n Though glimmer of hope is visible with the much delayed SAFTA ratification and thaw in Indo-Pak relations-major hurdle of stagnation of SAARC development; boosted economic cooperation, in letters as well as in spirits, is a prerequisite for building confidence between and among the member-states in South Asia. India’s lukewarm approach in resolving pestering problems and moreover, harping on bilateral issues to obstruct multilateral development needs lasting correction as a big nation of the regional groping. There is no denying that single currency in the region will generate many opportunities, not to mention the liberation from travelling visa-hassle. However, challenges will equally crop up in the prevailing situation of beleaguered harmony and mutual belief in this region. So, only basking on the successful launching of Euro not paying due attention to the imminent nuisances will be premature for us. Nepal should assess the pros and cons of post-Euro accession of poor countries like Malta before giving positive nod to the proposed single currency.

Ganesh Khaniya,

Min Bhawan, Kathmandu

n The evolution of the concept of single currency in the South Asian region is a positive sign in that we’ll be able to manage our economies the better way. I think we should be united and determined with efforts to create a common currency for the SAARC countries. I don’t think that the European countries would have adapted the system of common currency if the economy of these countries were not good. The West Africans are also marching ahead to create a common currency. Euro serves as a model that SAARC can successfully follow in its member countries. SAARC can follow the Euro model for the benefit of its members’ economy and their people. The implementation of single currency will strengthen the unity and bring the countries nearer, enhancing the organisational form of SAARC. Thus, the existence of SAARC will become more meaningful.

CP Singh Chhetri,

Pradarshani Marg, Kathmandu

n The idea indeed is very good but it’s not the right time to implement. To use a common currency, firstly, countries have to agree to maintain a fiscal discipline, open their borders to each other, stabilise exchange rates and interest rates, which are not possible at the moment. Besides, a EU-style union demands minimal political and economical compatibility among its members. But it is only Sri Lanka and India that are thriving democracies in this mottled region, which shows a military dictatorship in Pakistan, an Indian-reinstated autocracy in Maldives, a palace-dictated democracy in Nepal, a monarchy in Bhutan and a flawed democracy in Bangladesh. Moreover, there are still chances that a country importing and re-exporting a product to another country where the tariff rates are higher. So, individual custom territories of the countries need to be sustained. I assume a Common South-Asian Parliament has to be formed with representatives from all the seven nations as a preliminary step. Common currency is the last step of economic union. Before that, the SAARC countries have to harmonise their economic, political and monetary policies. Leaping forward to introducing a common currency is like lighting a candle at both ends.

Zupid Saruson, Ravi Bhawan

n It’s good to have single currency in South Asia but it’s not the right time to implement. It should be our aim because we have a lot of things that we must do before. We have great differences among SAARC countries in terms of political and economic status. First, we should minimise our differences, grow our trade relation and implement open market system. It’s not the matter of only India and Nepal but of whole SAARC nations. We have very less trade relation among us and it’s very hard to achieve success having 5.5 per cent trade relation among SAARC countries. We shouldn’t forget that the situation that Euro members and we have a vast difference. And we have large number of population below poverty line. It’s good to take an initiative but as far as implementation is concerned, it will take time. If we improve socio-economic condition and political relation between us, definitely we can take advantage from single currency system in SAARC.

Binay Jnawali,

Tri-Chandra Multiple College

n We have a long way to go to materialise this philosophy. For this, we have to make our cooperation meaningful by breaking down the real and imaginary barriers, which imprison our minds and actions. We should reduce dependency on old metropolitan powers. Each nation should develop in their own cultures and personalities. We should have the courage to resist the imposition of those technologies, which are obsolete and not tailored made to our specific and urgent problems. The economic growth of the SAARC member countries or rather gross development product should not differ much among the nations, and the bond, which ties us to the systems and methods should serve the purposes of member countries. The technological and intellectual cooperation among us should flourish for the betterment, development and progress on our cultures and personalities.

Rishi Pradhan, NTC, Tripureswore

n “Single currency in South Asia!” sounds commendable. There should not be any sceptical view on this proposal. For instance, the implementation of Euro has done quite good in trade and business sector. There the business transactions, exports and imports trade have been much easier. The mobility of the citizen’s of the SAARC nations will also be easier. The process of exchanging the currency, dwelling to banks is a bit troubling and an obstacle for economic sector. Regarding Nepal it is a must. In general the national currencies are not appreciated worldwide except dollar. So, the proposal of implementing the single currency in South Asia will be greatly appreciable to the developing nations of SAARC.

