Nepal & Bhutan Brief (4/14)
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Nepal

SAARC Summit:-

1. The Nepalese media reports remained focused on the developments related to the preparations for and the holding of the 18th SAARC Summit in Kathmandu on Nov. 24-26, 2014. Reports suggested that the move to hold the Summit at an early date in Kathmandu, after a gap of 3 years, (Nepal was to host the meeting in 2012 but was postponed on account of the then prevailing political uncertainty) was mooted during the ‘mini-summit’ of leaders in New Delhi in end-May, when they all had congregated to participate at the swearing in ceremony of the newly elected Indian Prime Minister Narendra Modi. If true, it must be said to the credit of the Nepalese administration that within the limited time available, they managed to make seamless and near perfect arrangements to make the two-day conclave of eight top retinal leaders and a host of observers from other countries, a huge success.

2. The main event was preceded by the 36th meeting of the officials and the Foreign Ministers on Nov. 23-24 and Nov. 25 respectively. Indian delegation of 9 members was led by EAM Sushma Swaraj, Nepal’s Foreign Minister, Mahendra Bahadur Pandey led his country’s delegation of 17, Sri Lankan and Bangladesh Foreign Minister came with 9 member delegation each while Afghanistan and Bhutan FMs were accompanied by 4 member delegations each. Pak leader Sartaj Aziz was assisted by 7 officials. Their deliberations resulted in finalization of major agreements for regional cooperation namely (i) ‘SAARC Framework Agreement for Energy Cooperation (Electricity)', (ii) ‘Regulation of Passenger and Cargo Vehicular Traffic amongst SAARC Member States' and (iii) 'SAARC Regional Agreement on Railways’. Pakistan stalled, citing insufficient internal preparations, signing of the agreements on Vehicular Traffic and Railways. Nepalese Prime Minister Sushil Koirala, expressed the hope that these would be signed later after the Transport Ministers of these countries reviewed them.

3. The India-Pakistan stand-off on the first day threatened to jeopardize the entire summit process as Pakistan seemed to in mood of blocking every India led proposals. But the next day things changed when the two Prime Ministers met privately at the retreat session which led to Pakistan agreeing one out of three proposed agreements and they also made a shook hands publicly during the closing ceremony.

4. At the end of the Summit, the leaders adopted the Kathmandu Declaration (copy attached) expressing their strong determination to deepen regional integration for peace, stability and prosperity in South Asia by intensifying cooperation, inter alia, in trade, investment, finance, energy, security, infrastructure, connectivity and culture; and implementing projects, programmes and activities in a prioritized, result-oriented and time-bound manner.

5. Earlier in his maiden address to the SAARC leaders PM Narendra Modi shared his dream for India and wished the same for the entire region. He stressed that in the life of an individual or a nation, a good neighbourhood is a universal aspiration. He lamented the fact that even though SAARC has had many successes, yet, when we speak of SAARC, we usually hear two reactions – cynicism and skepticism. “Today, less than 5% of the region’s global trade takes place between us. Even at this modest level, less than 10% of the region’s internal trade takes place under SAARC Free Trade Area” Modi added. In his view SAARC has failed to move with the speed that people expect and want it to. This is mainly because we are stuck behind the walls of our differences and hesitant to move out of the shadows of the past. India, he said, has its share of responsibility because of its size and location and offered to play its role in building infrastructure for which he announced the setting up of a Special Purpose Facility in India to finance infrastructure projects in the region.

5. Referring to trade within SAARC countries he called for need to correct the existing trade imbalance which was neither right nor sustainable. He offered to provide level playing field in India to promote regional trade. He further called upon the leaders encourage Indian investments in their countries to produce exportable goods for the Indian market that would also create jobs for your youth. He dwelt at length on building seamless connectivity in the SAARC region and the need to explore and exploit energy related development projects as the basic requirement for growth and development.

