India’s performance will impact LDC members

Published in the Indian Financial Express on 11 January 2006

Not many games exist in the game-theory literatures that illustrate a perfect game which can come up with a win-win result for all its players. Aiming such an intricate target, the seven members of the Saarc family have launched a Safta-era, to be fully operational by the next decade. This is the second step towards a South Asian economic union. The first step, which was to create a preferential trading arrangement under Sapta, was a frustrating experience with its protracted mechanism.

If a right trajectory is set for Safta, this can subsequently lead to a South Asian customs union, move forward to a common market and then reach the final destination of a South Asian economic union. A free interaction will not be an easy task since member-countries of Saarc are at various stages of development. Given its sheer size, momentum of growth and competitive strength, India will have significant repercussions on its low-income neighbours. Read more of this post