BANGLADESH INSTITUTE OF INTERNATIONAL AND STRATEGIC STUDIES

INFRASTRUCTURE, ECONOMIC GROWTH AND TRADE IN SAARC

Author: Buddhadeb Ghosh, Prabir De

DOI Link: https://www.doi.org/10.56888/BIISSj2000v21n2a2

ABSTRACT

SAARC being an association of seven nations in a diverse sub-continent of Asia is passing through various structural adjustment programmes. At a time when conventional tools of economic analysis are failing to explain both interregional and international income differentials, economists have found, it appears, a "new trade theory" which links the trading performance of a nation, or an economic bloc, to differential infrastructure facilities across the region. Without proper trading infrastructures, no country, or economic bloc can succeed in the field in a world where regional belonging has become, even under new WTO, an instrument for creating competitive edge over other regional blocs. The same has happened in case of SAARC. In this paper, we have seen that relative positions in income and infrastructure of member countries of SAARC have remained the same for last 25 years. Interestingly, the bloc is dominated by no other country than India whose international presence is highly insignificant. Remaining members have insignificant contribution as well. We have also seen that high disparities in income and infrastructure facilities are prevailing among the member countries of SAARC. This may be a plausible reason for slow growth in this part of the world.