By Swaran Singh

As many South Asia nations still struggle to partake of the benefits of globalization, the recent summit of the South Asian Association for Regional Cooperation (SAARC) in New Delhi extended the association's potential with widened membership and powerful nations present as observers.

It will be remembered for several new initiatives.

First, the 14th meeting of the heads of state or government of SAARC welcomed Afghanistan as its eighth member. The presence of Afghanistan completes the strategic unity of the subcontinent, raising hopes for possible Afghanistan-India-Pakistan sub-regional cooperation.

Second, this was the first summit with five observers China, the United States, the European Union, Japan and South Korea. Their presence reflects the rising stature of SAARC within the international community. SAARC leaders, in principle, approved Iran's application for admission with observer status at future SAARC meetings.

Third, although this was the third summit held in India, it was the first against the background of positive relations between India and Pakistan. At all preceding summits, India-Pakistan bilateral relations had been the fundamental hurdle.

Fourth, the summit marked India's own evolution and the unfolding of a new chapter in its SAARC policy. In the spirit of unilateralism and without expecting reciprocity from its smaller neighbors, India displayed a new self-confidence. This facilitated the addition of major powers like China into the SAARC family.

Other indicators of a favorable environment included the end of Nepal's decade-long left-extremist violence and the beginning of a democratic process; the peaceful succession of a new king in Bhutan with a multi-party administration in the works for 2008; and relative stability in Bangladesh.

In terms of continuity, democratically elected Maldives President Mohammed Abdul Gayoom is the only SAARC-member country leader who has attended all 14 summits.

This SAARC summit was not completely devoid of the usual skirmishes. Pakistani Prime Minster Shaukat Aziz raised issues of SAARC's having been mired in managing conflicts. He cited a "trust-deficit" in expanding bilateral trade and free trade arrangements to resolve Kashmir issues.

Not free from political skirmishes at home, when Sri Lankan President, Mahinda Rajapakse proposed a single currency for SAARC nations, it triggered an uproar in the Sri Lankan Parliament led by Opposition leader Ranil Wickremesinghe.

Heightened paranoia over air attacks by Liberation Tigers of Tamil Elam (LTTE) in Sri Lanka was also felt during the SAARC summit.

As for constructive decisions, the commitment to expanding transportation connections among the countries clearly symbolized the new SAARC spirit.

The leaders flagged off the New Delhi segment of an SAARC car rally with 120 drivers and 30 cars from SAARC countries. This first SAARC rally took off from Bangladesh and will wind up in Maldives on April 14. The rally is expected to become an annual event, promoting regional trade and tourism.

As part of their deliberations, India and Pakistan both emphasized regional integration through stronger links in trade, transport, movement of people and flow of ideas. Indian Prime Minister Manmohan Singh announced that India will relax visa procedures for journalists, students, academics and doctors working in SAARC countries.

SAARC moved a step further from its decision in principle at the last summit to grant SAARC visa stickers for media-persons. SAARC immigration officials will meet soon to work out details in granting 50 such stickers to each of the SAARC countries.

India also announced that starting this year, the least developed SAARC countries Bangladesh, Bhutan, Maldives, Nepal will be given completely duty-free access to Indian markets.

India proposed completing airline connections among all eight SAARC capital cities in the next 18 months. The proposal includes connecting SAARC capitals with 18 Indian cities.

The original proposal was made by the Indian prime minister during the 13th SAARC summit in Dhaka in November 2005.

India has since followed this with formal proposals to all SAARC nations (minus Pakistan). It has proposed an Open Sky Policy to facilitate private sector initiatives and encourage competition in developing these air links.

New Delhi has also offered SAARC members "Fifth Freedom Rights" civil aviation jargon for allowing each of these countries' airlines to use Indian cities for stopovers for onward journeys to other SAARC-member countries and other destinations.

To date, Sri Lanka is the only country which has reciprocated. Air Lanka is now the largest foreign operator in India with more than 100 flights per week.

In contrast, while Pakistan supported India's proposals, it has opposed allowing air carriers to have multiple destinations even among SAARC countries.

While there remains uncertainty over the exact role of observer states, this summit provided some indicators of their possible contribution to SAARC proceedings.

The most noticeable was the slew of bilateral meetings involving observers during the summit.

Chinese Foreign Minister Li Zhaoxing, in his bilateral meetings with India's prime minister, emphasized that China saw the summit as an additional opportunity to strengthen the China-India strategic and cooperative partnership.

The Indian prime minister welcomed China as an observer and said that SAARC would like to share China's expertise in areas including poverty alleviation.

At the same time, Li Zhaoxing took the lead in outlining the role of SAARC observers. Speaking at the opening session, the foreign minister outlined two specific measures to institutionalize China's relations with SAARC: formalizing the China-South Asian Business Forum and holding a workshop this year on contemporary China for South Asian diplomats.

Japan and South Korea foreign ministers also outlined plans to expand their countries' trade and investments in SAARC countries. Their observer status in SAARC is expected to provide them with one more platform to benefit from the economic boom in some of the South Asian countries.

Japanese Foreign Minister Taro Aso announced specific Japanese proposals for acting as a catalyst in SAARC regional integration.

He pledged on behalf of Japan US$7 million to the SAARC special fund for social and cultural exchanges. He also expressed Japan's commitment to help develop connections among SAARC members.

As part of its involvement, Japan plans to invite more than 500 high school and university students from SAARC member countries to visit Japan every year.

In fact, the two-day SAARC summit produced some historic breakthroughs.

The leaders agreed to set in operation the US$300 million SAARC Development Fund, establish the South Asian University (starting in New Delhi), create the SAARC Food Bank and the SAARC Arbitration Council.

With the people of South Asia the focus of SAARC deliberations, the leaders agreed to "achieve tangible progress" in the next six months on at least four other issues affecting member-states' population. These include water (including flood control), energy, food and the environment.

Leaders clearly identified terrorism, poverty and natural disasters as their major challenges. Trade and investment were highlighted as means to facilitate cooperation.

In their eight-page declaration at the end of the summit, leaders emphasized taking "every possible measure" to stop the financing of acts of terror and to counter trafficking in narcotics and illicit arms.

In consonance with the Comprehensive Convention on International Terrorism, currently being debated at the United Nations, Sri Lanka will hold a meeting of legal advisers to develop a SAARC convention on mutual assistance to combat terrorism and organized crime. The meeting will be held before the SAARC interior ministers meet in India in October.

SAARC designated 2007 as "Green Year" and "South Asia Year of Tourism".

The leaders designated 2008 as "SAARC Year of Good Governance".

Member states are expected to intensify environmental protection initiatives, and streamline visa arrangements and transportation networks among SAARC countries.

Pakistan revived its proposed "Energy Ring" originally presented at the 12th SAARC summit in Islamabad in 2004.

Pakistan remains in the lead in this sector. It has already set up a regional energy center, which has made impressive progress in recent years.

Afghanistan's membership in SAARC and future observer status for Iran have raised hopes for the Iran-India-Pakistan energy pipeline.

Since SAARC's creation in 1985 to promote economic cooperation, the association has not only expanded in size and scope. It has moved towards dealing with the critical issues of food security and terrorism. This new cooperation reflects the South Asian nations' growing confidence and mutual good will.

The author is associate professor with the School of International Studies, Jawaharlal Nehru University, New Delhi.

(China Daily April 12, 2007)