ISLAMABAD, Nov 29: Globalization is about international trade, benefits and risks, but it is the damage which had been shared and not the benefits.

This was stated by Federal Finance Minister Shaukat Aziz in his keynote address at the launching ceremony of the report on “Human Development in South Asia 2001: Globalization and Human Development”.

He said, “Globalization has profound social and economic repercussions and has enhanced interdependence among member countries.”

Although the gap between rich and poor has widened, it can be reduced through concerted efforts both at national and individual level, he said.

The president, Mahbub-ul-Haq Human Development Centre (HDC), Ms Khadija Haq observed in her speech that more than half a billion people in South Asia have experienced a decline in their incomes during the recent era of globalization.

The report, issued annually by the HDC, said only a minority of educated urban population benefited from the region’s economic growth.

Ms Haq said globalization process in South Asia has focussed on integrating markets for capital, goods and services without enhancing the quality of people’s lives. The process has eroded the sovereignty of nation states, particularly their role in socio-economic decision-making.

Although capital markets have expanded profoundly in the backdrop of globalization, unfortunately, South Asia still remains among the least integrated regions in the world, she regretted.

“Despite increased inflow of foreign direct investment (FDI), the South Asian region has not been a preferred region for it.”

Criticizing the existing infrastructure in most of these countries, she said, since there were no adequate policies and funding in the socio-economic development fields to reduce the poverty gap, therefore, income inequality has risen as an adverse effect of globalization.

Trade within the region is very low as compared to trades in other regional groupings. In 1999, trade among South Asian countries was less than five per cent of the region’s total exports, compared to 22 per cent in the Asean region and 55 per cent in the Nafta, she added.

She came hard on the Bretten Woods institutions and said, IMF, WTO and World Bank were created to serve as global institutions for maintaining financial stability and for promoting development and trade. But the impact of policy conditions of these institutions falls disproportionately on the poor people and poor nations.

Ex-foreign minister, Sahibzada Yaqub Khan, who presided over the ceremony, appreciated the work done by HDC. “The report is worth reading and has raised issues regarding globalization and its repercussions on South Asian region.”

Governor, State Bank of Pakistan, Dr Ishrat Husain said, “unless we invest heavily in health and education sector, it would be naive to expect improvement in our living standards.”

“We have to make structural adjustments to benefit from globalization. Since ours is an agricultural society, therefore, it should be brought at par with the international standards.”

Agriculture is one of the most subsidized sector in the world, thus, government should fix some supportive prices for growers to give them a chance to compete in the international market.