The South Asian Economic Summit concludes with call for regional policy integration

The Fourteenth South Asian Economic Summit (SAES XIV) concluded underscoring the significance of regional integration to foster the development of bilateral trade and tap into an extensive market potential.

Balancing work and personal life is still a significant challenge for women

Balancing work and personal life pose a significant challenge for women, especially who often bear an unfair share of family responsibilities as sole caregivers. This imbalance underscores the need for a shift in societal mindsets to achieve gender equality.

Implementation of a universal healthcare system at the country level is crucial

South Asia has seen advancements in public health, but these improvements are notable primarily when compared to Sub-Saharan Africa, particularly in areas such as life expectancy, maternal mortality, and mortality rates.

Knowledge actors should collaborate on generating fellowships and knowledge transfer initiatives

There is a longstanding tradition of collaboration among think tanks in South Asia, with coalitions forming since the 1980s. These institutions play crucial roles in promoting evidence-based policies, facilitating open dialogues, and complementing official processes to monitor progress.

Geo-strategic factors underpinning contemporary trends in South Asian cooperation

The third plenary session of the Fourteenth South Asia Economic Summit (SAES XIV) titled ‘Geo-strategic factors underpinning contemporary trends in South Asian cooperation’ was held on 5 November, 2023

The SAARC Chambers of Commerce should mediate partnerships between the private sector and the government

South Asia faces challenges in global value chain integration due to the high trading costs, hindering its competitiveness on the global stage. The region’s historical advantage of offering affordable labour and resources is diminishing, necessitating a shift towards attracting more Foreign Direct Investment (FDI).

Undocumented regional migration is not reflected in official numbers

South Asian countries are currently undergoing enhanced industrialisation, primarily driven by one or two major sectors. However, this growth is accompanied by challenges, notably national security concerns and conflicts between natives and non-natives, which impact cross-border labour migration.

Ambiguity regarding the impacts of climate change hampers development efforts in climate-effected coastal areas

Climate change has far-reaching impacts on our environment’s physical, social, and economic aspects, affecting plants, animals, rivers, forests, and soil, among other elements.

Bangladesh can achieve its clean energy goals through regional integration

Regional integration can not only enhance energy security but also facilitate the transition towards clean energy through regional energy trade. Within South Asian countries, seasonal variations in energy demand and supply are evident.

South Asia is not ready for common currency

Establishing a common currency in the South Asian region, similar to Europe, could potentially lead to greater economic integration, improved trade facilitation, and enhanced regional cooperation.

South Asian countries must use shared rivers for promoting multi-modal connectivity

Geopolitical issues and numerous conflicts worldwide are impeding the progress of multi-modal transportation in South Asia. The region is facing challenges such as inadequate governance, subpar existing infrastructure and bureaucratic hurdles.

The preparation of a new Group of Eminent Persons has become a pressing need

Since the global financial crisis of 2008, world trade has struggled to regain momentum, and international investments have reached a plateau. The current phenomenon, often labeled as ‘slowbalisation,’ reflects a shift from the financial economy and hyper-globalisation to a renewed emphasis on the real economy. Observations highlight the dependence of the productivity paradigm on structural transformation, emphasising the crucial role of the manufacturing sector in generating quality employment opportunities. To drive this transformation, it is imperative to harness the potential of regional value chains, necessitating a focus on reinforcing industrial policies in regional countries.

These are some of the insights that emerged at the first plenary session of the Fourteenth South Asia Economic Summit (SAES XIV) titled ‘State of regional cooperation in South Asia: Revisiting Group of Eminent Persons (GEP) Report, new context, challenges and opportunities’ held on 4 November, 2023 at the Sheraton Hotel, Dhaka.

The Chair of the session, Professor Mustafizur Rahman, Distinguished Fellow, Centre for Policy Dialogue (CPD), said ‘The 1999 GEP Report aimed to make South Asian Association for Regional Cooperation (SAARC) similar to the European Union in terms of trade and economic integration. However, these ambitions did not fully materialise’.

‘Connectivity, trade and transport facilitation are the primary obstacles hindering the realisation of South Asia’s full trade potential. Significant progress is needed in these areas to unlock the region’s trade capabilities’ emphasised Dr Nagesh Kumar, Director and Chief Executive, Institute for Studies in Industrial Development (ISID), India.

While discussing the issues related to SAARC, Ambassador Farooq Sobhan, Distinguished Fellow & Board Member, Bangladesh Enterprise Institute (BEI) and Former Foreign Secretary, Bangladesh, highlighted ‘The persistent challenge with SAARC over the years has been the issue of implementation. The organisation’s success often fluctuates based on the state of Indo-Pak relations and the personalities involved.

