Dr Dushni Weerakoon: IPS’ Research on Regional Integration Consistently Shows that Trade Related Issues Have Held Back Regional Economic Linkages in South Asia

IPS Executive Director Dr Dushni Weerakoon noted that the IPS’ research on regional integration has consistently shown that low trade complementarities, high relative tariffs and persistent non-tariff barriers have held back regional economic linkages in the South Asian region.

Regional efforts to fast-track integration through trade pacts have suffered from political and policy instability, prompting countries like Sri Lanka to opt for a bilateral route with fast growing economies such as India.

Dr Weerakoon further noted that the current global trade disruptions provide another impetus for the smaller South Asian economies to renew efforts to develop backward and forward linkages with the expanding Indian economy, by unilaterally addressing constraints holding back opportunities for greater trade and FDI flows.

She made these observations at the South Asia Subregional Economic Cooperation (SASEC) Knowledge Event “Unleashing South Asia’s Potential through Greater Connectivity” convened at the 58th Annual Meeting of the Asian Development Bank (ADB) in Milan, Italy from 4-7 May.

This panel discussion focused on how improved connectivity would help boost integration and growth in South Asia, and several experts from the region shared their insights on policy frameworks, successful initiatives, lessons learned, and emerging priorities to foster greater regional integration in South Asia.