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SAARC businessmen concerned over postponement of SAARC Summit

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February 5, 2001 

Kathmandu-- (UNB) – South Asian business leaders in a conference here yesterday vented concern over long postponement of the SAARC Summit and suggested intensifying consultations at political levels for its early holding for taking economic cooperation on high gear.

Inaugurating the 5th SAARC Economic Cooperation Conference 2001 last (Sunday) morning at Hotel Soaltee, Nepalese Prime Minister Girija Prasad Koirala shared their worries at postponement of SAARC summit.

He told the conference that it was not merely a business meeting but a political as well.

Making a veiled reference to the recent telephonic contacts between Atal Behari Vajpayee and General Mosharraf, Koirala indicated things started moving towards holding the overdue summit.

The summit scheduled for November 1999 in Kathmandu was stalled following political tensions between India and Pakistan, the two major member countries of SAARC.

The Nepalese Prime Minister fully agreed with the business leaders, who pleaded for building an effective strategic partnership of governments and private sectors of SAARC.

The business leaders said such measures were essential for moving the regional cooperation in right direction at desired speed.

Koirala reminded that “South Asia is the largest concentration of people living below poverty line”.

He said, “Only a sustainable growth that generates opportunities for gainful cooperation can eradicate poverty from the region. To meet this challenge, the best remedy is government and private sector should join hands to build the partnership”.

The conference on "Government-Private Sector Partnership: A Strategic Alliance for 2010" is being attended by business magnets of the seven SAARC countries.

Koirala said the forum started addressing some core economic issues. With operationalisation of SAPTA, the grouping set a higher goal---eventual progression of the SAARC economic cooperation into a free trade area.

As he mentioned that drafting an agreement on establishing South Asia Free Trade Area was under process, business people even talked of South Asian Economic Union in line with the European Union.

Stressing the need for holding the summit, they said lot of issues remained stalled and could not progress due to postponement of the summit meet.

SAARC Secretary General Nihal Rodrigo, who also addressed the opening session, said socio-economic situation in the region is "grim" and suggested that government and private sector need to work in maintaining and developing the economy through forming strategic alliance.

Later talking to UNB on the sidelines of the conference, he expressed his optimism about holding the SAARC summit if not immediately but within this year. He pointed to telephonic talks between Indian Prime Minister Atal Bihari Vajpayee and Pakistan's Chief Executive General Parvez Mosharraf following the recent devastating earthquake as a positive indication of things moving on political plane.

"Yes”, replied Nihal Rodrigo when asked if he thought Vajpaye-Musharraf brief talks as a thaw in the chilled relations between the two rivals, who can do the most for a meaningful economic cooperation in the region.

Speakers said private sectors were faced with new challenges and need to enhance regional co-operation for facing the WTO challenges that are coming in a pack with the rewards of free-market economy.

"But we all know the efforts of the private sector alone are not sufficient. The governments will have to bear their due share of the burden," said Federation of Nepalese Chabers of Commerce and Industry (FNCCI) President Pradeep Kumar Shrestha at the inaugural ceremony of the conference.

In his inaugural speech Koirala further said: "Nepal had been trying to host the summit and yesterday's meeting should address these political issues which should help in resolving the politics and pave the way for holding of the SAARC summit."

He said that the South Asian economy as a whole is competitive and building a cooperation in the regional economy. The challenges should be faced up by government- private sector partnership.

Koirala concluded saying that the rapid changes which have been seen in the socio-economic lives during the last decade are indicating that the SAARC members must be prepared to build a future of its own.

Speaking on the occasion SAARC Chamber of Commerce and Industry (SCCI) President Qasim Ibrahim said, in the past it was generally believed that development is the responsibility of the government.

"But the world is changing so should our region. After decades of state domination of economic activity, many governments around the world are relying increasingly on the private sector to foster economic growth."

There are a number of cross-sectoral issues relating to government-private sector partnership, he said, adding that the government should concentrate in formulating investment friendly policies in order to pave the way for private sector to flourish.

"The government should specialise in planning, structuring, and regulation while the private sector should specialise in management, investment, construction and financing," the SCCI chief told the meet.

And against this backdrop, the SCCI arranged the conference to endorse its commitments to the importance of government-private sector partnership, he added.

The SCCI president, a Maldivian businessmen, also observed South Asia is a big market with a growing population, its source of production as well as the largest consumer. "I am sure that the region can become more and more prosperous if the governments and private sectors of the region join hands and work together for mutual gain".

The SAARC Secretary General, Nihal Rodrigo, observed that although the role of the government is said to be less pervasive and diminishing and private enterprise has been moving into new areas, it is the government which clearly continued to play the lead role.

He said that in the South Asian context, the strategic alliance of government and private sector is related in many respects to the larger global compact.

"The government and private sector are often seen as two mutually exclusive, even adversarial groups with different agenda, different ethics and different methods," he said.

The government which includes political leaders and the bureaucracy is characterised as slow, inefficient, wasteful and tied up in red tape. And the private sector is characterised as ruthless, unfeeling and driven by pure profit alone.

Nihal Rodrigo made a harsh comment on both, albeit suggesting correction, that the only uniting factor between the two is corruption. "One gives bribes, the other accept it."

He, however, said that all the South Asian governments had declared their commitment to accountability, responsibility and transparency. "They have emphasised the importance of the private sector in their economies. Many have declared the private sector to be the engine of growth in the economy."

FNCCI President Pradeep Kumar Shrestha, while underscoring the need for government-private sector partnership, said it should not be confined at the national level. The international agreements and negotiations by the government have direct impact on the business of the private sector.

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