GUWAHATI, Aug 24 � For maximizing the gains from the Look East Policy, NE region should have a policy for creating a unified common market in the region itself. The region also needs to have exportable goods and its requirements assessed in matters of imports too.
This is the observation made by noted economist Prof Atul Sarma. The Indian Council of Social Science Research (ICSSR) has recently conferred on Prof Sarma the Mahatma Gandhi National Fellowship. Prof Sarma was a member of the Thirteenth Finance Commission and he is currently a visiting professor at the Institute for Human Development, New Delhi. He was talking to The Assam Tribune.
He said that the Look East Policy is formulated keeping in view the traditional trade links and the geographical proximity of the NE region to the South East Asian countries. The basic objective of the policy is to promote trade between NE India and South East Asian countries.
The NE region of the country has so far been viewed more from the strategic rather than a development perspective. In this context, the attempt at integrating NE India economically with the South East Asian countries provides a very good vision of development.
To materialize such a vision, a lot of preparations have to be made within the NE region as well as among the states of the NE region and the South East Asian countries in terms of infrastructure, said Prof Sarma.
If trade is really to be promoted, then what is required is a complementarity between the products that can be exported from the NE region and the products the region requires.
The region needs to have goods which it can export and it has potential in some areas like floriculture, tea, handloom and handicraft. With their huge experience, the South East Asian countries should be able to provide expertise and know-how as well as resources to boost up the infrastructure of NE region, which is grossly inadequate.
As, to promote trades in such items, the region needs a lot of infrastructure to enable its entrepreneurs produce their export items at competitive prices. And in this area, the NE states are highly deficient, maintained Prof Sarma.
Again, he said, one has to understand the import patterns of the South East Asian countries and whether the NE products would meet their requirements at competitive prices.
The concept of unified common market means free movement of goods and factors of production� that is, labour, capital, etc� without the least of restriction. To create a unified common market, it is important to integrate the NE states among themselves in terms of transport and communication. Harmonization of various policies of the region�s states in this regard is equally important, said Prof Sarma.
Harmonization of policies and creation of common infrastructure require a lot of efforts. Institutions like the North Eastern Council (NEC) can play a very important and innovative role in this respect.
The NEC is a great administrative innovation in that it has recognized the interdependence of the region�s states. However, it has failed to play its desired role even after its re-organisation as a regional planning body some time back.
If a unified common market is created, it is possible to have a common strategy in utilizing the vast natural resources of the region at the optimum level, in realizing the tourism potential of the region and even in promoting research and development for seeking solutions of the problems unique to the region, to cite a few examples.
Despite having a road connection with South East Asia through Moreh in Manipur, most part of the Indian trade is taking place with the South East Asian countries via sea route. This may be largely attributed to some inherent disadvantages, such as poor infrastructure and man-made threats like insurgency, in trading through road transport, said Prof Sarma.