Ongoing Studies

RETA 6417: Supporting Network of Research Institutes and Think Tanks in South Asia Phase II

The Asian Development Bank (ADB), on 9^th November 2007, approved the provision of assistance on a grant basis for Supporting Network of Research Institutes and Thinks Tanks in South Asia Phase II (the RETA) amounting equivalent of US$ 1,200,000.

The outcome of the RETA will be to promote regional economic cooperation in South Asia through knowledge sharing and policy making on Regional Cooperation and Integration (RCI), and to enhance the capacity of research institutes in South Asian developing member countries of ADB.

ADB has selected two think tanks organizations- South Asia Centre for Policy Studies (SACEPS), Nepal and South Asia Network of Economic Research Institutes (SANEI), Pakistan, to work as the implementing agencies. The role of SACEPS would be to serve as coordinating centers for specific research topics related to regional cooperation and oversee the overall implementation of the project. In addition, SACEPS will also organize workshops, in consultation with ADB, based on related topics to disseminate research outcomes and collaborate with member research institutes and SAARC governments in promoting regional economic cooperation in support of track I through track II. SACEPS signed a letter of agreement with ADB on 9^th October 2008.

For the initial phase, ADB has approved funding for the following projects:

A Study on Vertical and Horizontal Industrial Integration in South Asia (IPS, Sri Lanka) and

Regional Consultative Process on Labour Migration from South Asia (RMMRU, Bangladesh)

Brief descriptions of the two selected proposals are as follows:

The main objectives of the Study on Vertical and Horizontal Industrial Integration in South Asia are:

• Lessons to be drawn from the successes (Indian joint ventures with Sri Lanka in tyre manufacturing) and the setbacks (Tata’s stalled investments in Bangladesh).
• Provide updated data and analysis of intra-industry trade in the region.
• The potential for vertical and horizontal industrial integration in South Asia is substantial, but at the same time there are significant hurdles that need to be cleared, particularly in terms of infrastructure development, trade facilitation and improved regional connectivity. A key process in South Asian development would be the realisation of the potential trade-investment nexus in the region by overcoming the challenges that have been identified.
• Many studies have been conducted wrapping up empirical consequences and policy options of both trade in goods and services, so far not much systematic work has been done on South Asia’s continuing and expanding prospects for FDI and industrial integration. Drawing from the experiences in ASEAN, the study will shed light on aspects of vertical and horizontal integration of industries that would potentially evolve with new complementarities and comparative advantages in the South Asian countries.

The study will be led by Institute of Policy Studies (IPS) and the duration of the study will be one year.

The second proposal approved by the ADB is Regional Consultative Process on Labour Migration from South Asia, and the study will be led by Refugee and Migratory Movements Research Unit (RMMRU) in collaboration with SACEPS. Researchers from Bangladesh, Pakistan, India, Nepal and Sri Lanka will also be involved in this study. The duration of the study is of one year.

The study duly notes the efforts by national governments to protect and promote the interests of their migrant workers. It however argues that there is a strong case for regional cooperation under the ambit of the South Asia Association for Regional Cooperation (SAARC). Such cooperation is essential to promote and protect the interests and rights of the South Asian migrant work force, deployed in various countries of the Gulf and East Asia regions. It will also create opportunities for these sending countries to learn from each other’s experience and emulate good practices that exist in the region.

The study therefore proposes that a Task Force be established with representation from various South Asian countries to make recommendations to the governments of the South Asian countries and the SAARC secretariat about the advantages that can be accrued from such regional collaboration.

The expected results of the study are:

1. Five Country Reports and a synthesis report

2. Draft South Asia Declaration on Minimum Standards for Out-bound Migrant Workers for consideration of the SAARC.

3. Three national consultations in partner countries with members of the Task Force presenting key policy recommendations. The national consultations may be organised in collaboration with the partner institutions of respective countries: such as Pakistan Institute of Development Economics (PIDE) in Pakistan, Refugee and Migratory Movements Research Unit (RMMRU) in Dhaka, Center for Development Studies (CDS) in India and Nepal Institute of Development Studies (NIDS) in Nepal.

4. Recommendations of the Task Force and conclusions of respective national consultation may be presented to the concerned government ministry by members of the Task Force.

Follow Us On