INTRODUCTION AND ACHIEVEMENT OF ECONOMIC COOPERATION ORGANIZATION (ECO)

 

INTRODUCTION AND ACHIEVEMENT OF ECONOMIC COPERATION ORGNIZATION (ECO)

 

Historical Background and Establishment of ECO

 

Regional groupings have been proved substantial service as pacemaker for wide-ranging liberalisation of the world economy.  The twenty-seven member European Community has taken strides toward the establishment of European Union. ASEAN comprised of ten members have performed tremendously in economic cooperation and signed a Free trade area agreement. The North American Free Trade Area (NAFTA) is also enjoying the fruits of free trade area. Similarly, the European Free Trade Area (EFTA) was promoting policies for an easy mobility of goods and services among its member states. However, during the cold War, there was a new momentum for geographically contiguous and culturally homogenous regions to evolve a concerted approach in their development strategies to avoid involvement in confrontation between two powers. International tensions and confrontations of the past were giving way to a novel spirit of constructive competition and cooperation. There was a worldwide inclination towards the adoption of market and export-oriented model of development. “The upsurge of economic liberalization and augmented role of private sector in the economic development is presenting a fresh and unsullied vision for reforms all over the world consistent with new realities”.[i]

 The rising integration of world economies and emergence of trading blocs around the global economic centers and consequential trend towards the incorporation of markets around these centers has added a new momentum to the concept of regional collaboration and regionalization of production and trade as a means of sustainable socio-economic development. No doubt, the post World War II period witnessed several attempts at regional cooperation and integration in different parts of the world with varying degrees of success. This rising global trend towards economic regional grouping has three important causes. First, the formation of the European Community bloc has stimulated the creation of bloc elsewhere. Second, in view of the interlocking of world trade, the small nations with their smaller economies recognize that they cannot exist and defend their own interests. Third, more and more developing countries are endeavouring to denationalize and liberalise their economies, and this can be worthwhile in the long run only if it leads to the creation of a free-trade zone that gives them easier access to the markets of their trading partners.

It was in this perspective that Regional Cooperation for Development, than Economic Cooperation Organisation as a major regional grouping of ten member states assumes a special role, and promises a better future for the peoples of the region. Following its transformation in November 1992 from a dormant and small trilateral entity to a most powerful regional grouping is reckoned with other potential regional blocs. Eco today especially after 9/11 incident is not only the focus of world attention in terms of its geo-political significance and gigantic collective economic potential but also symbolizes the collective aspiration of 400 million people living in the region whose past, present and future are inter-linked.   

A number of global developments have turned the 1990s into an exceptionally dramatic decade of what has been described as the most eventful century in the annals of humankind. International equations had already begun to change in the late eighties with the onset of the US-USSR détente and the collapse of communism in Eastern Europe. The Soviet Union, which had dominated the global scene since 1922, fragmented into 15 constituent units. Significantly, it was not an external factor such as the pre-eminence of other rival powers or a military assault that led to the disintegration of the Soviet Union. It crumbled under the pressure of its own internal problems, grave economic mismanagement, national alienation and political disorientation brought on by years of oppression. “The abortive coup of August 1991 had provided the crucial last blow”[ii].

  The end of cold war, officially proclaimed in 1989, meant that the world had been set free from superpower rivalry, and powers, great and small, had to adjust to the changed realities, which made the emergence of a new world order inevitable.

The international focus shifted from alliances for defence and security to cooperation for peace, development and for human security, for which the logical starting point had to the geographical region. So far the main beneficiaries of the changed political scenario, and a transformed economic environment in the world, have been the developed countries, which have achieved a sizable reduction in defence outlays and proceeded to further strengthen their economic pre-eminence through reinforced regional ties in Europe (through the European Union), North America (through NAFTA) and across the pacific (through APEC).

Economic Cooperation Organization is an inter-governmental regional organization established in 1985 as a “Trilateral organization”[iii] by Iran, Pakistan and Turkey for the purpose of “sustainable socio-economic growth”[iv] and development of the member States. ECO is the successor organization of Regional Cooperation for Development (RCD) that remained active from July 1964 up to 1979.  In 1992, the ECO blossomed into an effective regional Organization and expanded to include seven new members, namely, Islamic State of Afghanistan, Republic of Azerbaijan, Republic of Kazakhstan, Kyrgyz Republic, Republic of Tajikistan, Turkmenistan and Republic of Uzbekistan. ECO, with more than seven million sq km and nearly 400 million people, offers unique opportunities for the overall regional economic, social and strategic development and member states are unwavering to work collectively to employ their combined potential for the betterment of the people of the region.

ECO is a non-political organisation with the sole objective to promote economic interaction. The expanded ECO has acquired the status of an important and dynamic forum. It has provided significant fillip to economic relations among the member states. It certainly has a mutually advantageous and bright future provided the member states; especially the founding members coalesce together and keenly collaborate for a consolidated and concerted action for mutual cooperation.

1.1.1    History of Regional Cooperation for Development

The three founding members of ECO were first linked together in a western sponsored military alliance that was originally called the Baghdad Pact in 1955, but which was renamed as the Central Treaty Organization, or CENTO, after Iraq withdrew from it in 1958. CENTO had developed an economic dimension of cooperation which was being extended only token support by the two western powers in the alliance, namely the US and UK. Following a summit meeting of their leaders at Izmir in 1964, the three regional members decided to establish Regional Cooperation for Development (RCD) in order to provide a framework for multilateral cooperation. The ECO owes its genealogy to its forerunner RCD. “RCD provides the best and the only forum for regular and periodic meeting of minds in the region”[v].

The RCD was viewed basically as an appendage to the US-sponsored military pact “(CENTO), the military grouping of conservative, Pro-Western Middle Eastern states”[vi] interests in the cold war against the Soviet Union and it failed to yield anything tangible other than a badly-built dual purpose road called RCD highway. Its failure to generate any enthusiasm is shown by the fact that though founded in July 1964, RCD’s charter was not finalised by Pakistan, Iran and Turkey until 13 years later, in 1977, through the Treaty of Izmir.

With the anti-American revolution convulsing Iran in 1979, the CENTO was rescinded and RCD put on the back-burner. Following its Islamic revolution in February 1979, Iran, which was host to the RCD Secretariat, dissociated itself from the organisation. Its new Islamic leadership regarded it as a western inspired creation. However, by 1985, Iran recognised the advantage of resuming multilateral cooperation with its two non-Arab Islamic neighbours, Pakistan and Turkey, and proposed the revival of the grouping under a different name. Though revived in 85, it still failed to catch on primarily because of somewhat limited opportunities of mutual trade between the three founding fathers, and they took another five years to amend the Treaty of Izmir.

Since its inception, the RCD failed to play any constructive and important role of cementing regional economic cooperation among its member states. For instance the RCD since its establishment had formulated 81 economic projects out of which 49 were approved and only 17 could be implemented. This raised misgivings “whether there was any genuine interest in cooperation among the three countries with manifestly divergent perceptions of security interests and economic compulsions”[vii].

This lacklustre and poor performance led to a general perception that RCD had failed to “come up to the expectation of the people living in three countries”[viii].

            Indeed, there was a “muted apprehension that the whole thought of a regional economic grouping involving Iran, Pakistan and Turkey was a non-starter since these countries widely differed among themselves in terms of foreign policy orientation, security compulsions and economic philosophy”[ix]. The collectivist pull generated by their shared Islamic identity was further attenuated by the rise of Shiite insurrectionary Islam to power in Iran in the early 1980’s. As entities that were not only geographically contiguous to revolutionary Iran, but had historically displayed Pro-American leaning and a commitment to a non-radical view of Islam, Turkey and Pakistan both felt threatened by the proselytizing zeal of the Ayatollahs in Iran. In view of these divisive tendencies and the absence of favourable and encouraging conditions, it appeared nothing but mere “hyperbole to talk about regional economic integration among these three countries”[x].

It was the collapse of the Soviet Empire that has released the economies of the constituent units, more specifically of the six Muslim republics in the Asian heartland, from their colonial-type bondage to Moscow and freed them to invite external capital and expertise and tap outside markets to revamp their stunted economies. “Fifty five million people”[xi] enjoying per capita income three times Pakistan’s and possessing immense natural resources including gold, oil and cotton and determined to rapidly transform their communist structure into free market economy, provide immeasurable opportunities of multilateral collaboration to their immediate neighbours, especially those they have known for centuries by virtue of religious, cultural and ethnic affinities. Thus, whereas the RCD peaked with the cold war between the USA and the USSR, the ECO celebrated the end of it and gained ground in the teeth of combined opposition from both the powers. And the reason it is gaining ground is that the coming together of ten diverse economies across a common land mass offers far more openings for beneficial cooperation than the original three did. Throughout its existence, the RCD remained confronted with structural and functional intricacies which made it impossible to develop a strong economic regional organisation. In fact, the member countries could not properly streamlined their diversified economic and commercial interests into a meaningful collective philosophy. Moreover, its development activities were deeply affected by the dictates of petro-diplomacy with the result that the member countries could not successfully identify the organisational priorities according to their actual economic requirements. Further, the RCD’s operational confinement to the lengthy procedural bureaucratic complexities could not generate a true concept of regional cooperation amongst the people of member states.

