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ASEAN and SAARCASEAN and SAARC

SupriyoSupriyo ChakrabortyChakraborty

RegReg no.no.--50445044

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Regional trade blocks are intergovernmentalassociations that manage and promote tradeactivities for specific regions of the world

They have political as well as political implicationsfor example the European union , the worldslargest trading block has harbored politicalambitions. The Maastricht treaty which gave birthto EU calls for joint policies in regard to military ,defense, and citizenship.

DefinitionDefinition

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1) EUROPEAN UNION (EU)2) NORTH AMERICAN FREE TRADE AGREEMENT(NAFTA)

3)SINGAPORE AMERICAN FREE TRADEAGREEMENT(SAFTA)4) ORGANISATION OF PETROLEUM EXPORTINGCOUNTRIES (OPEC)5) ASSOCIATION OF SOUTH EAST ASIAN NATION(ASEAN)6) SOUTH ASIAN ASSOCIATION OF REGIONAL CO-OPERATION (SAARC)

MAJOR TRADE BLOCKSMAJOR TRADE BLOCKS

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ASEANASEANEstablished in 1967 .5 founding members : indonesia , malayasia,phillipines, singapore and thiland.

Later on joined by brunei, myanmar,vietnam etc.Asean free trade area (afta ) .Asean beyond trade has political role as visible bythe formation of asean regional forum of whichchina, india and usa are members.

Asean as a trading blocK has been a huge successleading to prosperity and elimination of povertyin the member country

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AREAS OF COOPERATIONAREAS OF COOPERATION

Agriculture and Rural Development;Health and Population Activities;Women, Youth and Children;Environment and Forestry;Science and Technology and Meteorology;Human Resources Development; andTransport.Recently, high level Working Groups have also been

established to strengthen cooperation in the areas of Information and Communications Technology,Biotechnology, Intellectual Property Rights, Tourism,and Energy.

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SAARCSAARC Born in 198 5

7 members countries :bangladesh, bhutan,india,maldives,nepal,pakistan and sri lankaIt has 1 .3 billion inhabitantsRepresents 22% of the world population but only1 .9% of the world gnp.Saarc has been a sheer failure.The total external trade of the region 0. 8% of world exports and 1 .3% of world importsThe reason being political dispute betweenmember countries

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CONTD .CONTD .

Still some progress has been achieved

Sapta (south asian preferential trading

agreement ) has come into force in 199 5Consensus on safta(south asian free tradearea )has been reached

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ASEANASEAN

CambodiaIndonesia

LaosMalaysiaMyanmar

PhilippinesSingaporeThailandVietNam

Brunei Darussalam

SAARCSAARC

India

Sri lanka

Bangladesh

Nepal

Bhutan

Pakistan

Afghanistan

Maldives

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NOW

WHY ASEAN IS SUCCESSFUL AND SAARC HASBEEN UNSUCCESSFUL?

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o Asean is one of the major trading blocks in theworldo It represents 4 20 million people.o It's a larger trade block than north America

and western Europe.o Saarc represents 22% of humanity.o There is a contradiction, an irony between

asean & saarc.o While asean has been a roaring success &

called asian tigers ,saarc has been a sheerfailure.

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REASONS ..REASONS ..

In asean all countries are of equal geographic size.Level of economic development is the same in allcountries.Common fear of communist chinaAll of them had similar economic policies.THEY ALLINTRODUCED ECONOMIC LIBERALIZATION IN196 0sWHICH FURTHER ACCLERATED ECONOMIC GROWTH.Way of functioning of asean based on two principles:

1 .Musyaurarah(consensus ).2 .Mufakat(consulatations ).

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Indias TRADE WITH ASEAN IS MORE THAN20TIMES THAN IN CASE OF SAARC.In south Asia India is the largest country.Itoccupies more than 70% of geographical area.So other nations feel that strengthening saarcmeans empowering India.Serious bilateral disputes between two majorsouth asian powers i.e INDIA & PAKISTAN.

Bilateral disputes and differences between othermember countries.

India , Bangladesh dispute.India ,Nepal dispute.Nepal Myanmar dispute.Pakistan Bangladesh dispute

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Vast difference in economic development..India is a developed economy of south asia.Other countries are less developed.Purchasing power of these countries is very

low . They cannot act even as a market of Indian goods.

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