Page 408 - SSB Interview: The Complete Guide, Second Edition

starter is the strained relations between India and Pakistan. The
effectiveness of this forum to further regional cooperation has come

under serious scrutiny because of the disputes existing between India

and Pakistan.

Pakistan holding back Economic Cooperation: Pakistan has been
more interested in bringing its bilateral dispute with India over Kashmir

into the SAARC ambit rather than trade liberalisation. Pakistan insists
that there can be no economic progress unless political issues are

resolved. This is the opposite of what the other regional organisations

have successfully adopted — expanding economic cooperation despite
political differences. Thus, Pakistan should no longer be allowed to hold

back the rest of the region.

Fears of India’s Dominance: India’s size and strength of its economy

only served to compound mistrust. Some members of SAARC fear that
the organisation could be used by India to dominate the South Asian

markets.

Differences between ASEAN and SAARC

Association of Southeast Asian Nations (ASEAN) is more homogenous

when compared to SAARC and there is no fear of any member

dominating the group; all the members follow a free market economy.

SAARC has a limited economic and political agenda whereas ASEAN
has a wider political and economic outlook.

One of the reasons for the creation of ASEAN was the threat perception

from China. The members of SAARC have mutual suspicions.

Association of Southeast Asian Nations (ASEAN)

ASEAN is a geopolitical and economic organisation of ten countries located