The Perennial Promise of Regional Blocs
What the byline won't tell you: A Bangladeshi official’s recent lament over the South Asian Association for Regional Cooperation (SAARC), suggesting its revival would streamline supply chains and cut logistics costs, echoes a sentiment as old as the bloc itself. Formed in 1985, SAARC promised a unified front against economic inefficiencies in South Asia, particularly in trade, where the region
annually loses an estimated $22 billion due to non-tariff barriers, despite intra-SAARC exports showing meager growth of just 0.1% over the past two decades. This renewed call for regional integration mirrors earlier, similarly hopeful declarations. In the early 1990s, the potential for economic free zones was touted. By 2006, the SAFTA agreement aimed to reduce tariffs to zero, mimicking early
stages of the European Economic Community. Each time, the rhetoric of economic benefit was strong, yet the consistent underlying friction – primarily the India-Pakistan rivalry and external influence – repeatedly stalled progress, turning what could have been a powerful economic force into a largely symbolic entity. The current emphasis on 'supply chain improvement' and 'cost reduction' is
therefore not a novel observation but a well-worn argument. It is the same playbook that has been dusted off for decades, yet the core obstacles remain unaddressed by official statements. The persistent gap between stated economic potential and actual achievement highlights how geopolitical considerations continue to supersede economic logic in the region. Understanding this pattern means