PERFORMANCE OF SAARC AS A REGIONAL ORGANIZATION IN COMPARISON WITH ASEAN AND ECO Ph.D Thesis Supervisor: Supervisor: Prof. Dr. Muhammad Zahid Khan Lodhi Prof. Dr. M. H. Bokhari (HEC) Professor Submitted by: Abdul Majid 2011 CENTRE FOR SOUTH ASIAN STUDIES University of the Punjab, Quaid-e-Azam Campus, Lahore, Pakistan. PERFORMANCE OF SAARC AS A REGIONAL ORGANIZATION IN COMPARISON WITH ASEAN AND ECO A thesis submitted in fulfillment of the requirement for the Degree of Doctor of Philosophy in Political Science. Abdul Majid 2011 CENTRE FOR SOUTH ASIAN STUDIES University of the Punjab, Quaid-e-Azam Campus, Lahore, Pakistan. DECLARATION Except where indicated this thesis is my original work carried out for the Ph.D degree at the University of the Punjab. ___________ Abdul Majid DEDICATION This thesis is dedicated to my parents Sultana Begum & Muhammad Ibrahim. ABSTRACT With limited output and a avoid sarcastic expressions gap between its promise and performance, SAARC has a long way to go to become an effective organization for regional cooperation. The common vision upholding the ideals of peace, stability, good-neighborly relations and mutually beneficial cooperation in South Asia remains a distant dream. The problems besetting its member states and those hampering a coherent regional approach remain unaddressed. SAARC’s regional approach not only lacks operational mechanism but is also captive to its peculiar geo-political environment in which India’s hegemonic role and its outstanding unresolved problems with its neighbors continue to hamper meaningful progress toward regional integration. Regional cooperation in Asia is not a recent phenomenon. This regional cooperation started in 1964 when Pakistan, Iran and Turkey, induced by the Cold War context and encouraged by the U.S., established a cooperative mechanism called “Regional Cooperation for Development” or RCD as it was more familiarly known. Unfortunately, it could not move beyond what its acronym literally stood for: RCD for “recreation through conferences and delegations”. It was dissolved in 1979 when the Islamic Revolution took place in Iran. ASEAN is another regional experience in Asia. Established in 1967, it had five members but now it comprises ten member-states. This grouping is the only regional organization other than the European Union (EU) which has pursued and achieved genuine economic integration and made a visible difference in the political, economic and cultural life of its member-states. Despite its cultural diversities and difference in political and governing systems, ASEAN represents an examplary regional cooperation. What makes this organization even more remarkable is its attractiveness to other regions and countries including major powers, which have been seeking partnership with this organization for mutually beneficial cooperation not only in the economic field but also in political and security areas in the form of ASEAN Region Forum (ARF) established in 1994. Two other regional organizations, namely the Economic Cooperation Organization (ECO) and SAARC, emerged in Asia in 1985 with ambitious goals and objectives. ECO with its headquarters in Tehran was essentially the reincarnation of RCD, dissolved in 1979. The ECO assumed a new dimension and a global identity with its transformation in 1992 from a trilateral entity to a ten-member states organization. Like ASEAN, South Asia is a region with different levels of economic development and patterns of governance. The process of regional cooperation could not take off because of the inherent weaknesses in the new member-states, mutual distrust and ongoing war on terrorism and its consequences in Afghanistan. Almost 25 years have passed since SAARC came into being as an expression of collective resolve of South Asian states to develop a regional cooperative framework in an increasingly inter-dependent world and to keep pace with the changing times for the socio-economic well-being of its people. This promise is far from being fulfilled. Despite its shortcomings, SAARC represents a region which claims a high growth rate averaging above 5%. At 8 to 9% India’s growth rate is the highest in the region, which signifies immense potential of gains for neighboring countries if they engage in regional collaboration. The inclusion of new members i.e. Afghanistan and central Asian states and observers in SAARC are viewed as promising developments. The SAARC has drawn some programmes in terms of engagement of the states of the region with one another. However, in concrete terms the achievements are limited and the region has moved slowly towards regional economic integration. The problems of poverty and under-development continue to haunt these countries. The areas of education, health care and