South Asian leaders last week concluded their summit by adopting a declaration that emphasized trade liberalization, economic integration and the fight against poverty and terrorism. But the way to real achievement does not appear to be smooth, especially because of the rivalry between India and Pakistan -- the two biggest, as well as nuclear-armed, countries in the region.
Leaders of the eight member-states of the South Asian Association for Regional Cooperation (SAARC) held the summit in New Delhi -- the first summit in 17 months -- with Afghanistan accepted as a new member. Japan, China, South Korea, the United States and the European Union attended as observers for the first time. SAARC leaders also decided to accept Iran as an observer.
SAARC was established in 1985 by the seven original member states -- India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan and Maldives -- on the basis of the 1980 proposal by then Bangladeshi President Ziaur Rahman to attain economic growth and social and cultural progress with a view to improving the welfare and living standards of South Asian peoples. In June 2006, the South Asia Free Trade Agreement (SAFTA) came into effect. But differences between India and Pakistan appear to be hindering full implementation of the free-trade system.