Sample Solution

ECO was a descendant organization of Regional Cooperation for Development (RCD) that was established in 1964 between Turkey, Iran and Pakistan. The main target of this organization was to extend the economic development in the region by promoting intra-regional trade ties. But unfortunately no practical economic enhancement took place in the region; neither intra-regional trade nor harmonization of economic policies was exercised between the member states in this rehabilitating process of this organization. In late seventies important political replacements took place in Iranian and Pakistani governments. The old established monarchic rule of Shah of Iran was toppled through Islamic revolution and in Pakistan martial law was imposed. Due to the changing priorities and policies of the newly established governments in 1979; in both of these countries RCD did not played its vital role and became a practically defunct organization (Ikram, 2008).
Basic document of the Treaty of Izmir was originally signed in 1977. Seven new members, Afghanistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan, joined ECO in 1992.
This organization had little economic upshot before its expansion in 1992. The Treaty of Izmir introduced a few important yardsticks, such as establishment of a trade and development bank and of an ECO reinsurance company, but they are still unaccomplished tasks. A draft on Preferential Tariffs was signed in May 1991, which was to be implemented in May 1993.
The treaty included the following objectives of the organization:
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‘ Sustainable economic development.
‘ Progressive removal of trade barriers & promotion of intra-regional trade.
‘ Gradual integration of regional economies with the world.
‘ Development of transport & communication infrastructure.
‘ Economic liberalization and privatization.
‘ Mobilization of region’s energy, industrial and agricultural resources.
‘ Regional cooperation for controlling the international transportation of drugs.