This volume examines the dichotomy between the two faces of South Asiaߟone poverty stricken and lagging in development, the other highly urbanized and growing rapidlyߟand tries to find a workable solution to bridge this gap. It looks at the many policy and institutional constraints that contribute to this dichotomy, especially regional conflict that has made South Asia one of the least integrated regions of the world.

Weaker Economies in SAFTA: Issues and Concerns

Weaker economies in SAFTA: Issues and concerns
Mohammad A.Razzaque1


The trade and welfare effects of regional trade arrangements (RTAs) are ambiguous. These effects depend on a number of factors, including inherent member characteristics, intraregional trade patterns before the formation of the trading bloc, member trade with the rest of the world, member trade regimes, and the design and implementation of RTA policies. Therefore, it is not true that preferential trading arrangements will always be trade creating or welfare enhancing on the whole. Furthermore, even when positive gains are achieved, their distribution among the members is unlikely to be equal, and the possibility of some members actually experiencing net adverse consequences cannot be ruled out a priori. In North-South RTAs, involving ...

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