SAFTA and environment

South Asian leaders: Togetherness generates a ray of hope. PHOTO: AFP

SAFTA would also facilitate in lowering tariffs at a faster speed. It is hoped that with the implementation of SAFTA and the resulting lowering of tariffs, the volume of intra-regional trade would move to 20% from the present 4-5%.

However, the enhanced industrial production due to the intra-regional increase in trade volume and the existing poor environmental policies and even worse implementation mechanisms in the region, would generate a great deal of pollution with major negative environmental impacts and consequences.

In view of the above and to protect our regional "Environmental Capital," there is a dire need of an early and most effective implementation of the envisaged "SAARC Environment Plan of Action" and formulation of a "SAARC Regional Environmental Treaty." Prior to SAFTA entry into force on January 1, 2006, as much important are, the development of SAARC regional environmental quality standards and the establishment of joint-environmental-monitoring stations in the close vicinity of borders of the countries to examine the water quality at the entry/exit points and the ambient air quality along the borders.

It is also suggested that the proposed "Committee of Experts" (COE) under SAFTA Ministerial Council (SMC) may also include environmental experts to look into the related environmental issues/impacts, besides the experts in trade matters.

(II)

When heads of states and heads of governments of the seven member states of SAARC met in Islamabad on January 4-6 for the 12th SAARC Summit, they had three concerns how to overcome the widespread poverty, the growing threats from terrorism and signing of the framework agreement on SAFTA. But the first and foremost challenge of this region is poverty. Home to one fifth of humanity, the region is saddled with 40 percent of the world's absolute poor. The Human Development Index (HDI) of the countries of this region clearly points to this fundamental problem. According to the global Human Development Report 2002, the HDI of Bangladesh is 0.478 whereas that of Pakistan, Bhutan, India, Sri Lanka, Maldives and Nepal stands at 0.499, 0.494, 0.577, 0.741, 0.743 and 0.490 respectively.

The adult literacy rate of South Asian region is 48 percent, which is way behind that of 55 percent in Sub-Saharan Africa and 89 percent of East Asia (excluding China). South Asia's per-capita income is US$ 309, compared to $ 555 in Sub-Saharan Africa, and more than US $ 10,000 in East Asia. The gap in the per-capita incomes between South Asia and East Asia (excluding China) has widened from US $ 200 in 1960 to US $ 9,700 in 1993. While factors like higher investment in human capital, outward looking trade strategies, land reforms, prudent fiscal and monetary management and investment friendly policies explain the success stories of East Asia, one important factor contributing to it is relatively high priority given to economic and development issues in relatively conflict free conditions, unlike in South Asia. So, there is no alternative to focusing on poverty alleviation in this region. And it would certainly work better if all the countries of the region join hands.

Another important challenge before the region is the growing threat of terrorism. Almost all the countries of the region, with the exception of Maldives, suffer from various degrees and forms of terrorism. The conflicts and insurgencies have been holding this region to ransom for long, which is, in turn, impeding the economic development. The 12th Summit focused on these two issues including the signing of framework agreement on free trade that would be launched from 2006. It has also agreed to formulate the regional poverty profile as well as discuss strengthening regional cooperation in dealing with the threats of terrorism. It has also adopted the SAARC social charter, among other things. But the most important development was that the Islamabad summit signed the much-awaited regional free trade agreement, though Nepal, Bangladesh, Bhutan and the Maldives' demand of the removal of anti-dumping duties did not elicit a favourable response .

Unfortunately, though the South Asian Association for Regional Cooperation (SAARC) is already two decades old, there is a tendency so far of feeling triumphant at the mere organisation of its summits. So, this year when the Indian Prime Minister confirmed his participation at the 12th Summit in Islamabad, there was such a sense of euphoria that people were led to believe that the mere holding of a summit is enough of a success.

Our expectations have been lowered by years of unproductive existence of SAARC.

Sirajul Islam, Social sciences researcher and consultant, Shyamoli, Dhaka 1207