Economic and political utility of the SAARC Summit to Sri Lanka

Sarath WIJESINGHE

The Colombo SAARC Summit would deliberate on the issue of food security and power and energy. Both these issues are most conspicuous to this developing region since the scarcity of power/energy and food could have a negative impact not only on the economies but on the populace as well.

Key energy issues such as sharing of hydro power and the tri-lateral gas pipeline among Iran-Pakistan-India too would be addressed at the Colombo Summit. Addressing these issues at the Colombo Summit would definitely be of benefit to Sri Lanka.

This year the SAARC Summit is scheduled to be held in Colombo from July 27 to August 3, 2008. This is the 15th SAARC Summit since its formation in 1985. The theme of the SAARC Summit is “SAARC Partnership for People”. The theme of the last year SAARC Summit held in New Delhi was “Connectivity”.

This theme has a close correlation and has a sense of continuity to the previous theme of connectivity. The SAARC Summit in Colombo would enhance the profile and the stature of the country not only regionally but internationally as well. Sri Lanka would be assuming the Chairmanship of the most populated and one of the most endowed regional blocs in the world.

Further, the assumption of the Chairmanship of this regional bloc, i.e., SAARC, would reflect the proactive engagement of Sri Lanka in geopolitical and geo-economics issues in the region, which in turn would transcend to Asia in particular and the rest of the world in general. The Chair of the SAARC would be indisputably one of the highest offices Sri Lanka has held over the years in international forums.

Connectivity

The theme of the Colombo Summit, which is “SAARC Partnership for People”, does extend greater efficacy to the last year’s theme of Connectivity. It is anticipated that the Colombo Summit would focus on increasing connectivity not only air connectivity but by land and by sea as well.

The utility of greater connectivity would be economically significant and would benefit Sri Lanka. The Connectivity and Partnership would lead to closer cooperation among the member States in many spheres such as trade, services, food security, tourism, oil and natural gas, and investments as well as FDI/FII among others.

The region of SAARC has one of the highest number of people under the poverty line and the current development of the region is far from satisfactory. The concept of connectivity, as stated earlier, has a number of economic as well as political and social benefits to the member countries.

It is equally important for the member States and particularly for the Chair of the SAARC, which is to be Sri Lanka, to continue to establish and promote greater connectivity in all aspects. The theme of this year’s Summit, which is SAARC Partnership for People, would make a strong impingement on further development of the region.

The intra- regional trade of the SAARC is still at a dismal figure of approximately 5.5% of the total trade of the member countries. Strong and well established degree of connectivity and partnership between and among people and member countries could increase the share of intra-regional trade markedly.

Having stated this premise, it is increasingly vital for the member States and particularly the imminent Chair of the SAARC, i.e., Sri Lanka, to play a pivotal and instrumental role, thus executing and fructifying the theme of Connectivity and the Colombo Summit theme of Partnership for People.

Minister of Foreign Affairs of Sri Lanka, Rohitha Bogollagama, is one of the few political leaders and Ministers of Foreign Affairs who places an increasing importance on establishing and reinforcing connectivity and closer and pro-active partnership between and among the member states as well as with other countries.

Direct and Indirect Economic benefits

It is no doubt that the Colombo SAARC Summit would lead to physical economic and commercial benefits to Sri Lanka as well as to other member countries. The establishment of the SAARC University in New Delhi would benefit all the member countries in enhancing the human resource development and marketable skills and knowledge.

For any given country, particularly the member countries of SAARC, the human resource base would be of paramount significance and importance for the development and advancement of the respective countries.

Human resource

The students entering the proposed SAARC University would be primarily from the member countries. The establishment of the SAARC Development Fund (SDF) which consists of US$ 300 million would be used for development purposes in all aspects.

One could foresee that a development fund of this magnitude and scale would benefit most of the countries with regard to, particularly, the construction and advancement of their infrastructure.

Power, energy and food

The Colombo SAARC Summit would deliberate on the issue of food security and power and energy. Both these issues are most conspicuous to this developing region since the scarcity of power/energy and food could have a negative impact not only on the economies but on the populace as well.

Key energy issues such as sharing of hydro power and the tri-lateral gas pipeline among Iran-Pakistan-India too would be addressed at the Colombo Summit.

Addressing these issues at the Colombo Summit would definitely be of benefit to Sri Lanka. It may be opportune to state that Sri Lanka imports approximately 2.6 million barrels of oil per year, which would translate to USD 4 billion a year, at the current price of USD 145 is per barrel.

It is envisaged that the Colombo SAARC Summit would map out and deliberate other sources of alternative energy. Further, the Colombo Summit would focus on enhancing air connectivity between and among the member countries.

As stated, the connectivity could lead to a great degree of economic and commercial activity such as enhancement of tourism, intra-regional investment and trade, international joint ventures and people to people contact among others.

The Summit will address the operational aspects and other concomitant dynamics of the SAFTA as well. The SAFTA could be the catalyst to transform and evolve the region of SAARC as a free trade area, thus increasing the bilateral and multilateral trade of goods.

Also, the Summit would address the issue of establishing uniform standards of goods and services among the member countries. The standardisation would increase trade and reduce the cost of production as well as increase the competitiveness vis- a -vis other countries.

The newest member of the SAARC, which is Afghanistan, would offer increasing opportunity in the realm of construction and re-development.

