Invigorating Trade Cooperation among Regional Economies in South Asia
Watch it on NIICE Nepal Youtube Channel
Event Report
The webinar was about Invigorating Trade Cooperation among Regional Economies in South Asia by Prof. S.K. Mohanty, a Professor at the Research and Information System for Developing Countries, a New Delhi-based think-tank. He has been working on issues relating to Trade and Development. He begins the presentation by stating the significant issues that the region is confronting today. South Asia is intensely looking for its regional identity since the region is still not taken positively like other regions.
Prof. Mohanty further explains the prominence of improving the image of South Asia and that it is necessary to work toward the region’s identity. Looking at the pessimism that there is in the region. The World Bank and International Monetary Fund for Literature demonstrate that the multilateral organizations describe the region as a poor, poverty-ridden, poor record of the social sector of development and low healthcare.
The region has got both favorable and adverse aspects. However, in most global narrations, we will notice that the region is consistently treated negatively. Therefore, there is necessary to change the region’s narration and scrutinize the regional identity.
South Asia has robust growth; it is much higher than the other world and most continents except in Asia during 2009. during the recession, there could be a minor and even a second phase of recession in South Asia, which is much above other Asian countries, CJK, Europe, Africa, and Latin America, and it is not happening for a couple of years. However, it has been happening for the last 30 years; now, the region is gradually getting the recognition that it is emerging as a global region. South Asia is extending more quickly than several other international regions. The region had uninterrupted growth for 30 years.
In South Asia in 2000, it was just 2.4 percent of GDP or Gross World Product; by 2019, it had reached 4.1 percent. However, there was an insignificant decline during 2020 because of the pandemic, whereas the region has grown. This growth was associated with the structural change that is taking place in the region.
International trade is meager in the region, so the integration process is inferior. Many countries are incredibly dependent on the region both for exports and imports. Some countries, like Bhutan and Nepal, are highly dependent on both aspects for export and imports. Some countries like Afghanistan are moderately highly dependent on exports, not much less on imports. Some countries are highly and moderately dependent on regional imports and less on exports, like Bangladesh, Sri Lanka, and the Maldives. Some countries, like India and Pakistan, are moderately dependent on exports and imports. Looking at this system is indicative of the fact that there are leakages taking place within the regional trade.
Prior to the conclusion of this webinar, Prof. Mohanty details the most critical sectors for export potential. The following are minerals, base metals, and machinery. Other sectors are; fruits and vegetables, processed food, chemicals, wood pulps, T&C, automobiles, and precision instruments. In order to increase intra-regional trade, it has to split the trade sector into three broad sectors; agriculture, manufacturing, and minerals.
Prof. Mohanty concludes the webinar by strongly urging the regional research community to work constructively; to build literature around the region as a dynamic region. Since it has a substantial chronology of 30 years of vigorous growth, the region has extended its role in the world economy for trade investment and trading services. Nevertheless, apart from all that the region has not gained a name for itself, it is integral to rewrite the literature and the narration about South Asia as a vibrant region.
Prepared by: Apple Mae Domondon, Intern at NIICE.