Ms Mandakini Kaul, Regional Coordinator, South Asia Regional Integration and Engagement, The World Bank, underscored that the elevated trade and infrastructure expenses had created a situation where it is more costly for companies in Bangladesh to engage in trade with neighboring countries than with countries such as Brazil or others located farther away.

‘We should not hold SAARC hostage to inter-governmental differences. It was the initiative of the people, not governments’ opined Mr Abdul Ghufran Memon, Federal Secretary, Ministry of Maritime Affairs, Government of Pakistan.

Ms Irosha Cooray, Director, Education Security & Culture, SAARC, said ‘We are awaiting guidance from the member states, and we expect to hold the SAARC summit as soon as possible.’

‘The SAARC charter already includes provisions for sub-regional cooperation and acknowledges its importance’ said Dr Posh Raj Pandey, Senior Economic Advisor, Ministry of Finance, Government of Nepal.

Dr Debapriya Bhattacharya, Distinguished Fellow, CPD, participated in the open floor discussion and recommended ‘Whether a new Group of Eminent Person’s report is necessary to consolidate the lessons of the past—what has worked and what has not—requires an evidence-based approach’.

The speakers in the session engaged in discussions surrounding the aspirations outlined in the GEP Report and deliberated on issues that have surfaced over the past 15 years. They expressed that SAARC should not be hindered by intergovernmental differences. They also highlighted the example of the Association of Southeast Asian Nations (ASEAN), where, despite bilateral tensions among member states, collaboration endures toward common goals.

Emphasising regional cooperation’s benefits, the suggestion was to initiate pilot projects that, when successful, can be scaled up. Collaboration with technical institutions to leverage their expertise and resources was encouraged. Furthermore, sub-regional cooperation could concentrate on areas such as trade facilitation, connectivity, and disaster management.

Given the current context, the creation of a new GEP is deemed essential. The proposed GEP should take into account lessons from the past, conducting an evidence-based assessment to discern what has worked and what has not. This approach aims to inform and guide future initiatives for effective regional cooperation and development.

High-level policymakers, political leaders, academics, development practitioners, civil society activists from Bangladesh and the South Asian region attended the conference and shared their valuable insights.

New opportunities and new modalities should be identified to foster regional cooperation

In the ever-changing landscape of South Asian regional dynamics, it is clear that the conventional strategies of regional cooperation are insufficient. Traditional approaches of regional cooperation of South Asia are too top-down, government-led, and too focused on economic growth and development.

Reframing South Asian Regional Cooperation

The South Asia Economic Summit (SAES) is the pre-eminent track 1.5 initiative in South Asia which aspires to identify modalities of deepening cooperation among South Asian countries. It is a unique policy forum that brings together academics and policy activists, policymakers and diplomats, business and civil society leaders, international development partners and other personalities from the region who are keen to advance this cause.

The platform was founded through the collaboration of five leading think tanks of the region, viz Centre for Policy Dialogue (CPD), Research and Information Centre for Developing Countries (RIS), Institute of Policy Studies of Sri Lanka (IPS), Sustainable Development Policy Institute (SDPI) and South Asia Watch on Trade, Economics and Environment (SAWTEE). It seeks to bring together, in Davos style, involved key stakeholders from the region and beyond to engage in debate and dialogue to generate innovative ideas and actionable agendas to foster and promote a South Asian identity and cooperation in different areas.

SAES, convened as an annual event, is organised in rotation by the five core partners in their respective countries, namely Bangladesh, India, Nepal, Pakistan, and Sri Lanka. This event also draws participants from neighboring nations in the region, such as Afghanistan, Bhutan, and Maldives.

The Fourteenth South Asia Economic Summit (SAES XIV) was hosted by CPD in Dhaka, Bangladesh. This two-day conference took place on 4-5 November, 2023, and was centred around the theme of ‘Reframing South Asian Regional Cooperation in the New Context: National and Global Dimensions’.

During this two-day conference, an inaugural session, three plenaries, nine parallel sessions, and a closing session were organised, with the participation of 70 panelists. SAES XIV saw an overwhelming number of attendees, with approximately 600 participants from both Bangladesh and countries across the South Asian region.

In her welcome address during the inaugural session, Dr Fahmida Khatun, Executive Director, CPD, said ‘Regional cooperation in South Asia has stumbled over the years due to political tensions, historical animosity between countries, and ongoing political and territorial disputes. There prevails a trust deficit among countries in the region’.

