South Asian Association for Regional Cooperation

Overview

Regional cooperation in South Asia under the framework of SAARC gained further momentum during the year 1998. The Tenth SAARC Summit in Colombo in July 1998 reaffirmed the desire of all SAARC leaders to strengthen cooperation in the region, particularly in the economic field.

India took some bold initiatives to speed up trade liberalisation in the region with the lifting of Quantitative Restrictions for SAARC countries with effect from 1 August, 1998. Cooperation in the core economic areas was further consolidated with the conclusion of the Third Round of SAPTA negotiations in November 1998. SAARC leaders also agreed that there should be a separate Treaty for a South Asia Free Trade Area (SAFTA) and negotiations on this Treaty are to commence in early 1999.

New initiatives were taken to develop cooperation in the field of Information and the Media and in Telecommunications with the first meetings of the Ministers of Information and Telecommunications.

The gains of the past were assessed and a perspective plan for SAARC for the next two decades was provided by the Group of Eminent Persons constituted by SAARC leaders in 1997. Their Report presented at the Colombo Summit in July 1998 sets out a substantial agenda for economic integration in three phases and for cooperation in the social sectors upto the year 2020.

The range of SAARC cooperation is evident from the sixty meetings and activities that took place at various levels during the year starting from the Summit down to the Ministerial, official and technical levels. Highlights of the activities are as follows:

Ministerial and Other Meetings

The First SAARC Information Ministers Meeting, Dhaka, Bangladesh (24-25 April, 1998)

The Meeting adopted the Dhaka Communiqué containing a SAARC Plan of Action for developing cooperation in the field of Media and Information. This provides, inter-alia, for free flow of information, newspapers, periodicals, books and other publications, increased cooperation amongst news agencies of SAARC countries; holding of annual conferences of Editors and Journalists, evolution of a SAARC Media Forum and discouraging negative projection of member countries.

The Second SAARC Commerce Ministers’ Meeting, Islamabad, Pakistan (29-30 April, 1998)

The Commerce Ministers discussed ways to accelerate the ongoing Third Round of SAARC Preferential Trade Negotiations and stressed the need to deepen tariff cuts accompanied by removal of Non-Tariff Barriers on major items of intra-SAARC trade, as well as product coverage. It stressed the need for early finalisation of the Draft Agreement on Promotion and Protection of Investment in the Region, conclusion of Double Taxation Avoidance Agreements between the SAARC Countries, and for expanding intra-SAARC investment cooperation and joint ventures. The meeting also reviewed the progress of the group on transition from SAPTA towards SAFTA. The Commerce Ministers agreed to coordinate SAARC positions at the WTO and authorised the constitution of a Group of SAARC Ambassadors to the WTO at Geneva.

The First SAARC Communication Ministers’ Meeting on 22-24 May, 1998 at Colombo, Sri Lanka

A SAARC Plan of Action was finalised which, inter-alia, calls for reduction of telecom tariffs to the lowest extent feasible, complete digitalisation of inter-country links amongst SAARC countries preferably by December 1999, allocation of sufficient band width for regional telecommunication links, setting up of Web Sites/data bases to exchange information on telecom standards, policies and technologies, adoption of Mutual Recognition Arrangements for equipment standards, and consultations to evolve common SAARC positions on Telecommunication issues of regional concern at international fora.

SAARC UGC Representatives’ Meeting

The Representatives of University Grants Commissions of SAARC Countries met in New Delhi from 14-16 May, 1998 to consider ways of enhancing cooperation amongst universities in SAARC countries. Extensive deliberations were held and recommendations inter alia, to recognise university degrees mutually, increasing the number of scholarships, review of the SAARC Chairs, etc were made at the Meeting.

