2008-E-26
Regional Integration to Address Poverty and Human Insecurity in SouthAsia: Problems and Prospects for Mainstreaming Asian Integration
Md. Shanawez Hossain
Ph.D. Student, Graduate School of Asia-Pacific Studies,
Waseda University
February 2009

Abstract
With increasing trends of globalization, human insecurity issues in one country easily become
concerns or even threats for neighboring as well as for far distant countries. Against thisbackground, regional integration strategies are receiving priority attention in theinternational arena. This paper explores how South Asian nations are addressing issues ofpoverty and other common threats to secure the lives of about one-fifth of the world’s
population living there. The analysis shows that South Asian integration was initially
focused on economic integration to achieve sustainable development, but against the
globalization trends, mere economic growth has failed to solve key issues of human insecurity
and the regional countries’ focus has begun to shift to social issues. Although they haveachieved some successes, conflicts over common problems among the South Asian countries
as well as the non-interference principle they have adopted in integration mechanisms have
prevented them from achieving the targeted goal of poverty reduction and human security
promotion. This paper argues that in the face of new threats such as climate change,
infectious diseases, and food crisis, South Asian nations need to develop an integration
strategy that is in line with East Asian as well as global strategies and that such strategies
and initiatives will create opportunities for greater “Asian Integration” and for the buildingof an “Asian Community,” which is free from the curse of poverty and other sources ofhuman insecurity.

1Introduction
In the 21st century, it is clear that many problems concerning human survival and national
development require state-to-state cooperation at the regional level and, thus, regional
integration functions as an appropriate organizing unit for international cooperation. In
other words, regionalism can be seen as playing an intermediary role between narrowly
defined nationalism and overly broad globalism. From an economic perspective, somewriters refer to attempts to use regionalism as a mechanism to build new institutions, whichtranscend the nation-state in economic contexts, as a “strategy of size” built around thenotions of economic power and economies of scale.i
Alongside the globalization process, countries around the world are increasing their regional
economic links through Regional Trade Agreements (RTAs), Regional Free Trade Areas(FTAs), etc. Successful regional integration is more evident in the economic realm than in
any other sector. With increasing globalization, however, countries are becoming more andmore interrelated in social issues in addition to economic matters. Success in solving
cross-broader problems and sharing of public goods requires greater integration among
countries geographically located in close proximity. Especially in fighting issues related tocommon threats such as poverty and human insecurity do the nations concerned require
increasing integration on a regional level. As a result, regional integration has become an
important issue of concern not only to economists but also to policy makers, politicians, andother social scientists.
Integration can bring more success to developing andunderdeveloped countries because they can combine their efforts at the regional level and also
exercise an increased bargaining power in the international arena.
Based on the above considerations, this paper will assess the problems and prospects ofregional integration strategies to fight poverty and human insecurity in South Asia. It will
analyze how South Asian developing countries are pursuing combined economic, social, andpolicy measures to attain their common goal of a poverty-free and peaceful South Asia. The
paper will also examine how these South Asian efforts are contributing to the enhancement ofopportunities for broader Asian integration. The main research questions to be addressedare:
1. What are the general trends in poverty & human security in South Asia?
2. What are the various regional integration mechanisms the regional countries are
pursuing to address poverty and human insecurities in South Asia?
3. What are the problems and prospects of South Asian countries’ integration with East
Asia and broader Asian integration?
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The discussion is divided into three main parts. The first part will explain the main
terminology used in this study and then offers a description of the background of South Asia
in terms of its diversities and similarities. The second part will discuss trends in and sourcesof poverty and human insecurity in South Asia. This is followed in the third part by ananalysis of regional economic and social approaches in the region. The fourth, and the final
part will discuss the possibility of increasing integration between South Asia and East Asia tocontribute to the broader regional integration of Asia as a whole.

Definitions of Main Terms
Regional Integration and Regionalism
The terms “regionalism” and “regional integration” can be viewed from a multi-dimensional
point of view. Even a cursory examination of relevant social science literature reveals
multiple definitions of “regionalism”. Regionalism can be seen to satisfy a wide range ofsocial, economic, environmental and geopolitical functions.
Regionalism has often been taken to be synonymous with economic regionalism.ii Much of
the early regionalism debate, in particular, appears to have been predicated on the belief thatthe economic dimension of regionalism is pre-eminent. Second, this privileging of theeconomic aspect was taken to be non-controversial and was in turn linked to the view that
regionalism was uni-dimensional. However, it is clear that there are a wide variety ofperspectives on regionalism and that the concept cannot be conceptualized in economic terms
alone. Alagappa writes, “Regionalism may be defined as sustained cooperation, formal orinformal, among governments, nongovernment organizations or the private sector in three ormore contiguous countries for mutual gain.”iii According to this definition, the ultimate goalof regionalism or regional integration is the creation of a win-win situation where various
actors concerned will cooperate with each other either politically or non-politically.
Most definitions of “regional integration” put it as a process where political forces play the
major role to pave way for cooperation among various public and private entities. For
example, Katzenstein states, “Regionalism refers to the political structures that both reflectand shape the strategies of governments, business corporations, and a variety of
non-governmental organizations and social movements.”iv

