No objection to observers' role in SAARC Fund
Apr 5, 2007 - 4:16:29 PM
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Speaking at the plenary session of the summit, Chinese Foreign Minister Li Zhaoxing put forth a comprehensive five-point plan for enhanced engagement with SAARC that included establishing mechanisms for poverty alleviation and disaster relief.
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By Manish Chand, IANS,
[RxPG] New Delhi, April 5 - Observer countries at SAARC are set to enhance their clout in the region with South Asian leaders having no objection to their contribution to a development fund.
'SAARC has no problem in accepting contributions from observers. But so far no observer has come out with an offer to contribute to the fund,' a senior Indian official, who did not wish to be named, told IANS a day after the two-day SAARC summit ended here.
'Why should we worry about it? Observers are welcome to contribute,' the official said when asked whether India was worried about China using its financial muscle for a greater clout in the region.
But behind this official bravado is a lurking anxiety that China may use its money power to entrench its influence in the region - a scenario that envisages competition with India in the region, which has tended to regard South Asia as its natural sphere of influence.
'India has to gear up for more intense competition with China. China would flag its money power. Moreover, it has already invested in Pakistan, Sri Lanka, Bangladesh and Nepal,' S.D. Muni, a South Asia expert, told IANS.
SAARC leaders discussed the role of observers - the US, the EU, China, Japan and South Korea - who participated for the first time at the 14th SAARC summit and their possible financial contributions to the SAARC fund.
They decided to operationalize the fund with $300 million that has already been collected with India alone contributing $100 million.
The SAARC fund, which will focus on implementing key intra-regional collaborative projects like poverty alleviation programmes, would require huge financial commitment. This explains why SAARC leaders agreed that the resources for SDF would be mobilised both from within and outside the region.
The joint declaration, while welcoming Iran's plea to be associated with the SAARC as the sixth observer, is quite upbeat about the role of observers.
'The region would benefit from these external linkages and help its economic integration with the international community,' said the declaration at the end of the summit.
Speaking at the plenary session of the summit, Chinese Foreign Minister Li Zhaoxing put forth a comprehensive five-point plan for enhanced engagement with SAARC that included establishing mechanisms for poverty alleviation and disaster relief.
It's not China alone that is eyeing increased influence in South Asia. Japan is equally enthusiastic and has contributed an additional $7 million to the 'SAARC-Japan Special Fund' for promoting social and cultural exchanges.
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