It may be germane to state that the Summit would discuss other methodologies to implement tele-medicine, visa free entry among the member States and facilitation of religious pilgrims among others. Needless to state that these economic initiatives and propositions would have a direct impact on the economic fabric of the country.

It is slated that India and Sri Lanka would sign key agreements such as Science and Technology, National Thermal Power Corporation of India (NTPC) and CEB of Sri Lanka, and Power Grid Transmission Agreement.

It may be noted that seven Observer States too would be engaged in bilateral discussions and would also focus on economic, trade and investment aspects as well. Given this context, one could comprehend the fact that these seven Observer States are not only affluent and economically and politically endowed but also belong to many regional and economic groupings.

The SAARC Summit in Colombo would certainly enhance the profile and the stature of Sri Lanka not only regionally but internationally, as stated earlier. The Chairmanship of the 15th SAARC Summit would reflect, with conviction and cogency, Sri Lanka’s pro-active engagement and involvement with many a nations, and of course the largest regional bloc in the world.

The very fact that seven Observer States attending the Summit and two other states have applied for the Observer status, lucidly reflect the global significance and stature of the Colombo SAARC Summit. It is further anticipated that these Observer States would be represented at Foreign Ministerial or Deputy Ministerial level.

Meeting place

The SAARC member States are represented at Heads of State/Government level and would be accompanied by the Ministers of Foreign Affairs as well as several other key Ministers. International Summits of this nature and profile attending Heads of State/Government and senior Ministers would further strengthen political relations as well as economic and cultural relations.

It may also be stated that hosting a Summit with such a pantheon of South Asian leaders and other global dignitaries would reflect the stability, capacity and finesse of the country, thus stimulating economic and commercial activity.

The leaders of the other countries too would be meeting their counterparts in Colombo itself, thus extending publicity and enhancing the profile of the country. Colombo would be a meeting place of a large number of high profile Foreign Ministers and other Ministers, Heads of State/Government of SAARC countries and Leaders/Ministers of Observer States, on the sidelines of the SAARC Summit.

Over 250-300 foreign media personnel would be present at the Colombo Summit to extend coverage to the Summit as well as numerous meetings between the leaders among others.

Cost of Summit

It is vital to state at this juncture that one of the potent common threads that the region has is the threat of terrorism. The issue of terrorism would be addressed and discussed, in detail, at this Summit.

It estimated that the total cost of the SAARC Summit in Colombo would be in the vicinity of SLR 2.8 billion or US$ 27 million. Being a close observer of international relations and developments in the country, one could state that given the tangible and intangible benefits that Sri Lanka would amass from this Summit, the total cost of US$ 27 million could well be justified.

I have seen both on electronic media and print media that many a cabinet Ministers, including the Minister of Foreign Affairs, justifying this amount which is expended for the Summit. It may be appropriate to state at this stage that benefits Sri Lanka would accrue from the Summit would be astronomical and cannot be quantified in US Dollar terms or in Sri Lankan Rupee terms.

Taking the mantle of the Chair of the world’s largest regional grouping, in terms of population, Sri Lanka could be the focal point of all SAARC and SAARC related discussions and parleys. If addressed with a high degree of diligence, assiduousness and astuteness, the SAARC, similar to other well established regional groupings in the world, could articulate in unison with other groupings or international bodies.

The political benefit of such an accomplishment would be monumental, particularly for Sri Lanka since she holds the Chair of the SAARC.

Funds

With regard to the amount which is expended for the SAARC, over 75% is spent for security and security related issues at the SAARC Summit. The rest of the funds are expended for the rehabilitation of the BMICH which is the venue of the Summit and rehabilitation of the Ministry of Foreign Affairs as well as other related institutions. One should pay cognizance to the fact that 75% expended for security would be an investment and would enhance the security of the country, in general.

The rest of the amounts spent are for construction and rehabilitation of select roads and highways in Katunayake, Colombo and also in Kandy and repair of buildings and institutions, which would be used at the SAARC Summit.

As an independent observer, I could state, with conviction, that most of these funds are of capital expenditure and would be permanent. For the record, 86% of the total budget of the SAARC was capital expenditure.

If I were to impress the importance of security at the recently held G-8 Summit in Japan, known as Hokkaido Summit, the cost of security alone was an exorbitant figure of USD 280 million.

Of course, one could debate that these amounts were expended by the world’s most elite and the wealthiest nations and they could well afford it. However, it may be noted that particularly, Japan does not have any threat of organized terrorism or any kind of terrorist activities but yet an amount USD 280 million were expended for security.

This is because terrorism, which knows no borders, boundaries or nationalities, cannot be compromised or diluted under any circumstances or vicissitudes. It is heartening to note that the Government of Sri Lanka, in general, and the Ministry of Foreign Affairs, in particular, extend a great degree of focus on such high profile international Summits and conferences such as SAARC, particularly under such exacting conditions.

It would also be opportune to state that the Foreign Minister of Sri Lanka along with other line Ministers and Ministries follow-up and map out the intricate details of the Summit and smooth coordination, and rehabilitation of select roads and institutions in Colombo and in Kandy as well as disseminate the developments and dynamics of the Colombo SAARC Summit to both foreign and local media among others.

The writer Sarath Wijesinghe, (LLM. London), specialized in international law. Wijesinghe is the Chairperson of SAARC Study Centre in the UK, Senior Solicitor and the former Secretary of the Bar Association of Sri Lanka.