International Economic InstitutionsIn 1944, even while the World War II was being fought, representatives of a large number of nations met in Brettonwoods, New Hampshire, USA, to discuss the major international economic problems including reconstruction of the economies ravaged by the War, and to evolve practical solution for them. The Brettonwoods Conference proposed the setting up of :-IMFIBRDITO

IMFIMF, was established on Dec. 27, 1945 with 29 countries and which began financial operation on March 1, 1947, is an organisation of countries that seek to promote international monetary cooperation, facilitate the expansion of trade, and thus to contribute towards increased employment and improved economic conditions.

Fast Facts on the IMF

Current membership: 184 countries Staff: approximately 2,693 from 141 countries Total Quotas: $308 billion (as of 3/31/06) Loans outstanding: $34 billion to 75 countries, of which $6 billion to 56 on concessional terms (as of 3/31/06) Technical Assistance provided: 381 person years during FY2005

IMF's main responsibilitiespromoting international monetary cooperation; facilitating the expansion and balanced growth of international trade; promoting exchange stability; assisting in the establishment of a multilateral system of payments; and making its resources available (under adequate safeguards) to members experiencing balance of payments difficulties.Shorten the duration and lessen the degree of disequilibrium in the international balance of payments of members.

Organisation and ManagementThe IMF s Article of Agreement provide for a Board of Governors, an Executive Board, a Managing Director and a staff of International civil servants.

Board of GovernorsThe Board of Governors, the highest decision-making body of the IMF, consists of one governor and one alternate governor for each member country. The governor is appointed by the member country and is usually the minister of finance or the governor of the central bank. All powers of the IMF are vested in the Board of Governors. The Board of Governors may delegate to the Executive Board all except certain reserved powers. The Board of Governors normally meets once a year

Board of GovernorsThe Board of Governors, the highest decision-making body of the IMF, consists of one governor and one alternate governor for each member country. The governor is appointed by the member country and is usually the minister of finance or the governor of the central bank. All powers of the IMF are vested in the Board of Governors. The Board of Governors may delegate to the Executive Board all except certain reserved powers. The Board of Governors normally meets once a year

Executive BoardThe Board is responsible for conducting the business of the IMF, it is composed of 24 directors,who are appointed or elected by member countries or group of countries. The MD serves as its chairman, meeting several times in a week, the Board deals with a wide variety of policy,operational and administrative matters including surveillance of members exchange rate policies.

Where the IMF Gets its MoneyMost resources for IMF loans are provided by member countries, primarily through their payment of quotas. Concessional lending and debt relief for low-income countries are financed through separate contribution-based trust funds. The IMF's annual operating expenses are largely paid for by the difference between its interest receipts and its interest payments

QuotasQuota subscriptions generate most of the IMF's financial resources. Each member country of the IMF is assigned a quota, based broadly on its relative size in the world economy. A member's quota determines its maximum financial commitment to the IMF and its voting power, and has a bearing on its access to IMF financing. Total quotas at end-March 2006 were SDR213billion (about $308billion).

How does the IMF determine a member country's quota?A member's quota is broadly determined by its economic position relative to other members. Various economic factors are considered in determining changes in quotas, including GDP, current account transactions, and official reserves. When a country joins the IMF, it is assigned an initial quota in the same range as the quotas of existing members considered by the IMF to be broadly comparable in economic size and characteristicsQuotas are denominated in Special Drawing Rights (SDRs), the IMF's unit of account. The largest member of the IMF is the United States, with a quota of SDR37.1billion (about $53.5billion), and the smallest member is Palau, with a quota of SDR3.1million (about $4.5million).

What are the functions of quotas?Subscriptions. A member's quota subscription determines the maximum amount of financial resources the member is obliged to provide to the IMF. A member must pay its subscription in full upon joining the Fund: up to 25percent must be paid in SDRs or widely accepted currencies (such as the U.S. dollar, the euro, the yen, or the pound sterling), while the rest is paid in the member's own currency.

