Prospects of Cooperation Between Economic Cooperation Organisation and South Asian Association for Regional Cooperation through Pakistan

Introduction ( Prospects of Cooperation Between Economic Cooperation Organisation and South Asian Association for Regional Cooperation through Pakistan. Thesis of PHD. Allama Iqbal the national poet of Pakistan proffered an idea about a Muslim state in the Sub-continent during his sermon sat Allahabad in 1930. His dreams, the creation of Pakistan materialized in 1947. Another dream that Tehran might be the centre of power of East, the fate of Muslim world would change. Allama Iqbal predicted in his famous poem (the Qazi of Qartaba) that if one day Iran may become the centre of power of Islam to fight for the emancipation of Muslims of South Asia. At that time, Pakistan was not established. God helped the Muslims of South Asia and a dream of great poet become reality on August 14, 1947. Iran was the first country, which recognized this reality. The Pakistan, Iran and Turkey formed a regional bloc in 1964 to procure benefits of regional cooperation. The people of Central Asia got independence in 1991 and rejoined their past historical and cultural linkage. The entire Muslim people of South Asia, South West Asia and Central Asia reunited on the vibrant platform of Economic Cooperation Organisation. The other dream of Allama Iqbal came true in the shape of regional Cooperation for Development. However, the enemies of Muslim created hurdle and RCD could not work for the greater cause. With the blessing of Almighty Allah Pakistan became first Nuclear power of Muslim world. Iran despite enormous hindrances is marching towards that objective. Turkey is striving to become a member of European Union and it will be the one of the strongest country in EU. That is why the countries of EU are resisting its entry into it. The RCD became dormant following the Islamic Revolution in Iran in February 1979. The three neighbours realised the need of mutual economic and social cooperation and decided to revive RCD with new name and objectives. The Economic Cooperation Organisation was revived in 1985 during Iran Iraq war. Similarly, the leaders of South Asia established South Asian Association for………….. Introduction qayum Allama Iqbal the national poet of Pakistan proffered an idea about a Muslim state in the Sub-continent during his sermon sat Allahabad in 1930. His dreams, the creation of Pakistan materialized in 1947. Another dream that Tehran might be the centre of power of East, the fate of Muslim world would change. Allama Iqbal predicted in his famous poem (the Qazi of Qartaba) that if one day Iran may become the centre of power of Islam to fight for the emancipation of Muslims of South Asia. At that time, Pakistan was not established. God helped the Muslims of South Asia and a dream of great poet become reality on August 14, 1947. Iran was the first country, which recognized this reality. The Pakistan, Iran and Turkey formed a regional bloc in 1964 to procure benefits of regional cooperation. The people of Central Asia got independence in 1991 and rejoined their past historical and cultural linkage. The entire Muslim people of South Asia, South West Asia and Central Asia reunited on the vibrant platform of Economic Cooperation Organisation. The other dream of Allama Iqbal came true in the shape of regional Cooperation for Development. However, the enemies of Muslim created hurdle and RCD could not work for the greater cause. With the blessing of Almighty Allah Pakistan became first Nuclear power of Muslim world. Iran despite enormous hindrances is marching towards that objective. Turkey is striving to become a member of European Union and it will be the one of the strongest country in EU. That is why the countries of EU are resisting its entry into it. The RCD became dormant following the Islamic Revolution in Iran in February 1979. The three neighbours realised the need of mutual economic and social cooperation and decided to revive RCD with new name and objectives. The Economic Cooperation Organisation was revived in 1985 during Iran Iraq war. Similarly, the leaders of South Asia established South Asian Association for Regional Cooperation in Dhaka on December 07 1985, which consist of eight countries. The ECO was expanded in 1992 during first summit held in Tehran, following the demise of Soviet Union. At present, the ECO is consisting of ten Muslim countries and Saarc is consisting of four Muslim countries, and India has considerable majority of Muslim population. This notion prompted me to write the thesis, as two contiguous regional organisations SAARC and ECO are capable of catering to the wishes of Muslims. Pakistan is important and potential member of both blocs. We pondered what would happen if both powerful blocs in terms of natural resources, human resources and strategic position in the world, form alliance with each other to fight common enemy that is underdevelopment and poverty. Pakistan is at the crossroad of South, West and Central Asia. Pakistan is the only country, which can materialise this dream of conglomeration because of its central geographic location and rational foreign policy toward all member countries. The amalgamation would be a welcome development for Asian security dynamics and give a momentum to the emergence of new security patterns in entire Asia. New alliance would be strong factors for the promotion of regional stability due to their common agenda of building regional peace as well as for establishing politico-economic stability in the region. The concept of this dissertation is enormously significant as it bring together and conglomerate two regional organization of the world, ECO & SAARC for the amelioration of teeming masses of West, Central and South Asia through Pakistan. Pakistan’s geo-political position is ideal for building an effective linkage between West Asia, Central Asia