IndoZone with 12 countries on the cards | Daily News

IndoZone with 12 countries on the cards

 

 

An IndoZone has been planned under the supervision of Prime Minister Ranil Wickremesinghe to promote trade among 12 countries.

These countries are India, Bangladesh, Pakistan, Sri Lanka, Indonesia, Iran, Iraq, Kenya, Mozambique, Myanmar, Tanzania and Thailand.

The importance of the IndoZone came up after a study showed that the area proposed will have one third of the global population of 9.6 million by 2050 and would account to one third of the world trade.

The region would also have an East-West Maritime Highway and it is estimated that the route would carry half of the world container traffic. In addition two third of the world oil trade would be routed through the zone.

It is envisaged that a long term vision for the Indian Ocean based region is the only way out to meet future challenges. The Prime Minister however has indicated the IndoZone will be launched only after a collective agreement is reached among its regional leaders.

An “IndoZone Secretariat” too is to be created which will work towards the creation of the proposed IndoZone in close coordination with the target member nations, IORA, BIMSTEC and all other stake holder groups.

The region will be an area comprising nations bordering the Indian Ocean that will be a monetary union of 12 member states which strive to work towards adopting several economic goals.

These goals also include a common currency in addition to their own currencies.

A governing central bank (ICB) for the region and a common currency in addition to their own member currencies is also being proposed.

The ICB will be governed by a president and a board of the heads of national central banks to set the monetary policy of the zone.

The principal task of the ICB is to keep inflation under control.

The region will consist of finance ministers of IndoZone states.Simultaneous efforts will be made to create the necessary market access and investments for the IndoZone in cooperation with the USA, EU, China and Japan. 


 

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