6. PM Modi also emphasised the need to encourage tourism within the region; offered to meet shortfall in funds to establish the SAARC Regional Supra Reference Laboratory for TB and HIV; assistance in use of information technology to improve the quality education ; connecting the South Asian students through online course and E-libraries and access to India’s National Knowledge Network. He also announced India’s gift of a satellite by the SAARC Day in 2016 that would “benefit us all in areas like education, telemedicine, disaster response, resource management, weather forecasting and communication”.

7. While making these offers, PM Modi urged the participants to be sensitive to each other’s security concerns as this would deepen friendships, spur cooperation and advance stability in our region.

8. For India, he added, his vision for the region rests on five pillars – trade, investment, assistance, cooperation in every area, contacts between our people – and, all through seamless connectivity. These must be achieved “through SAARC or outside it; among us all or some of us”. “We can all choose our paths to our destinations. But, when we join our hands and walk in step, the path becomes easier” was his parting advice to the regional leaders.

Nepal- India Relations:-

9. During his visit to Kathmandu in connection with the SAARC Summit, PM Modi also under took some bilateral activities. While details of these have been separately reported in an article on the VIF website, the salient points are as under:-

(i) A modern Trauma Centre constructed with financial and technical support from the Indian government, was jointly inaugurated by the PM Modi and Nepali PM Koirala. Speaking on the occasion, the PM Koirala described India- Nepal relations as exemplary and expressed belief that such support would further deepen relations between the two countries. PM Modi said that the project was driven by a ‘sacred objective’ objective of contributing to protecting the lives of the Nepali people.

(ii) A multi – purpose helicopter was handed over to the Nepal Army at a function in Tundikhel, Kathmandu, on November 26. The helicopter is part of the assistance exchange between the two nations. The 14- seater Advanced Light Helicopter has the capacity of maximum cargo sling of 1500 kg and can fly even over 20, 000 feet.

(iii) A Project Development Agreement (PDA) was signed on November 26, between the Investment Board of Nepal and the Sutlej Electricity Corporation (SEC), the promoter of Arun III Hydropower Project, providing for 24 units of free electricity to the locals and Nepal receiving 21.9 per cent free electricity generated from the project. SEC would also study the upstream and downstream impact within six months of PDA signing and complete the construction of the project by 2020.

(iv) Government of Nepal had decided to spend the amount on Budhi- Gandaki Hydropower Project deemed as the national pride project, and on Mahakali Irrigation Project. Cabinet meeting held on November 25, decided to sign the above mentioned agreement promised by the Indian PM during his visit to Nepal last August.

(v) An agreement to construct Nepal Police Academy in Kabhre district with financial aid provided by Indian government was signed. As per agreement, the Government of India will provide over eight billion rupees grant for the construction of the academy.

(vi) Signing of agreement for development of tourism between the two countries by Secretary, Ministry of Culture, Tourism and Civil Aviation, Nepal and Indian Ambassador Ranjit Rae.

(vii) Agreement to establish ‘Sister Corridor’ between Janakpur- Ayodhya, Kathmandu- Varanasi, Lumbini- Both Gaya; to adopt traditional medical treatment system and youth exchange programme between the two countries.

(viii) Kathmandu–Delhi bus service was also launched simultaneously from both ends.

BHUTAN

National Assembly Refuses to Amend Election Act, 2008:

10. Bhutan’s National Assembly, on November 27, decided against amending the Election Act, 2008. The demand of the opposition to amend the Act was turned down by a majority vote. The Election Act is only six years old, arousing the feeling that it is too young to be amended.

Border Gate at Samtse Closed Due to Clash Between Indians and Bhutanese:

11. The border gate of Samtse had to be closed on November 25, after the residents of Chamurchi in India’s north Bengal, attacked Bhutanese vehicles and people plying along the Indian road. The trouble started after an Indian girl, who was working as maid in the house of a lecturer of Samtse College of education died. However, the situation normalized after sometime due to intervention of police from both sides.

