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.