Connect-up more with Asia's booming economies

East Asia is the new growth pole of the world economy and it would be in Sri Lanka's interests to link-up increasingly with this region. It is not the case that this requirement is being overlooked by this country's policy and decision makers, but we could do with an increased sense of urgency among these personnel, to effect the necessary measures which would facilitate these mutually-beneficial external economic linkages.

It is now quite clear that the current political issues faced by Sri Lanka would not impact adversely on its economy. In fact, as an interview with International Monetary Cooperation Minister Dr. Sarath Amunugama indicates, the central global financial institutions would continue with their funding programmes, in view of the fact that internal stability has been established in this country, following the crushing of terrorism. He went on to point out that investor confidence in Sri Lanka is bound to be high and that more and more money is likely to be siphoned into sectors, such as, tourism, industry and commerce, close on the heels of the quashing of terror.

What could be inferred from these observations is that the possibilities for Sri Lanka in the material and economic sphere would only greatly abound from now on. However, these possibilities should be fully exploited if sustained growth is to be this country's lot and this too is a challenge Sri Lanka has to meet successfully.

In this connection, the personal diplomacy engaged in by President Mahinda Rajapaksa with the political leadership of the countries of this region is vitally important. As his recent official visit to Bangladesh illustrated, a need of the hour is to forge increasingly close economic ties with the up and coming economies of the region and such diplomatic initiatives could help in the process of fostering regional amity and multilateral economic cooperation.

It is perhaps not recognized sufficiently in this country that the epicenter of the world economy has shifted almost drastically to East and South-East Asia, with China and India emerging as the world's fastest growing economies. The future lies with these regions and it only stands to reason that the countries of the SAARC region too should cultivate increasingly close economic and diplomatic relations with the booming economies of East and South-East Asia. For, herein lies the key to increasing economic prosperity.

These changing global economic realities have profound implications for international political relations and this too must be borne in mind by the countries of this region as they explore the possibilities of creating for themselves a better and more prosperous future. The growing importance of East Asia in the current global political system, close on the heels of the vast economic prosperity it is generating, has made East Asia and its neighbouring regions the principal stage of world politics. It is at these Asiatic regions that one must look to ascertain the principal contours of current international politics.

No more is Europe a dominant arena of global politics, although developments of absorbing interest are and would continue to break out on the continent. However, the continent to watch closely is Asia along with its booming economic powers. In these developments we have the best proof that economics are driving politics, to a decisive degree.

Therefore, it behoves countries such as Sri Lanka to cultivate increasingly close economic ties with countries such as India and China, which have emerged as the foremost exemplars of market-driven economic growth. At the moment, it would be most opportune for Sri Lanka to strengthen relations with these main economic powers and it is not only economic compulsions that make such a course of action advisable. Not to be discounted as unimportant is the support these thriving economic powers could lend Sri Lanka in the teeth of the pressures some global hegemonic powers are currently exerting over this country in the wake of the controversial Darusman Report.

Brazil, Russia, India, and China, or the BRIC countries, are now being widely considered the foremost economic powers of the world. However, as far as the Asian region is concerned, it is India and China which are the dominant economic powers and the rest of Asia would be overlooking this fact only at the risk of their failing to zoom in on the opportunities for stepped-up economic growth.

So, an Asian Century is truly upon us and strong cooperative links in the economic, political and cultural spheres among the countries of Asia, could be the best means of tilting the global power balance in favour of the developing world. Asian solidarity should come to the fore.