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162 QUANTIFICATION OF BENEFITS FROM ECONOMIC COOPERATION IN SOUTH ASIA<br />

• However with regard to nursing and dental, there<br />

is no information on whether other SAARC countries<br />

have recognised degrees from each other.<br />

• There are no explicit requirements for citizenship<br />

or residency to register with the relevant authorities<br />

for practicing the profession of medicine or<br />

dentistry in the relevant SAARC member.<br />

CONCLUSIONS AND RECOMMENDATIONS<br />

Overview<br />

The inclusion of services within the SAFTA framework<br />

presents several challenges and opportunities for the<br />

SAARC countries. Such an inclusion holds potential<br />

not just for ensuring greater intra-SAARC trade, but<br />

also holds the potential of raising the levels of<br />

competitiveness in the South Asian region as a whole.<br />

It has been estimated that the availability of services<br />

(especially tourism, health, education, and labour)<br />

within the SAARC region will help to attract consumers<br />

from other parts of the world, and that an advanced<br />

services infrastructure within the region will boost the<br />

regions’ share in global services trade. 60 For facilitating<br />

this, several developments to liberalise both within each<br />

country, and at the regional level, will be necessary.<br />

With respect to health services, as already discussed,<br />

there are very few regulatory constraints in the SAARC<br />

countries in respect of investments in the health sector.<br />

The regulatory framework in each country is also<br />

conducive to arrangements for recognition of foreign<br />

medical and dental qualifications. There are no<br />

regulatory constraints on movement of patients from<br />

one country to another for treatment. However, there<br />

are several other issues pertaining to supply of services<br />

under each mode, which need to be addressed as part<br />

of the negotiations. These are summarised below.<br />

Recommendation 1: Investment Related<br />

Aspects Affecting Health Services, i.e.<br />

Mode 3 Service Delivery<br />

• Address upgrading commitments to autonomous<br />

levels: One of the aspects that comes out from the<br />

discussions in this chapter is that while none of the<br />

SAARC countries have committed Mode 3 in<br />

‘hospital services’ as an area for complete liberalisation<br />

under the GATS framework, each of the<br />

countries has achieved significant autonomous<br />

liberalisation in this Mode, and there are practically<br />

no regulatory impediments to Mode 3 in the<br />

regulatory framework of these countries. Only<br />

Maldives and Bhutan require specific government<br />

approval for joint ventures in the hospital<br />

sector. In all the other countries, 100% FDI is<br />

allowed.<br />

As part of the SAARC negotiations, the upgrading<br />

of the GATS commitments to the autonomous<br />

levels achieved in the member countries, should,<br />

therefore, be an aspect for discussion.<br />

• Address Investment-related operational constraints<br />

at national and regional levels: Operational<br />

constraints to investment need to be dealt with at<br />

the national level as a matter of legal and<br />

institutional reform. While this process needs to<br />

be undertaken at both the national and regional<br />

levels, investment related provisions investment<br />

related provisions under SAFTA could provide<br />

certain obligatory provisions offering special<br />

protection for foreign investors.<br />

• Constitution of a working group to address FDI<br />

related barriers: The SAFTA currently does not<br />

envisage a chapter on Investment. It however mandates<br />

the SAFTA members to consider removing<br />

barriers to intra-SAARC investments. 61 Constraints<br />

to FDI as identified above could therefore be studied<br />

and attempt to be addressed under a joint working<br />

group of the SAARC members.<br />

Recommendation 2: MRAs for Recognition<br />

of Medical and Dental Degrees between<br />

SAARC Members<br />

There are a number of similarities in the regulatory<br />

frameworks for recognition of qualifications and<br />

licensing of professionals in medicine, dentistry and<br />

nursing. Reciprocal arrangements for recognition of<br />

medical degrees exist among India, Bangladesh, Sri<br />

Lanka, Nepal and Pakistan. With respect to Maldives<br />

and Bhutan, these countries seem to recognise medical<br />

degrees at least from India and Sri Lanka. Internship<br />

and other work experience requirements for<br />

qualification are also similar in all the countries. There<br />

are no constraints in terms of citizenship and residency<br />

requirements in the regulatory framework.<br />

60<br />

See, Shivraj Bhatt, “Services under SAFTA: How to make it work for South Asia?” Nepalnews.com, September 6, 2006,<br />

available at http://www.bilaterals.org/article.php3?id_article=5780<br />

61<br />

Article 8, Agreement on SAFTA.

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