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Plea for delinking SAARC economic matters from politics
South Asian business le^i crs. seeking a leading role in the process of economic integration of their region, have asked politics to be separated from economic matters
The call came from a re giona] seminar on "Fostering Business Co operation among SAARC countries," held last week in the West Bengal capl tai Calcutta. according to meeting sources and reports of the Indian press made available to UNB.
Business community at the meet resolved that close and Institutionalised co-operation among chambers of commerce of the region would be a right prescription for the economics of SAARC countries tn their move to cooperate with each other in business.
To begin with, they planned to set up a SAARC cell The modality of the proposed cell, according to meeting sources, would be worked out possibly tn April or May in Dhaka
Chiefs of leading trade bod les attended the seminar, or ganlzed by the Associated Chamber of Commerce and Industry (Assocham). the apex body of the Indian chambers.
The Calcutta »>ool unanimously singled out Intra-regional rivalry and distrust al the political level as the major barrier to closer economic cooperation In South Asia owr the years
"Economic cooperation among the countries has been
hampered by historically derived apprehensions and dis trust.” said Latlfur Rahman, new President of Dhaka's Met ropoltlan Chamber of Commerce and Industry (MCC!)
Mumtaz Ahmed, a leading Indian entrepreneur and the Immediate past President of Bengal Chamber of Comment and Industry, went a step ahead The Business Standard quoted Ahmed as saying eco nomlc Issues should tmmcdl ately be delinked from the po
Htk al ones If one were serious about business
"It was no longer necessary to worry about government in tcrferencc" was the general re train of the Assocham meet, observed another reputed business dally.
The business community came out with these propositions In the wake of seventh SAARC summit In Dhaka, postponed following communal disturbances as a backlash of the December 6 demolition of
Babri Mosque in India
The postponement caused disappointment among peoples of the region as well an the business community as the summit was due to endorse SAITA (South Asian I'rcle rentlal Trading Arrangement), which many sec as a major breakthrough In economic Integration of SAARC.
Meeting sources said SAARC business leaders un equivocally agreed that economlc integration of the re glon is the only option for South Asia to withstand the threats of market restriction emerging from the growing trend of forming regional Iradc blocs across the world.
The scenario of intra-re-glonal trade in SARRC has been constantly pathetic— only three per cent of the total trade turnover of South Asia compared to nearly 40 per cent in ease of ASEAN.
Moreover, lack of co-operation has led to competition among SAARC members for a common product In the International market, providing buyers with the chance to dictate prices. Such competition has resulted decline In the prices of commodities like tea and jute.
The Calcutta meet calk-d for a halt to the intra-regional competition and Instead strongly recommended formation of commodity-wise consortia for exporting agro-based traditional produce—lea. Jute, coffee, sugar.
As the meeting agreed to steer South Asia into a regional economic bloc, the chamber representatives of poorer nations within the SAARC called for special preferences.
Latifur Rahman of MCCI recommended that there should be some mechanism In the framework of economic co-operation for smaller and weaker nations like Nepal, Bhutan and Bangladesh so that initial trade liberalization does not generate controversies.
Imbalance in intra-rcgional trade is widespread. India and Pakistan having superior infrastructure and technology are enjoying Increasingly favourable balance in trade with the rest of South Asia.
India's export to Bangladesh grew by 211 per cent in a decade from 52.2 million US dollars in 1980-81 to 162.4 million in 1991-92. Dhaka s export to New Delhi, on the other hand, shrank by 2 per cent during the period from 24.8 million to 24.3 million.
The MCCI President reportedly cautioned the meeting that trade liberalization without arrangement of safety net for weaker members would aggravate inequalities.