With its vast workforce, strong growth and expanding purchasing power, South Asia will be the key to reviving global demand: Nirmala Sitharaman
The irony is there for all to see. At the World Economic Forum's annual summit in Davos, the biggest defence of globalisation came from Chinese President Xi Jinping.
"It is true that economic globalisation has created new problems. But this is no justification to write off economic globalisation altogether. Rather we should adapt to and guide globalisation, cushion its negative impact, and deliver its benefits to all countries," he said.
China has become the world's second-largest economy within just 38 years of opening to the world. Now the prospect of a trade war with the US is threatening growth in Asia. Not surprisingly then, South Asian countries are robustly supporting deeper trade and investment links within the region and with rest of world as a counter against global economic turmoil. India is leading the way with the focus on regional economic integration by Prime Minister Narendra Modi.
At Davos, South Asian countries are represented at the highest level. Bangladesh Prime Minister Sheikh Hasina Sri Lanka PM Ranil Wickremesinghe and Pakistan PM Nawaz Sharif are here with many ministers to meet global investors.
With its vast workforce, strong growth and expanding purchasing power, South Asia will be the key to reviving global demand, Nirmala Sitharaman, minister of state for commerce and industry, said at a session on Harnessing Regional Cooperation in South Asia at the World Economic Forum Annual Meeting. "The world cannot afford to ignore the region that will be key to reviving demand," the minister said.
Global investors are noticing that South Asia has 1.8 billion people, 7% GDP growth rate and 25% of the world's middle class. While the region was considered difficult for doing business, that is changing too. The World Competitiveness report of WEF says that the region is improving rapidly. The region is growing faster than China for the first time in 20 years. "Over the past decade, the subcontinent has focused on improving overall health and primary education levels and upgrading infrastructure, areas of particular importance for future diversification and preparedness, given the resource-driven nature of the regional economies," the report says. "In the health and primary education and the infrastructure pillars, South Asia's average score has increased since 2007."
The Forum is increasingly focusing on the region rather than looking at each country in isolation, says Viraj Mehta, head of India and South Asia at WEF. Leaders from the region are participating in sessions on social indicators and not just on trade and investment to ensure their voice on issues of sustainability, equality, health and education.
The co-chair for the annual summit is Sharmeen Obaid-Chinoy, Academy Award winning film maker from Pakistan. The Afghan Women's Orchestra Zohra will perform at the closing concert at Davos meet. For the first time this year, the Forum hosted a South Asia reception that was attended by business leaders from the regions. Regional integration is moving faster in South Asia while west continues to fret about globalisation.
The irony sustains.
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