South Asian nations must "root out terror": India
INDIA: South Asian nations must "root out terrorism" to turn
around the fortunes of their underperforming trading bloc, India's prime
minister told the start of a regional conference on Tuesday.
"We should implement in a meaningful and sincere manner the
commitment and pledge made to root out terrorism to create an atmosphere
for our endeavour to succeed," Manmohan Singh told a South Asian
Association of Regional Cooperation (SAARC) summit in the Indian
The time has come for SAARC to work together to realise the vision of
prosperity, cooperation, peace and development, Singh said.
"We should break with the past and join hands to overcome the
challenges," Singh said.
The two-day summit of the SAARC, which groups countries who account
for nearly 1.5 billion people or one-fifth of humanity, is set to be
dominated by security and trade issues.
The organisation has made little progress since its formation in
1985, largely because of tensions between India and Pakistan, which have
fought three wars, two over the disputed Muslim-majority region of
Pakistan Foreign Minister Shaukat Aziz also called for progress at
"Our progress remains short of our aspirations," said Aziz, blaming
violence and conflict management that had "drained our energies."
"We have to make SAARC goal-oriented," he said.
SAARC is made up of Bangladesh, Bhutan, India, the Maldives, Nepal,
Pakistan and Sri Lanka - accounting for half the world's poor.
The summit opened with leaders of the seven countries signing a
declaration that formally brings in Afghanistan as a new member.
Major powers such as China, the European Union, Japan, South Korea
and the United States will be attending as observers.
Iran has also been given preliminary approval to join with observer
status, depite rising tensions between Tehran and the West over its
capture of 15 British naval personnel and widespread concerns over
Iran's refusal to limit its suspect nuclear programme.
Officials say SAARC member states badly needed to overcome mutual
suspicions and work harder if they wanted to inject new momentum into
A South Asian Free Trade Agreement (SAFTA), which came into force
last year and was presented as crucial to boosting living standards, is
yet to be fully implemented due to bickering between India and Pakistan.
Intra-regional trade remains at just five percent of the countries'
Meanwhile The World Bank on Tuesday asked South Asian leaders to
adopt bold reforms in a bid to increase trade and investment, relieve
energy shortages and foster peace in the largely poverty-stricken
The bank said India should set the pace for regional integration by
pushing for a dialogue mechanism to resolve political disputes and
launching programs to remove infrastructure bottlenecks and trade
"This meeting taking place in New Delhi is quite unique and in many
ways presents opportunities that previous summits have not - one is the
fact that India is chairing," said Praful Patel, the Washington-based
World Bank vice-president for the South Asia region.
"There is also a new wind blowing in India - their sights have
shifted from just the local neighborhood, meaning India, to the global
stage and therefore, performance of the region as a subcontinent is
important," he said.
Patel said South Asia, unlike Europe, did not have the luxury of time
for regional integration as it was "the least integrated region in the
"In a fast globalizing world, where the entire globe is in fact
opening up for exports, you cannot really wait because market share lost
once is very hard to get back and you need to really act faster," he
"Intra-regional trade in South Asia can increase to 20 billion
dollars by 2010 if trade barriers are lifted," Patel said.
Benefits from energy trade can also be huge, he said. Nepal has the
potential to produce more than 40,000 megawatts of hydro power, most of
which could be exported to India, generating six to 10 billion dollars
per year of revenues to Nepal, he said.
"The more the public in the region are aware of these forgone
benefits, the more likely they are to demand greater openness," he said.