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Asia Watch : Free Trade Areas and poverty alleviation

by Lynn Ockersz

While perceptive observers of the current South Asian international political scene could not be faulted for raising the query, "Whither SAARC?" the "BIMTEC-EC process" seems to be developing on a fast track. Once again, the observer is likely to question, will the aims and functions of the latter forum and those of the former, overlap? Wouldn't BIMTEC-EC tend to supplant SAARC?

The poor of Lanka - they could be conscientized

These are legitimate queries which need to be answered by South Asian decision-makers if the future of South Asia needs to be chartered with a greater degree of foresight. On a cursory examination of the aims of SAARC, it could be said that its objectives are broader than those of BIMTEC-EC, but both fora seem to be working towards regional economic self-sufficiency and self-help, through stepped-up inter-State trade in particular. In fact, we are told that BIMTEC-EC seems to be setting its sights on a South Asian Free Trade Area, something which has been aired in South Asian trade circles for quite some time.

While it is encouraging to note that economic issues are continuing to take a top slot in the deliberations of South Asian regional fora, it would be quite futile to debate these issues in isolation from the larger problem of poverty alleviation and the economic empowerment of South Asia's poor. Put simply, while stepped-up trade among regional states could be considered an important tool in the betterment of South Asia's economic prospects, to prove valuable such a path to economic betterment should also show positive results in the poverty alleviation field. In other words, economic growth and poverty alleviation are inseparable and are deeply intertwined.

The reason for organically connecting economic growth and poverty alleviation is because the two processes are not seen to go hand-in-hand in this region at least. The conventional approach to economic development is to presuppose that better economic growth figures necessarily imply a reduction in poverty and better economic prospects for the poor. The widening gap between the "haves and have-nots" in this part of the world, the euphoria surrounding the arrival of globalisation and economic liberalisation notwithstanding, proves clearly the inefficancy of conventional approaches to development, including the well-tried "trickle-down" theory.

Regional organisations, such as the South Asian Perspectives Network Association, headquartered in Colombo which have been for some time advocating an entirely different approach to poverty alleviation, where the poor of South Asia are considered active subjects in the poverty alleviation drive rather than being seen as the problem in the poverty issue, need to be drawn more closely into the policy debate on poverty alleviation. In this change in the methodology in poverty alleviation, advocated by SAPNA, the poor are, essentially, conscientized into being active, creative agents in their deliverance from poverty rather than being made passive recipients of State handouts and other conventional welfarist measures, which have, over time, ensured that the poor only remain mired in deeper poverty.

So, an urgent requirement in the current debate on poverty alleviation in particular and development in general,is a widely inclusive approach where the means would be sincerely and objectively explored to bring the poor themselves into the poverty alleviation drive, as active, creative participants.

We say this, in view of the obvious failure of conventional approaches to development, to narrow the rich-poor gap and to provide the poor with a greater degree of material empowerment.

Stepped-up inter-state trade and even Free Trade Areas are in order but it is relevant to recollect that the aim of "development" is poverty alleviation and economic self-sufficiency, and not impressive, aggregate economic growth statistics.

www.peaceinsrilanka.org

Kapruka

Keellssuper

www.eagle.com.lk

www.helpheroes.lk


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