Pakistan needs to explore its options
In the post-World War II era, economic integration among the countries having geographical proximity and complimentary economies, is acknowledged as the best arrangement to exploit the social and economic potential of those countries designed to ensure their sustained economic growth and provide a collective mechanism to assist and bail out the member states from economic crisis. The European Union and ASEAN are the enviable success stories of the concept of regional cooperation.
Pakistan, Iran and Turkey emulated this model by establishing Regional Cooperation for Development (RCD) in 1964 for promoting economic, technical and cultural cooperation among them but unfortunately it failed to achieve the stipulated objectives and had to be scraped in 1979 only to re-emerge in 1985 as Economic Cooperation Organisation with the same membership. In the fall of 1992, ECO embraced seven new members namely Afghanistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. The declared objectives of ECO are: sustainable economic development of member states; progressive removal of trade barriers and promotion of intra-regional trade; greater role of ECO in the world trade and gradual integration of the economies of member states with the world economy; development of transport and communication infrastructure linking member states with each other and with the outside world; mobilisation and utilisation of material resources of ECO region; regional cooperation for drug abuse and control and mutually beneficial cooperation with regional and international organisations.
The organisation aims to meet its goals through cooperation in the field of trade and investment, transport and communications, energy, agriculture and industry and human resources. The core objective of ECO, however, is the establishment of a common trade market by 2015. As a first step for achieving this goal, Economic Cooperation Organisation Trade Agreement (ECOTA) was singed on 17 July, 2003, during the summit meeting in Islamabad. The ECO countries have a total population of more than 416 million which by any standards is huge consumers market for the products of the member states. The Central Asian states are also endowed with infinitesimal natural resources. A unique factor regarding ECO is that all the member states are Muslim and have very strong historical and cultural bonds with each other. Another very important and positive reality is that Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan are also members of SCO, another vibrant and very important regional organisation. Their presence in both these bodies can greatly contribute to establishment of productive and meaningful cooperation between them. Pakistan is also striving to become a full member of SCO.
Pakistan can greatly benefit from the ECO common market as it would throw open myriad of opportunities for her to enhance its exports and diversify export destinations for its products.Pakistanwill also not have to beg for preferential treatment for its exports by the European and other countries. It can also tide over the energy crisis with the completion of contemplated projects like electric transmission line from Tajikistan-Afghanistan-Pakistan and the gas pipeline between Turkmenistan-Afghanistan-Pakistan-India. Pak-Iran gas pipeline venture is another perennial solution to energy deficiency.
The foregoing ground realities give a fair idea of the potential that exists in the member states for achieving the objective of economic integration and unfurling a process of sustained economic growth in them. The building of the economic linkages between the member states will also immensely contribute to strengthening the regional security. The status and power of the ECO is growing. However, the organisation faces many challenges. Most importantly, the member states are lacking appropriate infrastructure and institutions which the organisation is primarily seeking to develop, to make full use of the available resources in the region and provide sustainable development for the member nations. The security situation in Afghanistan and some of the Central Asian states is the main stumbling block in developing the required infrastructure.
President Zardari addressing the 12th ECO summit held in Baku early this week, rightly identified terrorism, poverty and illiteracy as the major debilitating factors in regards to achieving the goals of ECO. One can hardly take issue with the conclusions drawn by him. The abundant resources of the member states can only be exploited productively through collective efforts to fight these menaces, especially terrorism that poses existentialist threat toPakistanand is also a major challenge for other member states and the region as a whole. His observations that ECO had not been able to make headway like the other regional blocs and that the member states needed to show more commitment in realising the core objective of the organisation to establish a common trade market, are timely reminders to the member states to work at a greater pace.
It is indeed heartening to note that during the last four years, Pakistan in recognition of the importance of the geographical factors and ground realities in the region, has laid greater emphasis on improving relations with its neighbours and building regional linkages. This visionary paradigm shift in the conduct of our foreign relations, for sure, will bring enormous economic, political and security benefits toPakistanin the long run. In fact this new strategy has already started paying dividends. There has been an exponential increase in economic cooperation with China.
Russia, with whom Pakistan had troubled relations, has of late exhibited its keenness to bury the past and enhance cooperation with Pakistan. It has indicated its willingness to support the construction of TAPI and power transmission line from Tajikistan to Pakistan besides financing the construction of Diamir-Bhasha Dam on the basis of government to government funding. It has also shown interest in providing finances for Pak-Iran gas pipeline. Our chief of army staff has been to Russia last week and bother countries have also expressed the resolve to enhance cooperation in the field of defence.
These are very positive developments. Pakistan’s bid to re-energise the ECO, joining the SCO, cementing and strengthening of relations with China and recalibration of relations with Russia gives her multiple policy options viz-a-viz US, besides surmounting the economic and other challenges that it faces.
