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Financial year of SAARC

| by Swadesh Roy

( April 22, 2014, Dhaka, Sri Lanka Guardian) In this globalization epoch, regional cooperation has to be strong for the sake of economy, communication and for building a peaceful relation with others, which is needed to create and to progress in a modern society. No country can survive alone. So, it is utmost important to take steps regarding an active regional cooperation in every region. In the present context of the world economist have already forecasted that Asia is the next economic power. Even at present Asia is a big economic center but it is mostly based on production houses. The market of Asian product is Europe and others. But it will not continue for long; day by day the purchasing power of the people of most of the Asian countries is increasing. It is also the reality; when production houses get profit, and capital flows run there continuously, and it increases the purchasing capacity so one day purchasing power must be increased in Asia and Asia will be the big market of Asian product; even every regional economic center of Asia will be the market of their own product.

In Asia, the economy of China is moving fast, and within the next 25 years China will be the number one economic power in the world. China knows that, its economy is growing fast and it also knows where its future is .At the same time they also recognize the fact that, if its neighbors economies cannot run in a minimum speed, it will be a blocked for their own economy. This is so because it will be a black hole for Chinese economy, so China has to build up a political and an economic relation with its all neighbors, which is win win for all.

In Asia after China, the economy of India is growing fast and it is a vast economy. In Indian society, there are many short comings for building a prosperous economy for its entire citizen. The social demography of Indian society is very complicated and it is a strong barrier for building up a constructive economy. But India has made a super structure and based on this super structure India is building their economy. Earlier India had a big short coming of not having a good relation with its neighbors. Not only India was responsible for this but also its neighbors had some alumni ties, besides the then bipolarized world politics also had a huge influence on it. After the end of the bipolarization world, India has more or less managed to overcome it but not all the causes. However, it is true that surrounding India a new economy belt will be formed; and some of the countries of it will get help from China. These countries will be a bridge between Indian and Chinese economy. But it is true that surrounding neighbors of India will be the part of the economy zone which will be under the leadership of Indian regional cooperation. This regional cooperation organization is South Asian Association of Regional Cooperation (SAARC). It is true that SAARC is not a functional organization yet. Now it is needed to make it functional for the sake of the regional economy. So, SAARC countries have to take some programs, which will be fruitful for the economy buildup of this region; and helpful for each and others. The economist and the present and existing finance ministers can think about that more.

They will get more path of it but they can think of a common financial year for SAARC. If they can make a common financial year and make some check and balance along with proper nursing, SAARC country can get more benefit. If SAARC countries make a common financial year, all the SAARC countries will get there budget on same day. Its first benefit is that, the economy year will start on a same day so all the countries of the SAARC can make their economy plan with a harmony. Besides that, they can come closer regarding their budget, they can discuss some foreign trade and others before being presented in their budget. For this reason, the finance ministers and the core committee of the budget production of all the SAARC countries can sit together before finalizing their budget. If all the countries of the SAARC produce their budget, exchanging their views and taking decision for a trade balance and others that can make a tremendous change in the regional economy and that will be healthy for the economy of all the countries. This is so because in this trade balance all the countries have to realistic on the economic situation and they have to ensure the common interest.

If all the countries can make a common financial year and produce their budget through sharing their views formally then a harmony will come in all the budget of the SAARC countries that will help to advance the economy of all the SAARC countries properly according to their wealth and they will get more help from each others. Its big impact will be seen in the money market and in foreign exchange of all the countries. Then all the currency of the SAARC countries and the US$ market will automatically come to a balance. Because, when all the countries will produce their budget with a consensus then they will have to make their monetary policy through a consensus so money market will get steady automatically that will be a great help for the regional business. When regional money markets come in a steady situation then the price of the lot of commodity get steady. It will be a great achievement for economic progress of the developing countries of the SAARC.

In this manner, SAARC countries can not only make a same financial year, but also can make their budget and monetary policy with exchanging views, and depend upon a common interest they have to go forward. We know that now all the countries review their budget and monetary policy after a quarter. Even many countries calculate their GDP after a quarter. If SAARC countries go forward for a common financial year, the finance ministers and the budget and monetary expert committee have to sit after every quarter regularly.

In the SAARC, India is a big country and all the other countries are small. Therefore, a misconception is here, that is if SAARC countries get closer small countries will be the loser. But it is not the reality in the present global context. Now a day a country may be big or small but every country has an extra footage. Bangladesh may be a small country but its geo-political position and its young work force has given it another power. In the same way Sri Lanka has a big Sea power. Even more or less a failed state like Pakistan has some potentiality, the city Karachi can be transformed like that of Singapore and the smallest country in the SAARC, Bhutan has a huge hydroelectric power. That is why, a strong financial bondage will be productive for the SAARC countries, and it will help the SAARC countries to be a power of economy in Asia and even in the world. Making same financial year is only one-step and they have to take such more steps in the same way.

Swadesh Roy, Executive Editor, the Daily Janakantha, Dhaka, Bangladesh, he can be reached at swadeshroy@gmail.com