Voting power. The quota largely determines a member's voting power in IMF decisions. Each IMF member has 250basic votes plus one additional vote for each SDR 100,000 of quota. Accordingly, the United States has 371,743 votes (17.1percent of the total), and Palau has 281 votes (0.013percent of the total).

Access to financing. The amount of financing a member can obtain from the IMF (its access limit) is based on its quota. Under Stand-By and Extended Arrangements, for instance, a member can borrow up to 100percent of its quota annually and 300percent cumulatively. However, access may be higher in exceptional circumstances

Special Drawing Rights (SDRs)The SDR is an international reserve asset, created by the IMF in 1969 to supplement the existing official reserves of member countries. SDRs are allocated to member countries in proportion to their IMF quotas. The SDR also serves as the unit of account of the IMF and some other international organizations. Its value is based on a basket of key international currencies

Why was the SDR created and what is it used for today?The SDR, or special drawing right, is an international reserve asset introduced by the IMF in 1969 (under the First Amendment to its Articles of Agreement) out of concern among IMF members that the current stock, and prospective growth, of international reserves might not be sufficient to support the expansion of world trade

SDRssometimes known as "paper gold" although they have no physical formhave been allocated to member countries (as bookkeeping entries) as a percentage of their quotas. So far, the IMF has allocated SDR 21.4 billion (about $32 billion) to member countries. The last allocation took place in 1981, when SDR 4.1 billion was allocated to the 141 countries that were then members of the IMF. Since 1981, the membership has not seen a need for another general allocation of SDRs, partly because of the growth of international capital markets

The SDR's value is set daily using a basket of four major currencies: the euro, Japanese yen, pound sterling, and U.S. dollar. On July 1, 2004, SDR 1 = US$1.48. The composition of the basket is reviewed every five years to ensure that it is representative of the currencies used in international transactions, and that the weights assigned to the currencies reflect their relative importance in the world's trading and financial systems

Borrowingsthe General Arrangements to Borrow (GAB), set up in 1962, which has 11 participants (the governments or central banks of the Group of Ten industrialized countries and Switzerland), the New Arrangements to Borrow (NAB), introduced in 1997, with 25 participating countries and institutions. Under the two arrangements combined, the IMF has up to SDR 34 billion (about $50 billion) available to borrow

How Does the IMF Serve Its Members?

reviewing and monitoring national and global economic and financial developments and advising members on their economic policies; lending them hard currencies to support adjustment and reform policies designed to correct balance of payments problems and promote sustainable growth; and offering a wide range of technical assistance, as well as training for government and central bank officials, in its areas of expertise.

IMF Lending FacilitiesStand-By Arrangements form the core of the IMF's lending policies. A Stand-By Arrangement provides assurance to a member country that it can draw up to a specified amount, usually over 12-18 months, to deal with a short-term balance of payments problem.

Extended Fund Facility. IMF support for members under the Extended Fund Facility provides assurance that a member country can draw up to a specified amount, usually over three to four years, to help it tackle structural economic problems that are causing serious weaknesses in its balance of payments

Poverty Reduction and Growth Facility (which replaced the Enhanced Structural Adjustment Facility in November 1999). A low-interest facility to help the poorest member countries facing protracted balance of payments problems. The cost to borrowers is subsidized with resources raised through past sales of IMF-owned gold, together with loans and grants provided to the IMF for the purpose by its members

Supplemental Reserve Facility. Provides additional short-term financing to member countries experiencing exceptional balance of payments difficulty because of a sudden and disruptive loss of market confidence reflected in capital outflows. The interest rate on SRF loans includes a surcharge over the IMF's usual lending rate

Emergency Assistance. Introduced in 1962 to help members cope with balance of payments problems arising from sudden and unforeseeable natural disasters, this form of assistance was extended in 1995 to cover certain situations in which members have emerged from military conflicts that have disrupted institutional and administrative capacity

The IMF provides technical assistance and training mainly in four areasstrengthening monetary and financial sectors through advice on banking system regulation, supervision, and restructuring, foreign exchange management and operations, clearing and settlement systems for payments, and the structure and development of central banks; supporting strong fiscal policies and management through advice on tax and customs policies and administration, budget formulation, expenditure management, design of social safety nets, and the management of internal and external debt; compiling, managing, and disseminating statistical data and improving data quality; and drafting and reviewing economic and financial legislation

BUILDING OF WORLD BANK The world bank is an internationally supported bank that provides financial and technical assistance to developing countries for development programs (e.g. bridges, roads, schools)with the stated goal of reducing poverty.

