Introduction:
We have been saying consistently for the last quite a few years that the Indo-Myanmar economic relationships, particularly the border trade relationships through Moreh in Manipur, need to be taken out of the shackles of the security perspective, and put fully and purely in the economic realm in order to reap the economic benefits for a long term transformation of the regional economy and address the issues of underdevelopment in the region squarely
[1].
Now this argument seems to be commanding respectability as well as acceptability in the corridors of the national decision making process, thanks perhaps to the presence of economists at two key positions, the Prime Minister and the Commerce Minister [2]. This is evident from the recent initiatives of the government of India to make trade related development interventions free from the earlier hesitant initiatives and the covert security dressing.
In other words, the border trade relationship through Moreh in Manipur is slowly but surely removing her constraint-ridden security dress, and changing into a much sexier one of economic transparency and free trade relationships. The purpose of this paper is to appreciate this evolving scenario in the context of global realities, particularly in the context of present economic imperatives of Myanmar.
Asian Context:
The need for enhancing the intra-Asian economic integration is fairly well-established. In fact, these were the core issues discussed in the recently held Second High-Level Conference on Asian Integration jointly organized by the Monetary Authority of Singapore and the International Monetary Fund (IMF) on May 25, 2006
[3].
It is clear from the analyses that Asian economies are now more integrated with countries outside the region than within the region. Even there is an outflow of net savings from the region to the financial institutions of North America and Western Europe
[4].
Citing figures from the Direction of Trade Statistics and International Financial Statistics of the International Monetary Fund, the paper evidences the growing importance of intra-regional trade within Asia. But what should be of relevance to us is the very low share of intra-Asia trade in India's foreign trade.
This is what should be driving them India's policy for expansion of trade relationship with South East Asia, particularly, from the angle of our perspective, the one through Moreh.
An idea of the scenario can be had from Table 1.
See: Cowen, et. al., op. cit.
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| Footnotes |
Amar Yumnam, a visiting Scholar at University of Southern California, Los Angeles, contributes regularly to e-pao.net . This article was a seminar presentation on "Indo Myanmar Socio-Economic and Trade Relationships" oragnized by 'Indo Myanmar Fraternal Alliance'. He can be contacted at [email protected] . This article was webcasted on December 10th 2006.
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