South Asian nations to fight climate change

Business Week , Friday, April 30, 2010
Correspondent : By ASHOK SHARMA THIMPHU, Bhutan

India's prime minister warned South Asian leaders on Wednesday that they must work in unison to quicken the pace of their development or risk being left behind, as a $300 million fund to reduce poverty in the region was unveiled.

Manmohan Singh said the eight nations that make up the South Asian Association of Regional Cooperation, or SAARC, had to more fully integrate themselves into the global economy.

"If we do not, we run the risk of marginalization and stagnation," Singh said on the first day of a SAARC summit. "The 21st century cannot be an Asian century unless South Asia marches together."

One-fifth of the world's population -- and many of its most impoverished -- live in the countries that make up the grouping, and it was set up to promote economic cooperation, but it has often been criticized as little more than a talk shop since its founding in 1985. Even the host, Bhutanese Prime Minister Jigmi Y. Thinley said the group's priorities must be reset if it is to achieve any success.

A rivalry between India and Pakistan -- the two heavyweights of the group -- has slowed progress in most areas.

thaw between nuclear rivals. The two countries have fought three wars and their relations became further strained after Pakistan-based militants attacked the Indian financial capital of Mumbai in 2008.

Pakistan Prime Minister Yusuf Raza Gilani also called for accelerating the process of development in the region.

During the two-day summit, the leaders are expected to sign an agreement on the environment encouraging the exchange of eco-friendly technologies and knowledge about climate change and wildlife conservation.

The $300 million fund, which would comprise financial contributions by regional countries, will offer loans and grants to member countries for projects to help reduce poverty.

An agreement on trade will cover services in areas such as health, hospitality, communications, computers and air transport.

Indian Foreign Minister S.M Krishna said South Asian nations must grab the opportunity to enhance trade, open borders and facilitate economic integration as the world emerges from a period of unprecedented global recession.

Bhutan chose to focus much of the summit on climate change because South Asia is highly vulnerable to its effects, said Bhutanese Foreign Secretary Daw Penjo. The Himalayan country has seen the global warming-linked flooding of lakes caused by melting glaciers.

The tiny Himalayan kingdom of Bhutan, which ended more than a century of royal rule in 2008 with its first parliamentary elections, is hosting the SAARC summit for the first time since the grouping was set up 25 years ago. Lack of resources and infrastructure prevented the tiny nation from playing host to SAARC leaders until now, said Penjo.

Trade among the eight nations reached $688 million in 2009 -- within three years of the gradual introduction of a free trade regime in the region, said Sheel Kant Sharma, the SAARC secretary-general.

The SAARC comprises India, Pakistan, Sri Lanka, Bhutan, Nepal, Afghanistan, the Maldives and Bangladesh.The prime ministers of both countries will hold talks on Thursday on the sidelines of the summit, indicating signs of a possible

 
SOURCE : http://www.businessweek.com/ap/financialnews/D9FC51G00.htm
 


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