President :- Robert B. ZoellickMembership :- 185 countriesAffiliates :- IFC, MIGA, ICSIDHeadquarters :- Washington, DC and more than 100 country Staff :- about 10000 all over the worldEstablished :- July 1,1944

Fund generationLoansGrantsAnalytic & Advisory ServicesCapacity building

IBRD lending to developing countries is financed by selling AAA-rated bonds.IDA is the worlds largest source of interest free loans and grant assistance to the poorest countries.

Relieve the debt burden of heavily indebted poor countriesImprove sanitation and water suppliesSupport vaccination and immunisation programs to reduce the incidence of communicable diseases like malariaCombat the HIV/AIDS pandemicSupport civil society organisationsCreate initiatives to cut the emission of greenhouse effect

Poverty AssessmentsPublic Expenditure ReviewsCountry Economic MemorandaSocial and Structural ReviewsSector ReportsTopics in Development

Advisory Services and Ask UsGlobal Development Learning NetworkWorld Bank Institutes Global and Regional ProgramsB-SPAN

Agriculture and Rural DevelopmentEconomic policyEducationEnergyEnvironmentFinancial sectorHealth, nutrition and population industry

Information, computing and telecommunicationLaw and justicePrivate sectorSocial protectionTradeWater resourcesWater supply and sanitation

India is home to over one-quarter of the worlds poor, and the World Bank Group is focused on sharing best practices as well as financing for development as part of its mission ton help reduce global poverty.

It was started to reduce poverty but it support United States business interests.It is deeply implicated in contemporary modes of donor and NGO driven imperialism.The President of the Bank is always a citizen of the United States.

Lack transparency to external publics.It is an instrument for the promotion of U.S. or Western interests.The decision-making structure is undemocratic.It has consistently pushed a neo-liberal agenda.

Important terms

TariffsRefers to the tax imposed on importsTwo types

Specific tariff and valorem tariffsSpecific tariff are levied as a fixed charge for each unit of the product imported.Eg a tariff of Rs. 1000 on each TV imported.Ad valorem the tariff levied as a proportion of the value of the imported goods.Eg imposition of 30 percent tax on the value of computers imported.

SubsidiesIn order to encourage domestic production or to protect the domestic producers from the foreign competitors, government pays to a domestic producer by reducing operation cost. Such payments are called subsidies.Subsidies may be in cash grants, loans and advances at low rate of interest, tax holidays, government procurement of output at a higher rate, and supply of inputs at lower rates.

Import quotasIs direct restriction on the quantity of goods which are imported into a country. These restrictions are imposed by issuing import licenses to certain firms and individuals to import certain quantity of goods.India had quota of imported goods like motor cycles, milk etc. upto 2001.Import quota provides the protection to the domestic firms from the foreign company.

Voluntary import restrictionsA voluntary export restraint is the opposite form of import quota. A voluntary export restraint is a quota on exports of the domestic firms imposed by the exporting country. Exporting country impose such restriction, mostly at the request of the importing country.

