Bishnu Pokharel

Institutionalised initiations of integration are new phenomena in the realm of international relations. History of liberal and institutionalise integration initiation goes back to the establishment of League of Nations. That initiation couldn’t survive and unable to stop second holocaust but left strong footprints to follow. Immediately after the Second World War, United Nations (UN) followed these footprints and became successful up to some extent.

Beside the global integration effort like UN, some European countries started different cooperation movement. It began with European Coal and Steel Community (ECSC), matured as European Community (EC) and eventually turned into European Union (EU).

Most of the scholars from social science discipline agreed that UNO is the first successful global supra-national organisation. These scholars accepted that EU is the first successful regional organisation as well. Different histories can be found, when we go through the evolutionary process of both organisations, though background was the same. UN emerged as an international organisation to handle political issues and to maintain peace in post war period. And, ECSC has emerged to tackle with economic recession caused by long and expensive wars.

Today, the movement of regionalisation isn’t confined only in Europe, it spread in all continents. Though, EU, African Union (AU) and Association of South East Asian Nations (ASEAN) are dealing with political problems and negotiations; but they came together for economic cooperation. The primary focus of ECSC and EC was ‘economic cooperation’ and ‘regional trade integration’. But with the passage of time they added political cooperation too.

Germany and France had fought long war between each other till World War II. Traditionally they were enemy, but after the holocaust they came together to coup with economic recession by taking the initiation of establishment of the ECSC. Now, they are together even in military alliance like North Atlantic Treaty Organisation (NATO).  

The tie up between France and Germany can be seen as a motivating example for explaining the role of economic cooperation to change the relation from enmity to amity. If we minutely study about the evolution of regional integration, we can find crucial role of economic cooperation to build confidence between hostile nations.

The definition of power and diplomacy has been changed. Realistic view of power and diplomacy is not suitable in this globalise and liberal world. Diplomacy based on politics and military power is not much important now. Political diplomacy is becoming as a shadow of economic diplomacy. For instance, we can examine relation between USA and China, Japan and China, China and India and also the Cuba’s relation with USA.

World scenario has been changed after the end of cold war (1990s) and globalisation process got boosted. Economic diplomacy and soft power initiations have become more important than earlier. Some scholars including Francis Fukuyama claimed that after cold war world has turned into unipolar but this claim is being challenged by other scholars, they argue that world is multipolar now. Their logic behind the multipolar world is evolution of regionalisation. Indeed, regional organisations are having certain economic and political power which doesn’t allow single super power sustain in the world.

In this multipolar world regional bloc are enough to make different identity. Economic cooperation is playing vital role to make regional zones as a strong entity of world economy. Regional free trade and economy is increasing. World Trade Organization (WTO), World Bank, International Monetary Fund (IMF) and other organizations are emphasizing on regional trade and economic cooperation.

Trade relation can be the means of conflict resolution and end hostility among nations. But, South Asia is an exception. Here, economic relation has always been guided by politics. As a result, South Asia couldn’t achieve its goal of creating good economic cooperation. There is no encouraging trade relation between South Asian nations as there is very least trade activities take place within region comparing to other regional blocs. South Asia has only around five percent of trade activities within region, whereas North American Free Trade Area (NAFTA), EU, Mercosur and ASEAN are conducting trade activities in very satisfactory manner.

Members of South Asian Association for Regional Cooperation (SAARC) have already introduced South Asian Free Trade Area (SAFTA) but couldn’t increase regional trade. According to researchers, the main reason behind less economic cooperation within South Asia is political conflict between member countries. The Research paper published by Indira Gandhi Institute of Development Research, Mumbai (2007) shows four major problems for economic and trade cooperation in South Asia.

Paper shows that political disagreements, bilateral issues, non-cooperation, and limited coverage of commodities are main problems. It shows an ineffective picture of South Asian Preferential Trade Agreement (SAPTA) and SAFTA. Major causes of ineffectiveness of SAPTA and SAFTA are directly connected to political issues. Researcher claims that three causes out of four are political.

Another research conducted by Sustainable Development Policy Institute, Islamabad, Pakistan (2007) has shown every country in South Asia experienced political conflicts with neighbouring nations. And many countries are still under internal political turmoil.

According to the report published in 2008 by Indian Council for Research on International Economic Relations; political problem within member countries is the reason for not being trust-worthy in order to welcome foreign investors. Interestingly, internal conflict has also the connection with neighbour country. The complexity of ethnic linkage with neighbours is becoming the concern of boarder sharing neighbours. These conflicts and connections are creating obstacle to foster economic cooperation within the region.

These researches showed political issues are dominating factor in South Asia. Intra-state and inter-state political conflicts are common in this region. Without changing political mind-set economic cooperation in South Asia is not possible. But our better future and development is depending on close cooperation between all South Asian nations. Two giant of South Asia, India and Pakistan should realize the importance of economic cooperation and they have to start close tie up in economic cooperation. Without economic cooperation South Asia can’t be a strong regional bloc.