Nepal: Wither SAARC? Or withering away?
Atul Chatterjee
August 03, 2008
This is the 15th South Asia Association for Regional Cooperation meet at Colombo. When SAARC was founded a major objective was economic cooperation. At present intra SAARC trade is just five per cent, what does Nepal have to gain by lowering of tariff and non-tariff barriers?
Firstly, Nepal does not have a slew of manufactures which it can export. So removal of non tariff barriers is not going to help it all that much on the export front. Further Pakistan has stalled any major agreement by linking the resolution of the Kashmir issue and has refused to grant most favoured nation status to India.
India has been erecting all sorts of economic barriers against Bangladesh, and on the other hand in this multilateral institution of SAARC it claims to be lowering barriers to trade. So SAFTA (South Asia Free Trade Association) is still a non starter.
It has been announced that Nepal´s Prime Minister G P Koirala is looking for a meeting with Indian PM Manmohan Singh on the sidelines during the meet. What is he going to ask for? What is the continuity from the past?
Another agreement that India is looking for is in the area of terror. It will have to get Pakistan to agree to sign the document which mainly concerns exchange of information about terror activities and suspects.
What does Maldives and Bhutan also members of SAARC really have to do with terror? India could well have pursued the case bilaterally with Pakistan, Bangladesh, Nepal, Sri Lanka and possibly Afghanistan. Each country would have a different level of comfort dealing with India which is the main mover for this agreement.
Alternately India should look towards a general agreement under UN auspices to cover this area of terror and try for a 'Global Accord on Terror'.
Pakistan has been asking for the inclusion of China in SAARC, India does not want that. China will be able to bring in substantial funds and expertise into SAARC. Nepal would be well advised to support Pakistan in this venture. With China in it would act as a counterweight to India.
India on the other hand is supporting the inclusion of Myanmar, this is a good move for that country as it will start coming out of seclusion. But again it is a country with a very weak economy.
SAARC needs an injection of fresh blood, best in the form of China. Or else it will become an association of the weak which is rapidly turning into a battle ground and wither away in due course.
Nepal should weigh its options, at present the secretariat of SAARC is located in Kathmandu, the employment generated due to that is the main advantage it is gaining!!
Firstly, Nepal does not have a slew of manufactures which it can export. So removal of non tariff barriers is not going to help it all that much on the export front. Further Pakistan has stalled any major agreement by linking the resolution of the Kashmir issue and has refused to grant most favoured nation status to India.
India has been erecting all sorts of economic barriers against Bangladesh, and on the other hand in this multilateral institution of SAARC it claims to be lowering barriers to trade. So SAFTA (South Asia Free Trade Association) is still a non starter.
It has been announced that Nepal´s Prime Minister G P Koirala is looking for a meeting with Indian PM Manmohan Singh on the sidelines during the meet. What is he going to ask for? What is the continuity from the past?
Another agreement that India is looking for is in the area of terror. It will have to get Pakistan to agree to sign the document which mainly concerns exchange of information about terror activities and suspects.
What does Maldives and Bhutan also members of SAARC really have to do with terror? India could well have pursued the case bilaterally with Pakistan, Bangladesh, Nepal, Sri Lanka and possibly Afghanistan. Each country would have a different level of comfort dealing with India which is the main mover for this agreement.
Alternately India should look towards a general agreement under UN auspices to cover this area of terror and try for a 'Global Accord on Terror'.
Pakistan has been asking for the inclusion of China in SAARC, India does not want that. China will be able to bring in substantial funds and expertise into SAARC. Nepal would be well advised to support Pakistan in this venture. With China in it would act as a counterweight to India.
India on the other hand is supporting the inclusion of Myanmar, this is a good move for that country as it will start coming out of seclusion. But again it is a country with a very weak economy.
SAARC needs an injection of fresh blood, best in the form of China. Or else it will become an association of the weak which is rapidly turning into a battle ground and wither away in due course.
Nepal should weigh its options, at present the secretariat of SAARC is located in Kathmandu, the employment generated due to that is the main advantage it is gaining!!
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