Why in News?
The former Sri Lankan Prime Minister Ranil Wickremesinghe set out a number of suggestions for regional co-operation at a private conclave.
What did he suggest?
- He has pushed for regional economic integration and for India-Pakistan dialogue should be studied carefully by New Delhi.
- He blamed India-Pakistan tensions for bringing economic integration within the SAARC region to a “standstill”.
- He said that the SAARC’s original purpose was to build a platform where bilateral issues could be set aside in the interest of regional growth.
What was the sub-grouping that he suggested?
- He said that there is a lack of economic integration in South Asia, and the failure of SAARC and BIMSTEC.
- When it comes to the intra-regional share of total trade, SAARC and BIMSTEC languish behind ASEAN, EU and MERCOSUR.
- To engender more intra-regional trade, he suggested forming a sub-grouping of four countries with complementary economies (India, Sri Lanka, Bangladesh and Thailand).
- They should begin the process of reducing tariffs and demolishing non-tariff barrier regimes.
- He suggested that with India’s leadership, a more integrated South Asian region would be better equipped to negotiate for better terms with RCEP.
- He also envisioned an Economic Integration Road Map to speed up the process.
Will these suggestions be accepted by India?
- Given the current policy trajectory of the present Indian government, it is unlikely that any of the suggestions will be welcomed.
- India has made it clear that talks with Pakistan are strictly off the table.
- Due to the protectionist turn that India has taken on multilateral trade pacts, it is relying more on direct bilateral deals with countries.
- SAARC summit, which has not been held since 2014, is unlikely to be convened anytime soon.
- It has also walked away from the ASEAN-led Regional Comprehensive Economic Partnership (RCEP).
What could India do?
- For any regional sub-grouping in South Asia to flourish, it is India that will have to make the most concessions which it may not wish to do.
- However, India’s global reach will be severely constrained unless it is integrated with its neighbours, and tensions with Pakistan are resolved.
- This is a projection which cannot be disproved.
- India needs to be more accommodative for the realisation of its ambitions.
Source: The Hindu
BIMSTEC
- Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is a sector-driven sub-regional organization.
- It came into being in 1997 through the Bangkok Declaration.
- Its member States lie in the littoral and adjacent areas of the Bay of Bengal.
- 7 Member States - Bangladesh, Bhutan, India, Nepal, Sri Lanka, Myanmar and Thailand.
SAARC
- South Asian Association for Regional Cooperation (SAARC) was established with the signing of the SAARC Charter in Dhaka in 1985.
- 8 Member States - Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.
- SAARC Secretariat was set up in Kathmanduin 1987.
- Objectives of SAARC –
- To provide a platform for the peoples of South Asia to work together in a spirit of friendship, trust and understanding.
- It aims to promote the welfare of the peoples of South Asia and to improve their quality of life through accelerated economic growth, social progress and cultural development in the region.