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Although the definition of “regionalism” and “regional integration” may vary greatly, thisauthor adopts a broad definition to include both economic and non-economic dimensions. It
is also accepted that the ultimate goal of participants in regionalism and regional integration isto achieve mutual gains.
Human Security
The definition of “human security” is also a subject of debate. The 1994 Human
Development Report of the UNDP is the first to make a specific claim that an individual
should be the referent of security instead of the state, since the state has become lessvulnerable to security threats while individual citizens suffer insecurity, even by their own
state. The UNDP report proposes human security in terms of safeguards against “the threatof global poverty traveling across international borders in the form of drugs, HIV/AIDS,
climate change, illegal migration, and terrorism.”v The concept of human security, as UNDP
defines it, is built on four essential characteristics: universalism, interdependence ofcomponents, prevention rather than protection, and people centered.
The UNDP report identifies seven potential sources of threats that include most, but notnecessarily all aspects of human security: economic security, food security, health security,environmental security, personal security, communal security, and political security.vi The
central argument of the report is that the root causes of threats to human security lie in the
structural contexts of societies that provoke conflict, such as poverty, resource scarcity, lowlevel of economic growth, inequitable development, and the impact of structural adjustment.vii
The basic difference between traditional security and human security is that the latter covers awider range of variables, and strategies to address them require multiple players. In manycases joint efforts at the regional level are required to address the many problems thattranscend national boundaries.
In this context, therefore, regional integration and cooperation have an important role to play
to enhance human security by pursuing strategies that address the cause and sources of humaninsecurity. In South Asia, regional cooperation is playing an important role and its scope canbe even made even wider in order to secure the lives and livelihoods of about one-fifth of theworld’s people who live in this region.

Poverty and Human Insecurities in South Asia: Sources and Trends

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The South Asian region, including Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan,and Sri Lanka, is notable for its rapidly growing population, which already represents morethan one-fifth of the world’s total population. Despite the rapid economic growth of thenations of the region during the 1990s, they have some of the lowest per capita incomes in theworld. With more than 22 per cent of the world's population living on only 3.8 per cent of
the total land area of the world, South Asia is home to more than half a billion poor people, or
40 per cent of world's poor.viii The region’s shares of the world’s GNP and purchasing
power are very small (around 2 per cent and 7 per cent, respectively). Its share in total world
trade is even smaller, only about one percent.ix Recently South Asia has been the second
fastest growing region in the world. From 1981 and 2001 there was a marked improvement:
the proportion of the extreme poor down from 52 percent to 31 percent. Although thisimprovement was not as dramatic as in East Asia, where the proportion of the extreme poor
plummeted from 58 percent to 15 percent, it was nevertheless a significant achievement forSouth Asia.x
There are more than one billion people living in South Asia today. The annual per capita
expenditure on the human priority areas of basic education, primary health care, familyplanning, safe drinking water, and nutritional programs is just $3 in Pakistan and $2 in
Bangladesh. To put this in perspective, comparable figures are $123 for Malaysia and $133
for Korea.xi South Asia's share in global income is only 2 percent. However, it imports 20
percent of globally traded arms. In Pakistan, soldiers outnumber doctors by 10 to 1.xii
The concept of human security has acquired increasing centrality and urgency for South
Asia.xiii The combination of continuing political tensions between the two nuclear powers of
the region, the recent food crisis, and growing environmental disasters due to climate change
has raised the need to look deeply into this concept in relation to South Asia’s socio-economic
needs and political developments.
Again various national, regional, and international measures and strategies should be taken totransform changes in the economic arena into the social life of the people of South Asia. In
the 21st century, South Asia is in a period of transition as it strives to develop effective
economic, political, social, and legal structures to support sustained growth. Theinternational donor community has prescribed such measures as cuts in subsidies (especiallyenergy subsidies), deregulation, anti-poverty efforts, and increased privatization in may South
Asian countries to address the crippling poverty and multi-dimensional causes of humansecurities in the region. At the same time, the countries are taking various public and private
economic, social, and political measures at the regional level to address these issues.
5Regional Integration Strategies to Address Poverty and Human Insecurity in South Asia
The idea of regional cooperation in South Asia was first discussed at the three conferences in
the late 1940s and early 1950s: the Asian Relations Conference in New Delhi in April, 1947;
the Baguio Conference in the Philippines in May, 1950; and the Colombo Powers Conferencein April, 1954. However, the idea did not take root with the leadership of the region until
President Zia-ur-Rehman of Bangladesh shared his “Working Paper on Regional Cooperation
in South Asia” with the heads of states of the other South Asian countries in November, 1980.
Several factors contributed to the success of President Zia ur-Rehman’s initiative.xiv
Most of the earlier regional integration strategies were mainly focused on economic
integration, as it was believed that economic growth would be the engine of development. It
is increasingly believed that the regional economic integration can be instrumental forinvestment and thereby economic growth for the member countries. However, with
globalization sweeping the world, increased inequalities within and among countries in theregion, competition for global public goods (GPGs), cross-border threats like contagious
diseases, natural calamities, and border disputes have emerged as major issues for cooperation
among South Asian countries. As a result, social issues have become very important factors
affecting even economic cooperation. Earlier economics-focused regional cooperation
issues have taken on a multi-dimensional character, with issues related to poverty and humaninsecurities receiving increasingly high priority. In this author’s opinion, what is required
are comprehensive and integrated approaches and programs that address issues of thedomestic and external sectors so as to reap the fruits of regionalization.
Regional Economic Cooperation in South Asia to Fight Poverty and Human Insecurity
Institutionalized regional economic cooperation in South Asia started mainly with theestablishment of the South Asian Association for Regional Cooperation (SAARC) in 1985.
Since then regional cooperation has grown and expanded especially in preferential trade areas(PTAs), free trade areas (FTAs), and other integrative economic mechanisms. However,with time SAARC needs to adopt strategies of regional cooperation that address social issues.
In spite of the emergence of a number of regional institutions, SAARC remains the main
institution for addressing issues related to economic and social insecurities in South Asia.
South Asian Association for Regional Cooperation
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The establishment of SAARC was intended to bring stability to South Asia by enhancing
regional cooperation. SAARC was the first formal initiative that sought to bring thecountries of South Asia to the same platform with the aim of promoting the welfare andquality of life of its people through accelerated economic growth, social progress, and culturaldevelopment in the region. In addition, SAARC aims to strengthen cooperation of member
countries with other developing countries, to strengthen cooperation among the member
countries in international forums on matters of common interests and to cooperate withinternational and regional organizations with similar aims and purposes.xv In addition to theoriginal seven member countries, Afghanistan joined SAARC as the newest member during
the fourteenth summit held in New Delhi in 2007. The past two decades have witnessed thegrowth of SAARC into a fraternity that promotes joint ventures and collaboration.
The objectives of SAARC as stated in the SAARC Charter are as follows:·

