Editorial
New window opens before Saarc countries
Coordination among members holds the key
We are upbeat about the decision to open a liquidity-swap window for extending financial support to the Saarc member countries. The move made at the fifth Saarc Finance Ministers' Meeting in Dhaka is intended to enhance coordination in fiscal and monetary policies of the member countries and facilitate business and other transactions. We find this move very appropriate in light of the deepening global economic recession. It is a potential stepping stone towards offsetting the impacts of any global crisis. Now we want to see swift implementation of the project after having worked out its size, structure, resources and operational modalities.
The South Asian development fund has already been in operation for quite some time. It nonetheless has fallen short of shielding the member states from emerging economic crises. As indicated in the FMs' meeting, if the development fund is gradually transformed into a regional bank to cater to the needs of each country, we believe it will lay a foundation for an effective economic safety net that has been long overdue in the region.
The overall development of this region lies in financial, cultural and political cooperation among the concerned countries. Keeping this grand vision in mind, there have been a number of conventions and agreements including the SAPTA and Safta which aim at broadening intra-regional trade. Their slow implementation, however, has remained a matter of concern.
As Finance Minister AMA Muhith noted, lack of coordination among the member countries has been one of the key obstacles to removing the non-tariff and para-tariff barriers, which was among the major goals of Safta.
Overall, all Saarc countries should step up coordination in a robust way if we are to fulfil the dream of an economic union in the region.
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