South Asia Trade and Human Development Report

Multilateral trade negotiations have largely been a story of unfulfilled promises for South Asian countries, says the report Human Development in South Asia 2009: Trade and Human Development, unveiled in October 2010 by the Islamabad-based Mahbub ul Haq Human Development Centre.

The report says that the welfare gains promised under the Uruguay Round of negotiations leading to the establishment of the World Trade Organization (WTO) to some key sectors that were of primary importance to the poor remain unrealized. It argues that South Asian countries have been unable to derive benefit from the implementation of WTO agreements for their farmers, small and medium enterprises and large surplus of unskilled and semi-skilled labour. While trade liberalization in South Asian countries has opened up employment opportunities for women, the terms and conditions of women’s participation leave much to be desired, the report says.

It argues that agricultural liberalization has been particularly harmful for most of the poor in South Asia, because the policies and practices of developed-country governments and multilateral trading institutions have not been sensitive to the needs and concerns of the developing countries’ poor.

Manufacturing has also suffered. The post-WTO era has seen the deterioration of net manufacturing exports of all South Asian countries, except Bangladesh, with growth rates of manufactured imports exceeding that of exports, the report says.

Developed countries continue to push developing countries to open up sectors such as finance and even to liberalize public services such as water provision but do not reciprocate with a relaxation of the rules that govern the migration of people.

The report emphasizes the need to boost intra-regional trade in South Asia to overcome the obstacles in international trade rules. It concludes that integration with the world economy will only benefit South Asia if its policymakers design strategic and forward-looking policies, undertake liberalization based on an analysis of sectoral competencies, and invest in institutions, infrastructure and human resource development (Adapted from www.mhhdc.org).