive development in the region had created a better climate of understanding. For the first time, there were distinct possibilities of regional cooperation from which all South Asian states would benefit and work collectively for the welfare of its poor masses. Emphasizing a shared historical experience and a common cultural heritage, the deceased Bangladesh President made an impassioned plea for a summit level meeting of the seven South Asian states. Prof: Shamim Akhtar called it ?a bold initiative?. The Bangladesh proposal argued that ?inherent logic strongly justified regional cooperation, particularly among South Asian countries, because the countries in the region enjoy geographical contiguity, historical, social, cultural and ethnic affinities which would act as centripetal forces and thus, contribute substantively to facilitate coordination and to reducing of transaction costs? . The letter diplomacy prevailed and the Foreign Ministers at their first meeting in New Delhi on August 2 1983 adopted the declaration on the South Asian Regional Cooperation and formally launched its integrated programme of action. At the First summit held in Dhaka on 07-08 December 1985, the Charter establishing the South Asian Association for Regional Cooperation (SAARC) was adopted. It was a ?manifestation of the peoples of South Asia to work together towards finding solutions to their common problem in a spirit of friendship, trust and understanding and to create an order based on mutual respect, equity and shared benefits?. The prime and noble objectives of SAARC are to eradicate poverty from South Asia and enhance economic cooperation in various vital fields. The leaders of South Asia acknowledged during the first Summit held in Dhaka on 7-8 December 1985 that ?the countries of South Asia who constitute one-fifth of humanity, were faced with the formidable challenges posed by poverty, underdevelopment, low level of production, unemployment and pressure of population compounded by exploitation of the past and other adverse legacies?. The basic goal of poverty eradication is to be achieved by gradual step by step collaboration and mutual assistance in unanimously chosen programmes in the economic, social, technical and scientific fields. Progress in these non-controversial and mutually beneficial areas is expected in turn to contribute to ?mutual trust, understanding and appreciation of one another?s problems? leading to peace and stability in the region. CHARTER OF THE SAARC The Charter of the SAARC consists of ten articles, according to article One the objectives are to promote the welfare of the people of the region and to improve their quality of life, to accelerate economic growth, to promote active collaboration and mutual assistance in the economic, social, and cultural, technical and scientific fields, to strengthen cooperation among themselves in international forums and with developing countries, to promote mutual trust and appreciation of one another?s problem and to cooperate with international and regional organizations. The article Two of Charter of SAARC consists of principles which say that such cooperation shall be based on respect for the sovereign equality, territorial integrity, political independence, non interference in internal affairs of other states and mutual benefit. Such cooperation shall not be as substitute for bilateral and multilateral cooperation but shall complement them. Article Three says that heads of states or government shall meet once a year or more often as and when considered necessary. Twelve summits have been held so far in various capitals of SAARC countries. Article Four of charter establishes council of ministers, which are responsible for formulating policies and meets twice a year. Articles Five establish standing committees which are entrusted with over all monitoring and coordination of programmes and the modalities of financing and identifying areas of cooperation. Article Six establishes technical committee which formulates programmes and prepares projects in their respective fields. Article Seven establishes action committee. Article Eight establish SAARC secretariat in Nepal on 16 January 1987. Its role is to coordinate and monitor the implementation of SAARC activities. Article Nine pertains to financial arrangements and the Article Ten contains General provisions that decision at all levels shall be taken on the basis of unanimity and bilateral and contentious issues shall be excluded from the deliberations. The Time International commented on the establishment of SAARC in the following words that ?since they emerged from British rule following world war 11 many of the countries of South Asia have frequently had uneasy relations with each other. Sabers have been rattled and some time used. Although the leaders of the region have had bilateral summits, they had never met as a group to discuss the areas problem so it was with some skepticism and a good deal of optimism that the leaders met in Dhaka, the capital of Bangladesh, for the first summit. There they founded the SAARC with the aim of reducing and promoting joint endeavors in the area?. Though no dramatic break through were expected at the first summit, yet ?it will be the harbinger of another regional grouping in Asia, housing some 20% of the world population, the new alliance has a formidable potential if only the participating countries sort out their bilateral disputes and ungrudgingly strives for an equitable distribution of the benefits