Regional economic cooperation refers to the coordination and integration of economic policies, trade, and investment among countries within a particular geographic region. It can take the form of free trade agreements, customs unions, common markets, and economic and monetary unions.
There are several regional economic cooperation initiatives across the world, such as the European Union, ASEAN, NAFTA, SAARC, and the African Union. These initiatives aim to promote economic growth, increase trade, reduce trade barriers, and improve economic integration among member countries.
In the Indian context, the most significant regional economic cooperation initiative is the South Asian Association for Regional Cooperation (SAARC). SAARC was established in 1985 and comprises eight member countries, including Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. The main objective of SAARC is to promote economic cooperation and integration among its member countries.
However, the progress of regional economic cooperation in South Asia has been slow due to political differences, lack of economic convergence, and non-tariff barriers to trade. There have been efforts to enhance economic cooperation among member countries through initiatives such as the South Asian Free Trade Area (SAFTA), but progress has been limited.
Apart from SAARC, India is also a member of other regional economic cooperation initiatives such as the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), the Indian Ocean Rim Association (IORA), and the Asia-Pacific Economic Cooperation (APEC).
Regional economic cooperation can have significant benefits for member countries, such as increased trade, job creation, and economic growth. It can also lead to the sharing of resources and expertise, as well as the harmonization of policies and regulations. However, it is important to address the challenges that come with regional economic cooperation, such as ensuring equitable distribution of benefits among member countries and addressing the potential for trade diversion.