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Policy Approaches of South Asian Countries: Impact on the Region

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Policy Approaches of South Asian Countries: Impact on the Region Policy Approaches of South Asian Countries: Impact on the Region President Ambassador (R) Sohail Amin Conference Coordinator Muhammad Munir Editor Sarah Siddiq Aneel Assistant Conference Coordinator Aymen Ijaz Assistant Editor Zahida Khalid P R I I Islamabad Policy Research Institute (IPRI) Hanns Seidel Foundation (HSF) c Islamabad Policy Research Institute 2016 ISBN 978-969-8721-50-3 Views and opinions expressed in the papers read and the extempore speeches made at the conference are those of the authors and speakers concerned and do not necessarily reflect IPRI’s position on the respective issues. All rights reserved. No portion of the contents may be reproduced or reprinted in any form without the written permission of the Editor/Publisher. Islamabad Policy Research Institute (IPRI) House No. 6, Street 63, Ismail Zabeeh Road, F-8/4 Islamabad, Pakistan Ph: +92 (0)51 9261348-50; Fax: +92 (0)51 9261351 Email: [email protected] Website: www.ipripak.org Composed by Noreen Hameed Printed by Agha Jee Printers Blue Area, Islamabad Price: Pakistan Rs. 500/- Foreign US$ 10 CONTENTS Acknowledgements Acronyms Preface PART I Welcome Address Ambassador (R) Sohail Amin 1 Opening Remarks Kristof W. Duwaerts 4 Inaugural Address Ambassador M. Akram Zaki 6 Concluding Address Ambassador Tariq Fatemi 10 Concluding Remarks Kristof W. Duwaerts 16 Vote of Thanks Ambassador (R) Sohail Amin 17 Conference Recommendations 19 PART II Policy Formulation and Implementation 1. Policy Formulation: A Bird’s Eye View of South Asia and Pakistan Dr Zafar Nawaz Jaspal 21 2. Domestic Determinants of Indian Foreign Policy: Impact on Relations with Neighbouring Countries Dr Rashid Ahmad Khan 31 Challenges for South Asian Policy-Makers 3. Countering Terrorism and Extremism Dr Syed Rifaat Hussain 45 4. Future of South Asia: Inter-State Politics and Geo-Strategic Alliances Shamindra Ferdinando 62 Regional Connectivity 5. Political Disputes: Implications for Regional Trade and Economic Cooperation Dr Kamal Monnoo 77 6. Prospects of Energy Cooperation in South Asia Dr Bishnu Hari Nepal 98 Approaches towards Peace and Security in South Asia 7. Regional Dividends of Peace in Afghanistan Nader Nadery 121 8. Prospects of India-Pakistan Peace Process Dr Pervaiz Iqbal Cheema 135 Annexure 1: Conference Speakers’ Biographies 150 Annexure 2: IPRI Publications 153 Acknowledgements This volume is based on papers presented at the two-day International Conference on ‘Policy Approaches of South Asian Countries and their Impact on the Region’ held from June 2-3, 2015 at Serena Hotel in Islamabad, Pakistan. The Conference was jointly organised by the Islamabad Policy Research Institute (IPRI) and the Hanns Seidel Foundation (HSF), Islamabad. The Institute is grateful to the chapter authors who strove to advance policy formulation beyond mere theory and towards posing solutions of particular policy questions, with a South Asia focus. Without their support and enthusiasm, this book would have failed. Conference speakers who were unable to provide manuscripts, but whose views were critical to the Conference include Dr Andrea Fleschenberg, Mr Ye Hailin and Ms Sadia Ashfaq. IPRI is also thankful to the Chief Guests and Chairs who presided over the various sessions of the Conference and to the active participation of scholars, students and professionals who attended this event. The Conference also owes its success to the efforts and logistical support of the administrative and research staff of IPRI, especially Ms Aymen Ijaz, Assistant Research Officer, who also served as Stage Secretary. The fiscal and institutional support of HSF was instrumental in undertaking this Conference. Acronyms ADB Asian Development Bank APTTA Afghanistan-Pakistan Transit Trade Agreement ASEAN Association of Southeast Asian Nations BBIN Bangladesh, Bhutan, India and Nepal CPB Communist Party Bhutan BCIM Bangladesh, China, India, Myanmar Economic Corridor BJP Bhartiya Janta Party BRICS Brazil, Russia, India, China and South Africa C2C Custom to Custom CA Central Asia CASA Central Asia – South Asia Electricity Transmission and Trade Project CBMs Confidence Building Measures CARs Central Asian Republics CNG Compressed Natural Gas CPEC China Pakistan Economic Corridor CSOs Civil Society Organisations EU European Union FATA Federally Administered Tribal Areas FDI Foreign Direct Investment FIATA International Federation of Freight Forwarders Associations FPCCI Federation of Pakistan Chambers of Commerce & Industry FTA Free Trade Area FTAs Free Trade Agreements GATT General Agreement on Tariffs and Trade GDP Gross Domestic Product GWe Gigawatt-electric HoG Head of Government HoS Head of State HRCP Human Rights