and South Asia for a mutually beneficial cooperation. The ECO was expanded with the inclusion of newly emerged Central Asian states and Azerbaijan. It is one of the largest regional grouping in the world with population of more than 400 million in the region extending from Balkans to the Himalayas and encompassing large parts of three critical regions of Asia, namely Central, West and South Asia. The basic aims and objectives of ECO are to promote economic, technical and cultural cooperation among member states. The ECO reflect the aspiration of people bounded together by a shared common heritage and culture within the vast area of over seven million square kilometer. The South Asian Association for Regional Cooperation (SAARC) comprising of eight countries is a manifestation of the determination of the peoples of South Asia to work together towards finding solution to their common problem in a spirit of friendship, trust and understanding and to create an order based on mutual equity, respect and shared benefits. It is the biggest bloc in the world with more than 1.5 billion population. The basic aim of the SAARC like other regional Organisation is to accelerate the process of economic and social development in member states through joint action in the agreed areas of cooperation. The phenomenon of regional cooperation is briefly assessed. How it influenced the South Asian, Western, and Central Asian state to form cooperation blocks to gain mutual dividend. Regionalism remains a multifaceted and popular notion. Not only developing countries but also industrialized economies have come together to make use of the forces of complimentaries and benefits of economies of scale in production and distribution. The last decades of nineteenth century has witnessed far-reaching political and economic changes in the international and regional scenes. During the inclement super power rivalry, an innovative configuration of political power in the world emerged. International bitterness and confrontations of the past have given way to a novel spirit of collaboration. There was worldwide trend towards the adoption of market and export-oriented models of development. The upsurge of economic liberalization and augmented role of the private sector in the economic development is presenting a fresh vision of reforms consistent with new realities. New challenges were also emerging in the growing integration of world economy reflected in the regionalisation of production and financial markets, the rapid evolution of technology and increasing importance of trans-national Corporation in global production and trade. These changes have no doubt, generated new attitudes and new approaches in the outlooks of states and regional organisations. One of the emerging realities is that the dynamics propelling world have to be based on regional cooperation. The new political and economic imperatives, no doubt, have altered the fundamentals of global and regional relations. The world war 11 ended with the destruction and annihilation of both victor and vanquished. The West Europe was destroyed by Germany. The allies demolished the East Europe. The Japan was defaced from the map of world by the holocaust of atomic bomb dropped by the United States. After such appalling destruction, a fresh wave of cooperative spirit was blowing in the West Europe. These destroyed nations realized that the formation of regional cooperation groups by countries situated in geographical propinquity having close historical and similar cultural background and common economic problem with the same capabilities to handle them is indispensable. The international attention was shifted to social and economic issues and nations were mobilizing their resources to elevate their level of living standard and solve these problem. They found regional integration as the most effective and efficient way to make paramount use of social and economic development. Regionalism and inter-regional cooperation have evolved as a new pioneering trend in the post war international system. Regionalism was supposed as panacea for avoiding traumatic course of conflict and maximizing efforts for development. Following the end of World War-II the world was also working to make a new kind of cooperative arrangement on regional bases comprised of countries situated in geographical closeness and with close historical and cultural background. They strived to handle the common economic problem with common political will and forget the past in the supreme interest of humankind. The international situation was forcing them to redirect their attention to economic and social issues. As a corollary, these nations established regional organisations to procure maximum social and economic development. As an emulation of this positive trend in Europe the RCD in 1964, SAARC in 1985 and ECO in 1985 were established inspite of serious and chronic intra-regional and bilateral disputes and differences. This reality offers new challenges and opportunities to ECO and SAARC countries. ECO and SAARC, as important and potential regional grouping have a role to play in bringing about a balanced economic order and strategic order in the world. Their vast combined natural and human resources provides countless opportunities. What they need is to capitalise on these opportunities by evolving viable and forward-looking strategies and developing sustained patterns of economic cooperation on regional basis. The prospects of these organisations, therefore, depend on how effectively both capitalize on the challenges and opportunities. The SAARC region has been beset with numerous interrelated domestic and inter-state conflicts owing to their origin to a large number of sources. These were rooted in the colonial past as well as the dynamics of postcolonial socio-economic and politico-cultural development of South Asian societies. Combinations of regional as well as extra regional factors have gradually transformed South Asia into an area of permanent mistrust, endemic conflicts and recurrent wars. Due to political and territorial disputes between India and Pakistan South Asia has emerged as the poorest, the most illiterate, the most malnourished and least gender sensitive region even below the Sub Saharan region. The blight of poverty in south Asia is evident from Human Development Report 2007. 