 

Still the RCD continued to exist until the revolutionary leadership which replaced the Shah of Iran and introduced drastic changes in the institutionary network of Iranian society with a view to enhancing the socio-economic well being of the masses initially condemned the RCD as “a product of despotic rule and “offshoot of CENTO”[xii] suspending its operation first for four years and then formally dissolved it in December, 1982.  Since the decision to discontinue the RCD was taken despite an implied reluctance on the part of Pakistan and Turkey to concede to its dissolution, the Iranian regime soon started realizing that the deep-rooted and time-honoured confidence in regional cooperation aimed at the ameliorative improvement in the socio-economic life of the three Muslim states having close cultural and historical ties, cannot be foregone for good. Moreover, the undesirable repercussions of Iran-Iraq conflict (September1979-August1988) on the esprit de corpse feelings of the Muslim world, particularly amongst the non-Arab Muslim states, further intensified the Iranian perceptions for consummation of this confidence.  Thus, recognizing that revival of the regional organisation is a necessity historically rooted in the socio-cultural fabric of the region, the government of Iran suggested to revitalize and regenerate the RDC but with a difference in the name and scope of activities.

Regeneration of RCD with New Name ECO

The Iranian suggestion was materialized in “1985”[xiii] when the foundations of ECO were formally laid down with renewed enthusiasm and objectives. These objectives mainly concentrated upon the reduction of trade barriers with preferential tariff system amongst the member states, joint commercial and industrial venture, joint banking and re-insurance operations, improvement of transport and communication network in the region and exchange of technical, professional, educational, scientific and cultural assistance and cooperation.

Following the end of fratricidal Iran Iraq war in August 1988, the member states realized the need to revitalize the organization to enable it to pursue its objectives. In this context, the Foreign Ministers of Pakistan, Iran and Turkey met in Islamabad in June 1990 to amend the Treaty of Izmir whereby it was decided to raise the level of the highest decision making body of the Organization to that of the Ministers (Council of Minister). After the ratification of the amended Treaty of Izmir, the first meeting of the Council of Ministers was held at Tehran in May 1991 and the activities of the ECO were formally launched. “A breakthrough was achieved at the Tehran meeting of the Council of Ministers of ECO held on 22 May 1991”[xiv]. As part of this process, the Ministers adopted guidelines relating to the working methods of the ECO Technical Committees, signed a protocol on Preferential Tariff Arrangements under which member states agreed to provide 10% tariff reduction on agreed items of trade and decided to hold a Summit meeting in Tehran to provide added impetus to ECO’s activities. In order to boost trilateral economic cooperation among them, the three countries signed a protocol that promised to reduce custom tariffs by ten percent. “They also agreed to work jointly for the establishment of an investment and development bank that would be used as a vehicle for investing in ECO’s joint projects in conformity with internationally accepted financial regulations”[xv]. These important decisions were formalized into specific agreements at the second meeting of the Council of Ministers held in Ankara.

The ECO was shaped with a very strong and effective organisational edifice with “Council of Minister,”[xvi] established under article VI of the treaty of Izmir originally signed by Iran, Pakistan and Turkey and amended in 1990 and 1992 as the basic Charter of the Economic Cooperation Organization, at the top assisted by “Council of Deputies and Regional Planning Council”[xvii] supported with several technical committees and specialised agencies having a permanent secretariat in Tehran, Iran. The technical committees conduct either on the advice of the secretariat or on the directive of the Council of Ministers. They studies, researches and surveys in their respective fields and generate concrete proposals for achieving better mutual cooperation and joint ventures. These proposals are reviewed and finalised by the Council of Deputies and the Regional Planning Council for submission to and approved by the Council of Ministers. The Council of Minister takes the policy decisions and issues directives for the implementation of the finally approved programmes and schemes. Parallel to these developments, the collapse of the Soviet Union and the emergence of new independent republics in Central Asia and the Caucasus marked a new watershed in the regional approach to economic cooperation. The newly independent republics evinced an immediate interest in joining the economic cooperation organisation.

With the collapse of the former Soviet Union in December 1991, five Central Asian states emerged on the international scene as independent states. The people of these countries were deprived of the right for independent determination of their fate, choice of priorities and strategy of their own social, economic, spiritual and cultural well being. The subsequent events have proved that neither the decades of alienation nor the vicissitudes of historical fate have succeeded in quelling their urge for rapprochement. In reality, such a craving was necessitated by the geographical continuity as much as centuries old commonality and mutuality of interest. Extraordinary session of the ECO Council of Ministers was held in Islamabad on November 28 & 29, 1991. The ECO Ministerial Conference marked the formal expansion of the ECO. This makes “ECO the second largest regional grouping in the world, with a population of 300 million and strategically located region extending 4500 km from Balkans to the Himalayas. The coming together of these diverse countries on the basis of historical and cultural links rooted in their Islamic identity generated feelings of satisfaction in the Islamic World”[xviii]. 

In fact, it was a memorable and momentous event as the organisation was enlarged. “Since its expansion in November 1992 from a trilateral entity to a major regional organisation of 10 member states, ECO is focus of world attention in terms of its geo-political significance and vast combined economic potential”[xix].  Infact Pakistan was the first country that made offer to the Central Asian republics, soon to be followed by Iran and later by Turkey. All three founding members of ECO whole heartedly welcomed the Central Asian Republics into the ECO system. The ECO corresponds to the boundaries of the ancient region which lent prosperity and civilization to its people through fruitful exchanges along the historic ‘Silk Route’. The people of these lands have a shared history and common spiritual and cultural identity. The human and natural resource potential of the vast region is great but political barriers and differences in socio-economic policies prevent the optimum utilization and realisation of this available potential. The people of this region are united in freedom. They are committed to pursue a joint course of action for economic development under the august banner of ECO.

ECO reflects the aspirations of 400 million people bound together by a shared common heritage and culture.  Within the vast area, the ECO region has a unique potential parallel to none in the world. It can become one of the major cooperative endeavours in the contemporary world. “The member countries have a lot in common; besides being geographically close and economically resourceful, they partake of a rich cultural heritage of general Islamic orientation”[xx]. With the amalgamation of five sovereign and independent Central Asian Republics as well as Azerbaijan and Afghanistan, “ECO emerged from the remains of three-member RCD as a more vigorous and dynamic group of countries, endowed with vast natural potential”.[xxi] These Central Asian Republics, Azerbaijan and Afghanistan as a demonstration of their determination to procure their economic, historic and cultural affinities with the people of Pakistan, Iran, and Turkey have joined the ECO during the first Summit held in Tehran in February 16-17, 1992. Thus ECO became a major grouping of 10 member states with enormous national potential and new geo-economic opportunities. “Their inclusion in the Organization has enhanced the prospects of close economic collaboration among the member states”.[xxii]

As we know, the collapse of the former Soviet Union had a deep impact on the political and economic landscape in Central Asian and South Asia. The former Central Asian Republics and Azerbaijan, on assuming their rightful place as independent and sovereign members of the international community spontaneously looked towards Iran, Pakistan and Turkey as their natural partners sharing with them not only geographic propinquity but also a common urge for effective utilization of their vast natural and human resources. They joined ECO, with their own free will, as full members in 1992 and have since then been playing an important and active role in giving a new dimension to the process of regional cooperation within the framework of an expanded ECO. With the induction of the five Central Asian republics in the ECO, the organisation has certainly acquired a new momentum. Besides bringing over 30 million people inhabiting these states into the ECO ambit, this development has opened up immensely vast vistas of regional cooperation, a development which, if grasped properly and handled judiciously could radically transform the entire spectrum of life in the region in a very short span of time.

The addition of the seven new states to ECO has to great extent altered the very character of the organisation.  These seven new states placed their burden on the older machinery and it is expected that the sheer size of these states, “when combined together, will pull back their energy to the advantage of Asian countries. These Central Asian states will not only redefine their relations with Russia but will also have a great say in restructuring the order of ECO”.[xxiii] Truly the ECO countries were like a divided family that has reunited together on 25th November 1991.

