Keeping progress at arm's length

A quarter of a century after the establishment of the South Asian Association for Regional Cooperation (Saarc) in 1983 in Dhaka, leaders of the eight South Asian countries are still in a handshake mode. They have made little progress on reducing obstacles that are hampering economic growth, including eliminating non-tariff barriers, and reducing travel restrictions to allow more people-to-people contacts.

Saarc, which embraces nearly a fifth of mankind, also has the highest concentration of poor people - many of whom live on less than $1 per day.

The stakes couldn't be higher, especially at a time when global economies are merging to create greater economic blocs to compete in the global economy.

Saarc leaders should focus on unleashing the hidden potentials of the region's vast population by empowering them with the necessary tools and eliminating obstacles. Attaining these objectives largely depends on peace between India and Pakistan, the two nuclear-powered neighbours, who have fought three wars between them. Both are currently pushing for a peace deal, which could help accelerate economic cooperation.

The region is expected to create the South Asian Free Trade Area and eventually enter into a common market, but this looks far from the reality. While the handshakes in Colombo look good, they aren't good enough.