Six More Peacekeepers Assigned to UN:

12. Bhutan is expanding its role in UN peacekeeping by sending six more security personnel, including a woman, to the West African state of Liberia. These six officers of the Royal Bhutan Police (RBP) will be joining the UN Mission in Liberia to serve as UN Police on a one- year assignment.

Thai delegation in Bhutan for joint celebration:

13. A 105- member of delegation, led by the Deputy Foreign Minister Don Paramedical, from Thailand arrived in Bhutan to celebrate the 87th birth anniversary of His Majesty King Bhumibol Adulyadej of Thailand, the 59th anniversary of His Majesty the fourth Druk Gyalpo, the 6th anniversary of his Majesty the King’s connation and the 25th anniversary of establishment of diplomatic relations between Bhutan and Thailand. To celebrate these occasions, the Royal Thai Embassy and the Royal Thai Consulate in Thimpu organized a reception on November 25, at the Taj Tashi. On this occasion Princess Chimi Yangzom Wangchuk launched commemorative postage stamps, depicting Thai- Bhutan relations.

Eighteenth SAARC Summit

Kathmandu, Nepal (26-27 November 2014)

Kathmandu Declaration

"Deeper Integration for Peace and Prosperity”

The President of the Islamic Republic of Afghanistan His Excellency Mohammad Ashraf Ghani; the Prime Minister of the People’s Republic of Bangladesh Her Excellency Sheikh Hasina; the Prime Minister of the Kingdom of Bhutan His Excellency Tshering Tobgay; the Prime Minister of the Republic of India His Excellency Narendra Modi; the President of the Republic of the Maldives His Excellency Abdulla Yameen Abdul Gayoom; the Prime Minister of Nepal Right Honourable Sushil Koirala; the Prime Minister of the Islamic Republic of Pakistan His Excellency Muhammad Nawaz Sharif; and the President of the Democratic Socialist Republic of Sri Lanka His Excellency Mahinda Rajapaksa;

Having met at the Eighteenth Summit meeting of the South Asian Association for Regional Cooperation (SAARC) held in Kathmandu, Nepal on November 26-27, 2014;

Reaffirming their commitment to the principles and objectives of SAARC for ensuring the welfare and quality of life of the peoples of South Asia;
Recognizing that after nearly thirty years of its existence, it is time to reinvigorate SAARC’s regional cooperation and revitalize SAARC as an effective vehicle to fulfill the developmental aspirations of the peoples of South Asia;

Determined to deepen regional integration for peace and prosperity by promoting mutual trust, amity, understanding, cooperation and partnership;

Declared as follows:

Regional cooperation

1. The Heads of State or Government expressed their strong determination to deepen regional integration for peace, stability and prosperity in South Asia by intensifying cooperation, inter alia, in trade, investment, finance, energy, security, infrastructure, connectivity and culture; and implementing projects, programmes and activities in a prioritized, result-oriented and time-bound manner.

South Asian Economic Union (SAEU)

2. The Leaders renewed their commitment to achieve South Asian Economic Union (SAEU) in a phased and planned manner through a Free Trade Area, a Customs Union, a Common Market, and a Common Economic and Monetary Union.

3. The Leaders acknowledged that SAARC Member States, particularly the Least Developed and Landlocked Member States, face structural constraints and challenges that result in their weak productive capacity affecting their competitiveness in external trade due to, among others, high trade and transit cost. They committed to enhance support to the Least Developed and Landlocked Member States in their development efforts, with a view to ensuring equitable benefits of free trade arrangements. In this context, they agreed to effectively implement the existing preferential facilities under SAFTA and SATIS.

SAFTA and Trade Facilitation

4. Directed SAFTA Ministerial Council and SAFTA Committee of Experts to accelerate free trade in goods and services in the region putting into operation simplified and transparent rules of origin; implementation of trade facilitation measures; harmonization of standards relating to Technical Barriers to Trade (TBT) and sanitary and phyto-sanitary measures; harmonized, streamlined and simplified customs procedures; elimination of non-tariff and para-tariff barriers; and smooth and efficient transit and transport facilities. They also called for early operationalization of SATIS by finalizing the schedule of commitments.