523 million people out of its 1.5 billion population lives in absolute poverty, 260 million lack access to even rudimentary health facilities. 337 million South Asian are without safe drinking water, 830 million have no access to sanitation, 400 million of which two third are women, are unable to read and write, yet the South Asian countries are spending more than 50 billion dollars every year to accumulate weapon of mass destruction. The SAARC region comprises 22% of the world’s population but its global income is just below 2%, intra-regional trade is 5% with combines GDP of 300 billion dollars less than Malaysian GDP. In today’s increasingly complex, dynamic and interdependent world, regional cooperation amongst nations, whether pursued in a bilateral regional framework has become indispensable for combating the uncertainties and mastering the multifarious challenges. Pakistan by virtue of its central geographical position is fortunate that it lies on the threshold of two large and important regions, South and Central Asia. It is also member of two adjacent and parallel regional grouping ECO and SAARC. The ECO and SAARC following emergence were confronted with internal disputes and divergent policies. The SAARC due to obstinate and expansionist role of India could not achieve its lofty objective i.e. poverty reduction, enhanced socio-economic cooperation among members. The history of inter-state relations in South Asia are more of conflict than cooperation, more of tension than amity, more of mistrust than understanding. The political climate of the region had been vitiated due to India’s hegemonistic and irrational policies. The estranged relations of India with its neighbour not only marred the socio-economic development in region but also retarded spirit of regional cooperation. Mutual mistrust and suspicion have prevented them from forging effective cooperation to harness the regions resources for the collective benefit. SAARC was established to mitigate suffering and sorrow of people committed by history of mutual distrust and to avoid escalation of tension in the region. The ECO was also revived as a successor of RCD. Both organizations are in crucial position to play a vital strategic role in the world and regional politics. It is contemplated that why south Asia and Central Asia despite abundant natural and human resources has remained economically impoverished, politically fragile and intellectually barren. It forced us to analyse, find ways, and proffer suitable solution. The proposed study will analyse the factors and devise strategy to arrest the trend of under-development and render suggestion to make both regions socially united, politically stable and economically prosperous through Pakistan’s policies of peace and cohesion. The significance of the dissertation is beyond any iota of doubt that it will not only assess the possibility and benefit of merger of two important organization but also proposed ways and means to coalesce ECO and SAARC through Pakistan’s conducive and conciliatory role. Both organization with plenty of human and natural resources could achieve a high rate of economic development and even become economic power and strategic block to be reckoned with European Union, North Atlantic Free Trade Area and Association of South East Asian Nations. The member countries of ECO and SAARC must forget their thorny past and pool their energies and resources for the benefit of poverty-ridden people of this part of globe. The ECO countries has the potential to become the largest supplier of oil and gas to Asia and Europe with its estimated reserve approximating 200 billion barrel-surpassing any region out side the Persian Gulf. Pakistan is capable of becoming a viable bridge between ECO and SAARC. Pakistan with largest population among ECO members has a special interest in promoting all round collaboration in various fields, which would not only fulfils its national aims but also contribute to the security and development of all member states. Pakistan is playing active role in supplying the pipeline of oil and gas from Iran, an ECO member to India, a SARRC member thus Pakistan has commenced its role in cementing both regional block. Currently ECO region has become main focus of attention of USA and its allies following disastrous attack on United States on 9/11. The United States and Russia has joined hands and become partner for peace. China is also playing its role due to its proximity. Pakistan has sided with US to curb the menace of international Terrorism in Afghanistan, which is a member of ECO. It is a clear fact that without the active support and assistance of Pakistan US and its allies could not have defeated Taliban. The four members of ECO have signed Shanghai Cooperation Organisation on 14 June 2001 along with Russia and China. Pakistan and India has also applied for its membership. Pakistan is the only country, which can become a viable bridge between ECO and SAARC thereby augment the economic, cultural, political and strategic collaboration. The cooperation will not only enhance economic activities but also help increase intra-regional trade, reduce poverty and defense expenditure. The collaboration between ECO and SAARC would surely bring economic revolution in the lives of people of both regions. This form of collaboration is also expected to enhance the flow of regional trade, reduce the dependence of the regional states on external aid and mobilize the human and