Ujwal Maharjan, Bernhardt College

n Implementing single currency is a good idea yet difficult to bring in use in SAARC region. But there are lots of burning issues for South Asia rather than single currency. Indian prime minister AB Vajpayee had proposed single currency for the achievement India has made but he forgot that there are some countries like Nepal and Bangladesh, which are still underdeveloped. To implement single currency, all the members of SAARC must be able to compete with each other.

Apart from this, Indo-Pak relation is another factor that might hinder implementation of single currency. For the sake of goodness, the things said by Indian PM seems to be true idea but the economic imbalance, misunderstanding among some countries and lack of knowledge of using single currency’s benefits might lead us some heavy arguments. This can be implemented if the SAARC members are equally competitive like that of Euro members.

Sudip ‘Michael’ Regmi,

Tri-Chandra Multiple College

n Just seeing the success of European union, we can’t just jump in to implement common currency in SAARC. There are various things to be done before thinking about implementing the same currency. There must be free trade system. There must be cross border investment, movement of labour, technology transfer, etc. In today’s situation, where countries don’t have positive and affirmative attitude, it is too soon to think about same currency. The step for this is successful procedure of South Asian Free Trade Area (SAFTA). The countries of SAARC, should work to develop SAARC region as peaceful with regional harmony, co-operation and helpful attitude towards each other.

Barsha Ghimire, Naya Bazar

n The idea is farsighted, however it will be very difficult to implement. The economy of a country is measured in terms of money and finance. There should be balance between the country’s production and circulation of currency. At the same time, to print note currency must have 40 per cent of gold deposit in the National Bank. Without considering these norms, if any country prints currency and tries to circulate currency in another country for buying goods, what will be the result of that country where a lot of currency is flowing from another country? The rule of economy tells that imbalance between demand and supply brings about inflation in one’s country. It triggers economic crisis and havoc in that country. High demand and less supply will be caused by the overflow of currency and this imbalance will let the concerned country go bad to worse. These South Asian countries are under developing countries. It is a question whether they can stand in the moral principle of economics or not. If not, it will be to make a castle in the air.

Mohan Narsingh Shrestha, Kupondole

n Implementation of a single currency in South Asia is a poet’s dreams as Vajpayee himself is. Because unless and until the issues and conflicts on Indo-Pak relations are revolved, leave about single currency.

Of course, the concept of Single Currency is really optimistic and fruitful for the development of SAARC. We have also seen European countries implementing the concept Euro that was a big success and still is. It’s good to learn from other’s success. But it’s not good to build a castle in air unless we have a strong base. In next SAARC summit let’s hope the issues would be education and poverty alleviation apart from Indo-Pak tensions and hopefully the idea of single currency could be materialised.

Antosh Pradhan

n As for SAARC countries, if single currency is used here, it will certainly be one of the major efforts ever made and will be more useful and helpful in terms of trade and business.

Subodh Khatiwada, Biratnagar

n The proposal of single currency in South Asia, at the moment seems to be beneficial to all the South Asian countries, including India itself. The world is having many changes, so to fight with these changes, we, all the South Asian countries need to be united. Implementation of the single currency will be the first step for the initiation to make “the united states of South Asia”. Not only the currency, we needed to think for the language too. Making the language also same in these south Asian countries, we will be more strong. So, it’s high time, we implement the single currency. After all, “united we stand divided we fall”.

Bibhuti Sharma

n Level of economic development has vast difference among the member countries of SAARC region. Developed countries like India and Pakistan are having high GDP Level. But countries like Nepal and Bangaladesh have very low GDP. In this situation, implementing single currency may create difficulty to compete in terms of trade and business. So, it is better to set a deadline, may be after six to eight years later for the implementation of single currency. Another important point is that China should also be included as a member of SAARC and single currency system seems more effective, especially in terms of Nepali context.

Amrit Prasad Poudyal,

Boudha Mahankal

n Implementing single currency in South Asia sounds interesting and is appreciable. As we know, some time ago, the European countries have pursued single currency system as Euro. After coming this system in Europe, it is being very easy in exchange and business and most of the scholars and economist have appreciated it. If there would be single currency in South Asia, there would be ease in exchange, business and tourism. This system enables to reduce the fear of falling and rising of exchange rate in currency among the SAARC countries. It also enables tourists of South Asia to visit any country of SAARC taking single currency, which gives them relief from the difficulties of exchanging currency. This system also will make trade and business convenient in South Asia. The single currency system in South Asia may have some negative sides as well but it has more positive aspects.

Kritan Sapkota,

Asian Pharmaceuticals, Bhairahawa