The enlargement of ECO was the first step towards giving new opportunities to Landlocked Central Asian states for a new approach to development. Their joining was not necessarily the consolidation of a new Islamic bloc as feared by some quarters because the perception of Islam by all these countries is not the same. They are all, no doubt, Muslim countries but they have joined not necessarily to espouse a particular brand of Islamic ideology because such a type of brand does not exist. On the other hand, there are many things common in history and culture among these ECO countries and their coming together in one organisation has great prospect of promoting economic relations and reducing political tension in the region. Together they have a bright future to give a new meaning to their history and to reassert their role in reshaping the greatness of Asia. The ECO is the second largest grouping of Muslim countries after Organisation of Islamic Countries.

In fact, the expansion of ECO is itself testimony to the fact that within the first year of their attaining independence, the Central Asian States have taken two major political decisions, which, in turn, was indicative of their future political orientation. The first was their willingness, readiness and keenness to accept Pakistan, Iran and Turkey as political players in the region. During the very first year of their independence, the Presidents of Kazakhstan and Uzbekistan had visited Pakistan and Iran, despite pressures from United States.

The other major political decision of the Central Asian republics was to join the ECO which slots them economically and politically in a new identity as Asian and Muslim countries seeking closer contacts with their brethren to the South. This gravitation towards the Muslim world was natural given the fact that Slavic states are showing their own solidarity and the Baltic States integrated themselves into Europe. These Landlocked Central Asian states had taken this political decision to join ECO despite the fact that some of them, particularly Kazakhstan, Kyrgyzstan and Tajikistan have large Russian populations at 38%, 28% and 10% in these Republics, respectively.  On its part, “ECO has not only facilitated their smooth integration with the international community but also provided them a mechanism to explore and promote vital means of mutually beneficial economic cooperation both within the regional and with the outside world”[xxiv].

Over the past 17 years, the member states of ECO have been collaborating and coalescing to accelerate the pace of regional economic and social development through their collective endeavours. Besides, common cultural and historic affinities, they have been able to use the existing infrastructural and business links to further fortify their resolve to transfer their hopes and aspirations into a tangible reality. ECO has become an important regional organization and, undoubtedly, it has strived to procure its goals with the staunch support of its member states. ECO has successfully gained momentum to revitalize itself in the international arena and will continue its demonstration towards new heights to serve more effectively in the interests of Member States. The ECO region is replete with vivid trading prospects. Despite its young age, it has been able to transform into a thriving regional organization. Its international stature is enhancing with the passage of time. Nevertheless, the organization is confronted with daunting problems and challenges with respect to realization of its objectives and goals. The brains who bore the idea of RCD, the predecessor of the ECO, or the signatories of ‘Treaty of Izmir’ could not have dreamt that the organisation they were creating, would take a new shape one day to become the second largest regional economic grouping, one after the bloc of European Union. The intent was to build a solid base of cooperation in the socio-economic and cultural spheres.

Recalling the political and economic developments in the world and, especially in the region, resulting from the collapse of communism, the first summit emphasized the realization of ECO’s economic and infrastructural goals with due regard to the ever-increasing role of the economy in the world policy-making. In order to forge closer economic and commercial ties, the leaders of ECO countries decided to adopt “a protocol on preferential tariffs and decided to continue their efforts for the elimination of all trade barriers and subsidies among the member states at the earliest”[xxv]. The Tehran summit also underscored the need for the creation of a modern and efficient infrastructure not only linking the member countries with one another but also providing them access to markets outside the region. The Tehran Summit urged the members to take a joint initiative towards boosting trade and cooperation in the fields of transport, telecommunication, etc.  The Tehran Declaration issued at the end of the summit on February 17, 1992 called for return of peace to Afghanistan and offered full support to efforts for an early political settlement acceptable to the Afghan people. It also called for an equitable and durable settlement of the Palestine question, based on the restoration of the inalienable rights of the Palestinian people.

Despite low level of technological and industrial development, it is a resource-rich area with a strategic location, laying at the crossroads that link Europe with the Asia-pacific region. Further, unlike SAARC which remained hamstrung by multifaceted political and territorial conflicts and disputes among member states, ECO is a much more cohesive bloc which is fortunately devoid of a regional bully like India. The members of ECO have a lot in common: besides being geographically close economically resourceful, they partake of a rich cultural heritage and a general Islamic orientation. In fact, they constitute a single civilization. Their cultures are permeated by common faith.  At a broader level, this phenomenon of the horizontal expansion of ECO, encompassing 400 million people and a vast geostrategic area is also reflective of the rising worldwide trend toward economic bloc formation.

 

1.1.3    ECO SUMMITS

Ten ECO Summits have been held since its re-emergence. First on 16-17 February 1992 at Tehran, Second on 15 July 1993 at Istanbul Turkey, Third on 14-15, May 1995 at Islamabad, Fourth on 14 May 1996 at Ashgabat Turkmenistan, Fifth on 11 May, 1998 at Almaty Kazakhstan, Sixth on 10 June 2000 at Tehran, Seventh on 14 October 2002 at Istanbul, Eighth on September 2004 at Dushanbe Tajikistan and Ninth Summit was held in Baku Azerbaijan on 6 May 2006. The tenth Summit was held in Tehran on March 12, 2009. An extraordinary summit was also held at Ashgabat Turkmenistan on May 14, 1997.

 1.2.     Aims and Objectives of ECO

            ECO has completed 16 years of its successful life. The “purpose of ECO is to promote multidimensional regional cooperation and to create conditions for sustainable socio-economic growth and development. Promotion of intra-regional trade, development of transport and communications infrastructure, economic liberalization and privatization; mobilization and utilization of ECO region's material resources; effective use of agricultural and industrial potentials as well as regional cooperation for drug control and environmental protection are among objectives of the Economic Cooperation Organization”[xxvi].

Its aims and objectives as its modes of operation are identical to those of its forerunner, RCD. The aims and objectives according to the provisions of ‘Treaty of Izmir’ originally signed at Izmir, Turkey on March 12 1977 and amended in 1990 and 1992 as the basic Charter of the ECO is following. According to “Article 11of Treaty of Izmir the objectives”[xxvii] are:

 To promote conditions for sustainable economic development and to raise the standard of living and quality of life in the member states through mobilization of economic and social potentials of the region.

 To take measures towards progressive removal of trade barriers within ECO region and expansion of intra and interregional trade, keeping in view experiences in other regional and global economic trends.

 To pursue in line with the basic aspirations of the member states, increased economic cooperation in order to secure greater role and contribution of ECO region to the growth of world trade and removal of iniquitous trading policies resulting in adverse terms of trade for the developing countries, particularly for the member states.

 To provide for gradual and smooth integration of the economies of the member states with the world economy to ensure their fuller participation in the globalization process.

 To promote active regional collaboration and mutual assistance in economic, social, cultural, technical and scientific fields.

 To accelerate development of transport and communications infrastructures linking the member states with each other and with the outside world.

 To promote integration of public and private sector activities with emphasis on economic liberalization and privatization toward increased participation of the private sector in the regional economic development through joint ventures and investments.

 To develop joint programmes for human resources development in ECO region.

 To intensify mobilization and utilization of ECO region’s natural resources in particular energy resources.

 To enhance efforts for effective utilization of the agricultural and industrial potentials of ECO region.

 To develop regional cooperation to eradicate drug abuse.

 To facilitate cooperation in the fields of ecological and environmental protection within the region.

To promote mutually beneficial interaction and cooperation between ECO and other regional and international organizations as well as financial institutions.

 To further, strengthen historical and cultural ties among the peoples of the ECO region as well as exchanges in the field of tourism.

 

1.2.1                Principles of Cooperation

According to the “Article 11 of the Treaty of Izmir”[xxviii] regional cooperation within the framework of abovementioned treaty shall be based on the following principles and policies: - Sovereign equality of the member states which shall fulfil in good faith, the obligations assumed by them under this treaty, based on mutual advantage, without prejudice to their bilateral and international obligation. Linking of national economic development plans with ECO’s immediate and long-term objectives to the extent possible. Joint efforts to gain free access to markets outside the ECO region for the raw materials and finished products of the member states.  Effective utilization of ECO institutions, agreements and cooperative arrangements with other regional and international organizations including multilateral financial institutions. Common endeavours by the member states to develop a harmonized approach, in order to enhance their participation in regional and global arrangements.  Cooperation among member states in pursuance of strategies based on realistic and gradualist approaches, taking into the existing potentials and resources within ECO as well as differences in the levels of member states economic development and due regard to the agreements and arrangements made with other regional and international institutions.

 Exchanges in educational, scientific, technical and cultural fields.

