As a vision statement, the idea of working towards a larger East Asian community encompassing the Asean, China, Japan, Korea, India, Australia and New Zealand certainly commends itself. But progress remains elusive so far in completing free trade agreements (FTAs) between Asean and these six countries that could coalesce into an overarching FTA integrating Asia as a whole. Connectivity is also a big barrier to pan-Asian integration that entails welfare gains of $200-$300 billion for the entire region.
India?s software prowess and services-driven economy complements the hardware and manufacturing driven economies of East Asia, argues Dr Nagesh Kumar, DG of the think-tank RIS. But integration is problematic as Asia?s present ?economic architecture is partial and ad hoc and the institutional framework for cooperation is sub-optimal?, felt Brian Lynch, director, New Zealand Institute of International Affairs, at a conference on Asian economic integration in Delhi.
But without connectivity, pan-Asian integration is simply inconceivable. To its credit, India recognises this problem. It has proposed to the Myanmar government that it will rebuild the Settwe Port and make the Kaladan river navigable to provide an alternative access into Mizoram and the northeast. The northeast can then be integrated via Settwe with the rest of southeast Asia. Participating in China?s Kunming initiative that integrates Yunnan province, Myanmar, northeast India and Bangladesh is also worthwhile.
While northeast India is where southeast Asia really begins, there are also strong historical maritime relations between other parts of India and Asia that must also be revived. Sanjaya Baru?s Waheeduddin Khan Memorial Lecture dwelt on the fact that historically Hyderabad/ Golconda had extensive trade with Asia. And Hyderabad is now once again spreading its wings to the ?far corners of the city?s old geographical and business reach?namely, from the Straits of Malacca in the east to the Straits of Hormuz in the west.?
Clearly, better connectivity is crucial. Transport infrastructure in the northeast needs improvement. The old sea-faring links must also be re-established. As Baru states, India?s links with Asia are ?not just defined by history, geography, culture or even commerce. There is a growing people-to-people interaction and congruence of strategic interests as well?.