Less rhetoric; more political will.
For the past decade, South Asia has been one of the fastest-growing regions in the world. Yet, the Subcontinent remains one of the world´s poorest, with about 40 percent of its population living below the poverty line.
The acceleration of economic growth in the past 10 years is attributable primarily to sweeping reforms in economic policies. After decades of inward-looking policies, South Asian countries began reducing tariffs, removing trade barriers, and dismantling restriction on domestic and foreign private investment. This has helped stimulate growth, raise per capita income and reduce poverty.
Ever since its founding in 1985, SAARC has failed to achieve palpable results, especially in issues relating to regional trade and investment. As regards the preferential arrangement for SAARC trade, SAPTA came into force in late 1995 with the intention to substantially increase intra-regional trade. Three rounds of negotiation under SAPTA have listed almost 5400 items for trade but lack of political will, understanding of inherent benefits in larger trade, and historical enmities among major partners, are proving impediments to intra-regional trade.