sustainable development continue to face neglect. SAARC has not so far accelerated the economic growth, social progress or cultural development of its member states. South Asia remains one of the world’s poorest regions with partly closed economy. Despite some progress towards trade liberalization in the 1990s, vast majority of its people still live in grinding poverty and sub-human conditions. Economic growth indices, with rare exceptions are static, if not going downward. They have yet to overcome their most daunting socio-economic disparities. One important way to deal with these difficulties is to change the approach, attitudes and behavior of the concerned states so that fresh ideas, concepts, theories and approaches are given a fair chance. This would require tolerance, magnanimity, prudent vision and practical approach to detach countries from the baggage of the past and move in the direction of development and progress in order to deal with these faultlines which impede the process of regional development. It is hoped that as the states of the region develop mutual confidence, the performance of SAARC will improve. ACKNOWLEDGEMENTS I have the honour to record my sincere thanks and gratitude to my teacher and supervisor Prof. Dr. Muhammad Zahid Khan Lodhi for his guidance and valuable insight throughout the preparation of dissertation. His unfailing and keen interest in my work and his constant help is too deep to be expressed in words. My sincere thanks to Prof. Dr. M. H. Bokhari (supervisor), who has always been a source of inspiration for me. He has been very kind and generous in his guidance. I must thank Prof. Dr. Hasan Askari Rizvi and Prof. Sajjad Naseer who have always been a source of inspiration for me. I am thankful to my brothers Dr. Muhammad Abdul Rashid and Abdul Hamid for their encouragement and cooperation. I also thank Prof. Dr. Umbreen Javaid, Director Centre for South Asian Studies, University of the Punjab for her encouragement. I am indebted to all those who have assisted me either directly or indirectly to complete my work. Finally, but most importantly, I sincerely thank my wife Asmaa Yasmin for her constant support during all phases and stages of research and dissertation preparation. Abdul Majid ABBREVIATIONS ADB Asian Development Bank AEC African Economic Community AF African Union AFAS ASEAN Framework Agreement AFTA ASEAN Free Trade Area AHN Asian Highway Network AIA ASEAN Investment Area AL Arab League AMMTC ASEAN Ministerial Meeting on Transnation Crime APHC All Parties Hurriyat Conference APIBM Afghanistan – Pakistan - India – Bangladesh – Myanmar APT Asia Pacific Telecommunity ARF ASEAN Regional Forum ASC ASEAN Security Community ASEAN Association of South East Asia Nations ASEM Asia Europe Meeting ATT Agreement on Traffic and Trade AU African Union BEI Bangladesh Enterprise Institute BLPA Bangladesh Land Ports Authority BoP Balance of Payment BPFA Beijing Platform for Action CARs Central Asian Republics CBMs Confidence Building Measures CBTA Cross-border Transport Agreement CE Council of Europe CEC Committee on Economic Cooperation CEPT Common Effective Preferential Tariff CIDA Canadian International Development Agency CLMV Cambodia Laos PDR Myanmar and Vietnam CMI Chiang Mai Initiative COE Committee of Experts COM Council of Ministers CPR Council of Permanent Representatives CSI Container Security Initiative DND Draft Nuclear Doctrine EALAF East Asia Latin American Forum EAS East Asia Summit EC European Commission ECI ECO Cultural Institute ECO Economic Cooperation Organization ECOWAS Economic Community of West African States ECSC Europe Coal and Steel Community EEC European Economic Community EFTA European Free Trade Area EPG Eminent Person Group EPZs Export-Processing Zones ESC Environmentally Substainable Cities ESCAP Economic and Social Commission for Asia and Pacific FC Frontier Corps FDIFTA Foreign Direct Investment Free Trade Agreement FOSWAL Fundamental of SAARC Writers and Literature FSIO Federation of State Insurance Organizations of SAARC Countries FSWL Foundation of SAARC Writers and Literature FTA Free Trade Area GCAP Great Central Asia Partnership GCC Gulf Cooperation Council GCP Great Central Partnership GDP Gross Domestic Product GEP Group of Eminent Persons GMS Great Mekong Subregion GNI Gross National Income GNP Gross National Product GT Grand Trunk ICAO International Civil Aviation Organization IFPFS International Fish and Port Facility Security IGEG Inter Governmental Export Group IGG Inter Government Group IMF International Monetary Fund IMO International Maritime Organization IP Intellectual Property IPA Integrated Program of Action IPI Iran-Pakistan-India IPS Institute of Policy Studies ISACPA Independent South Asian Commission for Poverty Alleviation