To promote the welfare of the peoples of South Asia and to improve their quality of
life.

·

To accelerate economic growth, social progress, and cultural development in theregion and to provide all individuals the opportunity to live in dignity and to realize
their full potential.

··

To promote and strengthen collective self-reliance among the countries of South Asia.
To contribute to mutual trust, understanding and appreciation of one another's
problems.

·

To promote active collaboration and mutual assistance in the economic, social,
cultural, technical, and scientific fields.

·

To strengthen cooperation among themselves in international forums on matters ofcommon interests.

·

To cooperate with international and regional organizations with similar aims andpurposes.xvi

At the inception of the Association, the original members agreed on an Integrated Program of
Action (IPA) consisting of a number of Technical Committees (TCs) as the core areas ofcooperation. Through the Technical Committees, the Association promotes regional
cooperation in several areas: agriculture and rural development; health and population;
women, youth and children; environment and forestry; science, technology and meteorology;
human resources development; and transport. In recent years, high-level Working Groups
have also been established to strengthen cooperation in the areas of information andcommunications technology, biotechnology, intellectual property rights, tourism, and7

energy.xvii
The SAARC Charter promotes active collaboration and mutual assistance in the economic,
social, cultural, technical, and scientific fields, but the main thrust of regional efforts has been
directed towards economic integration. South Asian leaders agree that opening theireconomies to international trade and investment, especially vis-à-vis neighboring countries,
can lay the groundwork for promoting peace, reducing poverty, and addressing humansecurity issues in South Asia.
South Asian Preferential Trade Agreement (SAPTA)
There have been strong arguments for regional economic integration in South Asia togenerate significant interregional trade and welfare gains for the South Asian countries. The
first step in this direction came in 1995, when The South Asia Preferential Trading
Agreement (SAPTA) was signed. SAPTA was a parallel initiative to the multilateral tradeliberalization commitments of SAARC member countries concluded in 2004 with the aim of
reducing tariffs for trade among the SAARC members.
SAPTA included several provisions giving a special treatment to Least Developed Countries(LDCs). For instance, support to LDCs involved the identification, preparation, andestablishment of industrial and agricultural projects in their territories, which could provide
the production base for exports to other contracting states. SAPTA also contained
anti-dumping clauses that suspended concessions to the perpetrators of dumping. The intent
behind such measures was to ensure fair trade for all member states and to eliminate potential
conflicts/tensions between member states based on skewed economic power relations.
Despite the inclusion of these measures SAPTA proved to be structurally weak in addressing
trade-related disputes. The more powerful member states would not agree to embed
rules-based institutional and legal mechanisms for dispute settlement. So, in addition to
SAPTA, SARRC initiated other economic cooperation mechanisms in the South Asian
region.
South Asian Free Trade Area (SAFTA)SAFTA came into force on January 1 2006, and is the most comprehensive mechanism thatstrives towards intra-SAARC economic cooperation. In contrast to SAPTA, SAFTA has awell-defined approach to trade liberalization. It specifies time-staggered tariff reductions for8each member country. Thus, India and Pakistan, the two main economic powers of thisregion are mandated to reduce tariffs to 20 percent of the 2006 levels within two years
effective January 2006. Subsequently, from 2008 to 2013, their tariff rates are to comedown to 0-5 percent. For LDC members, the tariff reduction schedule is more flexible.xviii
Additionally, SAFTA addresses a broader range of trade related issues than SAPTA,
including the harmonization of standards and certification, customs clearance procedures andclassification, transit and transport facilitation, rules for fair competition and foreign exchange
