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Peoples’ Expectation and South
Asian Union
Media Foundation for Trade and Development
Equity and Justice Working Group
www.equitybd.org
SAARC Objectives
1. To promote cooperation among South Asian countries in
all areas of cooperation by identifying SAARC countries
common strengths and opportunities which will help
reduce poverty and improve the quality of life of SAARC
poor people.
2. To expand the trade and financial market within SAARC
countries and increase the trade in lieu of competition
and, in turn, enhance SAARC economic competitive
union in the global market
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Socio Economic situation of SAARC countries
- Near about 500 million people are living under poverty
line and slow pace of achieving MDG & SDG
- Existing conflict among members countries and local
insurgence
- Influence of fundamentalism in politics
- Low rate of progress in education and in near about 4050% people are depriving from health service
- Per capita GDP is least (<500 US$)
- Increasing unemployment and income inequality
www.equitybd.org
Causes of poverty in SAARC countries
Colonial exploitation of 250 years
Neo colonial economic structure;
- Washington consensus
- Structural Adjustment policy
- Poverty Reduction Strategy
Internal conflict and volatile political situation has been
undermining development progress of SAARC countries
Internal dominating tendency are hindering the progress of
regional economic activities
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Official agenda in 15th SAARC summit
Focus of 15th SAARC Summit
- Food Security
- Climate Change and
- SAFTA
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Loop holes of Food Security
- Neo Liberal Food Security defined;
‘all people at all times have both the physical and
economic access to the basic food they need’.
The definition compliances following conditions ;
- Market based and comparative advantage of
production
- Adequacy of food supply or availability,
- Stability of supply
- Access to food at the HH level, and by the poor.
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Loop holes of Food Security
But the market based concept of FS denies;
The local agricultural production and production
system.
The farmers rights to choice & produce food,
preserve seed and consumers rights to
consumption and purchase
The right of nations to protect themselves from
agricultural and food imports (dumping).
Link agricultural prices to production costs
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Neo liberal Food Security; Myth & Reality
- Technologies helped to increase global rice
output steadily from about 254 m tones in 1965
to 598 m tones in 2000.
But reality is,
- This growth rate has been declining since
2000....... indicating the need for additional
support to produce Bio Fuel.
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Recent food-politics; Bangladesh has
suffered
Two prolonged floods and cyclone SIDR caused 1.4 million
tones crop loss.
India given commitment to assist 0.5 m tones rice to
recover the situation but didn’t keep the commitment
Having the chance of global food crises exporters have
been increased their food price and even declared
suspension of export also.
Bangladesh didn’t able to collect necessary food despite all
out effort and agree to purchase with cash price.
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Ensuring food security in SAARC countries
- Establish Regional Food Bank at least for two
month of uninterrupted food supply.
- Introduce of flexible trade policy for inter regional
food trade and transaction
- Common agriculture policy have to adopt and
subsidy have to increase for poor farmers
- Ban on GM food in SAARC countries.
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Climate Change; Impact in SAARC countries
Rich countries are big carbon emitter and responsible for
climate change
Country
Emitted CO2
USA
24.4%
EEU
15.3%
China
14.5%
India
5.9%
Pakistan
0.5%
Bangladesh
0.1%
Sri Lanka
<0.1%
Nepal
<0.1%
Source: CO2 Emission Report-2005
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Climate Change; Impact in SAARC countries
Bangladesh would be worst victim of incidence and
intensity of Hydro-metrological Disasters like;
- Submersion of 15-17% land by 1 m Rise of Sea Level
- 20 m. People will Become Environmental Refugee
- Flooding Risks of Low Land will be Increased by 29% ,
- 145 km Sandy Shoreline in CXB Would be Inundated
- Submersion of 58 thousand Hectare land by 2030
In 2007 we faced flooding, 13 depressions formed in the
Bay including Cyclone SIDR that hit Bangladesh’s Coast
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Climate Change; Impact in SAARC countries
Endangered Economy
1970 cyclone caused death 1.2 m; USD 86.4 m. financial loss
1991 Cyclone caused death 138, 000 ; USD 1780 m financial loss
Cyclone SIDR in 2007 caused death 3199, Affected families 6.8
million, Financial Loss estimated USD 3.2 billion
SAARC member countries will face the same scenario along
with desertification, salinity etc those would be cause of
huge damage of livelihood and economy.
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Climate politics; Bypassing LDCs interest
Avoiding UNFCC/Kyoto Protocol G-8 countries trying to
introduce the Climate Change Investment Fund through
WB. This fund includes,
- The Clean Technology Fund (CTF)
- The Forest Investment Fund
- The Adaptation Pilot Fund (APF)
Market based “flexible mechanism” of the Kyoto Protocol
to help the northern countries avoid or delay of reducing
their GHG emission.
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Politics of carbon trade
Concern: Fund Based
Mechanism
Concern: Market Based
Mechanism
Funds are replenished by
‘good will’ from the
industrialized countries
Puts developing and developed
countries same trading level; is
neither fair nor realistic
Despite repeated call, LDCs
aren’t getting 0.7 % of their
GNP as dev. aid.
GEF, can mobilize USD 1 b in
several years wherein the
market crossed 5 b in 2007.
Like aid for trade of the WTO,
it may leave LDCs in
disadvantageous position.
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Our position in Climate Change issue
SAARC countries have to take position against WB CIFs and
raise voice for “Polluter Pay and Exploiter Pay Principle”, like
Oxfam study report made countries responsible for climate crisis
as; USA 44 percent, Europe 32 percent, Japan 13 percent, Canada
4 percent, Australia 3 percent and South Korea 2.5 percent.
Globally the IFIs ; the IMF, the WB, ADB, other regional banks,
northern governments etc. desperately engaged in fossil fuel
exploration & creating huge environmental loss, economic loss
and corruption. Example NIKO, Occidental gas-fields blow-out in
Bangladesh. So
ALL THESE SHOULD PAY BACK
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Our position in Climate Change issue
SAARC countries have to act together poor countries with rich
to support with reliable financing mechanism to implement
NAPA ( National Adaptation Plan of Action)
Introduce regional fund for renewable energy promotion
SAARC countries have to take an integrated effort to
produce Hydro-Power. This effort will help us to reduce the
fossil fuel dependency.
Strengthen SAARC Meteorological Center
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SAFTA; Neither effective nor protective
What’s the problem exist ?
SAFTA ministrial and expert council are responsible to
speed up trade process of SAFTA, but yet to reaching
consensus between India and Pakistan on their strategies.
Promotion of intra-SAARC investments, development of
communications and transport, and speedy grant of
business visas etc are yet to ensure
Tariff and Para-Tariff barriers are still exist those are really
obstacle to increase the trade for SAARC LDCs.
www.equitybd.org
SAFTA; Neither effective nor protective
What’s the problem exist ?
SAFTA would may come an weaken tools or fall in
sideline due to showing interest of India to make bilateral
agreement with members countries ignored free trade
mechanism.
Member countries didn’t reduce their sensitive list to
increase the trade volume. E.g. Bangladesh is not allow to
export her readymade garments among other member
countries
www.equitybd.org
How SAFTA might be effective
What focus in SAARC, how ?
Giving priority to free and fair trade for alleviating poverty
and short listing of sensitive lists.
Develop of common SAARC Sensitive List to regulate
world trade. Because SAFTA control only 3.5-4 % where
as European Union and ASEAN are regulating 66 % and
30 % respectively in the world trade.
Establish SAARC regional capital market and prevent the
resource repatriating FDIs
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Thank You
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