Equity and Justice Working Groupwww.equitybd.org

Peoples’ Expectation and South Asian Union

Media Foundation for Trade and Development

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SAARC Objectives

1. To promote cooperation among South Asian countries in all areas of cooperation by identifying SAARC countries common strengths and opportunities which will help reduce poverty and improve the quality of life of SAARC poor people.

2. To expand the trade and financial market within SAARC countries and increase the trade in lieu of competition and, in turn, enhance SAARC economic competitive union in the global market

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Socio Economic situation of SAARC countries

- Near about 500 million people are living under poverty line and slow pace of achieving MDG & SDG

- Existing conflict among members countries and local insurgence

- Influence of fundamentalism in politics

- Low rate of progress in education and in near about 40-

50% people are depriving from health service

- Per capita GDP is least (<500 US$)

- Increasing unemployment and income inequality

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Causes of poverty in SAARC countries

Colonial exploitation of 250 years

Neo colonial economic structure;

- Washington consensus

- Structural Adjustment policy

- Poverty Reduction Strategy

Internal conflict and volatile political situation has been undermining development progress of SAARC countries

Internal dominating tendency are hindering the progress of regional economic activities

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Official agenda in 15th SAARC summit

Focus of 15th SAARC Summit

- Food Security

- Climate Change and

- SAFTA

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Loop holes of Food Security

- Neo Liberal Food Security defined;

‘all people at all times have both the physical and economic access to the basic food they need’.

The definition compliances following conditions ;

- Market based and comparative advantage of production

- Adequacy of food supply or availability,

- Stability of supply

- Access to food at the HH level, and by the poor.

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Loop holes of Food Security

But the market based concept of FS denies;

The local agricultural production and production system.

The farmers rights to choice & produce food, preserve seed and consumers rights to

consumption and purchase

The right of nations to protect themselves from agricultural and food imports (dumping).

Link agricultural prices to production costs

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Neo liberal Food Security; Myth & Reality

- Technologies helped to increase global rice output steadily from about 254 m tones in 1965 to 598 m tones in 2000.

But reality is,

- This growth rate has been declining since 2000....... indicating the need for additional support to produce Bio Fuel.

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Recent food-politics; Bangladesh has suffered

Two prolonged floods and cyclone SIDR caused 1.4 million tones crop loss.

India given commitment to assist 0.5 m tones rice to recover the situation but didn’t keep the commitment

Having the chance of global food crises exporters have been increased their food price and even declared suspension of export also.

Bangladesh didn’t able to collect necessary food despite all out effort and agree to purchase with cash price.

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Ensuring food security in SAARC countries

- Establish Regional Food Bank at least for two month of uninterrupted food supply.

- Introduce of flexible trade policy for inter regional food trade and transaction

- Common agriculture policy have to adopt and subsidy have to increase for poor farmers

- Ban on GM food in SAARC countries.

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Climate Change; Impact in SAARC countries

Rich countries are big carbon emitter and responsible for climate change

Country Emitted CO2

USA 24.4%

EEU 15.3%

China 14.5%

India 5.9%

Pakistan 0.5%

Bangladesh 0.1%

Sri Lanka <0.1%

Nepal <0.1%Source: CO2 Emission Report-2005

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Climate Change; Impact in SAARC countries

Bangladesh would be worst victim of incidence and intensity of Hydro-metrological Disasters like;

- Submersion of 15-17% land by 1 m Rise of Sea Level

- 20 m. People will Become Environmental Refugee

- Flooding Risks of Low Land will be Increased by 29% ,

- 145 km Sandy Shoreline in CXB Would be Inundated

- Submersion of 58 thousand Hectare land by 2030

In 2007 we faced flooding, 13 depressions formed in the Bay including Cyclone SIDR that hit Bangladesh’s Coast

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Climate Change; Impact in SAARC countries

Endangered Economy

1970 cyclone caused death 1.2 m; USD 86.4 m. financial loss

1991 Cyclone caused death 138, 000 ; USD 1780 m financial loss

Cyclone SIDR in 2007 caused death 3199, Affected families 6.8 million, Financial Loss estimated USD 3.2 billion

SAARC member countries will face the same scenario along with desertification, salinity etc those would be cause of huge damage of livelihood and economy.

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Climate politics; Bypassing LDCs interest

Avoiding UNFCC/Kyoto Protocol G-8 countries trying to introduce the Climate Change Investment Fund through WB. This fund includes,

- The Clean Technology Fund (CTF)

- The Forest Investment Fund

- The Adaptation Pilot Fund (APF)

Market based “flexible mechanism” of the Kyoto Protocol to help the northern countries avoid or delay of reducing their GHG emission.

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Politics of carbon trade

Concern: Fund Based Mechanism

Funds are replenished by ‘good will’ from the industrialized countries

Despite repeated call, LDCs aren’t getting 0.7 % of their GNP as dev. aid.

Like aid for trade of the WTO, it may leave LDCs in disadvantageous position.

Concern: Market Based Mechanism

Puts developing and developed countries same trading level; is neither fair nor realistic

GEF, can mobilize USD 1 b in several years wherein the market crossed 5 b in 2007.

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Our position in Climate Change issue

SAARC countries have to take position against WB CIFs and raise voice for “Polluter Pay and Exploiter Pay Principle”, likeOxfam study report made countries responsible for climate crisis as; USA 44 percent, Europe 32 percent, Japan 13 percent, Canada 4 percent, Australia 3 percent and South Korea 2.5 percent.

Globally the IFIs ; the IMF, the WB, ADB, other regional banks, northern governments etc. desperately engaged in fossil fuel exploration & creating huge environmental loss, economic loss and corruption. Example NIKO, Occidental gas-fields blow-out in Bangladesh. So

ALL THESE SHOULD PAY BACK

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Our position in Climate Change issue

SAARC countries have to act together poor countries with rich to support with reliable financing mechanism to implement NAPA ( National Adaptation Plan of Action) Introduce regional fund for renewable energy promotion

SAARC countries have to take an integrated effort to produce Hydro-Power. This effort will help us to reduce the fossil fuel dependency.

Strengthen SAARC Meteorological Center

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SAFTA; Neither effective nor protective

What’s the problem exist ?

SAFTA ministrial and expert council are responsible to speed up trade process of SAFTA, but yet to reaching consensus between India and Pakistan on their strategies.

Promotion of intra-SAARC investments, development of communications and transport, and speedy grant of business visas etc are yet to ensure

Tariff and Para-Tariff barriers are still exist those are really obstacle to increase the trade for SAARC LDCs.

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SAFTA; Neither effective nor protective

What’s the problem exist ?

SAFTA would may come an weaken tools or fall in sideline due to showing interest of India to make bilateral agreement with members countries ignored free trade mechanism.

Member countries didn’t reduce their sensitive list to increase the trade volume. E.g. Bangladesh is not allow to export her readymade garments among other member countries

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How SAFTA might be effective

What focus in SAARC, how ?

Giving priority to free and fair trade for alleviating poverty and short listing of sensitive lists.

Develop of common SAARC Sensitive List to regulate world trade. Because SAFTA control only 3.5-4 % where as European Union and ASEAN are regulating 66 % and 30 % respectively in the world trade. Establish SAARC regional capital market and prevent the resource repatriating FDIs

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