liberalization. SAFTA’s dispute settlement mechanism is substantively similar to SAPTA; if
anything, there are more tiers of consultations, involving a Committee of Experts (COE) andthe SAFTA Ministerial Council (SMC). However, much as in the case of SAPTA, no
institutional or legal mechanisms for dispute settlement exist and both the COE and the SMC
will continue to devise procedures on a case-by-case basis.
SAARC FINANCE
The 24th Session of the SAARC Council of Ministers was held in Islamabad on January 2-3,
2004 and recommended the establishment of SAARC FINANCE to examine the concept of aSouth Asian Development Bank (SADB) and to study and make recommendations on earlyand eventual realization of a South Asian Economic Union (SAEU).xix The basic objectiveof establishing the SAARC FINANCE Network is to share experiences on macro-economic
policy issues among the member countries. Other broad objectives include: promotion ofregional cooperation among central banks, harmonization of banking legislation and practices
within the region, forging of closer cooperation on macro-economic policies of SAARC
member countries, and the sharing of experiences and ideas.

South Asian Regional Initiatives to Fight Poverty
Poverty alleviation has been an overarching goal for SAARC. Ironically, South Asia ishome to almost half of the world's poor. Global economic slowdown, soaring oil and foodprices, and growing threats of climate change are driving the destitute people of the region
even further below the poverty line. Recognizing that the problem of poverty in South Asia
needs to be tackled from a multi-dimensional perspective and agreeing that a focused andaction-oriented plan is the need of the hour, South Asian regions have taken various public
and private initiatives to fight poverty.

9As a first major step, the SAARC Leaders in 1991 established an Independent South AsianCommission on Poverty Alleviation (ISACPA). Based on the Commission`s conceptual“framework for poverty alleviation through social mobilization and empowerment in SouthAsia,” SAARC countries expressed their commitment to eradicate poverty through an agendaof action including, inter alia, a strategy of social mobilization and a policy of decentralized
agricultural development, village reawakening, small-scale labor-intensive industrializationand human development. They also stressed that within the conceptual approach "Dhal-Bhaat(Beans-Rice),”xx the right to work and primary education should receive priority.xxi As aprocedure they established a three-tier mechanism for dealing with poverty issues. The firsttier comprises the Secretaries to the governments concerned with poverty eradication andsocial development in SAARC countries. The second tier is composed of Finance/Planning
Secretaries and the third tier includes Finance/Planning Ministers.
Again, noting that human resources development is a key element in any poverty eradication
program they directed the SAARC Human Resources Development Centre to look into thepossibility of its contributing to the strengthening of the human resources development
component of regional poverty eradication programs.
But, as widespread and debilitating poverty continued to be the most formidable
developmental challenge for the region, SAARC leaders reviewed activities aimed at poverty
alleviation and decided to reinvigorate them in the context of regional and global
commitments. They expressed their firm commitment to combat the problem of poverty
with a new sense of urgency by actively promoting the synergetic partnership among national
governments, international agencies, the private sector, and the civil society. They also
agreed to take immediate steps for the effective implementation of the programs for social
mobilization and decentralization.
Accordingly, the reconstituted ISACPA submitted its report “Our Future, Our
Responsibility,” taking poverty alleviation as the overarching goal of all SAARC activities.
ISACPA identified 22 regional goals as the SAARC Development Goals (SDGs) andprepared a comprehensive and realistic blueprint for the next five years in the areas of poverty
alleviation, education, health, and environment. The Twenty-sixth Session of the Council of
Ministers in Dhaka on November 11, 2005, advised that the Commission further recommendthat ISACPA might continue its advisory and advocacy roles and advised that theCommission further elaborate the SDGs.