of cooperation assuring that these benefits accrue not merely to the more advanced states in the region but to each states individually?. POLITICAL SCENARIO AT THE TIME OF ESTABLISHMENT At the time of establishment of SAARC, South Asian states were politically unstable due to factors such as regime illegitimacy, socio-economic, religious and ethno linguistic tensions. This political instability in turn retarded any initiative towards collective regional cooperation. Unstable political government used the external threat to counter domestic pressure. The historical events and trends of Indian policies have not been conducive to the extent that fear and distrust have replaced the feeling of security and confidence in each other. The political scenario in south Asia, prior to the establishment of SAARC was explosive. These were vitiated due to irrational and expansionist behavior of India. Her relations with all regional states were at lowest ebb. India?s arms build up and ambitious plans to assume the regional power utterly shattered the balance of power in the region, because of her dispute with neighboring countries i-e Indo ? Pakistan dispute over the Kashmir, the Siachen Glacier and their nuclear programme. There was disagreement between India and Sri Lanka over contentious and political problem of Tamil, and withdrawal of Indian peacekeeping force from the country. The India refused to renew the trade and transit agreement with Nepal. The Indo-Bangladesh disagreement on the sharing of Ganges water, the Chakma refugees, the transfer of Tin Bigha corridor and the inability of the two countries to solve border and trade disputes and the emerging disquiet in Bhutan about India?s intransigent approach toward her neighbors. Ethnicity, religion and territory were the main cause of conflict in the South Asia. ?The South Asian system revolves around the core power India, the bargainer Pakistan and the periphery powers Nepal, Bhutan, Bangladesh, Sri Lanka and Maldives?. Geographically, India is the only country which has common land frontiers with other South Asian states and maritime boundaries with Sri Lanka and Maldives which make India the central state of South Asia. By virtue of its geographic dimension, both size and location and enormous economic and military strength she occupies central and pivotal position in the region. This advantage has naturally engendered aspiration of regional leadership and consequently Indian policies since independence have been directed toward attaining central status in the region. There have been two distinct dimensions of India?s security and foreign policies behavior in the region. First, it has attempted to play the decisive role in shaping the events taking place in its neighborhood, and secondly it has opposed any extra regional involvement in the affairs of South Asia. She expressed its resentment over Pak-US relations. Generally, it insisted upon the acceptance of its pre-eminent position in the region, both by other South Asian states and the major external powers. ?Preeminence is not precisely defined, and India?s objective is not classic client-state relationship but this stance is seen by India?s neighbors as a limitation on their sovereign powers?. Despite its close strategic cooperation with former Soviet Union she has also persistently opposed any extra regional security arrangements made by any of the South Asian countries to counter its aspirations for regional predominance. During 1980s India showed increased readiness to assert its power directly and dramatically while dealing with its smaller neighbors. The outbreak of ethnic violence in Sri Lanka in 1983 led to the unofficial formulation of a version o f Monroe doctrine referred to as Indian doctrine in South Asia. The regional states were fret and apprehensive of India?s hegemonic behavior. India regards South Asia as its geo-political region of influence, without proclaiming a doctrine of influence, she made it clear to the smaller states that they must pay due regard to its security sensitivities. ?The neighbors complain that pay scant regard to their security and at times does not mind trespassing on their sovereignty?. The political configuration of south Asia presented a mosaic of weak states in which Pakistan; the middle power appears to be the strongest of the weak. Thus it always offered the main resistance to India?s ambition of domination in South Asian region. It was followed by Bangladesh and Sri Lanka, two smaller and comparatively weak states. Bangladesh gained independence only three decade ago with the active support of India. Their level of resistance to Indian domination was much lower. Hence more often than not they tended to succumb to Indian pressure, whether politico-military or economic. The next category is that of mini states, the weakest states in the region. Two of them are the Himalayans states of Nepal and Bhutan which are not only geographically landlocked but also politically India locked. The third is Maldives a string of tiny islands in the Indian Ocean. These states have very little power to offset India?s domination over them, and virtually no ability to counter Indian sponsored order in the region. No doubt they have desire to check the Indian influence by extending cordial relations with Pakistan and other extra regional powers. Prior to the establishment of SAARC south asia has witnessed four wars, the only states to be dismembered since world war 11 through rebellion of one of its parts