natural resources for their own development contributing thereby to stability and peace in the region and world at large. The ECO and SAARC have potential to emerge as vibrant, dynamic bloc and possess all the ingredients to develop into cohesive economic community. The latest developments in global politics are the readjustment and multiplication of relations with more than one power. The policymakers and strategist have pointed out the new pattern of global alignments that have emerged in the region. The old characteristic of allying with one at the cost of the other is vanished with the new set of bilateralism, alliances and partnerships. American cooperation with India that brings the two countries very close shows that Pakistan has not been left out or ignored. Americans are building alliances and marriages of conveniences and the same is being done by the Russians and Chinese. Iran, India and Pakistan are trying to have friendly and cordial relations with all emerging powers despite chronic differences. Pakistan has renewed friendly relationship with Russia despite close alliance with United States. On the other side, the Indo-China rapprochement has also yielded some significant economic and political dividends. India’s growing relationship with China should be seen in this context. Similarly, Pakistan has cordial relations with China. This is a departure from the traditional mindset of Asian politics of rivalry. The era of reform has witnessed gradual and important changes in Russian and Chinese foreign and security policymaking institutions. Russia and China has maintained cordial relations with Iran despite US pressure. The countries of Saarc and Eco are also evolving new linkages and alliances and seeking newer roles in the region and beyond keeping in view their own national interests. The changes have taken place because of their altered domestic, regional and global agenda driven by security and economic compulsions and impulses. In the past, because of ideological, economic and strategic reasons, major parts of Asia have been locked in a strategic struggle and maneuverings of trade and business. Strategist predicts it and economist that 21st century will be dominated by Asia. The traditional Asia is undergoing most important transformation with China being held as the powerhouse for growth in Asia. A new information technology giant in the shape of India, with rapid industrialization, new attractive patterns of investment and regionalisation of economy is emerging. The slogans for common Asian currency are directly or indirectly helping major actors of Asia to get closer. Keeping in view the dynamics of regional and global economic politics, new understanding of inter-regional and intra-regional relations and cooperation is developing. As the security paradigm is changed and economic needs influence major shifts in foreign relations, all the regional countries realize the increasing significance of business and commerce among themselves. The perception that the cutting edge of any country’s external policy will be commerce and business is gaining ground. Future survival strategies are to be different from the past practices and the need is felt by all to face the challenges rather than the prisoner of the past and victims of the coming changes. Despite a lot of rhetoric about Asian solidarity in the late 1940s and, early 50s, it never materialized because of the complicated impact of cold war politics on the region. “The cold war era was characterized by ideological and regional tensions (the tension between India and Pakistan, China and India, and Russia and China and Russia and United States). There was little commercial cooperation among the Asian countries and their trade linkages were oriented outwards”. The vision of Asian solidarity is being realized in an unexpected way through increased economic cooperation within the Asian continent. The regional organisations of Asian continent are striving in that direction. The creation of ASEAN in 64, SAARC in 85, RCD in 64, ECO in 85 and SCO in 2001 are vindication of such dream of collective Asian economic and strategic cooperation. The slow but sustained growth of the Asian economies has led to many new far-reaching ideas being discussed and materialized. These include the creation of an Asian economic community and a common currency for Asia, similar to the Euro. The Saarc countries are contemplating common currency and common market. This will be a sort of new social, economic and political transformation taking place in Asia for the first time in the annals of Asian history. Trade, investment and production will determine the cadence of Saarc countries. Pakistan has followed the look west policy as it was depended heavily on the US, Europe and the west dominated monetary institutions for sustaining its economy and protecting its sovereignty. Pakistan is member of Saarc, Eco and Asean regional forum. Keeping in view the newly emerging geo-strategic and geo-economic trends Pakistan can no more depend on its ‘only looking to the west policy. Indian policy of look east policy has yielded results as that region accounts for 45 per cent of its external trade. Indian analyst C. Raja Mohan has aptly said, “Asia mattered only verbally in the past articulation of Indian foreign policy. Now it is a throbbing commercial reality behind India’s diplomacy”. India is an important and powerful member of Saarc, APTA, Asean regional forum, BIMSTEC, and Mekong Ganga Pact. The Chinese economic performance has compelled and enticed its regional foes and friends to go for a collaboration and accommodation policy rather than competition and futile fighting. India is a point in case. Not only has India rewritten its trade rules with China but also go soft while resolving political and territorial irritants with China. India’s economic potential, vast market and its future prosperity seem to have prompted