South Asian Development Fund

The Third Meeting of the Governing Board of the South Asian Development Fund was held at Pokhara, Nepal on 4-6 June, 1998. The Board finalised the draft operational modalities for the Window II and considered the modalities for Window III. It also reviewed the progress of Project Studies underway under Window I and recommended sponsorship of projects for which detailed studies had been carried. It also set up a Technical Committee to review the draft Accounting Manual and a proposal to set up a permanent Secretariat of the SADF. India offered to host an Executive Development Programme for the Development Financial Institutions of SAARC Countries in 1999.

Regional Convention to Combat Trafficking in Women and Children for Prostiution

An Expert Group Meeting on drafting a Regional Convention to Combat Trafficking in Women and Chldren for Prostitution was held in New Delhi (18-19 June, 1998). Negotiations lasting over two days resulted in a draft Convention. The salient points of the draft include severe punishment for trafficking under national laws, provisions for extradition or prosecution of offenders and mutual legal assistance. It also provides for positive measures to prevent trafficking, as well as for providing temporary care and for repatriation of the victims of trafficking.

Technical Commitee on Education, Culture and Sports

The Fifth Technical Committee Meeting of SAARC on Education, Culture and Sports was held in Thimpu, Bhutan on May 26-27, 1998. Review of the activities under the SAARC Technical Committee during the past year like preparation of a SAARC Anthology, SAARC Audio-Visual Exchange (SAVE) Programme, Literacy programmes, Coaching Camps for Sports, etc. took place in the Meeting.

Technical Committee on Women in Development

The Thirteenth Technical Committee Meeting on Women in Development was held in Kathmandu, on June 28-30, 1998. The consideration of the Regional Convention on Combating Trafficking of Women and Children for Prostitution was the major item. India offered to hold a "Workshop on Implementation of the Dhaka Resolution on Women".

Tenth SAARC Summit

The Tenth SAARC Summit was held in Colombo, 29-31 July, 1998, to coincide with its 50th Independence Anniversary Celebrations. It was preceded by the 20th Session of the Programming Committee, the 25th Session of the Standing Committee, and the 20th Session of the Council of Ministers, and the Seventh Meeting of the Food Security Reserve Board. At the conclusion of their deliberations, the Heads of State or Government issued the Colombo Declaration. The Indian delegation was led by Prime Minister Shri Atal Behari Vajpayee. He was accompanied by the Commerce Minister, the Deputy Chairman Planning Commission as well as the Minister of State for External Affairs, who headed the Indian delegation for the Meeting of the SAARC Council of Ministers immediately preceding the Summit. The Summit took some significant decisions to advance cooperation in the core economic areas of trade and investment. A Group of Experts from all seven SAARC Countries will be set up to commence negotiations on an Agreement or Treaty for a South Asian Free Trade Area. This Agreement will spell out binding schedules for freeing trade and is expected to be finalised and put in place by 2001. This would provide a predictable and transparent blue-print for achieving a Free Trade Area in South Asia. The Agreement will also include special facilitative measures for the Least Developed Countries. Negotiations for deepening and widening trade preferences under the South Asian Preferential Trading Arrangement will continue in parallel. SAARC leaders at their meeting in Colombo directed that the Third Round of SAPTA negotiations should be concluded quickly and also directed that the Fourth Round of SAPTA negotiations should commence immediately thereafter, with the mandate of extending deeper tariff concessions to products which are being actively traded or are likely to be traded. Discriminatory trade practices and non-tariff barriers are to be simultaneously removed on items in respect of which tariff concessions are granted. This would ensure that we continue to liberalise trade, even as the negotiations for a SAFTA Agreement are underway.

India took some bold initiatives to enhance access to its market. The Prime Minister announced that India would lift Quantitative Restrictions for SAARC countries with effect from August 1, 1998. This involves putting over 2000 products on Open General License for SAARC countries and has been widely welcomed. The Prime Minister also announced that the ceiling for Overseas Indian investment in SAARC countries under fast track procedures would be increased from $ 8 million to $ 15 million. This was appreciated as an indication of India's commitment to encourage a greater flow of Indian investment in its immediate neighbourhood.