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To ensure funding to implement SDGs in 2007 a SAARC Development Fund (SDF) wasestablished. The SDF was created as the SAARC members pledged to support projects toalleviate poverty and improve the status of life in the region. The SDF has beenreconstituted with a permanent secretariat and three windows -- social, economic, andinfrastructure. The social window, with an initial $300 million fund, is expected to fund,among other things, poverty alleviation programs and projects.xxii
Thus, by all these regional mechanisms, the SAARC countries are united in theirdetermination to reduce poverty, drawing upon the experience of the member countries andcommitted to achieve the Millennium Development Goals (MDGs).
SAARC Food BankThe establishment of the SAARC Food Bank in 2007 was an extremely forward-looking
decision to address the food crisis in South Asia in an integrated way. The food bankwould store more than 250,000 metric tons of food grains and act as a regional food security
reserve for the SAARC member countries during normal time food shortages andemergencies, provide regional support to national food security efforts, foster inter-country
partnerships and regional integration, and solve regional food shortages through collective
action.xxiii For using the food from the SAARC Food Bank, the member countries will nothave to pay anything. The country taking food loon from Food Bank will have to just returnthe food to the storage after the crisis is over. With the a food bank set up in the region, it isexpected to increase food production, encourage investment in agriculture and agro-basedindustries, agricultural research and prevention of soil health degradation, development andsharing of agriculture technologies, and management of climatic and disease-related risks inagriculture.xxiv
SAARC Regional Initiatives to Address Climate Change
In the concluding Declaration of the Fifteenth SAARC Summit in 2008, entitled “Partnershipfor Growth for Our People,” the heads of state and government reiterated the need forincreased regional cooperation in tackling climate change; in particular for capacity building,the development of Clean Development Mechanism (CDM) projects, and awareness. xxv
Noting the impact of climate change on livelihoods of people living in South Asia, SAARC
leaders stressed the urgency to take action jointly and manage its risks and impacts, and called
for a study on the human dimension of climate change. As an equitable basis for tacklingclimate change, they endorsed per capita emissions targets for developing and developed11countries, taking into account historical responsibility and country capabilities. In the Dhaka
Declaration on Climate Change of July 1-2, 2008, SAARC members committed themselves topromote programs for advocacy and awareness of climate change and to inculcate habits
towards a low-carbon society, including incorporation of science-based educational material
in educational curricula. The action plan, covering the years 2009-2011, focuses on seventhematic areas, ranging from adaptation of climate change to regional stance for international
negotiations. It emphasizes policies and action for climate change mitigation, technology
transfer, financing and investment mechanism, education, training, and awareness, monitoring,assessment and management of impact and risks due to climate change.
In the area of energy, the heads of state and government recognized the need to: develop andconserve conventional sources of energy; build up renewable energy resources; and introduce
energy reforms, energy efficiency and the trade and sharing of technology. They also noted
current efforts to strengthen regional cooperation in this sector.