            The member countries are taking all necessary measures and policies for the accomplishment of the established aims and objectives of the ECO with view to give a long-term perspective to ECO collaboration.

1.2.2    Organs of ECO

The tasks entrusted to the Economic Cooperation Organization are performed by the “Council of Minister”,[xxix] “Council of Deputies”[xxx] , “Regional Planning Council”[xxxi], “Technical Committees and Specialised Agencies”[xxxii]. The Cosuncil of Minister is the principal policy and decision making body. It comprises the Ministers of Foreign Affairs of the member states. The Council of Deputies comprises the concerned Director General of the ministry affairs of Iran and the Ambassadors of member countries in Iran. It is permanent body. It is responsible for carrying out policies; formulating issues requiring decision by the member countries and taking appropriate steps to implement the decisions of the Council of Ministers. The Regional Planning Council considers and evolves a programme of action for realizing the objective of the organisation for submission to the Council of Ministers for approval along with a review of the past programmes and evaluation of the results achieved. It prepares an Annual Economic report and analyzing the economic trends in the region.

1.2.3    Technical Committees

There are eight Technical committees deal with relevant subjects. The activities of the ECO are carried out by these technical committees. Their nomenclature indicates work assigned to them. These are (1) Committee for Economic and Commercial cooperation (CECC); (2) Committee for cooperation in the fields of Transport and Communication (CCTC): (3) Committee for Technical and Industrial Cooperation (CTIC):  (4) committee for Agricultural Cooperation (CAC): (5) Committee for Educational, Scientific and Cultural Cooperation (CESCC): (6) Committee for Cooperation in the field of Energy (CCE): (7) Committee for Cooperation in the fields of Infrastructure and public works: (8) Committee on Narcotic Control Abuse and Illicit Trafficking (CCNAIT).

ECO, with more than seven million square kilo meters and nearly 400 million people, offers exceptional opportunities for the overall regional economic development and Member states are resolute to work together to employ their combined potential for the betterment of the people of the region. The purpose of ECO is to promote multidimensional regional cooperation and to create conditions for sustainable socio-economic growth and development. Promotion of intra-regional trade, development of transport and communications infrastructure, economic liberalization and privatization; mobilization and utilization of ECO region's material resources; effective use of agricultural and industrial potentials as well as regional cooperation for drug control and environmental protection are among objectives of the Economic Cooperation Organization.    In the past 17 years, ECO has come up with many projects in such areas as Transport, Trade, Energy & Environment, Agriculture and Industry. Ministerial meetings have been organized in various fields to put forward constructive measures to obtain full advantages of the new opportunities unravelling in the region. ECO has established very close working relation with the United Nations and its affiliated agencies. The ECO have been able to institutionalize and expand relations and cooperation with other International and regional Organizations and more than 15 Memorandums of Understanding have been signed. ECO is getting international assistance for various projects particularly in the field of Drug Control and Interconnection of Power Systems of ECO Member States. In spirit of cooperation and regional solidarity among the Member States, ECO Heads of States at the 8th Summit in Dushanbe adopted the modalities for establishing ECO Fund for Reconstruction of Afghanistan and appealed to all Member States to generously contribute to this Fund. However, the main challenge for ECO Member States remains to develop their economic potentials through regional cooperation on the basis of mutuality of benefits. According to the Economic Strategy for the ECO region, special efforts towards regional cooperation shall be concentrated on transport and communication, trade and energy, which are three pivotal development factors in our region. 

ECO has become a major regional organization and, undoubtedly, it would achieve its goals with the support of its member governments. ECO has gained momentum to revitalize itself in the international arena and will continue its demonstration towards new heights to serve more effectively in the interests of ECO Member States. The 15th Session of the Council of Ministers of ECO Countries was held on 1st October 2005 in Astana, Republic of Kazakhstan.  The Council of Ministers, inter alia, adopted the ECO Vision 2015.  This will serve as basic policy guidelines for ECO activities in the next ten years and sets targets to be achieved in the fields of trade, transport, energy, health and environment, etc.  The ‘ECO Vision 2015’ will be a guideline for the future plan and program of ECO to bring this organization in conformity with the role, that it should play as a dynamic regional organization, capable of leading its Member States. Over the past 17 years, the member countries are vigorously struggling to accelerate the pace of regional cooperation and development through their collective endeavours. Besides the common historic and cultural affinities, they have been endeavouring to expand infrastructural and commercial links to fortify the mutually beneficial relations among themselves.

 

 

1.3       INTRODUCTION OF MEMBERS

 

See Appendix ‘A’

 

 

Progress in Socio-Economic Field

 

Since the enlargement of ECO, in retrospect, this period can be halved into two periods: Firstly, 1992-1997, in which basic documents of ECO were signed and major agreements and plans of actions were adopted. Second period covers 1997 to date, during which ECO has embarked upon a restructuring process where sectoral directorates replaced the previous system of technical committees on major areas of cooperation. Therefore, the latter period can be seen as the tentative stage for striving to implement the previously adopted projects and programmes. From such a perspective, completion of some border crossing facilities, road and railway connections, ECO road and railway network map, bringing the Almaty-Tashkent-Ashgabat-Tehran-Istanbul passenger train on the verge of operational stage, initiation of container trains on regular basis from Almaty to Turkey via Iran, institutionalization of cooperation among the concerned authorities such as holding of ministerial meetings in the fields of energy, trade, agriculture and transportation, establishment of cooperative relations with relevant international organizations and jointly embarking on several projects on energy, trade, transportation, agriculture, drug control, and capacity building are the salient achievements of ECO.

 The three founding members have developed many projects and established institutions for mutual benefits. Over the years, the ECO has evolved measures to facilitate trade by reducing tariffs, establishing an ECO Trade and Development Bank and an ECO chamber of Commerce. The established structures are extended to operate on a much larger scale and with greater vigour. In a meeting held in Quetta on February 6, 1993, the Council of Ministers of ECO adopted guidelines for a Plan of Action, which was aimed to achieve its objectives. The Plan of Action included establishment of an infrastructure of roads, rail and airline to support growing economic activity within ECO, expansion of port facilities to handle the sea-borne trade of the region, improvement of postal system, manufactures of different component of telecommunication equipment by regional countries. Since the beginning of the new millennium, holding of three Ministerial Meetings on Environment reaffirms member state’s collective commitment to respond to the regional environment problem, which has become the most challenging task not only for the Eco region but also for the entire world.  

            The member states of Eco also decided to make trade within the region a major component of their total trade volume and work towards the elimination, as far as possible, of tariff and non-tariff trade barriers and other related restrictions to devise a uniform system of custom procedure and facilitate travel of businesspersons within the region. The ECO since its inception has accomplished diverse achievements in mutually agreed areas of cooperation. The ECO has accomplished many pro poor projects, which are yielding results. The ECO since its inception has accomplished enormous achievements in all agreed areas of cooperation enshrined in its charter. The achievements in all sectors are analysed below:

1.4.1    Trade and Investment Sector and Removal of trade Barriers

The ECO has identified trade as one of the priority for regional cooperation among ECO member states. In this regard, recalling the Treaty of Izmir, founding charter, taking measures towards progressive removal of trade barriers within ECO region and expansion of intra and inter-regional trade, constitute one of the most important objectives of ECO. The intra regional trade has been increased by leaps and bound. The ECO countries had committed to gradually reduce tariffs to the extent already agreed in ECO Trade Agreement (ECOTA) and remove para tariffs and non-tariff barriers in trade among the ECO member states by the year 2015 so as to increase intra-regional trade from the present level of 6% to 20% and are determined to move towards establishment of a Free Trade Area in the ECO Region as a priority task. Therefore, ECO countries are working in collaboration to the ratification and the implementation of ECOTA and ensure the active participation of member states in liberalization of trade policies, harmonization and coordination of customs laws and regulations and simplification of visa procedures particularly for the businessmen.

The adoption of ECO Trade Agreement (ECOTA) in letter and spirit would lead to removal of the non-tariff barriers, essential for promotion of intra- regional trade among the ECO Member States.   ECOTA will provide the ground for establishing a Free Trade Area in the region by 2015, which was adopted by the 8th ECO Summit, held on 14 September 2004 in Dushanbe. The ECO countries have signed an agreement to promote trade, vital for development, “among member countries by gradually reducing tariff barriers against each other to a level of 15 per cent over a period of the next eight years”[xxxiii]. This agreement is indeed a significant step towards the ultimate “goal of converting the region into a homogeneous economic zone”[xxxiv]. The benefits of achieving such a goal for the people of region are colossal as demonstrated by the prosperity and level of development the European Community has attained since the member countries formed themselves into a common market. Member countries of North American Free Trade Association (NAFTA) and that of Association of South-East Asian Nations (ASEAN) have also experienced similar economic success since they grouped themselves for multilateral cooperation.

