Statement by H. E. Q.A.M.A. Rahim

SAARC SECRETARY-GENERAL

Hon'ble Ambassador-at-Large Dr. Bhekh Bahadur Thapa,
Officiating Executive Director of the Institute of Foreign Affairs,
Young Friends presenting papers at the seminar,
Ladies and Gentlemen,

At the outset, let me express my sincere thanks to the Institute of Foreign Affairs for organizing this Seminar and extending invitation to me to say a few words at its inaugural session. I am very happy that the organizers have chosen this topic involving young professionals, as they are the ones who would take the future responsibility of leading us to a peaceful and prosperous South Asia.

Mr. Chairman,
You are all aware that the idea of regional cooperation in South Asia was first mooted in May 1980. However, it was the first Summit in Dhaka in 1985, which adopted the Charter formally establishing the South Asian Association for Regional Cooperation (SAARC). Since then it has evolved considerably. You are more or less familiar with its history, its achievements and failures. Today I will touch upon only three issues, namely trade, poverty alleviation and social development, all of which will have far reaching implications as far as the future of South Asia is concerned.

Mr. Chairman,
At the last Summit, our Leaders made a number of futuristic commitments. To give effect to the shared aspirations for a more prosperous South Asia, they agreed to the vision of a phased and planned process eventually leading to a South Asian Economic Union (SAEU). Recognizing the need to move quickly from the existing Preferential Trading Arrangement (SAPTA) to a South Asian Free Trade Area (SAFTA), at the second phase of the evolutionary process, the Kathmandu Summit directed that the text of its Draft Treaty Framework be finalized early. A Committee of Experts has already held a number of meetings and its final meeting is scheduled to be held later this month. We hope the text will be ready for submission at the Twelfth Summit in Islamabad in January 2004. I need not, however, tell you that while removal of tariff may be agreed to in negotiations, trade can still be restricted through non-tariff measures and other barriers. Identification and dismantling of all such barriers are thus critical elements of trade facilitation. Realizing this, the Summit directed the Member States to expedite action to remove all non-tariff barriers and all structural impediments to free trade. I would also add that the negative assessments of current intra-regional trade, which hovers around 5 percent of the region's total external trade, also points towards supply constraints and the limited basket of tradable items. To expand the trade basket, increased investment will be essential. A draft Regional Agreement on Promotion and Protection of Investment within the SAARC region is, therefore, under consideration. Linked to the Regional Investment Agreement, an Agreement on Avoidance of Double Taxation is also being looked into. To boost intra-regional trade we also need to take a number of other trade facilitation measures. First, the streamlining and simplification of documentation and procedural requirements. A Standing Group is working on simplification of customs procedure and documentations. Second, the issue of quick movement of goods at reasonable cost is equally important. Transportation is thus, a major element that needs to be addressed in this regard. The SAARC Technical Committee on Transport and Communications has the responsibility of addressing this issue. Third, recognizing the importance of standards and measurement, a SAARC Standing Group on Standards, Quality Control and Measurement has been set up to identify how national standards may be harmonized and regional standards agreed upon. Fourth, a proposal to set up a SAARC Arbitration Council is under examination by Member States. My point to tell you all is to sensitize you about the unfolding of new trade regime in South Asia.

Mr. Chairman,
Let us now come to Poverty Alleviation, which is the most important area of cooperation in SAARC. During the last Summit, the Leaders reviewed the SAARC activities aimed at poverty alleviation and decided to reconstitute the Independent South Asian Commission on Poverty Alleviation (ISACPA) with the mandate to review the recommendations of the earlier Commission and to suggest new measures and strategies. The reconstituted ISACPA has completed the work and is now ready with its Report to be presented at the Twelfth Summit.

The Eleventh Summit also mandated me to prepare a Regional Poverty Profile (RPP). The profile is now complete and this will, among other things, provide an up-to-date picture of the poverty situation in the region, including its recent trends and future projections; serve as a monitoring tool as far as the poverty scenarios of the SAARC Member States are concerned; and also serve as an advocacy tool to stir up policymakers into action. RPP 2003 has been published as mandated. I have proposed to make it a regular publication and work has already begun to prepare the SAARC RPP 2004.

Given the fact that over 500 million people in South Asia are living below the poverty line, whatever definition of poverty you take, we need more action-oriented approach to deal with the scourge of poverty. The Report of the reconstituted Independent South Asian Commission on Poverty Alleviation (ISACPA) along with the recent Regional Poverty Profile (RPP) and possible regional poverty alleviation projects under the South Asian Development Fund can contribute towards the realization of the Millennium Development Goal of reducing absolute poverty by 50 percent by 2015.

You all will appreciate that economic development cannot be sustained by neglecting social issues. Over the years SAARC has devoted much attention on cooperation in fields such as health, education, women and children. The Tenth Summit (Colombo, 1998) directed that a Social Charter be developed for SAARC, which would focus on drawing up targets with a broad range to be achieved across the region in areas such as poverty eradication, population stabilization, empowerment of women, youth mobilization, human resources development, promotion of health and nutrition, and protection of children. For drafting a SAARC Social Charter, the Inter Governmental Expert Group met in Kathmandu at the beginning of this month. The Charter, expected to be signed at the Twelfth Summit, would not be of a purely declaratory nature, but would help promote effective action in the social arena.

Other than the three issues I have just mentioned, let me bring to your attention the issue which is not only relevant to our discussion today but needs constant support from our young generation. Yes, I am talking about a new generation perspective on people-to-people contacts. SAARC Leaders have attached high priority to the promotion of people-to-people contacts in the region to strengthen mutual understanding and goodwill among the peoples of South Asia. While SAARC is an inter-governmental Association, successive Summits have emphasized the importance of promoting people-to-people contacts at all levels. In order to give effect to this concept, a number of initiatives have been taken under the aegis of SAARC. These include (a) adoption of a SAARC Visa Exemption Scheme; (b) recognition of Professional Bodies; and (c) recognition of SAARC Regional Apex bodies e.g SAARC Chamber of Commerce and Industry (SCCI).

I have recently taken some initiatives to promote the concept of South Asian Regional Identity, which I hope will boost the SAARC process and lay the foundation of a more integrated South Asia in the future. For the moment, I have proposed simple steps like visa fee reduction, opening of separate SAARC immigration counters at the airports, reduced rate of entrance fees at museums and historical sites for SAARC citizens, celebrations by the Member States of the SAARC Charter Day on 8 December etc. These are presently under consideration and I hope the Twelfth Summit will be able to decide on these proposals. I urge the young members of the audience to take a pro-active role in promoting the South Asian Identity.

Mr. Chairman,
SAARC can be seen as an important vehicle of confidence building in the region. Our initiatives on greater people-to-people contacts and encouragement to private sector entities to contribute to the strengthening of the SAARC process will eventually sustain a vibrant and engaging civil society throughout South Asia. Let me conclude by saying that I firmly believe that there is no alternative to regional cooperation for the prosperity of the entire region. The present, haunted by the legacy of the past, may look bleak but the future may not necessarily be the same. It is the young generation of the region who can make a difference in utilizing the full potential of our people and resources. The future of South Asia is in the hands of this generation who has the power to guide it towards collective prosperity.

I thank you all.