Published on Mon, Feb 19, 2007 at 10:51 | Source : Moneycontrol.com
Updated at Mon, Feb 19, 2007 at 17:40
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South Asia least-integrated region: WB
The annual trade between India and Pakistan which is currently at about $1billion has the potential to grow in excess of $9 billion over the next five years, if barriers relating to policy, infrastructure, corruption and red-tape are adequately addressed, said Mr Graeme Wheeler, World Bank's Managing Director.
The annual trade between India and Pakistan which is currently at about $1billion has the potential to grow in excess of $9 billion over the next five years, if barriers relating to policy, infrastructure, corruption and red-tape are adequately addressed, said Mr Graeme Wheeler, World Bank's Managing Director.
Speaking at the valedictory session of the Second SAARC Business Conclave, Mr Wheeler said that despite a common location and history, South Asia is the least integrated region in the world. While these countries have significantly opened up trade with the rest of the world, they remain closed to each other.
Barriers of policies, infrastructure and corruption hamper the growth of trade. Countries now need to work towards reducing costs of doing business, improving institutions and addressing infrastructure constraints, he said.
"Trade integration is a major opportunity. But, regional cooperation in energy and water could produce even bigger returns. India, one of the most energy-hungry nations in the world, sits next to three energy-surplus countries - Bangladesh, Nepal and Bhutan. Yet, except for Bhutan, energy trade between them is minuscule," Mr Wheeler pointed out.
He said that all countries can win from cooperation. The cooperation between India and Pakistan on the Indus River ushered in the Green Revolution during the 1960s.
"Trade integration is a major opportunity. But, regional cooperation in energy and water could produce even bigger returns. India, one of the most energy-hungry nations in the world, sits next to three energy-surplus countries - Bangladesh, Nepal and Bhutan. Yet, except for Bhutan, energy trade between them is minuscule," Mr Wheeler pointed out. 