Local content requirement Is a condition that requires some specific fraction of a product imported be produced domestically? The requirement may be in physical terms or in value.Mostly domestic countries insist on the local content requirement

INTRODUCTIONEconomic integration is a new reality in the international business market.Business and governments have created a range of institutions, treaties, and agreements that help toOvercome trade differencesBoost the free movement of trade, investment, and services across national boundaries Economic integration is concerned with:The removal of trade barriers or impediments between at least two participating nationsThe establishment of cooperation and coordination between themIntegration creates high levels of globalization and regionalization

WHAT IS ECONOMIC INTEGRATION?Economic integration is best viewed as a spectrum with the various integrative agreements in effect today lying in the middle of this spectrumThe level of integration defines the nature and degree of economic links among countries

Levels of Economic IntegrationTrading bloc: preferential economic arrangement among a group of countriesTrading blocs may take various forms:Free trade areaCustoms unionCommon marketEconomic union

FORCES STIMULATING INTERNATIONAL ECONOMIC INTEGRATION

Three levels of economic integrationGlobal: trade liberalization by GATT or WTORegional: preferential treatment of member countries in the group Bilateral: preferential treatment between two countriesRegional and bilateral agreements are against the MFN clause (normal trading relations), but allowed under WTO.

Four stages (types) of economic integrationFTA (free trade area): no internal tariffs among members, but each country imposes its own external tariffs to the third country.NAFTA (North America Free Trade AgreementAFTA (ASEAN Free Trade Area)EFTA (European Free Trade Area)Customs union: no internal tariffs and common external tariffsMercosur (Southern Common Market), CACM (Central American Common Market)CARICOM (Caribbean Community and Common Market)

Four stages (types) of economic integrationCommon market: free movement of products and factors (resources), which is customs union plus factor mobilityEU (European Union previously EEC)Economic union: common market plus common currency coordination of fiscal and monetary policyEMU (Economic and Monetary Union)

FORMS OF TRADING BLOCSFree Trade Area - is the least restrictive and loosest form of economic integration among countries. All barriers to trade among member countries are removed (NAFTA ).Customs Union - Members dismantle barriers to trade in goods and services among themselves and establishes a common trade policy with respect to nonmembers (Central American Common Market).Common Market There are no barriers to trade among members and factors of production such as capital, labour and technology are mobile among them. There is a common external trade policy where members must be prepared to cooperate closely in monetary, fiscal, and employment policies. Economic Union The creation of a true economic union requires the integration of economic policies in addition to the free movement of goods, services, and factors of production. Under this union, members would harmonize monetary policies, taxation, and government spending and a common currency would be used by all members e.g.(European Union)

Economic Block Typology

Free trade among membersCommon external tariffFree factor movementsMacro Policy HarmonizationFree Trade AreaXCustom UnionXXCommon MarketXXXEconomic UnionXXXX

Economic effects of economic integrationStatic effects: Short-term effects (shift of production)Trade creation: production shifts to more efficient member countries from inefficient domestic or outside countries. Trade diversion: production shift to inefficient member countries from more efficient outsiders.Dynamic effects: Long-term effectsCost reduction due to economies of scale Cost reduction due to increased competition.

Major Regional Trading Blocs NAFTA (North American Free Trade Agreement) : Canada, Mexico, US EU ( European Union) : Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Portugal, Spain, Sweden United Kingdom EFTA ( European Free Trade) : Iceland, Liechtenstein, Norway, Sweden LAIA (Latin American Integration Association) : Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Uruguay, Venezuela CARICOM (Caribbean Community) : Anguilla, Antigua, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Montserrat Jamaica, St. Kitts-Nevis, St. Vincent and the Grenadines, Trinidad CACM (Central American Common Market) : Costa Rica, El Salvador Guatemala, Honduras, Nicaragua MERCOSUR (Southern Common Market) : Argentina, Bolivia, Brazil, Chili, Paraguay, Uruguay

(Continue) Major Regional Trading Blocs APEC (Asia Pacific Economic Cooperation) : Austria, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New Guinea, Philippines, Singapore, South Korea, Taiwan, Thailand, United States SAARC (South Asian Association for Regional Cooperation) : Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka ANCOM (Andean Common Market) : Bolivia, Colombia, Ecuador, Peru, Venezuela ECOWAS (Economic Community of West African States) : Benin, Burkina Faso, Cape Verde, Gambia, Ghana, Guinea, Mali, Guinea-Bissau, Ivory Coast, Liberia, Mauritania, Niger, Nigeria, Togo, Senegal, Sierra Leone GCC (Gulf Cooperation Council) : Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates

NAFTANorth American Free Trade Agreement

WHAT IS NAFTA?

