South Asia has a long-shared history of ancestry, culture, and colonisation (most of it, not all) and a history of partition, struggle for independence and forming different forms of governments, making them all very different from each other. However, looking at the linkages and earlier being part of one subcontinent, one would expect them to have carried forward that integration, but that has not happened. It remains one of the least integrated regions of the world. Realising this long ago that there was a need to bring the area together for increasing integration and cooperation, the countries formed SAARC (the South Asian Association of Regional Cooperation) in 1985. There was a hope that this organisation might finally bring the long-awaited integration. However, it seemed to be failing with time, mainly because of unresolved territorial disputes between the member states, particularly India and Pakistan. There were no SAARC summits held after the 2014 SAARC Summit in Kathmandu. The upcoming Summit, which was supposed to happen in 2016 in Islamabad, got cancelled due to tensions between India and Pakistan. There is no scope for future SAARC summits until the dispute gets resolved, which has as much chance as the China-Taiwan dispute getting solved.
In a recent news release, it was reported that “it takes 138 hours to move a truck across the border from India to Bangladesh, and there are 22 documents required and 55 signatures. So, in many ways, South Asia is not well integrated” (Basu, 2022). What is sad is that this situation exists despite the two countries being in such geographical proximity. With the political regimes changing in the region, one state after another, stability needs to be there for countries to work upon some mutually agreed deals. Free trade should be everyone’s priority as it benefits all. There are disagreements over political culture existing in different countries and on geopolitics, but should these affect the trade relations? With regional integration, the South Asian economy can become one of the largest in the world. A report also noted, “Despite massive connectivity plans and infrastructure development, South Asia remains the least integrated region in the world — just 5 per cent of its total trade takes place within the region. Greater integration and seamless connectivity could see trade increase by an estimated $44 billion, according to Cecile Fruman, Director, Regional Integration and Engagement in the South Asia Region (SAR), World Bank’ (Basu, 2022).
“In 2019, India and Pakistan undertook trade-restrictive measures against each other, perhaps the most severe in several decades. After the Pulwama terror attack in Kashmir in February 2019 and cross-border air strikes, India withdrew Pakistan’s Most Favoured Nation (MFN) status and imposed a customs duty hike of 200% on imports. Later, when India revoked the autonomy of Jammu and Kashmir, Pakistan suspended bilateral trade” (Hindu, 2021). It costs both countries in terms of expenses incurred to find alternatives. Similarly, Pakistan blocking India’s deal with Afghanistan to trade or transport goods only hampers the integration process. The region is complicated as it remains stuck in the past, halting projects in the present and putting in jeopardy their future. The ongoing conflicts between the countries have become the greatest obstacle to achieving cooperation. The unresolved conflicts are stretched for political gains, neglecting the greater regional interest and benefit one can take advantage of.
On a positive note, it is a good sign that Nepal and India are coming together to discuss pending projects after the relations between the two soured last year. With regime change in Pakistan, there is a hope that the new government might relax some trade restrictions put on India to revive their economy. As Sri Lanka is in its worst economic crisis since independence, India is now taking the lead and coming forward to help it deal with the situation regarding aid and grants. Restoring stability brings hope that the countries could continue their trade on better terms which were affected due to Sri Lanka’s previous deals with China. However, this only shows that states are now preferring to go bilateral over working together as a group, entailing some positive outcomes. However, if the region unites, its economy could overtake many leading economies today.
It is hard to say if the region’s prospect is to integrate, but it needs to act on it. The SAARC member states must realise the more significant gain here and try to work on their fault lines. Political skirmishes are coming in the way of trade, which is never a good sign; even China is India’s greatest trading partner despite their ongoing border disputes, only because one cannot risk their economy. Diplomatic solutions must pave the way, and leaders must meet and address the concerns of their respective countries. No other way can bring the region to grow and prosper than engagement. It is a long way, and it will not be easy. It will be interesting to see how this turns out to be. With the Russian invasion of Ukraine, there is already a food shortage; neighboring states could help each other out. These solutions may sound utopian, but it is better to hope than give up.