The ECO Trade Agreement would attempt not only to reduce the tariff to 15 per cent in coming years, it also envisages a wider range of goods to be traded among the member countries to form at least about 80 per cent of the total goods they trade with the outside world. The agreement also has articles concerning dumping and intellectual property rights. It is a comprehensive agreement having about 40 articles, including safeguards against any threat that the agreement may pose to the economic interests of individual member countries. Appropriately, the member countries have agreed under the accord to set up a cooperation council to oversee the implementation and monitoring of the agreement. The implementation of ECO Trade Agreement (ECOTA) “would enhance the trade relation among ECO Member States which, at present, is approximately around 5.6 percent of their total foreign trade”[xxxv]. The leaders of ECO “welcomed the finalization of ECO Trade Agreement (ECOTA) and called upon the members States to sign and ratify this agreement expeditiously and establish a Free Trade Area in the ECO region by 2015”[xxxvi]. 

The Ninth ECO Summit held in Baku “reaffirmed their commitment to establish a free trade area in the ECO region by 2015 as a priority task, welcomed ratification of the ECO Trade Agreement by Afghanistan, Pakistan and Tajikistan and called on signatories that had not yet ratified the agreement to do so, and the non-signatories to expedite signing the agreement”[xxxvii].

 1.4.2   Visa Agreement for Businessmen:

The ECO member countries signed “Visa agreement in 1995 during the 3rd ECO summit meeting intended to facilitate the travel of businessmen within the ECO region”[xxxviii].

 The agreement was ratified by Iran, Kazakhstan, Pakistan and Turkey and entered into force in March 1998. The visa agreement has facilitated the movements of people and businesspersons in the region and provided access facility in member countries. This facility has enhanced the trade and socio-economic activities.

 

1.4.3    Intra ECO Customs Cooperation

            The ECO Heads of Customs Administrations have been conferring annually since 1993. These meetings serve as a useful forum for the interchange of information on both regional and bilateral relations. The issues of transit, cooperation against smuggling, human resource development, and upgrading of major border-crossing facilities will continue to be the main agenda items of cooperation in ECO. This process has already been institutionalized under the Council of ECO Heads of Customs Administrations.

 

1.4.4    Trade and Investment Information Networking

The ECO member countries are aware of the fact that the exchange of information on trade and investment opportunities provides an enabling environment for expansion of trade in the region. ECO TRADENET has been instituted. In order to improve the contents and make it operational, the ECO Secretariat is in contact with ITC, UNDP, ESCAP and trade promotion organizations of the member states. 

 

1.4.5    ECO/ITC Project: Expansion of Intra-ECO Trade

The ECO has launched in the year 2000 Joint ECO/ITC project aimed at promoting ECO region’s trade through organizing Buyers-Sellers Meeting (BSM). The project has produced a positive impact on intra-regional trade and in enhancing business links among the private sector enterprises of the Member States. The project is jointly being sponsored by ECO, ITC, and UNDP. The 1st BSM was held in respect of textiles & clothing sector in Istanbul, Turkey on 17-18 October, 2001, preceded by demand/supply surveys in the subject sector in each of the Member States except Afghanistan, Tajikistan and Turkmenistan. About 100 companies from Azerbaijan, Iran, Kazakhstan, Kyrgyzstan, Turkey and Uzbekistan participated.

The ECO has identified four other sectors namely, food, electrical equipments, building materials and auto parts which are high trade potential sectors. Findings and recommendations of BSMs will form the basis of “Medium-Term Trade Promotion Programme” of ECO. The project has brought a practical pay-off to the ECO trade cooperation. The Ninth Summit “noted with satisfaction the efforts of the ECO Secretariat to encourage participation of the private sector in its programmes and activities for enhancing the ECO intra-regional trade. In this regard, they appreciated the successful completion of the 1st phase of the Joint ECO/ITC Project on expanding intra-regional trade. They welcomed the allocation from the ECO Feasibility Study Fund (FSF) and the pledges made by the Turkish Government for financial and technical assistance and asked the Organization to undertake the 2nd Phase of the Joint ECO/ITC Project”[xxxix]. The leaders of ECO also agreed to give a new impetus to the activities of the ECO-CCI by means of establishing a permanent secretariat and developing an action plan for it.

 

1.4.6    ECO Trade and Development Bank and Reinsurance Company

The ECO signed in 1995 during the 3rd ECO summit meeting, and Iran, Pakistan and Turkey are the signatories of the Agreement on the establishment of the Bank and Reinsurance Company. Pakistan, Iran and Turkey have ratified the Bank Agreement. The ECO bank was established with equity from Iran Pakistan and Turkey, who are equal partners in the Bank. The objective of the ECO Bank includes “initiation, promotion and provision of financial assistance to extend intra-regional trade to accelerate economic development and improvement of infrastructure in the three countries”[xl].  The Ninth ECO Summit noted with satisfaction the entry into force of the Articles of Agreement on ECO Trade and Development Bank and asked the Board of Governors to take necessary steps to make the Bank operational”[xli].

1.4.7    ECO Chamber of Commerce and Industry (ECOCCI)

The ECO has established ECO Chamber of Commerce and Industry (ECOCCI) in 1993 with the objective of establishing closer relations between private sectors in the member countries, ECOCCI has been active, particularly in the field of transit transportation, by contributing to the formation of ECO Passage Document and holding 1st ECO Trade Fair in Bandar Anzali in 1998.

1.4.8    Transport and Communications

The development of international passenger and fright railway traffic in the ECO region is one of principal objectives of the ECO set forth in Almaty Outline Plan for the development of transport sector in the ECO region and the Treaty of Izmir. The objectives for the development of transport infrastructure in the region were further set out in the Quetta Plan of Action, adopted by the ECO Council of Ministers in February, 1993. These objectives were reinforced in the ECO’s Long Term Perspectives (Istanbul Declaration), endorsed by the 2nd ECO Summit, in July, 1993. Following this the ECO Ministers of Transport and Communications meeting (in October, 1993) adopted the Almaty Outline Plan for the Development of the Transport Sector in the ECO Region. Three Ministerial meetings i.e. first at Almaty (Kazakhstan) October 1993, second at Ashgabat (Turkmenistan) March 1998 and third at Islamabad (Pakistan) April 2000 focusing on Transport and Communications planned specific actions and measures to be pursued by the member states to ensure smooth movement of goods, equipment and people in ECO region. The necessary political push provided by these Ministerial meetings put a multi-faceted strategy in place to implement the Quetta Plan of Action, the Long-Term Perspective contained in the Istanbul Declaration as well as in Ashgabat Declaration. But most of the tangible progress has been achieved in the area of improvements in physical infrastructure in the construction of new and missing links and in the upgrading of tracks and infrastructure.  Nevertheless, the member states have achieved their long awaited goal of starting a container train from Almaty (Kazakhstan) to Istanbul (Turkey). It has become a physical functional reality. Many European firms have offered cargo for its onward journey to Germany. This development single handily generated lots of interest in the European commercial circles for the ECO transport operations. Now the ECO member states are pursuing the objective of making this route competitive and efficient.

A through cargo fare and a common ECO insurance policy with minimum possible paper work are being worked out to make its operation acceptable to the business community all over the world. ECO was also able to have a dry run of the ECO passenger train from Kazakhstan to Iran (Almaty-Tashkent-Turkmenabad-Tehran-Istanbul of Trans Asian Railway main line). Its regular service was started in October 2002. The train will get passengers from Kyrgyz Republic, Uzbekistan, Tajikistan, Turkmenistan and Pakistan may carry passengers bound for Syria from Iran. The train is expected to give boost to regional tourism and small businesses all along the rail route.  Putting Tejen-Mashhad-Serakhs railway line came into operation on 13 May, 1996 opened the railway traffic on the northern line of the Trans-Asian Railway of “East-West” Transport Corridor as well as on “North-South” Transport Corridor which in its turn opened railway routes linking ECO countries to the ports of the Persian Gulf and also enhanced railway and road traffic along the “Europe-Caucasus-Asia Transport Corridor”. During the Fourth Meeting of the ECO Committee on Transport and Communications (CCTC) held in Ankara on 5-7 December, 1994, the Iranian delegation took initiative to declare an ECO Decade of Transport and Communications which was endorsed by the Third ECO Summit held in Islamabad on 15 March, 1995. The Fifth Meeting of CCTC held in Ashgabat on 27-29 November 1995 approved the format for submission of the material required to prepare the Programme of Action for ECO Decade of Transport and Communications. The Extraordinary ECO Summit Meeting held in Ashgabat on 13-14 March, 1997 considered the Programme of Action for ECO Decade of Transport and Communications. Thus, the ECO Road and Railway Networks were formed including existing roads and railways as well as those under construction and planned in the past.

