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Dasho Ugen Tsechup Dorji, President of the SAARC Chamber of
Commerce and Industry,
Lyonpo Chenkyab Dorji, Secretary General of SAARC,
Mr Habil Khorakiwala, President of FICCI,
Dr. Amit Mitra, Secretary General of FICCI,
Distinguished Business Leaders and participants,
Ladies and Gentleman,
I am delighted to have this opportunity to participate in the Second SAARC Business Leaders’ Conclave. I extend a warm welcome to the delegates from our neighbouring countries. I also wish to commend the SAARC Chamber of Commerce and Industry (SCCI) and their partners in the respective national chambers of commerce and industry for their activities in energizing this apex body of SAARC whose initiatives have played a constructive role in facilitating greater private sector interaction and partnership in our region.
2. The theme of the Conclave, “Regional Cooperation: A Springboard for Growth and Job Creation”, is of relevance to our region today. Most economies of South Asia have shown remarkable improvements in economic growth and many have grown at an average of close to 6 % per annum for the last decade or so. While this has helped South Asia reduce poverty and raised the living standards of its people, it has also attracted the international community’s attention to our region.
3. Together with growth, policy reforms have resulted in a greater integration of South Asian countries with the global economy. Deregulation has enhanced the role and efficiency of the private sector.
4. However, it is ironical that while South Asia has made significant progress in integrating with the global economy, its integration within the region remains limited. South Asian countries have maintained a higher level of protection within the region than with the rest of the world. Our restrictive policies have neutralized the benefits of cultural affinity and geographical proximity. Restrictions on freer movement of goods and people within the region mean that intra-regional trade is the lowest for South Asia. There is little cross-border investment and equally little flow of ideas, as measured by the cross-border movement of people, or the number of telephone calls, or the purchase of technology and royalty payments – all these are all too low for a region with our potential. Poor connectivity and concerns about security have all contributed to South Asia being the least integrated region in the world.
5. With the 14th SAARC Summit less than two months away, this is an appropriate time to suggest some concrete solutions. The 14th Summit will be a landmark Summit for SAARC. For the first time in its history, SAARC would enlarge its membership. We eagerly look forward to receiving Afghanistan as the eighth member of SAARC. This will not only complete its regional identity but also provide SAARC a gateway to Central Asia. This is also the first time that five Observers from outside the region – China, European Union, Japan, Republic of Korea and the United States – would be associated with SAARC. I am confident that these external linkages will benefit SAARC and assist in its global integration.
6. An important subject to be discussed in this Conclave is the issue of Connectivity. You would all recall that during the 13th SAARC Summit in Dhaka, Prime Minister Dr. Manmohan Singh had put forth a bold new vision of an interconnected South Asia. He called for “reconnecting the countries of the sub-continent on the one hand and then reconnecting the continent to the larger Asian neighbourhood on the other”. He shared these thoughts at the First SAARC Business Leaders’ Conclave Meeting in November 2005 as well.
7. Connectivity implies several things—physical connectivity, economic connectivity and a connectivity of people and ideas. Physical connectivity would open up the channels of communication and transport. The provision of transit facilities, access to roads, railways, waterways and increased air connectivity are all elements of this. As India prepares to take over the Chairmanship of SAARC, we would like to move this idea forward in all its aspects.
8. To highlight the need to upgrade our connectivity, the SAARC countries are organizing the SAARC Car Rally as a curtain raiser to the 14th Summit. The Rally will symbolize vividly South Asia’s regional identity, its geographical connectivity and draw attention to the urgent need to improve regional transport infrastructure. It is intended to promote people to people contact, tourism and business and investment opportunities in the region.
9. An important aspect of economic connectivity is freer trade in the region. A smooth and complete implementation of SAFTA is therefore imperative. SAFTA can be an important instrument to deepen intra-regional trade if it is implemented in letter and spirit. Full implementation of SAFTA will catalyze other areas of economic integration, including enlarging the scope of SAFTA to services and investment.
10. Regional integration also provides opportunities to make progress in other areas of regional cooperation. Some of these opportunities include addressing the problems of energy shortage, the constraints of transit for land-locked regions of our subcontinent and overcoming high transaction costs due to poor trade facilitation across regions. Regional cooperation on transport and trade facilitation can transform these land-locked regions into land-linked regions. The SAARC Multimodal Transport study has given important suggestions which should be carried forward.
11. There are other areas where the region can benefit through cooperation. These include tourism, education, health, and professional services. All these can lead to positive benefits, including peace dividends through regional cooperation.
12. If it is the responsibility of the Governments to create an environment conducive to improved economic performance, it is equally the responsibility of businesses to ensure that our firms become globally competitive. Our entrepreneurs must be prepared for faster regional integration. As the region's largest economy, we are conscious that we have the biggest responsibility. We are prepared to play that role.
13. The destiny of the people of South Asia is interlinked. India cannot be a prosperous, dynamic economy, if our neighbourhood as a whole is also not economically prosperous and politically stable. Similarly, our neighbours cannot prosper if India does not do so as well. There are enormous opportunities and vested interests for promoting mutually beneficial cooperation in South Asia.
14. Business and trade flourish in an environment of security. Therefore, it is imperative to fight unitedly the scourge of terrorism and extremism that haunts our region. Terrorism, by whatever name, has no place in civilized societies. We all know that in an interconnected region, and in our globalized world, the consequences of both poverty and insecurity are indivisible. Business leaders understand this very well. Every country in the region wants to attract more foreign investment. We therefore have a collective stake in ensuring peace and security here because no investor will come to this region if there is no assurance of peace and security. We must join hands to put our collective house in order, as peace and security in the region will benefit us all.
15. It is incumbent upon all of us to think of our region’s future, and the need to build a progressive and equitable society. The SAARC Chamber of Commerce and Industry came into being with these objectives. I urge you to continue to your work in that spirit and wish this Conclave all success.
Thank you.
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