India also offered to consider bilateral free trade arrangements with those countries who are interested in moving faster. This is expected to reinforce regional trade liberalisation and impart added momentum to the process. Sri Lanka has taken up this offer.

Significant decisions were also taken to strengthen cooperation in the social sectors. SAARC leaders agreed in Colombo to draw up a Social Charter for SAARC setting out regional goals in the important areas of population stabilisation, education, health, nutrition, child welfare and women’s development. Particular focus has been placed on the persistent problem of poverty in the region and the leaders of SAARC countries have committed themselves to the eradication of poverty in South Asia preferably by the year 2002. A three-tier institutional structure to evolve cooperation in this field has been set up. These three tiers comprise: A Group of Secretaries to Governments dealing with Poverty Eradication and Social Development; the Group of Finance/Planning Secretaries; and SAARC Finance/Planning Ministers. This mechanism is a forum for exchange of information on poverty eradication programmes, strategies and technologies. The impact of structural adjustment programmes and economic liberalisation on weaker sections of society has been kept in focus through the involvement of Finance/Planning Ministers at the highest level.

The text of the Regional Convention to Combat Illegal Trafficking in Women and Children for Prostitution was finalised. SAARC leaders agreed that the scope of the Convention could be expanded in time to cover trafficking for other purposes. The Convention is expected to be signed at the next SAARC Summit in Kathmandu. A separate Convention on Child Welfare is also under discussion.

A new initiative has been taken to develop cooperation in the field of Distance Education. A SAARC Forum of Vice Chancellors of Open Universities will be established to develop cooperation in areas such as the sharing and joint development of programmes, credit transfers for specific programmes and the translation of existing programmes.

The Summit stressed the importance of developing a regional self-reliant capability for South Asia in scientific research and development. India will host a special meeting of SAARC Science & Technology Ministers to consider a SAARC Technology Initiative to identify and implement specific regional projects in rural areas which would have a direct impact in improving the day-to-day life of people. SAARC leaders also emphasised the need to institutionalise SAARC cooperation in the field of bio-technology and have directed that cost-effective arrangements for such cooperation should be evolved.

The Summit has also taken the initiative to develop cooperation in the field of traditional systems of medicine in which the SAARC region has a rich heritage. India will host the First Health Ministers’ Conference in 1999 which would help in evolving proposals for cooperation in this field.

The Report of the Group of Eminent Persons (GEP) was presented at the Tenth SAARC Summit. The Report contains important recommendations for strengthening cooperation in the economic and social field and for restructuring the Integrated Programme of Action. The SAARC leaders directed that the Report and recommendations of the GEP should be examined in depth by the SAARC Council of Ministers at their next session.

Post-Summit Meetings

SAARC Group on Customs Cooperation

The Third Meeting of the SAARC Group on Customs Cooperation was held at Jaipur from August 24-26, 1998. Several issues including exchange of information about positions to be taken at the WCO and the WTO on Harmonisation of Rules of Origin, revisions required to be incorporated in the new version of the Harmonised System of classification, Standardisation of Forms for Customs Declaration, Draft Agreement on Mutual Administrative Assistance for application of Customs Laws were discussed at the Meeting. The Meeting agreed on coordination amongst SAARC Customs Authorities for providing inputs for the Harmonised Rules of Origin and adoption of Common Formats for import/export declarations.

Conference on Multi-lingual and Multi-media Information Technology

A SAARC Conference on Multi-lingual and Multi-media Information Technology was held from 1-4 September, 1998 at Pune, India. Various facets of Information Technology relevant to the SAARC countries were analysed and recommendations made for the spread of Information Technology in the region.

Technical Committee on Rural Development

The Meeting of the Technical Committee on Rural Development took place in Colombo from 24-25 September, 1998 and agreed to the Indian proposal for establishing a Network of Experts in Rural Development including housing, water, sanitation. India will host a Seminar on Rural Poverty Alleviation early next year under the Technical Committee.