effectively aided by the interventionist army of neighboring country . The political relations among the seven states at the time of establishment of SAARC were marked more by mutual mistrust and non cooperation than by good neighborliness. South Asia was strategically fragmented and divided, one of the most heavily armed regions. The political conditions were complicated by super power rivalries. The inter state ethnic tensions were meshed with domestic conflicts and regional tensions. ?SAARC region does not have to go outside their region to test? what Homer wrote in his epic the ?Odyssey? ?we are quick to flare up, we races of men on the earth?. The south Asian states were politically unstable due factors such as regime illegitimacy, socio-economic, religious and ethno linguistic tensions. This political instability in turn retarded any tangible initiative towards collective regional security arrangement. ?The constraints in the path of South Asian politico-strategic order were many and varied, these included internal political tension affecting the participating states, the existence of a large number of complex and bilateral disputes and regional division resulting from diverging external orientations, alignment and perceptions?. India has been the major factor in perpetuating the differences against states rather than making genuine efforts to solve them in the best interest of restoring peace in the region. The political disorder in South Asia was due to her ?desire to become a great power implies, at the minimum, to acquire regional domination or hegemony and military superiority over its neighbors through the spectrum of force This was one of India?s perceived role ?. The historical events and trends of Indian policies have not been conducive to good relationship, resulting in diversities to the extent that fear and distrust have replaced the feeling of security and confidence in each other. No wonder, the region had earned the dubious distinction of being the only one in the world where until 85 there was no concept of regional cooperation. The political relations among South Asian states had been so distorted, fragile and unstable that even the formal launching of SAARC through the first summit meeting of seven South Asian heads of states and governments held in December 85 in Dhaka was viewed by many as symbolic rather than a step towards meaningful cooperation. The estranged relations of India with its neighbors have not only marred the socio-economic development in the region but also retarded the spirit of regional cooperation. DEPLORABLE ECONOMIC CONDITIONS South Asia is unique in the world in having a concentration of third world economic problems, at the forefront of which is the poverty of its population. There is no region more in need of the alleviation of the lot of its people than South Asia. By all indices of economist, its people have been ranked as the poor and the region itself is the hard core world poverty. There was population explosion in South Asia. This had to be seen against its size, which is 3 per cent of the land area of world and its output was 2 percent, South Asia is although endowed with a range of natural resources especially minerals. The quantity is approximately 1 per cent of the world resources. The distribution of these resources in the region is uneven with India having 90 per cent of natural resources and 87 per cent of the cultivable lands. The economies of South Asian countries were dependent on agriculture with industries and services amounting on the average to about a fifth of the national output. There was dearth of technology. The majority of these countries were export oriented but dependent on a few primary commodities and as a result, they were vulnerable to market fluctuations, which had disruptive effects on their economies. This situation is a legacy of colonial rule, which subordinated the interests of colonies to serve the Empire and distorted their economies. Fluctuations in earning as a result of this market vicissitude had prevented regional countries from prosecuting stable plans of economic development. The per capita income of the regional countries were estimated between 100$ to 400$, on the basis of which it can be said that South Asia had the bulk of poverty. This implies horrifying living conditions of hunger, deprivation of life necessities, malnutrition, disease, squalor and living death of peoples. ?These conditions have eroded the quality of peoples as deprivation of opportunities for education and humanistic pursuits have reduced their existence to primitive levels?. The economic under development was one of the main root causes of the most of tensions in South Asia, which has resulted in increasing influence of external powers and also created friction between India and neighboring states. The economic conditions were characterized by a low rate of economic growth. Instead of improving the lot of the lowest strata of population the conditions had worsened due to lack of regional cooperation among regional states. The percentage of growth rate of GDP at constant price from 81 to 85 were less due to diverse adverse factors such as high inflation, budgetary deficits, inappropriate price policies, inadequate domestic management and increasing defence budget. The advantages accruing from the proximity and geographical continuity of South Asia in terms of inter regional trade has never been exploited for the development of the shattered economy. The trade relationship between the countries has been at the lowest ebb. For example India ? Pakistan trade links were reestablished in 1975 after a lapse of ten years. In 81 ? 