5. They called for timely and comprehensive reforms of the global economic and financial architecture to make it inclusive and responsive to the needs of Least Developed, Land-locked, and Small Island Developing States (SIDS).

6. They reaffirmed that SIDS would require special attention in view of their unique circumstances and particular vulnerabilities in realization of sustainable development.

SAARC Development Fund

7. They agreed to strengthen the Social Window of the SAARC Development Fund (SDF) and operationalize its Economic Window and Infrastructure Window at the earliest for effective implementation of regional and sub-regional projects. In that context, they stressed on expeditious development of projects under SDF addressing the livelihood issues of the peoples of the region. They agreed to expand the Governing Board of SDF by including a representative of the National Focal Point of the Member States.

Connectivity

8. The Heads of State or Government welcomed the significant progress towards finalization of the SAARC Motor Vehicles Agreement and SAARC Regional Railways Agreement and agreed to hold a Meeting of the Transport Ministers within three months in order to finalize the Agreements for approval. They renewed their commitment to substantially enhance regional connectivity in a seamless manner through building and upgrading roads, railways, waterways infrastructure, energy grids, communications and air links to ensure smooth cross-border flow of goods, services, capital, technology and people. The leaders emphasized the need for linking South Asia with contiguous regions, including Central Asia, and beyond by all modes of connectivity and directed relevant authorities to initiate national, regional and sub regional measures and necessary arrangements.
Energy

9. The Leaders directed the relevant SAARC bodies and mechanisms to identify regional and sub-regional projects in the area of power generation, transmission and power trade, including hydropower, natural gas, solar, wind and bio-fuel, and implement them with high priority with a view to meeting the increasing demand for power in the region. The Leaders welcomed the signing of the SAARC Framework Agreement for Energy Cooperation (Electricity).

Poverty Alleviation

10. The Leaders reiterated their strong commitment to free South Asia from poverty and directed the Ministerial and Secretary-level mechanisms on poverty alleviation to review the progress and revisit the SAARC Plan of Action and its effective implementation, also taking into account the Post-2015 Development Agenda.

11. They recognized the potential of cooperatives in achieving inclusive, broad-based and sustainable economic growth and development, and called for sharing of experiences, expertise and best practices in this sector.

Post-2015 Development Goals

12. The Leaders recognized that the Post-2015 Development Agenda, following its adoption at the UN, would present opportunities to compliment national and regional efforts on sustainable development. They directed to initiate an Inter-Governmental process to appropriately contextualize the Sustainable Development Goals (SDGs) at the regional level.

Agriculture and Food Security

13. The Heads of State or Government agreed to increase investment, promote research and development, facilitate technical cooperation and apply innovative, appropriate and reliable technologies in the agriculture sector for enhancing productivity to ensure food and nutritional security in the region. They also underscored the importance of promoting sustainable agriculture. The Leaders directed to eliminate the threshold criteria from the SAARC Food Bank Agreement so as to enable the Member States to avail food grains, during both emergency and normal time food difficulty. The Leaders urged for early ratification of the SAARC Seed Bank Agreement and directed to constitute the Seed Bank Board, pending completion of ratification by all Member States. The Leaders also directed the relevant SAARC bodies to finalize the establishment of Regional Vaccine Bank and Regional Livestock Gene Bank.

Environment

14. They directed the relevant bodies/mechanisms for effective implementation of SAARC Agreement on Rapid Response to Natural Disasters, SAARC Convention on Cooperation on Environment and Thimphu Statement on Climate Change, including taking into account the existential threats posed by climate change to some SAARC Member States. They welcomed the decision to establish the SAARC Environment and Disaster Management Centre. The Leaders underlined the urgency for the global community to arrive at a Protocol, another legal instrument, or an agreed outcome with legal force applicable to all by the end of 2015, based on the principles of Common but Differentiated Responsibility (CBDR), Respective Capabilities and Equity under the UNFCCC.