The Chief Guest, Dr Shirin Sharmin Chaudhury, MP, Hon’ble Speaker, Bangladesh Parliament, emphasised the ongoing struggle of South Asian countries against the COVID-19 pandemic’s adverse effects. The global economic shocks from the Ukraine conflict and the escalating situation in Palestine are further impacting the region. Against this backdrop, the Summit’s theme, is highly relevant, she added. It will help to address not only Bangladesh’s concerns but also the broader South Asian goals of eradicating poverty, ensuring employment, reducing inequality, achieving climate resilience, and enhancing participatory governance.

The Special Guest, Mr M. A. Mannan, MP, Hon’ble Minister Ministry of Planning, Government of Bangladesh, said ‘It is our duty to dismantle the culture of distrust and fear instilled by our colonial masters. We must work towards gradually easing these barriers to foster increased regional trade.’ He also mentioned that Bangladesh has already taken the initiative to establish markets at the Bangladesh-India border for trading. He called for the development of more such markets to facilitate and enhance trading.

‘What sets Bangladesh apart in South Asia is the active engagement of Non-Governmental Organisations (NGOs) and Civil Society Organisations (CSOs) in fostering human development, promoting female participation rates, and empowering women’ opined Dr Ishrat Husain, Former Governor, State Bank of Pakistan and Former Advisor to the Prime Minister on Institutional Reforms & Austerity, Pakistan.

Dr P. Nandalal Weerasinghe, Governor of Central Bank of Sri Lanka, said that trade within South Asian Association for Regional Cooperation (SAARC) is limited due to various factors including political tensions, restrictive tariffs and duties, and excessive documentation.

Dr Yuba Raj Khatiwada, Former Finance Minister and Former Governor, Nepal Rastra Bank, said ‘The region is grappling with severe food insecurity, despite certain countries having a surplus of food. Unfortunately, the cooperation mechanism has been hindered by a reverse order, with some nations imposing restrictions on food exports, even to their neighboring countries. This trend extends to energy trade, which has also faced obstacles and lacks smooth coordination’.

Dr Dushni Weerakoon, Executive Director, Institute of Policy Studies of Sri Lanka (IPS), Sri Lanka, stressed ‘In the coming years, South Asian countries will need to confront challenges both individually and collectively, including issues related to import restrictions and export bans. Finding collaborative solutions will be crucial to navigating these challenges effectively’.

‘The robustness we see in the economic growth in South Asia should reinforce our potential for economic integration’ underscored Professor Sachin Chaturvedi, Director General, Research and Information System for Developing Countries (RIS), India.

While commenting on the progress made by SAES over the years, Dr Paras Kharel, Executive Director, South Asia Watch on Trade, Economics and Environment (SAWTEE), Nepal, said ‘SAES has evolved over the years; the themes and issues covered, and the focus has kept pace with new developments, but importantly, without losing sight of the overriding goal of identifying constructive avenues of regional cooperation’.

Dr Abid Qaiyum Suleri, Executive Director, Sustainable Development Policy Institute (SDPI), Pakistan, ‘The Russia-Ukraine conflict serves as a reminder that economic interdependence alone may not be sufficient to prevent conflicts. While European and Russian economies have been interconnected, the situation underscores that peace and stability depend on factors beyond economic ties. It prompts us to consider a broader perspective and recognise the multifaceted nature of geopolitical dynamics and potential sources of conflict’.

‘As members of South Asian civil society, we have an added responsibility to maintain and advance the concept and evolving agendas for cooperation’ emphasised Professor Rehman Sobhan, Founding Chairman, Centre for Policy Dialogue (CPD), Bangladesh, in his closing remarks.

The speakers of the inaugural session presented a multitude of insightful suggestions. These encompass promoting regional cooperation and partnership despite the changing national, regional, South Asian economic, and political contexts. Additionally, there were proposals for further assistance to graduating LDCs of South Asia, primarily in the form of continued trade preferences, particularly from India and other developing countries. The discussions also emphasised collective efforts on climate change, encompassing information sharing and cross-border disaster management. Ensuring the operationalisation of SAARC institutions, such as SAARC Development Finance and SAARD Seed Bank, was underscored. The suggestion was made for the SAARC Food Bank to be activated, addressing seasonal food deficits in countries and avoiding restrictive trade practices, especially concerning essential food items and drugs.

Furthermore, the speakers highlighted the importance of leveraging global and regional value chains through promoting partnerships beyond the region. The call was made for both the public and private sectors to embrace green and sustainable finance in addressing climate change. Integrated basin management in South Asian River systems was advocated, along with increased investment in the development of human capital, including female empowerment. Lastly, recommendations were put forth to ease visa restrictions and reduce trade barriers to enhance regional trade.

High-level policymakers, political leaders, academics, development practitioners, civil society activists from Bangladesh and the South Asian region attended the conference and shared their valuable insights.