Informal Meeting Of SAARC Foreign Ministers at UNGA

The Informal Meeting of SAARC Foreign Ministers on 28 September, 1998 on the margins of the UNGA focussed on follow-up of the decisions taken at the Tenth SAARC Summit in Colombo in July 1998. It was agreed that the Third Round of SAPTA negotiations should be completed quickly. It was also agreed that the meeting of the Committee of Participants to consider the proposals for a downward revision of the national content requirements of the SAPTA Rules of Origin should be held immediately following the SAPTA-III talks in Kathmandu. Both these meetings have since been held.

An important decision taken by the Foreign Ministers was to consider joint SAARC initiatives, where possible, on issues before the UNGA. It was agreed that the Permanent Representatives to the UN be mandated to consult regularly to evolve common positions and common strategies.

The Ministers discussed the time-schedule of the various Ministerial meetings and stressed the need for proper sequencing and preparation. It was agreed that Ministerial Meetings should be preceded by preparatory official meetings. A detailed concept paper outlining the objectives sought to be achieved should also be circulated before the Meeting.

Meeting of Finance Secretaries and Governors of Central Banks

The SAARC Finance Secretaries and Governors of Central Banks met for the first time at the margins of the Annual Meeting of the IMF – World Bank in Washington on October 5, 1998. They decided to establish a network called "SAARC Finance" for exchange of information on developments in the region, specially related to exchange of Status Papers on Payment Systems in their respective countries, so that quicker settlement could be effected in respect of cross-border Trade flows. India is to prepare a monograph on this. Two issues viz. (a) Supervision of banking and non-banking financial entities and (b) Coordination between fiscal and monetary policies – were identified to be discussed in-depth at a meeting of officials of Central Banks. India proposed to host the meeting in Mumbai.

Technical Committee on Environment and Meteorology

The Third Technical Committee Meeting on Environment and Meteorology was held in Kathmandu from 14-16 October. A format for the State of the Environment Report was prepared. It was also agreed to convene an Expert Group Meeting for Exchange of Information on Environmental Standards. India offered to host, during the next year, a workshop on Sharing Information on Disaster Preparedness and Mitigation and two Expert Group Meetings (i) to draft an understanding on Transboundary Movement of Hazardous Wastes in the SAARC region and (ii) Expert Group Meeting for the proposed establishment of a Networking Mechanism to assist member countries for protection and preservation of the Environment.

SAARC LAW Conference

The Seventh SAARC LAW Conference was held in Colombo from 23 -25 October, 1998. The Chief Justice of India, Attorney General of India, Shri Ram Jethmalani, Urban Affairs Minister and a host of legal luminaries from India participated in the Conference.

Environment Ministers’ Meeting

The Fourth SAARC Environment Minister’s Meeting was held in Colombo from October 31 to November 1, 1998. A draft common SAARC position on Climate Change Issues on the eve of the Buenos Aires Meeting on Climate Change was adopted at the Meeting. The common SAARC position highlights the need for determination of equitable emission entitlements as well as transfer of new and additional financial resources and environmentally sound technologies on concessional terms to developing countries. It expresses concern at the attempt of some Annex-I Parties (Industrialized Countries) to link ratification of the Kyoto Protocol to the introduction of new commitments for non-Annex-I parties which will only delay the Protocol coming into force.

The SAARC Environment Ministers agreed to direct their focus on a single theme in each of their future meetings. They also agreed that Bio-Diversity should be the theme for the year 1999. The Government of India will host a Meeting on the trans-boundary movement of hazardous wastes and dumping of such wastes in the region by other countries. This Meeting would examine the implications of the coming into effect of the Basel Convention for the SAARC countries and also explore the possibility of harmonising policies and procedures with regard to hazardous wastes.