Blue Economy

15. They recognized the manifold contributions of ocean-based Blue Economy in the SAARC Region and the need for collaboration and partnership in this area.

Health

16. The Leaders recognized the importance of achieving universal health coverage (UHC), improving health regulatory systems, preparedness for emerging and remerging diseases, and the challenges posed by anti-microbial resistance and non-communicable diseases. They endorsed the Male’ Resolution on Regional Health Issues adopted at the Fourth Meeting of the SAARC Health Ministers. They urged to continue the remarkable progress by SAARC countries in the last decade in response to AIDS with the aim to end AIDS epidemic in the region by 2030. They also directed to complete all necessary processes for upgrading the SAARC TB Reference Laboratory at SAARC TB and HIV/AIDS Centre (STAC), Kathmandu to Supra-national Reference Laboratory with necessary funding from SDF.

Education

17. The Heads of State or Government expressed their resolve to eliminating illiteracy from the region in line with the global goal of education for all and ensuring quality education in all institutions by reforming curricula, teaching methods and evaluation systems adequately supported by physical, technical and other facilities. The leaders agreed to promote regional cooperation in the field of vocational education and training. They directed their Education Ministers to develop a Regional Strategy for Enhancing the Quality of Education in order to raise the standards of South Asian educational institutions in order to better serve the youth in the region. The Leaders welcomed the progress with regard to the South Asian University.

Youth

18. They emphasized the need for adopting appropriate national policies and programmes for utilizing the youth force and their skills for economic and social development, especially through the creation of productive self-employment opportunities. The Leaders welcomed the declaration of July 15 as the World Youth Skills Day at the 69th Session of the UN General Assembly and agreed to commemorate, as appropriate, the said event by SAARC.

Women and Children

19. They directed the relevant authorities to take effective measures for preventing the trafficking in women and children and their exploitation.
Social Protection

20. The Leaders acknowledged the special needs of the elderly, women, children, differently-abled persons, unemployed persons, and persons working at hazardous sites and agreed to develop and strengthen social protection for them and to share best practices in this regard.

Migration

21. They also agreed to collaborate and cooperate on safe, orderly and responsible management of labour migration from South Asia to ensure safety, security and wellbeing of their migrant workers in the destination countries outside the region.

Science and Technology

22. The Leaders agreed to develop capacity of the Member States to apply space technology for socio-economic development and the welfare of the peoples through experience sharing among themselves. In this context, they welcomed the offer of India to develop and launch a satellite dedicated to SAARC Countries.

Telecommunication

23. The Leaders directed for collaboration and engagement among public authorities and private stakeholders in the Member States to lower telephone tariff rates for facilitating greater contacts among the people of the region and called for rationalization of the tariff structures.

Tourism

24. The Leaders expressed their resolve for making South Asia an attractive common tourist destination in a sustainable manner. They directed relevant bodies to effectively implement SAARC Action Plan on Tourism (2006) particularly through initiating appropriate public-private collaboration. They also called for effective and full implementation of their existing decision to charge nationals of SAARC Member States fees for entry into archaeological and heritage sites as applicable to their own nationals.

Culture

25. They directed to effectively implement the SAARC Agenda for Culture and agreed to take measures to preserve and restitute the South Asian cultural property and create a SAARC heritage list together with the operational guidelines. They declared the year 2016 as the SAARC Year of Cultural Heritage and tasked the relevant bodies to develop an action plan for its success. They also agreed to develop a cultural trail linking major Buddhist historical sites in the region. The Leaders further agreed to facilitate access of persons visiting prominent and holy sites of Islam, Hinduism, Christianity and all other major religions in South Asia.

Media

26. The Leaders, recognizing the reach and influence of media, urged both public and private media to share responsibility in the efforts towards promoting understanding and cohesiveness of the SAARC Member States and their peoples.

