Peace and Cooperation

The states of South Asia are often seen as locked in conflict, but the textbook makes a crucial point: they also recognise the need for cooperation. The key question is whether this recognition has translated into real, working institutions.

The major regional initiative for multilateral cooperation is the South Asian Association for Regional Cooperation (SAARC) , founded in 1985. Its record, however, is disappointing. Persistent political differences among member states have prevented SAARC from achieving significant success.

A more concrete step was the South Asian Free Trade Area (SAFTA) agreement. The idea behind SAFTA is that if all countries in the region allow free trade across their borders, a new era of peace and cooperation could emerge. The agreement was signed in 2004 and came into effect on 1 January 2006. Its primary aim is to lower trade tariffs.

But SAFTA is not without controversy. Some of India's neighbours fear that it is a way for India to "invade" their markets and influence their societies and politics through commercial ventures. India, on the other hand, argues that there are real economic benefits for everyone and that freer trade will lead to better political cooperation. Within India itself, some question whether SAFTA is worth the trouble, pointing out that India already has bilateral trade agreements with Bhutan, Nepal, and Sri Lanka.

The India-Pakistan relationship is the most difficult in the region, but even here there have been efforts to manage tensions. These include:

• Confidence-building measures to reduce the risk of war.
• Collaboration between social activists and prominent personalities to build friendship between the peoples.
• Summit meetings between leaders to understand each other's positions.
• Opening up bus routes between the two countries.
• An increase in trade and easier granting of visas (though the textbook notes that this situation has changed in recent times).

No region exists in a vacuum. South Asia is heavily influenced by outside powers, particularly China and the United States.

• China: Sino-Indian relations have improved significantly in the last decade, driven by the demands of development and globalisation. Economic ties between the two have multiplied rapidly since 1991. However, China's strategic partnership with Pakistan remains a major irritant in the region. …