The need for a second round of ‘look east’ policies in south Asia

"The global economy was traditionally dominated by north-north relations with some concern for north-south relations. South-south economic relations were, until recently, of minor import.

In the early 1990s, south Asian countries initiated their ‘look east’ policies to enhance closer relations with east Asia (see Haokip 2011, Ladwig III 2009). India announced its ‘look east’ policy in 1991 and subsequently other countries followed suit. This shift is best thought of as part of their economic reform programs.

Our recent paper argues that these policies have had many positive impacts (Rana and Chia 2013). International trade between south Asia and east Asia has surged, albeit from low bases, and China has become the largest trading partner of India. Foreign direct investment between countries in the two regions has also increased, and Singapore has become the second largest source of foreign direct investment to India. Tourism and travel has also been surging. A number of free trade agreements have been signed between south Asia and east Asia, India holds summit-level dialogues with ASEAN and is a member of the East Asia Summit. India has also started to negotiate the Regional Comprehensive Economic Partnership which is a free trade agreement among ASEAN and its six dialogue partners: Australia, China, India, Japan, Korea, and New Zealand..."

 

at http://www.voxeu.org/article/need-second-round-look-east-policies-south-asia