The North American Free Trade Agreement (NAFTA ) is a trilateral trade bloc in North America created by the governments of the United States, Canada, and Mexico

The agreements were signed in December 1993 by the leaders of the three countries Brian Mulroney of Canada, Carlos Salinas de Gortari of Mexico, and Bill Clinton of the United States but did not come into effect until January 1, 1994.

In terms of combined purchasing power parity GDP of its members, as of 2008 the trade bloc is the largest in the world and second largest by nominal GDP comparison.

It also is one of the most powerful, wide-reaching treaties in the world.

Final provisions of the North American Free Trade Agreement (NAFTA) were fully implemented on January 1, 2008.

NAFTA one of the most successful trade agreements in history and has contributed to significant increases in agricultural trade and investment between the United States, Canada and Mexico and has benefited farmers, ranchers and consumers throughout North America.

NAFTA COMPLIANCE TEAM

THREE PERSON TEAM DEDICATED TO RESOLVING NAFTA MARKET ACCESS AND COMPLIANCE CASES.

TEAM LEADER, MEXICO AND CANADA DESK OFFICERS

THE TEAM COMBINES EXPERIENCE IN UNDERSTANDING NAFTA REGULATIONS WITH SPECIFIC COUNTRY EXPERTISE

TRY TO RESOLVE PROBLEMS BY PERSUADING FOREIGN COUNTRY TO COME INTO COMPLIANCE VOLUNTARILY, AVOIDING TIME AND EFFORT INVOLVED IN FORMAL DISPUTE SETTLEMENT

NAFTA IN PERSPECTIVE

U.S. two-way trade with Canada and Mexico exceeds U.S. trade with the European Union and Japan combined.

In fact, US trade more in a month to Mexico than with all the other countries in a year. US export more to Mexico in a day than with Paraguay in a year.

US export more in a week with Canada than with Central America in a year

U.S. TRADE IN PERSPECTIVE2008

Top Ten Countries with which the U.S. Trades

KEY NAFTA PROVISIONS

Sanitary and Phytosanitary Measures

Export Subsidies

Internal Support

Grade and Quality Standards

Rules of Origin

BENEFITS

LIMITATIONS

NAFTA eliminates trade barrier

Benefits the importers by reduced or duty free goods.

No MPF from Canada for NAFTA goods

Can make the exporter more competitive then other non-participating countries

200% increase in trade among the 3 countries.

Increase market access within each country.BENEFITSBENEFITS

LIMITATONSIt has negative impacts on farmers in Mexico who saw food prices fall based on cheap imports from U.S. agribusiness

It has negative impacts on U.S. workers in manufacturing and assembly industries who lost jobs.

Critics also argue that NAFTA has contributed to the rising levels of inequality in both the U.S. and Mexico.

Some economists believe that NAFTA has not been enough (or worked fast enough) to produce an economic convergence, nor to substantially reduce poverty rates

NAFTA SUPPLEMENTSThe North American Agreement on Environmental Cooperation (NAAEC)

The North American Agreement on Labour Cooperation (NAALC)

PUBLIC OPINION

Public opinion toward NAFTA in the United States, Canada, and Mexico is mixed. A survey conducted by CIDE and COMEXI in Mexico showed that 64 percent of the Mexican public favored NAFTA.

