Study: Saarc countries integration needed for regional assimilation

It is needless to say how important it is to immediately strengthen the trade relationship between the Saarc countries to boost up the regional integration in South Asia. Dr Selim Raihan, executive director of South Asian Network on Economic Modelling (Sanem) and also Professor of University of Dhaka, disclosed the information yesterday at a press brief held at Sanem conference room at Gulshan in Dhaka, organised to share the findings of different researches conducted by him at different times. The researches were funded by IDB, German non-government organisation GIZ and Asian Foundation. According to Selim’s research findings, deeper regional integration is needed in South Asia for generating sustainable economic growth, alleviating poverty and ensuring food security and larger participation in the global value chain through intra-country stable political relations. Selim said: “We shouldn’t abandon the SAARC. For regional stability and peace, efforts by the civil societies, private sectors and media should be made, creating pressure on related countries, to bring down the existing political rivalry in South Asia.” He also said SAARC can be the best platform for ensuring this regional integration than the BIMSTEC which is considered by many as the suitable platform for integration of South Asia. Selim’s research shows that different SAARC bodies, mainly SAARC dispute settlement committee and the BIBN initiative – a road connectivity project between Bangladesh, India, Bhutan and Nepal – can be the political economic platform for the South Asian region. Through the dispute settlement committee, the SAARC bodies can work for the implementation of agreements of intra-regional service trade and intra-regional investment which is very low due to the political rivalry between India and Pakistan. And the BBIN can be a gateway to connect China which is also endorsed by SAARC, the research finding suggest. The research findings also recommended for large infrastructural development for making the BBIN motor vehicle agreement fruitful. Although the largest export market in South Asia is the Indian market worth around $460bn along with others three major markets Pakistan ($59bn), Bangladesh ($46bn) and Sri Lanka ($21bn) but the research suggested to increase the bilateral trade among smallest countries of this region like Nepal, Bhutan which can a way to strong intra-country trade relation in this region and also domestic capacities of the exporters in Bangladesh, Bhutan, Nepal need to be improved to meet different international standard requirements. The research suggested increasing the bilateral trade among smallest countries of this region, like Nepal and Bhutan, which can ensure strong intra-country trade relation in this region. Domestic capacities of the exporters like Bangladesh, Bhutan and Nepal need to be improved also to meet different international standard requirements.