Combating Terrorism and trans-national Crimes

27. The Leaders unequivocally condemned terrorism and violent extremism in all its forms and manifestations and underlined the need for effective cooperation among the Member States to combat them. They directed respective authorities to ensure full and effective implementation of the SAARC Regional Convention on Suppression of Terrorism and its Additional Protocol, including through enacting necessary legislations at the national level to root out terrorism. They reiterated their call for an early conclusion of a UN Comprehensive Convention on International Terrorism. They agreed to take effective measures to combat illicit trafficking of narcotics and psychotropic substances, arms smuggling, money laundering, counterfeit currency and other transnational crimes. They also agreed to establish a cyber crime monitoring desk.
Governance

28. They reiterated their strong commitment to ensure good governance for sustainable development by promoting accountability, transparency, the rule of law and people's participation at all levels of governance.

29. The Leaders, while expressing satisfaction over steady progress in democratization in South Asia, committed to further promote and institutionalize peace, stability, democracy and development as the common aspirations of the peoples of South Asia. In this context, they agreed on the need for cooperation and collaboration within SAARC on issues of common interest and concern to Member States.

Strengthening SAARC processes

30. The Heads of State or Government acknowledged the need to enhance the visibility and stature of SAARC in international fora by, inter alia, forging common positions on issues of mutual interest and seeking group recognition in various multilateral institutions.

31. The Leaders directed all SAARC bodies, including the Council of Ministers, sectoral Ministerial, other bodies and institutions to develop outcome-oriented policies, programmes, projects, and activities. The Leaders directed rationalization of the work of the SAARC mechanisms, which could be reviewed inter-governmentally every three years by a regular session of the Standing Committee with a view to evaluate performance, achievements and constraints.

32. The Leaders agreed to enhance the role of the Secretariat, commensurate with the objectives of SAARC, its areas of cooperation as well as the decisions and agreements reached in the past. They committed to enhance the institutional capacity of the SAARC Secretariat, in keeping with emerging realities, to enable it to fulfill the responsibilities entrusted to it, in an effective and efficient manner.

33. The Leaders expressed satisfaction on the decision to rationalize the number and activities of SAARC Regional Centers through their selective closure and merger. They reiterated their resolve to make the remaining SAARC Regional Centres and specialized institutions efficient, effective and result-oriented and directed these institutions to initiate programmes and projects that produce tangible outcomes.

34. They agreed to hold henceforth the meetings of the SAARC Summit every two years or earlier, if necessary, the Council of Ministers once a year, the Standing Committee at least once a year, and the Programming Committee at least twice a year. They also agreed to make the Programming Committee a Charter body of SAARC.

SAARC Observers

35. They welcomed the participation of Observers from Australia, the People's Republic of China, the Islamic Republic of Iran, Japan, the Republic of Korea, Mauritius, the Union of Myanmar, the United States of America, and the European Union at the Summit. In furtherance of earlier decisions on establishing dialogue partnership with States outside the region, the Leaders appreciated the Study undertaken by the SAARC Secretariat to review and analyze the engagement with the existing Observers to establish dialogue partnership. The Leaders directed the Programming Committee to engage the SAARC Observers into productive, demand-driven and objective project based cooperation in priority areas as identified by the Member States.

Nineteenth Summit

36. The Leaders welcomed the offer of the Government of Islamic Republic of Pakistan to host the Nineteenth Summit of SAARC

Text of Prime Minister Narendra Modi’s Address

Prime Minister Sushil Koiralaji, my colleagues from South Asia, I am delighted to return to Kathmandu.

Koiralaji, congratulations on organising an excellent Summit; Thank you, Nepal, for your warm hospitality once again.

Greetings to the Observer countries present here.

This is my first SAARC. But, this is the second time I am meeting most of you together. I stepped into the office with the greetings of the entire world. But, what moved me, dear colleagues, was your personal presence, with the good wishes of one-fourth of humanity. Because the future I dream for India is the future I wish for our entire region.

