Wednesday, December 13, 2023

How will SAARC come out of existential crisis?

Kathmandu, Dec. 9

With 22 per cent of the world population and the largest reserves of fresh water in the Himalayas, the South Asian region has an immense potential for growth and development. However, it is one of the poorest and least integrated regions in the world. The Per Capita Income (PCI) is low here with just US$ 8,000 (on Purchasing Power Parity) while the PCI in the European Union stands at US$ 54,000 in 2022, according to the World Bank.

The South Asia has been greatly affected by poverty, terrorism, the climate change impacts like drought, excessive rainfall, glacier melting and glacial lake outbursts, and low intra-regional trade.

Four of the eight countries in the region are under the category of the Least Developed Countries (LDCs). While the Maldives graduated in 2011, Bhutan is set to graduate to the 'developing country' category from December 13 this year, Nepal and Bangladesh will have their status upgraded in November 24, 2026. However, Afghanistan's future is still bleak with prolonged political instability caused by terrorism, war against terror and geopolitical interventions.

Considering the backwardness of the countries in South Asia, the leaders from seven countries in the region had decided to establish the South Asian Association for Regional Cooperation (SAARC) in 1985 with the aim of promoting welfare of the people and improving their quality of life, accelerating economic growth, social progress and cultural development here, and creating opportunity for people of the region to live in dignity.

The regional platform was created by seven countries in the South Asian region - Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka. Later, Afghanistan was added to the block in 2007.

But the SAARC that includes two nuclear powers – India and Pakistan – and the world's largest population (India) is facing an existential crisis as it has failed to hold its 19th Summit since 2016 and transfer the leadership of the organisation. Nepal has been the chair of the SAARC since 2014, when Kathmandu hosted the 18th SAARC Summit.

While India, the largest member country in terms of population and land area as well as in trade has shown apathy to the regional mechanism, other member countries are silent in confusion. The 2016 SAARC Summit was to be held in Pakistan, and Nepal was supposed to handover the chairmanship to the former.

 

Hostage of Indo-Pak Tensions

The SAARC process has become hostage to the souring relations between India and Pakistan. The two nuclear powers have fought multiple wars since their independence in 1947.

The 2016 SAARC Summit scheduled to take place in Islamabad, Pakistan, in November that year was postponed and later canceled as several members of the organisation boycotted it citing heightened tensions between India and Pakistan. Initially, India had decided not to take part in the summit accusing Pakistan-based militants of the attack on an Indian Army Base in Uri of Jammu and Kashmir that killed 19 Indian soldiers. Later, Bangladesh, Bhutan, Afghanistan and Sri Lanka also expressed their inability to attend the summit.

Likewise, in a message issued on the occasion of the 36th SAARC Charter Day in 2020, the then Prime Minister KP Sharma Oli of Nepal and the then Prime Minister Imran Khan of Pakistan called for the organisation of the SAARC Summit.

In response, Indian Prime Minister Narendra Modi indicating Pakistan, said that the effectiveness of SAARC would increase only if "terror and violence" could be ended.

India has been presenting same cause as a major obstacle to participate in the SAARC Summit. According to the SAARC charter, SAARC Summit or other strategic decisions should not be taken even if one of the member states abstains from it. A unanimous decision is required for that.

On the other hand, Pakistan has been saying that India is the main reason for the obstruction of the SAARC process. In January 2022, when India said that there was no progress in removing the obstacles seen in organising the SAARC Summit, in response, Pakistan said that the short-sighted thinking of the big country in the region has hindered the development of the regional organisation and made it ineffective.

According to some experts, the BIMSTEC (Bay of Bengal Initiative for Multi-sectorial Technical and Economic Cooperation) and the BBIN sub-regional mechanisms are being used as per India's desire to keep Pakistan out.

Moreover, the preference of India has shifted its focus towards global forums like G20 and BRICS rather than South Asia. The direction of its foreign and trade policies has turned towards powerful countries and less attention has been paid to regional platforms and mechanisms, said Vijaya Kant Karna, former Ambassador and expert in foreign affairs.

 

Potential Wasted

Former Minister for Foreign Affairs, Pradeep Kumar Gyawali, said that the failure to hold summits for almost eight years and the inability to hold discussions among the leaders of the region on other occasions has increased the risk of SAARC's failure. "This is an organisation with an immense potential of growth and progress but its moving towards being ineffective. It is unfortunate that the conflict between the two members (out of eight) has posed a risk of derailing the entire SAARC process," he said.

Meanwhile, due to the increased inactivity in the region, discussions on SAARC were minimised in other multilateral and regional forums of the member countries.

However, the regional challenges have not been minimised. Tens of millions of people are in poverty, terrorism couldn't be curbed, and economic cooperation has remained poor among the members since long.

Similarly, expansion of infrastructure and communication network is another area of cooperation. Road and communication infrastructure could be developed at the sub-regional level through BBIN (Bangladesh-Bhutan-India-Nepal) network, and expanded to the entire region in the near future. In addition to promoting business in this area, roads and communication will also contribute to the development of relations at the people's level. The cooperation of the countries of this region is likely to help in achieving Sustainable Development Goals (SDGs) as well.

