| south asian |
Posted
on 08-Aug-02 12:34 AM
SAARCFINANCE for closer economic ties
Himalayan News Service
Kathmandu, August 7
Seven founding members of SAARCFINANCE participated in a second meeting of SAARCFINANCE coordinators and directors of research here on Wednesday.
“SAARCFINANCE is of critical importance for achieving closer economic integration in this region which is also the major target set forth in the report of the SAARC Group of Eminent Persons,” said Dr Tilak Rawal, governor of Nepal Rastra Bank.
There have been milestones that have been achieved such as operation of South Asia Preferential Trade Arrangement and ongoing discussion for moving towards South Asia Free Trade, following a South Asian Economic Union reaffirmed in 11th SAARC declaration in Kathmandu earlier this year.
“However, for obtaining optimal level of economic integration, focus can not simply remain on the real sector, since it would be analogous to a bird trying to achieve flight with one wing,” said Rawal. “There is also a critical necessity for greater financial cooperation and coordination to streghtehn the present level of regional financial integration.”
“Well-defined and transparent banking systems are required to prepare for economic developments and it is essential, nay critical, that the countries in the region identify a coherent system on the basis of which monetary policies can compliment each other,” said Q A M A Rahim, SAARC secretary-general.
“Not only should such policies lead to safety nets and nearly warning systems to evade sort of crisis that engulfed the East Asian economics but also to a better coordination for promotion of consumer and investor confidence and generation of growth,” added Rahim.
SAARCFINANCE came into existence pursuing the call for establishment of a body comprising Central Banks, Finance Ministries, Research Institutes and others by the 10th summit in Colombo. Recognising importance of critically evaluating changes in global economic and financial sector, 22nd session of SAARC Council of Ministers held in Kathmandu in January this year decided to accord recognition to SAARCFINANCE as a formal SAARC body.
The council also decided that the chairman of SAARCFINANCE make a presentation on activities of SAARCFINANCE at each session of the Council of Ministers. Dr Rawal would be reporting their progress to the SAARC Ministerial Conference to be held in Kathmandu.
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