Tokyo Conference: South Asia Needs to Accelerate Connectivity to Boost Growth
6 June 2017
Speaking as a panelist at a discussion on the 23rd Future of Asia 2017 conference in Tokyo, Japan, Mr. Shahriar Alam, State Minister for Foreign Affairs, Bangladesh, emphasized the importance of promoting regional connectivity for South Asia to reap the benefits of being the world's fastest growing region. He called for stronger cooperation among member countries of the South Asian Association for Regional Cooperation (SAARC) to take advantage of a young demographic dividend, and the region’s consistent growth in recent years.
He expressed concern for the low intra-regional trade in South Asia, which remains only 5% of the total trade, and lags far behind other regional groupings including the Association of Southeast Asian Nations, whose total trade is more than 25%.
Minister Alam discussed the need for governments to facilitate people-to-people connectivity to multiply the region's growth potential. Connectivity can help connect the region's markets, encouraging growth. He mentioned initiatives toward subregional cooperation being undertaken by Bangladesh, Bhutan, India, and Nepal to enhance linkages.
Mr. Rajesh Chadha, Senior Fellow, India's National Council of Applied Economic Research, supported Mr. Alam's concerns, and added the need to reinforce the South Asia Free Trade Agreement, which came into force in 2006. Mr. Chadha explained that not all tariffs are free, and there are many non-tariff barriers.
He also encouraged the observers of SAARC – including Japan, South Korea, China, the United States, and the European Union – to give more support, citing how the Japan-supported Indian Railway project, the new Delhi Metro Rail, has increased employment in India by offering a faster and more convenient means of traveling to the city.
Other panelists in the discussion included Laos Prime Minister Thongloun Sisoulith, Mongolia Foreign Minister Tsend Munkh-Orgil, Thailand Deputy Prime Minister Somkid Jatusripitak, Vietnam Prime Minister Nguyễn Xuân Phúc, Dr. Mahathir Mohamad, former Prime Minister of Malaysia, and Mr. Goh Chok Tong, former Prime Minister of Singapore.
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