82 the trade between both countries was limited. Although, the SAARC countries have made some achievement though slow, in improving their economy, but their dependence on developing countries for import of various commodities like petroleum products and machinery exceeds their exports resulting in adverse balance of trade and balance of payment. The reason for low intra regional trade were fear of domination by India, high cost of production due to inadequate technical advancement, cheaper prices offered by developed countries and economic aid and loans from developed states. The export of South Asian countries in 1984 valued at a little over 15 million dollar which form only 0.9 percent of the world export, while total import of seven countries amounted to 28396 million dollar which formed only 1.5 per cent of world imports. Extremely slow progress in social development stand in sharp contrast to the economic growth during the eighties. The main social problems were poverty, unemployment, illiteracy and limited scope of advancement for women in social and economic activities. In South Asian countries more than 40 per cent of the population lived below the poverty lines, 45 per cent were without access to health care, 55 per cent were exposed to insanitary conditions, ten children died every minute and hundreds of thousands of women lost their lives during child birth. At the time of formation of SAARC, regional cooperation in Western Europe, South America, Gulf region and South East Asia paid rich dividends. Unfortunately, minimum regional cooperation in south Asia was not visible. These adverse economic conditions were due to lake of regional cooperation. The economic pressures not only at the time of creation of SAARC but also today are even more threatening. It is evident that even today after eighteen years after the establishment of SAARC the leaders of ASEM (Asia-Europe Meeting) are reluctant to invite India and Pakistan to join ASEM due to low economic growth. These deteriorated social and economic conditions urged the South Asian people and leaders to come close to each other, hence the Heads of States or Government of SAARC countries reaffirmed during the first SAARC Summit in Dhaka that ?their fundamental goal was to accelerate the process of economic and social development in their respective countries through the optimum utilization of their human and material resources, so as to promote the welfare and prosperity of their people and to improve their quality of life. They were conscious that peace and security was an essential prerequisite for realization of this objective?. The leaders of South Asia felt the gravity of situation and vehemently strived to ?break the barriers and help one another to cease to be stranger. An effective attempt has been taken in this direction in the shape of SAARC to make this region socially united, politically strong and economically prosperous?. These adverse economic and political developments forced and compelled the regional states to adopt a rational policy to their common problems created by political discord in South Asia. The domestic and international economic pressure forced the heads to join hands to mitigate the suffering and sorrows of people committed by the history of mutual distrust. JOURNEY OF SAARC Regional cooperation is sin qua non-for the amelioration and betterment of the peoples of SAARC region. One of the most significant ways through which developing countries of SAARC region can enhance and accelerate their economic growth is through increasing intra- regional cooperation. It is also true that ?the important obstacles in the formation of closer ties among South Asian economies are their wide spread poverty and resources constraint?. As in political scenario, economic cooperation in the region was also dogged by dissimilarities which have created psychological barriers of fear perceptions and lack of trust. ?These revolve around the fear that the region would become a satellite of India, if the latter is allowed to take a hand in its economic development, in view of its towering resources. This is borne out to some extent by the fact that India is the biggest exporter and smallest importer in intra regional trade?. The single most important factor appears to be the most serious hurdle has been the lack of political will on the part of the member countries to augment economic cooperation among them. This is partly because the countries have not felt any political compulsion as well as economic inspiration for intra regional cooperation and partly because the apprehension not only creates impact to a conscious unresponsiveness towards the economic cooperation. It is widely believed that the performance of SAARC in the most crucial field of economic cooperation is not up to the mark. It is my firm belief that it is not the failure of SAARC as regional Organisation but it is the inability of members to procure enormous benefit of regional economic cooperation due to internal and external pressures. Despite the existence of South Asian Preferential Trading arrangement (SAPTA), intra regional trade flow accounts for only 4% of the total trade flow. Persistent squabbling over even the most modest concessions granted under SAPTA reflects a worrying lack of political will on the part of member countries. The total trade