Since all political leaders of the SAARC member countries agree on the fact that the roads, transmission lines and information and communication technology are instrumental for the national as well as the regional growth, the regional platform should be reactivated to enhance cooperation in these areas so that a common fight could be fought against poverty and terrorism.

Extensive cooperation among the members of the SAARC is also needed in the areas of fighting the climate change, natural disasters and pandemics, said the experts.

At the recently concluded United Nations Climate Conference (COP28), Prime Minister Pushpa Kamal Dahal 'Prachanda' demanded that rich and industrialised countries should compensate Nepal for the suffering and disasters caused by climate change. If the SAARC institutionally and its members are united in the issue, it will be easier to gather the necessary international support to reduce the risks caused by the climate change and to help the people who are affected by disasters occurring due to climate change.

 

Poor Regional Integration

The SAARC is probably the least integrated regions in the world in terms of regional trade and investment in the world. Its intra-regional trade is only about 5 per cent while SAARC's nearest neighbour, the Association of Southeast Asian Nations (ASEAN), does 25 per cent of its total trade in the same region. On the other hand, the situation of the European Union is the best in the world with 50 to 70 per cent trade of the member countries happening within the region.

Selling the products in the nearest markets reduces the cost of transporting the goods thus lowering the price of the product.

According to former President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Pradeep Kumar Shrestha, SAARC is not working as per its objectives which has had a negative impact on the commercial sector as well.

"A special visa was arranged for business leaders when visiting member countries, but now it has ceased to be effective," said Shrestha, who has been the vice president of the SAARC Chamber of Commerce as well as the Confederation of Asia-Pacific Chamber of Commerce and Industry (CACI). He expressed worries over the shifting focus of regional politics and diplomacy away from business.

After a six-month-long embargo on Nepal, when it was weakened by a powerful earthquake in 2072, India's intentions had also been widely doubted. On the one hand, there is no comparison of India in solving politics even in international trade, and on the other hand, the neighbouring countries are less sure about getting the desired support from India and are more suspicious of suffering from India's dominance.

Businessmen of neighbouring countries are of the opinion that if India can show some generosity, some problems will be solved. Former FM Gyawali also maintains that India should not let the motion of regional cooperation weaken and exhibit greater generosity. However, he stated that dialogue among the members should resume to initiate this process.

 

Not Dead Yet

The SAARC has many structural problems. Its eight member states are vastly different in terms of population and country size. India with a population of 1.42 billion and the Maldives with a population of about 400,000 are placed here. Similarly, from democratic countries to monarchies and Islamic extremists, the Taliban, are here. In such a situation, some problems will arise in order to advance SAARC without any problems. Yet, there is now a necessity to find a solution to these problems through consensus, according to the experts. 

Dr. Dinesh Bhattarai, foreign affairs expert said that the SAARC was not dead yet but is in ventilator. He said that the relevancy of it has further increased as its credibility as a regional organisation has been established at various global forums.

The regional organisation was about to be revitalised during the COVID-19 pandemic in 2020 when Indian PM Modi held a virtual meeting with the leaders of the member countries and proposed to establish a fund to combat the pandemic. All the governments of the member countries took it positively and agreed to move forward with the project.

Foreign affairs expert Dr. Nishchal Nath Pandey said that although formal SAARC has not been active, track-2 of South Asia has kept the SAARC spirit alive. Through seminars and publications, SAARC has not died down. "The apex bodies of SAARC are active, South Asian Studies is gaining popularity in world-renowned universities so it's no longer just a government organisation," he said.

Although the 2014 summit abolished some agencies to reduce the operational costs of SAARC, major agencies in different areas are still working. They include the South Asian University (New Delhi), the South Asian Regional Standard Organisation (Dhaka), the SAARC Agriculture Center (Dhaka), the SAARC Tuberculosis and HIV/AIDS Center (Kathmandu), the SAARC Cultural Centre (Colombo), the SAARC Energy Center (Islamabad), the SAARC Disaster Management Center (New Delhi), the SAARC Development Fund (Thimpu) and SAARC Arbitration Council (Islamabad).

Dr. Bhattarai said that when the SAARC has completed 38 years despite doubts and animosity between or among some of its member countries, it will revitalise itself in the days to come.

However, as SAARC chairman, Nepal has not done as much as it should, said Karn. "It seems that Nepal has failed to find a solution through silent diplomacy and through constant communication with the members," he said.

Through all the missions in the regional countries as well as through the permanent representative in New York, dialogue and discussion about SAARC could be carried forward, he said.

If the SAARC conference cannot be held in Pakistan, it is necessary to dialogue among the member countries and find an alternative. It is necessary for Nepal to make efforts for that in the coming days, said former FM Gyawali.

He said that at the meeting of the SAARC foreign ministers held at the sidelines of the 2020 United Nations General Assembly, Nepal had proposed to find a new venue for the SAARC summit, but the agenda couldn't be move forward. According to Gyawali, India should be more open for the regional dialogue and Nepal should initiate dialogue with the member countries to find a solution to the stalemate. 

Published in The Rising Nepal daily on 10 December 2023. 

No comments:

Post a Comment

Featured Story

Govt prepares primary draft of DRR Policy

Kathmandu, Apr. 29: The government has prepared the preliminary report of the National Disaster Risk Reduction (DRR) Policy and Strategic ...