China to reciprocate and cultivate friendly relations with its former hostile neighbour. Sino-Indian relations have indeed undergone a major transformation during the last couple of years. China an important and powerful member of SCO is exploring ever-expanding areas of cooperation and partnership with the countries of Saarc and Eco. India is larger and bigger than each of its neighbours is or even all of them put together in Saarc region. The successful 12th Saarc summit in Islamabad in January 2004 and the commencement of composite dialogue on its sideline and commitments by both India and Pakistan to move ahead reflects the optimism that the South Asian tortoises will finally catch. At least the air of acquiescence on the fate of such a race, which prevailed a decade ago, has been lifted and some light at the end of tunnel is becoming visible even to the cynic. What is even more significant is that the two important members of Saarc seem to be inclined to travel on a parallel path rather than on a collision course. However, the journey for both on the path of development ahead is going to be long and convoluted, although it could become considerably less strenuous once they begin to rebuild the bilateral and multilateral avenues of peaceful interdependence. Both Pakistan and India need a peace dividend from reduction in level of military confrontation. The original members of Eco are equal in many ways. Working together with all Saarc countries, Eco and Sco countries will be a new economic experiment and will ensure strategic and economic understanding and a sense of mutual dependency for all actors. An interesting characteristic of Saarc-Eco-Sco triangle will enhance their circle of influence in the entire Asia in the shape of trade and economic cooperation. Pakistan’s increasing trade and economic relationship with Iran, Turkey, Russia, China, Afghanistan and Central Asian countries of Eco are to be seen in this context. Greater regional and bilateral economic cooperation between West, North, and Central and South Asian countries can be equally beneficial and far-reaching. Russia and China because of their size and strength will be crucial actors in all future economic groupings emerging in the biggest continent of Asia. Asian solidarity will herald a new dawn of Asian prosperity. With this in mind the Russian, Chinese and other regional countries are focusing on all surrounding regions and enhancing their mutual trade, culture and strategic presence there. There also have been suggestions to expand the Saarc and include more countries within its fold. Afghanistan a member of Eco has been admitted as eighth member of Saarc during 14th Saarc Summit. Iran, China and some Central Asian countries are aspiring to join Saarc. If the countries of Eco and Sco join, Saarc the proffered concept will materialise. Although bitter past misperception do exist, yet keeping in view trade and economic compulsions, their objectives and strategies are now changed, and agreed to constructive engagement. There is visible shift in all countries and recognised that their survival is in larger economic and strategic integration. Russia and China’s policy seems to be more accommodative and cooperative, confrontational approach is being avoided. Recent developments in Russian-Pakistan relations, Chinese relations with Iran and other countries and regional countries started to rely on regional powers suggest that policymakers have adopted a policy that is driven by desire to normalize bilateral relations and develop economic cooperation. Pakistan still has an edge in its relationship with China than other Eco countries with reference to its geographical setting and past relations. India is deprived of the road link with the Eco countries while Pakistan provides the shortest route to Eco and Sco countries through its Port Qasim, Gwadar, and Indus highway and Karakorum Highway (KKK) that are vital arteries for an easy trade access to Central and Western Asia. Pakistan has increased trade ties with Central Asian countries of Eco but with the formation of new economic block, expansion of these ties would get a new boost. At present, most of the Central Asian countries of Eco export their goods through Russia via Europe, which is the longest route and exorbitant. However, after the materializing new arrangement of economic cooperation, it would be the most viable option for these countries that would help them to save money and time in transporting their goods. Pakistan can provide an economical and reliable transit route to the foreign trade of Eco as well as Sco countries toward entire world, contributing to their economic prosperity. Saarc countries close historical links with Eco countries provide an asset for building important and strong relationship. Both are in search of new avenues of cooperation, new lucrative markets and new land, air and sea routes. There is a cultural, civilizational and spiritual revival of traditional warmth in both regions. The essence of this new emerging relationship is the new way of mutual accommodation and the absence of any confrontation. Central Asia has always been the land bridge between ancient sub-continent and Europe. “For more than 2,000 years, Central Asia has been a meeting ground between Europe and Asia, the site of ancient east-west trade routes collectively called the Silk Road and at various points in history, a cradle of scholarship, culture and power. It is also a region of enormous natural resources, which are revitalizing cross-border trade, creating positive political interaction and stimulating regional cooperation. These resources have the potential to recharge the economies of neighbouring countries and put entire regions on the road to prosperity” . South Asia’s view of its neighbourhood has always a trans-Himalayan dimension. That vision carried trade and culture across the Pamirs, through the silk route.