Regional economic co-operation in South Asia

The academicians and policy makers in the ESCAP region, after taking note of the re levant experience of the vari regions, both developed and developing, have also started exploring in recent years the possi bilities of forming a regional or sub-regional economic group in order to bridge the yawning gap between the developed market economies and the region, and achieve a satisfactory rate of growth. They have come to be lieve, which is quite in evidence of the various resolutions passed at the various ministerial conferences and seminars on economic co operation, that the formation of customs union or a free trade area would gradually contribute strongly in the expansion of intra regional trade and diversification of their traditional economic and trade structure.

The present study is an attempt determine the essentials of to economic integration, examine the prospects and problems of forming a customs union or a free trade area in the light of the existing economic, trade and tariff struc tures of the South Asia region and suggest a pragmatic form of economic integration scheme res ponsive to the peculiarities, needs and aspirations of the countries of the region.