The Program on International Policy Attitudes reported in a poll that 47 percent of Americans thought that NAFTA has been good for the United States, while 39 percent thought it had been bad for the country

Impact on Jobs

The study's indicates that the reduction in net exports to Mexico has eliminated 227,663 U.S. job opportunities since 1993, and the reduction in net exports to Canada has eliminated 167,172 job opportunities in the same period. In total, NAFTA resulted in a net loss of 394,835 jobs in its first three years. The analysis finds that NAFTA has eliminated significant numbers of jobs for women and members of minority groups, as well as white males. Between 1993 and 1996, women lost 141,454 jobs to NAFTA, blacks lost 36,890 jobs, and Hispanics lost 22,520 jobs, numbers closely reflecting these groups' shares in manufacturing industries

CONCLUSIONNAFTA is one of the most successful treaties of the times in terms of growth in trade i.e. imports & exports , G.D.P etc. but on the other hand it is also responsible for causalities like loss of jobs, migration, rising level of inequality and many others.Thus it is important that the treaty should be carried forward concerning about taking steps for the problems originated due to NAFTA ,otherwise it will create inequality in many terms which can lead to bad conditions in future for all the three countries.

SAARC: South Asian Association for Regional Cooperation

Introduction and Background InformationThe South Asian Association for Regional Cooperation (SAARC) was established in December 8, 1985

Members include India, Pakistan, Bangladesh, Sri Lanka, Nepal,the Maldives, Bhutan, and Afghanistan

Introduction and Background InformationSAARCs mission is to accelerate the process of economic and social development of member statesAreas of cooperation: -Agriculture and rural development-Health and population activities-Women, youth, and children-Environment and forestry-Science, technology, and meteorology-Human resources development-Transport

How Far Has SAARC Progressed?Summits have taken place focusing on expanding and strengthening the regional cooperationSeveral ministerial level meetings have taken place to give due emphasis in various fieldsCreation of food bank holding reserves 241,000 tons of rice and wheat for security reasonsAntiterrorism police force set up in PakistanSouth Asian Free Trade Agreement (SAFTA)Eliminate tariffs among the member states by 2016

Focus of StudySouth Asia is among the poorest and least developed regions in the worldSouth Asian countries are faced with poverty, unemployment, income disparities and social and economic deprivationEffectiveness of SAARC has come under question due to its inability be an functional regional trading organizationOur focus of study is how to make SAARC work for South Asia: how to make it an effective trade bloc capable of undertaking successful regional initiatives

Why SAARC Has Been a DisappointmentSAARC is ineffective due to conflicts between its members and a lack of progress made compared to other regional organizations such as ASEANIndias hegemony: largest economy in the bloc, creates imbalance by having the most powerPakistans political instabilityNuclear arms race and Kashmir conflict between India and PakistanInstitutional structure provides a useful platform for conceptualization, but not implementation of programsMain challenge facing SAARC today how to make it effective and action oriented

Why SAARC Has Been a DisappointmentSocial indicatorsPoverty, education, natural disasters, Indias workforce sizePolitical factorsIndia and Pakistan, systemic differences and military conflictEconomic factorsIneffective trade, GDP imbalance, trade imbalance

Demographics and Social IndicatorsAlthough real wages are growing, poverty still remains problem, because it impedes commercial stability nationally and within the trade blocWages are low among SAARC countries

Chart1

2364.4418811325.43684.821543.293443.27

2506.661917.691402.473933.391631.63587.92

2604.791966.181388.484278.411700.253740.53

2838.22053.411434.454567.071791.473994.72

3110.382208.551495.814879.071917.284276.43

3452.52382.921551.15236.062054.264632.17

3827.12552.551595.565703.192216.935080.6

India

Pakistan

Nepal

Bhutan

Bangladesh

Sri Lanka

Year

GDP per capita, PPP(US$)

Sheet1

2000200120022003200420052006

India2364.442506.662604.792838.23110.383452.53827.1

Pakistan18811917.691966.182053.412208.552382.922552.55

Nepal1325.41402.471388.481434.451495.811551.11595.56

Bhutan3684.823933.394278.414567.074879.075236.065703.19

Bangladesh1543.291631.61700.251791.471917.282054.262216.93

Sri Lanka3443.273587.923740.533994.724276.434632.175080.6

Sheet1

India

Pakistan

Nepal

Bhutan

Bangladesh

Sri Lanka

Year

GDP per capita, PPP(US$)

