Economic woes faced by South Asia:

Forum for regional issues, the answer

by Gamini Warushamana

Major economic issues faced by countries in the South Asian region were discussed at the sixth South Asia Economic Summit (SAES) in Colombo last week.

Economists, policy makers and private sector leaders representing countries in the region and beyond participated in the summit and the organisers said that SAES was turning out to be an annual event for the South Asian region, similar to the World Economic Forum in Davos.

The sixth SAES, themed 'Towards a stronger, dynamic and inclusive South Asia' was organised by the Institute of Policy Studies (IPS). Over 200 people discussed the challenges and opportunities faced by the region in economic development and how solutions could be found to integrate the region, despite various political and economic constraints.

There were four plenary sessions, 14 parallel sessions and two guest lecturers made presentations. The plenary sessions focused on four key issues or 'Big Four' as identified by the summit, concerning economic growth in the region.

The issues were harnessing human capital in South Asia, Managing water resources, food security and climate change in South Asia, Managing intra-country growth disparities in South Asia and improving the climate for private enterprise in South Asia.

A youth delegation representing member countries was present and was facilitated by the World Bank. The organisers said that this was the first carbon neutral summit in Sri Lanka.

The discussions went beyond conference rooms, through blogs and social media, enabling wider participation.

Executive Director of IPS, Dr. Saman Kelegama said that SAES was an idea born at the South Asia Centre for Policy studies (SACEPS).

Reputed research organisations in the region took the initiative for the SAES. The time has now come for an economic forum, similar to the World Economic Forum in Davos, for South Asia to discuss regional economic issues.

Secretary General of SAARC, Ahmed Saleem

IPS, Executive Director, Saman Kelegama

In 2008, the first SAES was launched in Colombo and then the event was held in countries of the region. The fifth SAES was held in Islamabad, Pakistan last year.

The summit is becoming a larger event bringing together academia, economists, policy makers and private sector leaders in the region and has become a platform for contemporary economic issues faced by the South Asian region, he said.

The sixth SAES took place just after two important meetings in Colombo, the ministerial council meeting of SAFTA and SAARC Finance Ministers' meeting which took place two weeks ago. It is also ahead of the Commonwealth Heads of Government Meeting (CHOGM) and the Commonwealth Business Council in Colombo in November this year.

He said with these pivotal meetings coming up, deliberations at this summit will provide important input for official meetings in the coming months.

Over the past five years, the summit focused on regional economic cooperation.

The sixth SAES had a different focus as it was motivated by the fact that faster economic growth that is also inclusive and sustainable and depended on efforts of individual countries to deal with specific constraints to growth.

It is time to take a broader approach in view of the current global economic turmoil that is exerting an adverse impact on the entire region. However, exposure of countries in the region may be different from one another. Therefore, in mitigating policy approaches to ensure that long-term development goals are not compromised, will also be different, Dr. Kelegama said.

Secretary General of SAARC, Ahmed Saleem said that the sixth SAES arrived at ways and means of strengthening regional integration and cooperation.

The gathering of important delegates drawn from the region and beyond signifies the importance of this summit and its outcome, he said.

SAES has been an important platform for researchers, academia, business persons and government representatives to exchange views on issues having a direct bearing on economic integration of the region. South Asia is a reservoir of human capital although the region occupies a small area of the world geographically.

This can be an asset and also a liability. The question is how best to use human capital. It is a formidable challenge, Saleem said.

He said the setting up of the South Asia University is a significant leap forward in meeting challenges and harnessing human capital.

Making the best use of water resources, ensuring food security and meeting the adverse impact of climate change can effectively contribute towards the overall prosperity of the region. On the other hand, misuse of resources can endanger overall progress and development in other regions.

"We at SAARC look forward to benefiting from the suggestions emerging out of this summit," he said.

A majority of the population in the South Asian region still depend on agriculture. It is a challenge for governments of the region to provide them adequate nutritious food at affordable prices and with easy access.

The agreement on the SAARC Food Bank and SAARC Seed Bank are concrete measures initiated by SAARC to ensure food security in the region.

"I am glad to say that all member states have now ratified the agreement on the SAARC Food Bank," Saleem said.

However, the region must be cautious in this regard since attempts to ensure food security might fail if countries are not prepared to face the consequences brought about by climate change and adverse environmental impact.

Studies have shown a negative impact of the phenomena in various parts of the region, be it landslides, frequent floods or drought. Regional cooperation is paramount in areas such as advance preparations, timely help and cooperation when disaster strikes.

Intra-country growth disparity is another challenge to ensure sustainable growth.

A number of studies show that lopsided and non-inclusive growth creates other problems in the long-run which are not good for society.

"Within SAARC we have to do more for the development of the region. SAARC is now 28-years-old, but it has a long way to go to realise its true potential and promise. Economic cooperation is key to the South Asian region's success," Saleem said..