among SAARC countries during Financial Year 2001 ?2002 stood at 570 million dollar against 573 million dollar during Financial Year 2000-2001 a decrease of 17.95%. ISLAMABAD SUMMIT AND REBIRTH OF SAARC The 12th SAARC Summit in Pakistan attracted worldwide attention on account of the crucial and positive role it played in putting back the stalled peace process between India and Pakistan. The world leaders praised the efforts of Saarc in bringing peace in South Asia. The China in a message to Saarc summit appreciated its efforts and hoped that ?Saarc would become a tool of economic development in South Asia?. The world today is transforming into a global village. In this progressive world, minor differences need to be kept aside to help humanity get together to solve each others identical problems. Saarc is striving to bring the people of region closer together to make South Asia a better place to live in and to let the world know how rich each country is in its own special culture and background. The 12th summit also helped Pakistan and India come together after a very long time to discuss the problems faced by the two countries and provided a good platform for future meeting to discuss and solve outstanding issue between the two neighbours. According to an Indian columnist Kuldip Nayar ?No doubt, there has been a welcome breakthrough at Islamabad?. It is the credit of SAARC that two arch rivals Musharraf ? Vajpayee met in Islamabad on January 6 2004, and agreed to restart composite dialogue to normalize relations between the two countries and to settle all bilateral issues, including Jammu and Kashmir. ?A conscious decision has been taken, at the highest level in both countries to start the process of a composite dialogue.? If this outstanding issue is resolved, and we believe it will, then the ?Anthony Gideen?s dream of world having ?states without enemies? would definitely come true ? if that is not possible across the globe at least it can be possible here in south asia as no outstanding issue will be left for India and Pakistan that can put them as enemies. The SAARC has the capability to make this impossible dream come true. The12th SAARC Summit concluded with adoption of the Islamabad Declaration with the members Heads of Government and State reaffirming their commitment to work for collective action for promoting regional peace and revitalizing the Organisation by tapping their economic potential through mutual cooperation. The signing of the South Asian Free Trade Area (SAFTA) would translate into a win-win situation, not only for Pakistan, but also for all seven nations of Saarc, which is unfortunately one of the poorest regions of the world. The leaders of SAARC countries signed a much awaited Social Charter on January 4 2004, is a positive and conducive step for the region?s multitudes of impoverished people. The ten point Social Charter binds the member countries to adopt legislative, executive and administrative measures for the social uplift of their masses. It also binds members to share and review the implementation strategies of their respective socio-economic uplift plans ?in the fields of education, health, human resources development, poverty alleviation, women?s? development youth mobilization, population stabilization, drug rehabilitation and reintegration of minorities and migrants programmes.? The Charter, if adhered to and implemented in letter and spirit by member countries, ?could bring the much-needed social change in the living conditions of South Asians over 30 percent of who live below the poverty line.? Prime Minister Vajpayee gave it a concrete regional cooperation dimension by proposing a regional fund and offered an initial contribution of $100 million which could be spent on poverty alleviation projects in all Saarc countries except India. Indian policy toward SAARC India, since independence cherished the goal of becoming a power of Asia. India?s strategic ambitions always constituted formidable hindrance to the growth of Saarc. It may recall that in a report titled ?ASEAN Regional Forum?s Annual Security Outlook? (2001), India argued that its security concerns extended beyond the conventional geographical definition of South Asia. Elaborating the point, New Delhi made it clear that ?given size, geographical location and trade links, India?s security environment ranges from the Persian Gulf to the Straits of Malacca across the Indian Ocean, including Central Asia in the north ?west, China in the north east and South East Asia?. India?s ultimate aim is to assume a large military role in Asia aimed at gradually squeezing outside powers out of South Asia and the broad oceanic areas surrounding it only to subjugate SAARC countries. It wants to be recognized as a dominating power in the Indian Ocean region and assume the role which the British used to play in the region until the first half of the 20th century. In order to materialize its design she has strived to normalize its estranged relations with China to dent the relations of Pakistan with China. ?The thrust f Indian strategy appears to be to improve ties with China to keep it as far away Pakistan as possible.? India is striving hard to enhance its trade with china. The cordial relations between them pose a direct threat to Pakistani?s strategic interest in South Asia. In due course of time china would not be in a position to help Pakistan against India on the pretext that both should mend the relations. It is aptly feared that India would be succeeded