Sheet2

Sheet3

Social Indicators: EducationLow education level in some countries is leading to a lack of developmentGaps between enrolment and completion of education

Social Indicators: Indias WorkforceLabour force of India is much larger than other SAARC members, therefore trade agreements would be in favour of India

Chart3

443122000

58527000

10831000

123000

259000

65283000

8475000

0

Labour force, total

Sheet1

CountryLiteracy rate, adult total (% of population)

India61.01

Pakistan49.87

Nepal48.59

Maldives96.33

Bhutan59.50

Bangladesh47.49

Sri Lanka90.68

Afghanistan28.00

CountryHealth expenditure (% of GDP)

India5CountryLabour force, total

Pakistan2.2India443,122,000

Nepal5.6Pakistan58,527,000

Maldives7.7Nepal10,831,000

Bhutan4.6Maldives123,000

Bangladesh3.1Bhutan259,000

Sri Lanka4.3Bangladesh65,283,000

Afghanistan4.4Sri Lanka8,475,000

Afghanistan0

CountryUnemployment, total (% of total labour force)

India5

Pakistan7.7

Nepal8.8

Maldives2

Bhutan3.1

Bangladesh4.3

Sri Lanka8.5

Afghanistan0

GDP (thousands US$)

200120022003200420052006

India478290444507917926601826918695858364805732024906267984

Pakistan71498695714793628234321597994785111298888128830202

Nepal556378555010025869858673186873907488051663

Maldives625065640703692438776461755931915207

Bhutan492725544578610661708615827501927154

Bangladesh469530384751321951824157566762746003352361960962

Sri Lanka157457011653618018246402200542022353824026966583

Afghanistan246163940366894584685595196773055558399039

200120022003200420052006

India2506.662604.792838.23110.383452.53827.1

Pakistan1917.691966.182053.412208.552382.922552.55

Nepal1402.471388.481434.451495.811551.11595.56

Maldives

Bhutan3933.394278.414567.074879.075236.065703.19

Bangladesh1631.61700.251791.471917.282054.262216.93

Sri Lanka3587.923740.533994.724276.434632.175080.6

Afghanistan

20012002200320042005

Afghanistan.. .. .. .. ..

Bangladesh243238729305407997397671113420255125474209677

Bhutan.. .. .. .. ..

India167986842171912510866623091503438.. ..

Nepal302714320192193636302404239355773590271395613

Maldives350954366359789415428956042504145000311042140

Sri Lanka13339307161247232597138919721215062807771518740760

Pakistan13020000001496000000147600000017190100002043000000

200120022003200420052006

India167986842171912510866623091503438.. .. ..

Pakistan13020000001496000000147600000017190100002043000000..

Nepal302714320192193636302404239355773590271395613..

Maldives350954366359789415428956042504145000311042140..

Bhutan.. .. .. .. .. ..

Bangladesh243238729305407997397671113420255125474209677..

Sri Lanka13339307161247232597138919721215062807771518740760..

Afghanistan.. .. .. .. .. ..

200120022003200420052006

India167986841912510923091503

Pakistan13020001496000147600017190102043000..

Nepal302714192194302404355774271396..

Maldives350954359789428956504145311042..

Bhutan..

Bangladesh243239305408397671420255474210..

Sri Lanka13339311247233138919715062811518741..

Afghanistan..

200120022003200420052006

India4336100049250000589629007642710099472000120168120

Pakistan9238000991300011930000133790001605100016916690

Nepal737000568000662000756000830000760000

Maldives110000132000152000181000162000222000

Bhutan106000112704132882183000258200350000

Bangladesh6080000614900069900008305000929700012050000

Sri Lanka481600046990605125150575690063467906860000

Afghanistan100000250000144000314000340000400000

200120022003200420052006

India197923362077791625510696

Pakistan22160002095000310200051010007208000

Nepal205339231066257693375746423837

Maldives108445109879119471155487187299..