The last Summit was three years ago. Only two of us here were present in Addu. Even Prime Minister Sheikh Hasina has come here after her re-election. President Rajapaksa will soon go into one and I wish him good luck. I especially welcome our newest colleague, President Ghani.
Ours is a region of thriving democracy; of rich inheritance; the unmatched strength of youth; and, a strong thirst for change and progress. In the last few months, I have travelled around the world. From the middle of the Pacific, to the southern coast of Atlantic Ocean, I see a rising tide of integration and, negotiations on major trade agreements such as Regional Comprehensive Economic Partnership, the Trans Pacific Partnership and the Trans Atlantic Trade and Investment Partnership. Because the barriers of boundaries inhibit progress; international partnerships add speed to it. Because, in the life of an individual or a nation, a good neighbourhood is a universal aspiration.

Where does South Asia wish to stand in this world? Nowhere in the world are collective efforts more urgent than in South Asia; and, nowhere else is it so modest. Big and small, we face the same challenges – a long climb to the summit of development.

But, I have great belief in our boundless potential. And, confidence – that comes from the many inspiring stories of innovation and initiative in each of our countries. There is much to learn from each other; even more – to do together. That was the vision and aspiration that brought us together as SAARC 30 years ago. We have travelled a long distance together since then.

We have an agreement, an institution or a framework of cooperation in every field. We also have many successes. Yet, when we speak of SAARC, we usually hear two reactions – cynicism and skepticism. This, sadly, is in a region throbbing with the optimism of our youth. Today, less than 5% of the region’s global trade takes place between us. Even at this modest level, less than 10% of the region’s internal trade takes place under SAARC Free Trade Area. Indian companies are investing billions abroad, but less than 1% flow into our region. It is still harder to travel within our region than to Bangkok or Singapore; and, more expensive to speak to each other. How much have we done in SAARC to turn our natural wealth into shared prosperity; or, our borders into bridgeheads to a shared future?

Yet, South Asia is slowly coming together. India and Bangladesh have deepened their links through rail, road, power and transit. India and Nepal have started a new era of cooperation in energy; and, India and Bhutan are making those ties stronger by the day. With Sri Lanka, we have transformed trade through a Free Trade Agreement. We will soon launch a new arrangement to meet Maldives’ need for oil. Distance and difficulties have not held back India and Afghanistan. And, bus and train sustain contacts between people in India and Pakistan.

We have given five South Asian partners duty free access to 99.7% of their goods and are prepared to do more with others. For India, it has been a privilege to provide assistance of nearly 8 billion U.S. dollars in South Asia over a decade. It may not seem a great amount in these times, but we are grateful for the opportunity to have made a difference to the lives of a few brothers and sisters in our region.

Each of us has taken our initiatives. However, as SAARC we have failed to move with the speed that our people expect and want. Some argue that it is because of the region’s development gap. But, that should actually spur us to do more. Or, is it because we are stuck behind the walls of our differences and hesitant to move out of the shadows of the past? This won’t resolve our differences, but will certainly deprive us of opportunities. Today, goods travel from one Punjab to the other Punjab through Delhi, Mumbai, Dubai and Karachi – making the journey eleven times longer and the cost four times more.

India, too, has its share of responsibility –because of our size and location. I know that many of your goods, too, have to do a Parikrama of India to reach their destinations. Just think of what we are doing to our consumers – and to our environment! We must shrink the distance between our producers and consumers and use the most direct routes of trade. I know India has to lead, and we will do our part hope, each of you will, too.
Infrastructure is our region’s greatest weakness and it’s most pressing need. When I thought of coming to Kathmandu by road, it made many officials in India nervous. Because of the condition of roads at the border! Infrastructure is my greatest priority in India. And, I also want to set up a Special Purpose Facility in India to finance infrastructure projects in our region that enhances our connectivity and trade.

