Modi now wants a SAARC bank

Discussion in 'Foreign Relations' started by Voldemort, Jul 24, 2014.

  1. Voldemort

    Voldemort Senior Member Senior Member

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    Now that leaders of the BRICS emerging market nations have launched a $100 billion development bank in their first concrete step toward reshaping the Western-dominated international financial system, India's prime minister Narendra Modi now reportedly wants a similar bank for SAARC nations—Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka— to-strengthen- trade relations and improve infrastructure within the-region.
    The proposed bank would provide low cost funding to -smaller countries -in South Asia who cannot access -funds from the likes of World Bank and IMF -because of tough riders.
    According to a report in theEconomic Times, India will propose a SAARC Development Bank at the regional grouping's ministerial council in Bhutan which begins on Thursday, which will provide the member countries with access to capital to finance infrastructure in order to provide an impetus to trade in goods, services and investment for development.
    Such banks are not only--game changers economically,but also cement political relationships.
    According toaFinancial Express-report, the bank will be used for ensuring better connectivity by building railway lines, roads, waterways, ports and customs stations to resolve all transit issues.
    While all -Saarc members -would be shareholders, the exact holdings are likely to -depend on equity contributions from each member.
    A-Hindu-BusinessLine-article-suggests that even though voting rights will be decided based on the equity contribution, funding will also be invited from third countries who would also get voting rights in proportion to their contribution, while multilateral agencies such as ADB and World Bank would also be asked to pitch in and join as observers.
    But whether -India will get a dominant role in the proposed entity given the large size of its economy and influence in the region, still remains to be seen.
    Modi's first gesture to reach out to SAARC nations was to invite its leaders for his swearing in ceremony on 26 May, following which he called-upon the space community to take up the challenge of developing a SAARC satellite that can be dedicated to our neighbourhood as a gift from India.
    As Firstpost said earlier,"SAARC region has got a fairly long coastline (12,000 kms) and real time scientific data are the need of the hour for preventing natural disasters. For centuries, the region has been ravaged by three major natural disasters: earthquakes, landslides and drought. A SAARC satellite will go a long way in addressing these needs."
    Meanwhile, theFinancial Express-suggests that -the commerce ministry is also putting a plan together to deepen trade and investment ties with the South Asian Association for Regional Cooperation countries. Apart from a South Asian Development Bank with an initial corpus of $5-10 billion, the plan includes a Saarc visa system similar to the European Union's Schengen visa to ensure that all citizens of the Saarc member countries can move freely in South Asia.www.google.co.in/gwt/x?gl=IN&source...i=otPQU47_JaHnmQXHwYHgCQ&wsc=tf&ct=pg1&whp=30
     
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  3. Compersion

    Compersion Senior Member Senior Member

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    good idea would also help with indo-pakistan trade relationship.
     
  4. guddun07

    guddun07 New Member

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    our own liitle bank thats nice.
     
  5. amoy

    amoy Senior Member Senior Member

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    Is it coincidental with Asia Infrastructure Investment Bank China initiates? Countries like Nepal have been invited to join bearing in mind China is also south Asian and ?an observer in SAARC?

    Sent from my 5910 using Tapatalk 2
     
  6. anupamsurey

    anupamsurey Regular Member

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    i can see Obama, fuming and scratching his head. after all this BRICS bank and SAARC bank are seen as a way to counter dominance of US on World trade and what not.
     
  7. abhi_the _gr8_maratha

    abhi_the _gr8_maratha Senior Member Senior Member

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    good as brics bank will be dominated by china.
     

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