Bhutan..

Bangladesh14233401317891159495018352862011362..

Sri Lanka17347161552873164622518724222051314..

Afghanistan..

200120022003200420052006

India50392000565170007255770099096600139369000174376000

Pakistan101910001123300013038000179490002535730029825480

Nepal147300014190001754000187000018600002100000

Maldives393000391720470780641817744865940000

Bhutan191000196541248984411000386292320000

Bangladesh9018000859200010434000120360001388900016100000

Sri Lanka5973000610480066719407972880883367010226000

Afghanistan169600024520002101000217700025200002850000

Sheet1

Literacy rate, adult total (% of population)

Sheet2

Health expenditure (% of GDP)

Sheet3

Labour force, total

Unemployment, total (% of total labour force)

India

Pakistan

Nepal

Maldives

Bhutan

Bangladesh

Sri Lanka

Afghanistan

GDP (thousands US$)

India

Pakistan

Nepal

Maldives

Bhutan

Bangladesh

Sri Lanka

Afghanistan

GDP per capita, PPP (US$)

India

Pakistan

Nepal

Maldives

Bhutan

Bangladesh

Sri Lanka

Afghanistan

Commercial service exports (thousands US$)

India

Pakistan

Nepal

Maldives

Bhutan

Bangladesh

Sri Lanka

Afghanistan

Merchandise exports (thousands US$)

India

Pakistan

Nepal

Maldives

Bhutan

Bangladesh

Sri Lanka

Afghanistan

Commercial service imports (thousands US$)

India

Pakistan

Nepal

Maldives

Bhutan

Bangladesh

Sri Lanka

Afghanistan

Merchandise imports (thousands US$)

Social Indicators: Natural DisastersSouth Asia is frequently hit by natural disasters, such as cyclones, earthquakes, and tsunamisThe South Asian tsunami of 2004 killed over 273,000 peopleCurrently, a cyclone in Bangladesh is expected to cause a death toll of 10,000 peopleSAARC has not taken an active role in the recovery efforts for these disastersSAARC has the power to unite and organize efforts for natural disaster recovery in the region

Political Factors: India and PakistanIndia and Pakistans relationship is tensedifferences in foreign policies and different political systemsIndias foreign policyis focused onself-reliancePakistans foreignpolicy is outwardorientedKashmir conflictnuclear arms race

Political Factors: Systemic Differences and Military ConflictPakistans political instabilityBenazir Bhutto and MusharrafDifferent political systemsDemocracy, military dictatorship, Buddhist monarchy, transitional democracyPolitical tensions due to harbouring terroristsIndias disputes with other SAARC membersNepal and Maoist rebelsTamil Tigers in Sri Lanka

Economic Issues: Trade ImbalanceIndias export share dominates over other SAARC membersIndias goods are more diversified

Economic Issues: Trade ImpedimentSouth Asian market is relatively small compared to foreign marketsMembers focus on trade with countries outside the region (extraregionaland interregionaltrade) instead ofintraregional tradeThis undermines theeffectiveness ofSAARC

How to Make SAARC WorkUse SAARC as a social tool to solve regional disputes before tackling economic problemsEstablish political stability first, then develop common economic policies and regional standardsSAFTA has not proven very useful due to substitute good productionFind ways to offset Indias large size and its influence on SAARCIndia should establish a mediating role due to its sizeSome goals are too lofty for the bloc members political and economic capacities: focus on smaller stepsMore action, less talk

How to Make SAARC WorkIf SAARC cooperates, FDI will be increased, reducing poverty and hardshipTry to reduce inequality gaps and prevent gaps from occurringTake down bilateral trade agreements and work on regional agreements using SAFTAImprove infrastructure and increase expenditures on infrastructure, especially in remote areas like Nepal and BhutanNatural disaster aid efforts can provide opportunities for regional cooperationDiversification of export goods needed

Thank You*Please forward your query To: pnarwal@amity.eduCC: manoj.amity@panafnet.com

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