The just concluded SAARC Summit in New Delhi has turned out to be quite historic in its own way. Besides the usual rhetoric by the member nations especially between India and Pakistan the summit has seen significant new developments which can change the future course of South Asia if addressed in a proper way.
The most significant outcome of this summit has been the signing of the South Asia Free Trade Agreement (SAFTA) .The agreement was reached at the end of the two-day summit of the eight-nation South Asian Association for Regional Cooperation (SAARC) in New Delhi. The trade agreement was though in effect since July last year but its full potentiality was so far held up due to difference of opinion between India and Pakistan. While adopting the agreement the Pakistan Prime Minister Shaukat Aziz, said that "effective market access through smooth implementation of trade liberalization program" should be ensured. With the coming of SAFTA in full force South Asia would at last realize its full economic and strategic potentiality .SAFTA should have been effective at least a decade back .If that would have happened the economic growth and development of South Asia would have been in some other level today. However though late the silver lining is finally SAFTA is coming into effect.
The next step for SAARC after SAFTA should be visa free travel and a common currency unit similar to the Euro and a common SAARC monetary fund for development on which the work has already started. The leaders of SAARC nations should also try to establish a common South Asia banking system for developmental projects and uniform economic growth. The idea of the Indian Prime Minister for a common train, air and road transport network and free transit facilities should be welcomed by all and all means should be tried for achieving this in near future.
The latest inclusion of Afghanistan into the SAARC is a very positive development as without Afghanistan integration of SAARC as a regional forum was incomplete. The next step towards full integration of SAARC should be the inclusion of Myanmar in it as Myanmar historically has been a part of South Asia and could be a common point for future collaboration between ASEAN and SAARC.
A very significant development in this summit has been the first time inclusion and attendance of very important nations which are strategically and economically very important for the SAARC in future. The inclusion of South Korea , USA , China ,Japan and the European Union as full fledged observers has given SAARC not only a new teeth but has also enhanced its image as a important economic and strategic forum at a global level . With the coming of these countries as observers has given SAARC a much wider platform for business and trade. It has also given SAARC a much wider strategic platform. Probably this could be a stepping stone for SAARC to attain a global image like ASEAN, APEC and other forums in near future.
The mutual agreement by all the SAARC nations for the inclusion of Iran as a permanent observer and its referral to the SAARC foreign ministers is a welcome step and inclusion of Iran into SAARC would be very beneficial for the region as a whole both in terms of economic, strategic as well as market and trade wise . However SAARC should have a cautious approach on this as European Union and USA are now permanent observers of the SAARC.
India should adopt a very cautious approach on the inclusion of China as a full fledged member of SAARC as advocated strongly by certain SAARC countries like Nepal as it would not be in India's strategic and economic interest to have China as a full fledged m