Another significant achievement of ECO has been the development of a Transit Transport Framework Agreement (TTFA) signed in May 1998. It is an improvement on the Transit Trade Agreement (TTA) signed and ratified earlier. TTFA has the potential to serve as the key driver of all activities related to the removal of non-physical barriers such as harmonization of operations and regulations and accession by member states to international transport conventions and standards. Measures envisaged in TTFA, including mutual recognition of driving licenses, issuance of multiple entry visas for transport operators, harmonization of customs documentation and procedures are expected to minimize delays related to border crossing.

The ECO Secretariat has implemented a Multimodal Transport Operations study in the ECO region, in collaboration with ESCAP, UNCTAD and IDB. Through cooperation with UNDP, the ECO Secretariat is looking at the eight border points within ECO with the intention of identifying the constraints in ensuring smooth flow of traffic across ECO borders.  Besides these projects, many more conducive initiatives has been taken to develop the transport system which, in the wake of the present thrust for inter-dependent and globalization. A notable project in this regard is the ECO Air Project which had called for the establishment of an ECO Air company with the intention of expanding air travel links among ECO member states. The Ninth ECO Summit called for early “establishment of the Transit Transport Coordination Council (TTCC) to ensure successful implementation of TTFA. They also urged the signatory Member States to ratify and the non-signatory ones to sign and ratify TTFA”[xlii].  The Programme of Action if fully implemented would lead to an increased volume of transportation among the ECO Member States and beyond this region. Already, there is a great demand in the region for a reliable, economical and secure system of goods transportation. These two projects have the potential of enhancing the intra-regional trade in a meaningful way.

1.4.9    Energy

The ECO set up three objectives in the Treaty of Izmir, directly relating to Energy, Minerals and Environment. It was decided to intensify mobilization and utilization of ECO region’s natural resources in particular energy resources, to facilitate cooperation in the fields of ecology and environmental protection within the region and to promote mutually beneficial interaction and cooperation between ECO and other regional and international organizations as well as financial institutions. Energy cooperation is one of the three established priorities of ECO. The ECO region as a whole has a rich resource potential of oil and gas as well as hydroelectric power and is destined to play a prominent role in the energy markets of the world in near future. At the same time, all member states face challenges of ensuring sustainable energy development.

1.4.10 Interconnection of ECO Countries’ Power Systems

The main activities implemented by the ECO in the energy field from 2001 to 2004 were interconnection of ECO Countries’ Power Systems. In pursuance of Ashgabat Declaration (1997) the project of Interconnection of ECO Countries Power Systems was started in 1997.  The project proposal was submitted to a number of financial institutions for their financial assistance.  In year 2000, Islamic Development Bank agreed to provide ECO with a technical assistance grant to be utilized for the project’s feasibility study.  Corresponding agreement was signed between IDB and ECO in the year 2001, subsequently approved by CPR in January 2002. The ECO countries resolved commitment towards establishing interconnection of electric power systems by 2015 in the ECO region to achieve better patterns of production, exchange and trade of electricity, facilitating development of oil and gas pipeline networks in the region to meet the entire region’s energy requirements as well as to provide outlets for access to international markets, and promoting cooperation for the development of new and renewable resources of energy and enhancing of efficiency in energy production and use.

The ECO countries have decided to establish the parallel functioning of electric power systems in the ECO region based on the outcome of the necessary studies in this field with a view to establish intra-regional energy market, boost cooperation in promoting investments to energy sector and promote human resources, exchange of the sector-related technological information and experience.

1.4.11 Minerals

The ECO region is a vast and endowed with abundant natural resources and needs to strengthen cooperation for mineral development. The First ECO Minerals Experts Meeting on Enhancement of Regional Cooperation in Mineral Sector convened on 29-31 October 2001, in Tehran.  A draft Plan of Action for cooperation among the ECO countries in the field of Minerals was drawn and agreed to.  The meeting decided as the first step to prepare and publish ECO Minerals Data Booklet. In the course of implementation of the Plan of Action, which started with collection of data from the member states for the preparation of an ‘ECO Mineral Data Booklet’, a number of specific proposals were made by several member states regarding the cooperation on compilation of different mineral atlases and maps of ECO region, trade of mineral materials and products, exchange of technical and engineering services and joint projects for training and research. The Member States submitted the relevant information for the booklet. In order to facilitate a programme for strengthening the Regional Cooperation in Minerals sector, the appropriate Terms of Reference for the UNDP Technical Assistance was formulated. UNDP helped the ECO Secretariat by assigning a consultant who made recommendations on implementation of ECO Mineral Plan of Action. “The 3rd ECO Mineral Experts Group Meeting held at Islamabad on Dec. 20-21, 2006 focused on this subject. The progress made on decisions taken at the previous two meetings was assessed”[xliii]. The publication of ECO Mineral Data Booklet and a set of new proposals for setting up of a Mineral Data Bank and drawing up a Mineral Distribution Map of the ECO region were discussed. The meeting considered ways and means to draw Foreign Direct Investment (FDI) in this sector and nominated Iran as Project Manager for follow up action.

The ECO countries has decided to expand cooperation in the minerals sector with emphasis on facilitation of the intra-regional trade and investment in this sector and enhanced exchange of the sector-related resource and technological information and experience. It envisaged development of cooperation in the minerals sector with emphasis on facilitation of the intra-region trade and investment in mineral sector, enhanced exchange of the sector related resource and technological information and experience as well as promotion of creation of necessary conditions in the mineral sectors in the member states for enhancing inflows of capital and advanced technology from within and outside of the region.

 

ECO Oil and Gas Pipeline

 

            The eighth RPC meeting (1998) requested the member states that the most suitable export routes from and within the ECO region as per Ashgabat Declaration (1997) be identified.  The High Level Expert Task Group on ECO Oil and Gas Routes in 1999 in Islamabad endorsed the Terms of Reference for the project feasibility study. The first meeting on energy was held in Islamabad (November, 2000) and became an important step for the institutionalizing and enhancing ECO energy cooperation. In the meeting, the member states approved the ECO Plan of Action for Energy/Petroleum Cooperation for the period of 2001-2005, and adopted Joint Statement on Cooperation in Energy/Petroleum in the ECO region. Considering that ECO Power Trading Strategy may be a vital step of development of Regional Energy Trade as recognized by the 10th RPC, the ECO Workshop on Regional Power Trade Strategy was organized on April 24-25, 2002 in Tehran at the ECO Secretariat, with the financial assistance of the Islamic Development Bank. The Iran-India gas pipeline project is surely an inevitable development that will have an enormous impact on the socio-economic and geo-strategic conditions of the ECO and SAARC region. India is constrained by its huge domestic demand of gas, which is 188 million cubic meter per annum. Therefore, strive direly to build pipeline to meet its energy and industrial development needs. Iran is considered to be as the right source as it has the second largest gas reserves in the world and India is very friendly to it. Peace Pipeline that is to transmit natural gas from Iran, a member of ECO to India a member of SAARC via Pakistan also an important member of both regional organisations. The length of pipeline beginning from Asaluyeh in Iran’s Gulf coast to India is 2600 km with cost of $7.4 billion.  Iran-Pakistan-India (IPI) gas pipeline project will “have a strategic bearing on the progress in other areas of cooperation”[xliv]. “The multi-billion dollar gas pipeline project, which aims at supplying natural gas from Iran to Pakistan and then onwards to India, would be a win-win for all three parties”[xlv].

 1.4.13             Environment

            Development and use of natural resources are closely interlinked with Environment; there are a number of areas where the effects on Environment are particularly significant.  Most of these effects were discussed during the events organized with the subject: “Energy Resources Development and their Environmental Impact Assessment”, held during the years 1999-2001. The ECO has decided to intensify cooperation in the field of environment by jointly addressing common concerns and regional problems and taking necessary actions in cooperation with relevant international organizations with a view to contribute to sustainable development and improve the quality of life of peoples. With the accelerating process of urbanization and industrialization resulting in the environment degradation particularly in developing countries, protection of environment is commonly regarded as one of the most challenging tasks of the international community in general, and regional organizations in particular.

