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regional cooperation

Rediscovering the Potential of the World’s Oldest Highways - Bangladesh Waterways

Diep Nguyen-Van Houtte's picture
River crossing in Bangladesh
Boat passengers in rural Bangladesh. Photo credit: Erik Nora

When my team and I saw this boat passing by us in July 2013 in rural Bangladesh, near the border with Mizoram, Northeast India, and Myanmar, I felt immediately empathic.

How many people are on that boat? Eighty? Does it have a motor? Can those people swim, especially the women? No lifejackets! I wondered how long their trip was, and then I thought: What if they needed a bathroom break? Memories of my family's escape from Vietnam by boat in 1981 flashed back—34 refugees jammed into a traditional fishing boat normally home to a family of seven, with no motor, no life jackets, and no toilets! We floated around the South China Sea and Pacific Ocean for 16 days. Most of us could not swim, certainly not the women and girls.

Why do smaller countries benefit from greater trade with their neighbors?

Sanjay Kathuria's picture
Quay cranes on docks Sri Lanka. Dominic Sansoni/World Bank

The real end winner of NAFTA (North American Free Trade Agreement) is going to be Mexico […]” said then Mexican president Vicente Fox, in 2001. He was referring to Mexico’s gains from trade integration with the USA through NAFTA.

Vicente Fox was right. Mexico has continued to make sustained gains in trade over a 20 year period after signing NAFTA in 1994 with the US, its much larger partner (figure 1).



​Opening up trade is not easy because losses can be immediate, while gains, despite being potentially much larger and more widespread, are often dispersed over time. Producers that may sustain losses from more open imports are often well organized and can hold up reforms quite effectively. Moreover, when one of the countries involved in mutual trade liberalization is disproportionately large, it enables the smaller country lobbies to raise the specter of being swamped by imports from its larger partner.

In the case of South Asia, a history of political differences further complicates deeper trade and economic cooperation within the region. Under these circumstances, opening up trade to neighbors requires strong leadership and a bold vision about the role of trade and regional integration in economic development.

Youth in Central Asia Are Ready to Collaborate for a Better Future

Liya Budyanskaya's picture

 Gulbakyt Dyussenova/ World Bank

So you think the last thing young people want to discuss is politics or business strategy? Think again.

As a young woman actively involved and passionate about the role of youth in civil society, I was interested when the World Bank brought together youth from Kazakhstan, the Kyrgyz Republic, and Tajikistan to talk about exactly that.

Global Supply Chain Barriers: The Lowest-Hanging Fruit?

Mabruk Kabir's picture

"Semiconductor Co." is a global microprocessor and chipset manufacturer, with production facilities, suppliers, and customers around the world. However, all markets are not created equal. Some customers are easier to reach than others. When it comes to exporting to India, for instance, its products are frequently held at customs for weeks, and sometimes even pilfered from warehouses monitored by customs.

According to the World Bank’s Doing Business report, it takes 32 days on average to complete trade-related procedures in South Asia, among the highest in the world. Nearly 70% of the time is spent on assembling and processing an odious number of documents.

South Asian Artists Show the Way

Elena Grant's picture

When the winners of the World Bank’s "Imagining Our Future Together" art competition first met last fall, the atmosphere was very much like the first day of school: Everyone was new, excited to meet others, and optimistic about possibilities ahead. As the exhibition of their art comes to World Bank headquarters next week and the 25 young artists prepare for their third and final meeting, their collaboration has accomplished more than we organizers ever imagined.

Indeed, their experience of working together across borders shows in microcosm what the countries of South Asia can hope to achieve through greater cooperation and integration.

“Imagining our Future Together”: Young Artists’ Perspectives on South Asia

Onno Ruhl's picture

“The World Bank is organizing an art show?” My neighbor seemed stunned. He has just got to know me, since I moved to India only in early September. To him I am the economist who moved to India from Washington. Quite possibly, he thinks I have come to India to try and tell the government what to do.

“Why?” He asked. I told him it was because we wanted to stimulate thinking about South Asia’s common future. “Why?” he insisted. I told him many other regions in the world have discovered that a common future brings better lives to citizens than separate futures. “Aha!” he said, “you want to promote free trade”. He thought he had recognized me again.

It was a most interesting conversation to me. The art show had not been my idea, but it felt very natural to me. After all, my wife is a painter and photographer, and I have therefore helped organize many art shows in the past. But this one is very different. It's a group exhibit by the winners of a competition we launched in all countries of South Asia.

Where is our road? Taking Politics out of Regional Transport Infrastructure Planning

Charles Kunaka's picture

Africa’s infrastructure deficit is no secret. Several recent studies by the World Bank and others have confirmed that across the continent, roads are inadequate, railways in poor condition and waterways limited. While the problems are most obvious at the national level, they are more acute along routes connecting countries. Lack of resources contributes to the patchy state of infrastructure connectivity between African countries.  But it is not the only hurdle. A key question is: given limited resources, how should infrastructure be planned, prioritized and financed?

Sixteen countries in Sub-Saharan Africa are landlocked. To trade goods in overseas markets, they must cooperate with their coastal neighbors, working together to plan roads, transport goods to port and keep borders open. This is harder than it sounds. While numerous regional organizations exist to coordinate infrastructure planning in Africa, in practice they are made up of representatives with interests rooted in their own countries. Decisions by these bodies are often political and driven by members’ desire to see projects in their home territories.

 

Make Trade, Not War in South Asia: Toward Regional Integration

Elizabeth Howton's picture

Can economics trump politics in South Asia, a region fragmented by decades of strife? Will greater regional cooperation and lowering barriers to trade bring harmony along with economic growth?

Those were the questions on the table Thursday as a panel from across the region discussed “Breaking Down Barriers: A New Dawn in Trade and Regional Cooperation in South Asia.”

Most panelists expressed optimism about trade’s pacifying abilities. Moderator Barkha Dutt, an Indian television journalist, opined that “What trade does, in its very ordinariness, is modulate the emotions.” Teresita Schaffer, former U.S. ambassador to Sri Lanka, agreed that “Trade can provide another conversation… and provide reasons why rivalries should not be allowed to get out of hand.”

But which comes first, the chicken or the egg? asked another panelist, Nepali journalist Kanak Dixit. Clearly, he said, it’s the chicken (commerce), because other things have been tried and have not worked. He said that “chicken” will lay two “eggs”: peace and prosperity.

Beggar thine own people?

Shanta Devarajan's picture

First the good news. The Indian government has agreed to sell the originally-agreed 400,000 tons of non-basmati rice to the Government of Bangladesh at a price of $430 per ton. On March 30th, the Government of Bangladesh’s Purchase Committee approved the Indian offer of procuring the 400,000 tons of rice at $430 per ton by ship.

Water, climate change, and the poor

Four hundred million people--if it were a country, it would be the third largest in the world--rely on the Ganges River and its tributaries for their livelihood.    Six thousand rivers provide a perennial source of irrigation and power to one of the world’s most densely populated and poorest areas.  The Himalayas, “the water tower of the Ganges,” provide 45 percent of the annual flow.  These facts represent the potential payoffs to the populations of Bangladesh, India and Nepal as well as the threat that climate change poses to poor and already &lt