Economic Cooperation Organisation (ECO) has a unique geo-strategic location, linking the East and the West. This region with its significant economic power, vast natural resources, and dynamic work force, has a huge development potential which need exploration in the better interest of all member nations.
ECO region is the biggest Muslim region with a population of 441 million that shares 6.21 percent in world population. The ECO region comprises ten member states such as Azerbaijan, Afghanistan, Iran, Kazakhstan, Kyrgyz Republic, Pakistan, Turkey, Tajikistan, Turkmenistan and Uzbekistan. Pakistan, Iran and Turkey are the founder members of the regional bloc. To promote economic, technical and cultural cooperation among the Member States is the main objective of the organisation.
The economic cooperation between these countries is not a goal; in fact it is a means to reach the goal of economic prosperity. Today's economic cooperation may lead the economic integration and possible economic unification in future, which may revive the economic history of the region by providing a big market, sharing resources and participation in economic activities. ECO member countries are active participants in global trade and economic diplomacy and they contribute in WTO negotiations groups and other regional associations and unions.
In addition to sizeable human resources, ECO Countries possess significant natural resources. Pakistan has strong textile base and the 5th largest milk producer, Iran and Azerbaijan, Kazakhstan, and Turkmenistan have Oil & Gas reserves while Afghanistan enriched with precious and semi-precious gems and famous for hand-woven carpets. Uzbekistan has gold and mineral resources. Kyrgyzstan is naturally endowed with Uranium and precious metal. Tajikistan blessed by nature with minerals and Turkey is one of the largest exporters of transport equipment.
The ECO region is geographically vast and well-endowed with potential economic resources in different fields and sectors, such as agriculture and arable land, energy and mining, human resources, and a vast strategic trading region. The ECO region posted annual average real GDP growth rate of 5% over the last decade. The overall nominal GDP of the region has reached to US $1.9 trillion in 2014. Despite availability of huge potentials the intra-ECO trade is very low. At present, the intra-export ratio of the region is around 8.8 while the share of ECO region exports in global exports is 2.1 percent. The regional economies are continuously making efforts to promote intra-regional trade and implementing measures to improve regulatory framework in the region. For improving the trade relations, this region signed many agreements like ECOTA.
ECO Trade Agreement (ECOTA) a preferential trade agreement was signed in the 2nd Ministerial Meeting of Commerce/Foreign Trade (Islamabad, July 2003). The ECOTA entered into force in April 2008, having been ratified by Afghanistan, Iran, Pakistan, Tajikistan and Turkey so far. The agreement cover a period of eight years and more than 80 percent of traded goods more than 15 percent tariffs were reduced. ECOTA excludes trade in services. By this agreement, a Free Trade Area will be established in the ECO region by 2015. Pakistan is the co-ordinating country for ECOTA. Pakistan and Turkey have offered concessions on tradable goods, and submitted their lists. Iran, Afghanistan and Tajikistan have yet to exchange concessions lists. Turkmenistan, Azerbaijan and Uzbekistan have yet to ratify the basic agreement to formally join the club. ECOTA implementation would help enhance intra-regional trade, reach the economies of scale and improve competition in the region and will also constitute a major step towards establishing a Free Trade Area in the region. Beside implementation of ECOTA, there is also a need that all countries should sign BITs for the promotion of investment among the countries. for establishing a meaningful trade, there is a dire need to create new products, new technology and new processes require the development of knowledge-based economies. To enhance the economic relations among the ECO member countries on sustainable basis, first they will have to develop the knowledge-based economies. The second step to revolutionise the trade relations is the flow of information for the availability of desirable goods, services and factors of production (including labor, investable funds, entrepreneur skills and land of opportunities). The faster, feasible and unbreakable transportation and communication linkages can transform this information. Moreover, financial and business linkage among the ECO members nations, harmonisation of Visa processing, sharing of information, regular participation in ECO events and sharing of expertise are the need of the hour for enhancing economic relations.
Here, it is also notable that the most important country from the linkages point of view in the region is Afghanistan; it provides a link between South Asia and Central Asia. Though, Afghanistan is a landlocked country, it is much important than many sea port countries, because it provides a link to six landlocked central Asian states with the Arabian Sea and Indian Ocean through Pakistan. It can provide a trade link between 6 central Asian and 7 South Asian countries. Its land rout (and construction of railways in the country) can change the fortune of entire region. The dramatic growth and development and economic prosperity in the lives of Afghan peoples can be achieved by linking central Asian states to Arabian Sea via Pakistan.
The fortune of Afghan Transit Trade, the means of energy production, Gwadar port, Free Trade with India, SAARC, ECO, and all mega projects are based on peace and interconnectivity in ECO region. The model for a sustainable development in ECO region requires economic integration among the countries in this region. A limited linkage in the form of PTA, FTA or transit trade agreement cannot revolutionise the development activities in the region. Such integration suggests frictionless cross boarder relations among the peoples, which cover development and efficient linkages in transportations, communications, and peoples. The role of academia and higher education is also important in this way. The academic institution including media can promote the implications of such integrations, while exchange of views in academia, media and public life, and students are also required. The last important factor is the requirement of the flow of investments, in the form of debt, equities and transnational corporations (MNCs).
The unity and simultaneous growth of the countries in a region has been discussed various statesmen and scholars. The formation of economic bloc is not a zero sum game. It is not the summation of various zeros. It leads the joint use of the resources to achieve synergy and initiating the formation of a bloc or economic union. Important evidence is the effect of one country's development on the other countries in the region or blocs. Economic history describes the effect of one country's economic development on others. Countries in Europe have been growing jointly. Communist countries have been facing problems simultaneously. The leading country of the bloc affects the development of the other country. Cause of development is not jointed, but effect of development is jointed. The best strategy for the ECO world is not to grow together; it will not work but mislead and derail the nations. The best strategy to develop the leading nation of the bloc, the development of leading nation will provide the development ingredients to the other countries of the bloc.