            Although ECO had launched some activities in this field in the past, the recent years witnessed the mounting understanding of the need for enhancing the regional environmental cooperation. Protection of the Environment has become a priority for the governments of the ECO member countries and ECO as well. The ECO member states authorities, concerned with the trends of environmental degradation and pollution in the region, are determined to achieve significant success in combating environmental problems in the region. Their determination for enhancing the cooperation in the field of the environment, to jointly address the common concerns and regional problems and take necessary actions in collaboration with relevant international organizations to improve the environment and protect the nature in the region for achieving sustainable development and improving quality of life of its peoples was materialized at the first ECO Ministerial Meeting on Environment that was held on December 2002 in Tehran. The meeting adopted “Tehran Declaration” and a “Plan of Action for Cooperation among ECO Member States on Environment (2003-2007)”, which is a comprehensive plan of activities to cover all main aspects of protection of the environment in the region.

            Subsequently, a Working Group to prepare implementation plans for cooperation in the different fields of Environment, as stipulated by the Plan of Action, was established. According to the decision of the 13th meeting of the Regional Planning Council, the first meeting of the Working Group on Environment established for the Implementation of the Plan of Action for Cooperation among ECO Member States on Environment (2003-2007) was held in April 2004 in Ankara. A number of concrete proposals for implementation of the Plan of Actions made by some member states were discussed and recommended for further pursuance.

            The second meeting of this working group was held in August 2004 in Tehran, which considered the ways and means of the implementation of the provisions of the Plan of Action, new proposals from the member states in this respect, and reviews the follow-up actions already taken. National Focal Points were appointed by all member states to facilitate implementation of the Plan of Action. The cooperation with UNEP and WMO will enhance the environmental activities in the ECO region, open new opportunities for joint activities in the ECO region and facilitate the implementation of the Plan of Action for Cooperation among ECO Member States on Environment (2003-2007). The Ninth Summit held in Baku “expressed deep concern at the continued degradation of environment and underscored the implementation of the ECO Plan of Action in the field of Environment (2003-2007)”[xlvi].

 The Summit welcomed the offer of the Republic of Kazakhstan to host the third ECO Ministerial Meeting on Environment in 2006 and called for active and high level participation in this meeting. The Summit also appreciated the efforts of the Islamic Republic of Iran for the establishment of the ECO Regional Centre for Risk Management of Natural Disasters in Mashad in 2006.

 

1.4.14 Agriculture

            Agriculture sector is of vital importance in the sustainable development and human welfare. Its role in the economies of developing countries and countries with economies in transition is substantial.  According to the Treaty of Izmir, one of the objectives of the Organization is to enhance efforts for effective utilization of the agricultural and industrial potentials of ECO region. Also, the Quetta Plan of Action and the Istanbul Declaration, outlining the long-term perspectives for ECO, give due importance to the ECO agricultural cooperation.

            In view of an urgent need to streamline and prioritize the on-going activities, the Secretariat has focused on food security and agricultural development issues.  Agriculture is the mainstay of the economies of almost all the member states. They also confront similar problems and challenges with enormous capacity to benefit from one another for achieving a common goal of improving the lot of a population growing at an alarming rate. It was in this background that the First ECO Ministerial meeting on Agricultural Cooperation was held in Islamabad on July 23-25, 2002. The Conference focused on the possibilities of cooperation in agriculture, boosting intra-regional trade, food security and various aspects of the WTO regime affecting the agro-sector of the member states. The Ministerial Meeting of ECO adopted the idea of establishment of ECO Permanent Commission for Prevention and Control of Animal Diseases (ECO- PCPCAD). A working group was established which finalized the draft articles of the ECO-PCPCAD and submitted it to the next Council of Ministers (COM) meeting in 2007 for approval; and the ECO Regional Project for Establishment of Regional Centre for Risk Management of Natural Disasters (ECO-RCRMOND). The ECO appreciated Food and Agriculture Organisation’s technical support in the preparation of a Regional Programme for Food Security (RPFS) for the ECO region.

            Specifically, Iran, Pakistan and Turkey have been tasked to coordinate among the member states on areas of drought management, water management, trade promotion, development of post harvesting and processing industry. The ECO has developed a “Regional Programme for Food Security and Agricultural Development for ECO member states” with technical and financial assistance of Food and Agriculture Organisation. The ECO called for closer interaction among ECO agriculture scientists, planners and development practitioners. The Ninth ECO Summit stressed the need for effective measures to overcome the lack of new technologies, the degradation of land and water resources and the growing threat to genetic diversity. The Ninth ECO Summit also welcomed the progress achieved in priority areas of drought management, development of post harvesting and processing industry, water management, trade promotion, and veterinary and livestock.

            The Ninth ECO Summit also “noted with satisfaction the finalization of ECO Regional Program for Food Security with the technical and financial assistance of UN Food and Agriculture Organization (FAO) and preparation of national and regional food security projects and appreciated the signing of ECO/FAO Technical Cooperation Program for strengthening Seed Supply in the ECO region”[xlvii].

1.4.15  Industry

            The ECO Council of Ministers, in the Quetta Plan of Action and Istanbul Declaration in 1993, underscored the importance of the role of the private sector in the industrial development.  The various Summits also proposed to the member states to consider the measures for acquisition of foreign technology, transfer of the existing technologies within the region and the development of feasibility studies in the specific industrial sectors to meet the needs of the entire region benefiting from the economies of scale. The ECO are determined to accelerate the pace of industrial development of member countries and the region and to that end, engaged in cooperation at the regional level, coherent with the ECO Regional Cooperation Strategy of Industry. 

            The ECO has adopted policies and strategies for the promotion and attraction of Foreign Direct Investment in the region in conjunction with effective privatization policies and measures. The ECO is endeavouring to create a stable, prosperous and highly competitive ECO industrial region where there is an environment conducive for freer flow of goods, services, investment and capital for the realization of the ECO Investment Area by 2010 and free flow of investment by 2015. It has promoted a modern and competitive small and medium enterprises (SMEs) sector in ECO, which will contribute to the industrial development of the region. The ECO countries are collectively working to accelerate the development of science and technology including information technology by establishing a regional IT-Network and centers of excellence for dissemination of and easy access to data and information. The cooperation in this vital field would accelerate economic growth in the member countries.

 

1.4.16  Health

            Due to the geographical contiguity of ECO member states, there is a need for close cooperation and monitoring of the state of epidemics and other diseases for adoption of measures to bring down the threat of their spreading from one to another. Moreover, due to the similar economic and social conditions in most of the member states, there is a similarity of problems faced by their health sector. Thus, there is a vast scope to benefit from each other’s experiences in strengthening health facilities for the benefit of the people in the ECO region. In this spirit, the ECO Health Ministers, in addition to their joint session with UNICEF and WHO, had a Consultative meeting on 23 January 1994 in Tehran. The Ministers discussed and finalized a framework outlining the possible areas of cooperation in health sector. The ECO Secretariat, in this respect, has entered into various cooperative relationships with relevant international institutions such as UNFPA and WHO. So far eight activities were jointly held with these organizations; Conference on “Expanding Contraceptive Choice and Improving the Quality of Reproductive Health Programmes” being the last one was held in Istanbul in May 2000. A seminar on HIV/AIDS Disease and Adolescent Health was also held in collaboration with UNFPA to avoid the menace of this fatal disease. The Ninth Summit held in Baku “recognized the need for collaborative preparedness to address health emergencies, including prevention and control of pandemics e.g. Avian Flu, and emphasized the need to develop Regional Strategies on similar cases and strengthening collaboration within and beyond the region”[xlviii].

 

1.4.17 Drug Control Cooperation

            The ECO has established Drug Control Coordination Unit, which is a major policy decision of the ECO member states as part of the Istanbul Declaration adopted by the ECO Council of Ministers in its special meeting held in Istanbul (1993). The Drug Unit has a Plan of Action on Drug to promote coordination of drug control dialogue with ECO member states. To expedite the implementation of the Action Plan, a joint UNODCCP/ECO project “Assistance in Establishing a Drug Control Coordination Unit (DCCU) at the ECO Secretariat” was concluded in March 1998. The first phase of the project funded by European Commission and Japan has been implemented during 1999-2000. The second phase funded by EU and aiming to establish networking among the drug control institutions in the member countries has been agreed with UNDCP.

            With the process of planning well in place, ECO is now poised to budge towards the implementation of the mutually agreed plans. The first few steps of implementation-phase have already been taken during the 3rd ECO Summit held in Pakistan in March 1995 where agreements and basic documents pertaining to several ECO institutions were inked. The ECO has intensify coordinated regional activities, by establishing an institutionalized network for drug demand reduction and combating illicit drug trafficking in the implementation of the ECO Plan of Action on Drug Control. The ECO Summit reiterated its “commitment to create a healthy economic environment through concerted efforts and to harmonize policies for combating terrorism and transnational organized crime such as drug and human trafficking and money laundering that undermine peace and stability in the region”[xlix].