SAARC Audio Visual Exchange Programme (SAVE)

The seventeenth meeting of the SAARC Audio Visual Exchange Programme was held in New Delhi on 17-18 November, 1998. 14 Radio and 11 TV Programmes, were selected by its Screening Committee. These Programmes will be broadcast/telecast simultaneously in all SAARC countries. The Meeting also deliberated on various means to increase the SAARC profile in the Region. India offered to host a training programme on "On line Editing" for TV technicians from the Region.

Third Round of SAPTA

The Third Round of Preferential Trade Negotiations under SAPTA concluded on 23 November, 1998 in Kathmandu. A total of 3456 tariff lines were covered under concessional tariffs. India offered more than half the concessions. The cumulative total concessions offered countrywise were : India : 1917, Bangladesh: 481; Pakistan : 295; Sri Lanka : 82; Nepal : 189; Bhutan : 124; Maldives : 368.

The Third Meeting of Committee of Participants was held in Kathmandu on 24-25 November, 1998. A consensus to revise the Domestic Content Requirements under the SAPTA Rules of Origin downward by ten percent was reached at the Meeting. Goods traded under the SAPTA Agreement will be covered under the revised rules of origin after endorsement by the SAARC Council of Ministers.

SAARC Visa Exemption Scheme

An Expert Group Meeting on review and further expansion of the SAARC Visa Exemption Scheme was held in Kathmandu (November 25-26, 1998). This Scheme was initiated in 1988 with a view to promote closer and frequent contacts among the people of the SAARC region and became operational from March 1, 1992. The Meeting recommended addition of 20 categories of persons who could travel within the SAARC Countries without visas. The Meeting also suggested various measures to improve the Scheme and make it more transparent and acceptable in all SAARC countries.

Draft Convention on Regional Arrangements on the Promotion of Child Welfare in South Asia

The decade 2001-2010 has been designated the "SAARC Decade of the Rights of the Child". An Expert Group Meeting to consider a draft Convention on the Promotion of Child Welfare was held in Male, Maldives from December 9-10, 1998. This will be further discussed by the Technical Committee on Health, Population and Child Welfare.

The Eighth meeting of the Governing Board of the SAARC Tuberculosis Centre took place on 6-7 January, 1999 in Kathmandu, Nepal. Inter alia, the Governing Board decided on organising a SAARC-CIDA workshop on Control of TB and HIV cases in the Region, setting up of a lab- testing facility at the Centre, SAARC Training Programmes and a Multicentric Study on Primary Drug Resistance.

A two Weeks Executive Development Programme for Middle Level Officers of Nodal Development Financial Institutions was held at the Jawaharlal Nehru Institute for Development Banking, Hyderabad from January 11-23, 1999.

The First Meeting of Vice Chancellors of Open Universities in SAARC countries was held from January 25 to 27 in Colombo, Sri Lanka. The Meeting discussed issues of regional cooperation in the areas of Sharing of Resources including course module and personnel currently available from respective institutions, joint development of programmes/courses, evolving mechanisms for credit transfer, accumulation and accreditation and sharing information technology. A Task Force of three members (Sri Lanka, India and Maldives) was constituted to work out details of a Policy Formulation Body, an Academic Body, an Accreditation Body as well as drawing up of relevant protocols and identifying sources of funding.

The Thirteenth Technical Committee Meeting on Prevention of Drug Trafficking and Drug Abuse took place at Male, Maldives from 27-28 January, 1999. The discussions covered the issue of making the SAARC Drug Offences Monitoring Desk (SDOMD) in Colombo more effective. Other issues included control of drugs and precursor chemicals and rehabilitation of drug addicts.

A Seminar on Supervision of Banks and other Financial Entities in the SAARC Region was held in Pune from January 27-30, 1999. Soundness of the financial system as an essential prerequisite for successful pursuit of macroeconomic, policies, importance of supervision by Central Banks, etc. was discussed in the Seminar.

