market to exploit which is several times the size of any regional block, enlarge the market access substantially and permit wider competition, larger scale of operation and greater specialization all of which increase productivity and growth. thus the successful completion of doha development round is very much in the interests of south asian countries but the deferential impact on the various countries in the region has to be handled carefully, imaginatively and expeditiously. short - term adjustment costs to the workers and business have to be absorbed in the long run interest of expansion in those activities in which these countries have dynamic comparative advantage. conclusion south asian countries have undergone remarkable improvement in their economic landscape during the last ten years or so and despite many vicissitudes and shocks have been able to maintain positive growth momentum. the challenges for the coming decade are however, of different nature. while the policy reform and good management of the past will certainly help the internal transformation of these economies the task facing the leaders of these countries are formidable. to maximize the benefits from globalisation and thus help reduce the incidence of poverty the future agenda should focus on good governance and institutional reform, investment in skilled manpower, shift away from low technology exports, aligning with international value chain of production, attracting foreign private capital flows including that from expatiate nationals, promoting intra - regional trade and mitigating political and geopolitical risks.

countries are hesitant to allow mfn status to india. the recourse to a long negative list that restricts the volume of trade should be avoided at all costs. ( g ) • macroeconomic policies such as fiscal and monetary policies should be harmonized to achieve a stable, non - discriminating macroeconomic environment for all the countries in the region • supporting institutions to manage and facilitate integration, for example, setting standards, establishing regional development funds and for dispute resolution should be created. • communication and transport infrastructure between the bordering countries should be improved and upgraded to facilitate increased trade and factor mobility. • legal regulations for investor protection, intellectual property rights enforcement, antitrust law, commercial law, labor relations, financial institutions should be harmonized. • financial markets should be widened and regulatory changes introduced to promote cross - border investment, listings, syndication, bond issues, etc. south asian countries should tap the enormous potential of their large expatriate population in mobilizing investment capital, foreign exchange earnings, skilled manpower and exports of ethnic products and services. india, pakistan, bangladesh and sri lanka together receive about $ 20 billion of remittances from their workers annually but their contribution in domestic capital formation is insignificant. unlike overseas chinese community that has played a substantial role in foreign direct investment, nonresident indians have been a source, to some extent, of professional, technical and managerial skills but not much in terms of large financial outlays. the non - resident deposits transferred to india account for only a miniscule proportion of their wealth holdings abroad. these flows are quite stable in nature and should be able to augment domestic savings for accelerating the pace of investment without creating future debt obligations. innovative products and investment vehicles to attract the savings of nonresident south asians should be encouraged with the help of regulatory agencies. south asian countries have so far missed the boat by not becoming a part of global value chain and participating in international supplier chain arrangements. there is no single business model for participating in this chain and there can be many phases of transition and many modes of involvement. for example, joint ventures, franchising, purchasing by international firms, licensing, sub - contracting, fully owned firm, original equipment, manufacturing, original design and manufacturing, strategic partnerships for technology, overseas acquisition of equity are the diverse means whereby developing country enterprises can gain wide access to international markets at their own level of capability, climb the technology ladder and benefit from globalization. east asia is