to make China as a neutral player in the affairs of South Asia. The Indian has succeeded to establish cordial relations with all the members of SAARC except Pakistan. India has signed a historic water accord with Bangladesh and accorded it the status of Most Favored Nation. The trade between them has increased manifold. The India has stopped to interfere in the Tamil affairs of Sri Lanka and consequently, procured the good will of Sri Lanka in the affairs of SAARC. India signed Free Trade Agreement with Sri Lanka in 2000. In order to sideline and neutralize the say of Pakistan in SAARC, India established a sub regional organization called South Asian Growth Quadrangle (SAGQ) with Bangladesh, Bhutan, Nepal and the Northeastern states of India as a ?dynamic area of growth?. In June 1997, BIMSTEC (Bangladesh, India, Myanmar, Sri Lanka, and Thailand Economic Cooperation) was also launched. Nepal and Bhutan also applied for membership. During summit held on 08 February 2004 agreed to create a free trade zone encompassing nearly two billion people but Bangladesh held out for the time being. It may be recalled that India succeeded in launching the Mekong-Ganga Cooperation (MGC) at Vientiane, Laos, in November 2000. The grouping, which reflects New Delhi?s desire to play a larger role in South East Asia, consists of India, Cambodia, Laos, Vietnam, Thailand and Myanmar. It is evident from the anti neighbor policies pursued by India that she has stalled the Saarc process, effectively undermining the very existence of this cooperative structure within South Asia. PAKISTANS RESPONS It has become evident from the policies of India to hurt the vital economic and strategic interest of Pakistan by hook or by crook. All South Asian states, to great extent under duress, are ready to go along with India and at the verge of ignoring Pakistan. Pakistan should realize all states, through SAARC that without active support and involvement of Pakistan not only the future of SAARC but also the sovereignty of all states would be endangered. ?The firm massage be delivered to India that she would not able to procure the resources and access to the vital Central Asia.? This message will have dramatic impact on the future strategy with regard to Central Asia. Pakistan should gain the support of ECO countries in order to neutralize Indian pressure and solidify its relations with ECO and ASEAN members. Pakistan should expedite the pace and efforts to join the SCO. Recently, The SCO has indicated to accept the membership of Pakistan. Pakistan occupies a pivotal position in the present international politics. It is active partner of United States in war against Terrorism and enjoys Non NATO military ally. The trends and developments have proved and even tacitly conceded by the US that the US will not be able to achieve success in war against terrorism without the support of Pakistan. The crucial fact has been admitted by the US president and Secretary General of United Nations in their diverse statements from time to time. India has raised hue and cry against this development. Future Strategy of SAARC A conciliation through the aegis of SAARC on the Kashmir as well other issues between India and other members of SAARC can bring not only the prospects for the sub continent but also give a much stronger voice to the have-nots of the world in their dealing with the haves. There is a dire need that Saarc collectively strive for positive peace with honour and justice if the people of this conflict ridden region are to tread the roads of progress and prosperity. The leaders of SAARC signed the Social Charter and recognized poverty alleviation as the formidable challenge facing the people of the region and directed the South Asian commission for poverty Alleviation to prepare ?a comprehensive and realistic blueprint setting out SAARC development goals for the next five years in the areas of poverty alleviation, education, health and environment.? The post 9/11 international scenario and the perilously explosive situation in South Asia generated by bedeviled relations between India and Pakistan demands that SAARC in order to prove its usefulness should prevail upon them to accept the offer of mediation of Saarc in promoting reconciliation and to find mutually acceptable solution that address the root cause of tension. SAARCs future progress is in Indo-Pak rapprochement and good will since tangible regional cooperation cannot take place without their active support and involvement. SAARCs progress cannot be expected unless the relationship between India and Pakistan is improved. SAARC should convince India to pursue policies which reassure all the other partners of her economic and political goodwill. Only then the SAARC states will be able to move forward collectively towards a more prosperous and secure future. The SAARC should convince the members to unravel internal political problem in a spirit of peaceful coexistence and tolerance. The internal problem in Sri Lanka, Nepal, Bangladesh and India needs SAARCs immediate attention. Dynamic and effective SAARC will preserve precious resources which are squandered for the purchase of unnecessary weapons and could be diverted to development of soft sectors of economy. The prime duty of SAARC is to realize the masses of South Asia that once the core issue Kashmir is settled peacefully to the satisfaction of the Kashmiris and Pakistan and India, there will be no bone of contention of any consequence to damage the relations between