The Sixth Governing Board Meeting of the SAARC Documentation Centre was held on February 5-6, 1999, in New Delhi. It has been decided to launch a SAARC website which will provide information on all activities that have been held under the aegis of SAARC including reports, recommendations and studies for regional cooperation. In addition, training of documentation officials in SAARC countries, development of several value added databases like scientific research institutes in the region, alternate/traditional forms of medical systems, periodicals and books published yearly, etc. will be undertaken by the SDC during the current year.

The Third SAARC Commerce Ministers’ Meeting (February 2-3, 1999), preceded by the Tenth Meeting of the Committee on Economic Cooperation at the Commerce Secretary level (January 30-February 1, 1999), took place in Dhaka, Bangladesh. The Meeting decided that two preparatory Meetings should be held for coordination of SAARC positions at the forthcoming WTO Ministerial Meeting in the USA in November 1999. India offered to host the first of these two preparatory meetings. The Commerce Ministers approved the outcome of the Third Round of SAPTA negotiations and called for issuing notifications, giving effect to the Round, not later than October 1, 1999. They also decided that the Fourth Round of SAPTA negotiations should commence by the first half of August, 1999. The First Meeting of the Expert Group to commence drafting the SAFTA Treaty would also be held immediately thereafter. The Meeting approved the revision of the SAPTA Rules of Origin reducing the domestic/regional content requirement by 10 percent. The Meeting also decided to make a formal request to the European Commission to recognise SAARC as an association for according cumulative Rules of Origin for GSP Treatment.

The Seventeenth Meeting of the Technical Committee on Agriculture was held in New Delhi from February 15-17, 1999. A Draft Regional Perspective of the Status of Agriculture ill SAARC Countries was prepared by India and was adopted at the Meeting. A detailed analysis of the position of Horticulture in the SAARC Region was discussed and a compendium of the deliberations will be prepared. India has proposed to organise a Training-cum-Demonstration Programme on Watershed Management Approach for minimising soil degradation. Two workshops on Nut Cropping and Soil Fertility Management for Increased Productivity in Rice based Cropping Systems will be held in the course of the year under this Technical Committee.

The following important meetings are likely to take place during the remaining part of the current year:

(i) Sixteenth Meeting of the Technical Committee on Science and Technology from February 24-26, 1999 in New Delhi.

(ii) Programming and Standing Committees and the Council of Ministers Meetings in mid March 1999 in Colombo, Sri Lanka.

Review of SAARC Functioning

Two review Reports on the functioning of SAARC were prepared during the year.

The first was the Report of the Independent Group of Experts on the functioning of the Integrated Programme of Action (IPA)- with its eleven technical committees comprising Agriculture, Communications, Education, Culture & Sports, Environment & Meteorology, Health & Population activities, Prevention of Drug Trafficking & Abuse, Rural Development, Science & Technology, Tourism, Transport and Women’s Development. The Report has suggested a moderate restructuring of the IPA with reduction of the number of Technical Committees to seven by amalgamation of several Committees, and the setting up of a new Committee on Energy.

The other, far reaching Report was by the Group of Eminent Persons constituted by the last Summit in Male (12-14 May, 1997). The mandate of the Group was to undertake a comprehensive appraisal of SAARC and identify measures, including mechanisms to further vitalise and enhance the effectiveness of the Association and develop a long range vision and formulate a Perspective Plan of Action, including a SAARC Agenda for 2000 and Beyond, which will spell out the targets that can and must be achieved by the year 2020. The Group submitted its Report to the Tenth SAARC Summit in Colombo in July 1998.

