SUB-REGIONAL CO-OPERATION IN ASEAN AND ROLE OF PRIVATE SECTOR: RELEVANCE FOR SAARC

This article examines the experience of sub-regional cooperation in ASEAN, particularly the development of "growth triangles," and assesses the relevance of this model for the SAARC region. It analyzes the key features of ASEAN's sub-regional initiatives, which are characterized by their pragmatic, project-based approach and the central role played by the private sector in driving integration. The study uses the example of the Singapore-Johor-Riau (SIJORI) growth triangle to illustrate how complementary economic assets in contiguous cross-border areas can be harnessed for mutual benefit. The research then explores the potential for applying this model in South Asia, particularly through the concept of the South Asian Growth Quadrangle (SAGQ) involving Bangladesh, Bhutan, Nepal, and eastern India. The paper argues that such a sub-regional, private-sector-led approach could be a way to bypass the political-level deadlocks that have often stalled progress in the broader SAARC framework. The analysis concludes that the ASEAN experience offers valuable lessons for South Asia in pursuing a more pragmatic and results-oriented path to regional cooperation.

While the top-down, state-led process of regional cooperation in SAARC has often been fraught with political difficulties, the experience of ASEAN offers an alternative, more dynamic model: sub-regional cooperation. This paper provides a detailed analysis of this model and its relevance for South Asia. The first part of the study is an in-depth examination of the "growth triangle" concept as pioneered by ASEAN. It uses the SIJORI growth triangle as a prime case study, demonstrating how the combination of Singapore's capital and technology, Johor's (Malaysia) land and skilled labor, and Riau's (Indonesia) natural resources and unskilled labor created a powerful and synergistic economic zone. The paper emphasizes the crucial role of the private sector as the primary engine of these initiatives, with governments playing a facilitative rather than a directive role. The second part of the paper directly assesses the applicability of this model to the SAARC context. It focuses on the then-nascent proposal for a South Asian Growth Quadrangle (SAGQ), arguing that the contiguous regions of Bangladesh, Bhutan, Nepal, and eastern India possess the kind of economic complementarities that could make such a sub-regional project viable. The findings suggest that this bottom-up, market-driven approach to integration could be a way to make tangible progress on cooperation while circumventing the high-level political problems that have plagued SAARC. The paper concludes with a strong endorsement of the sub-regional model as a pragmatic pathway for South Asia.