Peace and Regional Integration in South Asia: An Analysis
The Indo-Pakistan tensions have put a damper on any kind of activities to increase the pace ofeconomic and social integration and bring about peace in the South Asia region. The"composite dialogue" between India and Pakistan over the past years led to the opening of bus
and railway services, and there was dialogue over strategic issues on Siachen, Sir Creek, andthe future of divided Kashmir, which were considered key areas of cooperation more openly
than before.
History shows that regional economic and social integration strategies can be successful only
if the countries concerned establish a commonality of political purpose. France andGermany who fought three wars between 1871 and 1945 were able to thaw differences
through EEC. The Cold War gave Western European nations another urgent reason to work
together economically to gain strategic strength. The same pattern is evident in ASEAN,
which was formed as a political grouping to oppose the threat of Communist expansion from
Vietnam and China. It is common in international relations that a small nation has to live infear when its large neighbor has and “expansionist” policy, or if there are unresolved andcomplicating factors in their relations. This is particularly true in the case of South Asia as
India continuously showed intentions of hegemony towards her small neighbors rather thanbeing regarded as a “Big Brother.” Bhutan and Nepal are continuously living under thisthreat of becoming the next Sikkim.xxvi To create a sense of ease in the region, the former
12Indian Prime Minister I.K. Gujral adopted a doctrine called “Gujral Doctrine”xxvii as a tool ofconflict management in the region.xxviii
In spite of the various regional mechanisms developed in recent years, still there are many
issues and disputes among the states in South Asia. As a result, there is growing concernthat regionalism in South Asia might end up as a Pandora’s box if concerned efforts are notmade beyond the turmoil of political exigencies. It is felt that unless countries of this region
enjoy considerable political harmony, they cannot possibly agree on concessions that would
require surrendering sovereignty over their economic and social policies. This is particularly
true in South Asia where the Indian economy dominates regional outcomes.xxix Althougheconomic cooperation and even integration is very desirable in South Asia, there is a call for
creating a politically harmonious subcontinent, which is an extremely formidable task.
There have been many important changes since 2006 and South Asia has begun to think inambitious terms about itself as a region. The proposal to set up a South Asian University,
which would require at least $1 billion, is the best example.xxx The business community isthinking even further ahead of the governments in the region. In anticipation of SAFTA, theTATA group of India has already proposed a $3 billion investment in Bangladesh ingas-based fertilizer, power, and steel plants. The reconstituted Independent South Asia
Commission on Poverty Alleviation (ISCAPA) has adopted a more reasonable approach bysuggesting a 24-point approach for halving poverty in South Asia by 2010, as opposed to
MDG of the UNDP that requires South Asia to do so by 2015.xxxi After years of discussion,
and, to some extent, a large degree of negligence, the South Asian Development Fund is also
making some headway, with assets amounting to around $300,000,000.xxxii South Asia
receives around $32 billion annually in remittances, by exporting labor to the Gulf region andEast and Southeast Asian countries.xxxiii In Pakistan, remittances increased fourfold fromjust over $1 billion in 2001 to over $4 billion in 2003; in Bangladesh, from $1.9 billion to$3.3 billion; and in India, from $12 billion to $21.7 billion. Nepal received $1.5 billion inremittances in 2003. xxxiv On June 12, 2008 the India-Bangladesh railway service wasrestored, though bus services had existed between the countries since 1996. Thus, in spite ofmulti-dimensional problems and conflicts related to mutual interests, South Asian countries
are cooperating with each other through various integration mechanisms to promote peace andprosperity.
Problems and Prospects of South Asian, East Asian, and Asian Integration
As part of its initiative to liberalize trade, investment, and capital flows, South Asia is
gradually forging closer ties both with its immediate neighbors and with East and Central
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Asian countries.xxxv The rapid growth of large emerging market economies such as thePeople’s Republic of China (PRC) and India has brought the South Asia and East Asian
economies ever closer together.
East Asia has made the most progress in pursuing regional economic cooperation andintegration. Regional integration in the form of economic cooperation and political harmony
are mutually reinforcing. ASEAN+3, APEC, and ASEM have led to improved relations
between East Asian countries. Without regionalism and inter-regionalism, Japan’s relations
with its neighbors would have been even more problematic, and regional as well asinter-regional forums have provided the framework for direct contacts between Japaneseministers and their Chinese and South Korean counterparts, which would not have beenpossible on the bilateral level.xxxvi The success of the EU has demonstrated that regionalism,
even on such a wide scale, can be instrumental in overcoming historical animosities,
embedding democracy and the rule of law, thus guaranteeing regional security and leading tooverall stability. Economic integration has come to be regarded as an important tool for
diplomacy and conflict mitigation.
In comparison to East Asia, regional integration initiatives in other parts of Asia are lesscomprehensive. Today, however, countries in those areas are poised to accelerate the paceof integration. In particular, the recent economic growth in South Asia has facilitated thedevelopment of various strategies to integrate South Asia with East Asia, which promises topromote overall Asian integration.
SAARC has welcomed Afghanistan as its eighth member. In addition, China, Japan, South
Korea, Myanmar, the European Union, the United States, Iran, and Mauritius have been given
observer status. This expansion of SAARC from an intra-regional organization to aninter-regional organization and the growing external linkages are indicative of the high levelof maturity that SAARC has achieved as an organization. This cannot but enhance greater
Asian integration, especially bridging the regional cooperation gap with the East Asian
countries, which are playing a very important role to address the issue of poverty and humaninsecurity in South Asia. Again, such integrating and merging of smaller regional
cooperation organizations within Asia will be helpful to reduce regional gaps in different
economic and social aspects and will ultimately pave the way toward the creation of an“Asian Community” to mainstream Asian integration. Such efforts of mutual cooperation
will be favorable for Asia’s growth and economic leadership on the global level, enhancing
the region’s bargaining power in the international arena.

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As an initiative to mainstream South Asian integration with East Asia and beyond,international players can increase and contribute to peaceful relations within South Asia by
mitigating the impacts that economic globalization will have on the region’s marginalized
communities that reside in conflict-prone areas. The international community can remedy
market failures; it would be naïve to recommend a succinct list of initiatives that would have,with some certitude, a positive impact on mitigating conflict within South Asia. Rather, theinternational community should continue to engage with all stakeholders in South Asia in amanner that elevates development to include not just economic needs but also social, cultural,and religious values intrinsic to the region.

