The Concept of Cooperation in Relation to Trade and Commerce Among Regions

In the middle of the scheme for regionaleconomic and political conditions for institutionalising
incorporation, the South Asian Association forregional co-operation were missing. Both India and
Regional Co-operation is relatively a new conceptPakistan accepted the proposal for regional
subject to the tremendous reflection ofco-operation only 'in principle'. They could accept a
socio-economic conditions of these regions. Theregional forum only when it did not seek to
framework for the SAARC programme started on inundermine their respective interests. Accordingly, it
the early 1980 was created by the specific economicwas suggested that unanimity in decisions and
and political developments for the preceding years.avoidance of bilateral and contentious issues should
Economically, the failure of the North- Southconstitute the basic norms of the proposed forum.
negotiations in the late seventies induced manyKeeping in mind those diverse attitudes, the seven
developing countries to explore the possible areas ofSouth Asian states (Bangladesh, Bhutan, India,
South-South co-operation. A number of initiatives onMaldives, Nepal, Pakistan and Sri Lanka) formally
regional co-operation were launched at that period.started their co-operation from their first summit held
For example, Economic Community of West Africanon 8th December 1985 in Dhaka. They were aware
States (ECOWAS) in 1975 and Southern Africanthat heterogeneous issues might hinder their
Development Co-ordination Conference (SADCC) inco-operation, but for attaining their respective
1980 were formed. With the collapse of the dreamobjectives they decided to work together. Their
of an equitable global economic order, many statesdesire for economic emancipation, helped them to
turned their attention towards their own region.start rethinking and reassessing their own resources.
Nearly every continent now has some kind ofAlthough the seven South Asian states started their
regional organisation, sometimes more than one.integration, the prospect of SAARC as an effective
SAARC is one of such arrangements. Politically, thebody for regional integration continues to be viewed
bilateral atmosphere between India and some of itswith scepticism. When countries in other regions are
neighbouring countries deteriorated during 1974-76. Astrying to minimise their differences, it is disconcerting
a result, these neighbours started looking for regionalto see that this region (home to half of the world's
and international approaches to pressure India so aspoor) remains trapped in conflict and war, sapping its
to extract accommodation from it on their respectiveenergy and resources that could be diverted to
bilateral issues. Bangladesh's attempt to raise thelaunching an offensive on poverty. In this post-cold
river-water sharing issue at the UN in 1976, Nepal'swar period, and at a time when we are at the
proposal to get itself recognised as a zone of peacethreshold of a new century, South Asia should not be
and Pakistan's active diplomacy at the UN in to getout of peace, harmony and development even for a
South Asia declared as a nuclear-weapon free zonesingle day. Analysis of differences among the SAARC
may be recalled here. Soviet military intervention instates and suggesting solution is thus a very
Afghanistan in 1979 brought about a seriousimportant and timely issue.
deterioration in the South Asian security situation andIn the present paper focus will be placed on the
created an urgency for getting together in the region.heterogeneity among SAARC states and its effect
Although it is true that the external pressures toon the regional integration process in South Asia.
form a South Asian regional organisation were not asThere are of course some strong commonalties
great as it was in the case of the Europeanamong the South Asian states, for example, their
Community or ASEAN, they were not entirely absentcolonial past, a broadly common attitude towards
or insignificant. Internal or external what ever wasWestern countries, common needs development,
the cause the level of urgency for regionalcommon needs to alleviate poverty, some similarity in
co-operation was not equal among the South Asianculture, etc. These similarities could be helpful for the
states.states to minimize their differences. And one most
In May 1980, Bangladesh had mooted the proposalpositive aspect is that the member states of SAARC
for a South Asian regional organisation after soundingare hopeful about their success. In the paper I will
out some small South Asian states. India andalso try to show that, if heterogeneity is greater in
Pakistan, the two big powers in South Asia,South Asia, the regional integration will be less
expressed strong reservations. This hesitancy revealseffective. In case those differences can be
the existence of heterogeneity among the Southminimized, greater integration will be possible.
Asian states. India was highly suspicious of theThe first chapter will give an overview on the general
proposal and viewed it as a new device toissue of regional integration, including some specific
institutionalise the neighbours 'ganging up' against Indiareference to SAARC. The second chapter will focus
to extract concessions on issues affecting each ofon heterogeneity among the SAARC states. The
them individually. Pakistan feared that any Souththird chapter will address heterogeneity in the political
Asian forum would eventually further India's interestsfield and searching for commonality in this area. The
and legitimise its regional dominance in South Asia.fourth chapter will concern heterogeneity and
Also, according to Pakistani view, in South Asiaconvergence in economic areas.