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Batter of Pliilogoplip REGIONAL ECONOMIC COOPERATION IN ASIA A STUDY OF ASEAN AND SAARC ABSTRACT '' THESIS ' ^^' SUBMITTED FOR THE AWARD OF THE DEGREE OF Batter of Pliilogoplip :. ; „..J IN POLITICAL SCIEHCE C5"lD BY NOMAN HAIDER UNDER THE SUPERVISION OF Prof. Ms. fqbal Khanam DEPARTMENT OF POLITICAL SCIENCE ALIGARH MUSLIM UNIVERSITY ALIGARH (INDIA) 2006 ..«-* *n^/>> ABSTRACT One of the most striking development in international system, since 1945, is the proliferation of regional and sub-regional organizations. Precisely, a region is invariably an area embracing the territories of three or more states. And regionalisation can be defined as a collective action at regional level to secure national goals. Accordingly, sub-regionalism is viewed as 'regionalism within region'. From the conceptual point of view the operative principle in the evolution of growth in cooperative relationship at all levels are rooted in wider terms of 'peace', 'security' and 'development'. International system has been a constantly changing phenomena and it got intensified with the end of World War II. This change can be seen is swiftly shifting of the system from bipolar rivalry to unipolar strength extending beyond economics, technology or military might to dominance of attitude, concepts and mode of life at different levels. The aspiration worldwide has been one of multilateralism against unilateralism, for balanced multipolarism against unipolarism, for cultural diversity against uniformity, for horizontal economic growth against vertical trade bloc system. The experiment and experience of regional and subregional cooperation in Southeast Asia and South Asia with the formation of Association of South East Asian nations (ASEAN) and South Asian Association for Regional Cooperation (SAARC) respectively, may be seen as a part of the same process of global change towards building a new modified structure of cooperation. by the late president of Bangladesh, Ziaur Rahman, on May 2, 1980. He seemed to have been working on the idea of an ASEAN-like organization in South Asia. Since 1985, SAARC has evolved slowly but continuously both in terms of institutions and programmes. However, it is true that most of the programmes and achievements of SAARC exist on paper. Prime factor for this lagging behind is that SAARC has unfortunately been a hostage to Pakistan-India relations and the relations have become hostage to the dynamics of internal politics in India and Pakistan. South Asia as a region, has several unique and peculiar characteristics. The most unique one is the overwhelming size, resource and power of India. It has also been battle ground for enormous conflicts and struggle of large mass of humanity. This region is one characterize by extraordinary geographical, political and socio-economic diversities. Its conflicts and cleavages are far deeper than those in several other third world arenas. The problem of maintaining political stability and institution building are compounded by massive strategic, economic and demographic postures. The problem of this region is that nations believe in conducting their relationship by exploiting regional discords rather than by underplaying them. The regional approach is always overshadowed and, therefore, sabotage by bilateral differences. Due to this tendency, the process of emergence of regional consciousness, though extremely desirable, is slow is South Asia, what W.H. Morris Jones called "fractured region of fractured states, an unexciting world of little cohesion". The methodology of inquiry and investigation has been primarily based on among others, the primary documents pertaining to the above mentioned regional economic blocs. A comparative perspective of evolution and growth of ASEAN and SAARC has been an important focus in this exploratory and analytical method of study using qualitative source of information. The approach to this study has been qualitative concerning subjective as well as objective assessment of the behavioural aspect of different variables in the regional cooperative system. The central theme of the thesis entitled "Regional Economic Cooperation in Asia: A Study of ASEAN and SAARC", describes and examines issues in regional economic cooperation and integration and their inter-relationship both in theory and practice, through a comparative study of ASEAN and SAARC regional organizations. Taking a comprehensive view of regional economic cooperation, it analyses and evaluates how ASEAN and SAARC have contributed to regional economic development in Southeast Asia and South Asia respectively. Intra-regional relationship among the member countries has been examined with the broader parameters of the changing international scenario. The whole thesis has been divided into five main chapters. Chapter One speaks about region, regionalism, new regionalism and various dimensions of economic integration. A region is something more than a country and less than a continent. It is an appropriate half way-house for a time when the viability of a single state is in doubt but the world is not yet ready for unity. In the literature, on the regional cooperation, the term regionalism, is used with different meanings including political unification. economic unification, economic and political integration and free trade. Here in this study all the aforementioned terms have been used interchangeably. This part dpals with an exhaustive introduction of region, regionalism and different facets of regional economic cooperation have been analysed empirically and conceptually. In tried to identify that regional cooperation is a multilateral efforts acknowledging the interdependence of members and this efforts succeed when member countries develop a common sense of well being both at the political and social level, thereby paving the way of cooperation and avoid conflicts. In Chapter Two and Three an effort has been made to identify the Southeast Asia and South Asia as a region and regional entity. Further, all the concerned countries of the regions are introduced in geographical, historical, political, economic and demographic respects. Moreover, from a strictly chronological point of view the evolution and growth of the ASEAN and SAARC as an regional organizations have been discussed in detail. It then proceeds to focus on the following aspects of ASEAN and SAARC as a regional bodies; the field of cooperation in the region; regional policies adopted by the Iwo organizations lo promote regional cooperation in economic and other developmental area; perceptions of individual member states towards regional organizations; the approach of the member states towards economic and other regional problems; and, influence of extra regional factors on regional economic development and cooperation. Despite cooperative endeavours, inter-state relations as much as intra-state relations in south Asia remain somewhat traumatic, with almost total absence of conflict-solving mechanism. The problem for South Asia was and continues to be how to get rid of "the baggage of history", to move away from asymmetry and geopolitics of the past and look for a future which is different from the past. The Chapter Four of the thesis concentrates the constraints facing South Asian regional cooperation at length and views the problems in the region as being of different order. It is an interpolative and comparative study of ASEAN and SAARC. It explains the domestic, political and economic dynamics of the two regions. The ASEAN states severally and collectively have remained absorbed in identifying their problems and looking for alternatives, however difficult they might be. The South Asian countries on the other hand, have been only adding to their load of problems, while dragging on or postponing resolution of the existing sets of problems. As a result, the age-old animosities along ethnic and religious lines, even political confrontation, hostility and internal (domestic) tension continue to vitiated relations. South Asian countries are still experiencing "vicious circle" of economic growth, mutual rigidity and political confrontation nationally, bilaterally and regionally. Furthermore, SAARC having an image of "high profile and low performance" due to lack of a serious political commitment, in turn, is due to several bilateral problems between states of the SAARC which bedevil the region. But, optimistically the idea of 'open-regionalism', 'growth zone' or 'growth triangle' is as appealing to South Asia, as it was for Southeast Asian countries, as there are potential economic goal, both of a static and dynamic nature, to be captured by all participating countries. However, it is thought that in experimenting with such structure, the objective must be quite transparent and as a process, it is better to be practical and start small than conceive mega project and then fail. Thus, in this chapter special attention has been given on the strategies, factors and variables which make ASEAN an economic giant and a power to be reckoned in international fora, by dealing at length, the differences and commonalities of two organizations in bringing development and prosperity in respective regions. There is little doubt that the South Asian region does have immense potentials to develop into a dynamic growth zone, as a "borderless" economic territory. At the political and policy level, physical and cultural proximity should be fully exploited. To be specific, consistent with the more recent global trend, there should be a psychological proximity involving the concerned people,
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