The GEP has identified the following focus areas:

Economic Agenda

On the economic side, the GEP has recommended a substantive agenda for achieving economic integration in three phases:

(i) Negotiation of a Treaty for a South Asian Free Trade Area (SAFTA) by 1999 with implementation commencing in 2000. Achievement of SAFTA by 2008, stretching to 2010 for the Least Developed Countries;

(ii) Achievement of a SAARC Customs Union with harmonisation of external tariffs by 2015; and

(iii) Achievement of SAARC Economic Union with harmonisation of monetary and fiscal policies by 2020.

The GEP has also recommended substantial concessions for the Least Developed Countries including a longer time period for freeing trade.

Other proposals in the economic field include:

• Finalisation of a Regional Investment Agreement and setting up a SAARC Investment Area before the commencement of SAFTA implementation;
• Harmonisation and simplification of Customs Procedures and upgradation of Customs Infrastructure;
• Harmonisation and conformance of Standards, Quality and Measurement;
• Development of Transportation Infrastructure and Transit Facilities;
• Social Agenda.

In the Social field, the GEP has recommended:

• Commitment to the Target of reaching a replacement level of poulation which translates into a birth rate of 21 per thousand before the year 2020;
• Attainment of universal primary education upto the age of 15 before the year 2010. Elimination of gender disparities in access to education within the target date of 2010;
• Setting aside 6% of GDP for education by the year 2010;
• Reduction of infant mortality below 50 per thousand live births by the year 2005. Attainment of 100% immunisation by the year 2000 in target areas set by the UNICEF programmes;
• Empowerment of women socially, economically and politically;
• Holding of regular biennial Ministerial meetings on Women’s Development;
• Each member-State to set its own time-frame for poverty eradication;
• Effective utilisation of the SAARC three-tier mechanism on Poverty Alleviation to facilitate sharing of experiences and formulation and implementation of regional policies;
• Regular meetings at political and technical levels on the Environment. Urgent follow-up on the SAARC Plan of Action on the Environment.

The two Reports will be an issue of special consideration at the next Council of Ministers Meeting and an extra day would be set aside at the next Meeting of the Standing Committee of Foreign Secretaries for their detailed consideration.

Subregional Cooperation Bangladesh-Bhutan-India-Nepal Growth Quadrangle (BBIN-GQ) Initiative

The Second meeting of Foreign Secretaries of the four countries met in Kathmandu on 17 July, 1998 and finalised Working Modalities for Sub Regional Cooperation. The Growth Quadrangle is to follow a project led approach to cooperation in the core economic sectors of Multimodal Transportation and Communication, Energy, Trade and Investment Facilitation and Promotion, Tourism, Optimal Utilization of Natural Resource Endowments and Environment. These projects would result in tangible benefits to the people in the sub-region in the form of poverty eradication, employment and income generation, social welfare and improvement in the quality of life. These projects will be supportive of and complimentary to national plans of the countries in the Growth Quadrangle, to fully utilize their talent and resources as well as mobilize the participation of the private sector in the implementation of projects and activities identified collectively. The projects will develop and make best use of neighborhood synergies and would be such that they can most productively be dealt with on a sub-regional basis. The resources and expertise within the sub-region will be given priority and used to the maximum extent possible with resort to international resources and agencies depending on the requirements of specific projects and availability of internal resources. A prioritized, practical, action-oriented, time-bound and incremental approach will be followed in selection, development and implementation of projects having immediate impact as well as large infrastructure projects with long gestation.

A three-phase plan of action involving conceptualization of specific projects in the first phase, preparation of feasibility studies and financial estimates in the second phase and implementation of projects and schemes as and when they are ready in the third phase has been agreed upon. The first phase is to last for one year, the second phase to take two years, and the third phase to take between 5-10 years.

Nepal will continue to coordinate the overall sub-regional cooperation efforts. Nepal will also coordinate projects in the area of Tourism and Multi-Modal Transportation and Communication. Projects in the area of Natural Resource Endowments and Energy will be coordinated by Bangladesh. Bhutan will coordinate projects relating to the Environment. India will coordinate projects in the area of Trade and Investment Promotion and Facilitation.