Conclusion
At SAARC’s inception, South Asian leaders realized that political relations surrounding
regional integration could stall regional economic cooperation. Consequently, bilateralissues were kept out of SAARC’s purview to prevent political tensions between member
states from stalling the integration initiative. Today, however, the absence of any suchnon-interference mechanism on bilateral issues has become a major concern for effective
regional integration initiative in South Asia. Realizing the negative impact of politicaltensions on trade arrangements in the region, some analysts have called for a regional
institutional mechanism to contain conflict among members. Others have even suggested
the need to amend the SAARC Charter to allow the group to deliberate upon bilateral issues.
As early as 1990, Ariyasinghe had proposed a “strategic regional security framework”
designed to ensure regional security in South Asia. No progress has been made on this front,
and realistically such a development is not plausible any time soon. Member states,
particularly Pakistan and India, must find means outside of the SAARC arrangement toresolve their bilateral differences.
While lessons from the EU and ASEAN prove the benefits of regional integration, there is
still a need to shape institutions that, as commentators indicate, are asked to compete and yetcooperate in the neo-liberal political economy. Durable peace must therefore include theresolution of domestic and long-standing differences. Growth of economic integration will
depend on how individual nations deal with contentious issues and whether they remaincommitted to regional cooperation. Peace also needs to include the resolution of the
Kashmir issue, border problems, and distribution of natural resources and effective
management, if not total elimination, of the corrosive politics that divide Hindus, Muslims,
Sikhs, Buddhists, and other religious minorities.
15

Beneath the political colorations of South Asia reside the socio economic aspirations of its
middle class. Some argue that in order for the region to prosper, a new idea of South Asia
will have to emerge, and the primary driver will have to be the aspirations of the middle classfor something more than private affluence in the midst of public squalor. Hence, social
capital building that challenges all of the region’s societies and effective collective action
within and then across the societies will be the test of whether or not this society emerges.xxxvii
Other informal political dialogues need to include citizen to citizen contact, which addresses
displaced persons following partition of East Bangladesh and West Bengal, the Two Punjabs,
and the social and religious values of being able to visit one’s homeland, place of birth andancestral grave sites. Education and cultural exchange should include students, writers,
intellectuals and artists to be able to mix and exchange ideas on a new South Asia.
Though there are many hopes for success of economic and social integration strategies within
and beyond South Asia, still there are disputed issues that need to be addressed properly.
Specifically, regional mechanisms must be strengthened to address issues like geopoliticaldisputes, climate change, contiguous diseases (SARS, bird flu, HIV/AIDS, etc.), and foodshortage to name a few. At the same time initiatives must be taken to extend integration
initiatives starting from the continental level, specifically inclusion with the East Asian region,
which is playing an important role in the economic and social development of South Asia. At
the same time strategies and policies to fight poverty and human insecurities in South Asia
must be in line with global targets and strategies so that it will be easier to monitor andevaluate on both with regional and global levels at the same time. With emergence ofincreasing regional and global integration strategies it must be remembered that it is the South
Asian region whose strategies should come first to address issues of poverty and humaninsecurities. Extending regional integration in East Asian and global level will enhance South
Asia’s initiatives and commitment to fight against poverty and human insecurities. Initial
measures should be taken to integrate South Asia with East Asia. By such initiative both will
be mutually more benefited due to their regional as well as cultural closeness. The combined
effort of these two regions of Asia will promote Asian integration with the aim of creating an`Asian Community`, free from the curse of poverty and other sources of human insecurity.

Notes
i

R.P. Palan, J.P. Abbott, and P. Deans, State Strategies in the Global Economy, London:
Pinter, 1999.
16

ii

J. Ravenhill, “Competing logics of regionalism in the Asia-Pacific,” Journal of European
Integration, Vol. 28, Nos. 2−3 (1995), pp. 179−199.
iii
M. Alagappa, “Regionalism and Conflict Management: A Framework for Analysis,”
Review of International Studies, Vol. 21 (1994), pp. 359−387.
iv
P.J. Katzenstein, “Regionalism and Asia,” New Political Economy, Vol. 5, No. (2000), pp.
353−368.
v
United Nations Development Program, Human Development Report 1994, New York andOxford: Oxford University Press, 1994.
vi
Ibid., pp. 25-33.
vii
Y.F. Kongand S.N. MacFarlane, Human Security and the UN: A Critical History, Indiana
University Press, 2006.
viii
IMF, The World Economic Outlook 2005, International Monetary Fund, Washington,
D.C., April 2005, Table 1.7, p. 33.
ix
J.S. Bandara and M. McGillivray, ‘Trade Liberalizations in South Asia’, The World
Economy, Vol. 21, No. 7 (1998), pp.881-96; A. Panagariya, “Trade Liberalization in SouthAsia: Recent Liberalisation and Future Agenda,” The World Economy, Vol.22, No. 3(1999), pp.353-378.
x
Sridhar K. Khatri, “The Third Decade of SAARC,” Forum, A monthly publication of the
Daily Star, Vol.2, No.4 (May 2007), http://thedailystar.net/forum/2007/may/saarc.htm(accessed September 15, 2008).
xi“HumanDevelopment
inPakistan,”
Human
Development
Foundation,
http://www.yespakistan.com/hdf/whywedoit/hdinsa.asp (accessed September 15, 2008).
xii
Ibid.
xiii
“Human Development in South Asia 2005: Human Security in South Asia,” The Mahbub
ul Haq Human Development Foundation, Oxford University Press, UK, 2006, p. 7,
http://www.mhhdc.org/html/ahdr.htm (accessed September 16, 2008).
xiv
IISD, Regional Integration, Trade and Conflict in South Asia, International Institute for
Sustainable
development,
Winnipeg,
Canada,
2007,
p.
16.
http://www.iisd.org/pdf/2007/tas_rta_south_asia.pdf (accessed September 16, 2008).
xv
SAARC Secretariat, http://www.saarc-sec.org/main.php (accessed September, 18, 2008).
xvi
SAARC Secretariat, “SAARC-A Profile, Kathmandu, July 2003,” pp. 2-3.
http://www.saarc-sec.org/main.php (accessed September, 18, 2008).
xvii“SAARC
SocialCharter,
Sri
Lanka
ActionPlan
2008-2015,”
http://www.slmfa.gov.lk/saarc/images/stories/saarc/Sri_Lanka_Action_Plan.pdf (accessed
September10, 2008).
xviii
SAARC Secretariat, http://www.saarc-sec.org/main.php?id=12&t=2.1 (accessed
September 15, 2008).
xix
Hem
PrasadNeupane,“SAPTA,
SAFTA
andBeyond,”http://mpra.ub.uni-muenchen.de/3871/1/MPRA_paper_3871.pdf (accessed September 15,2008).
xx
A program taken to ensure the minimum food requirement of providing rice and beans for
all citizens of South Asia.
xxi
SAARC Documentation Center, India, http://www.sdc.gov.in/AboutSAARC/poverty.htm
17