We speak of ease of doing business in India. Let’s extend this to our region. I promise to ensure that our facilities at the border will speed up, not slow down, and trade. Let’s all make our procedures simple, our facilities better, our standards common and our paper work less burdensome. India will now give business visa for 3-5 years for SAARC. Let’s make it even easier for our businesses through a SAARC Business Traveller Card.

Excellencies,

India has a huge trade surplus with SAARC countries. I believe that this neither right nor sustainable. We will address your concerns and give you a level playing field in India. But, I encourage you to attract Indian investments to produce for the Indian market and create jobs for your youth. I also look to a future when your companies can easily raise funds in India for investments at home; and, when we have cross-border industrial corridors, so that we can take advantage of the natural synergies and connected lives in our Border States.

I also believe that if we can light up each other’s towns and villages, we can build a brighter tomorrow for our region. Or, face a future when someone looks down at us from Space, and says that this is world’s darkest corner. Let us treat electricity as a commodity like any other that we invest and trade in. India will fully support these initiatives in the region. We should also think with ambition to use solar energy and micro grids to quickly provide clean power to villages across the region.

Our relations become stronger when we connect the lives of the ordinary citizens of our countries. That is why connectivity and services by rail and road are so important. We should also connect ourselves more by air. We will not only make a difference to the lives of our people but also promote tourism in the region.

We should use the strength of shared heritage and our diversity - to encourage tourism within our region, and present South Asia to the world. We could begin with the Buddhist circuit, but we don’t have to stop there.

As we seek to build bridges to prosperity, we must not lose sight of our responsibility to the millions living without hope. We must work with our compassion of our hearts, but also with the power of science.

In the area of health, India will meet the shortfall in funds to establish the SAARC Regional Supra Reference Laboratory for TB and HIV. We offer the five-in-one vaccine for the children of South Asia. We will support monitoring and surveillance of polio-free countries, and provide vaccines where it might reappear. And, for those coming to India for medical treatment, India will provide immediate medical visa for the patient and one attendant.
Information technology has removed all barriers to quality education. India is prepared to connect our South Asian students through online course and E-libraries. When we set up India’s National Knowledge Network, we will be happy to extend it to the SAARC region.

The dream of a South Asian University has become a reality in New Delhi. But, to be truly South Asian, it must also have partnerships with at least one university in each SAARC country.

Excellencies,

India’s gift of a satellite for the SAARC region will benefit us all in areas like education, telemedicine, disaster response, resource management, weather forecasting and communication. We will also host a conference in India for all South Asian partners next year, to strengthen our collective ability to apply space technology in economic development and governance. And, we plan to launch our satellite by the SAARC Day in 2016.
As neighbours, we should also be together in good and bad times. India’s capability and expertise in disaster management will always be available to South Asia. Equally, as we reach out to our Indians caught in conflicts and disasters around the world, we will also be there for all our South Asian citizens.

Excellencies, a prosperous SAARC needs the strong foundation of a secure South Asia.

If we are sensitive to each other’s security, and the lives of our people, we will deepen friendships, spur cooperation and advance stability in our region. Today, as we remember the horror of the terror attack in Mumbai in 2008, we feel the endless pain of lost lives. Let us work together to fulfill the pledge we have taken to combat terrorism and trans-national crimes.

For India, our vision for the region rests on five pillars – trade, investment, assistance, cooperation in every area, contacts between our people – and, all through seamless connectivity. This is the call of our times. This is the age of social media, where boundaries matter little. There is a new awakening in South Asia; a new recognition of inter-linked destinies; and, a new belief in shared opportunities. The bonds will flow.

Through SAARC or outside it. Among us all or some of us.

We can all choose our paths to our destinations. But, when we join our hands and walk in step, the path becomes easier, the journey quicker and the destination closer. I say this as much to my government and people, as I say to you. We are meeting in the lap of Himalaya, which has nurtured us through the ages. Today, it is calling us to act. Let us work to change cynicism into optimism. Let us turn South Asia of flowering hope into a rich field of peace and prosperity.

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