FOR A DIALOGUE OF GOODWILL

Eduardo Faleiro

People of South Asia constitute more than one fifth of mankind, are heirs to
great civilizations and yet face momentous problems of poverty, illiteracy
and deprivation.  Though the governments of SAARC nations have made efforts
since independence to improve the condition of their people, these attempts
are often thwarted by multifarious religious, ethnic and linguistic
problems.  Discontentment and frustration among the masses faced with such
tribulations emboldens subversive forces both within and outside to exploit
national inadequacies.

The solution to our common predicament requires peace and an atmosphere of
dialogue and cooperation rather than of conflict and confrontation.  Peace
is essential for national as well as regional prosperity.  How do we achieve
prosperity in South Asia?  Regional economic cooperation is a pivotal
element.  Economic synergy leads more often than not to the solution of
disputes including political differences.  The fears of any of the SAARC
countries that economic cooperation might destroy their own domestic economy
are unfounded and, in any case, adverse effects can always be prevented by
using such devices as the negative list, the quota system or the tariff
mechanism.

Experience has shown that bilateral agreements between countries of South
Asia are mutually beneficial.  The Indo-Sri Lanka Free Trade Agreement
became operational in 2000 and has produced such good results within a short
period of time that both governments now want to further extend the scope of
the treaty.  One of the commodities which India imports under this treaty is
tea.  However, a quota has been imposed on imports of Sri Lankan tea to
protect our own vast tea production network.

The Indo-Nepal Trade Treaty is also a good example of bilateral cooperation
between the two countries. India has now bilateral agreements with Nepal,
Bhutan and Sri Lanka and recently an agreement has been reached with
Bangladesh to initiate negotiations.

There are problems sometimes and stumbling blocks on the way to economic
cooperation but they can and should be removed in the larger interests of
all the countries involved.  Whilst the SAARC Charter disallows bilateral
and contentious issues, at the Bangalore summit of 1986 there were detailed
discussions between the leaders of India and Sri Lanka on the vexed ethnic
problem of that country.  This tradition had been maintained and has now
become an intrinsic part of the SAARC summits, where time is provided for
bilateral meetings and discussions on an informal basis.  Such meetings
remain unstructured and are not part of the summit agenda, but have proved
very useful on many occasions.

It is through regional arrangements that the countries of Europe as well as
those of South East Asia obtained increased benefits and reduced and
sometimes even eliminated the negative fallout of globalisation.  The
process of economic globalisation has so far gone mostly in favour of the
developed countries and against the interests of the developing nations.

Regional groupings are necessary to increase the bargaining power of
countries in the WTO negotiations.  The SAARC nations successfully
coordinated their strategies at the Seattle and Doha Rounds of negotiations. 
They should again present a unified approach at the round to be held in
Cancun next week on such crucial issues as the Agreement on Agriculture,
agriculture subsidies, market access, TRIPS etc.

Intra-regional trade among SAARC countries as a percentage of their world
trade is negligible at 3.4 per cent.  Intra-regional trade as percentage of
world trade is 38.4 per cent in East Asia, 37.3 per cent in North America
and 63.4 per cent in the European Union.  The South Asia preferential Trade
Agreement (SAPTA) came into effect in 1995 and there has been some modest
progress but we must now move towards the South Asia Free Trade Agreement
(SAFTA).

SAFTA should come into force at the earliest and before we are overtaken by
the obligations under WTO.  Three rounds of meetings were held on SAFTA in
October, November and December 2002.  These meetings discussed the draft
treaty prepared by the SAARC Secretariat but so far the Framework Agreement
has not been finalized.  One hopes that the present Indo-Pakistan peace
initiative will achieve positive results and that it will create a
favourable climate to operationalise SAFTA at the earliest and to achieve
the ultimate objective of a South Asian Union on the lines of the European
Union.

The countries of South Asia have an enormous potential which regrettably has
remained unfulfilled.  To realize their full capability, our peoples ought
to shun extremist agendas whether religious, ethnic or otherwise.  National
reconciliation within each country and cooperation among the countries of
SAARC are the need of the hour.

We must also strive towards sustainable consensus.  Government decisions
ought to be taken by involving all concerned, including Opposition parties,
but decisions once taken must hold notwithstanding changes in government or
other political vicissitudes.

Governments apart, the civil society, the business community, the NGOs must
all emphatically promote awareness about the need and advantage of regional
cooperation.  There ought to be a much greater interaction between the civil
society and the political class across the different countries of South
Asia.  Regrettably such an interaction is minimal.  It would contribute
significantly towards a quicker settlement of differences and a greater
South Asian solidarity which is essential for the progress and prosperity of
all our peoples.

The South Asia Forum inaugurated yesterday (September 5) by Foreign Minister
Yashwant Sinha at Parliament House is an all-party organization.  It will
create awareness about the critical need for peace and cooperation.  We do
believe that such an interaction will lead to a quicker settlement of
differences and to a greater South Asian solidarity, the key to progress and
prosperity of all our peoples.  We do hope to have our Forum's chapters in
all the seven countries and open a dialogue with the intelligentsia and
like-minded organizations.  This would truly be a dialogue of goodwill.



(The writer is a former Union Minister.  He is also the Chairman of the
South Asia Forum).

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