South Asia Regional Integration and trade agreements on Economic Security

Abstract

South Asia has almost one half of the world’s poor even though it has only 20% of the world’s population and South Asia has always provided highly contrasting economic images. It is a land of fabulous wealth and of extreme poverty. It is poorest, the most illiterate, the most malnourished, and the least gender sensitive indeed the most deprived region of the world. Poverty is a problem in South Asia due to the population strain on limited land and other resources and weak economic development caused by faulty government policies and corruption. One of the poorest integrated regions in the world due to political instability. Regional integration is a process in which states enter into a regional agreement in order to enhance regional cooperation through regional institutions and rules. The objectives of the agreement could range from economic to political. Multilateral agreements which are signed for economic purpose named as trade agreements. Regional trade agreements cover more than half of the international trade and operate alongside global multilateral agreements under the World Trade Organization. It strengthened multilateral framework, particularly when regionalism leads to a patchwork effect between members and non-members within the concerned region, and thereby raise transaction costs for business. A trade agreements or trade pact is a wide ranging tax, tariff and trade treaty that often includes investment guarantees .The most common trade agreements named as preferential and free trade which are concluded in order to reduce tariffs, quotes and other trade restrictions on items traded between signatories. South Asia Free Trade Agreement improve the economic stability within the region.The SAARC cooperation is the foundation for free trade frame work within South Asia countries. The cost of trading across borders in South Asia in one of the highest in the world. Trade agreements are helped to maintain economic security in the region. Economic security is the condition of having stable income or other resources to support a standard of living now and in the foreseeable future. Especially it covers job security of citizens. Strategic management techniques and professionals are required to take decisions in upper management. The lack of intellectual property management can be seen in the region compared to developed regions. Also economic security, in the context of politics and international relations, is the ability of a nation-state to follow its choice of policies to develop the national economy in the manner desired. Economic security today forms, arguably, as important a part of national security.