What SAARC can and cannot do | Business Line http://www.thehindubusinessline.com/opinion/columns/g-parthasarathy/...

What SAARC can and cannot do

G PARTHASARATHY

The difficulty of keeping up appearances The reality shows up differently

India must look beyond Pakistan and improve relations with Nepal, Bhutan, Bangladesh and Sr
Prime Minister Narendra Modi had a full diplomatic calendar in November, participating in
— the East Asia summit in Naypyidaw (Myanmar), the G20 summit in Brisbane and the SAA
Kathmandu. The East Asia summit is integral to India’s economic and strategic agenda acros
casts the Indian strategic imprint across the Asia-Pacific region.
Over the past 15 years, India has concluded a free trade agreement with the ten members of
targeted to reach $100 billion soon. India has also concluded comprehensive economic coop
two major East Asian economic powers, Japan and South Korea. It has actively engaged Aus
Indian and Pacific oceans.
These developments enable India to proactively deal with the assertive role of China in the A
Participation in G20 gives India a role on the high table of global economic decision-making
Where we stand

1 of 3 4/24/2016 6:27 PM
What SAARC can and cannot do | Business Line http://www.thehindubusinessline.com/opinion/columns/g-parthasarathy/...

The three decade long interaction with our South Asian neighbours has little to show by way
thanks primarily to the obstructionist policies of Pakistan. A ‘Group of Eminent Persons’ cra
SAARC in 1998, envisaging the establishment of a South Asian Free Trade Area by 2010, a C
an Economic Union by 2020.
The visionary former Prime Minister Atal Bihari Vajpayee even advocated that the culminati
be the establishment of a SAARC monetary union. The 2002 Saarc summit in Kathmandu lo
effect to the shared aspirations for a more prosperous South Asia, the leaders agreed to the v
planed process eventually leading to a South Asian Economic Union.”
Where exactly do we stand today? After much foot-dragging, SAARC countries have conclud
confined to goods, but excluding all services such as information technology. Even this agree
Pakistan, which has declined to accord India even the WTO mandated ‘most favoured nation
The prospect of a comprehensive economic cooperation agreement like what India has fashi
Asia remains bleak and the vision of an economic union is a constantly receding mirage. Wh
Kathmandu to moving towards building an “economic federation” in 15 years, it is clear that
negativism, the original vision of an economic union has fallen by the wayside.
Thwarted by Pakistan

Pakistan successfully blocked all efforts to promote road and rail connectivity across South A
deny India access to the markets of Afghanistan and Central Asia. Pakistan was prevented fr
summit a disastrous failure. It reluctantly agreed, at the last minute, to promote electrical co
What has been Pakistan’s record on this score? After broadly agreeing to supply electricity to
Minister Nawaz Sharif buckled under army pressure and torpedoed the proposal he had agre
tracts of Pakistan facing crippling electricity shortages, the army has torpedoed several prop
India in negotiations ever since Sharif assumed office. There is little reason to believe that th
Shareef will have a change of heart.
In contrast, the prospects for energy cooperation with our eastern neighbours — Nepal, Bhu
Lanka — are gathering momentum. Distribution networks funded by India and the World Ba
under construction across the India-Nepal Border. With a river basin potential of 83,280 MW
Nepal is slowly shedding earlier inhibitions (some justified) about achieving prosperity throu
like Bhutan has done. Apart from endeavouring to move ahead on major public sector projec
promising movement forward in hydroelectric projects with Indian companies such as GMR
negotiations are only to be expected.
In Bhutan, 10 hydroelectric projects were agreed upon for implementation in 2009. The two
reach a target of 10,000 MW by 2020. Likewise, in Bangladesh, India has commenced suppl
West Bengal, with discussions under way for 200 MW from Tripura.
In Sri Lanka, India has extended credit of $200 million for a 500 MW power plant in the Tam
Province. Discussions are under way for a high voltage undersea cable linking the two countr

2 of 3 4/24/2016 6:27 PM
What SAARC can and cannot do | Business Line http://www.thehindubusinessline.com/opinion/columns/g-parthasarathy/...

Energy from the grid

It is evident that apart from playing spoilsport and embarrassing India, Pakistan will do prec
retard energy cooperation across South Asia.
While work could continue on seeking to develop a South Asian energy grid, India would be
development of a sub-regional eastern energy grid, bringing together Nepal, Bhutan, Bangla
whom are members of BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and E
This grid can, in course of time, be extended to Myanmar and Thailand, given the vast hydro
Arunachal Pradesh.
Moreover, the rail and road connectivity that India envisages to and through Myanmar shou
development of communications with Bhutan, Nepal and Bangladesh. Combined with the de
port in Iran guaranteeing access to Afghanistan and Central Asia, these measures will ensure
India that remains economically disconnected from the rest of South Asia.
The Chinese effort to gatecrash into Saarc as a member, was deftly but firmly thwarted by In
President Xi Jin Ping to the Maldives and Sri Lanka (countries he described as “pearls” in th
China’s growing economic and strategic profile in Nepal, Pakistan, Sri Lanka and Afghanista
India’s land and maritime frontiers, there are now greater concerns about Chinese policies o
Asean members are bitter at the manner in which China, an Asean Dialogue Partner, used it
Cambodia in 2012 to divide Asean and prevent issue of the customary joint communiqué, wh
widespread concern about Chinese policies on the South China Sea.
The Kathmandu summit rightly decided to direct the SAARC programming committee to en
China, the US and others, in “productive, demand driven and objective project-based cooper
identified by the (SAARC) Member States”.
India cannot allow China to become a ‘bull in a China shop’ in SAARC, as it did during the 20
The writer is a former High Commissioner to Pakistan
(This article was published on December 3, 2014)

Printable version | Apr 24, 2016 6:25:35 PM | http://www.thehindubusinessline.com/opinion/columns/g-partha

do/article665

3 of 3 4/24/2016 6:27 PM