Regional Integration in Services in South Asia

Abstract

Regional integration in South Asia remains a distant priority for South Asian Association for Regional Cooperation countries. In the area of services, this region offers a great potential. This article aims to examine the opportunities that exist in services and analyses the constraints that impede regional integration in services in South Asia. It highlights the gamut of scope and benefits that can be accrued from this regional integration in services provided certain constraints such as regulatory, infrastructural, institutional and business-related constraints are addressed adequately. The article argues that the region throws up several political and economic challenges which merit immediate attention to further the cause of integration of services. It identifies intraregional mobility, trade facilitation and investment opportunities as the key drivers of regional integration. Sectors such as tourism and health care have huge potential. Intervention from governments of all member countries in specific sectors like tourism is crucial to realize the goal. The article argues for an open, broad-based, flexible regional services agreement, which takes a liberal approach to services integration. It is important that regulatory harmonization, liberal investment policies, willingness towards free movement of natural persons and political will of high order are encouraged to seek such integration in services.