India and Pakistan and South Asia will become a haven of peace, prosperity and stability. The benefits to India will be immense including trade not only with Pakistan but also with the Central Asian states. India has been looking for permanent membership of the United Nations Security Council and good neighbourly relations with Pakistan are bound to help in enlisting the support of Pakistan. India will also gain in moral stature internationally. The saving over defence will go a long way to increase social and economic prosperity. The SAARC with the consent of its entire member strive to amend Article ten of its Charter to include political issues within its domain as promised during Sixth SAARC summit. The SAARC has to wage jihad against increasing and galloping Poverty. The leaders of Saarc countries have ?recognize poverty alleviation as the greatest challenge facing the people of South Asia and declare poverty alleviation as the overarching goal of all SAARC activities.? The Saarc must convince and persuade its members to accord top priority to the development of soft sectors. Effectual and effective mechanism should be devised to implement the recommendations of Independent South Asian Commission for Poverty Alleviation report ?Our future our Responsibility?. In order to attract more aid and economic assistance, SAARC should expedite its efforts to collaborate with international donors to reduce poverty from region. The SAARC should strive to forge economic cooperation among member countries. The SAARC countries signed SAFTA agreement on January 6 2004 with a firm pledge to scale down their tariff in two phases to 0-5 percent that will come into force on January 1, 2006.The SAARC should ensure successful implementation of South Asian Free Trade Agreement as it will surely help generate economic activity and benefit people of the region. Its committee of experts is working on details to pave the way for its phased implementation. If the process is allowed to succeed it will change the dynamics of business in the region. It will also alter the economic landscape of every Saarc country. In accordance with the SAFTA framework treaty trade barriers between SAARC member states will be gradually removed. The SAARC must maintain the momentum achieved during 12th SAARC summit and proceed further broadening of economic cooperation and ensure equitable distribution of benefits of trade and cater to the special needs of the LDC countries by providing them differential treatment. The intra ? regional trade, which is only 4% of the total trade, can be increased up to 20-25% provided member countries fulfill the requirements of SAFTA and SAPTA arrangement. CONCLUSION Being a member of SAARC country, it is my firm belief that Saarc had not been allowed to achieve its lofty objectives. Inspite of differences and stumbling bloc, it has accomplished more than its counter part organization. As they have no internal territorial dispute to settle, while SAARC has a wound which is still profusely bleeding. Like The United Nations, SAARC as a regional organization cannot be termed as failure but the members of it are unable to make it effective, result oriented and dynamic organization. SAARC has human and natural resource, and capable of becoming a potential regional Organisation. It can cater enormous benefits in socio-economic sectors provided member states coalesce with each other in a spirit of fraternity. According to well known Urdu writer Hassan Nisar ?single currency and soft borders will change the destiny of Muslims of South Asia? It is aptly believed that the platform of SAARC will help Muslims of South Asia to reunite and bring glory to the Muslims of South Asia. ?Those who are against soft borders and single currency are enemy of Muslim might and their welfare?. The forum of Saarc has provided an opportunity which could be availed of not only to attain self reliance and improve the economic and social conditions within states but also to safeguard against extra regional forces which may create pressures and problems to suit their interests. These external powers are selling huge weapons of Mass Destruction to South Asia countries. It is going to be a significant milestone in the history of Saarc. The dream of poverty eradication will not come true unless SAARC become active in devising a potent mechanism to settle intra and internal problems among its members. To avoid any possible pitfalls and derailment of composite peace process, auspiciously initiated following the 12th summit, on which the peace ? loving people have pinned their hopes, SAARC has to be active and vigilant. The SAARC should ensure that composite dialogue should continue in the spirit of cordiality, goodwill and accommodation that was witnessed during the 12th SAARC Summit. It is time that the SAARC states wakeup to the realities of the situation, reduce the level of mutual recrimination, and instead build a strong base for regional cooperation. Without an amicable solution of bilateral and regional disputes bedeviling the political climate in South Asia, the dream of a regional alliance and economic wellbeing of poor masses, may not come true. The Prime Minister of Bangladesh Begum Khaleda Zia, whose late husband, President Ziaur Rehman, had first propounded the idea of the South Asian grouping said while addressing the 12th SAARC summit ?we must seize the present momentum and forge ahead?. November 8, 2005 REFERENCES
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