IF one were to pose the question what would be the single most important transformative event that could occur in South Asia in 2011, the answer has to be peace breaking out between India and Pakistan. This is especially true in the wake of the economic downturn in the West, which has provided a window of opportunity for both countries to enhance their global profile, There is a lot that the two neighbors can learn from each other. Enhanced trade in products and services could pave the way for great synergy between the economies of the two nations, both of which would save on costs incurred through diversion of trade through third countries. The benefits of an enhanced trade relationship are already evident in Pakistani onions coming in to dampen food price inflation in India. But while this is just a one-off example of an emergency response to an ongoing crisis, just imagine what the positive results could be if trade and investment were freed up across the board. A potential area of close cooperation is the IT sector. There are certainly a number of things that India can learn from the textile sector in Pakistan. Not only would lifting trade and investment barriers directly benefit both economies, getting a fix on militancy – essential for peace to break out between India and Pakistan – would also multiply foreign investment pouring into Pakistan. But India would benefit too, as it now carries a geopolitical risk due to the terror threat. There's ample scope for cooperation in Afghanistan as well. Trying to achieve strategic depth in Afghanistan is a policy that will trap Pakistan in a quagmire of regressive forces. Neither can New Delhi prevent Pakistan from playing a role in Afghanistan. The solution is for both countries to work together to ensure development and stability in Afghanistan. There is no reason why all outstanding issues between the two countries cannot be resolved if there is political will. Khursheed Kasuri, foreign minister of Pakistan when Pervez Musharraf was president, announced at a conference organized by the Aman ki Asha initiative how a deal on Kashmir was within striking distance under Musharraf. There is no reason why it cannot be revived. New Delhi should reach out, if necessary, directly to the Pakistani military and intelligence apparatus. Alongside official initiatives, people-to-people contacts as well as cultural and academic exchanges should be encouraged. The opportunity cost of not working toward lasting peaceful relations between India and Pakistan is too great a price to pay for the people of both countries. __