Commission of Pakistan IANGV International Association for Natural Gas Vehicles ICV Infantry Combat Vehicle ILO International Labour Organization IMF International Monetary Fund IPR Intellectual Property Rights IT Information Technology KPK Khyber Pakhtunkhwa LDC Least Developed Country LeT Lashkar-e-Taiba LoC Line of Control LTTE Liberation Tigers of Tamil Eelam MBT Main Battle Tanks MFN Most Favoured Nation MinFAL Ministry of Food, Agriculture and Livestock (Pakistan) MOC Ministry of Commerce NAFTA North American Free Trade Agreement NAMA Non-Agricultural Market Access NDA National Democratic Alliance NDMA Non-Discriminatory Market Access NGOs Non-Governmental Organisations NTB Non-Tariff Barrier NTC National Tariff Commission NPT Non-Proliferation Treaty OBOR One Belt, One Road OECD Organisation for Economic Co-operation and Development OHCHR Office of the United Nations High Commissioner for Human Rights PLOTE People’s Liberation Organisation of Tamil Eelam PTAs Preferential Trade Agreements RAW Research and Analysis Wing RBI Reserve Bank of India RSS Rashtriya Swaensavak Sang SA South Asia SAARC South Asian Association for Regional Co-operation SAFTA South Asian Free Trade Agreement SAPTA South Asian Preferential Trade Area SARSO South Asia Regional Standards Organization SATIS South Asian Agreement on Trade in Services SME Small and Medium Enterprise SRO Statutory Rule and Order TAPI Turkmenistan, Afghanistan, Pakistan and India Gas Pipeline TBT Technical Barriers to Trade TIR Customs Convention on the International Transport of Goods TNA Tamil National Army TPP Trans Pacific Partnership TRI Trade Restrictiveness Index TRIMS Trade Related Investment Measures TTP Tehrik-e- Taliban Pakistan UNAMA United Nations Assistance Mission in Afghanistan UNCTAD United Nations Conference on Trade and Development UNHCR United Nations High Commissioner for Refugees U.S. United States WoT War on Terror WTO World Trade Organization Preface Preface Ambassador (R) Sohail Amin, Muhammad Munir and Aymen Ijaz outh Asia is one of the most important regions of the world. It is facing multi-dimensional security challenges, both traditional and non- S traditional. Most of the challenges faced by the region are based on deep rooted historic differences, political issues and long-standing disputes that have not allowed economic and strategic interests to take precedence in matters of policy and development. Some other threats of common concern to most South Asian nations are non-traditional security threats such as drug trafficking, terrorism, environment, climate change, food security, intra region migration, infrastructure and energy crisis. Domestic as well as external factors have played their role in influencing the process of policy formulation in South Asia. Despite these challenges, there exists enormous untapped regional economic potential which needs to be explored. The most common approach of policy-makers in South Asia to deal with insurgencies, terrorism, or internal violence is to use security forces to establish law and order in the affected areas. Sheer use of force has not been a successful strategy. There is also a need to simultaneously use political and economic approaches to overcome internal security threats. After the withdrawal of foreign forces from Afghanistan, countries need to cooperate for regional stability and development. Inter-connectivity and sharing best practices could be a better approach towards rooting out emerging security threats and promoting mutual growth. South Asian countries can also learn from best practices in regional cooperation. For instance, in the ASEAN region, integration has been achieved by a multi-pronged process and by following a multilateral approach. Therefore, to evolve recommendations for transforming the policy approaches of the South Asian countries from conflict or competitive mode to a cooperative endeavour, Islamabad Policy Research Institute (IPRI), in collaboration with Hanns Seidel Foundation (HSF) decided to organise an International Conference on Policy Approaches of South Asian Countries and their Impact on the Region. Besides Pakistan, eminent scholars from Afghanistan, Bangladesh, China, Germany, Nepal and Sri Lanka also participated in the Conference. This book contains eight of the papers and essays which were presented at the Conference. It is organised into two parts. The first part Policy Approaches of South Asian Countries includes the welcome address by Ambassador (R) Sohail Amin, President IPRI; opening remarks by Mr Kristof W. Duwaerts, Resident Representative HSF Islamabad; inaugural address by the Chief Guest, Ambassador M. Akram Zaki, Former Secretary General and Minister of State, Government of Pakistan; and the concluding address by Ambassador Tariq Fatemi, Special Assistant to the Prime Minister on Foreign Affairs. The second part consists
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