🔍 The South Asian Paradox: Economic Potential vs. Political Realities
South Asia, home to nearly 25% of the world’s population, contributes only a fraction to global GDP—and even less to regional trade.
Despite the enormous potential, intra-regional trade under SAFTA (South Asian Free Trade Agreement) remains stuck at just 5–7%, compared to:
45% in the EU
25% in ASEAN
22% in NAFTA
A recent academic piece from South Asian University advocates for greater regional integration. But the reality is far more complex.
⚠️ Why Integration Fails:
Trust Deficit: From Pakistan's long-standing antagonism to Bangladesh and Nepal's recent policy shifts, trust remains elusive.
Political Sabotage: Bhutan pulled out of BBIN, and Afghanistan's instability continues to derail connectivity efforts.
Security Concerns: The persistence of terrorism, political extremism, and cross-border hostility makes trade and cooperation untenable.
💡 Data Worth Noting:
SARC trade is valued at just $23 billion, despite estimates that it could touch $172 billion.
Only 14% of South Asia's trade potential is tapped — 86% remains unrealized.
India, with a $4 trillion economy, disproportionately carries the region’s economic weight.
The path to integration isn’t blocked by economic logic — it's blocked by geopolitics.
Until the politics of fear is replaced by the economics of trust, South Asian integration will remain an idea, not a reality.
#SouthAsia #RegionalIntegration #SAARC #IndiaPakistan #TradePolicy #Geopolitics #EconomicDiplomacy #NeighbourhoodFirst #GS2 #InternationalRelations
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