(accessed September 15, 2008).
SAARC, 2004, “SAARC Plan of Action for Poverty Alleviation, Kathmandu Nepal.”
xxiii
SAARC Secretariat, http://www.saarc-sec.org/main.php?t=2.13.2 (accessed September 15,2008).
xxiv
The
Bhutanese
prime
minister,
Lyonchhen
JigmiY
Thinley,
http://www.kuenselonline.com/modules.php?name=News&file=article&sid=10940(accessed September 15, 2008).
xxv(accessed
Climate-L.Org,
http://www.climate-l.org/2008/08/fifteenth-saarc.html
September 15, 2008).
xxvi
Sikkim used to be a small state in the northeastern part of India but was ceded into India
by force.
xxvii
The Gujral Doctrine is a set of five principles to guide the conduct of foreign relations
with India’s immediate neighbors. These principles are: first, with neighbors like
Bangladesh, Bhutan, Maldives, Nepal, and Sri Lanka, India does not ask for reciprocity,
but gives and accommodates what it can in good faith and trust; second, no South Asian
country should allow its territory to be used against the interest of another country of theregion; third, no country should interfere in the internal affairs of another; fourth, allSouth Asian countries must respect each other’s territorial integrity and sovereignty; and,
finally, they should settle all their disputes through peaceful bilateral negotiations.
xxviii
Padma Murthy, “The Gujral Doctrine and Beyond,” Strategic Analysis, Journal of the
IDSA, Vol. 23, No. 4 (July 1999), pp. 639-652.
xxix
Ghanshyam N. Singh, ed., The Economy of the SAARC Nations, New Delhi: Anmol
Publications, 1993.
xxx
Khatri.
xxxi
Ibid.
xxxii
Ibid.
xxxiiiWorld Bank, Global Economic Prospects: Economic Implications of Remittances andMigration 2006, Washington, DC: The World Bank Group, 2006, p. 25-48.
xxxiv
Ibid.
xxxv
Asian Development Bank, Asian Development Outlook: 2005: Promoting Competition forLong-term Development, Manila: Asian Development Bank, 2005, p. 5.
xxxvi
Michael Reiterer, Inter-regionalism: A New Diplomatic Tool, the European Experience
with
East
Asia,
http://wwwsoc.nii.ac.jp/eusa-japan/download/eusa_ap/paper_MichaelReiterer.pdf,(accessed September 20, 2008).
xxxviiN. Singh, The Idea of South Asia and the Role of the Middle Class, New Delhi, National
Institute of Public Finance and Policy, 2005.
xxii

Acknowledgement
An earlier version of this paper was first presented at the Summer Institute on Asian Regional
Integration, organized by Global Institute for Asian Regional Integration (GIARI), Waseda
18

University 21st Century Global Center of Excellence (COE) Program in August 2008. The
author would like to thank the organizer for its financial and logistical support for his
participation in the program. Thanks also go to Prof. Yasushi Katsuma for reviewing an
earlier version of this paper and for his support and guidance in the author’s ongoing research.
Special thanks go to Prof. Tsuneo Akaha and Prof. Hatsue Shinohara for their comments andsuggestions during the presentation. I also thank my friend Jordan Nogaki for his help withthe proof reading of an earlier version.

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