euro 312 presentation is eu integration model suitable for the south asian association for regional...

Euro 312 Presentation

Is EU integration model suitable for the South Asian

Association for Regional Co-operation (SAARC)?

By

William Lama

9th June 2006

Outline

About SAARC

Why should South Asia Integrate?

Why EU model?

South Asian scenario: Vision towards South Asian Union (SAU)

Economic Integration

Political Integration

Key Challenges

About SAARC

Established in 1985

SAARC Charter was signed by 7 Countries

Bangladesh Afghanistan

Bhutan

Ind ia

Maldives Nepal

Pakistan

Sri Lanka

Observer

Observer status holder countries

SAARCJapan

United States China European Union

South Korea

Charter

Objectives:

Improve Quality of life

Accelerate economic growth

Promote social progress, collective self reliance

cooperation among members in international forums.

Basis of cooperation

Principles: Sovereign equality, territorial integrity, political

independence.

Non-interference

General provisions: Summit as the highest authority

Decision on unanimity

Bilateral and contentious issues excluded

South Asia Now

Massive poverty-46% of total population

Regional instability Terrorism Separatism Kashmir issue

Low intra-regional trade 4.5 % of total trade of the region

Address common issues Tsunami Earthquake and other natural disasters

World Bank, 2005

South Asia22%

Rest of the World

78%

South Asia40%

Rest of the World

60%

Rest of the World

54%

South Asia46%

Share of SAARC in World Population

Share of SAARC in World illiteracy

Share of South Asia in World poverty

Why South Asia should integrate?

Economic benefits

Cooperation and integration fosters

market expansion for goods and services

economies of scale

attract more foreign direct investment

benefits of technology and knowledge transfer

higher productivity

Economic development

Political benefits

Regional Stability

Security

Why EU model?

It has worked well for the EU

40+ years to form EU

An example of the highest form of integration in the world Intra-EU trade 63-70%, Growth, FDI, growth in HDI Example Ireland, Poland and Greece Economic and political union

Integration with institutionalisation Economic integration to creation of European Identity

EU-SAARC bilateral relations

EU is likely to gain observer status of SAARC

EU willing to assist SAARC implement EU integration model

Expertise

Technical assistance

Will it Work for SAARC?

Economic integration

possible

Political integration

The South Asian Parliamentary Sovereignty

Inter-governmental or supranational

Political Integration difficult without the creation of South Asian identity.

The Formation of South Asian Union

The steps and estimated time

Free Trade Area 2017

Custom Union 2027

South Asian Parliament 2027

Common Market 2047

Economic and Monetary Union 2059

SAARC to South Asian Union

Key challenges

Establishing South Asia as free trade area

Kashmir Issue and atomic nations

Implementation of SAARC agreements

Combating Corruption

Reducing Poverty, Inequality and Enhancing Human Security

Thank You