 

1.4.18  ECO’s Cooperation with other regional and international institution

            The ECO since its inception has been successful to consolidate and expand its regional and international stature and image through cooperative relationship with diverse regional and international organisations. The observer status with the UN General Assembly accorded in 1993 made ECO the focus of interest among major UN agencies which are offering to sponsor important projects and activities for the benefit of ECO region. These include; ESCAP, UNICEF, UNFPA, UNDP, UNDCP and UNIDO with whom MoU on cooperation have already been signed. In October 1995, ECO reached another landmark agreement on the occasion of the 50th Session of the UN General Assembly when for the first time a Resolution on Cooperation between ECO and the UN was formally adopted by the General Assembly by consensus institutionalizing an elaborate cooperative relationship between the two Organizations. ECO was also privileged to be invited to the 60th anniversary commemorative meeting of the UN General Assembly.

            In view of growing trend towards inter-regional cooperation, ECO has also explored possibilities of mutually beneficial cooperation with other major regional groupings. In this connection, regional organisations of Asia and the pacific, ASEAN, SAARC, IOR-AOR, Black Sea Economic Cooperation and SCO is now part of an annual consultative process among Asia’s major and important regional organisations.  ECO has also acquired observer status with OIC to benefit from its economic development related activities and is receiving sufficient support from the Islamic Development Bank in vital areas.  ECO has not only fully accomplished its planning process in the form of major action plans but also gained a new international prominence with its recognition as one of the major inter-governmental organizations.

            With its new international status and image, ECO has also become an important factor in consolidating the sovereignty and independence of its members and is enabling them to develop and harmonize their national economic policies with regional and eventually global economic systems. On the other hand, the three founding members of ECO, Iran, Pakistan and Turkey, besides pursuing their bilateral economic relations with landlocked republics, are also helping them in their ongoing efforts towards economic restructuring and reforms.

Prof Dr Abdul Qayum Mangi.

It was first Chapter of my thesis of PHD.

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[i] Ahmad Shamshad, ‘A Review 1992-96 Years of Transformation’, ECO Secretariat Tehran-Iran, P-1.

[ii]‘The year that changed the world’ Editorial, The Dawn Karachi December 31, 1991

[iii]6Ozar Onder, ‘Economic Cooperation Organization: A Promising Future’,  ‘Perceptions’ Journal of International Affairs, Ministry of Foreign Affairs Turkey, Volume II-Number I, March-May 1997 p-1.

[iv] 7 Ahmad Shamshad Opcit P-4

[v] Mukhtar Masood, former Secretary General of RCD, ‘RCD Anniversary Review 1979’. RCD Secretariat Tehran, September 1979. P-4.

[vi] Hyman Anthony, ‘ECO and the Central Asian republics’, International Affairs, April 1993, P-298

[vii] Bhatty Maqbool A. ‘ECO: Challenges and Opportunities in the 1990s’,  Strategic Studies, Special Issue ‘ECO looking to the future’, Volume XV winter 1992 Number 2, Institute of Strategic Studies Islamabad, P-17.

 

[viii]11Ghousi M Sabihuddin, ‘ECO decisions: Preferential items list not disclosed to business yet’, DAWN February 29, 1992.

11Ghousi M Sabihuddin, ‘ECO decisions: Preferential items list not disclosed to business yet’, DAWN February 29, 1992.

 

[ix] 12 Chopra Surendra, ‘RCD: a study of the failure of Pakistan’s Diplomatic Offensive’, in K. Arif (Ed.) ‘Pakistan’s Foreign policy: Indian Perspective’.  Vanguard Publishers Lahore, 1984,  P-189.

 

[x] 13‘Spotlight on Regional Affairs’, Vol. XI No-8. ‘The Political Economy of Pakistan’s relation with Central Asia with special reference to ECO,’ August 1992, Institute of Regional Studies, Islamabad, P-3.

[xi] 14 Eirabie Ghani, ‘The promise ECO holds’, , DAWN, December 19,1992

 

15 Hussain Mushahid, ‘ECO: Challenges and opportunities in the 1990s’, Strategic Studies Volume XV, winter 1992, Special Issue, ‘ECO Looking to the Future’, The Institute of Strategic Studies Islamabad, P-25.

[xiii]  16‘ECO – A Profile’, (1998), the ECO Secretariat Tehran, Iran.

 

[xiv] 17 Hasnat, Syed Farooq, ‘ECO at the Crossroad’, the NEWS Islamabad, May 30, 1991.

[xv] 18 “ECO meeting at Ankara: Accord on Economic and Commercial issues”. DAWN Karachi, February 10, 1992.

 

[xvi]19 Article-VI of the Treaty of Izmir, Signed at Izmir, Turkey, on 12 March 1977 by Iran, Pakistan and Turkey and amended in 1990 and 1992 as the basic Charter of the Economic Cooperation Organization (ECO).

 

[xvii]  20 Article-VIII of the Treaty of Izmir, Signed at Izmir, Turkey, on 12 march 1977 by Iran, Pakistan and Turkey and amended in 1990 and 1992 as the basic Charter of the Economic Cooperation Organization.

 

[xviii]  21 Bhatty, Maqbool A., ‘ECO: Challenges and Opportunities in the 1990s’ Strategic Studies. Special Issue, ECO looking to the future, Volume XV winter 1992 Number 2, Institute of Strategic Studies Islamabad, P. 6.

 

[xix]22 An introduction to Economic Cooperation Organization with country profiles, ECO Secretariat Tehran, April 1998, P-1.

 

[xx]23 DAWN Karachi, March 14, 1995, special supplement on the occasion of third ECO Summit held in Islamabad.

 

[xxi] 24 Arastou, Seyed Mujtaba,  Former Secretary General of ECO, ‘ECO Decade of Progress’ 2002, p-3

 

[xxii] 25 The NEWS, Karachi, November 30, 1992.

[xxiii] 26 Hasan Ahmad Dani, ‘Post Cold War Era: Challenges to Encounter Development and Cultural Identity’, Strategic Studies, Opcit, P-54.

 

[xxiv] 27 ‘A Review 1992-96 Years of Transformation’, Fourth ECO Summit Ashgabat, ECO Secretariat, P-6.

 

[xxv] 28 Tehran Declaration issued on February 17 1992, Para 2.

[xxvi]  29 Message of H E, Mr. Askhat Orazbay, former Secretary General of ECO on ECO day, November 28, 2004 Issued on the Web site of ECO. www.ecosecretariat.org

 

[xxvii]  30 Treaty of Izmir, (As adopted by the Extraordinary meeting of the ECO Council of Minister at Ashgabat on 11 May, 1996), ECO Secretariat, Tehran P-10.

 

[xxviii]31 Ibid, P-14

 

[xxix] 32 Ibid,  Article VI, P-17

 

[xxx] 33 Ibid, Article VII, P-18

 

[xxxi]34Ibid, Article VIII, P-19

 

[xxxii] 35 Ibid, Article,  X,  P-23

 

[xxxiii] 36 ECO Ministerial meeting on Trade and Commerce was held in Pakistan, on  July17, 2003

[xxxiv] 37 DAWN July 19, 2003.

 

[xxxv] 38 ‘ECO Bulletin’, March 2005. www.ecosecretariat.org

 

[xxxvi] 39 Dushanbe Declaration issued at the end of eighth ECO Summit held on September 14, 2004, Para 1.

 

[xxxvii] 40 The Ninth Summit Declaration issued in Baku on May 5, 2006, Para 4.

 

[xxxviii]  41 Signed by all the member states, except Kyrgyzstan, Tajikistan and Uzbekistan.

 

[xxxix] 42 The Ninth Summit Declaration issued in Baku on May 5, 2006, Para 9.

 

[xl] 43 Dawn Karachi, July 7,2007.

 

[xli] 44 Baku Declaration Issued on May 5, 2006, Para 5.

 

[xlii]  45 The Ninth Summit Declaration issued in Baku on May 5, 2006, Para 6.

 

[xliii] 46 ‘ECO News Bulletin’ April 2007, P-7.

[xliv]  47 Former Foreign Minister Mr. Kasuri calls for early accord on IPI, Dawn, July 18, 2007

 

[xlv]  48 Former President of Pakistan remarked during meeting with Iranian deputy foreign minister, Daily times, July 18, 2007.

 

[xlvi]  49 Baku Declaration issued on May 5 2007, para 6.

 

[xlvii]50‘Baku Declaration’ issued on May 5 2007, para 14

 

[xlviii] 51 ‘Baku Declaration’ issued on May 5, 2007 para 18

 

[xlix] 52 Baku Declaration issued on May 5, 2007 para 19